South Korea’s DBI Retains Superior Credit Ratings From AM Best

KUALA LUMPUR, July 16 (Bernama) -- Global credit rating agency, AM Best has affirmed the financial strength rating of A+ (Superior) and the long-term issuer credit rating of “aa-” (Superior) of South Korea’s DB Insurance Co Ltd (DBI).

The outlook of these credit ratings (ratings) is stable, reflecting DBI’s balance sheet strength, assessed by AM Best as very strong, along with its strong operating performance, favourable business profile and appropriate enterprise risk management.

AM Best in a statement said DBI’s risk-adjusted capitalisation is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio, including credit for hybrid securities.

DBI’s strong capability in internal capital generation, financial flexibility and tight asset-liability management allows the company’s capital position to remain resilient amid an unfavourable business environment such as volatile interest rate movements.

In AM Best’s view, the company had a positive adjusted financial leverage ratio of 11.9 per cent at year-end 2025, which includes equity credit for hybrid securities, and strong interest coverage for 2025.

While the acquisition of The Fortegra Group Inc (Fortegra), completed in May 2026, could potentially weigh on risk-adjusted capitalisation, AM Best views DBI as having a sufficient capital buffer to absorb the impact and expects the company to recover through strong earnings generation.

AM Best assesses DBI’s operating performance as strong, underpinned by continued double-digit return-on-equity, supported by a combined ratio that generally outperforms its domestic peers and robust investment profits.

The credit rating agency expects the recent decrease in overall underwriting profitability to be manageable, following various mitigative measures in each business line, including active rate adjustments and tightened underwriting discipline.

As one of the leading non-life insurers in South Korea with a market share of about 19 per cent in terms of insurance service revenue in 2025, DBI benefits from a strong brand in its domestic market and diversified product offerings such as long-term, auto and general insurances.

The acquisition of Fortegra is also expected to bring geographic and product diversification to DBI, bolstering its international growth strategy and supporting its long-term positioning in the United States market.

-- BERNAMA