Insurance Americas Focus on long-term opportunities
Key points
- United States results significantly affected by unprecedented downturn in markets
- CitiStreet acquisition boosts Retirement Services business
- Shift towards traditional insurance lifts sales
- Top-line growth in Latin America solid but returns lower
- Canada weathers turmoil reasonably well
Insurance Americas results were significantly affected by the global financial turmoil, which resulted in substantial credit and investment-related losses together with lower sales of equity-linked products. The CitiStreet acquisition has given Retirement Services in the US a robust platform for further growth. Sales in Latin America remained constant, while returns were lower and Canada produced firm results given the challenging market circumstances.
Profit and loss account (underlying)
| in EUR million | 2008 | 2007 | change |
|---|---|---|---|
| Premium income | 21,887 | 22,126 | –1.1% |
| Operating expenses | 2,340 | 2,272 | 3.0% |
| Underlying result before tax | –534 | 2,062 | –125.9% |
| Total result before tax* | –589 | 2,152 | –127.4% |
- *
- Total result before tax is defined as underlying result before tax including divestments and special items.
Key figures
| 2008 | 2007 | |
|---|---|---|
| Value of new life business (EUR million) | 304 | 270 |
| Internal rate of return | 12.6% | 11.8% |
| New sales (EUR million) | 3,503 | 3,671 |
| Economic Capital (EUR billion) | 6.0 | 6.5 |
- *
- Excludes ING's joint venture in Brazil because it is a minority interest.
