Insurance helps ING post 6.7 pct rise in '06 profit

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Thu Feb 15, 2007 2:06am EST

(Adds details, chairman statement)

AMSTERDAM Feb 15 (Reuters) - Dutch financial services group ING Groep NV (ING.AS)(ING.N) said on Thursday its 2006 net profit rose 6.7 percent, as a healthier insurance business offset a weaker performance in banking.

ING, one of the top five insurers in Europe, said net profit rose to 7.69 billion euros ($10 billion) in 2006 from 7.21 billion euros a year earlier. A Reuters poll of 20 analysts produced an average forecast for net profit of 7.25 billion euros.

ING's insurance arm had an underlying profit of 4.89 billion euros, up 23 percent, while banking net profit rose by 11.4 percent to 5.07 billion euros.

ING said that life insurance in emerging markets helped to drive growth in the last three months of 2006.

"While the current interest rate environment is challenging, particularly for our banking business, the interest margin stabilised in the fourth quarter," ING Executive Board Chairman Michel Tilmant said in a statement, adding that ING benefited from strong real estate markets, lower taxes and favourable conditions in the non-life insurance business.

Fourth-quarter net profit rose 14.2 percent to 2.1 billion euros, ING said.

Insurance benefited from strong equity and asset markets worldwide, while banking net profit was hurt by a flatter U.S. yield curve, which makes it harder for ING to borrow money short-term to provide longer-terms loans to borrowers.

ING also said that Chief Financial Officer Cees Maas would retire in April, and be replaced by John Hele, his deputy.

((Reporting by Reed Stevenson, editing by Quentin Bryar; Reuters Messaging: reed.stevenson.reuters.com@reuters.net; +31 20 504 5002))

($1=.7660 Euro) Keywords: ING RESULTS/

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