ING Canada Reports Third Quarter Results



    Net income down on lower underwriting results and losses on invested
    assets

    TORONTO, Nov. 7 /CNW/ - ING Canada Inc. (TSX: IIC) reported net income of
$92.0 million for the quarter ended September 30, 2007, compared to
$156.8 million in the same quarter last year. On a per share basis, net income
amounted to $0.74 down from $1.17. Growth remained solid during the quarter
with direct premiums written amounting to $1,081.2 million, a 3.0% increase
after excluding industry pools.
    For the first nine months of the year, net income amounted to
$412.6 million or $3.24 per share compared to $548.7 million or $4.10 per
share for the same period last year while direct premiums written reached
$3,140.3 million, a 3.6% increase after excluding industry pools.

    CEO's comments

    Claude Dussault, President and CEO, commented:
    "While organic growth remained solid during the quarter our overall
financial performance was down significantly as a result of lower underwriting
income, reflecting the continuing decline in industry conditions, and losses
on invested assets.
    "Underwriting income decreased during the quarter as a result of a
deterioration of our automobile insurance results and higher property losses
resulting mainly from an increase in storm activity in Western Canada. Lower
favourable prior year claims development also impacted our underwriting
results. While our investment activities generated higher interest and
dividend income, disappointing capital market conditions resulted in a loss on
debt securities and reduced our overall profitability.
    "Despite this difficult environment, our profitability continues to
remain higher than the historical industry average with a 16.0% return on
equity."

    Dividend

    ING Canada declared a quarterly dividend of 27 cents per share on its
outstanding common shares. The dividend will be payable on December 31 to
shareholders of record on December 14.

    Outlook

    Management expects several key factors to affect the property and
casualty insurance industry over the coming twelve months. Both top-line
growth and underwriting ratios for the property and casualty insurance
industry will continue to trend back towards historical levels.
    Sustainability of cost containment measures in automobile insurance will
continue to be a key performance driver. Automobile insurance reforms adopted
over the years have been effective; however, accident benefit and bodily
injury claims in Ontario are increasing and indicate some inflation in these
areas. Increases in frequency and/or severity may lead to higher premiums.
Increases in water-related damage caused by weather conditions and in
construction cost are contributing to higher loss ratios in personal property
insurance.
    Commercial insurance continues to be competitive and construction costs,
particularly in Western Canada, are putting pressure on underwriting margins.
We remain disciplined in pricing and underwriting and committed to superior
service.

    
    Financial Highlights

    -------------------------------------------------------------------------
                         2007     2006    Change    2007     2006    Change
                         ----     ----    ------    ----     ----    ------
                          Q3       Q3                YTD      YTD
                          --       --                ---      ---
    Direct Premiums
     Written
     ($ millions)
      Including pools   1,081.2  1,038.1     4.2%  3,140.3  3,026.8     3.7%
      Excluding pools   1,091.2  1,059.1     3.0%  3,147.3  3,038.0     3.6%

    Net Premiums Earned
     ($ millions)         994.0    954.5     4.1%  2,927.4  2,847.0     2.8%
    Underwriting Income
     ($ millions)          28.7     95.9  (70.1)%    161.4    341.5  (52.7)%
    Net Income
     ($ millions)          92.0    156.8  (41.3)%    412.6    548.7  (24.8)%
    Earnings Per Share
     ($)
    Basic and Diluted
                           0.74     1.17  (36.8)%     3.24     4.10  (21.0)%
    Return on Equity -
     last 12 months       16.0%    24.6% (8.6)pts
    Combined Ratio        97.1%    89.9%  7.2 pts    94.5%    88.0%  6.5 pts
    -------------------------------------------------------------------------


    Financial Summary

    -   Net income for the third quarter of 2007 was $92.0 million, a 41.3%
        decrease from the same quarter in 2006. The decrease was primarily
        driven by lower underwriting income and a loss on invested assets.
        Higher current and prior year claims in personal auto insurance was
        the most significant factor impacting underwriting income. An
        increase in property claims severity and lower favourable prior year
        claims development in commercial insurance other than automobile also
        contributed to the decline in underwriting income.

        For the first nine months of the year net income amounted to
        $412.6 million, down 24.8% from the same period of last year, as a
        result of a combination of lower underwriting income and a decline in
        net gains on invested assets.

    -   Direct premiums written amounted to $1,081.2 million during the
        quarter, compared to $1,038.1 million in the same quarter of last
        year. The growth in direct premiums written remained strong driven by
        personal insurance which increased by 5.4%, excluding pools. For the
        first nine months, direct premiums written amounted to $3,140.3 up
        from $3,026.8 million.

    -   Underwriting income for the quarter amounted to $28.7 million down
        70.1% from the corresponding quarter of last year. The decline was
        driven mainly by higher claims in personal automobile insurance and
        increased property claims severity in Western Canada. Overall the
        combined ratio increased by 7.2 percentage points to reach 97.1%. For
        the first nine months of the year underwriting income fell 52.7% to
        $161.4 million with a 94.5% combined ratio.

        In personal insurance, automobile insurance underwriting income fell
        64.0% to $26.3 million driven by rate decreases, higher frequency and
        lower favourable development for prior year claims mainly caused by
        higher accident benefits and bodily injury in Ontario. Property
        insurance activities registered a loss of $20.7 million during the
        quarter compared to a loss of $14.4 million last year due to
        increased seasonal storm activity and construction cost inflation,
        mainly in Western Canada. Overall personal insurance underwriting
        income amounted to $5.6 million during the quarter and $92.7 million
        since the beginning of the year. Combined ratios for the quarter and
        the first nine months were respectively 99.2% and 95.6%.

        Commercial insurance underwriting income fell by 38.2% during the
        period to $23.1 million as a result of an increase in property
        severity and less favourable prior year claims development. For the
        first nine months, commercial insurance underwriting income amounted
        to $68.8 million down from $141.5 million last year. The combined
        ratio for commercial lines during the quarter and year-to-date was
        91.6%.

    -   Interest and dividend income, net of expenses increased 6.3% to reach
        $84.7 million during the quarter and 10.3% for the first nine months
        of the year. These results were driven by an increase in both fixed
        income and equity securities as well as higher yields.

    -   Net losses on invested assets amounted to $2.8 million, down from a
        gain of $35.8 million as a result of net losses on debt securities.
        These losses are due to a $27.9 million impairment of capital notes
        and a $11.9 million loss on derivatives, both associated with asset-
        backed securities that were adversely impacted by unfavourable
        capital market conditions. Similarly, net gains on invested assets
        for the first nine months of the year were also down due to losses on
        fixed income securities and a decrease in gains on equities.

    -   Net operating income, which is defined as net income excluding net
        gains on invested assets and other gains after tax, declined to
        $95.2 million or $0.77 per share from $132.3 million or $0.99 per
        share. Net operating income per share declined by 10.3% during the
        first nine months of the year.

    -   Shareholders' equity decreased 6.5% since the beginning of the year
        as a result of the completion of the $500 million Substantial Issuer
        Bid on March 30.
    

    Analyst estimates

    Earnings per share for the quarter amounted to $0.74 compared to an
average estimate of $1.05 among the analysts that follow the company.

    Conference Call

    ING Canada will host a conference call to review its earnings results
later this morning at 10:00 am ET. To listen to the call via live audio
webcast and to view the presentation slides and supplementary financial
information, visit our website at www.ingcanada.com and click on "Investor
Relations".
    The conference call is also available by dialling 416-915-5762 or 1-800-
588-4490 (toll-free in North America). Please call ten minutes before the
start of the call.
    A replay of the call will be available starting at 12:30 p.m. ET today
through 11:59 p.m. ET on November 15. To listen to the replay, call 416-640-
1917 or 1-877-289-8525 (toll-free in North America). The passcode is 21251375
followed by the number sign. A transcript of the call will also be available
on ING Canada's website.

    About ING Canada

    ING Canada is the largest provider of property and casualty insurance in
the country, offering automobile, property and liability insurance to
individuals and businesses through its insurance subsidiaries.

    
    ING Canada Inc.
    Management's Discussion and Analysis

    TABLE OF CONTENTS

    Section
    -------------------------------------------------------------------------
    Section 1 - Description of the business
    Section 2 - Industry outlook
    Section 3 - Overview of consolidated performance
    Section 4 - Consolidated performance review
    Section 5 - Segment performance review
    Section 6 - Summary of quarterly results
    Section 7 - Financial condition
    Section 8 - Accounting and disclosure matters
    Section 9 - Risk management principles and responsibilities
    Section 10 - Other matters
    -------------------------------------------------------------------------
    

    November 6, 2007

    The following Management's Discussion and Analysis (MD&A), which was
approved by the Board of Directors for the quarter ended on September 30,
2007, should be read in conjunction with our Unaudited Interim Consolidated
Financial Statements and accompanying notes as well as the MD&A and the
Consolidated Financial Statements in the Company's 2006 Annual Report to
Shareholders.
    The Company uses both generally accepted accounting principles (GAAP) and
certain non-GAAP measures to assess performance. Non-GAAP measures do not have
any standardized meaning prescribed by GAAP and are unlikely to be comparable
to any similar measures presented by other companies. ING Canada analyzes
performance based on underwriting ratios such as combined, general expenses
and claims ratios as well as other performance measures. Such measures are
defined in a glossary of terms on the Company's web site at www.ingcanada.com.
Click on "Investor Relations" and "Glossary" on the left navigation bar.

    Forward-looking statements

    This document contains forward looking statements that involve risks and
uncertainties. Our actual results could differ materially from these forward
looking statements as a result of various factors, including those discussed
below or in our 2006 Annual Information Form. Please read the cautionary note
in section 10.2 of this document. Certain totals, subtotals and percentages
may not agree due to rounding. Additional information about ING Canada,
including the Annual Information Form, may be found online on SEDAR at
www.sedar.com.
    All figures in the MD&A tables are in millions of Canadian dollars,
except as otherwise noted. A change column has been provided for convenience
showing the change between the two quarters. Not applicable ("n/a") is used
when there is no comparable information or the change percent exceeds 1,000.
Not material ("n/m") is used when figures are not significant.

    SECTION 1 - DESCRIPTION OF THE BUSINESS

    ING Canada is the largest provider of property and casualty ("P&C")
insurance in Canada with an 11% market share. The Company offers automobile,
property and liability insurance to individuals and small- to medium-sized
businesses through broker and direct-to-consumer channels under the ING
Insurance, belairdirect and Grey Power brands. The personal automobile
business makes up approximately 50% of direct premiums written, personal
property comprises 20% and commercial insurance makes up 30%. The independent
broker channel accounts for approximately 80% of annual direct premiums
written. The Company's investment management subsidiary manages the invested
assets of ING Canada Inc. and its insurance subsidiaries.
    ING Canada's strategy is to continue to maximize growth in the broker and
direct-to-consumer channels. The Company is also expanding its network of
affiliated brokerages through small-scale acquisitions. ING Canada's goals are
to exceed the Canadian property and casualty insurance industry organic growth
rate by a minimum of 300 basis points over time and to exceed the industry
return on equity by at least 500 basis points annually.
    More detailed information on ING Canada's strategies for growth can be
found in the Company's 2006 Annual Report.

    SECTION 2 - INDUSTRY OUTLOOK

    Several key factors will affect the Canadian property and casualty
insurance industry over the coming 12 months.

    Industry growth and underwriting income

    We expect underwriting ratios and industry premium growth to trend toward
historical averages.

    Claims costs in automobile insurance

    Sustainability of cost containment measures will continue to be a key
performance driver. Automobile insurance reforms adopted by various provinces
have been effective at containing and stabilizing claims costs over the last
few years; however, rising accident benefit and bodily injury claims in
Ontario indicate some inflation in these areas. Increases in frequency and/or
severity may lead to premium increases.

    Commercial insurance competition

    Commercial insurance continues to be competitive. Rates on large
commercial accounts are under more pressure than small and medium commercial
accounts. ING Canada's commercial business is concentrated in small commercial
accounts as defined by annual premiums of less than ten thousand dollars. We
remain disciplined in pricing and underwriting and committed to superior
service to our brokers and commercial customers.

    Non-residential construction cost inflation

    Cost inflation, higher labour rates and labour shortages, particularly in
Western Canada, are putting pressure on underwriting margins in commercial
property lines. We are working with our brokers and customers to ensure that
policies include sufficient coverage for current replacement costs of insured
properties and adjusting pricing models accordingly to reflect the elevated
cost environment.

    Personal property claims

    Increases in water-related property damages caused by seasonal storm
activity as well as construction cost inflation have contributed to higher
loss ratios in the personal property segment. Construction cost inflation is
driving increases in industry rates in the property segment.
    ING Canada, with its scale advantage, underwriting discipline and pricing
sophistication, is well positioned to capitalize on the above conditions and
continue to outperform the industry's return on equity for the foreseeable
future. Our distinct product and service proposition delivered through a
multi- channel distribution network will be a key driver in fuelling organic
growth.

    
    SECTION 3 - OVERVIEW OF CONSOLIDATED PERFORMANCE

    Highlights

    -------------------------------------------------------------------------
    -   Personal lines continued to drive solid growth in direct premiums
        written in the third quarter
    -   Combined ratio of 97.1% reflects higher personal auto and property
        claims and lower favourable prior year claims development
    -   Net income decreased primarily due to lower underwriting income and a
        net loss on debt securities
    -------------------------------------------------------------------------

    Financial summary

    Table 1
    -------------------------------------------------------------------------
                            Three months ended        Nine months ended
                              September 30               September 30
    -------------------------------------------------------------------------
                          2007     2006   Change     2007     2006   Change
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Written insured
     risks (thousands)  1,273.1  1,242.9     2.4%  3,623.2  3,514.0     3.1%
    -------------------------------------------------------------------------
    Direct premiums
     written (including
     pools)             1,081.2  1,038.1     4.2%  3,140.3  3,026.8     3.7%
    -------------------------------------------------------------------------
    Direct premiums
     written (excluding
     pools)             1,091.2  1,059.1     3.0%  3,147.3  3,038.0     3.6%
    -------------------------------------------------------------------------
    Underwriting:
    -------------------------------------------------------------------------
      Net premiums
       earned             994.0    954.5     4.1%  2,927.4  2,847.0     2.8%
    -------------------------------------------------------------------------
      Net claims and
       general expenses
       (table 3)          965.3    858.6    12.4%  2,766.0  2,505.5    10.4%
    -------------------------------------------------------------------------
        Net underwriting
         income            28.7     95.9  (70.1)%    161.4    341.5  (52.7)%
    -------------------------------------------------------------------------
    Combined ratio        97.1%    89.9%  7.2 pts    94.5%    88.0%  6.5 pts
    -------------------------------------------------------------------------
    Interest and
     dividend income,
     net of expenses
     (table 4)             84.7     79.7     6.3%    258.3    234.2    10.3%
    -------------------------------------------------------------------------
    Net (losses) gains
     on invested assets
     and other gains
     (table 5)             (2.8)    35.8 (107.8)%     76.8    178.2  (56.9)%
    -------------------------------------------------------------------------
    Corporate and
     distribution
     (table 9)              6.2      7.3  (15.1)%     42.5     28.9    47.1%
    -------------------------------------------------------------------------
    Income before
     income taxes         116.8    218.7  (46.6)%    539.0    782.8  (31.1)%
    -------------------------------------------------------------------------
    Income taxes           24.8     61.9  (59.9)%    126.4    234.1  (46.0)%
    -------------------------------------------------------------------------
    Effective income
     tax rate             21.2%    28.3%     (7.1)   23.5%    29.9%     (6.4)
                                     pts                                 pts
    -------------------------------------------------------------------------
    Net income             92.0    156.8  (41.3)%    412.6    548.7  (24.8)%
    -------------------------------------------------------------------------
    EPS - basic and
     diluted (dollars)     0.74     1.17  (36.8)%     3.24     4.10  (21.0)%
    -------------------------------------------------------------------------
    ROE for the last
     twelve months        16.0%    24.6%     (8.6)
                                              pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Note

    All references to direct premiums written exclude pools in this MD&A
(including tables), unless otherwise indicated.

    Third quarter 2007

    Solid growth in written insured risks and average amounts insured in
personal lines drove a 3.0% increase in total direct premiums written. In
commercial lines, direct premiums written were down while the number of
written insured risks was flat, reflecting the competitive pricing environment
and a shift toward smaller commercial accounts with lower annual premiums.
    Net income for the third quarter was down primarily due to lower
underwriting income, as well as a net loss on invested assets reflecting
portfolio impairments and realized losses on debt securities, shown in table
5. Higher current and prior year claims in personal auto were the most
significant factors impacting underwriting income in the quarter. In addition,
higher severity of current year claims in personal property and lower
favourable prior year claims development in commercial non-auto also
negatively impacted underwriting income. An increase in non-taxable dividend
income relative to underwriting income resulted in a lower effective income
tax rate, which positively affected net income.
    The following table reflects major changes in income before income taxes.

    
    Table 2
    -------------------------------------------------------------------------
                                                  Three months   Nine months
                                                         ended         ended
                                                  September 30  September 30
    -------------------------------------------------------------------------
    As reported in 2006                                  218.7         782.8
    -------------------------------------------------------------------------
      Lower favourable prior year claims development     (48.4)        (75.1)
    -------------------------------------------------------------------------
      Current accident year:
    -------------------------------------------------------------------------
        Lower losses from catastrophes                    10.9           1.3
    -------------------------------------------------------------------------
        Higher (lower) results from Facility
         Association                                       1.4          (3.0)
    -------------------------------------------------------------------------
        Lower underwriting income                        (31.1)       (103.3)
    -------------------------------------------------------------------------
    Change in net underwriting income                    (67.2)       (180.1)
    -------------------------------------------------------------------------
    Lower net gains on invested assets and other
     gains                                               (38.6)       (101.5)
    -------------------------------------------------------------------------
    Higher interest and dividend income, net of
     expenses                                              5.0          24.1
    -------------------------------------------------------------------------
    Corporate and distribution                            (1.1)         13.7
    -------------------------------------------------------------------------
    As reported in 2007                                  116.8         539.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Year to date 2007

    Direct premiums written increased 3.6% due to a rise in written insured
risks and amounts insured in personal lines, year to date. In commercial
lines, lower direct premiums written reflect a shift in the portfolio to
smaller accounts with lower annual premiums, flat growth in written insured
risks and low single-digit rate decreases.
    Net income was down by 24.8% in the first nine months of the year due to
a combination of lower underwriting income and a decline in net gains on
invested assets. A lower effective tax rate, higher investment income and an
increase in corporate and distribution income positively impacted results year
to date. The decline in the effective tax rate is described in more detail in
the third quarter discussion above.
    Higher severity on current year property claims and an increase in
frequency and severity in personal auto led to a decrease in underwriting
income year to date. Lower favourable prior year claims development, mainly in
personal auto, also had a negative impact on underwriting income. A $40.5
million reduction to claims liabilities reflecting higher market yields in
2007 positively affected underwriting income, partly offsetting the other
factors previously mentioned.

    Return on equity

    Return on equity (ROE) for the twelve-month period ending September 30,
2007 was 16.0% compared to 24.6% for the same period last year. The decline
was due to lower net income.
    ROE is a non-GAAP measure calculated by dividing net income for the
period by the average shareholders' equity during the same period. The average
shareholders' equity is the mean of shareholders' equity at the beginning and
end of the period. Shareholders' equity includes accumulated other
comprehensive income (AOCI).

    Recent events

    Short form base shelf prospectus

    On October 26, 2007, the Company filed a short form base shelf prospectus
with securities regulators throughout Canada, which replaces a similar
prospectus filed in September 2005. The filing, for which the Company has
received final receipt from Canadian securities regulators, will allow the
Company to offer, over a 25-month period, an aggregate of any combination of
up to $1.0 billion in debt, preferred or common share securities. For more
information, please refer to the news release and preliminary short form base
shelf prospectus dated October 26, 2007 which is filed on SEDAR at
www.sedar.com.

    SECTION 4 - CONSOLIDATED PERFORMANCE REVIEW

    Written insured risks

    The number of written insured risks grew 2.4% during the quarter and by
3.1% year to date, driven by solid growth in personal lines. In commercial
lines, the number of insured risks was flat in the third quarter and year to
date.

    Direct premiums written

    Direct premiums written increased 3.0% in the third quarter and 3.6% year
to date, driven by an increase in written insured risks and the average amount
insured in personal lines.

    Net claims and general expenses

    
    Table 3
    -------------------------------------------------------------------------
                            Three months ended        Nine months ended
                              September 30               September 30
    -------------------------------------------------------------------------
                          2007     2006   Change     2007     2006   Change
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Net claims:
    -------------------------------------------------------------------------
      (Favourable) prior
       year claims
       development        (20.7)   (69.1) (70.0)%    (70.5)  (145.6) (51.6)%
    -------------------------------------------------------------------------
      Current year
       catastrophes        16.6     27.4  (39.4)%     31.4     32.7   (4.0)%
    -------------------------------------------------------------------------
      Current year
       claims             689.8    618.2    11.6%  1,951.7  1,744.8    11.9%
    -------------------------------------------------------------------------
        Total             685.7    576.5    18.9%  1,912.6  1,631.9    17.2%
    -------------------------------------------------------------------------
    Commissions, net      135.6    139.2   (2.6)%    436.8    457.1   (4.4)%
    -------------------------------------------------------------------------
    Premium taxes, net     34.3     33.9     1.2%    101.9     99.2     2.7%
    -------------------------------------------------------------------------
    General expenses,
     net                  109.7    109.0     0.6%    314.7    317.4   (0.9)%
    -------------------------------------------------------------------------
        Total             965.3    858.6    12.4%  2,766.0  2,505.6    10.4%
    -------------------------------------------------------------------------
    Combined ratio        97.1%    89.9%  7.2 pts    94.5%    88.0%  6.5 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Prior year claims development

    Favourable prior year claims development decreased compared to strong
favourable prior year claims development in the third quarter of last year,
primarily due to higher accident benefit and bodily injury claims in Ontario
personal auto and higher prior year claims in commercial non-auto. Year to
date, prior year claims development was favourably impacted by a market yield
adjustment to claims liabilities, described in section 7.

    Catastrophes

    In the third quarter, catastrophic claims were down by $10.8 million and
$1.3 million on a year to date basis. Floods and hail in Western Canada in the
spring and summer were the primary causes of catastrophic claims in 2007.
Catastrophic claims are defined as a single event that resulted in $5.0
million or more in aggregate claims.

    Current accident year claims

    Current accident year claims were up by $71.6 million in the third
quarter and $206.9 million year to date mainly due to higher personal auto and
property claims. Refer to section 5 - Segment Performance Review for more
detailed information on current accident year claims.

    Commissions

    Variable commissions were down in the third quarter and year to date due
to lower underwriting results.

    Industry pools

    Industry pools consist of the "residual market" as well as risk-sharing
pools ("RSP") in Alberta, Ontario, Quebec and New Brunswick. These pools are
managed by the Facility Association except the Quebec RSP. In the third
quarter and year to date, the net effect of transfers in and out of these
pools on current accident year results was negligible despite a negative
impact from the Facility Association.

    Interest and dividend income, net of expenses

    
    Table 4
    -------------------------------------------------------------------------
                            Three months ended        Nine months ended
                              September 30               September 30
    -------------------------------------------------------------------------
                          2007     2006   Change     2007     2006   Change
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Interest income        48.9     47.6     2.7%    146.8    143.3     2.4%
    -------------------------------------------------------------------------
    Dividend income        40.6     37.3     8.8%    126.1    107.8    17.0%
    -------------------------------------------------------------------------
    Interest and
     dividend income,
     before expenses       89.5     84.9     5.4%    272.9    251.1     8.7%
    -------------------------------------------------------------------------
    Expenses               (4.8)    (5.2)  (7.7)%    (14.6)   (16.9) (13.6)%
    -------------------------------------------------------------------------
    Interest and
     dividend income,
     net of expenses       84.7     79.7     6.3%    258.3    234.2    10.3%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Interest income

    Interest income was higher in the third quarter and year to date
reflecting an increase in fixed income assets under management and higher
yields.

    Dividend income

    The increase in dividend income in the third quarter and year to date was
due to an increase in dividend-paying equity investments and higher yields on
equity holdings.

    
    Net (losses) gains on invested assets and other gains

    Table 5
    -------------------------------------------------------------------------
                            Three months ended        Nine months ended
                              September 30               September 30
    -------------------------------------------------------------------------
                          2007     2006   Change     2007     2006   Change
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Debt securities
    -------------------------------------------------------------------------
     Realized gains
      (losses)             (8.0)     3.9 (305.1)%    (17.4)    17.0 (202.4)%
    -------------------------------------------------------------------------
      Unrealized gains
       (losses)            11.1        -      n/a    (24.0)       -      n/a
    -------------------------------------------------------------------------
      Impairments         (27.9)       -      n/a    (29.2)       -      n/a
    -------------------------------------------------------------------------
      Gains (losses) on
       derivatives        (10.8)    (4.9)  120.4%      4.0      3.6    11.1%
    -------------------------------------------------------------------------
        Net gains
         (losses) on debt
         securities       (35.7)    (1.0)     n/a    (66.7)    20.6 (423.8)%
    -------------------------------------------------------------------------
    Equity securities
    -------------------------------------------------------------------------
      Realized gains       14.1     47.6  (70.4)%    144.1    164.4  (12.3)%
    -------------------------------------------------------------------------
      Unrealized losses    (3.2)       -      n/a     (2.1)       -      n/a
    -------------------------------------------------------------------------
      Impairments          (0.4)    (3.8) (89.5)%    (13.0)   (13.5)  (3.7)%
    -------------------------------------------------------------------------
      Gains (losses) on
       derivatives
       (including
       embedded
       derivatives)        24.2     (8.8)(375.0)%     15.7      2.8   460.7%
    -------------------------------------------------------------------------
        Net gains on
         equities          34.7     35.0   (0.9)%    144.7    153.7   (5.9)%
    -------------------------------------------------------------------------
    Other                  (1.8)     1.8 (200.0)%     (1.2)     3.9 (130.8)%
    -------------------------------------------------------------------------
    Total gains
     (losses) before
     income taxes          (2.8)    35.8 (107.8)%     76.8    178.2  (56.9)%
    -------------------------------------------------------------------------
    Total gains (losses)
     after income taxes    (3.2)    24.5 (113.1)%     45.2    120.0  (62.3)%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Third quarter 2007

    The net loss on the debt portfolio was primarily related to investments
in capital notes associated with asset-backed securities, and related total
return swaps (derivatives), both of which were adversely impacted by
unfavourable capital market conditions. The capital notes were impaired by
$27.9 million and fair values of the total return swaps were adjusted down by
$11.9 million. The remaining exposure to these securities is $30.0 million
pre- tax, including $17.0 million in capital notes and $13.0 million in a
total return swap.
    Lower realized gains on equity securities were offset by $18.5 million in
gains on call options embedded in our perpetual preferred shares, reflecting
market volatility. Approximately $10.0 million of the $18.5 million is
associated with the first and second quarters, but was recorded in the third
quarter upon final determination of the valuation method for embedded
derivatives. See section 7.1, impact of the adoption of new accounting
standards on January 1, 2007 as well as section 8.2, Critical Accounting
Estimates and Assumptions.

    Year to date 2007

    Year to date, pre-tax gains on invested assets and other gains decreased
mainly due to net losses on debt securities, as well as portfolio impairments
and lower realized equity gains compared to the same period in 2006. Realized
gains on invested assets were particularly high in the first quarter of 2006
due to the fixed income portfolio repositioning. Overall, unfavourable bond
market conditions in 2007 and higher interest rates had a significant impact
on the market values of the Company's fixed income securities and preferred
shares.
    From quarter to quarter, realized gains fluctuate due to the timing of
asset dispositions and market conditions. Management's objective is to
maximize after-tax total returns and generate long-term value over time,
balancing preservation of capital and risk diversification.

    
    Net operating income

    Table 6
    -------------------------------------------------------------------------
                            Three months ended        Nine months ended
                              September 30               September 30
    -------------------------------------------------------------------------
                          2007     2006   Change     2007     2006   Change
    -------------------------------------------------------------------------

    Net income             92.0    156.8  (41.3)%    412.6    548.7  (24.8)%
    -------------------------------------------------------------------------
    Less: Net (losses)
     gains on invested
     assets and other
     gains, after income
     taxes (table 5)      (3.2)    24.5  (113.1)%    45.2    120.0   (62.3)%
    -------------------------------------------------------------------------
    Net operating income  95.2    132.3   (28.0)%   367.4    428.7   (14.3)%
    -------------------------------------------------------------------------
    Average outstanding
     shares (millions)   124.5    133.7    (6.9)%   127.5    133.7    (4.6)%
    -------------------------------------------------------------------------
    Net operating
     income per share
     (dollars)            0.77     0.99   (22.2)%    2.88     3.21   (10.3)%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Net operating income and net operating income per share are non-GAAP
measures. Net operating income is equal to net income less net gains on
invested assets and other gains, after tax. Net operating income per share is
equal to net operating income for the period divided by the average
outstanding number of shares for the same period. These measures may not be
comparable to similar measures used by other companies, however, they are
widely used in the investment community to assess the Company's performance.

    Other comprehensive income

    Other comprehensive income (OCI) was introduced with the new accounting
standards in 2007. OCI includes the changes in fair values of invested assets
classified as available-for-sale. Available-for-sale assets sold during the
period are reflected in income and are no longer included in OCI. Unrealized
gains on available-for-sale assets are tax-affected.
    Unrealized losses on available-for-sale securities and dispositions of
available-for-sale securities resulted in negative OCI of $140.0 million in
2007. Lower market values of the Company's fixed income assets, some of which
are classified as available-for-sale, reflect less favourable bond market
conditions in 2007.

    SECTION 5 - SEGMENT PERFORMANCE REVIEW

    ING Canada has two segments: 1) P&C insurance; and, 2) Corporate and
distribution. P&C Insurance is divided into two lines of business, personal
and commercial lines. Corporate and distribution includes income from
investments in brokerages as well as other corporate items.

    P&C Insurance - Personal Lines

    
    Table 7
    -------------------------------------------------------------------------
                            Three months ended        Nine months ended
                              September 30               September 30
    -------------------------------------------------------------------------
                          2007     2006   Change     2007     2006   Change
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Written insured
     risks (thousands):
    -------------------------------------------------------------------------
      Automobile          681.1    660.4     3.1%  1,972.9  1,898.6     3.9%
    -------------------------------------------------------------------------
      Property            476.7    467.6     1.9%  1,281.5  1,247.1     2.8%
    -------------------------------------------------------------------------
        Total           1,157.8  1,128.0     2.6%  3,254.4  3,145.7     3.5%
    -------------------------------------------------------------------------
    Direct premiums
     written:
    -------------------------------------------------------------------------
       Automobile         565.6    540.3     4.7%  1,604.6  1,519.6     5.6%
    -------------------------------------------------------------------------
       Property           258.7    241.5     7.1%    689.2    637.9     8.0%
    -------------------------------------------------------------------------
         Total            824.3    781.8     5.4%  2,293.8  2,157.5     6.3%
    -------------------------------------------------------------------------
    Net premiums earned:
    -------------------------------------------------------------------------
       Automobile         505.9    475.1     6.5%  1,492.7  1,415.5     5.5%
    -------------------------------------------------------------------------
       Property           213.5    197.3     8.2%    619.4    582.1     6.4%
    -------------------------------------------------------------------------
         Total            719.4    672.4     7.0%  2,112.1  1,997.6     5.7%
    -------------------------------------------------------------------------
    Net underwriting
     income:
    -------------------------------------------------------------------------
       Automobile          26.3     73.0  (64.0)%    114.1    181.6  (37.2)%
    -------------------------------------------------------------------------
       Property           (20.7)   (14.4)   43.8%    (21.4)    18.4 (216.3)%
    -------------------------------------------------------------------------
         Total              5.6     58.6  (90.4)%     92.7    200.0  (53.7)%
    -------------------------------------------------------------------------
    Ratios
    -------------------------------------------------------------------------
       Claims ratio       72.6%    63.6%  9.0 pts    68.0%    60.9%  7.1 pts
    -------------------------------------------------------------------------
       Commissions ratio  14.0%    15.3% (1.3)pts    15.0%    16.3% (1.3)pts
    -------------------------------------------------------------------------
       Premium taxes
        ratio              3.4%     3.5% (0.1)pts     3.4%     3.4%        -
    -------------------------------------------------------------------------
       General expenses
        ratio              9.2%     8.8%  0.4 pts     9.2%     9.3% (0.1)pts
    -------------------------------------------------------------------------
    Combined ratio        99.2%    91.2%  8.0 pts    95.6%    89.9%  5.7 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Third quarter 2007

    Direct premiums written grew by 5.4% in personal lines, driven by a 2.6%
increase in written insured risks and a rise in the average amount insured.
    In personal auto, direct premiums written grew 4.7% despite an overall
rate decrease. In mid September, a rate increase of 3.5% came into effect on
new personal auto policies in Ontario, the Company's largest market in the
personal auto line. Higher rates will start to have a favourable impact on
earned premiums in future quarters. In personal property, direct premiums
written were up 7.1%, reflecting a 1.9% increase in written insured risks,
higher insured amounts and rate increases.
    Underwriting income was negatively affected by a 3.3% rate decrease on
direct premiums earned, higher frequency and lower favourable prior year
claims development in the personal auto line, mainly caused by higher accident
benefit and bodily injury claims in Ontario, compared to particularly high
favourable prior year claims development in the third quarter of 2006. Higher
property severity due to an increase in summer storm activity in Western
Canada and an increase in large losses also had a negative impact on
underwriting income.

    Year to date 2007

    Direct premiums written rose 6.3% in the first nine months of the year,
driven by a 3.5% increase in the number of written insured risks and an
increase in average amount insured. Average rates in personal auto decreased
by 2.7% and increased by 0.6% in personal property year to date.
    Underwriting income was lower due to higher frequency, a rise in severity
and rate decreases in personal auto combined with higher property claims
severity. Lower favourable prior year claims development, mainly in personal
auto, also contributed to the shortfall in underwriting income. Seasonal storm
activity in Western Canada and an increase in large losses combined with
construction cost inflation resulted in higher property claims severity.

    P&C Insurance - Commercial Lines

    
    Table 8
    -------------------------------------------------------------------------
                            Three months ended        Nine months ended
                              September 30               September 30
    -------------------------------------------------------------------------
                          2007     2006   Change     2007     2006   Change
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Written insured
     risks (thousands):
    -------------------------------------------------------------------------
      Automobile           58.8     58.0     1.4%    193.0    191.9     0.6%
    -------------------------------------------------------------------------
      Non-auto             56.5     57.0   (0.9)%    175.8    176.5   (0.4)%
    -------------------------------------------------------------------------
        Total             115.3    115.0     0.3%    368.8    368.4     0.1%
    -------------------------------------------------------------------------
    Direct premiums
    written:
    -------------------------------------------------------------------------
      Automobile           72.5     74.9   (3.2)%    239.5    245.6   (2.5)%
    -------------------------------------------------------------------------
      Non-auto            194.3    202.4   (4.0)%    614.0    634.8   (3.3)%
    -------------------------------------------------------------------------
        Total             266.8    277.3   (3.8)%    853.5    880.4   (3.1)%
    -------------------------------------------------------------------------
    Net premiums
     earned:
    -------------------------------------------------------------------------
      Automobile           80.4     81.9   (1.8)%    239.5    244.7   (2.1)%
    -------------------------------------------------------------------------
      Non-auto            194.3    200.0   (2.8)%    575.7    604.7   (4.8)%
    -------------------------------------------------------------------------
        Total             274.7    281.9   (2.6)%    815.2    849.4   (4.0)%
    -------------------------------------------------------------------------
    Net underwriting
     income (loss):
    -------------------------------------------------------------------------
      Automobile            9.3     9.9    (6.1)%     23.9     31.5  (24.1)%
    -------------------------------------------------------------------------
      Non-auto             13.8    27.5   (49.8)%     44.9    110.0  (59.2)%
    -------------------------------------------------------------------------
        Total              23.1    37.4   (38.2)%     68.8    141.5  (51.4)%
    -------------------------------------------------------------------------
    Ratios
    -------------------------------------------------------------------------
      Claims ratio        59.6%   52.7%   6.9 pts    58.3%    48.8%  9.5 pts
    -------------------------------------------------------------------------
      Commissions
       ratio              18.7%   20.3%  (1.6)pts    19.7%    20.8% (1.1)pts
    -------------------------------------------------------------------------
      Premium taxes
       ratio               3.5%    3.7%  (0.2)pts     3.6%     3.6%        -
    -------------------------------------------------------------------------
      General expenses
       ratio               9.8%   10.0%  (0.2)pts    10.0%    10.1% (0.1)pts
    -------------------------------------------------------------------------
    Combined ratio        91.6%   86.7%   4.9 pts    91.6%    83.3%  8.3 pts
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Third quarter 2007

    Direct premiums written declined by 3.8% in commercial lines, reflecting
a shift in the portfolio mix to smaller commercial accounts with lower annual
premiums. Written insured risks were flat in the third quarter. Softer growth
in commercial lines reflects the competitiveness of the commercial segment.
ING Canada's commercial book is focused on small- to medium-sized accounts,
which are less price-sensitive than larger commercial accounts, providing some
insulation in a more aggressive pricing environment though rates have softened
in the segment.
    Underwriting income was down mainly due to an increase in severity in
commercial non-auto and a decrease in favourable prior year claims
development, mainly in commercial non-auto. Frequency was up slightly in
commercial auto, but severity was down.

    Year to date 2007

    Direct premiums written were down 3.1% in the first nine months of the
year primarily due to a change in portfolio mix, referred to in the third
quarter discussion. The number of written insured risks was flat. Underwriting
income was down significantly year to date principally due to an increase in
severity of current year claims in commercial non-auto caused by weather-
related events and an increase in large losses. In commercial auto, current
accident year claims improved year-over-year due to lower severity but prior
year claims development was less favourable.

    Corporate and distribution

    Our corporate and distribution segment primarily includes the results of
our brokerage operations (Canada Brokerlink, Grey Power and Equisure) and
other activities.

    
    Table 9
    -------------------------------------------------------------------------
                            Three months ended        Nine months ended
                              September 30               September 30
    -------------------------------------------------------------------------
                          2007     2006   Change     2007     2006   Change
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Distribution income    25.9     25.7     0.8%     82.2     75.0     9.6%
    -------------------------------------------------------------------------
    Distribution expenses  21.3     19.0    12.1%     64.0     51.3    24.8%
    -------------------------------------------------------------------------
    Distribution earnings   4.6      6.7  (31.3)%     18.2     23.7  (23.2)%
    -------------------------------------------------------------------------
    Other income, net       1.6      2.0  (20.0)%     24.3     10.5   131.4%
    -------------------------------------------------------------------------
    Interest on debt          -      1.4 (100.0)%        -      5.3 (100.0)%
    -------------------------------------------------------------------------
    Income before income
     taxes                  6.2      7.3  (15.1)%     42.5     28.9    47.1%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Other income for the first nine months includes a reduction to a provision
established for a prior year divestiture that became redundant. The total
reduction was $28.0 million in 2007, which was recorded in the first and
second quarters.

    SECTION 6 - SUMMARY OF QUARTERLY RESULTS

    Table 10

    -------------------------------------------------------------------------
                                               2007                    2006
    -------------------------------------------------------------------------
                                    Q3          Q2          Q1          Q4
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Written insured
     risks (thousands)           1,273.1     1,399.7       950.4     1,051.1
    -------------------------------------------------------------------------
    Direct premiums written
     (excluding pools)           1,091.2     1,209.8       846.3       955.6
    -------------------------------------------------------------------------
    Total revenues               1,091.3     1,152.2     1,099.6     1,095.8
    -------------------------------------------------------------------------
    Underwriting income             28.7        92.3        40.3        62.3
    -------------------------------------------------------------------------
    Net income                      92.0       194.3       126.2       109.4
    -------------------------------------------------------------------------
    Combined ratio (%)              97.1        90.6        95.8        93.6
    -------------------------------------------------------------------------
    EPS-basic/diluted
     (dollars)                      0.74        1.56        0.95        0.82
    -------------------------------------------------------------------------
    (Favourable) prior year
     claims development            (20.7)      (37.6)      (12.2)      (24.3)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                                               2006                    2005
    -------------------------------------------------------------------------
                                    Q3          Q2          Q1          Q4
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Written insured
     risks (thousands)           1,242.9     1,356.1       914.9     1,012.7
    -------------------------------------------------------------------------
    Direct premiums written
     (excluding pools)           1,059.1     1,166.4       812.5       913.6
    -------------------------------------------------------------------------
    Total revenues               1,080.2     1,096.7     1,133.8     1,111.6
    -------------------------------------------------------------------------
    Underwriting income             95.9       165.6        79.9       126.3
    -------------------------------------------------------------------------
    Net income                     156.8       205.9       185.9       196.9
    -------------------------------------------------------------------------
    Combined ratio (%)              89.9        82.7        91.5        86.9
    -------------------------------------------------------------------------
    EPS-basic/diluted
     (dollars)                      1.17        1.54        1.39        1.47
    -------------------------------------------------------------------------
    (Favourable) prior year
     claims development            (69.1)      (39.5)      (37.0)      (49.0)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Seasonal indicator

    The insurance business is seasonal in nature. While our underwriting
revenues are generally stable from quarter to quarter, underwriting income is
typically higher in the second and third quarters of each year. This is driven
by lower combined ratios in those periods, which is reflected in the seasonal
index below.
    The seasonal indicator is a non-GAAP measure which represents the ratio
of the quarterly combined ratio to the annual combined ratio.

    
    Table 11

    -------------------------------------------------------------------------
                                                                    Four-year
                                2006      2005      2004      2003    average
    -------------------------------------------------------------------------
         Q1                     1.02      1.02      1.10      1.06      1.05
    -------------------------------------------------------------------------
         Q2                     0.93      0.94      0.92      0.95      0.93
    -------------------------------------------------------------------------
         Q3                     1.01      1.02      0.98      0.96      0.99
    -------------------------------------------------------------------------
         Q4                     1.05      1.01      1.01      1.04      1.03
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    SECTION 7 - FINANCIAL CONDITION

    7.1 Balance Sheet Analysis

    The table below shows the balance sheets as reported on December 31, 2006,
January 1, 2007 (after adopting the new accounting standards) and September
30, 2007.

    Table 12
    -------------------------------------------------------------------------
                                                             As at
    -------------------------------------------------------------------------
                                                Sept. 30,   Jan. 1,  Dec. 31,
                                                    2007      2007      2006
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Cash and cash equivalents                        1.4     125.9     125.9
    -------------------------------------------------------------------------
    Invested assets                              7,266.8   7,503.9   7,241.9
    -------------------------------------------------------------------------
    Premiums receivables                         1,506.3   1,366.9   1,366.9
    -------------------------------------------------------------------------
    Accrued interest and dividend income            57.5      51.1      51.1
    -------------------------------------------------------------------------
    Other receivables                              347.3     282.8     282.8
    -------------------------------------------------------------------------
    Deferred acquisition costs                     386.8     372.8     372.8
    -------------------------------------------------------------------------
    Reinsurance assets                             268.5     290.1     288.1
    -------------------------------------------------------------------------
    Other assets                                   260.0     246.0     246.0
    -------------------------------------------------------------------------
    Income taxes receivable                        132.4      54.1      54.1
    -------------------------------------------------------------------------
    Future income tax asset                         74.0      55.5     119.2
    -------------------------------------------------------------------------
    Intangible assets and goodwill                 223.0     228.5     228.5
    -------------------------------------------------------------------------
    Total assets                                10,524.0  10,577.6  10,377.3
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Claims liabilities                           3,979.2   3,841.5   3,823.5
    -------------------------------------------------------------------------
    Unearned premiums                            2,403.9   2,264.1   2,264.1
    -------------------------------------------------------------------------
    Other liabilities                              918.4     922.4     844.9
    -------------------------------------------------------------------------
    Income taxes payable                            24.1      24.0      24.0
    -------------------------------------------------------------------------
    Total liabilities                            7,325.6   7,052.0   6,956.5
    -------------------------------------------------------------------------
    Share capital                                1,101.9   1,183.9   1,183.9
    -------------------------------------------------------------------------
    Contributed surplus                             98.3      93.5      93.5
    -------------------------------------------------------------------------
    Retained earnings                            2,029.1   2,139.1   2,143.4
    -------------------------------------------------------------------------
    AOCI                                           (30.9)    109.1         -
    -------------------------------------------------------------------------
    Total shareholders' equity                   3,198.4   3,525.6   3,420.8
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity  10,524.0  10,577.6  10,377.3
    -------------------------------------------------------------------------
    Book value per share                           25.70     26.40     25.58
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The following analysis of the balance sheet is divided in two sections,
one describing the impact of the adoption of new accounting standards as
described below on January 1, 2007 and one describing the significant
variances on selected items at the end of the third quarter 2007.

    Impact of the adoption of new accounting standards on January 1, 2007

    The adoption of new accounting standards on January 1, 2007 has increased
net assets by $104.8 million as follows:

    
    -   Invested assets increased by $262.0 million to reflect the difference
        between their book values and fair values on December 31, 2006. Also
        included is the value of derivatives embedded in our preferred shares
        which was not previously recognized for $71.6 million, as well as a
        $9.2 million reduction of fair values to reflect bid/ask prices
        rather than closing prices in the valuation of investments.
        Historically, we disclosed fair values of invested assets based on
        closing prices.

    -   Claims liabilities increased by $18.0 million to reflect discounting
        at rates reflecting market conditions rather than book rates as was
        the case in prior periods. The adjustment also affects reinsurance
        assets as the reinsurers' share of the claims liabilities was
        increased by $2.0 million for the same reasons.

    -   Other liabilities increased by $77.6 million to reflect the
        difference between the book values and fair values of short
        securities and the value of the embedded derivatives discussed above
        of $71.6 million.

    -   The changes above were all tax-affected and as a result, the future
        income tax asset was reduced by $63.7 million.

    The impact of the above changes is reflected in different accounts of
shareholders' equity depending on whether they are classified as held-for-
trading or available for sale. In summary:

    -   Retained earnings were reduced by $4.3 million, due to the changes
        which relate to instruments classified or designated as held-for-
        trading and net claims liabilities.

    -   AOCI, a new component of shareholders' equity, increased by
        $109.1 million being the change related to assets classified as
        available for sale (see table 14).
    

    Review of selected accounts at the end of the third quarter compared to
    January 1, 2007

    Invested assets decreased $237.1 million mainly due to the share buyback
of $501.1 million in the first quarter. At September 30, 2007, ING Canada held
no commercial paper.
    Other receivables, deferred acquisition costs and unearned premiums are
higher due to the seasonality of sales between quarters. A portion of deferred
acquisition costs related to prior acquisitions were reclassified to goodwill
during the second quarter.
    Income taxes receivable are higher due to the timing of tax payments.
    Claims liabilities are up slightly in the quarter due to a higher number
of policies in force. Note 4 of the Unaudited Interim Consolidated Financial
Statements provides a reconciliation of the changes in claims liabilities.

    Market yield adjustment

    Claims liabilities are measured using accepted actuarial practice, taking
into account the time value of money and provisions for adverse deviations.
Changes in these estimates will affect the valuation of claims liabilities.
Prior to 2007, claims liabilities were discounted using book rates which were
generally adjusted annually. Claims liabilities are now discounted at rates
reflecting current market conditions, following the adoption of new accounting
principles introduced at the beginning of the year. A significant increase in
interest rates, primarily in the second quarter, resulted in a $40.5 million
reduction of claims liabilities which had a positive impact on underwriting
income and net operating income, year to date. Of the $40.5 million year to
date, $30.7 million affected prior year claims development.
    Under the new accounting standards, we have classified certain debt
securities as held-for-trading. The effect of changes in the market value of
these securities is reflected in income. Year to date, the impact on net
income was minimal because the adjustments to held-for-trading debt securities
and claims liabilities largely offset each other.
    The following table shows the development of the claims liabilities for
the 10 most recent accident years, with subsequent development during the
periods. The original reserve estimates are revaluated quarterly for
redundancy or deficiency. This revaluation is based on actual payments in full
or partial settlement of claims as well as on current estimates of claims
liabilities for claims still open or claims still unreported.

    
    Table 13
    -------------------------------------------------------------------------
                                         Accident Year
    -------------------------------------------------------------------------
                     Total      2006      2005      2004      2003      2002
    -------------------------------------------------------------------------
    Original reserve         1,178.0   1,118.8   1,117.7     973.2     838.6
    -------------------------------------------------------------------------
    (Favourable)
     unfavourable
     development
     during
     Q3 2007         (20.7)    (11.1)     (4.9)    (12.7)      0.1       3.5
    -------------------------------------------------------------------------
    As a % of
     original
     reserve                   (0.9)%    (0.4)%    (1.1)%      0.0%      0.4%
    -------------------------------------------------------------------------
    (Favourable)
     unfavourable
     development
     during
     YTD 2007        (70.5)     6.4     (25.2)    (29.4)      (3.9)      1.0
    -------------------------------------------------------------------------
    As a % of
     original
     reserve                    0.5%    (2.3)%     (2.6)%    (0.4)%      0.1%
    -------------------------------------------------------------------------
    Cumulative
     development                6.4     (83.1)    (220.4)   (178.4)    (17.3)
    -------------------------------------------------------------------------
    As a % of
     original
     reserve                    0.5%    (7.4)%    (19.7)%   (18.3)%    (2.1)%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    ---------------------------------------------------------------
                                     Accident Year
    ---------------------------------------------------------------
                      2001      2000      1999      1998   1997 & -
    ---------------------------------------------------------------
    Original reserve 729.0     655.5     587.0     548.1   1,276.9
    ---------------------------------------------------------------
    (Favourable)
     unfavourable
     development
     during
     Q3 2007          (0.5)      3.8      (2.6)      6.2      (2.3)
    ---------------------------------------------------------------
    As a % of
     original
     reserve         (0.1)%      0.6%    (0.4)%      1.1%    (0.2)%
    ---------------------------------------------------------------
    (Favourable)
     unfavourable
     development
     during
     YTD 2007         (6.0)     (0.9)      3.6      (6.2)     (9.9)
    ---------------------------------------------------------------
    As a % of
     original
     reserve         (0.8)%    (0.1)%      0.6%    (1.1)%    (0.8)%
    ---------------------------------------------------------------
    Cumulative
     development     43.0      35.5       43.2     (14.6)   (179.9)
    ---------------------------------------------------------------
    As a % of
     original
     reserve          5.9%      5.4%       7.4%    (2.7)%   (14.1)%
    ---------------------------------------------------------------
    ---------------------------------------------------------------
    

    The $18.0 million decrease in direct claims liabilities related to the
transition to new accounting standards was added to the opening claims
liabilities but is reflected in the table above only for the portion
($4.9 million) that relates to the 2006 accident year. Other original reserve
amounts have not been restated in this table.
    Shareholders' equity was reduced significantly as a result of the share
buyback. The total cost of the purchase was $501.1 million, including expenses
net of income taxes. An amount of $82.0 million was deducted from share
capital and the remainder from retained earnings. The unaudited interim
statement of changes in shareholders' equity provides a complete
reconciliation of the changes that occurred during the quarter. There were
124,472,761 outstanding common shares on September 30, 2007 and November 6,
2007.
    Accumulated other comprehensive income (loss) is a new component of
shareholders' equity. It reflects the unrealized gains or losses related to
available for sale assets.

    
    Table 14
    -------------------------------------------------------------------------
                                              Nine months ended September 30
    -------------------------------------------------------------------------
                                                                       After-
                                                   Pre-tax    Taxes      tax
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Unrealized gains as reported on
     December 31, 2006                               201.3      n/a      n/a
    -------------------------------------------------------------------------
    Items not included in AOCI                        (2.8)     n/a      n/a
    -------------------------------------------------------------------------
    Reduction to recognize fair values at the
     bid/ask price                                    (9.2)     n/a      n/a
    -------------------------------------------------------------------------
    Transfers to retained earnings for
     held-for-trading instruments                    (14.8)     n/a      n/a
    -------------------------------------------------------------------------
    Opening AOCI balance on January 1, 2007          174.5    (65.4)   109.1
    -------------------------------------------------------------------------
    Changes in fair values during the period         (97.7)    33.6    (64.1)
    -------------------------------------------------------------------------
    Realized gains reclassified to income during
     the period                                     (122.6)    46.7    (75.9)
    -------------------------------------------------------------------------
    AOCI as at September 30, 2007                    (45.8)    14.9    (30.9)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The table above shows how unrealized gains reported as at December 31,
2006 have been treated at the transition date and subsequently in the first
nine months of the year. On transition, the fair values were adjusted
downwards to reflect bid/ask prices rather than closing prices. Unrealized
gains on held-for-trading instruments were transferred to retained earnings on
January 1, 2007 consistent with the new accounting standards. These unrealized
gains will not flow through the income statement in the future.
    Unrealized gains on available for sale assets were $174.5 million after
transition on January 1, 2007. During the first nine months of the year, the
Company sold available for sale assets resulting in realized net gains of
$75.9 million. These were transferred to net gains on invested assets and
other gains in the income statement. Available for sale assets lost value
during the first nine months of the year due to unfavourable capital market
conditions, representing a reduction of $64.1 million in AOCI.

    
    7.2 Liquidity and Capital Resources

    Cash Flows and Liquidities

    Table 15
    -------------------------------------------------------------------------
                            Three months ended        Nine months ended
                               September 30              September 30
    -------------------------------------------------------------------------
    Selected inflows and
     (outflows)           2007     2006   Change     2007     2006   Change
    -------------------------------------------------------------------------
    Operating
     activities:
    -------------------------------------------------------------------------
    Cash provided by
     operating
     activities           299.2    196.0     52.6%   403.8    327.0     23.5%
    -------------------------------------------------------------------------
    Investing activities:
    Proceeds from
     the sale of
     invested assets,
     net of (purchases)  (255.2)  (177.5)    43.8%   103.5   (362.5) (128.6)%
    -------------------------------------------------------------------------
    Financing activities:
      Dividends paid      (33.6)   (33.4)     0.6%  (103.3)  (100.3)     3.0%
    -------------------------------------------------------------------------
      Redemption of
       common shares
       for cancellation       -        -        -   (501.1)       -       n/a
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Cash at the end of
     the quarter            1.4     12.8   (89.1)%     1.4     12.8   (89.1)%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    In the third quarter and year to date, cash flows from operating
activities were entirely reinvested except for dividends paid.
    In the first quarter, the share buyback used $501.1 million of cash. Year
to date, dividends paid used another $103.3 million. To cover these outflows,
the Company sold invested assets of $103.5 million, most of which were held in
short-term notes.

    Capital Management

    The Company has ample capital to support business growth with our
insurance subsidiaries having capital of $459.5 million in excess of the
minimum supervisory target of 150%, as calculated under the Minimum Capital
Test ("MCT") at September 30, 2007. During the third quarter, the P&C
subsidiaries paid dividends of $19.0 million net of capital injections to the
holding company, thus reducing the excess over MCT.
    The following table presents the minimum capital test of our insurance
subsidiaries with a total for all companies.

    
    Table 16
    -------------------------------------------------------------------------
    MCT - P&C COMPANIES
    -------------------------------------------------------------------------
                                                    ING
                   ING     Belair     Nordic      Novex  Trafalgar
             Insurance  Insurance  Insurance  Insurance  Insurance     Total
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    At
     September
     30, 2007
    -------------------------------------------------------------------------
    Total
     capital
     available   959.8      197.7      835.1      148.7      132.0   2,273.3
    -------------------------------------------------------------------------
    Total capital
     required    535.5       97.2      448.2       68.1       60.2   1,209.2
    -------------------------------------------------------------------------
    Excess
     capital     424.3      100.5      386.9       80.6       71.8   1,064.1
    -------------------------------------------------------------------------
    MCT %        179.2%     203.5%     186.3%     218.4%     219.2%    188.0%
    -------------------------------------------------------------------------
    Excess at
     150%        156.5       51.9      162.8       46.6       41.7     459.5
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    At
     December
     31, 2006
    -------------------------------------------------------------------------
    Total
     capital
     available 1,073.7      282.0      966.8       49.3       61.7   2,433.5
    -------------------------------------------------------------------------
    Total
     capital
     required    554.5      104.8      466.8       14.4       18.2   1,158.7
    -------------------------------------------------------------------------
    Excess
     capital     519.2      177.2      500.0       34.9       43.5   1,274.8
    -------------------------------------------------------------------------
    MCT %        193.6%     269.0%     207.1%     341.2%     338.8%    210.0%
    -------------------------------------------------------------------------
    Excess at
     150%        242.0      124.8      266.7       27.6       34.4     695.5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    On February 13, 2007, the Board of Directors increased the Company's
quarterly dividend by $0.02 to $0.27, an 8.0% increase. A quarterly cash
dividend of $0.27 per common share was paid on March 30, 2007, June 29, 2007
and September 28, 2007.

    Credit ratings

    ING Canada Group has an A+ (Superior) rating from A.M. Best, which was
reaffirmed on July 3, 2007. Our primary insurance subsidiaries are rated A+ by
Standard & Poor's, which was reaffirmed on October 31, 2007. Although the
Company does not have any senior unsecured debt, DBRS has assigned a rating of
A (low).

    SECTION 8 - ACCOUNTING AND DISCLOSURE MATTERS

    8.1 Internal Control over Financial Reporting

    No changes in the Company's internal control over financial reporting
occurred during the interim period ending on September 30, 2007 that have
materially affected, or are reasonably likely to materially affect, the
Company's internal control over financial reporting.

    8.2 Critical Accounting Estimates and Assumptions

    There are no new critical accounting estimates or assumptions compared to
the information provided in the annual MD&A. However, some estimates were
modified or applied differently following the adoption of the new accounting
standards related to financial instruments:

    
    -   Net claims liabilities are now discounted using a rate reflecting
        market condition instead of a book rate. The value of the net claims
        liabilities carried on the consolidated balance sheet was then
        impacted.
    -   The changes in fair values of invested assets designated or
        classified as held-for-trading are now fully recognized in the
        consolidated statement of income, therefore impairment does not apply
        to these assets any longer. The impairment of invested assets is then
        applicable only to invested assets designated as available for sale
        and to loans.
    -   The derivatives embedded in our preferred shares are now carried
        separately from these preferred shares. The fair values of these
        embedded derivatives are determined based on valuation techniques
        requiring judgment. See table 5 in section 4.
    

    8.3 Impact of New Accounting Standards

    Financial Instruments, Comprehensive Income and Hedges

    Effective January 1, 2007, the Company adopted the new provisions of the
Canadian Institute of Chartered Accountants ("CICA") handbook on accounting
for financial instruments, including sections 3855 "Financial Instruments -
Recognition and Measurement", 3865 "Hedges" and 1530 "Comprehensive income".
    The new provisions affected our accounting for financial instruments and
hedges and introduced a new statement of comprehensive income and a new
component of AOCI within our shareholders' equity. The impact on the Company's
financial statements has been fully discussed earlier in the MD&A.
Complementary information is presented below.
    As per the standards, we classified or designated our financial assets
and liabilities as held-for-trading, available for sale or loans and
receivables.

    
    -   For assets classified as available for sale, the unrealized changes
        in fair values are reflected in other comprehensive income until the
        financial asset is disposed of, or becomes impaired. A portion of
        unrealized net gains as at January 1, 2007, was accounted for as an
        opening adjustment to AOCI.
    -   We designated a portion of our invested assets supporting net claims
        liabilities, as held-for-trading, under which the unrealized gains
        and losses are recognized in income. Such classification reduces
        income statement volatility related to the changes in fair values of
        net claims liabilities as described below. Other financial assets and
        liabilities, including all derivatives and embedded derivatives, are
        also classified as held-for-trading according to the new standards.
        Unrealized net gains related to investments designated or classified
        as held-for-trading as at January 1, 2007, have been accounted for as
        an adjustment to retained earnings.
    -   The net claims liabilities have been discounted using a rate
        reflecting market conditions instead of a book rate and an adjustment
        to the amount of net claims liabilities as at January 1, 2007, has
        been recorded to retained earnings following the change.
    -   Certain instruments have been designated as loans and receivables.
        These classifications had no significant impact as the invested
        assets continue to be carried at amortized cost.
    -   For our insurance subsidiaries, the Superintendent of Financial
        Institutions, Canada has imposed certain restrictions under guideline
        D-10, on the classification of assets as held-for-trading and we have
        respected these requirements.
    

    Accounting Changes

    Effective January 1, 2007, we applied the revised provisions of the CICA
handbook section 1506 "Accounting changes". Accordingly, voluntary changes in
accounting policies will be made only if they result in reliable and more
relevant information.

    Variability in Variable Interest Entities

    Effective January 1, 2007, we applied the Emerging Issues Committee (EIC)
Abstract No. 163, "Determining the Variability to be Considered in Applying
AcG-15". This EIC provides additional clarification on how to analyze and
consolidate variable interest entities. The impact was not significant on our
consolidated financial statements.

    Harmonization of Canadian GAAP to International Financial Reporting
    Standards

    In 2005, the Accounting Standards Board finalized its strategic plan for
financial reporting in Canada whereby Canadian GAAP will converge with
International Financial Reporting Standards over a five-year period. After
this transitional period, we will cease to use Canadian GAAP. The Company will
continue to monitor the changes resulting from this transition.

    SECTION 9 - RISK MANAGEMENT PRINCIPLES AND RESPONSIBILITIES

    There were no significant changes from the information provided in the
annual MD&A.

    SECTION 10 - OTHER MATTERS

    10.1 Related Party Transactions

    We have ongoing transactions with related parties consisting mostly of:

    
    -   Management and advisory services;
    -   Reinsurance by an affiliated company; and
    -   Financing.
    

    These transactions are carried out in the normal course of operations and
are measured at the amount of consideration paid or received as established
and agreed by the related parties. We believe that such exchange amounts
approximate fair value.
    In addition, we have related party transactions with investees accounted
for as long-term investments. These transactions consist primarily of loans
and commission expenses.
    Note 6 to the accompanying Unaudited Interim Consolidated Financial
Statements provides additional information on related party transactions.

    10.2 Cautionary Note Regarding Forward-Looking Statements

    Certain statements in this report about our current and future plans,
expectations and intentions, results, levels of activity, performance, goals
or achievements or any other future events or developments are 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 similar words or phrases identify such forward-looking statements.
    Forward-looking statements are based on estimates and assumptions made by
us based on our experience and view 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 the forward-looking statements. These factors include, without
limitation, the following: our ability to implement our strategy or operate
our business as we expect; our ability to accurately assess the risks
associated with the insurance policies that we write; unfavourable capital
market developments or other factors which could affect our investments; the
cyclical nature of the 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 significant 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 dependence on the results of
operations of our subsidiaries; the limited trading history of our common
shares; 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 accept no responsibility to update or revise any forward-looking
statements as a result of new information, future events or otherwise, except
as required by law.

    
    ING Canada Inc.

    Unaudited interim consolidated financial statements

    Third quarter 2007


    ING Canada Inc.

    UNAUDITED CONSOLIDATED BALANCE SHEET
    (in thousands of dollars)

    -------------------------------------------------------------------------
                                                     September      December
                                                          2007          2006
    -------------------------------------------------------------------------

    Assets
    Cash and cash equivalents                     $      1,439  $    125,954
    Invested assets (note 3)
      Debt securities                                3,760,781     3,972,243
      Equity securities                              3,301,524     3,040,848
      Loans and equity investments                     204,468       228,847
                                                  ---------------------------
                                                     7,266,773     7,241,938

    Premium receivables                              1,506,259     1,366,942
    Accrued interest and dividend income                57,542        51,068
    Other receivables                                  347,330       282,828
    Deferred acquisition costs                         386,778       372,772
    Reinsurance assets                                 268,489       288,052
    Other assets                                       260,001       245,992
    Income taxes receivable                            132,440        54,134
    Future income tax asset                             73,953       119,196
    Intangible assets                                   63,561        66,294
    Goodwill                                           159,474       162,099
    -------------------------------------------------------------------------

                                                  $ 10,524,039  $ 10,377,269
    -------------------------------------------------------------------------

    Liabilities
    Claims liabilities (note 4)                   $  3,979,193  $  3,823,539
    Unearned premiums                                2,403,899     2,264,118
    Other liabilities                                  918,373       844,873
    Income taxes payable                                24,154        23,984
                                                  ---------------------------
                                                     7,325,619     6,956,514
    Shareholders' equity
    Share capital (note 5)                           1,101,881     1,183,846
    Contributed surplus                                 98,317        93,534
    Retained earnings                                2,029,163     2,143,375
    Accumulated other comprehensive loss               (30,941)            -
                                                  ---------------------------
                                                     3,198,420     3,420,755
    -------------------------------------------------------------------------

                                                  $ 10,524,039  $ 10,377,269
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    ING Canada Inc.

    UNAUDITED INTERIM CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
     INCOME
    (in thousands of dollars, except as otherwise noted)

    -------------------------------------------------------------------------
                            For the three months         For the nine months
                              ended September 30          ended September 30
    -------------------------------------------------------------------------
                              2007          2006          2007          2006
    -------------------------------------------------------------------------

    Revenues
    Premiums written
      Direct          $  1,081,161  $  1,038,132  $  3,140,312  $  3,026,781
      Ceded                 23,658        24,431        72,262        72,470
                      -------------------------------------------------------
      Net                1,057,503     1,013,701     3,068,050     2,954,311
    Changes in net
     unearned premiums     (63,473)      (59,248)     (140,692)     (107,265)
                      -------------------------------------------------------
    Net premiums
     earned                994,030       954,453     2,927,358     2,847,046
    Interest and
     dividend income        89,527        84,823       272,977       251,118
    Net (losses) gains
     on invested
     assets and other
     gains                  (2,836)       35,757        76,843       178,219
    Distribution and
     other                  10,531         5,209        66,014        34,249
    -------------------------------------------------------------------------
                         1,091,252     1,080,242     3,343,192     3,310,632
    Expenses
    Underwriting
      Claims               685,713       576,521     1,912,573     1,631,854
      Commissions          135,574       139,108       436,774       457,030
      Premium taxes         34,298        33,894       101,899        99,162
      General expenses     109,717       108,999       314,759       317,485
                      -------------------------------------------------------
                           965,302       858,522     2,766,005     2,505,531
    Distribution and
     other                   9,148         1,673        38,148        16,960
    Interest                     -         1,328             -         5,309
                      -------------------------------------------------------
                           974,450       861,523     2,804,153     2,527,800

    -------------------------------------------------------------------------
    Income before
     income taxes          116,802       218,719       539,039       782,832
    Income taxes            24,801        61,884       126,475       234,155
    -------------------------------------------------------------------------

    Net income        $     92,001  $    156,835  $    412,564  $    548,677
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Unrealized losses
     on available for
     sale securities
      Increase during
       the period          (43,689)            -       (97,665)            -
      Income taxes          11,068             -        33,630             -
                      -------------------------------------------------------
                           (32,621)            -       (64,035)            -
    Reclassified to
     income
      Realized gains       (14,540)            -      (122,662)            -
      Income taxes           5,665             -        46,684             -
                      -------------------------------------------------------
                            (8,875)            -       (75,978)            -
    -------------------------------------------------------------------------
    Other comprehensive
     loss                  (41,496)            -      (140,013)            -

    Comprehensive
     income           $     50,505  $          -  $    272,551  $          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings per
     share, basic
     and diluted
     (dollars)        $       0.74  $       1.17  $       3.24  $       4.10
    Dividends per
     share (dollars)          0.27          0.25          0.81          0.75
    Basic and diluted
     average number of
     common shares
     (in thousands)        124,473       133,732       127,457       133,732
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    ING Canada Inc.

    UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
    EQUITY
    (in thousands of dollars)

    -------------------------------------------------------------------------
                                                      Accumulated
                                                         other
                     Share   Contributed   Retained  comprehensive
                    capital    surplus     earnings  income (loss)   Total
    -------------------------------------------------------------------------

    Balance as at
     December 31,
     2006         $1,183,846  $   93,534  $2,143,375  $        -  $3,420,755
    Transition
     adjustments
     (note 2)              -           -      (4,274)    109,072     104,798
    Comprehensive
     income                -           -     412,564    (140,013)    272,551
    Common shares
     purchased for
     cancellation
     (note 5)        (81,965)          -    (419,179)          -    (501,144)
    Dividends paid         -           -    (103,323)          -    (103,323)
    Stock-based
     compensation          -       4,783           -           -       4,783
    -------------------------------------------------------------------------
    Balance as at
     September 30,
     2007         $1,101,881  $   98,317  $2,029,163  $  (30,941) $3,198,420

    -------------------------------------------------------------------------

    Balance as at
     December 31,
     2005         $1,183,846  $   89,713  $1,619,054  $        -  $2,892,613
    Net income             -           -     548,677           -     548,677
    Dividends paid         -           -    (100,299)          -    (100,299)
    Stock-based
     compensation          -       3,038           -           -       3,038
    -------------------------------------------------------------------------
    Balance as at
     September 30,
     2006         $1,183,846  $   92,751  $2,067,432  $        -  $3,344,029

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
    (in thousands of dollars)

    -------------------------------------------------------------------------
                            For the three months         For the nine months
                              ended September 30          ended September 30
    -------------------------------------------------------------------------
                              2007          2006          2007          2006
    -------------------------------------------------------------------------

    Operating
     activities
    Net income        $     92,001  $    156,835  $    412,564  $    548,677
    Adjustments for
     non-cash items         75,337         3,048       125,702       (31,664)
    Changes in net
     claims
     liabilities            97,427        46,424       158,380        28,774
    Changes in other
     operating assets
     and liabilities        34,470       (10,263)     (292,801)     (218,819)
                      -------------------------------------------------------
    Cash provided by
     operating
     activities            299,235       196,044       403,845       326,968

    Investing
     activities
    Proceeds from sale
     of invested
     assets              1,710,997     4,283,491     9,465,215    13,991,732
    Purchase of
     invested assets    (1,966,190)   (4,460,971)   (9,361,667)  (14,354,253)
    Proceeds from sale
     and leaseback of
     properties                  -           174             -        29,977
    Purchase of
     property and
     equipment and
     other                 (14,609)      (31,111)      (27,441)      (95,457)
                      -------------------------------------------------------
    Cash (used in)
     provided by
     investing
     activities           (269,802)     (208,417)       76,107      (428,001)

    Financing
     activities
    Purchase of common
     shares for
     cancellation                -             -      (501,144)            -
    Dividends paid         (33,608)      (33,433)     (103,323)     (100,299)
    Debt repayment               -      (127,000)            -      (127,000)
                      -------------------------------------------------------
    Cash used in
     financing
     activities            (33,608)     (160,433)     (604,467)     (227,299)

    -------------------------------------------------------------------------
    Net decrease in
     cash and cash
     equivalents            (4,175)     (172,806)     (124,515)     (328,332)
    Cash and cash
     equivalents,
     beginning of
     period                  5,614       185,612       125,954       341,138
    -------------------------------------------------------------------------

    Cash and cash
     equivalents, end
     of period        $      1,439  $     12,806  $      1,439  $     12,806
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    ING Canada Inc.

    NOTES TO UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
    (in thousands of dollars, except as otherwise noted)
    -------------------------------------------------------------------------

    1.  Basis of presentation

        These interim consolidated financial statements have been prepared in
        accordance with Canadian generally accepted accounting principles for
        interim financial statements and do not include all the information
        required for complete financial statements. Except as described
        below, these interim consolidated financial statements use the same
        accounting policies as were used for the Company's consolidated
        financial statements for the year ended December 31, 2006 and should
        be read in conjunction with the Company's annual consolidated
        financial statements for the year then ended.

    2.  New accounting policies

        a) Financial instruments, comprehensive income and hedges

        The Company adopted on January 1, 2007, the new provisions of the
        Canadian Institute of Chartered Accountants ("CICA") handbook on
        accounting for financial instruments, including sections 3855
        "Financial Instruments - Recognition and Measurement", 3865 "Hedges"
        and 1530 "Comprehensive income".

        The impact of these changes, as explained in detail below, was
        significant on the Company's interim consolidated balance sheet and
        note disclosures. The impact was however not significant on the
        Company's interim consolidated statement of income except for the
        recognition of unrealized gains and losses on held-for-trading
        securities and embedded derivatives (see table 7.1). The Company also
        changed some grouping and descriptions in its consolidated financial
        statements to better disclose its financial position and results.

        i) Transition adjustments

        The new standards were applied on January 1, 2007 on a retroactive
        basis without prior period restatement, in accordance with the
        applicable transitional provisions. The significant changes were:

        1. Classification or designation of all financial assets and
           liabilities in one of these three categories:

              -  available for sale ("AFS")
              -  held-for-trading ("HFT")
              -  loans and receivables

        2. Revaluation of most of the AFS assets and all the HFT assets and
           liabilities at their fair value and these, under the new
           standards, are determined based on the bid or ask price,
           respectively. The Company was previously disclosing fair values
           based on the closing price. The differences between the book
           values at December 31, 2006 and the fair values at January 1, 2007
           were recorded either in opening retained earnings or opening
           accumulated other comprehensive income ("AOCI"), according to the
           classification or designation of the specific asset or liability.

        3. As a consequential effect of the changes above, the claims
           liabilities, net of reinsurance ("net claims liabilities") were
           recalculated at January 1, 2007 using a rate reflecting market
           condition instead of a book rate. The difference between the
           amount of net claims at December 31, 2006 and at January 1, 2007
           was recorded as a transition adjustment in opening retained
           earnings.


        Table 2.1   Transition adjustments per balance sheet item
        ---------------------------------------------------------------------
                                         December 31, Transition   January 1,
                                                2006 adjustments        2007
        ---------------------------------------------------------------------
        Assets
        Invested assets
          Debt securities                  3,972,243      21,760   3,994,003
          Equity securities                3,040,848     240,250   3,281,098
          Mortgage loans                      57,218           -      57,218
          Broker loans and equity
           investments                       171,629           -     171,629
                                         ------------------------------------
                                           7,241,938     262,010   7,503,948
        Reinsurance assets                   270,369       2,032     272,401
        Future income tax asset              112,187     (63,682)     48,505
        ---------------------------------------------------------------------
                                                         200,360
        ---------------------------------------------------------------------
        Liabilities
        Other liabilities
          Short securities                    57,093       5,142      62,235
          Derivative financial
           instruments                         3,522         824       4,346
          Embedded derivatives                     -      71,636      71,636
        Claims liabilities                 3,823,539      17,960   3,841,499
                                         ------------------------------------
                                                          95,562
        Shareholders' equity
        Retained earnings                  2,143,375      (4,274)  2,139,101
        Accumulated other comprehensive
         income                                    -     109,072     109,072
                                         ------------------------------------
                                                         104,798
        ---------------------------------------------------------------------
                                                         200,360
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------


        Table 2.2   Classification and designation at January 1, 2007
        ---------------------------------------------------------------------
                                 Classified Designated
                             AFS     as HFT     as HFT      Loans      Total
        ---------------------------------------------------------------------
        Debt securities
          Short-term
           notes         713,475          -          -          -    713,475
          Fixed income
           securities  1,248,268          -  2,032,260          -  3,280,528
        Equity
         securities
          Preferred
           shares      1,583,645          -          -          -  1,583,645
          Common
           shares      1,407,031     73,914    216,508          -  1,697,453
        Loans and
         equity
         investments
          Mortgage
           loans               -          -          -     57,218     57,218
          Broker loans
           and equity
           investments    14,764          -          -    156,865    171,629
        Short securities,
         derivative
         financial
         instruments
         and embedded
         derivatives           -   (138,217)         -          -   (138,217)
        ---------------------------------------------------------------------
        Total          4,967,183    (64,303) 2,248,768    214,083  7,365,731
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------


        Table 2.3   Transition adjustments at January 1, 2007 (net of income
                    taxes) per classification and designation

        ---------------------------------------------------------------------
                                 Classified Designated  Net claims
                             AFS     as HFT     as HFT  liabilities    Total
        ---------------------------------------------------------------------
        Retained
         earnings            678      1,106      4,624    (10,682)    (4,274)
        Accumulated
         other
         comprehensive
         income          109,072          -          -          -    109,072
        ---------------------------------------------------------------------
                         109,750      1,106      4,624    (10,682)   104,798
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        ii)  Accounting policies now applied

        As per the new accounting standards, the Company classified or
        designated all its financial assets and liabilities as AFS, HFT or
        loans and receivables as at January 1, 2007 (see current designation
        in table 3.1). Each of these categories involve different accounting
        treatments.

        The principal changes and consequential changes in the accounting due
        to the adoption of these accounting standards are described below.

        AFS financial assets
        --------------------
        AFS financial assets are carried at fair value on the consolidated
        balance sheet starting on the trade date and the changes in fair
        values are recorded, net of income taxes, in other comprehensive
        income (loss) ("OCI") until the financial asset is disposed of, or
        has become other than temporarily ("OTT") impaired. As long as an AFS
        asset is held and not OTT impaired, the gains and losses are not
        recognized in the consolidated statement of income (see current
        unrecognized gains and losses in table 3.2). When the asset is
        disposed of, or has become OTT impaired, the gain or loss is
        recognized in the consolidated statement of income as net gains on
        invested assets and other gains and, accordingly, the amount is
        deducted from OCI. Gains and losses on the sale of AFS assets are
        calculated on a first in, first out basis.

        HFT financial assets and liabilities
        ------------------------------------
        HFT financial assets and liabilities are carried at fair value on the
        consolidated balance sheet starting on the trade date and the changes
        in fair values are recorded in the consolidated statement of income
        as net gains on invested assets and other gains.

        HFT financial assets and liabilities are purchased or incurred with
        the intention of generating profits in the near term ("classified as
        HFT") or are voluntarily so designated by the Company ("designated as
        HFT").

        The Company designated a portion of its fixed income securities that
        are supporting net claims liabilities as HFT. This designation will
        reduce the volatility of the consolidated statement of income related
        to the fluctuations in fair values of underlying net claims
        liabilities. Common shares used in a specific strategy were also
        designated as HFT to offset the fluctuations in fair values of their
        underlying derivative financial instruments.

        Other financial assets and liabilities, including all derivative
        financial instruments and embedded derivatives (see below), were
        classified as HFT according to the new standards.

        Loans and receivables
        ---------------------
        Certain financial assets were designated as loans and receivables.
        These financial assets are accounted for at amortized cost using the
        effective interest rate method. As long as a loan or receivable is
        held and not impaired, the gains and losses are not recognized in the
        consolidated statement of income (see current unrecognized gains and
        losses in table 3.2). These designations are consistent with the
        accounting policies under the prior standards.

        Net claims liabilities
        ----------------------
        Net claims liabilities were previously discounted using the book
        yield of their supporting invested assets, which was consistent with
        the accounting treatment of these assets carried at amortized cost.
        Under the new accounting standards, these supporting assets are now
        carried at their fair value. As a consequential change of the
        adoption of the new accounting standards, the discount rate now used
        for net claims liabilities reflects the market yield of the
        supporting assets, which is consistent with the new accounting
        treatment of these assets.

        Derivative financial instruments and hedge accounting
        -----------------------------------------------------

        Derivative financial instruments are used for risk management ("non-
        trading") purposes and for trading purposes. Currency swaps and
        forwards, and certain total return swaps are held for non-trading
        purposes to mitigate foreign exchange and market risks. Interest rate
        futures, options and swaps and certain total return swaps are held
        for trading purposes.

        For derivative financial instruments held for non-trading purposes
        where hedge accounting is applied, the accounting policy is as
        follows:

        (i)   The Company formally documents all relationships between
              hedging instruments and hedged items, as well as its risk
              management objective and strategy for undertaking its hedge
              transactions and the method to be used to measure its
              effectiveness. The Company also formally assesses, both at
              inception and on an ongoing basis, whether the derivative
              financial instruments that are used in hedging transactions are
              effective in offsetting changes in fair values of hedged items.

        (ii)  Hedge accounting is discontinued prospectively when the
              derivative financial instrument no longer qualifies as an
              effective hedge or the derivative financial instrument is
              terminated or sold. Under the previous standards, the fair
              value of the derivative financial instrument was then accounted
              for and the related gain or loss was deferred to be included in
              the consolidated statement of income during the periods in
              which the hedged item affected earnings. Should the hedged item
              cease to exist; the gains or losses deferred until then are
              immediately charged to income. Under the new standards, the
              cumulative adjustment to the carrying amount of the hedged item
              is amortized to the consolidated statement of income based on a
              recalculated effective interest rate over the residual period
              to maturity; unless the hedged item has been derecognized in
              which case it is released to the consolidated statement of
              income immediately.

        (iii) The Company uses hedge accounting only for certain currency
              swaps used to manage foreign exchange risk related to certain
              investments in U.S. dollars. Under the previous standards,
              these derivative financial instruments were recognized at cost
              and foreign exchange gains and losses related to the hedged
              items were not recognized until they were settled. Under the
              new standards, the derivative financial instruments are carried
              at fair value in the consolidated balance sheet and changes in
              their fair value are recorded in the consolidated statement of
              income. The hedged assets are carried at fair value in the
              consolidated balance sheet and the changes in their fair value
              attributable to the hedged risk, according to the accounting
              treatment of the hedging instrument, are recognized also in the
              consolidated statement of income and the changes in the fair
              value attributable to other risks are recognized in OCI. Any
              gain or loss in fair value relating to the ineffective portion
              of the hedging relationship is recognized immediately in the
              consolidated statement of income.

        For derivative financial instruments held for non-trading purposes
        where hedge accounting is not applied and for derivative financial
        instruments held for trading purposes, the instruments are recognized
        at their fair value, with changes in the fair value reflected in the
        consolidated statement of income during the period in which they
        arise.

        These changes in accounting policies for derivative financial
        instruments and hedge accounting had no significant impact on the
        Company's consolidated financial statements.

        Embedded derivatives
        --------------------
        A derivative instrument may be embedded in another financial
        instrument (the "host instrument"). Prior to the adoption of the new
        standards, such embedded derivatives were not accounted for
        separately from the host instrument. Under the new standards,
        embedded derivatives are treated as separate derivative financial
        instruments when their economic characteristics and risks are not
        clearly and closely related to those of the host instrument, the
        terms of the embedded derivatives are the same as those of a stand-
        alone derivative financial instrument, and the combined contract is
        not designated or classified as HFT. These embedded derivatives are
        accounted for as other HFT financial assets and liabilities.

        As a result of this new accounting standard for embedded derivatives,
        the Company now accounts for the redemption options embedded in some
        perpetual preferred shares separately from the host instrument.

        Comprehensive income
        --------------------
        The consolidated statement of comprehensive income is a new financial
        statement. This new statement reflects the net income as adjusted,
        net of income taxes, for the AFS asset changes in fair values during
        the period less the amount recognized in the consolidated statement
        of income during the period. Such an adjustment is called OCI and is
        not included in the earnings per share calculations.

        Accumulated other comprehensive income (loss)
        ---------------------------------------------
        The accumulated OCI ("AOCI") is a new component of the shareholders'
        equity and represents the accumulated changes in fair values, net of
        income taxes, of AFS assets that are not yet recognized in the
        consolidated statement of income.

        Revenue and expenses recognition
        --------------------------------
        Under previous standards, transaction costs were capitalized on
        initial recognition. Under the new standards, the transaction costs
        are now expensed as incurred for financial instruments classified or
        designated as HFT. For other financial instruments, transaction costs
        are still capitalized on initial recognition.

        The effective interest method of amortization is used for any
        transaction cost capitalized on initial recognition and for the
        premiums or discounts earned or incurred for loans and AFS
        securities.

        Determination of fair value
        ---------------------------
        The fair value of a financial instrument on initial recognition is
        normally the transaction price, i.e. the fair value of the
        consideration given or received.

        Subsequent to initial recognition, the fair values are determined
        based on available information. When a quoted active market exists,
        the fair values of financial assets are based on bid prices and the
        fair values of financial liabilities, namely short securities and
        some derivative financial instruments, are based on ask prices. When
        independent prices are not available, the fair values of securities
        HFT are determined by using valuation techniques commonly used by
        market participants, which refer to observable market data, and AFS
        equity securities are then carried at cost. Valuation techniques
        commonly used by market participants includes as well comparisons
        with similar instruments where market observable prices exist,
        discounted cash flow analysis and option pricing models.

        If the fair value of a financial asset measured at fair value becomes
        negative, it is recorded as a financial liability until its fair
        value becomes positive at which time it is recorded as a financial
        asset, or it is extinguished. These changes in classifications occur
        mainly to derivative financial instruments (see current
        classification in the consolidated balance sheet of derivative
        financial instruments in table 3.3). Derivative financial instruments
        with positive fair values are recorded as other receivables and those
        with negative fair values are recorded as other liabilities.

        b) Other changes in accounting policies

        Effective January 1, 2007, the Company applied the revised provisions
        of the CICA handbook section 1506 "Accounting changes". Accordingly,
        voluntary changes in accounting policies are made only if they result
        in reliable and more relevant information. No voluntary changes were
        made in 2007.

        The Company also applied the Emerging Issues Committee ("EIC")
        Abstract No. 163 "Determining the Variability to be Considered in
        Applying AcG-15". This EIC provides additional clarification on how
        to analyze and consolidate variable interest entities. The impact was
        not significant on the Company's consolidated financial statements.

        c) Future accounting changes not yet applied

        The CICA issued a new accounting standard, section 1535 "Capital
        Disclosures", which requires the disclosure of both qualitative and
        quantitative information that enables users of financial statements
        to evaluate the entity's objectives, policies and processes for
        managing capital. This new standard is effective for the Company
        beginning January 1, 2008.

        Effective January 1, 2008, the Company will also apply the new CICA
        handbook sections 3862 "Financial Instruments - Disclosure" and 3863
        "Financial Instruments - Presentation" revising and enhancing actual
        disclosure requirements. The new sections place increased emphasis on
        disclosures about the nature and extent of risks arising from
        financial instruments and how the entity manages those risks.

        d) Comparative figures

        During the second quarter, the Company reclassified to goodwill
        certain deferred acquisition costs, net of income taxes. The
        reclassification had no significant impact on the consolidated
        statement of income.

        Certain other comparative figures have been reclassified to conform
        to the presentation adopted in the current period.

    3.  Invested assets and other financial instruments

        a) Invested assets by designation

    Table 3.1
    -------------------------------------------------------------------------
    As at                        Classified Designated
    September 2007           AFS     as HFT     as HFT      Loans      Total
    -------------------------------------------------------------------------
    Debt securities
      Short-term notes         -          -          -          -          -
      Fixed income
       securities      2,090,055          -  1,670,726          -  3,760,781
    Equity securities
      Preferred shares 1,528,906          -          -          -  1,528,906
      Common shares    1,462,461     88,891    221,266          -  1,772,618
    Loans and equity
     investments          12,947          -          -    191,521    204,468
    -------------------------------------------------------------------------

                       5,094,369     88,891  1,891,992    191,521  7,266,773
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Fixed income securities totaling $79,005 (December 2006 - carrying value
    of $60,878, fair value of $60,896) are pledged as collateral for short
    securities of $77,855 (December 2006 - carrying value of $57,093, fair
    value of $62,289).

        b) Unrecognized gains and losses

    Table 3.2
    -------------------------------------------------------------------------
                          Unamortized           Unrealized
    As at September 2007         cost        Gains       Losses   Fair value
    -------------------------------------------------------------------------
    Debt securities         3,774,623       10,707       24,549    3,760,781
    Equity securities       3,318,227      117,910      134,613    3,301,524
    Loans and equity
     investments              204,468            -            -      204,468
    -------------------------------------------------------------------------

                            7,297,318      128,617      159,162    7,266,773
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                Unrealized
    As at December 2006    Book value        Gains       Losses   Fair value
    -------------------------------------------------------------------------
    Debt securities         3,972,243       30,639        7,772    3,995,110
    Equity securities       3,040,848      238,296       61,574    3,217,570
    Loans and equity
     investments              228,847        1,738            -      230,585
    -------------------------------------------------------------------------

                            7,241,938      270,673       69,346    7,443,265
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

        c) Positive and negative fair values of derivative financial
           instruments

    Table 3.3
    -------------------------------------------------------------------------
                                                            Fair values
    As at September 2007                               Positive     Negative
    -------------------------------------------------------------------------
    Designated as fair value hedge                        2,654            -
    Not designated in a hedging relationship             14,270       23,198
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                                            Fair values
    As at December 2006                                Positive     Negative
    -------------------------------------------------------------------------
    Designated as fair value hedge                            -          824
    Not designated in a hedging relationship              1,585        3,522
    -------------------------------------------------------------------------

    4.  Claims liabilities

        Table 4.1 presents direct claims liabilities movements.

    Table 4.1
    -------------------------------------------------------------------------
                              For the three months       For the nine months
                                ended September 30        ended September 30
    -------------------------------------------------------------------------
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------
    Claims liabilities,
     beginning of period    3,878,744    3,755,101    3,823,539    3,821,609
    Transition adjustment
     (note 2)                       -            -       17,960            -
    Claims incurred           708,836      646,181    1,988,442    1,787,207
    Prior year favorable
     claims development       (17,223)     (67,085)     (75,626)    (150,331)
    Claims paid              (591,164)    (540,279)  (1,775,122)  (1,664,567)
    -------------------------------------------------------------------------

    Claims liabilities,
     end of period          3,979,193    3,793,918    3,979,193    3,793,918
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    5.  Share capital

        The Company completed a substantial issuer bid under which it
        purchased for cancellation, on March 30, 2007, 9,259,239 of its
        common shares at $54.00 per share for a total consideration of
        $500,000 plus fees of $1,144, net of income taxes. Total cost paid,
        including fees, was first charged to share capital to the extent of
        the average carrying value of the common shares purchased for
        cancellation and the excess was charged to retained earnings.

        a) Issued and outstanding

        Table 5.1
        ---------------------------------------------------------------------
                                                  September 2007
        ---------------------------------------------------------------------
                                                     Issued and
                                        Authorized  outstanding
                                          (shares)     (shares)       Amount
        ---------------------------------------------------------------------
        Common                           Unlimited  124,472,761    1,101,881
        Class A                          Unlimited            -            -
        Special                                One            1            -
        ---------------------------------------------------------------------


        ---------------------------------------------------------------------
                                                   December 2006
        ---------------------------------------------------------------------
                                                     Issued and
                                        Authorized  outstanding
                                          (shares)     (shares)       Amount
        ---------------------------------------------------------------------
        Common                           Unlimited  133,732,000    1,183,846
        Class A                          Unlimited            -            -
        Special                                One            1            -
        ---------------------------------------------------------------------

        b) Stock-based compensation

        Table 5.2
        ---------------------------------------------------------------------
                              For the three months       For the nine months
                                ended September 30        ended September 30
        ---------------------------------------------------------------------
                                 2007         2006         2007         2006
        ---------------------------------------------------------------------
        Long-term incentive
         plan (units)
          Outstanding,
           beginning of
           period             707,400      545,274      545,274      363,700
          Change in estimate
           during the period   (4,350)       1,487      157,776      183,061
          Outstanding, end
           of period          703,050      546,761      703,050      546,761
        Employee share
         purchase plan
         (restricted shares)
          Outstanding,
           beginning of
           period              51,696            -       22,892            -
          Awarded during the
           period              17,686       10,718       46,490       10,718
          Vested during the
           period              (4,854)           -       (4,854)           -
          Outstanding, end
           of period           64,528       10,718       64,528       10,718
        ---------------------------------------------------------------------

    6.  Related party transactions

        a) Revenues and expenses

        Table 6.1
        ---------------------------------------------------------------------
                              For the three months       For the nine months
                                ended September 30        ended September 30
        ---------------------------------------------------------------------
                                 2007         2006         2007         2006
        ---------------------------------------------------------------------
        Reinsurance ceded to
         related entities
        Ceded premiums earned   5,350        4,997       15,612       13,115
        Ceded claims expenses    (525)       4,119          236        6,909
        Expenses
        Commissions             9,220        8,337       26,772       23,495
        General expenses        4,507        4,416       13,536       13,169
        Interest                    -        1,328            -        5,309
        ---------------------------------------------------------------------

        b) Consolidated balance sheet amounts

        Table 6.2
        ---------------------------------------------------------------------
                                                      September     December
                                                           2007         2006
        ---------------------------------------------------------------------
        Reinsurance receivable                              646        4,252
        Broker loans                                     83,675       62,985
        ---------------------------------------------------------------------

    7.  Additional information

        Table 7.1 presents additional information on consolidated statements
        of income and cash flows.

        Table 7.1
        ---------------------------------------------------------------------
                              For the three months       For the nine months
                                ended September 30        ended September 30
        ---------------------------------------------------------------------
                                 2007         2006         2007         2006
        ---------------------------------------------------------------------
        Consolidated statement
         of income

        Income from HFT
         financial instruments
          Interest             19,437            -       59,637            -
          Dividends             2,489            -        8,704            -
          Realized losses      (2,346)           -         (533)           -
          Unrealized gains
           (losses)             7,872            -      (26,166)           -
          Derivative
           financial
           instruments         (5,305)           -        1,173            -
          Embedded
           derivatives         18,545            -       18,545            -
                              -----------------------------------------------
                               40,692            -       61,360            -
        Impairments           (28,326)      (3,848)     (42,223)     (13,457)
        Amortization           (5,440)        (369)     (10,058)      (7,903)
        Stock-based
         compensation          (1,577)      (1,128)      (4,783)      (3,038)
        Employee future
         benefits              (1,803)        (710)      (5,411)      (1,915)
        Consolidated statement
         of cash flows
        Income taxes paid      (2,150)     (65,316)    (141,742)    (245,668)
        Interest paid               -       (3,982)           -       (7,963)
        ---------------------------------------------------------------------

    8.  Segmented information

        The Company has two reportable segments, the underwriting segment and
        the corporate and distribution segment.

        The Company's core business activity is P&C insurance underwriting.
        Underwriting segment includes two lines of business: personal lines
        and commercial lines. Classes in personal lines include automobile
        and property. Classes in commercial lines encompass primarily
        automobile and other, primarily property and liability.

        Corporate and distribution segment includes the results of the
        Company's broker operations and the results of other operations.

        a) Results of the Company's reportable segments and their assets

        Table 8.1
        ---------------------------------------------------------------------
        For the three                                    Inter-
         months ended                    Corporate      segment
         September 30,                   and dist-     elimina-
         2007            Underwriting     ribution        tions        Total
        ---------------------------------------------------------------------
        Revenues              994,030       27,787      (17,256)   1,004,561
        Expenses              965,302       21,557      (17,256)     969,603
                         ----------------------------------------------------
        Subtotal               28,728        6,230            -       34,958
        Interest and
         dividend income                                              89,527
        Invested assets
         management
         expenses                                                     (4,847)
        Net losses on
         invested assets
         and other gains                                              (2,836)
        ---------------------------------------------------------------------
        Total income before
         income taxes                                                116,802
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------


        ---------------------------------------------------------------------
        For the three                                    Inter-
         months ended                    Corporate      segment
         September 30,                   and dist-     elimina-
         2006            Underwriting     ribution        tions        Total
        ---------------------------------------------------------------------
        Revenues              954,453       27,450      (22,241)     959,662
        Expenses              858,522       20,062      (22,241)     856,343
                         ----------------------------------------------------
        Subtotal               95,931        7,388            -      103,319
        Interest and
         dividend income                                              84,823
        Invested assets
         management
         expenses                                                     (5,180)
        Net gains on
         invested assets
         and other gains                                              35,757
        ---------------------------------------------------------------------
        Total income before
         income taxes                                                218,719
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------


        Table 8.2
        ---------------------------------------------------------------------
        For the nine                                     Inter-
         months ended                    Corporate      segment
         September 30,                   and dist-     elimina-
         2007            Underwriting     ribution        tions        Total
        ---------------------------------------------------------------------
        Revenues            2,927,358      117,457      (51,443)   2,993,372
        Expenses            2,766,005       65,488      (41,963)   2,789,530
                         ----------------------------------------------------
        Subtotal              161,353       51,969       (9,480)     203,842
        Interest and
         dividend income                                             272,977
        Invested assets
         management
         expenses                                                    (14,623)
        Net gains on
         invested assets
         and other gains                                              76,843
        ---------------------------------------------------------------------
        Total income before
         income taxes                                                539,039
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------


        ---------------------------------------------------------------------
        For the nine                                     Inter-
         months ended                    Corporate      segment
         September 30,                   and dist-     elimina-
         2006            Underwriting     ribution        tions        Total
        ---------------------------------------------------------------------
        Revenues            2,847,046       80,562      (46,313)   2,881,295
        Expenses            2,505,531       51,716      (46,313)   2,510,934
                         ----------------------------------------------------
        Subtotal              341,515       28,846            -      370,361
        Interest and
         dividend income                                             251,118
        Invested assets
         management
         expenses                                                    (16,866)
        Net gains on
         invested assets
         and other gains                                             178,219
        ---------------------------------------------------------------------
        Total income before
         income taxes                                                782,832
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------


        Table 8.3
        ---------------------------------------------------------------------
                                                         Inter-
        As at                            Corporate      segment
         September 30,                   and dist-     elimina-
         2007            Underwriting     ribution        tions        Total
        ---------------------------------------------------------------------
        Goodwill               74,411       85,063            -      159,474
        Invested assets     6,730,889      537,114       (1,230)   7,266,773
        Other               2,869,415      242,515      (14,138)   3,097,792
        ---------------------------------------------------------------------
        Total assets        9,674,715      864,692      (15,368)  10,524,039
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------


        ---------------------------------------------------------------------
                                                         Inter-
        As at                            Corporate      segment
         September 30,                   and dist-     elimina-
         2006            Underwriting     ribution        tions        Total
        ---------------------------------------------------------------------
        Goodwill               74,411       77,417            -      151,828
        Invested assets     6,598,259      674,967       (9,414)   7,263,812
        Other               2,634,883      243,081      (12,731)   2,865,233
        ---------------------------------------------------------------------
        Total assets        9,307,553      995,465      (22,145)  10,280,873
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        b) Results by line of business

        Table 8.4
        ---------------------------------------------------------------------
                              For the three months       For the nine months
                                ended September 30        ended September 30
        ---------------------------------------------------------------------
                                 2007         2006         2007         2006
        ---------------------------------------------------------------------
        Direct premiums
         written
        Personal              814,069      760,858    2,286,030    2,146,335
        Commercial            267,092      277,274      854,282      880,446
        Underwriting income
        Personal                5,648       58,562       92,635      199,992
        Commercial             23,080       37,368       68,718      141,523
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------
    





For further information:

For further information: Media Enquiries: Gilles Gratton, Vice President
- Corporate Communications, (416) 217-7206, Email:
gilles.gratton@ingcanada.com; Investor Enquiries: Michelle Dodokin, Vice
President - Investor Relations, (416) 344-8044, Email:
michelle.dodokin@ingcanada.com


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