DB Insurance’s capital to remain resilient amidst hostile environment

Its operating performance is supported by its underwriting performance.

South Korea-based DB Insurance (DBI) has shown a solid balance sheet strength, coupled with strong operating performance, a favourable business profile, and effective enterprise risk management. 

DBI’s risk-adjusted capitalisation is also at the strongest level, according to AM Best’s Capital Adequacy Ratio (BCAR). The company has shown low volatility in economic capital due to robust internal capital generation. 

AM Best expects DBI’s capital to remain resilient under IFRS 17 despite adverse conditions such as interest rate fluctuations, thanks to strong retained earnings and effective asset-liability management. 

DBI’s reliance on supplementary capital securities is low, bolstered by its strong capital position and favourable financial flexibility as a public entity.

The insurer’s operating performance is strong, supported by its underwriting performance that surpasses domestic peers. The company maintained a relatively low combined ratio in 2023 and a strong investment income. 

DBI's long-term insurance line has shown significant growth, contributing to future profits. The company’s auto and general insurance lines are expected to provide stable profits. Investment income, primarily from a stable fixed-income portfolio, has reinforced DBI’s financial performance.