Research Update: DB Insurance Co. Ltd. Upgraded To 'A+' From 'A' Following Revised Capital Model Criteria; Outlook Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions.") The implementation of the revised capital model criteria has a positive impact on our view of DB Insurance Co. Ltd.'s (DBI) capital adequacy. Therefore, we raised our long-term financial strength and issuer credit ratings on Korea-based DBI to 'A+' from 'A'. The stable rating outlook reflects our view that DBI will maintain its very strong competitive position in Korea's insurance market and strong capitalization over the next two years. On Feb. 28, 2024, S&P Global Ratings raised its long-term financial strength and issuer credit ratings on DBI to 'A+' from 'A'. The outlook on the ratings is stable. The

...Key strengths Key risks Strong business franchise as the second-largest property and casualty insurer in Korea in terms of gross premiums written (GPW). Potential investment volatility due to large exposure to loans or securities with alternative investment features. Stable revenue contribution from controlled distribution channels. Weaker capitalization of life insurance subsidiary than its parent. Strong capitalization to support moderate business growth....

Research Update