Press Release - OCTOBER 10, 2018

A.M. Best Affirms Credit Ratings of Dorinco Reinsurance Company


CONTACTS:
 Guilherme (Guy) Monteiro Simoes
Senior Financial Analyst
+1 908 439 2200, ext. 5301
guy.simoes@ambest.com

Scott Mangan
Associate Director
+1 908 439 2200, ext. 5593
scott.mangan@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - OCTOBER 10, 2018
A.M. Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” 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) remains stable.

The ratings reflect Dorinco’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its strong operating performance, limited 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.

Dorinco was created to serve as a risk management tool to help Dow efficiently manage its risks and insurance liabilities. 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. While Dorinco is a captive of Dow, it also writes a book of uncorrelated third-party business. This book of largely non-standard auto is stable and short-tailed and serves to reduce the volatility of its Dow-related captive business. Since implementing this model a number of years ago, Dorinco continues to deliver strong overall earnings and underwriting results, while maintaining very strong risk-adjusted capitalization and a conservative investment portfolio. Partially offsetting these positive rating factors is Dorinco’s limited business profile as a single-parent captive and mono-line reinsurer.

Factors that could lead to positive rating action include a continued and profitable operating performance, an enhancement of Dorinco’s profile in the reinsurance market or an improvement in the risk-adjusted capitalization. Key drivers that could lead to negative rating action are unfavorable operating profitability trends, significant catastrophe or investment losses, a significant decline in risk-adjusted capitalization or loss of parental support.

A.M. 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 A.M. 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 A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.


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AMB# Company Name
003771 Dorinco Reinsurance Company
058356 Dow Chemical Company