S E G U R O S C O M E R C I A L A M É R I C A ,
Australia Limited, would be owned 51% by ING and 49% by
Our shareholders in many countries expect good financial performance. Our more than 110,000 employees from 65 countries form a greatly diversified and dedicated workforce, for whom we want to be a good employer. And last but not least, we aim to be a good corporate citizen that fulfils a useful role in society.
We have now accumulated 11 years of experience with our integrated financial services concept.
As ING expanded over the years to become a global player and progressed toward a more centralised management style with emphasis on shared expertise and synergy, the need for a strong common brand increased.
Poland. An intensive PR and advertising campaign introduced the ING brand to the Polish market. The awareness level prior to the campaign was less than 10%. The results greatly exceeded expectations: more than 50% aided name awareness compared to a target of 30%. The campaign managed to build strong foundations of ING brand equity and the lion icon is now widely recognised in Poland as the ING symbol.
ING is one of the leading financial institutions in Europe, delivering banking, insurance and asset management services to retail, corporate and institutional clients via a multidistribution approach.
United Kingdom; Italy, Spain and Greece in South Europe, as well as Poland, the Czech
R E TA I L C L I E N T S
Business Principles which were communicated throughout the Group in 2000. In 2001, the process of embedding these principles into the organisation was continued. In the Netherlands, the management of the Dutch business units discussed the functioning of the Business
I N G I N S O C I E T Y
The 46.9% increase in the operational result before tax of ING Americas reflected the consolidation of the ReliaStar and Aetna businesses that were acquired in 2000. At  899 million the operational result was, however, lower than expected. The shortfall was mainly caused by lower sales and fee income due to weak equity markets and the claims relating to the World
The bank efficiency ratio improved from 72.1% in 2000 to 71.1% in 2001, almost meeting the target. Further rationalisation of the wholesale operations, including further downscaling of the equities activities, will have a positive impact on the cost control programmes that are underway throughout the banking operations.
Europe, the three insurance companies were merged and the Swiss operations were combined.
insurance and bank units, as well as between countries in the region. In Greece a strategic alliance between Piraeus Bank and ING was established in the field of bancassurance, employee benefits and asset management. ING
Belgium and Poland), to develop the ING Direct strategy in the large mature markets and to develop our field forces to build a focused
ING Americas’ goal is to be a market leader in each of the core countries. In the US ING has a top-5 position in life insurance, variable annuities, fixed annuities and retirement plans, and has
ING Chile, the country’s number one insurer, was named ‘Best Foreign Company’. ING Argentina was given the prestigious Mercury ‘Excellence in Marketing’ award and became the first life insurance company to win the award since its inception in 1982.
Madero district that should be completed in the second quarter of 2002. It will house the head offices of all of ING’s operations in Argentina.
I N D I A A S A G R O W T H M A R K E T
India is one of the key long-term growth markets in Asia. ING Vysya Life Insurance started selling policies in September through its highly professional sales force of over 300 tied agents as well as through the 480 outlets of Vysya Bank which are concentrated in the southern part of the Indian subcontinent.
We aim to build on our strength as a traditional life insurer to gradually become a multi-channel provider of superior financial services for the middle and upper retail market.
As is normal in a highly volatile market, ING’s investment performance came under pressure.
ING Asset Management is pursuing cost reductions on all levels, among others by integrating or outsourcing back-office processes and by reducing overlaps in product offerings that do not add value. Furthermore, ING Asset
Aeltus is a leading investment manager in the area of high-yield bonds and leveraged loans. A new
The continuing trend to outsource non-core functions by asset managers is a stimulus to the fund administration business of the Financial
ING Real Estate is market leader in the Netherlands in the development of shopping centres.
ING is an attractive employer, also because of its long-term commitment to training and development, its diversity of experience and background and its commitment to its people. ING has a culture made up of all the businesses the Group comprises. The company is proud of its Dutch heritage and embraces its international diversity.
ING’s workforce at all levels reflects the customer base and geographic mix of the locations where we do business. The Diversity Council has a detailed action plan, which covers three primary categories of focus: demonstrating commitment, changing behaviour and assigning ownership.
In addition, the employment conditions have been modernised to suit the needs of ING’s current workforce in the Netherlands. Within certain boundaries, employees can distinguish between several options regarding working hours, pension provisions and number of holidays.
The section Additional information includes information about RAROC, embedded value, banking and insurance ratios and credit ratings.
Net profit for the period 4 , 5 7 7 1 1 , 9 8 4
Adjusted for: - additions to the provision for loan losses 7 5 0 4 0 0
Results can be analysed by insurance operations and banking operations as follows: INSURANCE OPERATIONS BANKING OPERATIONS ELIMINATIONS TOTAL
Income from land and buildings 6 6 5 5 0 5
The risk-adjusted return, or the numerator of the RAROC fraction, is based on similar valuation principles as applied in the financial accounts, with the exception of actual risk costs. The actual risk costs, that by nature are volatile as they depend on the actual economic circumstances, are replaced by much more stable expected losses reflecting average credit losses over the entire economic cycle.
The embedded value is an indicator of the economic value creation as a consequence of selling and managing long-term contracts such as life insurance, annuities and pensions. It is defined as the present value of the future earnings arising from the business on the books at the valuation date plus the free portion of capital and surplus. The underlying assumptions (expenses, interest rates, mortality, lapse, etc.) are based on the latest available data and reflect best estimates of future expected experience. The future earnings are discounted at a rate representing the cost of capital.
This compares to an overall expected rate of return of 10.1% for 2000. These percentages are comparable.
R E G U L AT O RY R E Q U I R E M E N T S W I T H R E G A R D T O S O LV E N C Y
For the exercise of voting rights in the Annual General Meeting of
preference shares in addition to ordinary shares and preference shares. ING Group has granted Stichting Cumulatief Preferente
Each year, the members of the Supervisory Board are required to give details of any other directorships and paid offices they may hold. Any such offices must not conflict with the interests of ING
C O R H E R K S T R Ö T E R Chairman (1937 - Dutch nationality)
April 2001. C U R R E N T T E R M O F O F F I C E : until the 2002 AGM in which he will be proposed for reappointment.
O F O F F I C E : until the 2003 AGM.
Nationale-Nederlanden and ING Group. F I R S T A P P O I N T M E N T
P R I N C I P A L F O R M E R P O S I T I O N : Governor of the Deutsche
Financial Officer as of July 1996. Joined ING in 1992. F O R M E R
A L E X A N D E R R I N N O O Y K A N (1949 - Dutch nationality)
even if the option scheme is discontinued. The option rights are subject to certain conditions, including a certain continuous period of service. The exercise prices of the options are the same as the quoted prices of ING Group shares at the date on which the options are granted.
AS AT 31 GRANTED EXERCISED AS AT 31 EXERCISE AT EXERCISE
The following table shows the number of options outstanding and exercisable, analysed in accordance with year of issue and exercise price. Following the stock split on 2 July 2001, the number of options and the exercise price have been adjusted in a 2:1 ratio. The information in the tables below has been restated where necessary to reflect the impact of the stock split.
In compliance with the provisions of Article 16 of the Conditions for the Administration of Registered Shares of ING Groep N.V.
C E N T R A L W O R K S C O U N C I L as at 1 January 2002