Slide 1: 2007 Second Quarter Financial and Operating Results
2007 Second Quarter Financial and Operating Results August 8, 2007
Slide 2: Forward-Looking Statement Disclaimer
Forward-Looking Statement Disclaimer Certain of the statements contained in this presentation about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward looking stateme
Slide 3: Presenters: Dussault, Brindamour, Tullis
Claude Dussault, President & Chief Executive Officer Charles Brindamour, Chief Operating Officer Mark Tullis, Chief Financial Officer 3
Slide 4: 2007 Q2 Highlights
2007 Q2 Highlights Financial Summary Q2 07 Q2 06 Change Direct premiums written (excluding pools, in millions) $1,209.8 $1,166.4 3.7% Written insured risks (in thousands) 1,399.7 1,356.2 3.2% Net income (in millions) $ 194.3 $ 206.0 (5.7)% Net operating income (in millions) $ 158.7 $ 182.6 (13.1)% E
Slide 5: Income Before Income Taxes - Reconciliation
Income Before Income Taxes - Reconciliation (in millions) 2006 Q2 Income before income taxes $295.7 Lower favourable prior year claims development $ (1.9) Current accident year: Higher losses from catastrophes (15.3) Lower results from Facility Association (11.0) Lower underwriting income (45.2) Cha
Slide 6: Direct Premiums Written
1) Direct Premiums Written Quarterly Annually (in millions) (in millions) $3,906 $3,994 $1,400 $1,210 $4,000 $1,168 $1,166 $3,293 $3,501 $954 $1,006 $1,050 $3,000 +2.3% +3.7% $700 $2,000 $350 $1,000 $0 $0 Q2/03 Q2/04 Q2/05 Q2/06 Q2/07 2003 2004 2005 2006 Strong growth in direct premiums written in t
Slide 7: Direct Premiums Written – by Lines
1) Direct Premiums Written – by Lines Personal Lines Commercial Lines (in millions) (in millions) $3,000 $2,811 $1,400 $2,657 $1,249 $1,162 $1,183 $2,500 $2,339 $1,200 $1,097 $2,196 $1,000 $2,000 $800 $1,500 +6.5% $600 -3.1% $825 $879 $1,000 $400 $341 $331 $500 $200 $- $- 2003 2004 2005 2006 Q2/06 Q
Slide 8: Invested Assets Yield
1) Invested Assets Yield 5.9% 6% 2) 5.3% 5.1% 5.2% 4.9% 4.9% 5.1% 4.8% 4% Cost-based yield Market-based yield 2% 0% 3) 4) 2003 2004 2005 2006 Q2/06 Q2/07 Invested assets yield increased due to higher dividend and interest income. 1) Pre-tax. 2) Calculation based on adjusted book value reflecting Jan
Slide 9: Sources of Earnings
Sources of Earnings (in millions) $800 $781.8 Net gains on invested assets $169.5 $658.1 and other gains $624.2 Net operating income $600 $91.9 $127.5 $400 $612.3 $532.3 $530.6 $206.0 $194.3 $200 $150.5 $23.4 $35.6 $6.5 $144.0 $182.6 $158.7 $0 2003 2004 2005 2006 Q2/06 Q2/07 Higher gains on invested
Slide 10: Net Underwriting Income - by Lines
Net Underwriting Income - by Lines Personal Lines Commercial Lines (in millions) (in millions) $200 $500 $162 $156 $160 $382 $400 $131 $339 $120 $300 $242 $87 $80 $64 $200 $102 $42 $100 $40 $50 $- $- 2003 2004 2005 2006 Q2/06 Q2/07 2003 2004 2005 2006 Q2/06 Q2/07 -$100 -$36 Underwriting income in pe
Slide 11: Return on Equity
1) Return on Equity 50% 40.9% 40% 31.6% 30% 20.8% 20% 16.5% 18.3% 10% 0% 2003 2004 2005 2006 Q2/07 Return on equity remained healthy for the twelve months ended June 2007. The share buyback in the first quarter had a positive impact on return on equity. 1) Net income over the last 12 months divided
Slide 12: Coming: Q3 Earnings Conference Call, November 7, 2007
Coming: November 7, 2007 at 10:00 a.m. Q3 07 Earnings Conference Call www.ingcanada.com