AMSTERDAM–(BUSINESS WIRE)–#insurance–AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Enel Insurance N.V. (EINV) (Netherlands), a captive of Enel S.p.A. (Enel), a multinational electric utility company based in Italy.
The Credit Ratings (ratings) have been placed under review with developing implications due to the uncertainty related to potential changes in the coverage the captive provides ENEL, starting in 2022. The gross and net line sizes offered by EINV are expected to significantly increase by amounts still to be determined following a EUR 250 million capital injection the company received from its parent in June 2021. The increases in gross and net line sizes provided by EINV has the potential to significantly impact the captive’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), on a standard and catastrophe-stress basis.
The ratings are expected to remain under review until EINV finalises the changes to the coverage it provides to Enel, and AM Best can fully assess the impact this has on the captive’s credit fundamentals.
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 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.
Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Giannina Carbajal Ortiz
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+31 20 308 5423
+1 908 439 2200, ext. 5644
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