ING Direct 2008 Annual Report Download - page 158

2.1 Consolidated annual accounts
Additional information to the consolidated balance sheet of ING Group (continued)
In November 2006, the issue of amongst others, the costs charged by the insurance industry to customers in respect of unit-linked
products (commonly referred to as ‘beleggingsverzekeringen’) has received attention both in the Dutch public media and from the Dutch
regulator for the insurance industry and consumer protection organisations. Mid November 2008 ING reached an outline agreement
with consumer organisations in the Netherlands to resolve a dispute regarding individual unit-linked products sold to customers in the
Netherlands by ING’s Dutch insurance subsidiaries. It was agreed ING’s Dutch insurance subsidiaries will offer compensation to policy
holders where individual unit-linked policies have a cost charge in excess of an agreed maximum. The costs of the settlement have been
valued at EUR 365 million. Although the agreement is not binding for policyholders, ING believes a significant step was set towards
resolving the issue.
Like many other companies in the mutual funds, brokerage, investment, and insurance industries, several of our companies have received
informal and formal requests for information from various governmental and self-regulatory agencies or have otherwise identified issues
arising in connection with fund trading, compensation, conflicts of interest, anti-competitive practices, insurance risk transfer and sales
practices. ING is responding to the requests and working to resolve issues with regulators. We believe that any issues that have been
identified thus far do not represent a systemic problem in the ING businesses involved and in addition that the outcome of the
investigations will not have a material effect on ING Group.
Because of the geographic spread of its business, ING may be subject to tax audits in numerous jurisdictions at any point in time.
Although ING believes that it has adequately provided for all its tax positions, the ultimate resolution of these audits may result in
liabilities which are different from the amounts recognised.
31 JOINT VENTURES
Joint ventures are included proportionally in the consolidated financial statements as follows:
Most significant joint ventures
2008
Interest
held (%) Assets Liabilities Income Expenses
ING Australia Ltd 51 6,690 6,218 406 317
Postkantoren B.V. 50 161 169 226 266
KB Life Insurance Company 49 498 462 254 257
ING (NZ) Holdings Ltd 51 95 338 34
Capital Life Insurance Company Ltd 50 200 186 94 105
Total 7,644 7,038 1,018 979
Most significant joint ventures
2007
Interest
held (%) Assets Liabilities Income Expenses
ING Australia Ltd 51 9,735 9,252 474 348
Postkantoren B.V. 50 159 126 205 203
KB Life Insurance Company 49 412 394 231 228
ING (NZ) Holdings Ltd 51 128 14 44 33
Capital Life Insurance Company Ltd 50 150 117 42 36
Total 10,584 9,903 996 848
32 RELATED PARTIES
In the normal course of business, the Group enters into various transactions with related companies. Parties are considered to be
related if one party has the ability to control or exercise significant influence over the other party in making financial or operating
decisions. Transactions have taken place on an arm’s length basis and include rendering or receiving of services, leases, transfers
under finance arrangements and provisions of guarantees or collateral.
Transactions with joint ventures and associates
Joint ventures Associates
2008 2007 2008 2007
Receivables 204 336 389 885
Liabilities 122 85 164 94
Guarantees issued in favour of 20
Income received 35 16 158 213
Expenses paid 82 58 31 32
ING Group Annual Report 2008
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