ING Direct 2009 Annual Report Download - page 206

ING Group
Earnings at Risk by risk type
Credit and
Transfer Market Insurance Business Operational
Inter-risk
diversifi-
cation % Total
2009 Interest Rate Equity Real Estate FX
ING Bank 2,117 510 85 454 135 1,750 607 38% 3,505
ING Insurance 1,378 259 753 428 224 194 211 260 39% 2,269
Bank-Insurance
diversification % 1% 4% 2% 6% 6% 0% 7% 16% 7%
Total ING Group 3,471 737 821 825 337 194 1,814 730 40% 5,371
Earnings at Risk by risk type
Credit and
Transfer Market Insurance Business Operational
Inter-risk
diversifi-
cation % Total
2008 Interest Rate Equity Real Estate FX
ING Bank 2,519 444 303 476 89 357 626 30% 3,367
ING Insurance 320 61 699 525 224 214 223 344 42% 1,519
Bank-Insurance
diversification % 5% 9% 2% 6% 5% 0% 20% 26% 12%
Total ING Group 2,699 458 982 936 297 214 466 714 36% 4,313
Over 2009, the reported Earnings at Risk for ING increased. The increase is not due to additional risk taking, but due to the inclusion of risks
which were not yet taken into account in the 2008 figures. Credit risk has increased because specific impairment rules for available for sale
debt securities, whereby securities are written down to market value, even if expected credit losses are much smaller, are now better
reflected in the dashboard. Furthermore, the business risk figures have gone up significantly due to the inclusion of a) goodwill impairment
risk and b) the risk that the business volumes are lower than expected.
Without the model refinements mentioned above, the Earnings at Risk profile of ING Group would have decreased in 2009. For example,
Credit risk would have gone down due to large additions to provisions which were made during 2009. The decrease in equity risk is caused
by the recovery of the markets: equity investments are now further away from the impairment thresholds.
Risk management (continued)
2.1 Consolidated annual accounts
ING Group Annual Report 2009
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