AM Best has officially bestowed its Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” (Excellent) upon Eni Insurance S.p.A. (EIS) in Italy.
This marks EIS’s role as the captive insurer for Eni S.p.A., a leading global energy corporation headquartered in Italy.
Notably, these ratings come with a stable outlook.
Financial Strength and Performance
This rating reflects EIS’s very strong balance sheet and commendable operating performance.
Its business profile is considered neutral, and the company’s enterprise risk management (ERM) practices are sound.
As part of a strategic consolidation effort, Eni Insurance Designated Activity Company (EID), Eni’s previous captive insurer, merged with EIS on February 1, 2025.
This transaction transferred all assets and liabilities from EID to EIS, positioning EIS as the centerpiece of Eni’s captive operations within Italy, closer to the company’s headquarters.
Consequently, EID was dissolved, marking a significant shift in Eni’s approach to insurance.
Future Outlook and Capital Strength
Looking forward, AM Best believes that EIS will maintain its risk-adjusted capitalization at the strongest levels, supported by ample buffers indicated by Best’s Capital Adequacy Ratio (BCAR).
However, it is essential to note that EIS relies on reinsurance to underwrite larger risks, which tempers its overall balance sheet strength.
Fortunately, the longstanding relationships EIS enjoys with highly rated reinsurers mitigate these risks effectively.
EIS is expected to build on the solid performance demonstrated by its predecessor.
Historical data suggests a five-year weighted average combined ratio of 49.4% from 2019 to 2023, showcasing EIS’s potential for sustained excellence, according to AM Best’s findings.
Risk Management Integration
While the potential for property segment losses may introduce some performance variability, EIS’s comprehensive reinsurance strategy is designed to minimize overall underwriting volatility.
As a single-parent captive, EIS integrates seamlessly into Eni’s risk management structure.
It plays a vital role in tracking and managing the group’s insurance expenditures and consolidates claims information, facilitating efficient internal reporting processes for Eni.
EIS also benefits from a well-developed ERM framework, marked by clearly established risk appetite and tolerance levels.
It’s worth noting that AM Best stands as the leading agency for assessing alternative risk transfer entities, having evaluated over 200 such vehicles worldwide.
For those interested in the latest Best’s Credit Ratings or seeking insights into the captive and alternative risk transfer insurance market, visit www.ambest.com/captive.
This announcement is related to the Credit Ratings available on AM Best’s website.
Source: News.ambest