ING sells life insurance business to Fubon

by Richard Kilner

Story link: ING sells life insurance business to Fubon

Dutch bank ING has struck a deal with Taiwanese financial services firm Fubon Financial Holding Co. Ltd to sell its Taiwanese life insurance business for €447m (US$600m).

The sale is one step in ING’s strategic approach towards capital injection, which it is applying only to those branches of its business with the best return.

Fubon’s payment will take the form of subordinated debt securities of Fubon Financial Holding and shares, with ING becoming a 5% shareholder (with shares worth some €165m) after the agreement is concluded.

Following the transaction Fubon, already Taiwan’s third largest financial services firm, will become the second largest life insurance firm.

The deal still requires regulatory approval, and is expected to be completed by the end of Q1 next year.

Should it go through, ING will incur a post-tax book loss of €427m, with a minimal effect on spare leverage but a substantial reduction on the capital dedicated to insurance.