AMSTERDAM Jan 9 ING Groep NV said on
Thursday it will make its defined benefits pension fund
financially independent, resulting in an after-tax charge of
about 1.2 billion euros ($1.63 billion) and paving the way for
the IPO of its insurance business.
The charge will be booked as a special item in the first
quarter of 2014, of which 800 million euros will be attributed
to ING Bank and 400 million euros to ING Insurance.
ING said the agreement with various parties, including
unions and the pension fund, would separate the obligations
ahead of the planned initial public offering of its insurance
"This agreement represents a significant milestone in the
separation of bank and insurance as we prepare for the base case
IPO of ING Insurance planned for this year," said ING Chief
Executive Ralph Hamers in a statement.
"The agreement will greatly reduce the current volatility in
our equity and will further simplify the group."