ING Canada’s net income increases 17.3%

ING Canada Inc. (TSX: IIC.LV) reported a net income of CD$185.9 million in 2006 Q1, a 17.3% increase over the CD$158.5 million it reported in 2005 Q1.

The company’s revenue increased to CD$1.13 billion, up 3.2% from CD$1.098 billion in the comparable quarter of 2005.

Claude Dussault, president and CEO of ING Canada, said the company’s investment results improved as a result of favorable fixed income and equity market gains.

“Our underwriting results benefited from improvements in claims frequency and severity,” Dussault said in a press release. “And although prior year claims development was less favorable compared to last year, it was once again strongly positive in the quarter. In addition, our total number of insured risks continued to increase, mitigating the impact of reductions in insurance rates.”

ING Canada said it anticipates top-line growth for the property and casualty insurance industry will remain below historical levels for 2006. Underwriting may be a cause of the depletion. The company also said commercial insurance will remain competitive. “While prices are softening, returns are expected to remain above historical levels,” the company said in a release.