Netherlands-based financial conglomerate ING has agreed to dispose of 50% stake in its Chinese insurance joint venture (JV) ING-BOB Life Insurance Company to BNP Paribas Cardif, the insurance arm of French bank BNP Paribas.
Financial terms of the transaction, which is subject to regulatory approval, have not been revealed and it will not have a material impact on ING Group results.
The disposal of the JV is part of its strategy to divest insurance and investment management businesses across the globe to boost capital ahead of implementation of new capital rules and to pay back to creditors.
The Amsterdam-based company, which received a €10bn bailout package during the financial crisis of 2008, said that the process to divest the remaining insurance and investment management businesses in Asia will continue as planned.
The recent announcement will not affect ING Bank’s 13.7% stake in Bank of Beijing, nor does it affect its commercial banking activities in China.
Founded in 2002, ING’s Chinese life insurance JV runs eight offices in seven provinces and municipalities in China and delivers savings and protection products to families in the country through an agency network and bank branches.
ING delivers banking, investments, life insurance and retirement services, with operations mostly concentrated in China, Hong Kong, India, Japan, Malaysia, South Korea and Thailand.