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 rising competition in the non-life insurance industry and the insurer's relatively weak solicitor channel (traditional in-house face-to-face sales channel) in its long-term business. DBI is the third-largest insurance company in Korea with a market share of about 15% in fiscal 2010 (ended March 31, 2011) on a direct premium basis. In our view, the company will maintain its good market position due to various initiatives to revitalize its solicitor channel, as well as keep its strong position in new sales channels. The company's underwriting performance remained relatively strong compared to its peers despite unfavorable market
