ING Direct 2002 Annual Report Download - page 41

Download and view the complete annual report

Please find page 41 of the 2002 ING Direct annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 97

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97

Annual Report 2002 · ING Group38
Report of the Executive Board
Strategy
In Asia/Pacific ING focuses on achieving long-
term, sustainable leadership positions. Key
strategic elements are growing the customer
base, expanding distribution, building the
brand, maximising cross-selling opportunities,
actively managing product and portfolio risks
and improving operational efficiency.
Asia/Pacific is a highly heterogeneous
region in terms of market development. It is
necessary to distinguish between mature markets
such as Australia and Japan, semi-mature
markets like Korea and Taiwan, and emerging
markets like India and China. ING has set its
strategic priorities with due consideration of
each market’s maturity and business environment.
Market positions
ING is a prominent international financial services
provider in Asia/Pacific with six million retail
clients. The portfolio comprises large businesses
across six mature and semi-mature markets. It also
includes four greenfields (China, India, Indonesia,
Thailand) of which India and China have the
highest growth potential. ING differentiates
itself from its competitors by offering a variety
of financial products and services through the
customer’s channel of choice. The distribution
platform consists of tied agents, independent
agents, brokers/dealers and banks. In all, ING has
60,000 points of distribution in Asia.
In Australia, ING is well-positioned, with an
excellent size and 1.5 million retail clients. ING
Australia, formerly known as Mercantile Mutual,
enjoys a 10% market share in retail life insurance
and 8% in retail wealth management business.
The approximately 13,000 independent advisors
with whom ING works are the most important
distribution channel in the country. The non-life
business is written through a 50/50 joint venture
with QBE called QBE Mercantile Mutual. It ranks
number two with a 17% market share.
In New Zealand, ING New Zealand manages
about 16% of all mutual funds in the country,
making it the number-three player by assets
under management.
 
Asia/Pacific delivered
excellent performance in
2002
—
Insurance business in Asia
less susceptible to market
volatility
—
Strategy: long-term leader-
ship positions in key markets
—
Most important green-
fields: India and China
—
60,000 points of distribution
and 6 million retail
customers in Asia/Pacific
region
 
To be a top player in the key markets of Australia, Hong Kong, Japan, Korea, Malaysia
and Taiwan, while further developing the major greenfields in China and India.
 ⁄
ROBUST RESULTS
IN TURBULENT YEAR
Despite the depressed equity markets and economic
conditions, ING Asia/Pacific did well in 2002. The region as a
whole exceeded its financial plans for the year with the
businesses in Australia, Japan and Korea delivering sub-
stantially higher-than-expected results. The integration of
Aetna was completed. Re-branding was completed in almost
all countries. ING is now working to build long-term leadership
positions in its key markets. In several countries ING extended
strategic alliances in order to enhance distribution capacity.
The year 2002 also saw the establishment of several regional
shared service centres to improve synergy and lower the cost
base.
OPERATIONAL RESULT
BEFORE TAXATION
in millions of euros
618
5,023
ING Asia/Pacific 11%
Rest of ING 89%