Thanks to the decline in long-term and auto insurance loss ratios... 'Record-breaking' DB Insurance nears 1 trillion won in net profit

Record-Breaking Sales and Operating Profit Performance

[Asia Economy Reporter Minwoo Lee] DB Insurance posted a net profit close to 1 trillion won last year. This is attributed to the decline in loss ratios for automobile insurance and long-term insurance.

On the 22nd, DB Insurance announced that last year's revenue (gross written premiums) reached 16.0415 trillion won, and operating profit was 1.3111 trillion won. These figures represent increases of 5.9% and 23.0%, respectively, compared to the previous year. During the same period, net profit rose 26.2% to 980.6 billion won. All are record highs.

This is attributed to the decline in loss ratios of major insurance products. The long-term insurance loss ratio fell 3.5 percentage points from 84.6% the previous year to 81.1%. The automobile insurance loss ratio also remained in the 70% range, recording 79.4% following 79.5% the previous year. Generally, the industry considers an appropriate loss ratio where insurers do not incur losses to be between 78% and 82%.

The general insurance loss ratio was recorded at 73.0%, up 4.6 percentage points from 68.4% the previous year.

A DB Insurance official explained, "The significant impact came from the decrease in cataract loss amounts and the continued upward trend in retention rates for the 13th and 25th policy periods," adding, "Improvements in automobile accident-related regulations, such as stricter penalties for drunk driving hit-and-run cases, were also effective."

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