...The rating on DB Insurance Co. Ltd. (DBI) reflects our view of the company's strong business presence in Korea's property/casualty (P&C) insurance market. The insurer is likely to generate stable revenues backed by its well established reputation and distribution network. That said, DBI is sensitive to investment volatility due to its large exposure to loans or securities with alternative investment features. While DBI has lower capitalization than other 'A'-rated insurers, the company's capitalization has improved due to its stronger profit generation with proactive underwriting risk controls. Outlook The stable outlook reflects our view that DBI will sustain its robust business presence in Korea's P&C 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....
