ING Canada Inc. reported lower income for the second quarter as the severe June storms and the effects of an extended winter impacted the underwriting results.

The Toronto-based property and casualty insurance company said today that net income for quarter declined to $112 million, or 91¢ a share, down from $194.3 million, or $1.56 a share last year. The decline was due mainly to the equity markets weakness over the last year, which resulted in a significant reduction in investment gains, the company said.

Net operating income for the quarter was $109.5 million, or 89¢ a share, down from $132.5 million. or $1.06 per share recorded in the same quarter of last year.

Analysts had called for earnings per share and operating earnings per share of $1.05 and 92¢ respectively.

Direct premiums written increased marginally in the quarter to $1,216.7 million, excluding industry pools.

“Despite the impact of the weather conditions, our operating performance during the quarter was sound with three of our four lines of business achieving combined ratios below 90%. Excluding the effects of the severe storms, operating profitability before taxes improved year-over-year,” stated Charles Brindamour, president and CEO.

“The June 10th hail storm that hit the Montreal South Shore alone resulted in $26 million in damages bringing total claims losses for the three most severe storms during the quarter to more than $40 million. Our home insurance operation incurred a significant loss in the quarter as it continued to be seriously impacted by the severe weather conditions, including hail, rain, heavier precipitation and more intense windstorms,” Brindamour added.

ING Canada declared a quarterly dividend of 31 a share on its common shares, and said it has completed more than half of its planned buyback of 6.2 million shares.