Insurance Americas
Making it easier to do business with us
Key points
- Pre-tax profit up for fifth consecutive year
- US records solid results under challenging conditions
- Leading positions established in Latin America
- Growth to be driven organically but also supported through acquisitions
Insurance Americas achieved growth in pre-tax profit and value of new business in 2007 for the fifth consecutive year, despite challenging market conditions. This strong performance was led by better results across all business lines in the US, and by very good results in Latin America life insurance. During the year, Insurance Americas continued to hone its strategy, focusing resources on higher-growth markets including those for investment products, life insurance and retirement services in the US and Latin America. Through the purchase of pension businesses in Latin America, ING has established a market-leading position to further expand its activities in the region.
Profit and loss account (underlying)
| in EUR million | 2007 | 2006 | change |
|---|---|---|---|
| Premium income | 23,537 | 24,118 | –2.4% |
| Operating expenses | 2,519 | 2,490 | 1.2% |
| Underlying profit before tax | 2,059 | 1,992 | 3.4% |
| Total profit before tax* | 2,152 | 1,992 | 8.0% |
* Total profit before tax is defined as profit before tax including divestments and special items.
Key figures
| in EUR million | 2007 | 2006 |
|---|---|---|
| Value of new life business (EUR million) | 270 | 167 |
| Internal rate of return | 11.8% | 10.3% |
| Embedded value of life business (EUR million) | 10,633 | 10,272 |
| Economic capital (EUR billion) | 6.5 | 6.0 |
UNDERLYING PROFIT BEFORE TAX
in percentages
GEOGRAPHICAL BREAKDOWN OF PREMIUM INCOME
in percentages
* Mexico, Chile and Peru; not including ING’s joint venture in Brazil because it is a minority interest.
