Marking another step in its rationalisation strategy, Dutch
bancassurer ING Group is to sell its 51 percent equity stakes in
ING Australia and ING New Zealand to its joint venture (JV) partner
Australia and New Zealand Banking Group (ANZ). The Dutch
bancassurer estimates that the €1.1 billion ($1.5 billion) cash
deal will result in it realising a net profit of €300 million and
the freeing up of €900 million capital.
“This transaction is another important step in executing our ‘Back
to Basics’ strategy,” commented ING’s CEO Jan Hommen. “The sale of
our insurance and wealth management operations in Australia and New
Zealand is further proof of our determination to simplify the
organisation by focusing on fewer, strong franchises that form a
coherent group.”
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The JV between ING and ANZ dates back to the merger of their
insurance and wealth management operations in Australia and New
Zealand in 2002. Today the operations employ 2,700 staff and offer
wealth management and insurance products through ANZ bank branches,
1,700 financial advisers and directly via the internet to some1
million customers.
ING reported combined Australian and New Zealand premium income of
€292 million in 2008, or 2 percent of the group total of €11.04
billion.
From its perspective ANZ noted that the buyout of ING’s stake
strengthens its position in wealth management and life insurance
and, without the constraints of joint ownership, provides
additional flexibility for growth.
ING Australia is ranked as the country’s third-largest life insurer
and fifth-largest retail funds manager. Assets under management
total A$45 billion ($40 billion).
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By GlobalDataING’s exit from Australasia follows recent disposals of a number of
other operating units. These included its Chilean annuity and
mortgage businesses to Corp Group Vida Chile for an undisclosed
sum, its 70 percent stake in general insurer ING Canada to unnamed
institutional investors for $1.72 billion and its Taiwan life
insurance unit, ING Antai Life, in a $600 million non-cash deal to
Fubon Financial Holding Company.
