ING Direct 2009 Annual Report Download - page 39

Insurance
ING Insurance ranks as the number three life insurance company
in the world based on premiums. It is a global leader in retirement
services and has an attractive mix of mature businesses and strong
market positions in growth markets.
Around the world, ING is the number one insurer in the
Netherlands, is ranked as the third largest in defined contribution
retirement savings plans in the US, is the second largest pension
provider in Latin America, the largest life insurance and pensions
provider in Central and Eastern Europe and the third largest foreign
insurer in the Asia/Pacific region. Few other insurers have as strong
a position in all three regions – Europe, Asia and the Americas.
Insurance results improved in 2009, bolstered by improved equity
returns, narrower credit spreads and lower expenses. Insurance
recorded an underlying loss before tax of EUR 191 million versus a
loss of EUR 1,380 million in the same period in 2008. Total result
before tax (including the impact of divestments and special items)
was EUR 699 million in 2009 versus a loss of EUR 1,635 million
in 2008.
The underlying pre-tax result for life insurance was a loss of
EUR 458 million compared to a loss of EUR 1,814 million in 2008.
The result was negatively affected by changes in variable annuities
assumptions in the US and Japan. Underlying profit before tax
from non-life insurance declined 38.6% to EUR 267 million from
EUR 435 million in 2008.
Underlying gross premium income decreased by 20.1%, or 20.9%
excluding currency effects, to EUR 30,179 million in 2009 from
EUR 37,760 million in 2008 as a result of lower sales of investment-
oriented products in the US, Japan and Central Europe.
Underlying operating expenses from Insurance operations declined
9.9% on a same-store basis, or 9.4% excluding the impact of
currency movements, to EUR 3,849 million from EUR 4,273 million
in 2008, as a result of cost-containment measures. In 2009, ING
Insurance reduced the number of full-time equivalent positions
by 5,151, exceeding the 2009 year-end target of 4,200.
New sales, measured in annual premium equivalent (APE) for the
life insurance business decreased 25.0% to EUR 4,456 million in
2009 from EUR 5,944 million in 2008. New sales declined in
Central and Rest of Europe, US, Korea and Japan due to continued
pressure on investment-linked product sales and the decision to
limit variable annuity sales in the United States. In the Netherlands,
sales increased by EUR 102 million to EUR 450 million, mainly driven
by group life. The value of new business (VNB) decreased 37.6% to
EUR 502 million.
Overview
Jan Hommen
chief executive officer
Patrick Flynn
chief financial officer
Koos Timmermans
chief risk officer
Tom McInerney
chief operating officer
Matt Rider
chief administrative officer
Management Board Insurance
as of 1 January 2010
ING Group Annual Report 2009 37