ING swings into euro 793 mn Q1 loss

Bogged down by a weak performance of insurance business and loan losses, Dutch financial services major ING has reported a net loss of euro 793 million during the first three months of 2009.

In the Asia-Pacific region, the entity suffered an underlying loss before tax of euro 149 million due to many factors, including euro 23 million impairment on debt holdings in India, it said in a statement.

ING has also warned that the year would be challenging in the backdrop of uncertain economic conditions.

For the first quarter, the firm posted a loss of euro 793 million whereas it had a profit of euro 1.54 billion in the year-ago period.

The entity had a loss of euro 3.7 billion in the fourth quarter of 2008.

ING's first quarter underlying loss in the insurance business touched euro 824 million, mainly on account of falling asset prices.

Noting that Asia-Pacific's insurance segment witnessed an underlying loss before tax of euro 149 million, the statement said three major factors contributed to the same.

"A euro 191 million loss in Japan's SPVA business, a one-time provision for charges related to two fund suspensions in New Zealand of euro 50 million and a euro 23 million impairment on debt holdings in India."