ING has been granted an extension by the European Commission to divest its insurance operations.
In the previous plan, ING had agreed to divest 100% of its Insurance businesses by the end of 2013. However, more than 50% of its insurance operations in Europe are to be divested by the end of 2015, with the remaining interest divested by the end of 2018.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
In Asia, more than 50% of ING’s insurance operations need to be divested by the end of 2013, with the remaining interest divested before the year-end 2016.
Meanwhile, in the US, at least 25% of ING’s insurance operations should be divested by year-end 2013 and more than 50% by year-end 2014, with the remaining interests divested before year-end 2016.
ING has also agreed that the commercial operations WestlandUtrecht Bank (WUB), which is part of ING Group, will be combined with the retail banking activities of Nationale-Nederlanden (NN) that is also part of ING Group.
NN currently offers core retail insurance products, as well as mortgages and bank annuity products. The integrated retail banking business will operate under the "Nationale-Nederlanden" brand.
With WUB’s commercial operations, ING Group said NN Bank will offer a broad and coherent product line, with mortgages, savings, bank annuities, investments and consumer credit products, combined with the core retail insurance products of NN.
The agreement comes after ING announced on 9 November 2012 that it has registered an IPO for ING U.S., its US-based investment and insurance businesses.
In Asia, ING Group has also agreed to sell its life insurance, general insurance, pension and financial planning units in Hong Kong and Macau, and its life insurance operation in Thailand to Pacific Century Group (PCG).
Meanwhile, on 29 December 2011, ING said it had completed the divestment of its Latin American pensions, life insurance and investment management operations to Colombia’s Grupo de Inversiones Suramericana (GRUPOSURA).
Fitch Ratings said it viewed ING Group’s agreement with the EC positively. The ratings agency said the agreement brings "clarity" on the extent and timing of the restructuring measures as the restructuring plan imposed in 2009 by the EC and implemented by ING was disputed by the Dutch state and ING.
Furthermore, Fitch said the agreed restructuring offers ING more flexibility given the extended deadlines to fulfill the plan.
Joaquín Almunia, European Commission Vice President in charge of competition policy, said: "Our agreement with the Dutch authorities preserves the balance of the original plan.
"The issues created by all the state aid received by ING are adequately addressed by the amended plan. In the next three years, ING will repay to the Dutch state all the state support it received, including a premium. Incentives have also been put in place to ensure ING succeeds in creating a new competitive force, NN Bank, in the Dutch retail market. "
