DB Insurance reported strong performance in the third quarter of this year, driven by improvements in long-term and auto insurance.
The company announced on November 12 that its net profit for the third quarter reached 444 billion won, a 35.3% increase compared to the same period last year.
Insurance profit surged to 467 billion won, marking a 302.6% increase year-on-year. However, investment income fell by 53.6% to 151 billion won.
The improvement in insurance profit was led by a recovery in the profitability of long-term insurance and a return to profitability in auto and general insurance. Long-term insurance profit rose to 309 billion won, up 35.5% from the previous year. This was attributed to a reduction in losses from claims, enhanced management of non-covered expenses, premium adjustments, and measures to strengthen profitability, which contributed to stabilizing the loss ratio.
Auto insurance profit turned positive at 15.5 billion won, benefiting from fewer seasonal factors such as heavy rainfall compared to the previous year, which improved the loss ratio. The cumulative loss ratio decreased by 6.2 percentage points to 84.3% year-on-year.
General insurance also returned to profitability with a profit of 6.2 billion won. The cumulative loss ratio improved by 3.6 percentage points to 71.9% compared to a year ago, thanks to adjustments in reinsurance strategies and strengthened underwriting.
The balance of the Contractual Service Margin (CSM), which indicates the long-term profitability of insurance contracts, was recorded at 13.4 trillion won on a gross basis.
A DB Insurance official stated, "Despite unstable domestic and international conditions such as stock market declines, we maintained a solid profit level through improvements in insurance profit. In the fourth quarter, we plan to proactively respond to market uncertainties, strengthen our core competitiveness, and prioritize securing profit sources in the U.S. and Europe through our Potegra platform for stable operations and synergy."
* This article has been translated by AI.
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