AM Best Affirms Credit Ratings of Enel Reinsurance - Compagnia di Riassicurazione S.p.A.

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Enel Reinsurance - Compagnia di Riassicurazione S.p.A. (Enel Re) (Italy), a captive of Enel S.p.A. (Enel), a multinational electric utility company based in Italy. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Enel Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.

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 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’s operating performance assessment reflects AM Best’s expectation that the prospective combined ratio will remain within the captive’s through-the-cycle target of between 95% and 100%. In 2024, Enel Re reported a profit before tax of EUR 40.3 million, driven by excellent investment income, which more than offset negative underwriting performance, evidenced by a combined ratio of 104.6% (as calculated by AM Best).

Enel Re is the captive insurer of Enel S.p.A. group. The captive is well-integrated within the Enel group and plays a fundamental role in managing the group’s risk exposures.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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