AM Best confirms the credit ratings of reinsurance company Dorinco


OLDWICK, New Jersey – (COMMERCIAL THREAD) –AM Best confirmed the financial strength rating of A (excellent) and long term issuer credit rating of “a” (excellent) of Dorinco Reinsurance Company (Dorinco) (Midland, MI), which is the captive reinsurance company by The Dow Chemical Company (Dow). The outlook for these credit ratings (ratings) is stable.

The ratings reflect the strength of Dorinco’s balance sheet, which AM Best considers to be very strong, as well as its strong operational performance, limited business profile and appropriate management of business risks. Dorinco is a wholly owned subsidiary of Liana Limited, which is ultimately a wholly owned subsidiary of Dow.

Dorinco’s risk-adjusted capitalization, as measured by Best’s capital adequacy ratio (BCAR), is valued at the highest level. The strength of the balance sheet also takes into account the company’s track record of developing overall positive reserves, a prudent investment strategy, a good liquidity profile and the increased financial flexibility offered by its ultimate parent company, Dow.

Dorinco has historically generated strong operating profits, resulting in performance metrics that have consistently outperformed its composite group. In 2020, the company reported net income of $ 72.6 million (2019: $ 47.2 million) and a return on equity ratio of 11.5% (2019: 7.1%). Recent overall operating performance has been boosted by the contribution of investments, as underwriting losses have arisen in recent years.

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. The company also writes an uncorrelated third-party business book that largely consists of non-standard automobiles, which involves short-lived risks. This strategy serves to reduce the potential volatility of Dow-related businesses and has been proven to work for several years.

As a single parent captive, Dorinco is well integrated within the Dow group and plays a fundamental role in the management of the group’s risk exposures. The company’s risk management capabilities are consistent with its risk profile.

AM Best remains the leading rating agency for alternative risk transfer entities, with more than 200 such vehicles rated in the United States and around the world. For Best’s current credit scores and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to credit ratings published on the AM Best website. For all rating information relating to the publication and relevant disclosures, including details of the office responsible for the publication of each of the individual ratings referenced in this publication, please see AM Best’s Recent rating activity Web page. For more information on the use and limits of credit rating opinions, please see Best Credit Score Guide. For more information on the proper use of Best’s credit scores, Best’s preliminary credit reports, and AM Best’s press releases, please see Guide to Proper Use of Best Ratings and Reviews.

AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Based in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.

Copyright © 2021 by AM Best Rating Services, Inc. and / or its affiliates. ALL RIGHTS RESERVED.


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