Dutch financial giant, ING, is increasing its estimates of the impact of the Sept.11 terrorist attacks on its business. In the immediate aftermath of the attacks, ING estimated its exposure at about 50 million euros. It now estimates the bottom-line is estimated at 100 million euros after tax.

“Our analysis has shown that ING’s US subsidiary ReliaStar is exposed to additional claims,” says ING. “These claims relate to losses incurred by companies that were based on the upper floors of the World Trade Center, through reinsurance of carriers that write workers’ compensation contracts and personal-accident insurance. Based on the information to date, the potential claims in connection with these reinsurance businesses have raised the total estimate of losses relating to the events to approximately 600 million euros before catastrophe cover and before tax. This amount equals somewhat over 1% of ING’s total annual premium income of around 50 billion euros.”

The net effect on ING’s profit and loss account for the year 2001 is estimated at 150 million euros before tax and 100 million euros after tax, representing 3% of last year’s operational profit before tax.

“The decline in global market conditions since then impacted banking and insurance revenues from, amongst others, securities business, variable products, asset management and mutual funds, as well as risk costs.”

These economic effects in combination with 9-11 have prompted ING to change its profit growth expectation for the full year 2001 from an increase in operational net profit per share of at least 17% to an increase of around 5%. This forecast is based on the assumption that the economic conditions or financial markets worldwide do not significantly deteriorate further.