ING Direct 2009 Annual Report Download - page 160

2.1 Consolidated annual accounts
ING Group Annual Report 2009
158
Additional information to the consolidated balance sheet of ING Group (continued)
Most significant companies disposed in 2009
ING Life Taiwan (5) ING Canada
Annuity and
Mortgage
business of Chile
Australia/
New Zealand Total
General
Primary line of business Insurance Insurance Insurance Insurance
Sales proceeds
Cash proceeds (1) 1,316 217 1,106 2,639
Non-cash proceeds 466 466
Sales proceeds 466 1,316 217 1,106 3,105
Assets
Cash assets 80 322 2233 637
Investments 9,801 2,350 1,803 385 14,339
Loans and advances to customers 1,341 79 413 1,833
Financial assets at fair value through profit and loss 1,552 1,075 52 8,370 11,049
Miscellaneous other assets 2,538 2,092 74 639 5,343
Liabilities
Insurance and investment contracts 14,294 3,761 2,009 8,524 28,588
Miscellaneous other liabilities 260 223 95 334 912
Net assets 758 1,934 240 769 3,701
% disposed 100% 70%(4) 100% 100%
Net assets disposed 758 1,354 240 769 3,121
Gain/loss on disposal (2) –292 (3) –38 –23 337 –16
(1) Cash outflow/inflow on group companies in the cash flow statement includes cash outflows/inflows on individually immaterial disposals in addition
to the cash flows presented.
(2) The gain/loss on disposal comprises the sales proceed, the net assets disposed, the expenses directly related to the disposal and the realisation
of unrealised reserves.
(3) The loss was recognised in 2008.
(4) After disposal of the 70% stake ING has no remaining stake in ING Canada.
(5) Assets and liabilities included in this column were presented as assets/liabilities held for sale as at 31 December 2008.
In October 2008 ING reached agreement to sell its entire Taiwanese life insurance business, ING Life Taiwan, to Fubon Financial Holding
Co. Ltd. The sale was completed in February 2009 at a final sales price of EUR 466 million (USD 600 million). This differs from the proceeds
reported in 2008 of EUR 447 million due to movements in the dollar/euro exchange rate between date of signing the sales agreement and
the date of closing. ING was paid in a fixed number of shares with the difference between the fair value of those shares at the closing date
and the sale price being paid in subordinated debt securities of the acquirer. This transaction resulted in a loss of EUR 292 million. This loss
includes EUR 214 million loss on disposal (recognised in 2008 in ‘Net result on disposal of group companies’ in the profit and loss account)
and EUR 78 million operating loss in the period that ING Life Taiwan was held for sale. ING Life Taiwan was previously included in the
segment Insurance Asia/Pacific.
In February 2009, ING completed the sale of its 70% stake in ING Canada for net proceeds of EUR 1,316 million. This differs from the
proceeds presented in the annual accounts of 2008 of EUR 1,265 million due to movements in the Canadian dollar/euro exchange rate
between date of signing the sales agreement and the date of closing. The sale was effected through a private placement and a concurrent
‘bought deal’ public offering in Canada. This transaction resulted in a loss of EUR 38 million. ING Canada was previously included in the
segment Insurance Americas.
In July 2009 ING reached an agreement to sell its non-core Annuity and Mortgage businesses in Chile to Corp Group Vida Chile, S.A for
EUR 217 million. This sale does not impact ING’s Pension, Life Insurance, and Investment Management businesses in Chile where ING
remains committed to developing leadership positions. This sale was completed in November 2009 and resulted in a loss of EUR 23 million.
These non-core Annuity and Mortgages businesses were previously included in the segment Insurance Americas.
In September 2009 ING reached an agreement to sell its life insurance and wealth management venture in Australia and New Zealand to
ANZ, its joint venture partner. Under the terms of the agreement, ING will sell its 51% equity stakes in ING Australia and ING New Zealand
to ANZ for EUR 1,106 million cash proceeds. The transaction is part of ING’s Back to Basics strategy. The sale was complete in November
2009 and resulted in a profit for ING of EUR 337 million. The joint venture was previously included in the segment Insurance Asia/Pacific.
Disposals effective in 2009