AMSTERDAM – (COMMERCIAL THREAD) –AM Best withdrew from the review with developing implications and confirmed the financial strength rating of A- (excellent) and the long-term issuer credit rating of âa-â (excellent) of Enel Insurance NV ( EINV) (Netherlands), a captive of Enel SpA (Enel), a multinational electric utility company based in Italy. The outlook assigned to these credit ratings (ratings) is stable.
The ratings reflect the strength of EINV’s balance sheet, which AM Best considers very strong, as well as its adequate operational performance, neutral business profile and appropriate management of corporate risks.
These ratings had been put under review with developing implications due to the uncertainty surrounding potential changes in the coverage the captive provides to its parent company. In June 2021, the parent company injected 250 million euros into the captive and as of November 2021, the captive significantly increased her net retention. As a result of these changes, the risk-adjusted capitalization of the captive, as measured by Best’s capital adequacy ratio (BCAR), on a standard and disaster basis, is expected to remain at least at a very high level. medium term. The captive’s enhanced profile also reaffirms her role within the risk management program of the Enel group.
AM Best remains the main rating agency for alternative risk transfer entities, with more than 200 such vehicles rated worldwide. For Best’s current credit scores and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.
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