AM Best has affirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) of Dorinco Reinsurance Company, the captive reinsurance company of The Dow Chemical Company. The outlook of these credit ratings is stable. The ratings reflect Dorinco’s balance sheet strength, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management, according to AM Best. Dorinco’s risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed at the strongest level. The balance sheet strength also reflectsthe company’s track record of overall positive reserve development, conservative investment strategy, good liquidity profile, and the enhanced financial flexibility provided by its parent, Dow. The credit rating agency says the ratings acknowledge Dorinco’s operating performance, categorised byAM Best as adequate, and Dorinco’s business profile, which AM Best assess as neutral. Dorinco is a single-parent captive that is well-integrated within the Dow group and plays a fundamental role in managing the group’s risk-exposures, according to AM Best.
