ING injects €850m into NN - Free to view

ING injects €850m into NN - Free to view

Netherlands-based financial services group ING has injected a further €850m in capital into its European and Japanese insurance operation as it finalises its flotation of the business. ING injected €1bn into the insurance arm earlier this year. It is being required by the European Commission to float off its insurance business as a condition for it receiving state aid at the height of the 2008-09 financial crisis. It has until the end of 2016 to complete its restructuring.

The extra €850m should ensure that the insurance business is not required to raise additional equity when it floats. Instead the parent company will sell existing shares and use the proceeds from those shares to pay down debt. Following the shift in capital, the parent's debt position increased to €5bn.

The new insurance operation will be called NN. Last week RRJ Capital and Singapore state-owned investor Temasek Holdings became two "cornerstone" investors in the new insurer. Such corporate backing is traditional in the Far East if other investors are to be attracted.

NN could be valued at about €6.5bn, according to analysts. It will have insurance operations in Netherlands, Poland, Turkey, Czech Republic, Slovakia, Romania, Hungary, Bulgaria, Belgium, Spain, Greece and Luxembourg, and life assurance operations in Japan. ING will be a Europe-focused bank at the end of its restructuring.

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