Allianz acquisition bolsters ING Q2 growth

The December acquisition of Allianz Canada has bolstered ING Canada Inc.’s second quarter profits by 30% to reach $223.6 million, or $1.67 a share compared to $172.4 million or $1.84 per share the same time last year.The Company’s second quarter revenue rose 23.4% to $1.11 billion. The purchase of the Canadian company from Munich’s Allianz increased ING Canada’s premiums 15% to reach $955.8 million. Similarly moving in an upward angle is the Company’s insurance-based income, which saw a rise of 3% to reach $179.8 million.According to ING Canada, improvements are a result of an increase in personal auto due to “continuing low claims frequencies, favourable reserve developments and the positive contribution of industry pools. Consumers also continued to benefit from lower automobile premiums with an average 8.4% rate reduction so far this year."ING also says that regardless or the claims incurred as a result of the June storms in Alberta, their personal and commercial insurance results remained strong.However, the Company adds that sales will not necessarily "`remain at the favorable levels experienced in 2004 and thus far in 2005." The reasoning behind this statement is that the Company predicts the industry’s growth over the next two years will be below “historical levels."