DGB Life Insurance Reports Record 30.6 Billion KRW Net Profit in 1Q

123.4% Increase Compared to Previous Year
CSM 692.3 Billion Won

DGB Life Insurance achieved a record-high quarterly performance by surpassing 30 billion KRW in net profit in the first quarter of this year. This is attributed to the restructuring of product lines ahead of the introduction of the new accounting standard IFRS17, as well as solid sales of protection insurance in Q1.

On the 28th, DGB Life Insurance announced through the DGB Financial Group investor relations (IR) that it recorded a net profit of 30.6 billion KRW in the first quarter of this year. This represents a 123.4% increase compared to the same period last year, marking the highest quarterly performance ever.

The Contractual Service Margin (CSM), introduced under IFRS17, was recorded at 692.3 billion KRW. The ratio of CSM to net insurance liabilities stands at 13.5%. CSM is a concept that recognizes future profits generated from insurance contracts annually over time. It was also explained that the new solvency indicator, the new Solvency Capital Requirement system (K-ICS), which replaces the existing Risk-Based Capital (RBC) ratio, is expected to exceed 150%.

Previously, DGB Life Insurance made various efforts to prepare for the new accounting standard. It actively expanded capital by conducting paid-in capital increases of 277 billion KRW last year and 20 billion KRW this year, while restructuring its product portfolio to focus on variable insurance that minimizes interest rate fluctuation risks and protection insurance aimed at stable CSM expansion.

In particular, it emphasized that the new contract CSM increased by more than 4.04 billion KRW, driven by strong sales of new protection insurance products launched in the first quarter of this year. Additionally, the DGB Life variable insurance fund recorded net assets of 1.0021 trillion KRW as of the 25th, growing more than sixfold in three years and four months.

A DGB Life Insurance official explained, "The transitional confusion just before the introduction of the new system is subsiding, and DGB Life Insurance will be able to establish a foundation to maintain a more robust profit structure and growth momentum."

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