DB Insurance Issues KRW 300 billion in New Type Capital Securities: Improves K-ICS Ratio to 235.1% and Repays Existing Subordinated Debt
DB Insurance issues KRW 300 billion in new-type subordinated capital securities (4th series) to fully repay existing subordinated bonds (Issued in 2021, KRW 300 billion). This increases the consolidated K-ICS ratio from 232.1% to 235.1% (up 3.0%p) and the basic capital K-ICS ratio from 92.1% to 93.3% (up 1.2%p).
The bond has a 30-year maturity (2056), a call option after 5 years (2026-06-09), and includes interest deferral and cancellation clauses, meeting the regulatory requirements for basic capital under the Insurance Business Act.
The expected interest rate band is 4.70%~5.30% per annum, to be finalized through a book-building process on June 1, 2026.
In Q1 2026, standalone net profit was KRW 268.5 billion, down 39.9% YoY, but the contractual service margin (CSM) remained solid at KRW 12.8 trillion.
As of May 26, 2026, the company holds 4,856,880 treasury shares (7.42%). It canceled 5,299,651 shares worth approximately KRW 973 billion in late 2025 and March 2026, continuing shareholder return efforts.
[AI Comprehensive Analysis]This issuance is a neutral event aimed at managing capital structure and slightly improving financial soundness. However, the fixed-rate debt in a rising rate environment could increase interest burden. Given the high proportion of long-term savings-type insurance and interest-sensitive liabilities, future market rate changes and regulatory shifts pose significant risks to profitability and capital adequacy.