ING Canada says Allianz acquisition boosts Q4 results

ING Canada Inc. (TSX: IIC.LV) reported net income of Cdn$196.9 million for the quarter ended Dec. 31, 2005 up 13.7% from Cdn$173.1 million in the same period of the preceding year. Revenues for the fourth quarter also increased to Cdn$1.1 billion a 10.6% increase from Cdn$1 billion in the corresponding quarter of 2004.For the year 2005, net income amounted to Cdn$781.8 million up 25.2% from Cdn$624.2 million in the previous year. Revenues in 2005 increased to Cdn$4.4 billion, up 17.6% from the Cdn$3.8 billion recorded in 2004. Claude Dussault, the president and CEO of ING Canada, commented: “The fourth quarter capped another year of exceptional results for ING Canada. Revenue growth resulting from our acquisition of Allianz Canada, combined with excellent underwriting and investment performance, allowed us to achieve our best year on record.”Despite increases in the severity of both personal property and commercial insurance claims, reductions in automobile insurance premiums and a softer pricing environment in commercial insurance, we continued to have strong underwriting results. “Our numerous initiatives to improve our value to customers and brokers and build long-term, sustainable growth resulted in an increase in the number of risks we insure, which is a key measure of organic growth.”Direct premiums written in 2005 increased by Cdn$241.7 million or, 10%. During the fourth quarter of 2005, they increased by 6.4%, to Cdn$35.7 million.”The increase, for the quarter and the whole year, was mainly attributable to the acquisition of Allianz Canada,” the company said in a press release. “Through 2005, the increase in the growth of total direct written premiums was constrained by rate reductions in personal automobile insurance and lower premiums from industry pools, as well as a softening of pricing conditions in commercial insurance.”