ING Canada has reported a profit of Cdn$109.4 million for 2006 Q4, down from Cdn$196.9 million reported in 2005 Q4.
The drop in net income was driven by lower underwriting income, lower realized investment gains and higher income taxes, the company noted in a press release.
Net income for the full year 2006 was Cdn$658.1 million, compared to Cdn$781.8 million in 2005.
Claude Dussault, president and CEO of ING Canada, commented: “Overall, our insurance businesses performed well throughout 2006, although profitability for the quarter reflects lower underwriting results and a decrease in realized investment gains.
“Underwriting results for [2006 Q4] were adversely affected by weather-related catastrophes and lower favourable prior year claims development.”
According to ING, several key factors will affect the property and casualty insurance industry in 2007. Top line growth for the property and casualty insurance industry will continue to remain below historical levels, the company predicted. On the other hand, the company believes underwriting results should continue to exceed historical averages.