ING Direct 2011 Annual Report Download - page 137

10 DEFERRED ACQUISITION COSTS
Changes in deferred acquisition costs
Life insurance Non-life insurance Total
2011 2010 2011 2010 2011 2010
Opening balance 10,457 11,165 42 43 10,499 11,20 8
Capitalised 1,575 1,550 12 12 1,587 1,562
Amortisation and unlocking –1,689 –2,684 –13 –13 –1,702 –2,697
Effect of unrealised revaluations in equity –526 –765 –526 –765
Changes in the composition of the group 44 –5 –2 42 –5
Exchange rate differences 304 1,194 304 1,194
Disposal of portfolios 2 2
Closing balance 10,165 10,457 39 42 10,204 10,499
For flexible life insurance contracts the growth rate assumption used to calculate the amortisation of the deferred acquisition costs for
2011 is 8.4% gross and 4.2% net of investment management fees (2010: 8.3% gross and 4.8% net of investment management fees).
In 2011, Amortisation and unlocking include EUR 488 million relating to the assumption review for the Insurance US Closed Block Variable
Annuity (VA) business. Reference is made to Note 43 ‘Underwriting expenditure’.
Amortisation and unlocking in 2010 includes a EUR 975 million DAC write-off as explained in Note 51 ‘Operating segments’. The
remaining amount includes unlocking of EUR –538 million, which mainly relates to Insurance US and amortisation of EUR –1,184 million.
11 ASSETS AND LIABILITIES HELD FOR SALE
Assets and liabilities held for sale include disposal groups whose carrying amount will be recovered principally through a sale transaction
rather than through continuing operations. This relates to businesses for which a sale is agreed upon or a sale is highly probable at the
balance sheet date but for which the transaction has not yet fully closed. For 31 December 2011 this relates to ING Direct USA. For 31
December 2010 this relates mainly to Pacific Antai Life Insurance Company Ltd., ING Arrendadora S.A. de C.V., ING Real Estate Investment
Management (ING REIM) and Clarion Real Estate Securities. Reference is made to Note 30 ‘Companies acquired and companies disposed’
for more details on occurred and expected significant disposals.
Assets held for sale
2011 2010
Cash and balances with central banks 4,980 28
Amounts due from banks 314
Financial assets at fair value through profit and loss 316
Available-for-sale investments 22,605 144
Loans and advances to customers 444
Reinsurance contracts 31,805 244
Investments in associates 43
Property and equipment 75 12
Intangible assets 166 15
Deferred acquisition costs 43
Other assets 2,091 136
62,483 681
Liabilities held for sale
2011 2010
Other borrowed funds 35
Insurance and investments contracts 217
Customer deposits and other funds on deposit 64,103
Other liabilities 162 172
64,265 424
Cumulative other comprehensive income includes EUR 244 million (2010: EUR 7 million) related to Assets and liabilities held for sale.
In addition to the entities presented as Held for sale above, ING is considering potential divestments, including those that are listed under
the European Commission Restructuring plan in Note 33 ‘Related parties’. However, none of these businesses qualify as held for sale as at
31 December 2011 as the potential divestments are not yet available for immediate sale in their present condition and/or a sale is not yet
highly probable to occur.
Notes to the consolidated annual accounts of ING Group continued
1 Who we are 2 Report of the Executive Board 3 Corporate governance 4 Consolidated annual accounts 5 Parent company annual accounts 6 Other information 7 Additional information
135ING Group Annual Report 2011