A.M. Best has affirmed the financial strength and issuer credit ratings of Dorinco Reinsurance Company. Its financial strength rating has been affirmed as “A (Excellent)” and its issuer credit rating has been affirmed as “a”. The outlook for both ratings is stable...
Dorinco is the captive reinsurance company for The Dow Chemical Company, an American multinational chemical corporation. Dow chemical is a provider of plastics, chemicals and agricultural products to around 160 countries worldwide.
Incorporated in 1977, Dorinco is a fire and casualty insurance company that is based in the US State of Michigan.
The rating affirmations “reflect Dorinco’s historically strong operating performance, balanced risk profile and strong risk-adjusted capitalisation".
A.M. Best said: “The ratings also consider Dorinco’s strategic importance within the Dow organisation and Dorinco’s successful mitigation of Dow’s worldwide, long-tail and volatile risks through its short-tailed uncorrelated third party reinsurance business.”
Partially offsetting these positive rating factors is "Dorinco’s limited profile in the reinsurance market, which is a function of its hybrid captive nature. Another offsetting factor is Dorinco’s exposure to Dow’s risks, many of which are worldwide and either natural catastrophe-exposed or long tail in nature,” said A.M. Best.
In spite of these factors, A.M. Best said that Dorinco is well positioned at its current rating level.