Wednesday, May 14, 2008

2008 First Quarter Financial and Operating Results

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Charles Brindamour, Chief Executive Officer

Mark Tullis, Chief Financial Officer

Q&A session with:

Martin Beaulieu, Senior VP, Personal Lines

Peter Weightman, Senior VP, Commercial Lines

Presenters

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Q1-2008 highlights

Q1-2008 Q1-2007 Change

Written insured risks (thousands) 945.8 950.4 (0.5)%

Direct premiums written (excluding pools) 860.3 846.3 1.7%

Underwriting income (excluding MYA) 0.8 38.7 (97.9)%

Combined ratio (excluding MYA) 99.9% 96.0% 3.9 pts

Income before income taxes 22.2 171.4 (87.0)%

Income tax (benefit) expense (0.8) 45.2 (46.0)

Net income 23.0 126.2 (81.8)%

Net operating income1 70.2 112.8 (37.8)%

Earnings per share (EPS) – basic and diluted (dollars) 0.19 0.95 (80.0)%

Net operating income per share (dollars) 0.56 0.84 (33.3)%

Financial summary (in $ millions, except as otherwise noted)

Severe winter storms and weak equity markets overshadowed otherwise solid underwriting performance.

1 Excludes the market yield adjustment.

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Changes in pre-tax income – reconciliation

Pre-tax operating income, as reported in 2007 143.7

Lower favourable prior year claims development (11.6)

Current accident year:

Higher current accident year underwriting income 5.4

Higher losses from catastrophes (26.0)

Lower results from Facility Association (5.7)

Change in underwriting income excluding MYA (37.9)

Lower interest and dividend income, net of expenses (1.1)

Corporate and distribution (15.2)

Pre-tax operating income, as reported in 2008 89.5

(in $ millions, except as otherwise noted; excluding MYA)

Income before income taxes, as reported in Q1-2007 171.4

Change in net gains on invested assets and other gains excluding HFT debt securities (88.7)

Change in pre-tax operating income (54.2)

Market yield effect (6.3)

Income before income taxes, as reported in Q1-2008 22.2

Income tax benefit 0.8

Net income, as reported in 2008 23.0

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Direct premiums written1)

(in $ millions)

$961$1,091$1,210

$846

$860

$0

$350

$700

$1,050

$1,400

Q1-07 Q2-07 Q3-07 Q4-07 Q1-08

(in $ millions)

$3,501

$3,906 $3,994$4,109

$0

$1,000

$2,000

$3,000

$4,000

2004 2005 2006 2007

DPW annuallyDPW quarterly

Direct premiums written increased by 1.7% overall from Q1-2007, driven by higher premiums in personal insurance, as well as unit growth in all lines of business except personal auto.

1) Excluding pools

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DPW increased in personal lines due to higher average amounts insured and higher rates. Commercial premiums were flat as we maintained pricing discipline and a focus on more profitable small-medium accounts.

Direct premiums written – by lines1)

Personal lines Commercial lines

$604.5

$2,811$2,657

$2,339

$590.2

$2,962

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2004 2005 2006 2007 Q1-07 Q1-08

$255.8

$1,183$1,249

$1,162

$256.2

$1,146

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

2004 2005 2006 2007 Q1-07 Q1-08

+ 2.4% - 0.2%

(in $ millions) (in $ millions)

1) Excluding pools

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Personal lines1)

Commercial lines1)

A marked increase in commercial underwriting income helped offset the adverse impact of winter storms on property results.

$242

-$20

$93

$36

$339 $382

-$100

$-

$100

$200

$300

$400

$500

2004 2005 2006 2007 Q1-07 Q1-08

$162

$21

$156

$131

$3

$96

-$20

$20

$60

$100

$140

$180

2004 2005 2006 2007 Q1-07 Q1-08

(in $ millions) (in $ millions)

Net underwriting income (loss) – by lines

+ $18- $56

1) Excluding MYA

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5.1%5.1%5.0%5.1%4.8%

5.1% 5.1%

0%

2%

4%

6%

2006 2007 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08

Market-based yield

Market-based yield

The market-based yield was 5.1% this quarter, a slight increase from 5.0% in the same quarter last year.

Market-based yield is a non-GAAP measure.

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20.8%

13.0%15.4%

19.4%

40.9%

31.6%

0%

10%

20%

30%

40%

50%

2004 2005 2006 2007 Q1-07 Q1-08

Return on equity

ROE for the 12-month period ending March 31, 2008 was 13.0% compared to 19.4% for the 12 months that ended March 31, 2007.

ROE equals net income over the last 12 months divided by the average shareholders’ equity during that same period.

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Update on our share buyback program

• Up to 6.2 million outstanding shares over 12 month period, ending February 2009

• 1.065 million shares purchased for cancellation up to April 30, 2008 – which is equivalent to 17.1% of the planned buyback

• Paid $40.0 million for shares repurchased up to April 30, 2008

• ING Groep has participated proportionately in the share buyback to maintain its ownership at 70%

1.065

6.224

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Total Up to April 30, 2008

The NCIB and the recent dividend increase of 14.8% announced in February 2008 reflect ING Canada’s ongoing focus on capital management initiatives.

Progress up to April 30, 2008 (in millions)

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Certain of the statements contained in this presentation about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "likely" or "potential“ or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward looking statements. Forward looking statements are based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate in the circumstances. Many factors could cause our actual results, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward looking statements, including, without limitation, the following factors: our ability to implement our strategy or operate our business as we currently expect; our ability to accurately assess the risks associated with the insurance policies that we write; adverse capital market developments or other factors which may affect our investments; the cyclical nature of the property and casualty (P&C) insurance industry; our ability to accurately predict future claims frequency; government regulations; litigation and regulatory actions; periodic negative publicity regarding the insurance industry; intense competition; our reliance on brokers and third parties to sell our products; our ability to successfully pursue our acquisition strategy; the substantial influence of ING Groep; our participation in the Facility Association (a mandatory pooling arrangement among all industry participants); terrorist attacks and ensuing events; the occurrence of catastrophic events; our ability to maintain our financial strength ratings; our ability to alleviate risk through reinsurance; our ability to successfully manage credit risk; our reliance on information technology and telecommunications systems; our dependence on key employees; general economic, financial and political conditions; our dependency on the results of operations of our subsidiaries; the accuracy of analyst earnings estimates or the consensus figure based upon such estimates; the volatility of the stock market and other factors affecting our share price; and future sales of a substantial number of our common shares. These factors should be considered carefully, and readers should not place undue reliance on our forward looking statements. We have no intention and undertake no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Forward-looking statement disclaimer

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Q2 2008 Earnings conference call –August 13, 2008 at 10:00 a.m.