As part of its restructuring programme to pay back state aid
Dutch ING has agreed to sell its 50% stake in Pacific Antai Life Insurance to China Construction Bank as part of its restructuring programme, reported Reuters. Founded in 1998, Pacific Antai Life Insurance sells individual and group life insurance, and has about 300,000 customers.
Reportedly, the Netherlands-based financial group aims to pare back its operations and cut risks after being hit by the credit turmoil and receiving government life line in 2008.
The Dutch group said that it would like to sell its insurance arm and other assets to pay back EUR5bn state aid. It had recently paid EUR5bn aid after completing a EUR7.5bn rights issue.
ING intends to concentrate on ING Capital Life Insurance, its 50% joint venture with Beijing Capital Group, reported the News agency.
However, the transaction is subject to regulatory approvals and is expected to be booked and closed in the second half of 2010.