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Office building of KDB Life Insurance. (Photo=KDB Life Insurance) |
[Alpha Biz= Paul Lee] Korea Investors Service (KIS) announced on June 25 that it has downgraded the subordinated bond rating of KDB Life Insurance from ‘A+/Negative’ to ‘A/Stable’.
The rating agency cited a decline in the insurer’s business stability and continued underperformance in profitability compared to industry peers. KIS also noted a significant deterioration in capital adequacy, with the company’s Risk-Based Capital (RBC) ratio falling from 56.7% at the end of 2023 to 40.6% as of the end of March 2024.
KIS stated that it will closely monitor future developments, including the recovery of KDB Life’s insurance business competitiveness and market position, improvements in capital adequacy, and the extent of support from its parent company, Korea Development Bank (KDB).
Earlier this month, on June 23, Korea Ratings Corporation (Korea Ratings) also downgraded KDB Life’s subordinated bond rating from ‘A+’ to ‘A’.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
