A.M. Best has affirmed the financial strength rating of “A (Excellent)” and the issuer credit rating of “a” of Dorinco Reinsurance Company, which is the captive reinsurance company of The Dow Chemical Company.
The ratings reflect Dorinco’s continued strong operating performance, balanced risk profile and strong risk-adjusted capitalisation.
They also consider Dorinco’s strategic importance within the Dow organisation and its successful mitigation of risks through its reinsurance business.
Partially offsetting these positive rating factors is Dorinco’s limited profile in the reinsurance market.
A.M. Best believes that Dorinco is well positioned at its current rating level.
Key drivers that could lead to a ratings downgrade or a revision in the outlook to negative include deterioration of Dorinco’s risk-adjusted capitalisation, loss of parental support, unfavourable operating performance trends, excessive growth, or outsized catastrophe or investment losses.
Factors that could lead to rating upgrades or a positive outlook include continued favourable operating profitability trends, improved risk-adjusted capital levels and enhancement of its profile within the reinsurance market.
