ING Direct 2009 Annual Report Download - page 164

Most significant companies disposed in 2008
NRG
Mexican non-life
business Total
General
Primary line of business Insurance Insurance
Sales proceeds
Sales proceeds 272 950 1,222
Cash proceeds 272 950 1,222
Cash in company disposed 12 26 38
Cash inflow on disposal (1) 260 924 1,184
Assets
Cash assets 12 26 38
Investments 461 1,146 1,607
Loans and advances to customers 137 65 202
Financial assets at fair value through profit and loss 41 41
Miscellaneous other assets 26 1,261 1,287
Liabilities
Insurance and investment contracts 210 1,497 1,707
Miscellaneous other liabilities 10 274 284
Net assets 416 768 1,184
% disposed 100% 100%
Net assets disposed 416 768 1,184
Gain/loss on disposal (2) –144 182 38
(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.
Disposals effective in 2008
In December 2007, ING reached an agreement with Berkshire Hathaway Group to sell its reinsurance unit NRG N.V. for EUR 272 million.
The sale resulted in a net loss of EUR 144 million. A loss on disposal of EUR 129 million was reported in 2007. In 2008 EUR 15 million
additional losses, predominantly relating to currency exchange rate changes were recognised.
In July 2008, ING completed the sale of part of its Mexican business, Seguros ING SA de CV and subsidiaries, to AXA as announced
in February 2008, for a total consideration of EUR 950 million (USD 1.5 billion). The sale resulted in a gain of EUR 182 million.
In January 2008 ING completed the sale of its health business in Chile, ING Salud, to Said Group and Linzor Capital Partners,
resulting in a gain on disposal of EUR 55 million.
As mentioned in Acquisitions effective in 2007 ING acquired the AFJP Pension (Origenes AFJP S.A.) company in Argentina as part of the
Santander transaction. In November 2008 the Government of Argentina passed legislation to nationalise the private pension system
(AFJPs). Under the law, all client balances held by the private pension system had to be transferred to the Argentina Government and
AFJP’s pension business was terminated. The law became effective in December 2008 when the Argentine Social Security Administration
(ANSES) took ownership over the affiliate accounts. The nationalisation impacted the pension assets only, thus leaving ING responsible
for the ongoing operating costs and liabilities including severance obligations. This resulted in a loss of EUR 188 million being recognised
in 2008.
Additional information to the consolidated balance sheet of ING Group (continued)
2.1 Consolidated annual accounts
ING Group Annual Report 2009
162