ING Canada reports drop in investment income, increase in underwriting income

ING Canada Inc. (TSX: IIC) has reported a quarterly net income of Cdn$57.3 million, marking a 37.7% decrease from 2007 Q3’s profit of Cdn$92.0 million.
The insurer’s combined ratio for the quarter was 94.0%, a decrease from 2007 Q3’s combined ratio of 97.1%.
ING Canada cites investment losses as a primary driver in the decrease of profits. Net losses on invested assets, excluding held-for-trading debt securities, totalled Cdn$62.0 million, for the quarter, an increase from the loss of Cdn$9.5 million reported in the same period of last year, a release says.
“The turbulence of the financial markets and the disposition of Cdn$259.5 million of common shares held in our investment portfolio resulted in realized losses of Cdn$41.4 million,” it continues. “Impairments to both equity and debt securities were down 47% to Cdn$15.1 million. For the year-to-date, we realized a loss of Cdn$122.2 million compared to a gain of Cdn$113.4 million during the corresponding period of last year.”
An underwriting income of Cdn$61.9 million for the quarter marked a 113.4% increase over 2007 Q3’s underwriting income of Cdn$95.4 million. 
Personal auto insurance results improved by Cdn$22.4 million during the quarter. The company notes a combined ratio of 90.8% in this segment reflected the impact of premium increases and better current accident year results.
Excessive rain and seasonal storms in Quebec and Ontario negatively affected personal property insurance, which sustained an underwriting loss of Cdn$27.6 million and a combined ratio of 112.2%.
ING Canada’s commercial insurance business posted a combined ratio 85.3% and an underwriting income of Cdn$40.4 million, up from Cdn$23.2 million, the release says.
“The increased profitability in commercial insurance reflects an improved current year experience as well as more favourable prior year claims development,” the release notes.