The rating on Dongbu Insurance Co. Ltd. (DBI) reflects its good market position, good underwriting performance, and adequate capitalization. These factors, however, are offset by prolonged low interest rate environment. DBI is the third-largest insurance company in Korea with a market share of about 16% in fiscal 2011 on a direct premium basis. In our view, the company recovered new business growth in long-term protection product sales through various initiatives to revitalize its offline channels (especially solicitors). DBI's strong position in new sales channels is another factor supporting the company's good market position. The company's underwriting performance remained relatively strong compared to its peers in fiscal 2011, due largely to the company's competitive expense structure. Over the past five years,
