DB Insurance announced on June 24 that the credit rating for its subordinated bonds, as evaluated this year by Korea Ratings, a leading domestic credit rating agency, has been upgraded from AA (Positive) to AA+ (Stable) for the first time in eight years since April 2017.
Korea Ratings decided to upgrade the credit rating in recognition of DB Insurance's strong business stability based on excellent sales capabilities and brand recognition, its continued profitability-focused earnings generation, outstanding solvency ratio (K-ICS), and effective capital management.
Regarding this credit rating upgrade, a representative from Korea Ratings stated, "We have reflected the strengthened profit-generating ability based on the stable net increase in insurance contract service margin (CSM), the fact that the K-ICS ratio is being managed at an excellent level despite regulatory tightening, and the improvement in asset soundness. Although there is an inherent possibility of a decline in the K-ICS ratio due to regulatory strengthening, considering the company's profit-generating ability, CSM accumulation capacity, and the potential to issue capital securities, it is expected that the ratio can continue to be managed at a high level."
The AA+ (Stable) rating for subordinated bonds that DB Insurance has received is the highest rating, shared by top-tier domestic non-life and life insurers such as Samsung Fire & Marine Insurance and Samsung Life Insurance. With this upgrade, DB Insurance's credibility is expected to be further enhanced.
A representative from DB Insurance stated, "We will continue to strengthen trust with domestic and international investors based on a solid business structure focused on profitability," adding, "We will strive to grow as a global insurance company that pursues a happy society together with our customers."
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