SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 6-K

ING Groep N.V.

Amstelveenseweg 500

1081-KL Amsterdam

The Netherlands

     Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ       Form 40-F o

     Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T rule 101(b)(1):          

     Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T rule 101(b)(7):          

     Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o      No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b).

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-130040) OF ING GROEP N.V. AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

 

 

This Report contains a copy of the following:

(1)

The Press Release issued on February 15, 2007.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		ING Groep N.V.
		(Registrant)
		By:		/s/ H. van Barneveld
				H. van Barneveld
				General Manager Corporate Control & Finance
		By:		/s/ C. Blokbergen
				C. Blokbergen
				Corporate Legal Department
				Head Legal Department

Dated: February 15, 2007

PRESS RELEASE

Amsterdam - 15 February 2007

ING posts record results: underlying net profit up 24.3% in 2006 to EUR 7,750 million

•

Results demonstrate the solid earnings capacity of ING’s business portfolio

	-		4th-quarter underlying net profit rises 37.4% to record EUR 2,124 million
	-		Net inflow of EUR 43.8 billion in 2006 brings assets under management to EUR 600.0 billion at year-end
	-		Full-year net profit increases 6.7% to EUR 7,692 million, or EUR 3.57 per share
	-		Total dividend proposed at EUR 1.32 per share, up 12% from EUR 1.18 in 2005

•

Strong momentum continues at ING’s three key growth engines in 4th quarter

	-		Life insurance in developing markets post 23.5% increase in sales to EUR 530 million
	-		ING Direct adds EUR 5.4 billion in mortgages and maintains level of profitability in challenging environment
	-		Retirement Services accumulation product sales in the U.S. increase 21.7% in fourth quarter

•

Strategic Focus for 2007: emphasise growth while maintaining high returns

	-		Returns are at attractive levels in all lines of business, with a RAROC of 20.4% and IRR at 13.3%
	-		Priority for 2007 is continued focus on profitable growth across all six business lines
	-		Continued attention for expense control while investing in growth opportunities

Chairman’s Statement

“Over the past three years we have consistently focused on growing our businesses, increasing returns, and improving the execution of the business fundamentals in order to create more value for our shareholders. Our results for 2006 show that this strategy continues to pay off,” said Michel Tilmant, Chairman of ING Group. “We have improved returns in all of our business lines by releasing capital from divested businesses and investing where we can generate growth at solid returns. Our growth engines continue to show strong business momentum. We have kept costs under control while investing in growth opportunities, improving operations in mature businesses, and strengthening compliance overall.”

“Our strong profit growth in 2006 demonstrates the solid earnings capacity of ING’s portfolio of businesses. While the current interest rate environment is challenging, particularly for our banking businesses, the interest margin stabilised in the fourth quarter. At the same time we have benefited from rallying equity and real estate markets, a benign credit environment, a favourable underwriting cycle in non-life insurance and lower taxes. The bulk of our businesses have shown a strong performance, although Japan and the U.S. individual life business require management attention, and we are actively addressing those.”

“Against that backdrop, ING produced record earnings. Our capital position is strong, allowing ING to raise the annual dividend by 12%, providing an attractive yield to our investors while retaining EUR 4.8 billion to invest in the continued growth of our businesses.”

“With returns at attractive levels, ING will emphasise growth in 2007 by seeking profitable growth across all six business lines. Our three growth engines — life insurance in developing markets, retirement services and ING Direct — will continue to be key drivers of growth. In addition, we will invest in new greenfields to create the next generation of growth engines.”

“In mature markets we also enjoy businesses with strong profitable growth segments, such as savings and mortgages, private banking, ING Real Estate and leasing. We will further leverage our strong position to achieve growth by sharpening our focus on the customer, enhancing product innovation and growing market share. At the same time we will work to improve execution, including efficiency, risk and compliance.”

“Looking forward, risk costs and non-life claims will trend gradually to more normalised levels, however we do not anticipate a significant shift in the market environment over the coming period. We are confident that ING is well positioned through our portfolio of businesses to capture growth opportunities and continue to create value for our shareholders.”

Underlying profit excludes divestments and special items as specified in Appendix 2.
P&L figures compare 4Q2006 with 4Q2005. Returns such as RAROC and IRR are calculated on a full-year basis.

Contacts

Media relations
+31 20 541 6522

Press Conference
15 February, 9:30 a.m. CET
ING House, Amsterdam
Webcast www.ing.com

Investor relations
+31 20 541 5571

Analyst Presentation
15 February, 11:15 a.m. CET
ING House, Amsterdam
Webcast www.ing.com

Analyst Conference Call
15 February, 4 p.m. CET
Listen only:

NL +31 20 796 5332
UK +44 20 8515 2303
US +1 303 262 2140

Analyst Presentation

1

ING GROUP

ING Group: Key Figures

		Quarterly Results																				Full Year
In EUR million		4Q2006				4Q2005				Change				3Q2006				Change				FY2006				FY2005				Change
Underlying1 profit before tax:
Insurance Europe			641				561				14.3	%			540				18.7	%			2,328				2,021				15.2	%
Insurance Americas			539				424				27.1	%			512				5.3	%			1,992				1,979				0.7	%
Insurance Asia/Pacific			140				112				25.0	%			168				-16.7	%			621				447				38.9	%
Corporate Line Insurance			20				-75								-195								-55				-472
Underlying profit before tax from Insurance			1,340				1,022				31.1	%			1,025				30.7	%			4,886				3,975				22.9	%
Wholesale Banking			546				492				1 1 .0	%			527				3.6	%			2,525				2,299				9.8	%
Retail Banking			441				506				-12.8	%			473				-6.8	%			1,932				1,815				6.4	%
ING Direct			183				184				-0.5	%			175				4.6	%			717				617				16.2	%
Corporate Line Banking			-14				-64								-43								-102				-177
Underlying profit before tax from Banking			1,156				1,118				3.4	%			1,132				2.1	%			5,072				4,554				11.4	%
Underlying profit before tax			2,496				2,140				16.6	%			2,157				15.7	%			9,958				8,529				16.8	%
Taxation			287				486				-40.9	%			427				-32.8	%			1,872				1,997				-6.3	%
Profit before minority interests			2,209				1,654				33.6	%			1,730				27.7	%			8,086				6,532				23.8	%
Minority interests			85				108				-21.3	%			76				1 1 .8	%			336				298				12.8	%
Underlying net profit			2,124				1,546				37.4	%			1,654				28.4	%			7,750				6,234				24.3	%
Net gains/losses on divestments			-23				18								-83								-85				414
Net profit from divested units							-2																27				-21
Special items after tax							278																				583
Net profit (attributable to shareholders)			2,101				1,840				14.2	%			1,571				33.7	%			7,692				7,210				6.7	%
Earnings per share (in EUR)			0.98				0.85				15.3	%			0.73				34.2	%			3.57				3.32				7.5	%
Key Figures
Net return on equity																							23.5	%			26.6	%
Assets under management (end of period)			600,000				547,400				9.6	%			569,300				5.4	%			600,000				547,400				9.6	%
Total staff (FTEs end of period)			119,801				116,614				2.7	%			120,424				-0.5	%			119,801				116,614				2.7	%

1.

Underlying profit before tax and underlying net profit are non-GAAP measures for profit excluding divestments and special items as specified in Appendix 2

Earnings Analysis: Fourth Quarter

ING posted record earnings in the fourth quarter, driven by a strong underlying performance and a lower tax rate. Underlying net profit was up 37.4% to EUR 2,124 million, and underlying profit before tax rose 16.6% to EUR 2,496 million.

Growth was led by strong results from insurance, where underlying profit before tax rose 31.1 %. Results were supported by growth in assets under management in the life business and favourable underwriting experience in non-life. Profit from Insurance Americas rose 27.1 % as strong equity markets boosted results in retirement services and variable annuities, while the non-life business in Latin America showed a sharp improvement. Insurance Asia/Pacific posted a 25.0% increase in profit, driven by strong sales in South Korea and asset growth in Japan. Profit from Insurance Europe was up 14.3%, lifted by favourable underwriting results in the Dutch non-life business and growth in Central Europe.

At the banking business, total underlying profit before tax was up 3.4%. Strong volume growth helped offset the impact of flat yield curves, and the interest margin stabilised. Risk costs increased from historic lows. Expenses remained under control, despite one-off items in the fourth quarter both years. Wholesale Banking posted an 11.0% increase in profit driven by ING Real Estate. Retail Banking showed a decline of 12.8% reflecting higher incidental expenses. Excluding those items, profit from Retail Banking was up 9.0% as continued growth more than compensated for the impact of flat yield curves. ING Direct’s profit was stable at EUR 183 million as commercial growth offset the impact of flat yield curves.

Underlying net profit growth was supported by a lower effective tax rate of 11.5% in the fourth quarter due to tax-exempt income from equity investments, releases of tax provisions and a reduction of corporate income tax rates. The low effective tax rate in the fourth quarter brought the rate for the full year down to 18.8%, below the expected range of 20-25%.

Net profit, including the impact of divestments and special items, rose 14.2% to EUR 2,101 million, or EUR 0.98 per share. The divestment of Degussa Bank resulted in a net loss of EUR 23 million in the fourth quarter of 2006, while the fourth quarter of 2005 included a net gain of EUR 18 million from divestments, a loss of EUR 2 million from divested units and EUR 278 million from the release of tax provisions and the establishment of a tax asset.

Contrary to the third quarter, results in the fourth quarter were positively impacted by a EUR 97 million revaluation of strategic derivatives for which hedge accounting is not applied. That compares with a negative revaluation of EUR 85 million in the third quarter, when interest rates declined. The EUR 182 million swing contributed to the increase in earnings from the third quarter to the fourth, when underlying net profit rose 28.4%, or by EUR 470 million, to EUR 2,124 million. Compared with the fourth quarter of 2005, the revaluation of derivatives was EUR 37 million higher.

KPIs: Growth

•		ING Direct adds EUR 5.4 billion in mortgages in 4Q
•		New sales (APE) from developing markets up 23.5%
•		Retirement services accumulation sales increased 21.7%

ING’s three key growth engines continued to show strong business momentum in the fourth quarter. ING Direct remained focused on expanding its mortgage business in the current interest rate environment. In the fourth quarter ING Direct added EUR 5.4 billion in new mortgages, excluding currency impacts and the sale of Degussa Bank, bringing the total portfolio to EUR 69.0 billion. Funds entrusted showed a net outflow of EUR 0.4 billion as ING Direct balanced growth with profitability, notably in the U.K. Off-balance sheet funds increased by EUR 1.4 billion as some customers shifted from savings to mutual funds. In the U.S., ING Direct continued to expand its geographical footprint with launches in Atlanta in November and Miami in January 2007. The life insurance businesses in developing markets showed strong sales with annualised premium equivalent (APE) up 23.5% to EUR 530 million. That was driven by sales of single-premium products, which almost doubled to EUR 456 million, as new unit-linked products were introduced in Central Europe and Asia. Sales of U.S. retirement services accumulation products rose 21.7% and variable annuity sales were up 15.2% as the U.S. business continues to focus on meeting the needs of baby boomers as they reach retirement.

KPIs: Returns

•		Banking RAROC rises to 20.4% from 19.1%
•		IRR on new life sales increases slightly to 13.3%
•		VNB declines due in part to increase in discount rate

Margins remained strong as ING focuses on balancing growth and returns to maximise value creation. The risk-adjusted return on capital after tax at the banking businesses improved to 20.4% in 2006 from 19.1 % driven by ING Real Estate. The internal rate of return on new life insurance sales improved slightly to 13.3%. The value of new life business declined in the fourth quarter, due in part to a retroactive increase in the discount rates to reflect higher interest rates. That had a negative impact of EUR 42 million on the full-year value of new business, which was taken as an adjustment in the fourth quarter. Excluding that change, the value of new business on a normalised basis was down 23.8% to EUR 170 million, impacted by lower sales in Japan and a delay in regulatory approval requiring the U.S. individual life business to continue holding non-economic regulatory reserves. The core U.S. retirement services and variable annuities businesses as well as the developing markets in Central Europe showed strong growth.

KPIs: Execution

•		Cost/income ratio banking improved in 4Q and full-year
•		Efficiency ratios for life insurance improved slightly
•		Agreements for outsourcing of Ops&IT finalised in 4Q

Improving the execution of the business fundamentals remains a priority for ING, including increasing efficiency, cost control, customer satisfaction, risk and compliance. Operating expenses remained under control in the fourth quarter, despite continued investments in new growth initiatives. Recurring expenses for the Group were up 3.5% in the fourth quarter and 2.4% for the full year, excluding one-off items, currency effects and expenses at the growth businesses of ING Direct, ING Real Estate and Insurance Asia/Pacific. The cost/income ratio of the banking operations improved by 10 basis points in the fourth quarter and by 1.5%-points on a full-year basis, despite EUR 164 million in additional compliance costs in 2006 and investments to grow at ING Real Estate, ING Direct and the Retail Banking activities in developing markets. The project to outsource parts of Operations & IT in the Benelux is on track with all three major outsourcing agreements finalised in the fourth quarter. The IT outsourcing and streamlining initiatives are expected to deliver annual cost savings of EUR 230 million from 2008. On the insurance side, expenses to life premiums improved slightly to 13.26% from 13.28%, while expenses to assets under management improved to 0.75% from 0.82%.

Profit by Business Line: Fourth Quarter

Insurance

Strong equity markets helped drive growth in sales and assets at ING’s life insurance businesses, while the non-life business

continued to benefit from favourable claims experience in most markets. Underlying profit before tax from ING’s insurance businesses rose 31.1% to EUR 1,340 million. Results from life insurance grew 24.5%, led by the U.S., South Korea, Japan and Central Europe. Underlying profit before tax from non-life insurance rose 50.0% to EUR 396 million, driven by releases from insurance provisions and favourable claims experience in the Netherlands as well as a strong improvement in Latin America. Total premium income was down 3.7% to EUR 11,265 million due to currency effects, while the U.S., Central Europe and Asia excluding Japan showed strong growth. Operating expenses remained under control, increasing 1.6%, or 5.1% excluding currencies, reflecting a release of employee benefit provisions in 2005 as well as continued investments to grow the businesses in Asia and Central Europe.

Insurance Europe

Favourable underwriting experience at the Dutch non-life business and strong growth in Central Europe drove underlying profit before tax at Insurance Europe up 14.3% to EUR 641 million. Premium income declined 4.9% reflecting lower group life premiums in the Netherlands, while life premiums in Central & Rest of Europe and non-life premiums in the Netherlands showed strong growth. Expenses were under control, with recurring expenses down 0.3% despite investments to grow the business in Central Europe. Total underlying operating expenses increased 10.9% including a software writedown in the Netherlands in the fourth quarter of 2006 and a release of employee benefit provisions in the fourth quarter of 2005. The value of new business was down 5.3% to EUR 71 million on a normalised basis as a decline in the Netherlands more than offset strong production in Central & Rest of Europe.

Insurance Americas

Higher equity markets drove growth in assets under management and fee income at the U.S. insurance businesses, while the non-life business in Latin America improved compared with the 2005, when results were impacted by hurricane claims in Mexico. That lifted underlying profit before tax from Insurance Americas by 27.1% to EUR 539 million. Premium income increased 7.8% excluding currency effects as all countries reported higher premiums, while operating expenses were flat. Profit in the U.S. rose 31.5%, excluding currency effects and investment-related gains, driven by higher fee income as assets increased. Sales of retirement services asset accumulation products were up21.7% and variable annuity sales increased 15.2%. Profit from the Canadian non-life business declined 29.3% excluding currency effects, due in part to weather-related claims. The value of new life business declined to EUR 19 million on a normalised basis due to regulatory delays which extended the requirement to hold non-economic regulatory reserves in the U.S. individual life business. The normalised value of new business for the U.S. excluding the traditional life business was EUR 39 million in the fourth quarter, while Latin America reported EUR -3 million.

Insurance Asia/Pacific

Higher sales in South Korea and strong growth of assets under management in Japan drove underlying profit before tax from Insurance Asia/Pacific up 25.0% to EUR 140 million. Sales declined in Japan, where the market has become increasingly competitive, leading to a 9.6% decline in life premium income for the region. Excluding Japan, premium income for Asia/Pacific was up 15.9%, driven by growth of 34.4% in South Korea, 28.8% in Australia & New Zealand and 35.9% in Hong Kong. Operating expenses were up 10.7%, reflecting investments to support the growth of the business, particularly in South Korea, India, Malaysia and Thailand. In Taiwan, ING strengthened reserves by EUR 52 million due to the continued low interest rate environment. The reserve adequacy at a 50% confidence level for ING Life Taiwan improved to EUR 298 million from EUR 253 million at the end of September. The value of new business declined 11.1% to EUR 80 million on a normalised basis reflecting lower sales in Japan and regulatory pricing changes in South Korea in April 2006.

Corporate Line Insurance

The Corporate Line Insurance improved to EUR 20 million from EUR -75 million in the fourth quarter of 2005 when results included a loss on the buy-back of legacy debt in the U.S. and lower results from in-house reinsurance following three hurricanes in Mexico. Realised gains on equities reflected in the Corporate Line were slightly lower, with EUR 148 million in the fourth quarter of 2006 and EUR 162 million a year earlier. The revaluation of strategic derivatives used to hedge interest on core debt was a positive EUR 23 million, down from EUR 25 million in the fourth quarter of 2005, but up from a negative revaluation of EUR 70 million in the third quarter when long-term interest rates declined sharply.

Banking

ING’s banking activities continued to show strong growth in savings and mortgages, which helped offset the impact of flat yield curves. Operating expenses were under control, while risk costs increased from historical lows as releases diminish. Underlying profit before tax rose 3.4% to EUR 1,156 million, driven by an 8.8% increase in income, notably from ING Real Estate. Interest income remained stable as strong volume growth offset the impact of flat yield curves. Lending increased by EUR 6.0 billion in the fourth quarter, despite a negative currency impact and the divestment of Degussa Bank. Growth was driven mainly by mortgage lending at ING Direct and the Retail Banking activities in the Netherlands. The total interest margin stabilised in the fourth quarter at 1.05% on an annualised basis, down 1 basis point from the third quarter and 10 basis points from the fourth quarter last year. Income growth was also supported by a EUR 112 million positive revaluation of non-trading derivatives as interest rates increased. Operating expenses were up 4.0% on a recurring basis, excluding additional compliance costs in 2006 and a release of employee benefit provisions in the fourth quarter of 2005. The cost/income ratio improved by 10 basis points to 65.8% in the fourth quarter and declined to 63.6% on a full-year basis despite the incidental costs and investments to support the growth of ING Real Estate and the Retail Banking businesses in developing markets. Loan loss provisions increased to EUR 88 million from EUR 20 million as releases of past provisions continue to diminish. However, at

an annualised 11 basis points of average credit-risk-weighted assets, risk costs remain well below normalised levels and there is no indication of a deterioration in the quality of the credit portfolio. Continued attention for capital allocation and pricing discipline helped push the after-tax risk-adjusted return on capital up to 20.4% from 19.1%.

Wholesale Banking

Strong growth in income, particularly at ING Real Estate drove underlying profit before tax from Wholesale Banking up 11.0% to EUR 546 million. Income rose 15.3% driven by a 50.2% increase at ING Real Estate as well as growth from General Lending and Payments & Cash Management as well as Leasing & Factoring. Recurring expenses were up 7.2%, reflecting investments at ING Real Estate and higher bonuses. Total underlying operating expenses were up 13.2%, including one-off compliance-related costs in 2006 and a release of employee benefit provisions in the fourth quarter of 2005. Wholesale Banking recorded a net addition to the provision of loan losses of EUR 20 million after 7 quarters of net releases as releases from old provisions continue to diminish. Returns increased, driven by ING Real Estate as well as efforts to optimise capital allocation and manage growth in risk-weighted assets within the business line. The risk-adjusted return on capital after tax improved to 20.6% from 17.3%.

Retail Banking

Strong volume growth in savings and mortgages helped offset the impact of flat yield curves at the Retail Banking activities. Underlying profit before tax declined 12.8% to EUR 441 million, reflecting higher one-off expenses. Excluding one-off expenses, operating costs rose 2.0% and profit would have been up 9.0%. Total underlying operating expenses increased 9.5% including EUR 35 million in additional compliance expenses in the fourth quarter of 2006 and a EUR 83 million release of employee benefit provisions a year earlier. Underlying income rose 3.2% driven by volume growth in savings and mortgages and a capital gain in Belgium. The residential mortgage portfolio in the Netherlands grew by EUR 1.6 billion, double the production in the third quarter, driven by the success of Postbank’s ‘budget’ mortgage. Risk costs increased as releases diminish, however there was no sign of a deterioration in the lending portfolio. Pricing discipline helped sustain high returns, with a risk-adjusted return on capital after tax of 32.5% for Retail Banking.

ING Direct

Continued commercial growth at ING Direct offset the impact of flat yield curves and investments to expand the geographical footprint and product range. Underlying profit before tax at ING Direct remained strong at EUR 183 million. The interest margin improved by 2 basis points from the third quarter to 0.87% in the fourth, although it remained below the 0.96% achieved in the fourth quarter of 2005. Nonetheless, total income increased 4.0%. ING Direct continued to focus on growing its mortgage portfolio in the current interest rate environment and production remained strong. It added EUR 5.4 billion in new mortgages in the fourth quarter, excluding currency effects and the sale of Degussa Bank. Another 587,000 new customers were added, supported by the expansion of the U.S. footprint to Chicago in the third quarter and Atlanta in the fourth. Funds entrusted declined by EUR 0.4 billion, driven mainly by transfers to off-balance sheet products and an outflow in the U.K. Off-balance sheet funds entrusted showed strong growth, adding EUR 1.4 billion, as some clients shifted from savings to mutual funds. The risk-adjusted return on capital after tax declined to 11.6%, partially due to higher taxes.

Corporate Line Banking

The Corporate Line Banking recorded a loss of EUR 14 million before tax, compared with a loss of EUR 64 million in the fourth quarter last year. The improvement is mainly caused by a EUR 15 million gain from a FX-hedge, lower interest expenses related to capital management, and a decline in expenses not allocated to the business lines.

Assets under Management

Assets under Management increased by EUR 30.7 billion, or 5.4%, in the fourth quarter to EUR 600.0 billion at the end of 2006. All six business lines contributed to the growth. The increase was driven by a sound net inflow of EUR 12.7 billion as well as EUR 20.6 billion from favourable stock market developments and EUR 4.3 billion from acquisitions. Exchange rates had a negative impact of EUR 6.9 billion. The growth was achieved mainly in the third-party assets which increased by EUR 25.8 billion to EUR 404.5 billion, accounting for 67% of total assets under management. Proprietary assets grew by EUR 4.9 billion to EUR 195.5 billion.

Capital Management

ING’s capital position remained robust in the fourth quarter of 2006. Shareholders’ equity increased to EUR 38.3 billion from EUR 36.7 billion at the end of the third quarter, mainly due to EUR 2.1 billion of net profit generated and an increase in unrealised gains on equity securities. The leverage position of ING Group was reduced from 9.4% to 9.0%, well below the 10% limit. The E.U. capital coverage ratio of ING Insurance increased further to 274% from 256%. The Tier-1 ratio of the Bank increased from 7.48% to 7.63% due to the temporary impact from the acquisition of Summit REIT by ING Real Estate. Standard & Poor’s and Moody’s both maintain a stable outlook on the ratings of ING Group (AA-, Aa3) and ING Insurance was recently one of two European insurers to receive an “excellent” enterprise risk management rating from Standard & Poor’s.

Dividend

At the Annual General Meeting of Shareholders on 24 April 2007, ING will propose a total dividend for 2006 of EUR 1.32 per (depositary receipt for an) ordinary share, up from EUR 1.18 in 2005. Taking into account the interim dividend of EUR 0.59 made payable in August 2006, the final dividend will amount to EUR 0.73 to be paid fully in cash. ING’s shares will be quoted ex-dividend as of 26 April 2007 and the dividend will be made payable on May 3, 2007.

INSURANCE

Insurance: Profit & Loss Account

		Quarterly Results																				Full Year
In EUR million		4Q2006				4Q2005				Change				3Q2006				Change				FY2006				FY2005				Change
Gross premium income			11,265				1 1 ,694				-3.7	%			1 0,992				2.5	%			46,834				45,707				2.5	%
Commission income			418				294				42.2	%			405				3.2	%			1,636				1,346				21.5	%
Direct investment income			2,429				2,296				5.8	%			2,419				0.4	%			9,879				9,237				7.0	%
Realised gains & fair value changes			390				292				33.6	%			286				36.4	%			1,244				1,027				21.1	%
Total investment & other income			2,819				2,588				8.9	%			2,705				4.2	%			11,123				10,264				8.4	%
Total underlying income			14,502				14,576				-0.5	%			14,102				2.8	%			59,593				57,317				4.0	%
Underwriting expenditure			11,518				1 1 ,894				-3.2	%			11,512				0.1	%			48,188				47,059				2.4	%
Operating expenses			1,430				1,407				1.6	%			1,219				17.3	%			5,275				5,174				2.0	%
Other interest expenses			200				246				-18.7	%			347				-42.4	%			1,233				1,099				12.2	%
Other impairments			14				7				100.0	%			-1								11				10				10.0	%
Total underlying expenditure			13,162				13,554				-2.9	%			13,077				0.6	%			54,707				53,342				2.6	%
Underlying profit before tax			1,340				1,022				31.1	%			1,025				30.7	%			4,886				3,975				22.9	%
Taxation			87				229				-62.0	%			146				-40.4	%			683				887				-23.0	%
Profit before minority interests			1,253				793				58.0	%			879				42.5	%			4,203				3,088				36.1	%
Minority interests			70				81				-13.6	%			58				20.7	%			281				254				10.6	%
Underlying net profit			1,183				712				66.2	%			821				44.1	%			3,922				2,834				38.4	%
Net gains/losses on divestments							18																30				21
Net profit from divested units							1																				13
Special items after tax							130																				400
Net profit from Insurance			1,183				861				37.4	%			821				44.1	%			3,952				3,268				20.9	%
Key Figures
Net return on equity																							20.9	%			21.1	%
Embedded value (before dividends)																							29,714				27,586				7.7	%
Value of new life business			128				223				-42.6	%			202				-36.6	%			807				805				0.2	%
Internal rate of return																							13.3	%			13.2	%
Assets under management (end of period)			444,600				416,400				6.8	%			429,900				3.3	%			444,600				416,400				6.8	%
Staff (FTEs end of period)			54,445				52,517				3.7	%			54,671				-0.4	%			54,445				52,517				3.7	%

Earnings Analysis: Fourth Quarter

Strong equity markets helped drive growth in sales and assets at ING’s life insurance businesses, while the non-life businesses continued to benefit from favourable underwriting experience in most markets. Underlying profit before tax from ING’s insurance businesses rose 31.1% to EUR 1,340 million. Results from life insurance grew by 24.5% to EUR 944 million, driven by strong results in the U.S., South Korea, Japan and Central Europe. Profit from non-life insurance rose 50.0% to EUR 396 million driven by releases from insurance provisions and favourable claims experience in the Netherlands as well as a strong improvement in Latin America. In Canada non-life results declined, mainly due to higher weather-related claims.

The low effective tax rate pushed underlying net profit up 66.2% to EUR 1,183 million. Net profit, including the impact of divestments and special items, rose 37.4% to EUR 1,183 million including a realised gain on divestments and a release of tax provisions in the fourth quarter of 2005.

Currency effects had a negative impact on premium income, which declined 3.7% to EUR 11,265. Excluding currencies, premium income was up 1.9% due to growth in Central Europe, the U.S. and South Korea, while premiums in the Netherlands and Japan declined.

Investment and other income rose 8.9% to EUR 2,819 million due to higher realised gains and fair value changes on investments and a moderate increase of direct investment income. Commission income was up 42.2% to EUR 418 million reflecting growth in assets under management particularly in the U.S. and Japan.

Operating expenses rose 1.6%, or 5.1% excluding currency

effects, mainly due to a release of employee benefit provisions in the Netherlands in the fourth quarter of 2005 as well as investments to support growth in Central Europe and Asia.

Life Insurance: Key Figures

In EUR million		4Q2006				4Q2005				Change
Gross premium income			9,825				10,315				-4.8	%
Operating expenses			1,083				1,025				5.7	%
Underlying profit before tax			944				758				24.5	%
Expenses/premiums life insurance1			13.26	%			13.28	%
Expenses/AUM investment products1			0.75	%			0.82	%
Value of new business			128				223				-42.6	%
Normalised value of new business			170				223				-23.8	%
Internal rate of return1			13.3	%			13.2	%
Single premium			6,190				6,762				-8.5	%
Annual premium			982				970				1.2	%
New sales (APE)			1,601				1,647				-2.8	%

1.		Figures are full year

Life insurance

Underlying profit before tax from life insurance rose 24.5% to EUR 944 million, driven by the U.S., South Korea, Japan and Central Europe. Currency effects pushed life premium income down 4.8%, however excluding currency effects life premiums were flat. Operating expenses increased 5.7% reflecting one-off expenses in the Netherlands. Operating expenses as a percentage of assets under management for investment products improved to 0.75% for the full year 2006 from 0.82% in 2005, mainly reflecting the growth of the assets under management. Expenses as a percentage of premiums for traditional life products improved slightly to 13.26% from 13.28% in 2005.

New Business Production

The value of new business declined in the fourth quarter, due in part to a retroactive increase in the discount rates to reflect higher interest rates. That had a negative impact of EUR 42 million on the full-year value of new business, which was taken as an adjustment in the fourth quarter. On a normalised basis, reflecting the approximate value calculated without the fourth quarter adjustment to discount rates, the value of new business was down 23.8% to EUR 170 million. That was due to lower sales in Japan and a delay in regulatory approval requiring the U.S. individual life business to continue holding non-economic regulatory reserves. The core U.S. retirement services and variable annuities businesses as well as the developing markets in Central Europe showed strong growth. The internal rate of return increased slightly to 13.3%.

Non-Life Insurance: Key Figures

In EUR million		4Q2006				4Q2005				Change
Gross premium income			1,440				1,379				4.4	%
Operating expenses			347				382				-9.2	%
Underlying profit before tax			396				264				50.0	%
Claims ratio1			58.7	%			62.7	%
Expense ratio1			31 .8	%			31.9	%
Combined ratio1			90.5	%			94.6	%

1. Figures are full year

Non-life insurance

ING’s non-life insurance businesses continued to benefit from favourable underwriting results in most markets. Underlying profit before tax from non-life insurance rose 50.0% to EUR 396 million driven by releases from insurance provisions and a favourable claims environment in the Netherlands. Results in Latin America also improved strongly from the fourth quarter of 2005, when the Mexican business faced claims from three hurricanes. Underwriting results in Canada deteriorated by 33.7% due to higher claims related to bad weather conditions. Overall the combined ratio improved to 90.5% for full year 2006 from 94.6%. Non-life premium income rose 4.4%, or 10.0% excluding currency effects, driven by the Netherlands and Canada. Operating expenses declined 9.2%, but were flat excluding currency effects.

Focus: 2006 Embedded Value

The embedded value of ING’s life insurance businesses increased 7.7% to EUR 29,714 million in 2006 before EUR 1,994 million in net dividends were paid to ING Group, taking the year-end embedded value to EUR 27,718 million. In addition to the required return of EUR 1,716 million, new business production contributed EUR 807 million in the year while strong investment returns and other financial variances added EUR 1,240 million and the investment return on free surplus added another EUR 968 million. Currency effects had a negative impact of EUR 1,164 million, and a change in economic assumptions had a negative impact of EUR 1,534 million, mainly due to a decrease in the long-term risk free interest rates in Taiwan from 5.75% to 3.93% to bring them more into line with market rates.

The embedded value of the life insurance activities of Insurance Europe increased 15.2% to EUR 17,191 million before dividends, driven by EUR 219 million in new business production as well as favourable equity returns and pension performance. At Insurance Americas, the embedded value rose 2.9% to EUR 11,171 million before dividends, reflecting EUR 167 million in new business written in 2006 as well as positive variances and assumption changes. At Insurance Asia/Pacific, the embedded value declined 24.8% to EUR 1,353 million, reflecting the change in economic assumptions in Taiwan.

For further detail on the embedded value please refer to Appendix 7 of the press release and the full EV report available at www.ing.com.

INSURANCE EUROPE

Insurance Europe: Profit & Loss Account

		Quarterly Results																				Full Year
In EUR million		4Q2006				4Q2005				Change				3Q2006				Change				FY2006				FY2005				Change
Gross premium income			2,521				2,651				-4.9	%			2,348				7.4	%			10,552				10,702				-1.4	%
Commission income			90				90				0.0	%			87				3.4	%			348				304				14.5	%
Direct investment income			1,055				1,045				1.0	%			1,088				-3.0	%			4,302				4,353				-1.2	%
Realised gains & fair value changes			303				205				47.8	%			188				61.2	%			934				665				40.5	%
Total investment & other income			1,358				1,250				8.6	%			1,276				6.4	%			5,236				5,018				4.3	%
Total underlying income			3,969				3,991				-0.6	%			3,711				7.0	%			16,136				16,024				0.7	%
Underwriting expenditure			2,687				2,837				-5.3	%			2,641				1.7	%			11,458				11,644				-1.6	%
Operating expenses			529				477				10.9	%			376				40.7	%			1,805				1,869				-3.4	%
Other interest expenses			109				111				-1.8	%			156				-30.1	%			544				482				12.9	%
Other impairments			3				5				-40.0	%			-2								1				8				-87.5	%
Total underlying expenditure			3,328				3,430				-3.0	%			3,171				5.0	%			13,808				14,003				-1.4	%
Underlying profit before tax			641				561				14.3	%			540				18.7	%			2,328				2,021				15.2	%
- of which Life			413				431				-4.2	%			419				-1.4	%			1,710				1,597				7.1	%
- of which Non-Life			228				130				75.4	%			121				88.4	%			618				424				45.8	%
Key Figuresv
Value of new life business			45				75				-40.0	%			66				-31.8	%			219				226				-3.1	%
Internal rate of return																							14.9	%			14.6	%
Assets under management (end of period)			157,900				145,200				8.7	%			153,000				3.2	%			157,900				145,200				8.7	%
Staff (FTEs end of period)			15,126				15,837				-4.5	%			15,120				0.0	%			15,126				15,837				-4.5	%

Key Performance Indicators

•

Sales in Central & Rest of Europe rise 39.8%

•

IRR on new life business increases to 14.9%

•

Recurring expenses under control

At Insurance Europe, ING is investing for growth in Central Europe while continuing to focus on improving efficiency, increasing bank distribution and maintaining pricing discipline in the competitive Dutch and Belgian markets.

ING’s life insurance and pension businesses in Central & Rest of Europe posted a 39.8% increase in sales (APE) to EUR 116 million in the fourth quarter as the company continues to focus on product innovation, expanding distribution and increasing the productivity of the tied-agent sales forces. Product development was accelerated in 2006 with a total of 30 new products and 26 riders introduced across the region. ING is also investing for long-term growth in new greenfield operations, including Russia and Bulgaria, and is launching pension funds in Romania for the third pillar this year and second pillar next year.

Recurring expenses remained under control, despite investments to grow the business in Central Europe. In the Netherlands, headcount reductions at Nationale-Nederlanden are ahead of plan and cost savings are progressing, however additional investments are being made, due in part to new regulations which came into effect in 2007. That resulted in increased expense assumptions which had a negative impact of EUR 361 million on 2006 embedded value.

The Dutch insurance industry has recently come under criticism from consumer organisations and the Dutch regulator with respect to the level and transparency of costs for universal life insurance products, including those sold by Nationale-Nederlanden and other ING subsidiaries, either directly or through intermediaries. No legal proceedings have yet been instituted against Nationale-Nederlanden or any other ING subsidiaries. Discussions are ongoing between the insurance industry and consumer organisations.

In January, ING announced plans to restructure its Belgian insurance business to focus on bancassurance distribution, and it will seek to divest the broker and employee benefits businesses.

Earnings Analysis: Fourth Quarter

Higher non-life results and a strong investment performance in the Netherlands, as well as continued growth in Central & Rest of Europe, lifted underlying profit before tax at Insurance Europe by 14.3% to EUR 641 million.

Lower premiums in the Dutch group life business led to a 4.9% decline in total premium income, despite higher non-life premi-

Insurance Europe: Life Key Figures

		Total								Netherlands								Belgium								Central & Rest of Europe
In EUR million		4Q2006				4Q2005				4Q2006				4Q2005				4Q2006				4Q2005				4Q2006				4Q2005
Gross premium income			2,195				2,368				1,255				1,502				378				384				562				482
Operating expenses			372				329				271				235				19				20				82				74
Underlying profit before tax			413				431				323				339				22				31				68				61
Expenses/premiums life insurance1			22.50	%			23.38	%			30.17	%			31.24	%			13.48	%			13.85	%			13.22	%			13.08	%
Expenses/AUM investment products’1			0.76	%			0.93	%			0.81	%			1.00	%			0.22	%			0.19	%			0.84	%			1.01	%
Value of new business			45				75				10				29				6				8				29				38
Normalised value of new business			71				75				17				29				8				8				46				38
Internal rate of return1			14.9	%			14.6	%			12.8	%			13.2	%			12.3	%			16.9	%			18.1	%			15.6	%
Single premium			850				745				362				336				223				276				265				133
Annual premium			146				125				41				41				15				15				90				69
New sales (APE)			231				201				78				75				37				43				116				83

ums in the Netherlands and growth in Central & Rest of Europe. Investment and other income rose 8.6% to EUR 1,358 million, mainly due to higher dividends, capital gains on bonds and a EUR 40 million swing in revaluations of real estate and private equity, both at Nationale-Nederlanden and RVS.

Recurring expenses for the region were flat, despite investments to grow the business in Central & Rest of Europe, including start-up costs for greenfield operations in Russia and Bulgaria. Total underlying operating expenses increased 10.9% for the region and 13.1% in the Netherlands, largely due to EUR 33 million in software impairments in the fourth quarter of 2006 and releases of employee benefit provisions in 2005.

Life insurance

Underlying profit before tax from life insurance declined 4.2% to EUR 413 million as lower results in the Netherlands and Belgium more than offset a strong increase in Central Europe. Profit in Belgium was 29.0% lower, mainly due to a change in the commission structure with ING Bank Belgium. The 4.7% decline in the Netherlands was primarily due to the one-off release of technical provisions in 2005 following legal changes and an increase in expenses. That offset higher investment returns, particularly from real estate and private equity revaluations. Life results in Central & Rest of Europe were 11.5% higher, driven by strong growth in assets under management at the pension fund in Poland and strong sales in Greece and Hungary. Life premiums declined 7.3% as declines in the Netherlands and Belgium more than offset a 16.6% increase in Central & Rest of Europe, driven by strong sales in Poland, Hungary and Greece. Operating expenses increased, reflecting further investments and start-up costs for greenfield operations in Bulgaria and Russia.

New business production

The value of new life business declined 5.3% on a normalised basis to EUR 71 million as a lower internal rate of return in the Netherlands due to pricing competition more than offset the impact of strong production in Central & Rest of Europe. Sales (APE) increased 14.9% across the region with the largest gains in Central & Rest of Europe. The internal rate of return rose to 14.9%, driven by an increase in Central Europe.

Insurance Europe: Non-Life Key Figures

		Total								Netherlands								Belgium								Central & Rest of Europe
In EUR million		4Q2006				4Q2005				4Q2006				4Q2005				4Q2006				4Q2005				4Q2006				4Q2005
Gross premium income			326				283				254				200				61				71				11				12
Operating expenses			157				148				136				126				17				17				4				5
Underlying profit before tax			228				130				213				114				12				16				3				0
Claims ratio1			47.8	%			57.6	%			44.7	%			56.0	%			65.0	%			66.8	%			46.8	%			51.3	%
Expense ratio1			39.3	%			38.3	%			40.3	%			39.0	%			33.7	%			34.1	%			41.3	%			41.8	%
Combined ratio1			87.1	%			95.9	%			85.0	%			95.0	%			98.7	%			100.9	%			88.1	%			93.1	%

Non-life insurance

A very strong performance in the Netherlands pushed underlying profit before tax from non-life up 75.4%, driven by favourable claims experience as well as EUR 108 million in releases of insurance provisions, up from EUR 41 million a year earlier. In Belgium, non-life profits declined due to higher claims and a lower reinsurance result. Non-Life premiums increased 15.2%, driven by a 27.0% increase in the Netherlands, mainly due to premium refunds in 2005 in the Loss of Income line after legal changes. Premium income in Belgium declined 14.1%, following the partial sale of its Health portfolio. Operating expenses rose 6.1% overall and 7.9% in the Netherlands, mainly due to software impairments.

INSURANCE AMERICAS

Insurance Americas: Profit & Loss Account

		Quarterly Results																				Full Year
In EUR million		4Q2006				4Q2005				Change				3Q2006				Change				FY2006				FY2005				Change
Gross premium income			5,847				5,875				-0.5	%			5,802				0.8	%			24,118				22,693				6.3	%
Commission income			243				138				76.1	%			247				-1.6	%			984				784				25.5	%
Direct investment income			1,135				1,045				8.6	%			1,094				3.7	%			4,507				4,104				9.8	%
Realised gains & fair value changes			129				-4								35				268.6	%			170				412				-58.7	%
Total investment & other income			1,264				1,041				21.4	%			1,129				12.0	%			4,677				4,516				3.6	%
Total underlying income			7,354				7,054				4.3	%			7,178				2.5	%			29,779				27,993				6.4	%
Underwriting expenditure			6,089				6,046				0.7	%			6,082				0.1	%			24,981				23,536				6.1	%
Operating expenses			621				666				-6.8	%			607				2.3	%			2,490				2,380				4.6	%
Other interest expenses			104				-83								-23								316				97				225.8	%
Other impairments			1				1																				1
Total underlying expenditure			6,815				6,630				2.8	%			6,666				2.2	%			27,787				26,014				6.8	%
Underlying profit before tax			539				424				27.1	%			512				5.3	%			1,992				1,979				0.7	%
- of which Life			413				287				43.9	%			359				15.0	%			1,322				1,248				5.9	%
- of which Non-Life			126				137				-8.0	%			153				-17.6	%			670				731				-8.3	%
Key Figures
Value of new life business			-12				58								43								167				207				-19.3	%
Internal rate of return																							10.3	%			11.1	%
Assets under management (end of period)			202,500				201,700				0.4	%			199,600				1.5	%			202,500				201,700				0.4	%
Staff (FTEs end of period)			28,778				27,824				3.4	%			29,710				-3.1	%			28,778				27,824				3.4	%

Key Performance Indicators

•

Value of new business, IRR impacted by individual life

•

Retirement Services accumulation sales up 21.7%

•

Operating expenses flat excluding currencies

Insurance Americas continues to focus on value creation by delivering top-line growth while maintaining solid returns and expense discipline. In the U.S. the company is positioning itself to better meet the needs of baby boomers as they enter retirement, and in the fourth quarter ING realigned its U.S. businesses, bringing retirement services and annuities together in a new wealth management division. The individual and group life insurance businesses were brought together with reinsurance to better leverage risk management skills across the U.S.

In the fourth quarter, sales of retirement services accumulation products continued to be robust, increasing 21.7%, and variable annuity sales rose 15.2%. On a U.S. reporting basis, sales of these products increased 55.4% and 15.3% respectively. Despite a strong performance from the U.S. wealth management businesses, the value of new business for Insurance Americas declined to EUR 19 million on a normalised basis. Lower sales and the requirement to hold non-economic regulatory reserves in the U.S. individual life business had a negative impact of EUR 17 million. Excluding that impact the value of new business for the U.S. was EUR 39 million. Operating expenses flat excluding currency effects, while premium income rose 7.8%.

Earnings Analysis: Fourth Quarter

Underlying profit before tax increased 27.1 % to EUR 539 million, driven by strong equity markets in the U.S. and an improvement in the Latin American non-life business, which was impacted by hurricane claims in 2005. Excluding EUR 17 million of higher investment-related gains and a EUR 37 million negative impact from currency movements, profit rose 34.3% driven by higher fee income in the U.S. Profit before tax in Canada declined from record 2005 levels as the combined ratio increased by 230 basis points to 89.1%.

Excluding currency effects, premium income at Insurance Americas rose 7.8%, led by higher sales of retirement services accumulation products and variable annuities, while operating expenses were flat.

Life insurance

Life underlying profit before tax rose 43.9% to EUR 413 million, or 56.0% excluding currency impacts. Underlying profit in the U.S. excluding currency effects and EUR 45 million of higher investment-related gains rose 31.5%, led by higher fee income from growth in assets under management. Profit in Latin America rose 63.0% on higher results in Mexico and Chile.

Life premium income increased 8.1% excluding currencies as

Insurance Americas: Life Key Figures

		Total								United States								Latin America
In EUR million		4Q2006				4Q2005				4Q2006				4Q2005				4Q2006				4Q2005
Gross premium income			4,779				4,793				4,612				4,640				167				153
Operating expenses			426				458				374				411				52				47
Underlying profit before tax			413				287				369				260				44				27
Expenses/premiums life insurance1			14.33	%			13.76	%			13.52	%			12.68	%			21.02	%			22.63	%
Expenses/AUM investment products1			0.72	%			0.75	%			0.73	%			0.76	%			0.66	%			0.63	%
Value of new business			-12				58				-3				46				-9				12
Normalised value of new business			19				58				22				46				-3				12
Internal rate of return1			10.3	%			11.1	%			10.3	%			11.0	%			10.5	%			12.6	%
Single premium			4,147				4,411				4,104				4,354				43				57
Annual premium			441				446				338				386				103				60
New sales (APE)			856				888				749				821				107				66

U.S. life premium rose 8.0%, driven by higher sales of retirement services accumulation products and variable annuities. Individual life sales declined due to price increases in universal life which more than offset strong term-life sales.

Premium income in Latin America rose 17.8% excluding currencies, lifted by higher group life sales in Mexico and sales of pension products in Chile and Peru. Operating expenses increased 0.7% excluding currency movements as modestly lower expenses in the U.S. offset increases in Peru and Mexico.

New business production

The value of new life business for Insurance Americas declined to EUR 19 million on a normalised basis, despite a strong performance from the U.S. wealth management businesses. The lower result was due, in part to the continued impact of the pension transfer war in Mexico, and results at the U.S. individual life business, including lower sales. In addition, the optimal solution is not yet in place to address the requirement to hold non-economic regulatory reserves at the U.S. individual life business. Excluding individual life, the value of new business was EUR 39 million for the U.S. businesses and the IRR was 12.0% or 12.8% on a U.S. reporting basis. ING is in the process of obtaining regulatory approval of our solution to the non-economic regulatory reserve issue. When received, it will apply retroactively to 2006 new business, and the benefits, which are estimated to be about EUR 30 million, will be captured in embedded value profit in 2007. The value of new life business in Latin America was EUR -3 million on a normalised basis due to the adverse impact of lapse assumption changes in Mexico reflecting the pension transfer war in 2006.

		Total								Canada								Latin America
In EUR million		4Q2006				4Q2005				4Q2006				4Q2005				4Q2006				4Q2005
Gross premium income			1,068				1,082				649				646				419				436
Operating expenses			195				208				129				131				66				77
Underlying profit before tax			126				137				118				178				8				-41
Claims ratio1			63.9	%			64.3	%			59.2	%			56.3	%			74.2	%			75.8	%
Expense ratio1			28.9	%			29.1	%			29.9	%			30.5	%			26.8	%			28.4	%
Combined ratio1			92.8	%			93.4	%			89.1	%			86.8	%			101.0	%			104.2	%

Non-life insurance

Underlying profit before tax from non-life insurance declined 8.0% to EUR 126 million, including an EUR 11 million negative currency impact. Profit in Canada declined 33.7%, or 29.3% excluding currency effects, to EUR 118 million on lower underwriting income due to weather-related losses and less favourable developments in prior-year reserves. Non-life profit from Latin America was EUR 8 million compared with a loss in the fourth quarter of 2005 when earnings were impacted by three hurricanes in Mexico. Excluding currencies, premium income increased 5.5%, led by a 6.6% increase in Canada as higher sales of auto insurance more than offset the impact of rate reductions. Operating expenses declined 6.3%, or 1.0% excluding currency movements, led by lower expenses in Latin America, largely in Mexico.

INSURANCE ASIA/PACIFIC

Insurance Asia/Pacific: Profit & Loss Account

		Quarterly Results																				Full Year
In EUR million		4Q2006				4Q2005				Change				3Q2006				Change				FY2006				FY2005				Change
Gross premium income			2,856				3,159				-9.6	%			2,869				-0.5	%			12,136				12,286				-1.2	%
Commission income			83				65				27.7	%			69				20.3	%			298				254				17.3	%
Direct investment income			338				173				95.4	%			354				-4.5	%			1,167				903				29.2	%
Realised gains & fair value changes			-138				-48								-56								-238				-286
Total investment & other income			200				125				60.0	%			298				-32.9	%			929				617				50.6	%
Total underlying income			3,139				3,349				-6.3	%			3,236				-3.0	%			13,363				13,157				1.6	%
Underwriting expenditure			2,710				2,992				-9.4	%			2,823				-4.0	%			11,745				11,838				-0.8	%
Operating expenses			269				243				10.7	%			238				13.0	%			965				864				11.7	%
Other interest expenses			10				2				400.0	%			7				42.9	%			22				8				175.0	%
Other impairments			10																				10
Total underlying expenditure			2,999				3,237				-7.4	%			3,068				-2.2	%			12,742				12,710				0.3	%
Underlying profit before tax			140				112				25.0	%			168				-16.7	%			621				447				38.9	%
- of which Life			138				110				25.5	%			165				-16.4	%			613				442				38.7	%
- of which Non-Life			2				2								3				-33.3	%			8				5				60.0	%
Key Figures
Value of new life business			95				90				5.6	%			93				2.2	%			421				372				13.2	%
Internal rate of return																							16.8	%			15.0	%
Assets under management (end of period)			84,200				69,500				21.2	%			77,300				8.9	%			84,200				69,500				21.2	%
Staff (FTEs end of period)			10,487				8,790				19.3	%			9,783				7.2	%			10,487				8,790				19.3	%

Key Performance Indicators

•

VNB impacted by Japan sales, reduced pricing in Korea

•

Sales up 13.1% in Asia/Pacific excluding Japan

•

Assets under management up 8.9% to EUR 84.2 billion

At Insurance Asia/Pacific, ING is focused on delivering profitable growth by increasing bank distribution, improving the productivity of the tied-agent sales force, and stepping up product innovation across the region. The company is working to expand its product range, supplementing traditional life and asset accumulation products with more wealth management and income products to target the growing retiree segment in Asia. Initiatives are also underway to increase operational efficiency by standardising key processes across the region in order to reap the benefits of scale, and efficiency ratios improved. Expenses to life premiums were down to 8.24% and expenses to assets under management declined to 0.83%.

Assets under management in Japan showed strong growth, which fuelled earnings growth for the region, however new sales declined in an increasingly competitive market. Excluding Japan, sales were up 13.1% to EUR 407 million and premium income increased 15.8%. Sales of single premium products climbed more than 300% in South Korea and more than tripled in Hong Kong following a successful bancassurance campaign. The net inflow of assets under management in the region reached EUR 3.0 billion in the fourth quarter, and total assets under management were up 8.9% to EUR 84.2 billion.

Growth initiatives continued in the fourth quarter. In China, ING Capital Life received approval to start life insurance operations in Henan Province, making it the first Sino-Foreign joint venture to start operations in the province. Investments are continuing to accelerate growth in India, with the roll-out of new branches across the country. Some 5,200 new agents were added across Asia/Pacific in the fourth quarter, mainly in India and South Korea, bringing the total sales force for the region to 62,700. In addition ING added new distribution agreements with banks in India, China and South Korea, and now has partnerships with 123 banks in the region. In South Korea, ING Investment Management received a license in November and offered its first mutual funds to the market in January 2007.

Earnings Analysis: Fourth Quarter

Profit growth at Insurance Asia/Pacific remained strong in the fourth quarter as underlying profit before tax climbed to EUR 140 million from EUR 112 million in the fourth quarter last year. Profit growth was driven by increased volumes in South Korea and higher fees in Japan as assets under management increased strongly. Profit declined 16.7% compared with the third quarter when Japan recorded profits from the hedging strategy on the SPVA books. Underlying profit before tax from

Insurance Asia/Pacific: Life Key Figures

		Total								Australia & NZ								Japan								South Korea								Taiwan								Rest of Asia
In EUR million		4Q2006				4Q2005				4Q2006				4Q2005				4Q2006				4Q2005				4Q2006				4Q2005				4Q2006				4Q2005				4Q2006				4Q2005
Gross premium income			2,846				3,149				67				52				883				1,454				867				645				769				785				260				213
Operating expenses			269				243				56				63				46				39				60				43				55				55				52				43
Underlying profit before tax			138				110				40				37				32				19				63				48												3				6
Expenses/premiums1			8.24	%			8.33	%			17.15	%			18.00	%			6.86	%			7.14	%			6.81	%			5.07	%			7.70	%			7.48	%			14.19	%			21.47	%
Expenses/AUM1			0.83	%			0.94	%			0.60	%			0.79	%			0.53	%			0.68	%			6.95	%			n/a				8.04	%			12.12	%			1.03	%			0.51	%
Value of new business			95				90				12				5				-5				-5				39				53				48				33				1				4
Normalised VNB			80				90				12				5				4				-5				34				53				28				33				2				4
Internal rate of return1			16.8	%			15.0	%			17.7	%			14.0	%			12.1	%			11.3	%			33.9	%			48.9	%			17.9	%			14.2	%			8.8	%			8.4	%
Single premium			1,193				1,606				332				332				608				1,152				141				34				72				78				40				10
Annual premium			396				399				29				17				46				84				202				184				72				81				47				33
New sales (APE)			514				559				63				50				107				199				216				188				78				89				50				33