ING Canada earnings hit by home insurance losses
Last Updated: Wednesday, May 14, 2008 | 4:15 PM ET
CBC News
Shares of ING Canada Inc. traded down three per cent on Wednesday after the company reported a sharply lower first-quarter profit.
The company, which is the Canadian arm of ING Groep NV of the Netherlands, said its profit slipped to $23 million, or 19 cents a share, from $126.2 million, or 95 cents a share, a year earlier.
ING also said net losses on its invested assets amounted to $25.8 million during the most recent quarter, down from a gain of $26.1 million from the same period last year, as a result of losses mostly on its equity portfolio.
The company said its commercial insurance profits improved and its auto insurance results were stable despite the winter weather conditions in Ontario and Quebec.
"However, numerous storms and near-record snow falls in Central Canada resulted in a loss on our home insurance activities," said Charles Brindamour, ING Canada's president and CEO.
"While the industry's loss ratios are usually higher during the first quarter, this year's weather conditions had a more severe impact than usual," he said in a news release.
Investors responded by sending shares of the company down $1.30 to finish at $40.11 on the TSX.
ING said its direct premiums written in the first quarter were $860.3 million, up from $846.3 million a year ago.
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