ING Australia posts strong profit and sales

ING Australia has posted a 2005 after tax profit of $306 million, a 15% increase on the comparable 2004 result.

Net income increased 7% to $627 million, as a result of growing funds under management and life insurance underwriting profit. A profit of $55 million was booked on the sale of the New Zealand business into a separate joint venture. 

The good momentum in the underlying operations was offset by the loss of concessional taxation for life insurance earnings and increased interest costs. There was also increased expenditure to improve legacy products and systems.

Total retail funds under management grew 13% to $32.8 billion.

Total sales of investment and superannuation products in Australia were $6.1 billion, a 24% increase on 2004.  Highlights included a 33% increase to $3.367 billion for the flagship masterfund OneAnswer and a 25% increase to $1.738 billion for employer superannuation.  Total life risk sales increased 3% to $80 million and direct insurances were up 22% to $169 million.
 
CEO of ING Australia, Paul Bedbrook, said:

“All of our key business lines – personal investments, employer superannuation, life risk and direct insurances - have performed well in terms of sales and operational profit. 

“The maturing partnership between ING and ANZ is continuing to realise its potential in servicing ANZ’s broad customer base and distribution networks.

“We have invested heavily in upgrading our key product platforms, taking our excellent OptiMix multi-manager offering to a broader market and launching our innovative new OneCare life risk range in late 2005, which is already leading to record business in this key growth sector.

“Throughout 2005 we made great progress in streamlining legal entities, systems, processes and products to improve efficiency and customer service.  Substantial investment was also made to improve administration efficiency and customer service,” Mr Bedbrook added.

“2005 was a year in which ING Australia consolidated its position as one of Australia’s major wealth managers and insurers.  We maintained our strong growth momentum, simplified our operations, upgraded our product offerings, improved operational effectiveness and continued to develop a strong performance and service culture.  

“On the fifth anniversary of our brand change to ING we continue to have one of the strongest brands in the market for wealth management and protection.  This is a wonderful business asset in a market based on trust and expertise.”

  (The above profit results are unaudited, with 2004 comparatives restated on a consistent basis to 2005.)