ING Direct 2007 Annual Report Download - page 18

Underlying profit before tax rose
3.4% to EUR 2,059 million during
a period of difficult financial market
conditions in the US and an adverse
currency trend. Excluding currency effects,
underlying profit before tax rose 11%,
led by strong results in the US and Latin
America. The value of new business
increased 61.7% to EUR 270 million, due
to positive developments in both the
United States and Latin America.
In 2007, ING Americas continued to
transform its business profile, with the
aim of being a leading broad provider
of investment, life insurance and retirement
services products across the Americas
region.
Major strategic acquisition
With ING’s acquisition of Santander’s Latin
American pension businesses this year,
we have more than doubled assets under
management in the region to EUR 40
billion and secured leading pension
businesses in five countries: Mexico, Chile,
Colombia, Argentina and Uruguay.
This strategic acquisition in a key growth
market makes ING the second-largest
pension fund manager in Latin America.
It provides a solid platform to further grow
our presence in this important region,
where attractive macro-economic and
demographic trends are driving demand
for pension and life insurance products.
Solid growth
We achieved solid growth from strong
positions in retirement services and variable
annuity businesses, and from our broad
distribution capacity. ING is a top player in
defined-contribution retirement services,
providing pension plans to small- and
medium-sized corporations, educational
institutions, hospitals and governments.
Variable annuity sales hit record levels
following the launch of ING LifePay Plus,
a minimum guaranteed withdrawal benefit
that is proving very popular with investors
and financial advisers.
Meanwhile, US Insurance recorded sharply
higher sales and profits, led by Individual
Life which successfully launched several
new universal and term life products.
Unprecedented opportunity
Looking forward, millions of baby boomers
across the US are focusing on saving for
their imminent retirement. By 2020, two-
thirds of all the investable assets in the US
will be controlled by baby boomers. The
transfer of wealth between generations,
estimated to exceed USD 40 trillion,
will create huge opportunities for major
financial service companies that can offer
a broad range of retirement products and
services.
Looking forward
ING will continue to focus on investing for
growth in investment, life insurance and
retirement services in the Americas, and
market strength in key businesses means
we’re well-positioned to achieve it. Both
top- and bottom-line growth will therefore
continue to be driven organically, but with
an increasing additional emphasis on
growth through acquisitions.
Our main success story of 2007
has probably been the progress of
our investments, life insurance and
retirement services businesses.
In Latin America, the acquisition
of pension businesses was a real
Insurance Americas achieved significant
growth in both pre-tax profit and value
of new business for the fifth consecutive
year, as ING continued to focus resources
on higher-growth investment products,
life insurance and retirement services
businesses in the US and Latin America.
Tom
McInerney
Profit and loss account (underlying)
in EUR million 2007 2006 change
Premium income 23,537 24,118 –2.4%
Operating expenses 2,519 2,490 1.2%
Underlying profit before tax 2,059 1,992 3.4%
Total profit before tax* 2,152 1,992 8.0%
* Total profit before tax is defined as profit before tax including
divestments and special items.
16 Our performance
Insurance
Americas
ING Group Annual Review 2007