South Korea’s KB Insurance Ratings Affirmed Excellent - AM Best

KUALA LUMPUR, Oct 30 (Bernama) -- Global credit rating agency, AM Best has affirmed South Korea’s KB Insurance Co Ltd (KBI) financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent), with a stable outlook.

These credit ratings (ratings) reflect KBI’s strong balance sheet, adequate operating performance, neutral business profile and appropriate enterprise risk management, as well as support from its parent, KB Financial Group Inc (KB Group), AM Best said in a statement.

KBI’s risk-adjusted capitalisation is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio, while its local solvency ratio is largely in line with the industry average and demonstrates an adequate buffer above the minimum regulatory requirements.

AM Best calculated KBI’s adjusted financial leverage at 8.2 per cent as of June 2026 and said the company has good access to capital markets and a conservative investment strategy.

KBI’s return on equity and combined ratios are broadly in line with domestic peers, but profitability in its main long-term insurance business remains under pressure from rising medical claims and competition. Its auto insurance business recorded underwriting losses in 2025 because of base rate cuts and stronger competition.

KBI is South Korea’s fourth-largest non-life insurer, with a stable market share of approximately 13 per cent, while its overseas operations remain modest, and it plans to explore further international opportunities with a measured approach to diversify earnings and sustain long-term growth.

As a wholly owned subsidiary and the only non-life insurer in KB Group, one of South Korea’s largest financial holding companies, KBI is strategically important to its parent and has received explicit capital support since joining the group in 2015.

AM Best said the ratings could be lowered if KBI’s balance sheet weakens significantly or if support from KB Group is reduced and could be raised if its operating performance consistently outperforms industry peers.

-- BERNAMA