Align Partners Issues Public Shareholder Letter and Submits Formal Shareholder Proposals to DB Insurance

Align Partners Capital Management Inc. (“Align Partners”), a shareholder of DB Insurance Co., Ltd. (KRX:005830) (“DBI” or the “Company”) holding 1.9%, has issued a public shareholder letter to DBI’s Board of Directors aimed at strengthening capital allocation policy and governance oversight, and submitted formal shareholder proposals for the 2026 Annual General Meeting (“AGM”).

Despite DBI’s robust fundamentals—including a 16.1% ROE and a 226% K-ICS ratio—the Company trades at an adjusted PBR of 0.40x, representing a severe 60% discount to its Comprehensive Equity under IFRS17. Align Partners identifies inefficient capital allocation and a lack of independent governance oversight as primary drivers of this persistent undervaluation.

The letter notes that DBI’s Return on Required Capital (ROR) of 21.2% significantly lags behind domestic and global peers, reflecting a historical focus on top-line growth over risk-adjusted profitability. This is exacerbated by a passive payout policy and structural conflicts of interest. Specifically, the controlling family’s 47.8% stake in DB Inc. compared to 20.9% in DBI incentivizes profit shifting through high-margin intra-group IT contracts and brand royalties. Furthermore, a recent transfer of treasury shares to an employee welfare fund is viewed as a maneuver to “resurrect” voting rights for the benefit of the controlling shareholders.

To rectify these issues, Align Partners’ letter proposes eight strategic measures, including transitioning to ROR-based management, implementing a capital policy targeting a 50% total payout ratio, and immediately retiring the 12.6% treasury share balance. The proposal also demands the cessation of unfair intra-group transactions, a transition to a joint trademark ownership model, and institutional reforms such as separating the CEO and Board Chair roles. A formal response and an updated “Value-up” plan are requested by March 6, 2026.

Separately, Align Partners submitted the following shareholder proposals to be voted on at the 2026 AGM:

• Election of two independent directors (Audit Committee members).
• Amendment to re-establish an Internal Transaction Committee composed entirely of outside directors.

For additional details, visit (Letter / Proposal), and contact dbi_valueup@alignpartnerscap.com for any questions.

About

Align Partners Capital Management Inc. is an investment company focused on Korea. Led by CEO Changhwan Lee, Align Partners leverages expertise in private equity and investment banking to engage with portfolio companies to address governance inefficiencies and the “Korea discount.”

https://www.alignpartnerscap.com/en/

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