DB Insurance with Improved Loss Ratio Surpasses 1 Trillion Won in Operating Profit Last Year

[Asia Economy Reporter Changhwan Lee] DB Insurance, which significantly improved its loss ratio last year, has entered the era of annual operating profit exceeding 1 trillion won.

DB Insurance announced on the 21st that its operating profit last year was 1.0656 trillion won, an increase of 55.9% compared to the previous year. This is the first time its annual operating profit has surpassed 1 trillion won.

During the same period, sales (gross written premiums) were 15.0747 trillion won, and net profit was 776.4 billion won, increasing by 7.1% and 54.6%, respectively.

The improved performance last year was due to the prolonged COVID-19 pandemic reducing social activities, which significantly improved the loss ratio, meaning the ratio of insurance claims paid to insurance premiums earned.

In particular, the loss ratio for automobile insurance fell to 79.5%, dropping below 80%. It was 84.4% in 2020. As a result, automobile insurance, which had been operating at a loss, is understood to have turned profitable.

The expense ratio, which indicates the proportion of operating expenses to premiums, also improved to 19.6% from 20.8% the previous year.

A company official explained, "The improvement trend in insurance operating profit continues," adding, "Regarding investment operating profit, it improved compared to the previous year due to an expansion in bond investments amid a contraction in overseas investments caused by the ongoing global spread of COVID-19."

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