ING Direct 2013 Annual Report Download - page 59

BUSINESS DEVELOPMENTS
Japan Closed Block VA comprises NN Group’s closed-block single
premium variable annuity (SPVA) individual life insurance portfolio
in Japan. This portfolio consists of SPVA products with substantial
minimum guarantee obligations sold predominantly from 2001 to
2009. In 2009 ING ceased the sale of these products and placed
this portfolio in run-off. This portfolio has been classified as a
closed-block and is managed as a separatesegment.
Over 90% of the portfolio is projected to run off by 2019, due to
the short-term maturity profile of the SPVA products.
The minimum guarantee obligations of Japan Life under the
closed-block portfolio are fully reinsured by ING’s internal reinsurer,
ING Re. ING Re manages this risk through a sophisticated hedging
programme. Japan Life is responsible for managing the policies, the
relationships with customers, the distribution partners and the
Japanese regulatory authority.
CONCLUSIONS AND AMBITIONS
The majority of the closed-block SPVA portfolio is projected to
runoff relatively quickly. The focus is on prudently managing risks
via hedging to release capital, as well as on cost and efficiency
management.
REPORT OF THE EXECUTIVE BOARD
The Corporate governance section starting on page 62 and the
paragraphs of the Remuneration report “Remuneration policy
for senior management” and “2013 remuneration structure senior
management” on pages 81-87 are incorporated by reference
in this Report of the Executive Board.
AMSTERDAM, 17 MARCH 2014
THE EXECUTIVE BOARD
57ING 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