DB Insurance announced on May 14 that its net profit for the first quarter of this year was 447 billion KRW, a decrease of 23.4% compared to the same period last year.
During the same period, operating profit dropped by 15.6% to 646.6 billion KRW, and insurance profit fell by 28.5% to 402.7 billion KRW. Revenue, however, increased by 7.4% to 4.9741 trillion KRW.
By product line, profits declined across long-term insurance, auto insurance, and general insurance. Long-term insurance recorded 394 billion KRW, down 12.1% year-on-year. Auto insurance profit dropped by 51.4% as the loss ratio rose by 2.9 percentage points due to a decrease in earned premium per vehicle following rate reductions. General insurance posted an underwriting loss of 37 billion KRW, as the loss ratio increased by 10.1 percentage points year-on-year, mainly due to incidents such as the LA wildfires.
However, the investment sector performed well. Investment profit for the first quarter rose by 19.8% year-on-year to 244 billion KRW, thanks to increased interest and dividend income driven by the growth of managed assets.
The insurance contract service margin (CSM), a key indicator of future core profit, stood at 12.8 trillion KRW, an increase of approximately 600 billion KRW compared to the end of last year.
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