ING Canada reports Cdn$36.3-million loss in 2009 Q1

ING Canada Inc reported a net loss of Cdn$36.3 million in 2009 Q1, compared to a net gain of Cdn$23 million in 2008 Q1.
The company cited home insurance results as a major contributor to the loss.
“Our operating performance continued to be healthy during the quarter driven by good underwriting results,” said Charles Brindamour, president and CEO of ING Canada Inc. “All our business lines performed well in the current environment except our home insurance business.
“We are focused on improving our home insurance results through a robust action plan.”
ING Canada said its home insurance business sustained a quarterly loss of Cdn$26.9 million and finished the quarter with a combined ratio of 112% “due to higher claims frequency related to the rapid snow melt.”
In contrast, the company’s results in personal auto lines increased by Cdn$24.2 million and the combined ratio fell 4.8% (down to 96.1%). On the commercial side, the company reported an underwriting profit of Cdn$15.4 million and a combined ratio of 94.1%
Overall, the company reported a 99.2% combined ratio for 2009 Q1 and an ROE of 2.4% (ROE was 13% in 2008 Q1).
ING Canada said a solid performance in all lines of business except home insurance led to an underwriting income of Cdn$7.9 million in 2009 Q1.
ING Canada reported excess capital of Cdn$388.9 in excess capital and a minimum capital test score of 208.2%.