AM Best Affirms Credit Ratings of European Liability Insurance for the Nuclear Industry

Business Wire

AMSTERDAM--(BUSINESS WIRE)-- AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of European Liability Insurance for the Nuclear Industry (ELINI) (Belgium). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect ELINI’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.

The mutual insurer’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), taking into account ELINI’s ability to make supplementary capital calls on its members. In the unlikely event of a full limit loss, there would be a material depletion of capital due to the large size of the gross and net lines offered by ELINI relative to its capital base. However, AM Best expects ELINI to rebuild its capital position quickly owing to its contractual right to call retrospective premium for 20 times each member’s annualised premium contribution. A partially offsetting factor in AM Best’s assessment is the mutual’s dependence on reinsurance to offer large gross lines.

ELINI has a track record of strong technical performance, demonstrated by a five-year weighted average combined ratio of 26.4% for the period ending in 2025. AM Best expects prospective operating performance to remain strong and in line with historical results in the absence of a large nuclear liability loss.

ELINI has a developing profile as a specialist insurer in the nuclear energy sector, offering third-party liability coverage to nuclear operators. The mutual has achieved a good level of growth from a small base over the past five years (2021-2025), reflected by a compounded average annual growth rate of 20.5%, supported by strong demand from new and existing members. AM Best considers the mutual’s narrow focus and the high-risk nature of the business written as partially offsetting factors in the assessment.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.