A.M. Best Affirms Rating of Dorinco Reinsurance Company and Revises Outlook to Stable.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 4, 2004 A.M. Best Co. has affirmed the financial strength rating of A- (Excellent) of Dorinco Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Company (Dorinco) (Midland, MI). The rating outlook has been revised from negative to stable. This rating action recognizes Dorinco's excellent risk adjusted capitalization, its strong strategic relationship with its parent, The Dow Chemical Company The Dow Chemical Company (NYSE: DOW TYO: 4850 ) is an American multinational corporation headquartered in Midland, Michigan. Overview The Dow Chemical Company is currently the second largest chemical manufacturer in the World (after BASF)[1]. (NYSE NYSE See: New York Stock Exchange :DOW), and the business profile of its insurance accounts. Dorinco's risk portfolio remains diversified through the short-tail nature of its unrelated assumed reinsurance business, complementing the longer-tail exposures associated with its Dow Chemical business (approximately 50% of total risks by premium volume). Furthermore, Dorinco's unique production sources and cost-efficient operating structure afford it a competitive expense advantage relative to its reinsurance peers. In 2003, policyholders' surplus improved significantly through the commutation of a large retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a reinsurance agreement which had been executed in 1999. However, following five years of declining surplus associated with significant dividend payments, underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. losses and unrealized capital losses, surplus remains below its historically superior level of five years ago. Nonetheless, this one-time realized capital gain was sufficient to restore capital commensurate with its current rating. A.M. Best accordingly has revised its rating outlook from negative to stable. For current Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , independent data and analysis on more than 470 reinsurance companies, please visit http://www.ambest.com/reinsurance/. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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