DB Insurance Posts Q1 Net Profit of 268.5 Billion Won, Down 39.9% Year-on-Year

DB Insurance announced on May 15 that its net profit for the first quarter was 268.5 billion won. This represents a 39.9% decrease compared to the same period last year.

DB Insurance

During the same period, revenue amounted to 5.7782 trillion won, up 16.2% year-on-year, while operating profit was 462.7 billion won, down 28.5% from the previous year.

The insurance segment recorded a profit of 226.6 billion won, down 43.7% year-on-year. Investment income was 236.1 billion won, representing a 3.2% decrease compared to the same period last year.

By product, long-term insurance profit fell 32.7% year-on-year to 265.2 billion won. This was attributed to a temporary increase in large-scale claims such as deaths and severe disabilities, as well as a continued upward trend in the loss ratio of indemnity health insurance.

Motor insurance profit dropped 80.8% year-on-year to 8.8 billion won, due to a continued decrease in earned premiums per vehicle, which led to a higher loss ratio.

In general insurance, the company posted a loss of 47.5 billion won, mainly due to large-scale domestic accidents such as the Daejeon Safety Industry incident.

At the end of the first quarter, DB Insurance’s insurance service contract margin (CSM) balance stood at 12.8 trillion won, an increase of 616.9 billion won compared to the end of the previous year.

The new solvency margin ratio (K-ICS) was 232.1% at the end of the first quarter, up 13.9 percentage points from the previous quarter.

A DB Insurance official said, “Although insurance operating profit was weak in the first quarter due to the impact of one-off large-scale accidents, we plan to continue implementing measures to improve profitability and expand earnings.”

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