Thanks to improved long-term insurance results, DB Insurance(005830)'s net income for the second quarter of this year increased by nearly 55% from a year earlier.
DB Insurance said on the 13th that second-quarter net income rose 54.6% on-year to 711.1 billion won. Revenue fell 3.7% to 5.3134 trillion won, but operating profit increased 57.4% to 963.9 billion won.
Insurance profit came to 561.8 billion won, up 109.9% from a year earlier. Long-term insurance profit rose 98.6% to 510.5 billion won, leading the overall improvement. The long-term risk loss ratio improved in the second quarter compared with the first quarter, and there was a reversal of loss-making contracts due to changes in actuarial assumptions.
By contrast, auto insurance profit was 6.2 billion won, down 80.6% from a year earlier. DB Insurance said results worsened from a year earlier, but the pace of the loss ratio increase slowed compared with the first quarter. General insurance profit turned to a surplus of 45.1 billion won. However, due to a large loss in the first quarter, cumulative profit and loss for the first half recorded a deficit of 2.4 billion won.
Investment profit was 402.1 billion won, up 16.7% from a year earlier.
As of the end of June, the risk-based capital (K-ICS) ratio was 204.3%, down 27.8 percentage points from the previous quarter. The K-ICS ratio declined due to the Potegra acquisition, but it remained above the company's target of 200%.
The contractual service margin (CSM) multiple—calculated by dividing expected future profit from new insurance contracts by the first monthly premium paid by the policyholder—was 16.5 times for protection-type insurance and 4.6 times for savings-type insurance. The total CSM balance was tallied at 12.08 trillion won on a direct business basis.