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In 2009, ING had suffered big losses on real estate and mortgage derivatives, as well as betting the S&P index would decline just as it rallied. This quarter the company continued to benefit from healthy banking margins, as its funding for loans comes from retail accounts on which it currently pays little interest. Provisions against bad loans declined by 45 percent to euro465 million. At the insurance arm, ING said it made an underlying pretax loss of euro115 million, from a profit of euro242 million. However, the sharp decline in equity markets forced it to write down the expected value of existing contracts in the U.S. by euro521 million. In addition it lost euro143 million on debt investments. The company said that operating profit was down only modestly to euro419 million from euro482 million. ING said sales were steady but margins slipped in part due to higher death claims in the U.S. and less "surrender" profits
-- which come from penalties for clients cashing in policies early -- in Eastern Europe.
[Associated
Press;
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