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DB Insurance: Combined Ratio Up, Premiums To Rise Next Year

Summary

3Q18 net income missed the consensus of KRW163.1bn, coming in at KRW151.6bn (-2.5% YoY).

The auto loss ratio (+4.7%p YoY) and expense ratio (+1.5%p YoY) both increased, driving the combined ratio higher (+0.2%p YoY).

We revise down our 2018-2020 earnings forecasts by about 4%, and trim our target price to KRW90,000 while reiterating BUY.

Insurance Hyundai Motor Securities Korea stocks

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.