A.M. Best has affirmed the financial strength rating of A (excellent) and the long-term issuer credit rating of “a” of Dorinco Reinsurance Company (Dorinco) (Midland, MI), which is the captive reinsurance company of The Dow Chemical Company.
The outlook of these credit ratings (ratings) remains stable.
A.M. Best categorised Dorinco’s balance sheet strength as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
Dorinco’s risk-adjusted capitalisation, as measured by best’s capital adequacy ratio (BCAR) is categorised as strongest.
The balance sheet strength also considers the company’s track record of overall positive reserve development, conservative investment strategy, good liquidity profile and enhanced financial flexibility provided by its ultimate parent, Dow.
Dorinco has historically generated strong operating earnings, resulting in performance metrics that have consistently outperformed its composite group.
Last year, the company reported a net profit of $48.6 million and a return on equity of 8.2 percent, with results being underpinned by sound underwriting profits and investment results in line with the market.
As the company limits its exposure to catastrophe risks, both 2017 and 2018 results were not significantly impacted by natural catastrophes.
Dorinco issues direct property and liability insurance policies to Dow and certain related companies and participates in property and casualty reinsurance treaties covering Dow or related parties with other insurance companies.
