The rating on Dongbu Insurance Co. Ltd. (Dongbu; BBB+/Stable/--) reflects its good overall competitive position in Korea, adequate capitalization, and solid operating performance. Offsetting factors are its exposure to Dongbu group affiliated companies, intensifying competition, and volatile auto insurance profitability. Dongbu is ranked third among Korean non-life insurers in terms of gross premiums written with a market share of about 14.5% in the first quarter of fiscal 2009 (ended June 30, 2009). The company is relatively strong in long-term insurance, with a domestic market share of about 15.6% in the same period. Standard&Poor's Ratings Services assesses Dongbu's capitalization as adequate relative to the insurance risks it takes. We expect that the insurer's good profitability will enhance its capitalization.
