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A.M. Best Affirms Ratings of Dorinco Reinsurance Company CONTACTS:
FOR IMMEDIATE RELEASE OLDWICK, N.J., June 11, 2009—A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of Dorinco Reinsurance Company (Dorinco) (Midland, MI), which is the captive reinsurance company for The Dow Chemical Company (Dow) [NYSE: DOW]. The outlook for both ratings is stable. These rating actions recognize Dorinco’s strong risk-adjusted capitalization, strategic relationship with Dow and Dorinco’s balanced risk profile. The risk profile of Dorinco remains diversified through the short-tail nature of its unrelated third party business and the longer-tail exposure associated with the Dow business. Several years ago, Dorinco put a strategy in place to reposition its risk profile with the goal of improving profitability, reducing volatility and creating sustainable results while achieving its primary objective of being a risk management tool for Dow. The strategy employed has demonstrated steady and measurable progress thus far, and management is committed to maintaining this strategy going forward. Partially offsetting these positive rating factors for Dorinco are the challenges faced by its ultimate parent. Dow recently completed a sizeable acquisition and has been progressing towards restructuring its credit profile during a challenging economic environment. If Dow’s credit profile weakens, it could put pressure on the ratings of Dorinco. A.M. Best remains the leading rating agency of captive insurers rating a wide variety of more than 200 captives in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative insurance market, please visit www.ambest.com/captive. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. ### |
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