Samsung Securities has raised its target price for DB Insurance to 250,000 won, reflecting a positive assessment of the company's plans to enhance its corporate value. The investment recommendation remains a 'buy.'
In a report released on the same day, analyst Jeong Min-ki noted, "While the timeline for the previous target (35% standalone by 2028) has been pushed back by two years, the level has been increased by 15 percentage points."
DB Insurance has set a goal of achieving a shareholder return rate of 40% on a consolidated basis and 50% on a standalone basis by 2030 as part of its corporate value enhancement plan. Additionally, the company aims to increase its annual dividend per share (DPS) by more than 10% each year.
Jeong explained, "This is the first time the company has specified a consolidated target, and the goal of growing DPS by over 10% annually is also significant. Shareholder returns will primarily focus on cash dividends, while share buybacks will be considered a strategic measure in exceptional circumstances, such as significant undervaluation of the stock."
He added, "The company's distributable earnings are projected to reach 1.8 trillion won by the end of 2025 and 2.6 trillion won by mid-2026, resulting in a dividend coverage ratio (DCR) of about 470% compared to our estimated total dividends for 2026 (545.8 billion won), indicating ample capacity. However, fluctuations in interest rates and changes in net asset value, as well as regulatory impacts from reserve funds, will pose challenges for managing volatility and ensuring predictability in shareholder returns going forward."
Furthermore, he stated, "The company has prioritized securing stable dividend resources over aggressive top-line growth as its primary management goal, which is seen as a proactive approach to capital policy within the insurance sector."
* This article has been translated by AI.
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