ING Direct 2008 Annual Report Download - page 151

149
ING Group Annual Report 2008
Acquisitions effective in 2008
In December 2008, ING acquired 100% of the voluntary pension fund Oyak Emeklilik for a total consideration of EUR 110 million.
Goodwill of EUR 69 million was recognised on the acquisition and is mainly attributable to the operational synergies and the future
business potential resulting from the acquisition.
In August 2008, ING acquired approximately 97% of Interhyp AG, Germany’s largest independent residential mortgage distributor for
a total consideration of EUR 418 million. Goodwill of EUR 371 million was recognised on the acquisition and is mainly attributable to the
future potential for enhancing ING’s distribution platforms in Europe resulting from the acquisition.
In July 2008, ING acquired 100% of CitiStreet, a leading retirement plan and benefit service and administration organisation in the
US defined contribution marketplace for a total consideration of EUR 578 million. Goodwill of EUR 462 million was recognised on the
acquisition and is mainly attributable to the operational synergies and the future business potential resulting from the acquisition,
making ING one of the largest defined contribution businesses in the US.
In January 2008, ING closed the final transaction to acquire 100% of Banco Santander’s Latin American pension and annuity businesses
through the acquisition of the pension business in Chile. See Acquisitions effective in 2007 (see page 152) for full details of the entire deal.
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 1,18 4
% 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. As disclosed in note 21 ‘Other liabilities’ a loss on disposal of EUR 129 million was
reported in 2007 (see page 135). In 2008 EUR 15 million additional losses, predominantly relating to currency exchange rate changes
were recognised.
In July 2008, ING announced it had 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.