ING Direct 2013 Annual Report Download - page 237

Notes to the consolidated annual accounts of ING Group continued
held for sale and presented in the usual consolidated balance sheet line items. The individual income and expenses of ING Japan will be
classified out of Net result from discontinued operations and presented in the usual consolidated profit and loss account line items.
The comparative periods for the balance sheet have not been restated and therefore the assets and liabilities of ING Japan are still included
in Assets and liabilities held for sale for the year 2012. All comparative periods in the Consolidated profit and loss account have been
restated for this decision and therefore income and expenses of ING Japan are included in the continuing operations part of the statement
for the years 2012 and 2011.
ING has adjusted its reporting structure to better align its segmentation according to the businesses that it comprises, their governance
and internal management, and to reflect the decision to divest ING Life Japan with the IPO of NN Group. The new reporting segments for
NN Group are as follows:
• Netherlands Life;
• Netherlands Non-life;
• Insurance Europe;
• Japan Life;
• Japan Closed Block VA;
• Investment Management; and
• Other.
Reference is made to Note 42 ‘Segments’.
Japan Life, representing COLI business, and the Japan Closed Block VA, are reported separately to reflect the distinct nature of these two
Japanese businesses. Under ING’s existing accounting policies, the net insurance liability of any business line must be adequate at the 50%
confidence level. The Japan Closed Block VA business had a reserve inadequacy at the 50% confidence level in October 2013. This
inadequacy used to be offset by surplus adequacies in other businesses in the same business line that the Japan Closed Block VA business
used to be part off. The separate reporting of the Japan Closed Block VA business line therefore triggered a charge of EUR 575 million
before tax to restore the reserve inadequacy. This charge resulted in a write-off of all deferred acquisition costs (DAC) related to the Japan
Closed Block VA business of EUR 1,405 million partly compensated by a release of the Life insurance provision related to unearned
revenues of EUR 867 million, and an increase in the life insurance provisions for the remaining amount.
SNS Reaal nationalisation
In 2013, the nationalisation of SNS Reaal, a Dutch financial institution, was announced. As a consequence of the arrangements made by
the Dutch government, ING Bank and other Dutch banks will be required to pay a one-time levy of EUR 1 billion in 2014. For ING this will
result in a charge of EUR 304 million in 2014. There is no impact from this 2014 levy on the result of 2013.
Sale of custody services in seven European countries
In 2013, ING reached an agreement to transfer its local custody services business in seven countries in Central and Eastern Europe to Citi.
The transaction did not have a significant impact on ING’s results. The full migration of the clients business is expected to be finalised in
the second quarter of 2014.
235ING 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