ING Direct 2009 Annual Report Download - page 167

Disposals effective in 2007
In June 2007, ING sold its investment in Nationale Borg, a specialist provider of guarantee insurance, to HAL Investments BV and Egeria.
In July 2007, ING sold ING Trust to management and Foreman Capital, an independent investment company based in the Netherlands. The
sale is part of ING’s strategy to focus on its investment, life insurance and retirement services.
In July 2007, ING sold its entire shareholding in ING Regio B.V., a subsidiary of Regio Bank N.V. to SNS REAAL for EUR 50.5 million,
resulting in a gain of EUR 26 million. This entity conducts most of the business of Regio Bank. The legal entity Regio Bank N.V. itself was
not part of the transaction.
In September 2007, ING sold its Belgian broker and employee benefits insurance business to P&V Verzekeringen for EUR 777 million,
resulting in a gain of EUR 418 million.
31 LEGAL PROCEEDINGS
ING Group companies are involved in litigation and arbitration proceedings in the Netherlands and in a number of foreign jurisdictions,
including the United States, involving claims by and against them which arise in the ordinary course of their businesses, including in
connection with their activities as insurers, lenders, employers, investors and taxpayers. In certain of such proceedings, very large or
indeterminate amounts are sought, including punitive and other damages. While it is not feasible to predict or determine the ultimate
outcome of all pending or threatened legal and regulatory proceedings, the Company’s management is of the opinion that neither it nor
any of its subsidiaries is aware of any governmental, legal or arbitration proceedings (including any such proceedings which are pending or
threatened of which the Company is aware) in the 12 months preceding the date of this document which may have or have in such period
had a significant effect on the financial position or profitability of the Company.
These proceedings include complaints and lawsuits concerning the performance of certain interest sensitive products that were sold by a
former subsidiary of ING in Mexico. Further, purported class litigation has been filed in the United States District Court for the Southern
District of New York alleging violations of the federal securities laws with respect to disclosures made in connection with the 2007 and
2008 offerings of ING’s Perpetual Hybrid Capital Securities. The challenged disclosures primarily relate to ING Group’s investments in
certain residential mortgage-backed securities. Additional purported class litigation challenges the operation of the ING Americas Savings
Plan and ESOP and the ING 401(k) Plan for ILIAC Agents. Litigation also includes a case involving the interest crediting methodology that is
used in connection with annuity products, and disclosures about the methodology, in which a state court of appeals has determined that
the case can be maintained as a nation-wide class action. A higher appellate court has been asked to review and reverse this decision.
These matters are being defended vigorously; however, at this time, ING is unable to assess their final outcome.
In November 2006, the issue of amongst others the transparency 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. In 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 that ING’s Dutch insurance subsidiaries would offer compensation to policyholders 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. ING’s Dutch
insurance subsidiaries are in negotiations with the relevant consumer organisations in order to work out the agreement more in detail.
Although the agreement is not binding for policyholders, ING believes a significant step was made towards resolving the issue.
Like many other companies in the mutual funds, brokerage, investment, and insurance industries, several of ING’s 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, suitability,
contract administration and interpretation, and sales practices. ING is responding to the requests and working to resolve issues with
regulators. ING believes 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.
On 28 January 2010 ING lodged an appeal with the General Court of the European Union against specific elements of the European
Commission’s decision regarding ING’s restructuring plan. In its appeal, ING contests the way the Commission has calculated the amount
of state aid ING received and the disproportionality of the price leadership restrictions specifically and the disproportionality of
restructuring requirements in general.
Additional information to the consolidated balance sheet of ING Group (continued)
2.1 Consolidated annual accounts
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