ING Group splits banking, insurance units

The ING Group on Monday announced that it will move towards a complete separation of its banking and life insurance operations as part of its ongoing Back to Basics programme.

While the separation will be achieved over the next four years by a divestment of all insurance operations, for the present it will have no impact on ING's operations in India, including its life insurance and bank operations.

Commenting on the developments, John Boers, chief financial officer, ING Life India said, "ING Life India remains committed to its chosen strategy of break-even by 2011-12. We do not see any change in the course of our business in the immediate term, nor will the decision have an impact on our customers, staff, distribution partners or on our shareholders."

Speaking on the developments, Shailendra Bhandari, CEO & MD, ING Vysya Bank said, "ING has a strategic 44% stake in ING Vysya Bank. The Indian operations is a selective growth option for the group outside Europe for ING Retail Banking, as repeatedly emphasized by the group. This development has no impact on the Indian operations of the bank, and we remain committed to expanding market share domestically."

ING group's back-to-basic programme, announced earlier this year, was to reduce the complexity by operating the bank and the insurer separately under one-roof umbrella.

Monday's announcement is a comprehensive set of actions, that taken together at the global level, will provide a clear plan for resolving the uncertainty created by the financial crisis.