DB Insurance Co Ltd First Take: 1Q26 results appear to be a large miss; Buy into weakness

研报英文原文证据摘录

DB Insurance Co Ltd First Take: 1Q26 results appear to be a large miss; Buy into weakness

J P M O R G A N Asia Pacific Equity Research

15 May 2026

DB Insurance Co Ltd Overweight

005830.KS, 005830 KS

First Take: 1Q26 results appear to be a large miss; Buy Price (15 May 26):W163,600

into weakness Price Target (Dec-26):W250,000

Our First Take: DB Insurance's 1Q26 results represent a significant miss, and we

believe the market is likely to react negatively in the near term. The company

reported disappointing earnings of W269B (-40% oya) in 1Q26 net profit, falling

well short of expectations (JPMe/Consensus: W444B/W379B), driven by a

substantial adverse variance recognition (-W106B). On a more constructive note,

the solvency ratio improved to 232% (14%p q/q), supported by rising yields and

earnings, which provides a degree of comfort around business growth capacity and Insurance

ACshareholder return potential. On the results call, managemnt indicated that loss MW Kim

ratio volatility should be more contained for the remainder of the year, especially (852) 2800-8517

with the medical indemnity premium hike effect kicking in from April 2026. In our mw.kim@jpmorgan.com

view, the current 101.7% risk-loss ratio in 1Q26 points to early signals of cash J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

generation pressure relative to the company's internal actuarial estimates.

Julia Kim

However, we note that provisioning has been relatively conservative heading into (852) 2800-8540

this quarter, and the overall scale of volatility is likely to moderate from here. The julia.c.kim@jpmorgan.com

company commented that the full year risk-loss ratio is expected to come in slightly J.P. Morgan Securities (Asia Pacific) Limited/ J.P.