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 (Dorinco) (Midland, MI), which is the captive reinsurance company of The Dow Chemical Company (Dow). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Dorinco’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. Dorinco is a wholly owned subsidiary of Liana Limited, which is ultimately a wholly owned subsidiary of Dow.

The very strong balance sheet strength assessment is supported by Dorinco’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), which remains at the strongest level. Dorinco has exhibited a track record of overall positive reserve development, conservative investment strategy and a good liquidity profile, which are enhanced by its ultimate parent, Dow Inc., which provides financial flexibility.

The ratings also reflect Dorinco’s operating performance, which AM Best assess as adequate. The company’s historically favorable operating performance continued to improve through 2023, with combined ratio staying below 100 for two consecutive years. In prior years, the fluctuations in Dorinco’s metrics were mostly due to redundant reserving, which may produce lower accident year combined ratios when the claims are ultimately settled.

Additionally, the ratings acknowledge Dorinco’s business profile, which AM Best assesses as neutral.

Dorinco issues direct property and liability insurance policies to Dow and certain related companies, and it participates in property and casualty reinsurance treaties covering Dow and related parties with other insurance companies. Approximately half of Dorinco’s premium is derived from reinsuring uncorrelated non-standard auto third-party business. The diversification this provides enhances Dorinco’s business profile.

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. The company’s risk management capabilities are in line with its risk profile.

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings 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 that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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