ING Direct 2008 Annual Report Download - page 168

2.1 Consolidated annual accounts
Notes to the consolidated profit and loss account of ING Group (continued)
Profit sharing and rebates
2008 2007 2006
Distributions on account of interest
or underwriting results –576 –133 458
Bonuses added to policies 131 411 369
Deferred profit sharing expense 29 146 –26
–416 424 801
Underwriting expenditure includes an amount of EUR 3,804 million in 2008 (2007: EUR 4,275 million; 2006: EUR 4,141 million) in
respect of commission paid and payable with regard to the insurance operations. Amortisation of deferred acquisition costs amounted
to EUR 2,026 million in 2008 (2007: EUR 1,552 million; 2006: EUR 1,444 million).
Expenditure from Life underwriting includes an amount of EUR 136 million in 2008 (2007: EUR 110 million; 2006: EUR 181 million)
in relation to reserve strengthening for Insurance Asia/Pacific as described in further detail under Segment reporting.
ING transferred part of its life insurance business to Scottish Re in 2004 by means of a co-insurance contract. A loss amounting to
EUR 160 million was recognised in Underwriting expenditure in 2004 on this transaction. This loss represented the reduction of the related
deferred acquisition costs. In addition, an amount of EUR 240 million is being amortised over the life of the underlying business, starting
in 2005 and gradually decreasing in subsequent years as the business tails off. The amount amortised in 2008 was EUR 12 million (2007:
EUR 15 million; 2006: EUR 32 million). The cumulative amortisation as at 31 December 2008 was EUR 96 million (2007: EUR 81 million;
2006: EUR 66 million). On 23 January 2009, Hannover Re and Scottish Re announced that Hannover Re has agreed to assume the ING
individual life reinsurance business originally transferred to Scottish Re in 2004.
42 INTANGIBLE AMORTISATION AND OTHER IMPAIRMENTS
Intangible amortisation and (reversals of) impairments
Impairment losses Reversals of impairments Total
2008 2007 2006 2008 2007 2006 2008 2007 2006
Property and equipment 19 2 1 –14 –4 19 –12 –3
Property under development for third parties 93 41 19 –31 –43 62 –2 19
Goodwill 155 155
Software and other intangible assets 71 15 10 71 15 10
Other 3 –4 –2 –4 1
(Reversals of) other impairments 338 58 33 –31 –61 –6 307 –3 27
Amortisation of intangible assets 157 18 8
464 15 35
Impairments on Loans and advances to customers are presented under Addition to loan loss provision. Impairments on investments are
presented under Investment income. Reference is made to the ‘Risk management’ section for further information on impairments.
No individual principal event or circumstance has led to a material recognition or reversal of the impairment losses.
Amortisation of intangible assets relates to intangible assets recognised as part of companies acquired. Until 2007, these were classified
in Other operating expenses. The comparatives for 2007 and 2006 have been amended to reflect the revised presentation. There is no
impact on Total expenses.
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