AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of KB Insurance Co., Ltd. (KBI) (South Korea). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect KBI’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the support that the company receives from its parent, KB Financial Group Inc. (KB Group) and its strategic importance to the parent.
KBI’s risk-adjusted capitalisation is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s local solvency ratio is largely in line with the industry average and demonstrates an adequate buffer above the minimum regulatory requirements. KBI has reported a positive adjusted financial leverage of 8.2% as of June 2026, as calculated by AM Best, after incorporating equity credit for subordinated debts and a strong interest coverage ratio. The company has good access to capital markets and maintains a conservative investment strategy.
KBI’s return-on-equity and combined ratios are largely in line with its domestic industry peers. However, near-term profitability remains under pressure for KBI’s major business line, long-term insurance, due to increased medical claims and market competition. AM Best expects the company to manage its profitability with stronger underwriting controls and a large contractual service margin base. Although KBI’s auto insurance line recorded underwriting losses in 2025, due to the cumulative impact of base rate cuts and intensified competition, the company continues to expand its auto online channel as part of ongoing efforts to improve acquisition cost efficiency. KBI remains the fourth-largest non-life insurer in South Korea with a stable market share of approximately 13%, while its overseas operations remain modest. The company plans to explore further international opportunities with a measured approach to diversify earnings and sustain long-term growth.
As a wholly owned subsidiary of KB Group, one of the largest financial holding companies in South Korea, KBI is strategically important to the parent in terms of business diversification given that it is the sole non-life insurer within the group. Since its affiliation into the KB Group in 2015, KBI has a track record of receiving explicit support to bolster its capitalisation. Implicit support includes shared distribution channels and group-wide marketing activities under the KB Group brand in both domestic and overseas markets.
Negative rating actions could occur if there is a significant deterioration in the balance sheet strength fundamentals of KBI. Negative rating actions also could arise if support from KB Group is reduced to a degree that no longer supports the current level of enhancement. Positive rating actions could occur if KBI’s operating performance demonstrates strong and consistent results to positively distinguish itself from industry peers.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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