The rating on Dongbu Insurance Co. Ltd. (Dongbu; BBB+/Stable/--) reflects its good overall competitive position in Korea, solid underwriting performance, and good investment income. Offsetting factors are intensifying competition, volatile auto insurance profitability and its exposure to Dongbu group-affiliated companies. Dongbu is ranked third among Korean non-life insurers in terms of gross premiums written with a market share of about 14.6% in the second quarter of fiscal 2010 (ended Sept. 30, 2010). The company is relatively strong in long-term insurance, with a domestic market share of over 15% in the same period. Dongbu has put up a good underwriting performance in the past few years, thanks to its operating efficiency. Dongu's combined ratio was about two percentage points lower than
