[Click eStock] "DB Insurance, Profit Estimates Raised... Target Price Up 5.3%"

[Asia Economy Reporter Park Jihwan] Shinhan Financial Investment on the 27th raised its earnings estimates for DB Insurance, maintaining a 'Buy' investment rating and increasing the target price by 5.3% from the previous 57,000 KRW to 60,000 KRW.

Researcher Lim Heeyeon of Shinhan Financial Investment stated, "DB Insurance's Q1 net profit is expected to be 172.4 billion KRW, a 25.3% increase year-on-year, exceeding market expectations," and "the annual net profit is also expected to increase by 8.8% to 546.5 billion KRW." This reflects the possibility of realizing some stock disposal gains due to a favorable stock market and improvements in automobile loss ratios amid the prolonged COVID-19 pandemic.

He added, "The average monthly new contracts for guaranteed life insurance are estimated to have increased by 8.3% compared to the previous quarter to 11 billion KRW," and "the expense ratio is expected to slightly exceed by 0.3 percentage points to 20.3%." However, it is analyzed that long-term risk loss ratio is stabilizing at 93.9% (-1.2 percentage points) and automobile loss ratio at 80.9% (-3.7 percentage points).

Unless COVID-19 prolongs and hospital visits and accident rates do not recover, the overall non-life insurance industry is becoming increasingly optimistic about this year's annual performance.

Researcher Lim predicted, "For Q2, due to the base effect from last year's Q2 when claims sharply decreased amid heightened COVID-19 fears, it is judged that year-on-year profit growth will be difficult."

This content was produced with the assistance of AI translation services.