DB Insurance: Resume coverage at Buy: Recent pullback creates opportunity; upside catalysts intact

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DB Insurance: Resume coverage at Buy: Recent pullback creates opportunity; upside catalysts intact

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DB Insurance

Resume coverage at Buy: Recent pullback

creates opportunity; upside catalysts intact

Resuming Coverage: BUY | PO: 189,000 KRW | Price: 143,800 KRW

One-offs behind 1Q weakness; expect normalization ahead 10 June 2026

We resume coverage on DB Insurance (DBI) with a Buy rating and a price objective (PO) Equity

of W189,000. The share price has corrected 11% since its 1Q26 earnings release,

following an earnings miss vs. consensus driven by a temporary increase in large-scale Jisun Lee >> Research Analyst

claims, a rise in loss ratios for indemnity insurance, one-off large claims in general Merrill Lynch (Seoul)

insurance, and a higher effective tax rate. That said, the increase in long-term loss ratios +82jisun.lee@bofa.com2 3707 0418

driven by the concentration of large claims appears to be largely one-off in nature. Simon Woo, CFA >>

Further, we expect the impact from indemnity insurance to gradually improve in 2H26, Research Analyst

Merrill Lynch (Seoul)

supported by the planned implementation of a new reimbursement control framework. +82 2 3707 0554

Given the likely resolution of the factors that have weighed on 1Q earnings, we see simon.woo@bofa.com

additional upside catalysts ahead, including the consolidation of Fortegra’s earnings

contribution from 2H26 and an updated value-up policy expected in August. These

developments are also likely to improve overall investor sentiment. Stock Data

Price 143,800 KRWExpect Fortegra Group acquisition to add earnings upside

On 1 June, DBI announced the completion of its acquisition of Fortegra, a US-based P&C Price Objective 189,000 KRW