DB Insurance announced on the 24th that its subordinated bond credit rating from Korea Ratings, a domestic credit evaluation agency, was upgraded from the previous rating of AA (positive) to AA+ (stable) for the first time in 8 years since April 2017.
Despite the increased burden on capital soundness indicators of insurance companies due to recent domestic and international political and economic risks and regulatory changes, Korea Ratings made the decision to upgrade the credit rating based on DB Insurance's excellent operational strength, business stability driven by brand recognition, sustainable profit generation centered on profitability, and high K-ICS ratio and capital management capabilities.
A representative from Korea Ratings evaluated the factors underlying this credit rating upgrade, stating, "It reflects the strengthened profit-generating capability based on a stable CSM net increase, the management of the K-ICS ratio at a good level despite regulatory reinforcement, and improved asset soundness." The representative also noted, "While there is an inherent possibility of a decline in the K-ICS ratio due to regulatory reinforcement, considering the profit-generating capability, CSM securing capacity, and capital security issuance ability, management at a good level is expected."
The AA+ (stable) rating obtained by DB Insurance for its subordinated bonds is the highest rating that includes top domestic non-life and life insurance companies such as Samsung Fire & Marine Insurance and Samsung Life Insurance, and it is expected that this rating upgrade will further enhance DB Insurance's external credibility.
A representative from DB Insurance said, "We will continue to strive to enhance trust with domestic and international investors based on a robust business structure centered on profitability and further grow as a global insurance company pursuing a happy society together with our customers."