[Special Stock] DB Insurance, "Annual Profit Improvement Raises Dividend Income Expectations"

DB Insurance's stock price is on the rise. The growing expectations for dividend yields amid forecasts of annual profit improvement appear to be influencing the stock price.

At 9:40 a.m. on the 16th, DB Insurance was trading at 111,400 KRW, up 7.01% from the previous day. During the session, it rose to 113,200 KRW, marking a 52-week high.

DB Insurance's first-quarter standalone net profit recorded 583.4 billion KRW, a 30.4% increase compared to the same period last year, surpassing market expectations.

Ji-young Kim, a researcher at Kyobo Securities, explained, "Long-term insurance profit was 448.4 billion KRW, up 28.2% year-on-year, due to increased amortization of the Contractual Service Margin (CSM) and differences between expected and actual business expenses." She added, "Automobile insurance profit was 94.2 billion KRW, a 1.9% increase during the same period, attributed to a decline in accident rates." Furthermore, she noted, "Investment gains saw an increase in yields from bonds and income securities."

Kim further stated, "Based on the solid profit realization that significantly exceeded first-quarter expectations, annual profit improvement is anticipated," and evaluated, "This is expected to positively impact the stock price as expectations for dividend yields grow."