DB Insurance Co. Ltd.

This report does not constitute a rating action. Overview Key strengths Key risks Strong business franchise as the second-largest property and casualty insurer in Korea in terms of insurance revenue. Potential investment volatility due to large exposure to loans or securities with alternative investment features. Stable revenue contribution from controlled distribution channels. Weaker credit profile of life insurance subsidiary than its parent. Strong capitalization to support moderate business growth. The insurer's return on average assets (ROAA) has been consistently higher than the average of major domestic peers over the past five years. We attribute this to the insurer's good underwriting strategy and strong distribution channels that keep tight control on expenses. Nevertheless, we forecast a modest decline in consolidated ROAA

...DB Insurance Co. Ltd.(DBI) can sustain better profitability than its peers. The insurer's return on average assets (ROAA) has been consistently higher than the average of major domestic peers over the past five years. We attribute this to the insurer's good underwriting strategy and strong distribution channels that keep tight control on expenses. Nevertheless, we forecast a modest decline in consolidated ROAA to 2.2%-2.4% over the next two years, from our estimated ROAA of about 2.5% in 2025. This will be mainly driven by a gradual decline in investment yields, amid a downtrend in domestic interest rates. A modest recovery in underwriting profitability in the next two years, compared with a weaker performance in 2025, should mitigate this pressure, in our view....

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