ING sells local life-insurance business to PCG
Netherlands-based insurer ING has reached an agreement to sell its life-insurance, general-insurance, pension and financial-planning units in Hong Kong and Macau, and its life-insurance operation in Thailand, to Pacific Century Group (PCG) for a combined
The management and operation in Thailand will be unchanged until the first quarter of next year, at which time the transaction is expected to be complete. The group has not named a new partner to manage its insurance business.
ING is moving forward with its plan to sell its non-bank business as announced in the wake of the euro-zone debt crisis. The deal covering Thailand, Hong Kong and Macau follows the sale of its insurance business in Malaysia last week for about 1.3 billion euros (Bt52.1 billion). The process for shedding the remaining businesses is ongoing. Further announcements will be made if and when appropriate, the firm said.
The agreement established a combined value for ING’s Hong Kong, Macau and Thai life-insurance businesses at 24.3 times estimated 2012 earnings and 1.9 times estimated 2012 book value of 865 million euros, both on an IFRS (International Financial Reporting System) basis. Earnings until closing are to the benefit of PCG. At closing, ING expects the transaction to deliver a net gain of about 1 billion euros.
“We are pleased to have found in Pacific Century Group a good home for our customers, employees and agents with the ambition to continue to expand the businesses in these countries,” said Jan Hommen, chief executive officer of ING Group. “This transaction underscores the steady progress we continue to make in our restructuring.”
ING is a top-10 life insurer in Hong Kong, Macau and Thailand. In Hong Kong and Macau, where it offers general and life insurance as well as pension and financial-planning services, ING serves more than 270,000 customers through about 400 employees and 1,600 tied agents.
In Thailand, where ING offers life insurance as well as pension products, ING serves more than 300,000 customers through about 480 employees and more than 4,000 tied agents.
PCG is a private firm founded in 1993 by Richard Li. Over the years, PCG has built interests in financial services, real estate, satellite communications, media and telecommunication services in Asia. Richard Li is the chairman of HKT, the largest telecom operator in Hong Kong, and the major shareholder of PineBridge Investments, a US-based asset manager with $68 billion under management globally.
ING Investment Management’s funds-management businesses in Hong Kong and Thailand are outside the scope of this transaction. The transaction does not affect ING’s Asian banking activities.
