New life business tumbles at ING

DUTCH financial services giant ING is 'cautiously optimistic on prospects for 2004, despite a decline in new life insurance business last year.

Boosted by a strong performance from its banking operations, profits for the fourth quarter were ahead of expectations, rising 18% to more than e4bn (£2.7bn) .

But new life business - ING is Europe's third-largest insurer - fell from e519m to e440m and the group estimated the total value of its insurance arm had fallen from e23.3bn to e21.7bn.

The banking side enjoyed strong growth, with a 70%-plus leap in core profits to e1.5bn last year.

The figures were boosted by the lack of any major corporate loan defaults, ING said, together with increased margins and cost-saving benefits.