Italian energy company captive rated
The captive of Eni S.p.A. has had its captive assigned a financial strength rating of A (excellent) and an issuer credit rating of “a”.
The outlook for both of Ireland-domiciled ENI Insurance’s ratings is stable, said AM Best.
EIL is the sole captive of Eni S.p.A., an Italian multinational gas and oil company with operations in more than 80 countries.
The ratings of EIL reflect its strong risk-adjusted capitalisation, comprehensive reinsurance programme and overall strong financial performance, said the ratings agency.
“The ratings incorporate a strong integration within the parent’s risk management structure,” said AM Best. “An offsetting factor is EIL’s current material fixed income exposure to peripheral European sovereigns.”
EIL was formed in June 2006 and writes the industrial risks of Eni S.p.A. Fire/property damage is the main line (77% of gross written premiums in 2011), with 66% of GWP is written outside of Italy, according to AM Best.
In January 2007 industrial risks written by the company’s ceased captive were transferred to EIL. This portfolio is expected to continue to run off for another few years.
The company’s main programme is fire/property damage and has a maximum retention for EIL of US$50m.