KB Insurance stability supported by strong CSM in long-term plans

Interest income is a key driver of investment profit.

KB Insurance Co.'s (KBI) profitability in long-term insurance is expected to remain stable, supported by its contractual service margin (CSM) balance, whilst the auto and general insurance lines continue to perform steadily, according to AM Best.

Interest income is a key driver of investment profit, with volatility at manageable levels.

KBI’s capital strength is rated at the highest level on AM Best's Capital Adequacy Ratio (BCAR). 

The company saw a notable rise in capital and surplus in 2023, influenced by the market-based valuation of insurance liabilities amidst higher interest rates under IFRS 17. 

With KB Group’s backing, KBI resumed dividend payments in 2023 after a no-dividend policy since 2019 to reinforce capital ahead of new regulatory changes (K-ICS). 

KBI’s balance sheet is bolstered by low debt leverage, strong coverage ratios, and a conservative investment approach focused on asset-liability management.

Underwriting profitability has benefited from long-term insurance CSM releases, despite some offset from medical indemnity claims in 2023. 

As part of KB Group, one of South Korea’s largest financial holding companies, KBI holds the fourth-largest position in the non-life insurance market, with about a 13% market share based on gross insurance service revenue in 2023.