DB Insurance Reports KRW 906.9 Billion Net Profit in H1, Down 19.3% Year-on-Year

Insurance Profit Falls 39% Amid Rising Loss Ratios from Wildfires
Struggles Continue as Auto Insurance Rates Drop for Fourth Consecutive Year

DB Insurance announced on August 14 that its net profit for the first half of the year was KRW 906.9 billion, down 19.3% compared to the same period last year.

Revenue increased by 12.6% year-on-year to KRW 10.4911 trillion, but operating profit decreased by 14.5% to KRW 1.259 trillion.

In particular, insurance profit amounted to KRW 670.4 billion, representing a 38.9% decline compared to the same period last year.

DB Insurance explained, "The risk loss ratio for long-term insurance rose due to incidents such as the wildfire in North Gyeongsang Province. In addition, the operating profit from insurance business for the first half of the year fell by 52.1% to KRW 77.7 billion, mainly due to the impact of four consecutive years of auto insurance rate reductions."

The company added, "Due to one-off incidents such as the wildfire in North Gyeongsang Province and the fire at the Kumho Tire factory, general insurance recorded an operating loss of KRW 21.2 billion in the second quarter."

The balance of the contractual service margin (CSM) stood at KRW 13.231 trillion at the end of the second quarter, up by approximately KRW 400 billion from KRW 12.8 trillion at the end of the first quarter.

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