A.M. Best has affirmed the financial strength rating of “A (Excellent)” and the long-term issuer credit rating of “a” of the Dorinco Reinsurance Company, with the outlook remaining stable.
Dorinco is the captive reinsurance company of The Dow Chemical Company. According to A.M. Best, the rating is based on Dorinco’s ability to deliver strong combined ratios, as well as its positive net income and strong risk-adjusted capitalisation.
A.M. Best also noted that the captive maintains a conservative investment portfolio, continuing parental support, and a “prudent approach to underwriting”.
Partially offsetting the positive rating, however, is Dorinco’s “limited profile in the reinsurance market, which is a function of its hybrid captive nature,” A.M. Best said.
Factors that could potentially lead to a downgrade include significant catastrophe or investment losses, significant decline in risk-adjusted capitalisation, and unfavourable operational profitability trends.
