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Press release content from Business Wire. The AP news staff was not involved in its creation.
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Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Affirms Credit Ratings of European Liability Insurance for the Nuclear Industry

September 23, 2021 GMT

AMSTERDAM--(BUSINESS WIRE)--Sep 23, 2021--

AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of European Liability Insurance for the Nuclear Industry (ELINI) (Belgium). The outlook of these Credit Ratings (ratings) is stable.

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

The mutual insurer’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR); taking into account ELINI’s ability to make supplementary capital calls to its members. In the unlikely event of a full limit loss, there would be a material depletion of capital due to the large gross and net line size offered by ELINI relative to its capital base. However, AM Best expects ELINI to rebuild its capital position quickly due to its contractual right to call retrospective premium for 20 times each member’s annualised premium contribution. An offsetting factor in AM Best’s assessment is the mutual’s dependence on reinsurance to offer a large gross line size.

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ELINI has a track record of good earnings generation, demonstrated by a five-year weighted average combined ratio of 29% for the period ending in 2020. Gross written premium grew by 9% in 2020 (22% in 2019), supported by strong demand. AM Best expects prospective performance to remain strong and similar to historical levels in the absence of a large nuclear liability loss.

ELINI has a developing profile as a specialist in the nuclear energy sector, offering third-party liability coverage to nuclear operators. AM Best considers the mutual’s narrow focus and the high-risk nature of the business written as offsetting factors in the assessment.

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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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210923005682/en/

CONTACT: Lucio Savastano

Associate Financial Analyst

+31 20 308 5430

lucio.savastano@ambest.comPierre Tournier, FSA, CFA, CERA

Associate Director

+31 20 308 5423

pierre.tournier@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: NETHERLANDS EUROPE

INDUSTRY KEYWORD: NUCLEAR ENERGY PROFESSIONAL SERVICES INSURANCE

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 09/23/2021 10:38 AM/DISC: 09/23/2021 10:38 AM

http://www.businesswire.com/news/home/20210923005682/en