Global financial services firm ING Group has agreed to sell its life insurance and wealth management venture in Australia and New Zealand to joint venture partner ANZ.
Under the agreement, ING will sell its 51 per cent equity stakes in ING Australia and ING New Zealand to ANZ, which will now become the sole owner of these businesses, ING said in a statement.
ING will receive $1.76 billion in cash from ANZ.
"This transaction is another important step in executing our back to basics strategy," ING Group chief executive Jan Hommen said.
"The sale of our insurance and wealth management operations in Australia and New Zealand is further proof of our determination to simplify the organisation by focusing on fewer, stronger franchises that form a coherent group.
"This shows once more that our continued transformation is well on track."
The transaction will generate an estimated net profit for ING of around $500 million.
ING and ANZ merged their insurance and wealth management operations in Australia and New Zealand in 2002.
The operations now employ 2200 staff in Australia and 500 in New Zealand, offering a comprehensive range of wealth management and insurance products through ANZ bank branches, financial advisers and directly via the internet.
ING Australia is the number two life insurer and has a top five position in wealth management, while ING New Zealand has market leading positions in retail fund management, life insurance and real estate.
ING remains active in Australia with ING Direct, ING Investment Management, ING Wholesale Banking and ING Real Estate, which are not impacted by this transaction.
The deal is subject to regulatory approvals and is expected to close in the fourth quarter 2009.
ING Australia will continue to trade under its current name for the next 12 months, according to an ING Australia spokesperson.
ING Australia chief executive Harry Stout will remain at the helm of the business.
