ING sells reinsurance unit for €272m

by David Masters

Story link: ING sells reinsurance unit for €272m

In a move away from the insurance market, ING has sold its reinsurance unit NRG to Columbia Insurance Company, a Berkshire Hathaway subsidiary, for €272 million.

The sale of Nederlandse Reassurantie Groep NV was first announced on 27th December last year, but was only completed this week.

ING sold the unit because of its most recent strategy of focusing its core business on banking, life insurance, investments, and retirement services.

The company has reported an after tax loss of €144 million due to the sale. €129 million of this was reported in 2007, whilst €17 million was reported in the first quarter of 2008. A €2 million profit will be reported for the second quarter.

The proceeds of the sale will be invested in ING’s spare leverage fund.