Canadian insurance operations strong for ING

Financial services giant ING Group reports that its Canadian operations were a “solid performer” in the second quarter of 2002. Overall, the Amsterdam-based company reported net operating profit is down for the period ending June 30, 2002 to Cdn$3.5 billion, a drop of 2% from the same period a year earlier. Per share operational net profit also dropped 2.1%, to $1.83. But total net profit was up 4% to $4.3 billion for the period, due to cost controls and restructuring.
In Canada, which falls under the mantle of ING Americas, the group’s p&c business reports operating profit of $69.9 million for the quarter, versus $56.8 million during the same period last year. This growth is largely the result of strong underwriting results, the group reports.
Other factors contributing to the Canadian operation’s strong showing were a growth in customer retention with the integration of Zurich Canada’s personal lines and small commercial books, and cost savings from integration of Zurich operations into ING.
Further consolidation added cost savings as several companies were brought under the mantle of ING Insurance Company of Canada.
“Our results for the first six months of this year show that we stepped up to the challenges brought on by difficult market conditions in our hemisphere,” says Glenn Hilliard, chairman and CEO of ING Americas. “We are pleased with our six-month results but it is clear that the sluggish U.S. market recovery is affecting us and others in financial services so we continue to be cautious about prospects for the second half.”