ING Canada Inc. reported net income of $126.2 million, or 95¢ a share for the quarter ended March 31, 2007, down from $185.9 million, or $1.39 a share recorded in the same quarter last year, mainly as a result of lower gains on invested assets. Underwriting income also contributed to the decline.

Net operating income, which is defined as net income excluding net gains on invested assets and other gains after tax, remained stable at $113.9 million, or 85¢ a share, while direct premiums written increased to $854 million, a 4.2% improvement after adjusting for industry pools.

Claude Dussault, president and CEO, commented, “Overall, our insurance businesses delivered strong top-line performance. The numerous initiatives adopted over the last 12 to 18 months to improve our product and service offering to consumers and insurance brokers resulted in an impressive growth both in terms of the number of risks insured and of our direct premiums written.”

“Lower gains on invested assets and, to a lesser extent, underwriting results reduced our profitability. Our realized gains on invested assets decreased by more than $80 million due to less favourable equity market conditions and lower turnover in our fixed income portfolio. The reduced contribution of our underwriting activities to our net earnings reflects the overall rate reductions, lower favourable prior year claims development and an increase in severity in commercial property.”

ING Canada also announced a quarterly dividend of 27¢ a share.