Archive

ING plans massive sell-off to adjust risk for its insurance unit

In an attempt to return to its basics, ING Groep NV today said that it would sell assets and adjust its risk profile for its insurance unit.

In an attempt to return to its basics, ING Groep NV today said that it would sell assets and adjust its risk profile for its insurance unit.
To raise capital, the Amsterdam, Netherlands-based financial services giant will divest between 10 to 15 businesses over the next few years, expecting to obtain between $7.89 billion to $10.5 billion in proceeds, the company said in a statement.
ING said that it would operate its bank and insurer separately under one group umbrella.
The insurance business will concentrate on life and retirement services, especially in the United States.
Stateside, ING also plans to transform its variable- and fixed-annuities businesses to low-risk rollover products.
The carrier is evaluating strategic options for its non-core businesses, including employee benefits, group reinsurance and the existing annuities book.
Although ING will continue to adjust its annuities to reflect market conditions, there won’t be any changes to contracts that are already in-force, and it hasn’t stopped writing new ING business, company spokesman Phil Margolis wrote in an e-mail. Fixed and variable annuities will remain a key part of the insurer’s strategy going forward, but later this year, ING will unveil a new generation of products with even lower costs, he wrote.
ING also said that it would reduce its U.S. financial products division as its assets mature, and that while it will retain its positions in Central Europe, Latin America and Asia/Pacific, it will review its life insurance activities in China and Japan.
The company’s investment management operations in the Americas, Asia/Pacific and Europe will also be combined into a global investment management organization. That organization will include real estate investment management.
On the banking side, ING said that it would concentrate on European banking and would strengthen business in Poland, Romania, and Turkey through its retail banking unit in Central Europe.
The company also said that it would continue to build ING Direct’s position as a direct bank.