Description
It describes about Competitor Analysis, SWOT analysis of ING, Company Description, General Information about ING group , it's Finance performance, SWOT analysis and Various Strategies employed.
COMPANY ANALYSIS: Description: ING is a global financial institution of Dutch origin offering banking, insurance and asset management to over 85 million private, corporate and institutional clients in over 40 countries. With a diverse workforce of approximately 130,000 people, ING is dedicated to setting the standard in helping their clients manage their financial future. ING wants to build its future on sustainable profit based on sound business ethics and respect for its stakeholders and be a good corporate citizen. For only by acting with professionalism and integrity, will we be able to maintain their stakeholders’ trust and preserve their reputation. Their Business Principles prescribe the corporate values we pursue and the responsibilities we have towards society and the environment: we act with integrity, we are open and clear, we respect each other and we are socially and environmentally responsible. History of ING: ING was founded in 1991 by a merger between Nationale-Nederlanden and NMB Postbank Group. During the past years ING has become a multinational with diverse international activities. The roots of ING can be traced to the insurers De Nationale Levensverzekering Bank and De Nederlanden van 1845 and to the public bank services such as De Rijkspostspaarbank and De Postcheque- and Girodienst, as well as to the Nederlandsche Middenstands Bank. These are the legal predecessors of the ‘founding fathers’ of ING: Nationale-Nederlanden and NMB Postbank Group. The founding of ING as one company was started in 1990 when the legal restrictions on mergers between insurers and banks were lifted in the Netherlands. This prompted insurance company Nationale-Nederlanden and banking company NMB Postbank Groep to enter into negotiations. The merger into Internationale Nederlanden Groep took place in 1991. The market soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING Group N.V. Since 1991, ING has developed from a Dutch company with some international business to a multinational with Dutch roots. This was achieved through a mixture of organic growth, such as the creation of ING Direct from scratch, as well as various large acquisitions. The first large acquisition took place in 1995, when ING took over Barings Bank. This acquisition increased the brand recognition of ING around the world and strengthened its wholesale banking presence in the emerging markets. And then there was Life of Georgia. This insurance company was acquired by Nationale-Nederlanden in 1979, resulting in a significant increase in activities in the US. Via Life of Georgia, the activities in Asia expanded considerably. However in 2004, ING as a group had become well-established in both regions and Life of Georgia was sold. Other acquisitions, such as the Belgian Bank Brussels Lambert, strengthened the Group’s presence in the Benelux. In addition, the activities in the United States were doubled as a
result of organic growth and the acquisition of Equitable of Iowa, ReliaStar, Aetna Financial Services and merchant bank Furman Selz. ING is also active in other parts of the world. In 2001, ING acquired a majority interest in the Polish Bank ?l?ski and entered the Indian life insurance market through ING Vysya Life Insurance. Furthermore, ING participates in a number of financial institutions. An important example is the partnership with the Bank of Beijing. Profile: ING is a global financial institution of Dutch origin, currently offering banking, investments, life insurance and retirement services to meet the needs of a broad customer base. Going forward, we will concentrate on their position as an international retail, direct and commercial bank, while creating an optimal base for an independent future for their insurance operations (including investment management). Stakeholders: ING conducts business on the basis of clearly defined business principles. In all their activities, we carefully weigh the interests of their various stakeholders: customers, employees, business relations and suppliers, society at large and shareholders. ING strives to be a good corporate citizen. Corporate responsibility: ING wants to build its future on sustainable profit based on sound business ethics and respect for its stakeholders and be a good corporate citizen. For only by acting with professionalism and integrity, will we be able to maintain their stakeholders’ trust and preserve their reputation. Their Business Principles prescribe the corporate values we pursue and the responsibilities we have towards society and the environment: we act with integrity, we are open and clear, we respect each other and we are socially and environmentally responsible.
General information about the company: In India: ING operates through three businesses in India, ING Vysya Life Insurance, ING Vysya Bank and ING Investment Management. ING Vysya Bank is a premier private sector bank with over 76-year heritage and 1.5 million satisfied customers. ING Investment Management believes in providing investors with the knowledge & opportunity to manage their future easily. The ING Business Principles are: They act with integrity -showing fair, honest and lawful behaviour so we continue to earn their stakeholders’ trust
They are open and clear -saying what we mean, meaning what we say and listening carefully We respect each other -we value diverse thinking and respect human rights We are socially and environmentally responsible -we will do no harm and seek positive change through their products, people and activities. ING Vysya Life Insurance Company Limited (ING Life Insurance India) is a life insurance company head quartered in Bangalore. ING Vysya Life Insurance recently achieved the significant milestone of completing 10 years of operations in India. The company is a joint venture between Exide Industries and ING Insurance International B.V ING Life Insurance India is currently present in over 200 cities and serves over 1 million policy holders in India. The company distributes its products through two channels, Tied Agency and Alternate Channel. The Tied Agency Channel comprises over 30,000 ING Life Insurance Advisors, spread across the country. The Alternate Channel is a fast growing distribution channel, and includes Bank assurance partner (ING Vysya Bank), Cooperative Banks, Corporate Agents and Brokers. About ING group: -In existence for 150 years. -World 9th largest leading private company. -Operates in 60 countries across 5 continents. -Has revenue average 76.58 billion Euro. -ING covers 75 million private, corporate & institutional Clients (in 50 countries) (2007). -Employees 1,20,000 people world wide. ING has achieved operational separation of Banking and Insurance/IM by January 1, 2011: At the beginning of 2011, Banking and Insurance/IM became separate, standalone businesses operating at arm’s length from each other within ING Group. In 2011, operational disentanglement of US and EurAsia Insurance/IM was finalized at the end of 2011. The operational separation consists of a combination of end-state and a few remaining interim solutions, mainly IT related. ING will continue to seek to replace the remaining interim solutions with permanent solutions.
How will ING divest its Insurance/IM operations? => Given the uncertain economic outlook and turbulent financial markets, especially in Europe, ING has announced on 12 January to explore other options for its Asian Insurance and Investment Management businesses ING will continue preparations for a standalone future of the European Insurance/IM businesses, including the possibility of an IPO ING also continues to prepare for the base case of an IPO for the US Insurance/IM businesses. ING’s business lines Banking From 1 January 2010, the banking activities are divided into two main business lines: Retail Banking and Commercial Banking. Retail Banking is composed of Retail Netherlands, Retail Belgium, Retail Central Europe, Retail Asia and ING Direct. Commercial Banking also manages ING Real Estate. Retail Banking Retail Banking provides retail and private banking services to individuals and small and medium-sized enterprises in the Netherlands, Belgium, Luxembourg, Poland, Romania, Turkey, India, Thailand and China (through a stake in Bank of Beijing) with a multiproduct, multi-channel distribution approach. In mature markets, we focus on wealth accumulation, savings and mortgages, with an emphasis on operational excellence, cost leadership and customer satisfaction. In developing markets we aim to become a prominent local player by offering simple but high quality products. ING Direct offers direct banking services in Canada, Spain, Australia, France, the US (sale of business was announced on 17 June 2011 and is expected to be completed in the fourth quarter of 2011), Italy, Germany, the UK and Austria. ING Director’s focus is on offering five simple and transparent retail banking products at very low cost: savings, mortgages, payment accounts, investment products and consumer lending. Commercial Banking Commercial Banking primarily targets large corporations in the Netherlands, Belgium, Poland and Romania, where we offer a full range of products, from cash management to corporate finance. Their international network has a more selective approach. We are building leading positions in a number of key product areas, including Structured Finance, Financial Markets, Payments and Cash Management, and Leasing. Commercial Banking also manages ING Real Estate. Insurance/Investment Management (IM)
The insurance activities are structured by region: Insurance Benelux, Insurance Central & Rest of Europe, Insurance US, US Closed Block VA and Insurance Asia/Pacific. ING Investment Management is part of the insurance activities. Insurance Benelux Insurance Benelux includes ING’s life and non-life insurance, investment and pension businesses in the Netherlands, Belgium and Luxembourg. Insurance Central & Rest of Europe Insurance Central & Rest of Europe consists of ING’s life insurance and pensions operations in nine countries which include Poland, the Czech Republic, Slovakia, Hungary, Romania, Greece and Spain as well as greenfield operations in Bulgaria and Turkey. Insurance US Insurance US include ING’s retirement services and life insurance operations in the US. In the US, ING is the third-largest provider of defined contribution retirement plans in terms of assets under management and administration. US Closed Block VA US Closed Block VA consists of ING’s Closed Block Variable Annuity business in the US, which has been closed to new business since early 2010 and which is now being managed in run-off. Insurance Asia/Pacific Insurance Asia/Pacific is one of the major foreign life insurance companies in the region and is present in seven countries including Japan, Malaysia, South Korea, Thailand, China, Hong Kong and India. It offers life insurance, investment and retirement services products and services to a broad range of retail, corporate and institutional clients. ING Investment Management (ING IM) ING IM is the principal investment manager of ING Group with activities in Europe, North America, Asia-Pacificand the Middle East. ING IM provides a wide variety of actively-managed strategies, investment vehicles and advisory services in all major asset classes and investment styles. It delivers a wide range of investment strategies and services to ING’s global network of businesses and third-party clients.
3. Financial performance of the company: Sales, net profit, segment wise performance of the past 1 year: => ING Group announced on February 9 that annual underlying net profit in 2011 rose 15.1% to EUR 3,675 million, despite volatile markets and a sharply weaker macroeconomic environment. For the fourth quarter of 2011, ING Group posted an underlying net loss of EUR 516 million, reflecting lower results at the Bank and a loss at Insurance mainly due to the charge for the previously announced US Closed Block VA assumption changes, as well as hedge losses. Given the uncertain financial environment, increasing regulatory requirements and ING’s priority to repay the Dutch State, ING will not propose to pay a dividend over 2011 at the annual General Meeting in May 2012. Ratings:
Key figures in accordance with IFRS-EU In EUR million unless otherwise indicated
European financial top 20: (based on market value in EUR billion)
4. SWOT Analysis: Strengths, weakness, opportunities and threats faced by the company. => Strengths: -Huge capital base to absorb financial shocks. -Excellent training & care given to the agents. -Business experience in this field for more than 150 years. -Integrated approach to banking. -Asset management and insurance. -State of Art ING Direct Facility -International expertise of ING group -Spread of 230 offices across India -ING Vysya Bank is a premier private sector bank with over 1.5 million customers -Serves over 1 million policy holders in India Weaknesses: -A conservative marketing approach. -Presence of unethical agents that can hamper the image of the company. -Less penetration in rural areas -Mediocre publicity -Insurance companies have a poor image when it comes to payment of dues Opportunities: -Huge untapped market, as the concept of Life Insurance in Indiais still in the developing stage. -The rural market in India constitutes 740+ million people, and is by far the largest potential market in the world - Rural annual household income averages Rs.56,630 with high savings rates - Changing rural aspirations in consumption patterns and lifestyle unfolds opportunities for rural marketing - Literacy levels are rising steadily - IT has made significant in-roads Threats: -The Life Insurance Corporation Of India which has been ruling the Life Insurance market in India Since 1956. -Threat of new private players entering the market and also from the ones already existing. -Stringent Economic measures by Government and RBI -Entry of new NBFCs in the sector - Competitors are always threat to the this company.Ex.: 1. Bajaj Allianz, 2. Sahara Life Insurance, 3. Reliance Life Insurance.
5. Various strategies employed by the company in the course of conducting business. => ING is a global financial institution of Dutch origin, currently offering banking, investments, life insurance and retirement services to meet the needs of a broad customer base. Going forward, we will concentrate on their position as a strong European bank with attractive home market positions in Northern Europe and growth options in Central and Eastern Europe and Asia, while creating an optimal base for independent futures for their insurance operations (including investment management). To serve the interests of their stakeholders, increase management focus and create value for their shareholders, ING is moving towards separation of its banking and insurance operations. We believe the widespread demand for greater simplicity, reliability and transparency makes this the best ctheirse of action. The separation is also part of the restructuring plan submitted to the European Commission in order to get approval for the Dutch state aid received during the financial crisis. Their strategic priorities are to strengthen the company’s financial position, to restructure, to streamline the business portfolio, to repay the Dutch state aid and to build stronger banking and insurance/investment management businesses, all based on sound business ethics and good corporate citizenship. Banking strategy: In the future, ING Bank intends to be a strong European bank, with leading domestic banking positions in attractive, stable home markets, as well as a leading commercial bank in the Benelux and Central and Eastern Europe. We also intend to continue to selectively evolve their various ING Direct units into more mature full-service banking models. These initiatives in Europe, coupled with their positions outside of Europe, should give the Bank attractive growth potential in the long term. ING will build on its global presence and international network and capitalize on its leadership position in gathering savings, multi-channel distribution, simple propositions and marketing. Insurance and Investment Management strategy: On the insurance side, the main priorities are to continue improving performance and optimizing returns and value. ING Insurance/IM will focus on its customers and distributors by providing exemplary products and service, as it restructures in preparation for a stand-alone future. To serve the interests of their stakeholders, increase management focus and create value for their shareholders, ING is moving towards separation of its banking and insurance operations. We believe the widespread demand for greater simplicity, reliability and transparency makes this the best course of action. In the future, ING Bank will build on its global presence and international network and capitalize on its leadership position in gathering savings, multi-channel distribution, simple propositions and marketing. ING Insurance has a strong position as a global provider of life insurance and retirement services and is very well-positioned to capitalize on socio-economic trends. We will focus on earning their customers’ trust through transparent products, value for money and
superior service. This reflects their universal customer ideal: saving and investing for the future should be easier.
doc_137863208.doc
It describes about Competitor Analysis, SWOT analysis of ING, Company Description, General Information about ING group , it's Finance performance, SWOT analysis and Various Strategies employed.
COMPANY ANALYSIS: Description: ING is a global financial institution of Dutch origin offering banking, insurance and asset management to over 85 million private, corporate and institutional clients in over 40 countries. With a diverse workforce of approximately 130,000 people, ING is dedicated to setting the standard in helping their clients manage their financial future. ING wants to build its future on sustainable profit based on sound business ethics and respect for its stakeholders and be a good corporate citizen. For only by acting with professionalism and integrity, will we be able to maintain their stakeholders’ trust and preserve their reputation. Their Business Principles prescribe the corporate values we pursue and the responsibilities we have towards society and the environment: we act with integrity, we are open and clear, we respect each other and we are socially and environmentally responsible. History of ING: ING was founded in 1991 by a merger between Nationale-Nederlanden and NMB Postbank Group. During the past years ING has become a multinational with diverse international activities. The roots of ING can be traced to the insurers De Nationale Levensverzekering Bank and De Nederlanden van 1845 and to the public bank services such as De Rijkspostspaarbank and De Postcheque- and Girodienst, as well as to the Nederlandsche Middenstands Bank. These are the legal predecessors of the ‘founding fathers’ of ING: Nationale-Nederlanden and NMB Postbank Group. The founding of ING as one company was started in 1990 when the legal restrictions on mergers between insurers and banks were lifted in the Netherlands. This prompted insurance company Nationale-Nederlanden and banking company NMB Postbank Groep to enter into negotiations. The merger into Internationale Nederlanden Groep took place in 1991. The market soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING Group N.V. Since 1991, ING has developed from a Dutch company with some international business to a multinational with Dutch roots. This was achieved through a mixture of organic growth, such as the creation of ING Direct from scratch, as well as various large acquisitions. The first large acquisition took place in 1995, when ING took over Barings Bank. This acquisition increased the brand recognition of ING around the world and strengthened its wholesale banking presence in the emerging markets. And then there was Life of Georgia. This insurance company was acquired by Nationale-Nederlanden in 1979, resulting in a significant increase in activities in the US. Via Life of Georgia, the activities in Asia expanded considerably. However in 2004, ING as a group had become well-established in both regions and Life of Georgia was sold. Other acquisitions, such as the Belgian Bank Brussels Lambert, strengthened the Group’s presence in the Benelux. In addition, the activities in the United States were doubled as a
result of organic growth and the acquisition of Equitable of Iowa, ReliaStar, Aetna Financial Services and merchant bank Furman Selz. ING is also active in other parts of the world. In 2001, ING acquired a majority interest in the Polish Bank ?l?ski and entered the Indian life insurance market through ING Vysya Life Insurance. Furthermore, ING participates in a number of financial institutions. An important example is the partnership with the Bank of Beijing. Profile: ING is a global financial institution of Dutch origin, currently offering banking, investments, life insurance and retirement services to meet the needs of a broad customer base. Going forward, we will concentrate on their position as an international retail, direct and commercial bank, while creating an optimal base for an independent future for their insurance operations (including investment management). Stakeholders: ING conducts business on the basis of clearly defined business principles. In all their activities, we carefully weigh the interests of their various stakeholders: customers, employees, business relations and suppliers, society at large and shareholders. ING strives to be a good corporate citizen. Corporate responsibility: ING wants to build its future on sustainable profit based on sound business ethics and respect for its stakeholders and be a good corporate citizen. For only by acting with professionalism and integrity, will we be able to maintain their stakeholders’ trust and preserve their reputation. Their Business Principles prescribe the corporate values we pursue and the responsibilities we have towards society and the environment: we act with integrity, we are open and clear, we respect each other and we are socially and environmentally responsible.
General information about the company: In India: ING operates through three businesses in India, ING Vysya Life Insurance, ING Vysya Bank and ING Investment Management. ING Vysya Bank is a premier private sector bank with over 76-year heritage and 1.5 million satisfied customers. ING Investment Management believes in providing investors with the knowledge & opportunity to manage their future easily. The ING Business Principles are: They act with integrity -showing fair, honest and lawful behaviour so we continue to earn their stakeholders’ trust
They are open and clear -saying what we mean, meaning what we say and listening carefully We respect each other -we value diverse thinking and respect human rights We are socially and environmentally responsible -we will do no harm and seek positive change through their products, people and activities. ING Vysya Life Insurance Company Limited (ING Life Insurance India) is a life insurance company head quartered in Bangalore. ING Vysya Life Insurance recently achieved the significant milestone of completing 10 years of operations in India. The company is a joint venture between Exide Industries and ING Insurance International B.V ING Life Insurance India is currently present in over 200 cities and serves over 1 million policy holders in India. The company distributes its products through two channels, Tied Agency and Alternate Channel. The Tied Agency Channel comprises over 30,000 ING Life Insurance Advisors, spread across the country. The Alternate Channel is a fast growing distribution channel, and includes Bank assurance partner (ING Vysya Bank), Cooperative Banks, Corporate Agents and Brokers. About ING group: -In existence for 150 years. -World 9th largest leading private company. -Operates in 60 countries across 5 continents. -Has revenue average 76.58 billion Euro. -ING covers 75 million private, corporate & institutional Clients (in 50 countries) (2007). -Employees 1,20,000 people world wide. ING has achieved operational separation of Banking and Insurance/IM by January 1, 2011: At the beginning of 2011, Banking and Insurance/IM became separate, standalone businesses operating at arm’s length from each other within ING Group. In 2011, operational disentanglement of US and EurAsia Insurance/IM was finalized at the end of 2011. The operational separation consists of a combination of end-state and a few remaining interim solutions, mainly IT related. ING will continue to seek to replace the remaining interim solutions with permanent solutions.
How will ING divest its Insurance/IM operations? => Given the uncertain economic outlook and turbulent financial markets, especially in Europe, ING has announced on 12 January to explore other options for its Asian Insurance and Investment Management businesses ING will continue preparations for a standalone future of the European Insurance/IM businesses, including the possibility of an IPO ING also continues to prepare for the base case of an IPO for the US Insurance/IM businesses. ING’s business lines Banking From 1 January 2010, the banking activities are divided into two main business lines: Retail Banking and Commercial Banking. Retail Banking is composed of Retail Netherlands, Retail Belgium, Retail Central Europe, Retail Asia and ING Direct. Commercial Banking also manages ING Real Estate. Retail Banking Retail Banking provides retail and private banking services to individuals and small and medium-sized enterprises in the Netherlands, Belgium, Luxembourg, Poland, Romania, Turkey, India, Thailand and China (through a stake in Bank of Beijing) with a multiproduct, multi-channel distribution approach. In mature markets, we focus on wealth accumulation, savings and mortgages, with an emphasis on operational excellence, cost leadership and customer satisfaction. In developing markets we aim to become a prominent local player by offering simple but high quality products. ING Direct offers direct banking services in Canada, Spain, Australia, France, the US (sale of business was announced on 17 June 2011 and is expected to be completed in the fourth quarter of 2011), Italy, Germany, the UK and Austria. ING Director’s focus is on offering five simple and transparent retail banking products at very low cost: savings, mortgages, payment accounts, investment products and consumer lending. Commercial Banking Commercial Banking primarily targets large corporations in the Netherlands, Belgium, Poland and Romania, where we offer a full range of products, from cash management to corporate finance. Their international network has a more selective approach. We are building leading positions in a number of key product areas, including Structured Finance, Financial Markets, Payments and Cash Management, and Leasing. Commercial Banking also manages ING Real Estate. Insurance/Investment Management (IM)
The insurance activities are structured by region: Insurance Benelux, Insurance Central & Rest of Europe, Insurance US, US Closed Block VA and Insurance Asia/Pacific. ING Investment Management is part of the insurance activities. Insurance Benelux Insurance Benelux includes ING’s life and non-life insurance, investment and pension businesses in the Netherlands, Belgium and Luxembourg. Insurance Central & Rest of Europe Insurance Central & Rest of Europe consists of ING’s life insurance and pensions operations in nine countries which include Poland, the Czech Republic, Slovakia, Hungary, Romania, Greece and Spain as well as greenfield operations in Bulgaria and Turkey. Insurance US Insurance US include ING’s retirement services and life insurance operations in the US. In the US, ING is the third-largest provider of defined contribution retirement plans in terms of assets under management and administration. US Closed Block VA US Closed Block VA consists of ING’s Closed Block Variable Annuity business in the US, which has been closed to new business since early 2010 and which is now being managed in run-off. Insurance Asia/Pacific Insurance Asia/Pacific is one of the major foreign life insurance companies in the region and is present in seven countries including Japan, Malaysia, South Korea, Thailand, China, Hong Kong and India. It offers life insurance, investment and retirement services products and services to a broad range of retail, corporate and institutional clients. ING Investment Management (ING IM) ING IM is the principal investment manager of ING Group with activities in Europe, North America, Asia-Pacificand the Middle East. ING IM provides a wide variety of actively-managed strategies, investment vehicles and advisory services in all major asset classes and investment styles. It delivers a wide range of investment strategies and services to ING’s global network of businesses and third-party clients.
3. Financial performance of the company: Sales, net profit, segment wise performance of the past 1 year: => ING Group announced on February 9 that annual underlying net profit in 2011 rose 15.1% to EUR 3,675 million, despite volatile markets and a sharply weaker macroeconomic environment. For the fourth quarter of 2011, ING Group posted an underlying net loss of EUR 516 million, reflecting lower results at the Bank and a loss at Insurance mainly due to the charge for the previously announced US Closed Block VA assumption changes, as well as hedge losses. Given the uncertain financial environment, increasing regulatory requirements and ING’s priority to repay the Dutch State, ING will not propose to pay a dividend over 2011 at the annual General Meeting in May 2012. Ratings:
Key figures in accordance with IFRS-EU In EUR million unless otherwise indicated
European financial top 20: (based on market value in EUR billion)
4. SWOT Analysis: Strengths, weakness, opportunities and threats faced by the company. => Strengths: -Huge capital base to absorb financial shocks. -Excellent training & care given to the agents. -Business experience in this field for more than 150 years. -Integrated approach to banking. -Asset management and insurance. -State of Art ING Direct Facility -International expertise of ING group -Spread of 230 offices across India -ING Vysya Bank is a premier private sector bank with over 1.5 million customers -Serves over 1 million policy holders in India Weaknesses: -A conservative marketing approach. -Presence of unethical agents that can hamper the image of the company. -Less penetration in rural areas -Mediocre publicity -Insurance companies have a poor image when it comes to payment of dues Opportunities: -Huge untapped market, as the concept of Life Insurance in Indiais still in the developing stage. -The rural market in India constitutes 740+ million people, and is by far the largest potential market in the world - Rural annual household income averages Rs.56,630 with high savings rates - Changing rural aspirations in consumption patterns and lifestyle unfolds opportunities for rural marketing - Literacy levels are rising steadily - IT has made significant in-roads Threats: -The Life Insurance Corporation Of India which has been ruling the Life Insurance market in India Since 1956. -Threat of new private players entering the market and also from the ones already existing. -Stringent Economic measures by Government and RBI -Entry of new NBFCs in the sector - Competitors are always threat to the this company.Ex.: 1. Bajaj Allianz, 2. Sahara Life Insurance, 3. Reliance Life Insurance.
5. Various strategies employed by the company in the course of conducting business. => ING is a global financial institution of Dutch origin, currently offering banking, investments, life insurance and retirement services to meet the needs of a broad customer base. Going forward, we will concentrate on their position as a strong European bank with attractive home market positions in Northern Europe and growth options in Central and Eastern Europe and Asia, while creating an optimal base for independent futures for their insurance operations (including investment management). To serve the interests of their stakeholders, increase management focus and create value for their shareholders, ING is moving towards separation of its banking and insurance operations. We believe the widespread demand for greater simplicity, reliability and transparency makes this the best ctheirse of action. The separation is also part of the restructuring plan submitted to the European Commission in order to get approval for the Dutch state aid received during the financial crisis. Their strategic priorities are to strengthen the company’s financial position, to restructure, to streamline the business portfolio, to repay the Dutch state aid and to build stronger banking and insurance/investment management businesses, all based on sound business ethics and good corporate citizenship. Banking strategy: In the future, ING Bank intends to be a strong European bank, with leading domestic banking positions in attractive, stable home markets, as well as a leading commercial bank in the Benelux and Central and Eastern Europe. We also intend to continue to selectively evolve their various ING Direct units into more mature full-service banking models. These initiatives in Europe, coupled with their positions outside of Europe, should give the Bank attractive growth potential in the long term. ING will build on its global presence and international network and capitalize on its leadership position in gathering savings, multi-channel distribution, simple propositions and marketing. Insurance and Investment Management strategy: On the insurance side, the main priorities are to continue improving performance and optimizing returns and value. ING Insurance/IM will focus on its customers and distributors by providing exemplary products and service, as it restructures in preparation for a stand-alone future. To serve the interests of their stakeholders, increase management focus and create value for their shareholders, ING is moving towards separation of its banking and insurance operations. We believe the widespread demand for greater simplicity, reliability and transparency makes this the best course of action. In the future, ING Bank will build on its global presence and international network and capitalize on its leadership position in gathering savings, multi-channel distribution, simple propositions and marketing. ING Insurance has a strong position as a global provider of life insurance and retirement services and is very well-positioned to capitalize on socio-economic trends. We will focus on earning their customers’ trust through transparent products, value for money and
superior service. This reflects their universal customer ideal: saving and investing for the future should be easier.
doc_137863208.doc