The ratings on Dongbu Insurance Co. Ltd. (Dongbu) reflect S&P Global Ratings' view that the insurer has a very strong business risk profile (BRP) and lower adequate financial risk profile (FRP). We derive our 'a-' anchor for the company from the combination of the BRP and FRP assessments. Korea's property and casualty (P&C) insurance market has intermediate industry and country risk. The insurer has a very strong competitive position, due to its strong market position with higher operating efficiency than its peers, a well-known brand, and strong control over distribution channels. Lower adequate capital and earnings mainly reflect its lower adequate capital position and our base-case assumption that its capital position will remain unchanged over the next two years. Its
