DB Insurance reported a nearly 40% decline in net profit for the first quarter of this year, attributed to an increase in claims from actual loss insurance and a rise in high-value incidents. Although revenue increased, profitability weakened significantly due to a sharp drop in insurance profits.
On May 15, DB Insurance announced that its net profit for the first quarter was 268.5 billion won, a 39.9% decrease compared to the same period last year. During the same timeframe, revenue rose by 16.2% to 5.7782 trillion won, but operating profit fell by 28.5% to 462.7 billion won.
The primary reason for the poor performance was a decrease in insurance profits. DB Insurance's insurance profit for the first quarter was 226.6 billion won, down 43.7% from the previous year.
Long-term insurance profits also fell by 32.7% to 265.2 billion won, impacted by a temporary increase in high-value claims related to death and disability, as well as a continuing rise in the loss ratio for actual loss insurance.
Automobile insurance profits were limited to 8.8 billion won, an 80.8% decrease compared to the same period last year, primarily due to an increased loss ratio.
General insurance reported a loss of 47.5 billion won, reflecting the impact of major domestic incidents, including accidents related to Daejeon Safety Industries. General insurance, which has a high proportion of corporate policies, can experience significant profit volatility due to large incidents such as factory fires or industrial accidents.
However, the foundation for future profits showed signs of improvement. By the end of the first quarter, the insurance contract margin (CSM) balance increased by 616.9 billion won to 12.8 trillion won compared to the end of the previous year.
Capital soundness indicators also improved. DB Insurance's consolidated solvency ratio (K-ICS) rose to 232.1%, an increase of 13.9 percentage points from the previous quarter, reflecting proactive capital expansion measures such as the issuance of new capital securities.
* This article has been translated by AI.
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