[Edaily Reporter PARK MIN ] On the 31st, Shinhan Investment Securities maintained its “Buy” rating on DB INSURANCE(005830), noting that the quality and sustainability of its dividends have been further strengthened through a medium- to long-term corporate value enhancement (value-up) plan, and raised its target price from 220,000 won to 245,000 won. This represents an upside potential of 30.7% compared to the previous trading day’s (August 28) closing price of 187,400 won.

In a report published today, Lim Hee-yeon, an analyst at Shinhan Investment Securities, stated, “Based on projected distributable earnings of 2.9 trillion won in 2030 and a DCR of 300%, the total dividend payout is estimated at 966.7 billion won, with a DPS of 15,942 won, resulting in an expected dividend yield of 8.5% relative to the previous day’s closing price.” “We have raised our target price to 245,000 won to reflect factors such as the rise in book value per share (BPS), which already factors in the cancellation of treasury shares,” she said.

DB INSURANCE recently announced in a regulatory filing that it has raised its 2030 shareholder return target from the previous “35% on a standalone basis by 2028” to “40% on a consolidated basis and 50% on a standalone basis by 2030,” and pledged to grow the dividend per share (DPS) by at least 10% annually. The company set the target achievement range at a Solvency Ratio (K-ICS) of 150–220% and a Dividend Coverage Ratio (DCR) of 100–400%, and stated that it would consider additional shareholder returns if both metrics are exceeded simultaneously.

According to Shinhan Investment Securities, this value-enhancement plan is expected to have a positive impact on improving capital efficiency. The company has broadened the target range for the K-ICS—previously set at 200–220%—to 150–220%, and has refined its capital management framework by establishing new management standards: a Return on Required Capital (ROR) of at least 200% for new contracts and investments, and a Return on Investment (ROI) equal to or higher than the risk-free rate for investments in new businesses.

On the other hand, there is some concern regarding the company’s medium- to long-term growth potential. Shinhan Investment Securities assessed that while the return on equity (ROE) target—set at “cost of equity (COE, assuming 10%) + 2 percentage points or more”—is achievable given recent ROE levels, the potential for further upward growth is limited.

Furthermore, given the limited growth potential for the insurance contract margin (CSM) through the end of 2030, the firm predicted that stable growth in investment income and the profit contribution from Fortegra—whose acquisition was recently completed—will be key drivers of consolidated earnings growth.

Shinhan Investment Securities projected that DB INSURANCE’s third-quarter results would slightly exceed market consensus (operating profit of 534.3 billion won, net income attributable to controlling shareholders of 401.6 billion won), with operating profit of 574.5 billion won—including insurance profit of 313.3 billion won and investment profit of 261.3 billion won—and net income attributable to controlling shareholders of 407.2 billion won.

The firm projected DB INSURANCE’s 2026 annual operating profit at 2.2861 trillion won and net income at 1.5859 trillion won.

Analyst Im Hee-yeon stated, “In the absence of growth targets for revenue and profits, the trigger for a stock re-rating based solely on expanded shareholder returns over the medium to long term is somewhat weak; however, in terms of the quality and sustainability of dividends, the company ranks among the best in the industry.” She added, “It remains valid to approach the stock as a defensive play until at least one of the following is confirmed: additional shareholder returns, profit growth, or a share buyback policy.”