ING Canada looking to expand

Following its recent acquisition of Allianz, ING Canada is seeking further opportunities to expand, ING Canada president and CEO Claude Dussault told an annual general meeting of the company’s shareholders recently.

“With the acquisition of Allianz, ING Canada solidified its leading share of the property and casualty market,” Dussault said in the text of a speech delivered during the company’s May 1, 2006 AGM. “The industry remains highly fragmented. The top five companies have an estimated 36% share of the market, with the remainder dispersed among 100 insurance groups. When compared to other financial services such as banking and life insurance, we believe there is considerable room in our industry for consolidation.

“As part of our medium and long-term growth plan, we intend to be an acquirer and play a role in the consolidation process, in a way that would create value for shareholders.”

Dussault made his remarks in the context of making observations about the company’s 2005 financial performance. He noted ING Canada’s combined ratio in 2005 of 86% matched that of the company’s combined ratio in 2004. The company’s ROE in 2005 was 31.6%, which Dussault described as “slightly below the level of 2004,” but “very strong and significantly higher than average historical levels.”

The strength of ING Canada’s auto insurance portfolio offset higher-then-usual property claims resulting from increased storm activity, Dussault said.