The ratings on Dongbu Insurance Co. Ltd. (Dongbu) reflect its good overall competitive position in Korea, good capitalization, and solid operating performance. Offsetting factors are its relatively small market share in commercial lines, volatility, low profitability in auto insurance, and its credit exposure to Dongbu group affiliated companies. Dongbu is ranked third among Korean nonlife insurers in terms of gross premiums written with a 14.7% market share in the first quarter of fiscal 2008 (ended June 30, 2008). The company is relatively strong in long-term insurance, with a domestic market share of about 15.9% in the same period. Standard&Poor's assesses Dongbu's capitalization as good relative to the insurance risks it takes. The company's capitalization is stronger than all
