DB Insurance to Raise Dividends, Signaling Strong Commitment to Value-Up Plan
DPS raised to 7,600 won despite deteriorating business conditions
In line with the government's Value-Up policy
Emphasizing "shareholder-friendly management"
DB Insurance announced on the 4th that it has decided to set the dividend per share (DPS) for the fiscal year 2025 at 7,600 won, an 11.8% increase from the previous year.
Last year, the insurance industry saw a decline in profits due to a low-growth environment and a rise in loss ratios. DB Insurance was no exception. Despite this slowdown in performance, the company actually increased its dividend, which it explained as a demonstration of its confidence in its capital soundness.
This decision is also in line with the company’s stance set out in the “mid- to long-term corporate value enhancement (value-up) plan” announced early last year. At that time, DB Insurance disclosed that it would gradually increase its shareholder return ratio, based on separate financial statements, to 35% by 2028.
The securities industry expects that, given DB Insurance’s strong capital stability and the additional benefit of separate taxation on dividend income, its appeal as a high-dividend stock will become even more pronounced. As a result, foreign and institutional investors are expected to have a stronger incentive to buy the stock.
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A DB Insurance official said, “Going forward, based on stable management of the Korean Insurance Capital Standard (K-ICS) ratio, we plan to continuously enhance shareholder value by reviewing various shareholder return policies.”
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