ING Direct 2002 Annual Report Download - page 37

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Annual Report 2002 · ING Group34
Report of the Executive Board
 
US business affected by
adverse economic conditions
—
ING Americas has 29 million
clients and 250,000 points
of distribution in seven
countries.
—
Top-five position in most US
business lines
—
Canada: ING most
profitable P&C player
—
Largest insurer in South
America
 
Build customer-focused integrated financial services businesses which deliver strong
earnings-growth engines in each country market.
 
REDUCING VULNERABILITY
TO THE UPS AND DOWNS
OF FINANCIAL MARKETS
The main goals during the year were to sharpen the focus
on the customer, reduce the cost structure, enhance the
distribution platforms and improve operational efficiency.
These goals were met to a large extent. The results of Canada,
Latin America (including Mexico) and the institutional
businesses in the US were better than expected. However, the
large US retail and worksite business was hampered by the
continued adverse economic conditions and equity markets,
and as a result ING Americas as a whole fell short of
expectations. Costs in the US were significantly reduced, but
not enough to offset the impact of the high asset impairments,
lower fees earned on reduced assets under management,
and deferred-acquisition-costs unlocking. In Mexico, major
organisational changes resulted in sizeable cost savings, higher
earnings and a more efficient business organisation. In Brazil,
the Group took a major step forward by expanding its
relationship with the insurer Sul América.
Strategy
ING Americas’ goal is to become the leading
integrated financial services provider in its key
markets. To achieve that, ING is working to build
strong earnings engines in each of its selected
countries. ING Americas operates in seven primary
countries, has 29 million customers throughout
the region, and enjoys a broad sales platform
consisting of approximately 250,000 points of
distribution. Specific strategic imperatives are to
convert ING’s current size into scale, increase the
number of relationships with its customers and
distributors, and improve efficiency.
ING Americas has five key sub-strategies in
place to help achieve its business objectives. The
first is putting the customer first. Delivering
value and service to customers is ING’s number
one objective. ING aims to provide retail
customers with the services and products they
need through the distribution channel of their
choice. The second key sub-strategy is effective
portfolio management. ING Americas believes it
should hold its top-five position in the US and
the number one or two in other selected
markets, or else it should exit. The third is
restructuring the business and implementing
OPERATIONAL RESULT
BEFORE TAXATION
in millions of euros
1,079
4,562
ING Americas 19%
Rest of ING 81%