ING Direct 2009 Annual Report Download - page 192

Operating segments
2009
Retail
Banking ING Direct
Com-
mercial
Banking
Insurance
Europe
Insurance
Americas
Insurance
Asia/Pacific Other
Total
segments Eliminations Total
Underlying income
– Gross premium
income 9,750 13,973 6,422 34 30,179 30,179
– Net interest result
– banking operations 5,737 3,136 3,821 –155 12,539 –164 12,375
– Commission income 1,332 167 1,185 494 1,194 107 4,479 4,479
– Total investment and
other income 170 –1,541 –318 2,390 1,095 1,089 1,436 4,321 –3,161 1,160
Total underlying income 7,239 1,762 4,688 12,634 16,262 7,618 1,315 51,518 –3,325 48,193
Underlying expenditure
– Underwriting
expenditure 10,163 14,365 5,877 33 30,438 30,438
– Operating expenses 4,708 1,663 2,350 1,503 1,611 599 358 12,792 12,792
– Other interest
expenses 318 225 922 2,576 4,041 –3,325 716
– Additions to loan
loss provision 997 765 1,211 2,973 2,973
– Other impairments 433 132 565 565
Total underlying
expenses 5,705 2,428 3,994 11,984 16,201 7,398 3,099 50,809 –3,325 47,484
Underlying result
before taxation 1,534 –666 694 650 61 220 –1,784 709 709
Taxation 328 –252 186 135 146 80 –544 79 79
Minority interest 17 –158 27 6 2 –12 –118 –118
Underlying net result 1,189 – 414 666 488 –91 138 –1,228 748 748
While the reserves for the segment Insurance Americas are adequate at the 50% confidence level, a net reserve inadequacy exists using a
prudent (90%) confidence level. In line with Group Policy, Insurance Americas is taking measures to improve adequacy in that region. This
inadequacy was offset by reserve adequacies in other segments, such that at the Group level there is a net adequacy at the prudent (90%)
confidence level.
Reconciliation between IFRS and Underlying income, expenses and net result
2009 Income Expenses Net result
Underlying 48,193 47,4 84 748
Divestments 840 754 76
Special items –1,268 1,052 –1,759
IFRS as applied by ING Group 47,765 49,290 –935
Divestments in 2009 mainly include the net impact of the sale of ING’s 70% stake in ING Canada, the Nationale Nederlanden Industry
Pension fund portfolio, the Annuity and Mortgage businesses in Chile, three US independent retail broker-dealer units (three quarters of
ING Advisors Network) and ING Australia Pty Limited.
Special items in 2009 reflects mainly the net impact of transaction result on the Illiquid Asset Back-up Facility, including the additional
Illiquid Assets Back-up Facility payments as part of the overall agreement with the European Commission of EUR 1.3 billion (EUR 930
million after tax), and restructuring costs.
Impairments on investments are presented within Investment income, which is part of Total income. In 2009, total impairments of
EUR 2,485 million are included in the following segments: nil in Retail Banking, EUR 1,393 million in ING Direct, and EUR 130 million
in Commercial Banking, EUR 244 million in Insurance Europe, EUR 501 million in Insurance Americas, EUR 12 million in Insurance
Asia/Pacific and EUR 205 million in Other.
2.1 Consolidated annual accounts
ING Group Annual Report 2009
190
Segment reporting (continued)