50 Secondary reporting format – Geographical segments
ING Group’s six business lines operate in seven main geographical areas: the Netherlands, Belgium, Rest of Europe, North America, Latin America, Asia and Australia. Geographical distribution of income is based on the origin of revenue.
Geographical segments
| 2007 | Nether- lands |
Belgium | Rest of Europe | North America | Latin America | Asia | Aus- tralia |
Other | Elimina- tions | Total |
|---|---|---|---|---|---|---|---|---|---|---|
| Income | ||||||||||
| – external | 15,577 | 5,850 | 6,424 | 28,240 | 3,186 | 13,999 | 1,005 | 2,307 | –2 | 76,586 |
| – inter-segment | 686 | –701 | 727 | –463 | 178 | 304 | 20 | 1,219 | –1,970 | |
| Total income | 16,263 | 5,149 | 7,151 | 27,777 | 3,364 | 14,303 | 1,025 | 3,526 | –1,972 | 76,586 |
| Segment profit before taxation | 2,252 | 1,542 | 1,987 | 2,233 | 523 | 551 | 452 | 1,503 | 11,043 | |
| Segment assets | 676,676 | 177,716 | 363,178 | 313,263 | 23,631 | 89,079 | 40,915 | 36,243 | –408,191 | 1,312,510 |
| Cost incurred in 2007 to acquire property, equipment, and intangibles | 370 | 61 | 1,215 | 316 | 679 | 113 | 56 | 341 | 3,151 | |
Geographical segments
| 2006 | Netherlands | Belgium | Rest of Europe | North America | Latin America | Asia | Aus- tralia |
Other | Elimina- tions | Total |
|---|---|---|---|---|---|---|---|---|---|---|
| Income | ||||||||||
| – external | 16,079 | 5,358 | 5,920 | 29,472 | 2,712 | 13,155 | 841 | 84 | 73,621 | |
| – inter-segment | 765 | –436 | 586 | –1,039 | 355 | 117 | 11 | 1,002 | –1,361 | |
| Total income | 16,844 | 4,922 | 6,506 | 28,433 | 3,067 | 13,272 | 852 | 1,086 | –1,361 | 73,621 |
| Segment profit before taxation | 3,585 | 1,115 | 1,785 | 2,315 | 318 | 583 | 340 | –101 | 9,940 | |
| Segment assets | 608,949 | 180,694 | 339,683 | 319,233 | 21,567 | 72,515 | 33,373 | 44,459 | –394,166 | 1,226,307 |
| Cost incurred in 2006 to acquire property, equipment, and intangibles | 1,506 | 62 | 253 | 228 | 40 | 75 | 46 | 2,210 | ||
Geographical segments
| 2005 | Netherlands | Belgium | Rest of Europe | North America | Latin America | Asia | Australia | Other | Eliminations | Total |
|---|---|---|---|---|---|---|---|---|---|---|
| Income | ||||||||||
| – external | 16,779 | 5,142 | 5,586 | 26,871 | 2,771 | 12,996 | 783 | 324 | 71,252 | |
| – inter-segment | 217 | –358 | 460 | –161 | 55 | 89 | 21 | –455 | –132 | |
| Total income | 16,996 | 4,784 | 6,046 | 26,710 | 2,826 | 13,085 | 804 | –131 | 71,120 | |
| Segment profit before taxation | 3,566 | 1,383 | 1,123 | 2,434 | 168 | 361 | 336 | –477 | 8,894 | |
| Segment assets | 271,096 | 165,590 | 329,198 | 275,661 | 19,653 | 64,176 | 26,832 | 6,433 | 1,158,639 | |
| Cost incurred in 2005 to acquire property, equipment, and intangibles | 1,271 | 138 | 173 | 135 | 41 | 51 | 21 | 1,830 |
Profit before taxation by geographical area
| 2007 | 2006 | Insurance operations 2005 |
2007 | 2006 | Banking operations 2005 |
2007 | 2006 | Total 2005 | |
|---|---|---|---|---|---|---|---|---|---|
| Netherlands | 1,446 | 2,182 | 1,714 | 806 | 1,403 | 1,693 | 2,252 | 3,585 | 3,407 |
| Belgium | 523 | 160 | 192 | 1,019 | 955 | 790 | 1,542 | 1,115 | 982 |
| Rest of Europe | 332 | 309 | 263 | 1,655 | 1,476 | 1,317 | 1,987 | 1,785 | 1,580 |
| North America | 1,826 | 1,564 | 1,443 | 407 | 751 | 705 | 2,233 | 2,315 | 2,148 |
| Latin America | 326 | 178 | 152 | 197 | 140 | 78 | 523 | 318 | 230 |
| Asia | 362 | 468 | 275 | 189 | 115 | 170 | 551 | 583 | 445 |
| Australia | 215 | 176 | 195 | 237 | 164 | 162 | 452 | 340 | 357 |
| Other | 1,503 | –101 | –256 | 1 | 1,503 | –101 | –255 | ||
| Total | 6,533 | 4,936 | 3,978 | 4,510 | 5,004 | 4,916 | 11,043 | 9,940 | 8,894 |
Geographical analysis of claims, expense ratio and combined ratio for non-life insurance policies
| 2007 | 2006 | Claim ratio 2005 |
2007 | 2006 | Expense ratio 2005 |
2007 | 2006 | Combined ratio 2005 |
|
|---|---|---|---|---|---|---|---|---|---|
| Netherlands | 50.2 | 44.7 | 56.0 | 41.2 | 40.3 | 39.0 | 91.4 | 85.0 | 95.0 |
| Belgium | 70.3 | 65.0 | 66.8 | 31.5 | 33.7 | 34.1 | 101.8 | 98.7 | 100.9 |
| Rest of Europe | 44.1 | 46.8 | 51.5 | 44.8 | 41.3 | 41.8 | 88.9 | 88.1 | 93.3 |
| North America | 65.7 | 59.2 | 59.7 | 28.5 | 29.9 | 29.4 | 94.2 | 89.1 | 89.1 |
| Latin America | 81.6 | 74.2 | 75.8 | 27.3 | 26.8 | 28.4 | 108.9 | 101.0 | 104.2 |
| Asia | 50.1 | 50.2 | 52.5 | 42.7 | 40.7 | 40.3 | 92.8 | 90.9 | 92.8 |
| Other | 144.3 | 60.1 | 119.7 | 18.7 | –36.4 | 14.6 | 163.0 | 23.7 | 134.3 |
| Total | 65.3 | 58.6 | 62.7 | 31.8 | 31.8 | 31.9 | 97.1 | 90.4 | 94.6 |
The claims ratio is the claims, including claims handling expenses, expressed as a percentage of net earned premiums. The expense ratio is the costs expressed as a percentage of net premiums written. The claims ratio and the expense ratio together form the combined ratio. A combined ratio of more than 100% does not necessarily mean that there is a loss on non-life insurance policies, because the result also includes the allocated investment income.
