ING Direct 2008 Annual Report Download - page 148

ING Group Annual Report 2008
146
2.1 Consolidated annual accounts
Additional information to the consolidated balance sheet of ING Group (continued)
Collateralised debt obligations (CDO)-transactions
Within ING Group, SPEs are used for CDO transactions. In a typical CDO transaction an SPE is used to issue structured, rated securities
which are backed (or collateralised) by a pool of transferable debt securities. Besides investing in CDOs ING often has different roles in
these transactions:
the arranger of the transaction; ING structures the SPE, acquires the assets for the SPE and sells the CDOs to investors;•
collateral manager of the assets in the SPE; ING manages the assets based on strict conditions of the SPEs charter.•
ING Group receives market-rate fees for structuring, asset managing and distributing CDO-securities to investors. The total amount
of these fees is not significant.
ING as investor
As part of its investment activities, ING invests in securitisations by purchasing notes from securitisation SPEs. For certain own asset
securitisation programmes ING acts as a market maker and holds limited positions in this capacity.
Non-cash investments are made by ING by selling credit protection in the market using credit default swaps.
Other entities
ING Group is also a party to other SPEs used, for example, in structured finance and leasing transactions.
Investment funds
ING as fund manager and investor
ING Group sets up investment funds for which it acts as a fund manager and sole investor at the inception of the fund. Subsequently,
ING will seek third-party investors to invest in the fund, thereby reducing the interest of ING Group. In general, ING Group will maintain
a small percentage of interest in these funds. These funds are included in the consolidated financial statements of the Group if and when
control exists, taking into account both ING’s financial interests for own risk and its role as investment manager.
ING as fund manager
ING acts as fund manager for several funds. Fees related to these management activities are charged on an at arm’s-length basis. In
general, as a fund manager ING will hold these funds in a fiduciary capacity. These funds are therefore generally not included in the
consolidated financial statements of the Group.
28 PRINCIPAL SUBSIDIARIES
The principal subsidiaries of ING Groep N.V. are as follows:
Companies treated as part of the insurance operations
ING Verzekeringen N.V. The Netherlands
ING Verzekeringen Nederland N.V. The Netherlands
ING Vastgoed Belegging B.V. The Netherlands
Nationale-Nederlanden Levensverzekering Maatschappij N.V. The Netherlands
Nationale-Nederlanden Schadeverzekering Maatschappij N.V. The Netherlands
Parcom Ventures B.V. The Netherlands
Postbank Levensverzekering N.V. The Netherlands
Postbank Schadeverzekering N.V. The Netherlands
RVS Levensverzekering N.V. The Netherlands
RVS Schadeverzekering N.V. The Netherlands
Movir N.V. The Netherlands
ING Zivotna Poistovna a.s. Slovakia
ING Nationale-Nederlanden Polska S.A. Poland
ING Nationale-Nederlanden Polska Powszechne Towarzystwo Emerytaine S.A. Poland
ING Asigurari de Viata S.A. Romania
ING Greek Life Insurance Company S.A. Greece
ING Greek General Insurance Company S.A. Greece
ING Nationale-Nederlanden Magyarorszagi Biztosito Rt. Hungary
Nationale-Nederlanden Vida, Compañia de Seguros y Reaseguros S.A. Spain
Nationale-Nederlanden Generales, Compañia de Seguros y Reaseguros S.A. Spain
ING Canada Inc. Canada
Belair Insurance Company Inc. Canada
ING Insurance Company of Canada Canada
ING Novex Insurance Company of Canada Canada
ING America Insurance Holdings, Inc. United States of America
ING International Insurance Holdings, Inc. United States of America
ING Life Insurance and Annuity Company United States of America