ING Canada Sees Storms Impact Profits

ING Canada Inc. reported net operating income of $70.2 million or $0.56 per share for the quarter ended March 31, 2008 down from $112.8 million or $0.84 per share recorded in the same quarter of last year as a result of the severe storms that hit Central Canada over the winter months.

Net income declined to $23.0 million or $0.19 per share down from $126.2 million or $0.95 per share last year as a result of lower operating income and declines in equity markets. Direct premiums written increased in the quarter to $860.3 million, a 1.7% improvement after adjusting for industry pools.

Return on equity for the last 12 months was 13.0%ING Canada declared a quarterly dividend of 31 cents per share on its outstanding common shares. The dividend will be payable on June 30 to shareholders of record on June 16. Since announcing its normal course issuer bid on Feb. 20, the company has acquired for cancellation as of April 30, 1.065 million shares for $40.0 million. These purchases are equivalent to 17.1% of the planned buyback of 6.2 million shares.

"The harsh winter conditions during the first three months of the year adversely impacted an otherwise solid operating performance," said CEO Charles Brindamour. "Our commercial insurance profitability improved significantly and our current year automobile insurance results remained stable despite the difficult driving conditions resulting from the weather conditions in Quebec and Ontario. However, numerous storms and near-record snow falls in Central Canada resulted in a loss on our home insurance activities. 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."