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 reinsurer of The Dow Chemical Company.
The rating affirmations reflect Dorinco's continued strong operating performance, balanced risk profile and strong risk-adjusted capitalisation.
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 long tail in nature. A.M. Best believes that Dorinco is well positioned at its current rating level.
