ING Direct 2008 Annual Report Download - page 152

ING Group Annual Report 2008
150
2.1 Consolidated annual accounts
Additional information to the consolidated balance sheet of ING Group (continued)
Disposals announced and occurring or expected to occur in 2009
In October 2008 ING announced that it had reached agreement to sell its entire Taiwanese life insurance business, ING Life Taiwan, to
Furbon Financial Holding Co. Ltd. for approximately EUR 447 million. As at 31 December 2008 ING Life Taiwan qualified as a disposal
group held for sale. The sale was completed on 13 February 2009. Consequently ING Life Taiwan will be deconsolidated in the first
quarter of 2009. ING will be 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. ING Life Taiwan is included in the segment Insurance
Asia/Pacific. This transaction is expected to result in a loss of EUR 292 million. A provision has been recognised for this loss in Other
liabilities. The loss has been recognised in 2008 in ‘Net gains/losses on disposal of group companies’ in the profit and loss account.
ING Life Taiwan will be deconsolidated in 2009 when ING loses control. It qualifies as a disposal group held for sale at 31 December 2008
as ING expects to recover the carrying amount principally through the sale transaction. ING Life Taiwan is available for sale in its
immediate condition subject to terms that are usual and customary for sales of such assets and the sale is highly probably.
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 would be transferred to the Argentina Government and
AFJP’s pension business would be 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.
In February 2009, ING announced that it had agreed to sell its 70% stake in ING Canada for net proceeds of approximately
EUR 1,265 million (CAD 2,163 million). The transaction was closed on 19 February 2009 and will be booked in 2009. This transaction
will result in a decrease in Total assets of approximately EUR 5,471 million and a decrease of Total liabilities of approximately
EUR 3,983 million.