ING Direct 2009 Annual Report Download - page 183

42 OTHER INCOME
Other income
Banking operations Insurance operations Total
2009 2008 2007 2009 2008 2007 2009 2008 2007
Net operating lease income 175 195 79 175 195 79
Income from real estate development projects 59 124 95 59 124 95
Income post office 99 144 148 99 144 148
Other 123 28 258 235 153 305 358 181 563
456 491 580 235 153 305 691 644 885
Net operating lease income comprises income of EUR 967 million (2008: EUR 961 million; 2007: EUR 803 million), depreciation of
EUR 792 million (2008: EUR 766 million; 2007: EUR 724 million) and other expenses of nil (2008: nil; 2007: nil).
43 UNDERWRITING EXPENDITURE
Underwriting expenditure
2009 2008 2007
Gross underwriting expenditure:
– before effect of investment result for risk
of policyholders 32,698 51,239 50,739
– effect of investment result risk of policyholders 17,742 –32,408 1,079
50,440 18,831 51,818
Investment result for risk of policyholders –17,742 32,408 –1,079
Reinsurance recoveries –1,714 –1,754 –1,906
Underwriting expenditure 30,984 49,485 48,833
The investment income and valuation results regarding investment result for risk of policyholders of EUR 17,742 million (2008:
EUR –32,408 million; 2007: EUR 1,079 million) have not been recognised in Investment income and valuation results on assets and
liabilities designated at fair value through profit and loss but are recognised in Underwriting expenditure together with the equal
amount of change in insurance provisions for risk of policyholders.
Underwriting expenditure by class
2009 2008 2007
Expenditure from life underwriting
Reinsurance and retrocession premiums 1,867 1,802 1,968
Gross benefits 24,044 27,159 28,877
Reinsurance recoveries –1,708 –1,662 –1,749
Change in life insurance provisions
for risk of company 2,692 17,407 11,979
Costs of acquiring insurance business 350 1,877 1,098
Other underwriting expenditure 460 462 457
Profit sharing and rebates 1,029 –416 424
28,734 46,629 43,054
Expenditure from non-life underwriting
Reinsurance and retrocession premiums 70 196 306
Gross claims 1,012 2,846 3,589
Reinsurance recoveries –6 –92 –157
Change in provision for unearned premiums –2 28 79
Change in claims provision –23 54 13
Costs of acquiring insurance business 290 742 979
Other underwriting expenditure –4 –22 –50
1,337 3,752 4,759
Expenditure from investment contracts
Costs of acquiring investment contracts 3919
Profit sharing and rebates 11 16
Other changes in investment contract liabilities 899 –905 985
913 –896 1,020
30,984 49,485 48,833
2.1 Consolidated annual accounts
ING Group Annual Report 2009 181
Notes to the consolidated profit and loss account of ING Group (continued)