KB Insurance, net income increased 9.5% yoy this year outlook - one geumtu

[Korea hyerin nine financial newspaper reporter] had forecast a financial investment will grow 9.5% this year, net profit for the 22 days KB Insurance. This recommendation is made BUY, TP maintains ₩ 32,000.

Misdiagnosis won a Fellow of the securities is 'year net income forecast 9.5 percent to 323.9 billion won compared to the previous year, said,' lapse ratio, while falling year-on-year 0.6% p to 83.7%, the expense ratio was 0.5% p to rise combined ratio improvement is estimated at 0.1% p 'he said.

Security classification ratio is expected to improve long-term risk loss ratio -0.7% p -0.7% p, automotive -0.2% p, General.

Oh researchers' CM car insurance premium cuts participate when the loss ratio expected when the market Considering the aggressive company's sales strategy in entering it should linger room to be worse than 'said' expense ratios reason why a large rise is an online car insurance costs increase general and administrative expenses is mainly due to the rise of the factors and sluggish sales, he said.

Investment yield was estimated to be 3.0%, down 0.2% p YoY. He said 'previous car insurance combined ratio were recorded 103.5%, CM online combined ratio stood at 128.1%, "this year because" sales failed by only 135.7 billion won termination yet to secure economies of scale target is 350 billion won as was suggested, there is a need to focus on strategic direction for achieving future goals seem "he said.

In addition, the Year is expected ROE of 12.5%. Also consider the fall direction next year expected ROE 10.4% assuming a ratio momentum slowed valuation of the current P / B 0.6 times higher than the valuation attractive exist, said, "For the sake of securing additional shares in the future, KB Financial Group to existing shareholders for you can not not take into account the shareholder added that notable point is determined as a possible rebound.



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