Fund bailout leaves ING in the red

ING reported a loss of €30 million for the March 2009 quarter for its Australian insurance business, thanks to ING's having to tip in €50 million to compensate investors in the ING Diversified Yield Fund and the ING Regular Income Fund in New Zealand.

ANZ, its joint venture partner, also has had to make provision for compensation to enable investors in the frozen fund to redeem most of the money.

Ignoring that compensation, ING said its Australian insurance business generated a profit of €20 million in the March 2009 quarter, down from €46 million in the same quarter in 2008. Even though reporting a lower profit, ING also said that premium income increased 26 per cent over the quarter while operating expenses fell 24 per cent.

ING no longer reports performance data for the ING Direct business each quarter in as much detail as in the past, though margins are increasing on the banking business in Australia.