ING Direct 2008 Annual Report Download - page 167

40 OTHER INCOME
Other income
Insurance operations Banking operations Total
2008 2007 2006 2008 2007 2006 2008 2007 2006
Net operating lease income 195 79 65 195 79 65
Income from real estate development projects 124 95 220 124 95 220
Income post office 144 148 156 144 148 156
Other 153 305 –5 28 258 35 181 563 30
153 305 –5 491 580 476 644 885 471
Net operating lease income comprises income of EUR 961 million (2007: EUR 803 million; 2006: EUR 691 million), depreciation of
EUR 766 million (2007: EUR 724 million; 2006: EUR 626 million) and other expenses of nil (2007: nil; 2006: nil).
41 UNDERWRITING EXPENDITURE
Underwriting expenditure
2008 2007 2006
Gross underwriting expenditure:
– before effect of investment result for risk
of policyholders 51,239 50,739 50,363
– effect of investment result risk of policyholders –32,408 1,079 2,702
18,831 51,818 53,065
Investment result for risk of policyholders 32,408 –1,079 –2,702
Reinsurance recoveries –1,754 –1,906 –2,175
Underwriting expenditure 49,485 48,833 4 8,188
The investment income and valuation results regarding investment result for risk of policyholders of EUR –32,408 million (2007: EUR
1,079 million; 2006: EUR 2,702 million) have not been recognised in Investment income and valuation results on assets and liabilities
designated at fair value through profit and loss but are recognised in Underwriting expenditure together with the equal amount of
change in insurance provisions for risk of policyholders.
Underwriting expenditure by class
2008 2007 2006
Expenditure from life underwriting
Reinsurance and retrocession premiums 1,802 1,968 2,004
Gross benefits 27,159 28,877 26,234
Reinsurance recoveries –1,662 –1,749 –1,705
Change in life insurance provisions for risk of company 17,407 11,979 13,420
Costs of acquiring insurance business 1,877 1,098 1,083
Other underwriting expenditure 462 457 439
Profit sharing and rebates –416 424 801
46,629 43,054 42,276
Expenditure from non-life underwriting
Reinsurance and retrocession premiums 196 306 339
Gross claims 2,846 3,589 3,848
Reinsurance recoveries –92 –157 –470
Change in provision for unearned premiums 28 79 65
Change in claims provision 54 13 –209
Costs of acquiring insurance business 742 979 1,043
Other underwriting expenditure –22 –50 –71
3,752 4,759 4,545
Expenditure from investment contracts
Costs of acquiring investment contracts 9 19 31
Profit sharing and rebates 16 64
Other changes in investment contract liabilities –905 985 1,272
–896 1,020 1,367
49,485 48,833 48,188
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ING Group Annual Report 2008