Move to hive off insurance biz won’t impact India operations immediately, says ING

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Mumbai: ING Group’s decision on Monday to sell its insurance operation and thus completely separate its banking and life insurance operations internationally will have no immediate implications in India.

The separation will be carried out over the next four years by a disinvestment of all insurance operations and will currently have no impact on ING’s operations in India, including its life insurance and bank operations, said ING.

ING Life India is a joint venture between ING Group (26%; ING Insurance International BV), Exide Industries (50%), Ambuja Cements Limited (11.5%) and Enam Group (12.5%).

Speaking on the developments, John Boers, chief financial officer, ING Life India said, “ING Life India remains committed to its chosen strategy to break-even by 2011-12. We do not see any change in the course of our business in the near term, nor will the decision have an impact on our customers, staff, distribution, partners, and 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 are a selective growth option for the group outside Europe for ING Retail Banking, as repeatedly emphasised by the Group. This development has no impact on the Indian operations of the bank, and we remain committed to expanding our market share domestically.”

ING Life India, part of the ING Group had entered the private life insurance industry in India in September 2001. The company currently has more than 800,000 customers and 5,500 employees.

The life insurer has a capital base of over Rs 1000 crore. Headquartered in Bangalore, ING Life India is currently present in 234 cities across 265 branch offices. The company also distributes its products in several parts of the country through its partner’s presence.