Amsterdam-based ING has divested its 11.3% direct stake in Brazilian insurance firm, Sul América, to Swiss Re Group, as part of its plans to streamline its operations.
Following completion of the sale, which was originally announced in November 2013, ING holding in the Brazilian insurer decreases to 10%.
Under the terms of the deal, the Dutch company disposed of approximately 37.7 million SulAmérica units for a total cash consideration of nearly €185m at the November 2013 exchange rates.
ING booked a net gain of almost €100m, which represents the difference between the book value and the fair value for both the 11.3% stake in scope of the agreement with Swiss Re and the 10% stake retained by ING.
At the time of signing the deal, the Netherlands-based company had said that it will use the proceeds of this transaction to decrease its core debt.
In 2002, ING and the Larragoiti family formed the insurance joint venture (JV) SulAmérica, which is an independent insurance group in Brazil, with operations in several insurance lines.
As of December 2011, the Brazilian insurance firm had more than 30,000 independent insurance brokers, as well as partnerships with more than 20 financial- and retail institutions, adding a further 16,000 points of sale.
During the financial crisis of 2008, ING received a €10bn bailout package, and the company is offloading insurance and investment management businesses globally to pay back the creditors.
ING offers banking, investments, life insurance and retirement services, with operations mostly concentrated in China, Hong Kong, India, Japan, Malaysia, South Korea and Thailand.
Image: ING House on the Zuidas in Amsterdam. Photo courtesy of Mig de Jong.