ING sells Insurance Latam for €2.7bn
by Richard Kilner
Story link: ING sells Insurance Latam for €2.7bn
ING is to sell its Latin American pensions, life insurance and investment management operations to Grupo de Inversiones Suramericana (GRUPOSURA).
The total sum involved is around €2.68bn and marks a first milestone in ING’s plan to divest its insurance and investment management operations.
ING is to receive €2,615m in cash, with the remaining €65m being made up by GRUPOSURA assuming debt.
The deal values the operations at sixteenfold their earnings in 2011 and 1.8 times their book value of €1.49bn.
ING Group Chief Executive Officer Jan Hommen said that the firm had established a first rate Latin American franchise and expressed delight that the operations had found a solid owner in GRUPOSURA.
Hommen added that the future would see pair of IPOs, one relating to the US businesses and one for the European and Asian businesses, which would proceed when markets are favourable.