[Edaily Reporter Kim Kyung-eun ] On the 3rd, DaishinSecurities raised its target price for DB INSURANCE(005830)from 200,000 won to 250,000 won, citing that shareholder returns are expected to increase due to the company’s new value-enhancement policy and the effects of the Fortegra acquisition. The firm maintained its “Buy” rating.

Park Hye-jin, an analyst at DaishinSecurities, stated, “Even under conservative assumptions, total dividends are expected to increase to 90 billion won in 2027 and 100 billion won in 2028.”

DB INSURANCE announced its “Value-Up Policy 2.0” after completing the acquisition of Fortegra. Previously, the company had planned to raise the shareholder return ratio to 35% on a standalone basis by 2028, but it has expanded this target to 40% on a consolidated basis and 50% on a standalone basis by 2030. It also plans to increase the dividend per share (DPS) by at least 10% annually.

At the end of last year, the standalone dividend payout ratio stood at 29.7%. DaishinSecurities analyzed that, if the new policy is implemented, the return rate will rise by approximately 4 percentage points annually through 2030 and will be about 2 to 3 percentage points higher each year compared to previous estimates.

The firm also assessed that the company has sufficient capacity to pay dividends. DB INSURANCE set its dividend range by utilizing both the solvency ratio (K-ICS) and the dividend coverage ratio (DCR). The DCR is a metric calculated by dividing distributable earnings by the expected dividend payout. As of the end of June, distributable funds stood at 2.6 trillion won; applying DaishinSecurities’ projected dividend of 600 billion won for this year yields a DCR of 433%. This falls within the company’s “excess” range of 400% or higher, indicating that additional dividends are feasible.

DB INSURANCE’s DPS for this year is projected to be 10,000 won, a 31.6% increase from last year’s 7,600 won. It is further projected to rise to 12,000 won in 2027 and 13,200 won in 2028. Net income is also estimated to rise from 1.846 trillion won this year to 2.019 trillion won in 2027 and 2.075 trillion won in 2028.

The decision to avoid excessive competition for new contracts was also viewed positively. The company plans to manage the volume of new contracts to curb erosion of the contract margin (CSM) and rising operating expenses, while simultaneously securing funds available for dividends. The report assessed this as a strategy for sustainable, balanced growth.

Analyst Park stated, “The effort to avoid competition for new contracts—thereby preventing erosion of the CSM and rising operating expenses, and above all, securing dividend resources—is very positive,” adding, “We are raising our target price by 20% to reflect the upward revision of earnings estimates for 2027–2028 due to the inclusion of Fortegra’s results, as well as the expanded dividend policy.”