AM Best Affirms Credit Ratings of DB Insurance Co., Ltd.
- July 15, 2026 08:33 AM (EDT)
//BestWire// - AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of DB Insurance Co., Ltd. (DBI) (South Korea). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect DBI’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favourable business profile and appropriate enterprise risk management.
DBI’s risk-adjusted capitalisation is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), including credit for hybrid securities. DBI’s strong capability of internal capital generation, financial flexibility and tight asset-liability management allows the company’s capital to stay 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% 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. AM Best 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. In particular, the company’s large contractual service margin will continue to provide a stable source of underwriting income in the long-term insurance line. Prospectively, the acquisition of Fortegra is expected to provide a moderate uplift to DBI’s overall earnings.
DBI remains one of the leading non-life insurers in South Korea, with a market share of about 19% in terms of insurance service revenue in 2025. The company benefits from a strong brand in its domestic market and its diversified product offerings, including long-term, auto and general insurances. Its profile is strengthened further by the life insurance business through its subsidiary, DB Life Insurance Co., Ltd. In addition, the acquisition of Fortegra is expected to bring geographic and product diversification to DBI, bolstering its international growth strategy and supporting its long-term positioning in the U.S. market.
Negative rating actions could occur if DBI shows a sustained deterioration in its operating performance to a level that no longer supports the current strong assessment. Negative rating actions also could occur if there is a significant deterioration in the company’s balance sheet strength fundamentals. Although unlikely in the medium term, positive rating actions could occur if DBI demonstrates an unquestionable market leadership position with high brand recognition in both domestic and overseas markets, while maintaining strong profitability.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings (BCR), Best’s Performance Assessments (PA), Best’s Preliminary Credit Assessments (PCA) and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.