ING to Acquire 49% Stake in Brazil’s Sul America

March 27, 2002

Holland’s ING Group further strengthened its leading position in the Latin American insurance market with the acquisition of a 49 percent stake in Sul America S.A., Brazil’s second largest insurance company.

The two companies announced “an agreement to strengthen their partnership and broaden their products and services to customers across Brazil.” ING said that “While the implied value of the transaction will not be disclosed,” its “total investment in Sul America will consist of:
— Approximately US$160 million in cash;
–Its 49 percent stake in Sulaet;[a life, health and pension firm ING acquired when it bought Aetna’s international operations]
— Its asset management operations (ING Investment Management Brazil).

The remaining 51 percent “will continue in the hands of the former shareholders.” The two companies also plan for ING to “participate in all insurance areas covered by Sul America. In addition, ING’s and Sul America’s asset management businesses will be merged.”

“Sul America is already an outstanding partner for ING because of its strong management, talented employees, diverse product lines, broad distribution, large market share and brand recognition in the huge Brazilian marketplace,” stated Glenn Hilliard, Chairman and CEO of ING Americas. “Similar to ING’s strategy for all of our Latin American countries, there is a significant opportunity in Brazil to establish our joint venture as an industry leader in the wealth management business. At the same time, we will continue to grow a strong position in our risk management business. Clearly this is another great step for both companies in this partnership.”

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