[Edaily Reporter KIM YOON-JEONG ] DB INSURANCE(005830)announced a new corporate value enhancement plan that aims to raise the shareholder return ratio (on a standalone basis) to 50% by 2030 and increase the dividend per share (DPS) by at least 10% annually. KIWOOM Securities viewed the plan positively, noting that it enhances the stability and predictability of shareholder returns, but pointed out that it was disappointing that share buybacks were limited to exceptional circumstances.

On the 31st, Ahn Young-jun, an analyst at KIWOOM Securities, commented on DB INSURANCE’s corporate value enhancement plan, stating, “The positive aspect is the improved projected annual increase in the shareholder return rate.” He further predicted that predictability regarding shareholder returns and dividend funding would also improve, as the company set a minimum annual DPS growth target of 10% and adopted distributable earnings as a key indicator.
DB INSURANCE raised its standalone shareholder return rate target from 35% by 2028 to 50% by 2030. On a consolidated basis, the company aims for 40% by 2030 and is considering expanding this to 50% after 2030. Considering that the standalone shareholder return rate was 30% last year, the annual increase in the shareholder return rate will expand from the previous 1.7 percentage points to 4 percentage points.
The range of the Solvency Margin (K-ICS) ratio within which shareholder returns can be made has also been expanded from the previous 200–220% to 150–220%. A dividend coverage ratio (DCR), calculated by dividing distributable earnings by projected dividends, will also be newly introduced. If the DCR falls below 100%, the level of shareholder returns will be adjusted; if it exceeds 400%, the bank plans to consider additional shareholder returns.
The company plans to use share buybacks as a strategic tool in exceptional circumstances, such as when the stock price is significantly undervalued. Analyst Ahn noted, “Given the recent surge in market interest in this area, it is somewhat disappointing that shareholder returns through new share buybacks are planned only for exceptional circumstances.”
The possibility of an increased dividend this year was also raised. Assuming this year’s earnings increase by approximately 10% year-over-year and the dividend payout ratio rises by 4 percentage points to 34%—based on market consensus—the DPS is estimated to be in the mid-9,000 won range. This represents an increase of about 25% from last year’s DPS of 7,600 won, with an expected dividend yield of approximately 5%.
He noted that further stock price appreciation would require support from actual earnings performance and the implementation of shareholder return plans. Analyst Ahn stated, “Beyond the attractiveness based on the dividend yield, we expect additional momentum for stock price appreciation to depend on the future results of implementing new corporate value enhancement plans.”
He added, “In particular, we believe it is essential to demonstrate the continuation and stabilization of earnings growth, secure additional capacity for shareholder returns through the implementation of sustainable, balanced growth strategies, and expand the absolute scale of returns.”