Fierce Competition for Second Place with Meritz at 1.7105 Trillion KRW
Significant Gap Remains with Top-Ranked Samsung Fire & Marine at 2.0768 Trillion KRW
Insurance and Investment Profits Rise... Surplus Achieved Despite Higher Auto Loss Ratio
DB Insurance recorded its highest-ever performance last year. It is fiercely competing for second place in the non-life insurance industry, showing a difference of about 60 billion KRW in net profit compared to Meritz Fire & Marine Insurance. The company achieved strong results in both insurance and investment profits and posted a surplus despite rising automobile loss ratios.
DB Insurance announced on the 21st that its separate basis net profit for last year was 1.7722 trillion KRW, a 15.3% increase compared to the previous year.
Both insurance profits and investment profits increased. Insurance profits rose by 4.5% to 1.6191 trillion KRW. Investment profits increased by 59.3% year-on-year to 743.6 billion KRW. The company increased earnings focused on structural profits such as interest and dividends rather than one-time gains like disposal profits. The net investment yield was 3.25%.
By insurance product, long-term insurance profits recorded 1.3456 trillion KRW. As a result of pursuing a profitability-centered strategy, the coverage insurance contract service margin (CSM) multiple reached an industry-leading level of 17.8 times.
Despite a 3.4% increase in loss ratio for automobile insurance, the company achieved a surplus of 170.9 billion KRW. The company explained that the loss ratio rose due to increased insurance costs caused by premium reductions and repair fees.
As of the end of last year, the CSM stood at 12.2 trillion KRW. Due to factors such as changes in the no-surrender lapse rate, it increased by only 79.3 billion KRW compared to the end of the previous year.
With this, DB Insurance surpassed Meritz Fire & Marine Insurance in last year’s performance competition. Meritz Fire & Marine Insurance earned a net profit of 1.7105 trillion KRW last year. The gap is only 61.7 billion KRW.
The net profit of the industry leader Samsung Fire & Marine Insurance last year was 2.0768 trillion KRW.
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