LONDON--(BUSINESS WIRE)--A.M. Best has assigned a financial strength rating of A- (Excellent) and an issuer credit rating of “a-” to European Liability Insurance for the Nuclear Industry (Elini) (Belgium). The outlook assigned to both ratings is stable.
The ratings reflect Elini’s strong risk-adjusted capitalisation, taking into account the mutual insurer’s ability to make supplementary calls to members, its excellent performance record and its specialist business profile in the nuclear energy sector.
The track record of strong operating results is demonstrated by a five-year average combined ratio of 34.6%. Elini’s profile in the specialist nuclear energy sector is developing as it responds to the high demand for third-party liability cover. Strong growth in premium is anticipated over the next two years from a small base.
Partially offsetting these positive rating factors are Elini’s large gross and net line size relative to its capital base. In the unlikely event of a full limit loss, there would be a material depletion of capital. However, the mutual would be able to quickly restore capital due to its contractual right to assess a retrospective premium for twenty times each member’s annualised premium contribution. Strong underwriting guidelines and extensive loss control management, as well as high risk management standards within the nuclear energy industry, moderate risk exposure.
In accordance with Regulation (EC) No. 1060/2009, the following is a link to required disclosures: A.M. Best Europe - Rating Services Limited Supplementary Disclosure.
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