ING Direct 2013 Annual Report Download - page 229

Notes to the consolidated annual accounts of ING Group continued
Most of the debt investments relate to asset backed securities. Reference is made to Note 5 ‘Investments’ in which Available for sale
investments – Debt securities – ABS portfolio is disclosed.
The majority of the equity investments relate to investments in investment funds that are not originated or managed by ING. Reference is
made to Note 5 ‘Investments’ in which Available for sale investments – Equity securities are specified by NN Group managed investment
funds and Third party managed investment funds.
ING has significant influence for some of its real estate investment funds as disclosed in Note 7 ‘Investments in associates’.
8) Other structured entities
In the normal course of business, ING Group enters into transactions with structured entities as counterparty. Predominantly in its
structured finance operations, ING can be instrumental in facilitating the creation of these structured entity counterparties. These entities
are generally not included in the consolidated financial statements of ING Group, as ING facilitates these transactions as administrative
agent by providing structuring, accounting, funding, lending and operations services.
58 RELATED PARTIES
In the normal course of business, ING Group enters into transactions with related parties. 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. Related parties of
ING Group include, amongst others, its Joint ventures, Associates, Key management personnel, the Dutch State and various defined
benefit and contribution plans. Transactions between related parties 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. There are no significant
provisions for doubtful debts or individually significant bad debt expenses recognised on outstanding balances with related parties.
Transactions with joint ventures and associates
Joint ventures Associates
2013 2012 2013 2012
Assets 140 138 150
Liabilities 20 21 28 16
Income received 2324
For the decrease in ‘Associates’ reference is made to Note 7 ‘Investments in associates’.
Transactions with ING Bank N.V., NN Group N.V. and ING U.S., Inc.
ING Bank N.V. NN Group N.V. ING U.S., Inc.
2013 2012 2013 2012 2013 2012
Assets 5,351 7,886 3,394 3,749 116
Liabilities 1,060 2,372 54
Income received 757 828 124 123
Expenses paid 210 289
Assets from ING Bank N.V. and NN Group N.V. mainly include long-term funding. Liabilities to ING Bank N.V. mainly include short-term deposits.
Key management personnel compensation
Transactions with key management personnel (Executive Board, Management Boards and Supervisory Board) and post-employment
benefit plans are transactions with related parties. These transactions are disclosed in more detail as required by Part 9 Book 2 of the
Dutch Civil Code in the remuneration report included in the annual report. The relevant sections of the remuneration report therefore are
part of the annual accounts. For the post-employment benefit plans see Note 44 ‘Pension and other post-employment benefits’.
In 2013, ‘Management Boards’ includes the Management Boards of ING Bank N.V. (‘ING Bank’), NN Group N.V. (‘NN Group’) and the
Named Executive Officers of ING U.S., Inc. (‘ING U.S.’). The Named Executive Officers of ING U.S. are in accordance with the requirements
of the Securities Exchange Commission (SEC) the CEO, CFO and the three highest compensated Executive Officers. The members of the
Management Boards are considered to be key management personnel and their compensation is therefore included in the tables below.
The governance of the insurance operations has changed during the reporting period and in early 2014. In 2013, all members of the
Management Board of ING Insurance Eurasia N.V. have become members of the Management Board of ING Verzekeringen N.V. From the
1 March 2014 onwards, due to the legal merger between ING Verzekeringen N.V. and ING Topholding N.V. and the subsequent change of
the name of the entity to NN Group, all members of the Management Board of ING Verzekeringen N.V. have become members of the
Management Board of NN Group.
227ING Group Annual Report 2013
1 Who we are 2 Report of the Executive Board 3 Corporate governance 4 Consolidated annual accounts 5 Parent company annual accounts 6 Other information 7 Additional information