ING will sell its insurance division from Romania at package with the others from Central and Eastern Europe
ING Group intends to sell its insurance division, including its subsidiary in Romania, through listing on the Stock Exchange, through initial public offering - IPO. Also, all entities in Central and Eastern Europe will be included in this operation, according to Tom KLIPHUIS, CEO of ING for this region.
ING will launch the initial public offering most likely to end of 2011, although the company is still evaluating several options, according to WALL STREET Journal.
"There's absolutely no intention whatsoever to carve out [any insurance units from the sale], such as Central Europe for example", said Tom KLIPHUIS.
The Dutch group has agreed the sale of its insurance division, valued at over EUR 16 billion, as a condition for obtaining state aid during the peak of the financial crisis.
In addition to Romania, ING owns insurance and pensions divisions in countries like Poland, Czech Republic, Turkey and Hungary. Moreover, the Dutch intend to transfer about one third of the back-office operations to Cluj-Napoca, in order to reduce costs.
"We would not have chosen this solution if we had opted for the individual sale of operations", explained Tom KLIPHUIS.
The volume of gross written premiums of ING Asigurari de Viata in 2009 stands at RON 527.1 million, compared to RON 557.5 million in 2008, down by 5.4% (the decrease in European currency of company's business is of 17.83%, from EUR 151.38 million in 2008 to EUR 124.40 million last year). However, the leader of life insurance in Romania has achieved a gross profit of RON 92.07 million (EUR 21.25 million), 2.4 times higher than the level of RON 38.25 million registered in the previous year.
Author: Mihaela CIRCU
on 08.03.2010
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