AM Best has affirmed the Excellent ratings of Italy-domiciled Enel Reinsurance – Compagnia di Riassicurazione S.p.A. (Enel Re), the pure captive owned by multinational electric utility company Enel S.p.A.
Enel moved its previously Netherlands-domiciled captive to Italy in 2023, the first of three Italian captives.
The Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) have been affirmed, while the outlook is stable.
“Enel Re’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), was at the strongest level at year-end 2024, and is expected to be maintained at the same level over the medium term,” the ratings agency stated.
“The captive benefits from good liquidity and low reinsurance dependence. An offsetting rating factor is Enel Re’s potential exposure to large losses given its high net retention per risk, which has the potential to introduce volatility in capitalisation levels.”
Enel Re reported a pre-tax profit of €40.3m, primarily driven by “excellent” investment income which more than offset a negative underwriting performance that produced a combined ratio of 104.6%.