AM Best Affirms Credit Ratings of Dorinco Reinsurance Company
OLDWICK, N.J., September 25, 2026--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 demonstrated historically favorable reserve levels, a conservative investment strategy and favorable liquidity measures that are enhanced by its ultimate parent, Dow, which provides financial flexibility. Dorinco is expected to remain unaffected by its parent's increased leverage and reduced interest coverage. Nonetheless, Dow Inc. recently began to show meaningful improvement on its margins.
The ratings also reflect Dorinco's operating performance, which AM Best assesses as adequate. The company has a long track record of favorable operating performance. Dorinco compares favorably with the industry in terms of combined ratio, operating ratio and return on equity on a five- and 10-year basis.
Additionally, the ratings reflect 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/casualty reinsurance treaties covering Dow and related parties with other insurance companies. Approximately 68% of Dorinco's premium is derived from reinsuring uncorrelated non-standard auto third-party business. The diversification that this provides enhances Dorinco's business profile.
Dorinco's risk management capabilities are aligned with its risk 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.
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.