Monday, February 26, 2024

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Enel forms first Italian captive, more expected to follow

Italy has licensed its first reinsurance captive for Enel S.p.A., and Captive Intelligence understands further re-domestications are expected to follow.

Enel is an Italian multinational manufacturer and distributor of electricity and gas, which already owns Enel Insurance NV, domiciled in the Netherlands.



In 2022, Enel Insurance became the first captive signatory of the United Nations Principles for Sustainable Insurance.

Enel Erre SpA received a reinsurance licence from the Italian regulator IVASS on 21 November, with Aon and local law firm Bonelli Erede supporting the project.

Aon is the captive manager of the new reinsurer.

Gabriele Frea, head of insurance and risk financing at Enel, said Enel Insurance would eventually be merged with Enel Erre SpA to create Enel Reinsurance.

“I would like to share my satisfaction with all the colleagues who have contributed to the achievement of the result of finally having re-established in Italy our captive active since the early 2000s, and with the advisors AON SpA and Studio Bonelli Erede,” Frea said.

Captive Intelligence reported in January 2023 that several Italian-owned captives had begun discussions with IVASS on the possibility  of re-domesticating captives back home.

Historically, Italian companies have used established captive domiciles such as Luxembourg, Ireland and Switzerland.

Earlier this year Brembo Re AG, owned by the Italian manufacturer of automotive brake systems Brembo S.p.A., was established in Switzerland.

Captive Intelligence has reported extensively on the growing trend of ‘home domiciling’ in Europe.

France is the most advanced with four new reinsurance captives formed in 2023 to date, taking its total to 14.

There have also been discussions in Spain concerning the introduction of a captive regime, while the UK government announced this week it would launch a captive consultation in 2024.