ING Canada reports 2006 Q4 earnings of $109.4 million

ING Canada Inc. reported net income of Cdn$109.4 million for the quarter ended Dec. 31, 2006, down from Cdn$196.9 million reported in the same quarter last year.The company says the drop in net income was driven by lower underwriting income, lower realized investment gains and higher income taxes.
Net income for the full year 2006 was Cdn$658.1 million compared to Cdn$781.8 million in 2005.
Net cash provided by operating activities was Cdn$103.9 million in Q4 2006 compared to Cdn$186.3 million in Q4 2005.
Claude Dussault, president and CEO, commented, “Overall, our insurance businesses performed well throughout 2006 although profitability for the quarter reflects lower underwriting results and a decrease in realized investment gains. Underwriting results for the quarter were adversely affected by weather-related catastrophes and lower favourable prior year claims development.
We continue to enjoy high liquidity and a strong capital base.”
According to an ING press release, several key factors will affect the property and casualty insurance industry over the coming twelve months. Top line growth for the property and casualty insurance industry will continue to remain below historical levels, the company predicted. On the other hand, the company believes underwriting results should continue to exceed historical averages.
ING Canada also announced that the company will increase its quarterly dividend by 2.0 cents to 27.0 cents per share on its outstanding common shares. The dividend will be payable on March 30 to shareholders of record on March 15.