DB Insurance reported a significant increase in net profit for the second quarter of this year, driven by improvements in long-term insurance profitability.
The company announced on August 13 that its net profit for Q2 reached 711.1 billion won, a 54.6% increase compared to the same period last year. During the same timeframe, operating profit rose by 57.4% to 963.9 billion won, while revenue decreased by 3.7% to 5.3134 trillion won.
Insurance profit surged to 561.8 billion won, marking a 109.9% increase year-on-year. Notably, long-term insurance profit rose by 98.6% to 510.5 billion won, significantly contributing to the overall performance improvement. This was attributed to an improved loss ratio in long-term risk and the recovery of loss contracts due to changes in household circumstances.
In contrast, automobile insurance profit fell to 6.2 billion won, an 80.6% decrease from the previous year. The company noted that while the loss ratio remained similar to the first quarter, the rate of increase in losses had somewhat slowed.
General insurance profit turned positive at 45.1 billion won, thanks to stable loss ratio management. However, due to significant losses in the first quarter, the cumulative general insurance profit for the first half of the year recorded a deficit of 2.4 billion won.
Investment profit increased by 16.7% year-on-year to 402.1 billion won.
For the first half of the year, cumulative figures showed revenue of 11.0917 trillion won, operating profit of 1.4272 trillion won, and net profit of 979.6 billion won, reflecting increases of 5.7%, 13.3%, and 8.0%, respectively. Cumulative insurance profit reached 788.4 billion won, up 17.6%, while investment profit rose by 8.4% to 638.2 billion won.
As of the end of June, the solvency ratio (K-ICS) stood at 204.3%, a decrease of 27.8 percentage points from the previous quarter. Although the capital ratio declined due to the acquisition of Potegra, it remained above the company's target of 200%.
The balance of the Contractual Service Margin (CSM) was 12.8 trillion won, an increase of 588.7 billion won from the end of last year. Despite a decrease in new contract CSM due to a decline in new protection contracts, the CSM balance continued to grow due to improved retention rates through management of cancellations and replacements. The CSM multiples were recorded at 16.5 times for protection and 4.6 times for savings.
* This article has been translated by AI.
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