ING Direct 2011 Annual Report Download - page 191

Notes to the consolidated annual accounts of ING Group continued
42 OTHER INCOME
Other income
Banking operations Insurance operations Total
2011 2010 2009 2011 2010 2009 2011 2010 2009
Net operating lease income 176 213 175 176 213 175
Income from real estate
development projects 31 36 59 31 36 59
Income post office –7 99 –7 99
Other 916 98 124 227 257 244 1,143 355 368
1,116 347 457 227 257 244 1,343 604 701
Net operating lease income comprises income of EUR 772 million (2010: EUR 1,000 million; 2009: EUR 967 million) and depreciation
ofEUR 596 million (2010: EUR 787 million; 2009: EUR 792 million).
In 2011, Other includes a gain of EUR 955 million on the repurchase of subordinated loans as disclosed in Note 14 ‘Subordinated loans’.
43 UNDERWRITING EXPENDITURE
Underwriting expenditure
2011 2010 2009
Gross underwriting expenditure
– before effect of investment result for risk of policyholders 34,962 34,523 32,393
– effect of investment result risk of policyholders –1,246 10,492 17,736
33,716 45,015 50,129
Investment result for risk of policyholders 1,246 –10,492 –17,736
Reinsurance recoveries –1,875 –1,721 –1,700
Underwriting expenditure 33,087 32,802 30,693
The investment income and valuation results regarding investments for risk of policyholders is EUR –1,246 million (2010: EUR 10,492
million; 2009: EUR 17,742 million). This amount is not recognised in Investment income and valuation results on assets and liabilities
designated at fair value through profit and loss but in Underwriting expenditure. As a result it is shown together with the equal amount of
change in insurance provisions for risk of policyholders.
41 NET TRADING INCOME
Net trading income
Banking operations Insurance operations Total
2011 2010 2009 2011 2010 2009 2011 2010 2009
Securities trading results –133 231 331 36 180 155 –97 411 486
Foreign exchange transactions
results –374 648 –158 –179 –604 167 –553 44 9
Derivatives trading results 882 174 815 882 174 815
Other –49 64 –185 26 –66 –23 –2 –185
326 1,117 803 –117 –490 322 209 627 1,125
Securities trading results includes the results of making markets in instruments such as government securities, equity securities, corporate
debt securities, money-market instruments, and interest rate derivatives such as swaps, options, futures and forward contracts. Foreign
exchange transactions results include gains and losses from spot and forward contracts, options, futures, and translated foreign currency
assets and liabilities.
The portion of trading gains and losses for the year ended 31 December 2011 relating to trading securities still held as at 31 December
amounted to EUR –66 million (2010: EUR 19 million; 2009: EUR 105 million).
The majority of the risks involved in security and currency trading is economically hedged with derivatives. The securities trading results
arepartly offset by results on these derivatives. The result of these derivatives is included in Derivatives trading results.
1 Who we are 2 Report of the Executive Board 3 Corporate governance 4 Consolidated annual accounts 5 Parent company annual accounts 6 Other information 7 Additional information
189ING Group Annual Report 2011