Capital management
AVAILABLE FINANCIAL RESOURCES (AFR)
ING Group
AFR ING Group is computed as follows:
Available Financial Resources – ING Group
| 2007 | 2006 | |
|---|---|---|
| Total AFR Bank and Insurance | 54,443 | 52,984 |
| less Core debt Group(1) | 4,728 | 4,210 |
| Total ING Group AFR | 49,715 | 48,774 |
(1) Investments in subsidiaries less equity (including hybrid capital) of the Group holding company. This net debt position is provided as equity to ING Insurance and ING Bank.
ING Insurance
AFR insurance is computed as follows:
Available Financial Resources – ING Insurance
| 2007 | 2006 | |
|---|---|---|
| IFRS Equity(1) | 16,835 | 21,673 |
| Plus hybrid capital | 2,202 | 1,665 |
| Plus Mark-to-Market and tax adjustments | 3,673 | 3,862 |
| Total ING Insurance AFR | 22,710 | 27,200 |
(1) IFRS equity excluding goodwill. Goodwill amounted to EUR 1,076 million at 31 December 2007 (2006: EUR 245 million).
ING Bank
Available Financial Resources – ING Bank
| 2007 | 2006 | |
|---|---|---|
| Total ING Bank AFR | 31,733 | 25,784 |
Beginning in 2007, the AFR mainly constitutes of Tier-1 capital plus the revaluation reserve for equity securities, less the difference between expected loss and loan loss provisions. Until 31 December 2006 AFR equalled Tier-1 capital. The revaluation reserve for equity securities amounted to EUR 2,952 million at 31 December 2007 (2006: EUR 1,256 million).