Dutch banking and insurance company ING has recorded a first-quarter loss of €793 million ($1.4 billion) as insurance activities plunged the firm into the red.

The insurance division reported an underlying loss before tax of €979 million ($1.8 billion), due to weak demand and falling investment returns. Gross written premium income slumped 17% to €8.9 billion ($16 billion).

Insurance operations in the Asia/Pacific region made a loss of €149 million ($269 million) compared to a €182 million ($328 million) profit in the same period last year.

The result is well down on the €1.54 billion ($2.8 billion) net profit ING reported in the opening quarter last year, but is a big improvement on the €3.7 billion ($6.7 billion) fourth-quarter loss.

CEO Jan Hommen says the company is making headway as it carries out cost-cutting initiatives and asset sales intended to simplify the business.

The Dutch Government last year injected €10 billion ($18 billion) into ING and provided state guarantees of its assets after the US unit’s disastrous foray into mortgage-backed securities.