ING to Push Ahead with Insurance IPOs, Divestments

Dutch financial services group ING said on Thursday it was on track to list its U.S., European and Asian insurance units and to divest other businesses to repay state aid.

ING, which received €10 billion [$14.8832 billion] of state aid at the height of the 2008 credit crisis, is selling off assets so it can repay the Dutch government, and is splitting its bank and insurance operations as part of a European Commission-imposed split-up because of its bailout.

The company, which also posted forecast-beating first-quarter profit helped by higher interest rates and investment margins, reiterated that it was preparing to list the two insurance businesses, most likely next year.

ING’s insurance assets had an equity value of €20 billion ($29.766 billion) at the start of this year, including €11.5 billion [$17.115 billion] for its U.S. operations, €2.2 billion [$3.274 billion] for Latin America, and €4.9 billion [$7.293 billion] for Asia Pacific.

ING reiterated it was exploring “strategic options” for its Latin American insurance operations, which sources said last month were being prepared to be sold, and that it was working on its plans to sell its online bank ING Direct USA and Dutch mortgage lender WestLandUtrecht Bank.

Since receiving state aid in 2008, ING has sold at least €5.4 Billion [$8.036 billion] worth of assets, including its Asian private banking assets last year and insurance operations in Canada, Taiwan, Australia and Chile.

It is selling most of its real estate investment management operations to CB Richard Ellis and other parties in a deal worth $1.1 billion.

ING reiterated it will pay back €2 billion [$2.9766 billion] of state aid next week, and the remaining €3 billion [$4.465 billion] plus a 50 percent premium by May 2012.

ING’s results, which beat expectations at both the banking and insurance units, benefitted from higher interest rate and investment margins, increased savings held by clients, and higher fees.

BNP Paribas, France’s biggest listed bank, beat first-quarter forecasts on Wednesday, driven by strong retail growth and resilient investment banking.

ING’s first-quarter underlying net profit, which excludes some assets’ market price changes, was €1.49 billion [$2.217 billion], beating analysts’ expectations of €1.41 billion [$2.098 billion] in a Thomson Reuters poll and up 54 percent from a year ago.

(Reporting by Gilbert Kreijger; Editing by Sara Webb and Hans Peters)