DB Insurance Co. Ltd.

The stable outlook reflects our view that DBI will maintain its very strong competitive position in Korea's insurance market and sound capitalization over the next one to two years. We believe DBI's prudent underwriting philosophy, shift toward protection products, and investment strategy that focuses on long-term high quality bonds will support its capitalization. We may lower the rating if DBI's consolidated capital position, which includes DBL, deteriorates significantly over the next one to two years. This could result from an aggressive investment strategy for loans or alternative investment securities, or substantially weaker underwriting performance. Although it is unlikely, we may upgrade DBI if the insurer delivers strong and sustainable earnings with a prudent investment strategy that leads to significant improvement

...One of the major property & casualty (P&C) insurers in Korea. DB Insurance Co. Ltd. (DBI) will likely maintain its well-established business franchise and extensive controlled distribution network. These factors underpin the insurer's stable revenue stream. Its business portfolio is diversified across long-term, auto, and commercial lines. Capitalization can support moderate business growth. DBI's proactive pricing adjustments to reflect underwriting performance will aid its maintenance of stable profits. While the insurer has a high portion of loans or securities with alternative-investment features, we expect its adequate credit risk control to moderate investment volatility. Life insurance subsidiary has a weaker credit profile. DBI's life insurance subsidiary, DB Life Insurance Co. Ltd. (DBL), has a modest business presence and weaker capitalization than the parent, in our view. That said, DBL's proactive efforts to limit the sale of high-guarantee policies and the relatively small...

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