Insurance Europe
Solid performance with robust value creation
Key points
- Solid financial performance in a challenging environment
- Robust value creation in Central Europe accentuated by successful start of Romanian pension fund
- Strong distribution footprint in mature Benelux market provides a competitive edge
- Active capital management increases capital efficiency
Insurance Europe is an important profit and value contributor to ING Group. It showed a solid financial performance in 2007, by improving efficiency and optimising distribution channels in the Benelux, by accelerating growth in Central Europe and by reinforcing ING’s position as a specialist provider of investments and retirement services across Europe.
Profit and loss account (underlying)
| in EUR million | 2007 | 2006 | change |
|---|---|---|---|
| Premium income | 10,253 | 9,854 | 4.0% |
| Operating expenses | 1,726 | 1,702 | 1.4% |
| Underlying profit before tax | 1,840 | 2,249 | –18.2% |
| Total profit before tax* | 2,300 | 2,362 | –2.6% |
* Total profit before tax is defined as profit before tax including divestments and special items.
Key figures
| 2007 | 2006 | |
|---|---|---|
| Value of new life business (EUR million) | 400 | 219 |
| Internal rate of return | 15.8% | 14.9% |
| Embedded value of life business (EUR million) | 14,156 | 16,103 |
| Economic capital (EUR billion) | 5.9 | 5.9 |
UNDERLYING PROFIT BEFORE TAX
in percentages
GEOGRAPHICAL BREAKDOWN OF PREMIUM INCOME
in percentages
* Bulgaria, the Czech Republic, Greece, Hungary, Poland, Romania, Russia, the Slovak Republic and Spain.
