Asia fastest growing region for financial entities

New insurance business written in Asia is increasing for many global insurance companies. The high level of savings and growing middle class in Asia offer European and American financial outfits a lucrative market.

This is while the domestic economies of these global majors continue to consolidate after years of rapid growth in the late nineties.

According to agency reports, new insurance business in Asia amounted to two third's of the Netherlands-based ING Group NV's total new business at the end of last June.

The profit margin of new business in Asia for the Netherlands-based financial conglomerate is the highest in the group at 16 per cent.

The importance of the Asian market lies in the new life insurance policies ING is writing there, which it is reported will generate far higher earnings in the future.

ING Group is sharpening its focus on insurance and money management in the Asian region with India and China having the greatest long term growth opportunities. ING has said it wants to raise its stake in ING Vysya Bank to 49 per cent from the current 44 per cent.

This is the Indian banking sector is experiencing a retail boom as the middle class goes home loans and auto loans in light of the low interest rates.

Almost 90 per cent of ING's earnings in Asia come from the insurance sector, stated agency reports. The group proposes to further expand its operations in Asia through joint ventures, acquisitions as well as organic growth.

Its Asian business has shown a 77 per cent increase in pre-tax profits in the first nine months of last year. However, this constitutes just six per cent of the overall group profit.