Grupo de Inversiones Suramericana, a Colombian insurance and financial services group, agreed to acquire ING Group’s Latin American pensions, life insurance and investment management operations for €2.68 billion ($3.84 billion).
The deal, which is expected to close later this year, will increase assets under management for GRUPOSURA by about $70 billion to $120 billion. ING will receive €2.615 billion in cash, and GRUPOSURA will assume about €65 million in debt.
“The sale is the first major step in the divestment of ING’s insurance and investment management activities,” said an ING news release.
Included in the transaction are the mandatory pension businesses in Chile, Colombia, Mexico, Uruguay and part of ING’s 80% stake in AFP Integra in Peru, according the release. The transaction also includes the investment management operations in these five countries along with other voluntary savings and life insurance businesses in the region.
“Going forward, we continue to prepare our remaining insurance and investment management businesses for our base case of two (initial public offerings) — one for the U.S. businesses and one for the European and Asian businesses — so that we will be ready to proceed when markets are favorable,” Jan Hommen, CEO of ING Group, said in the release.
The divestments are part of the firm’s broader restructuring plan following a Dutch government bailout during the financial crisis of 2008-2009. Earlier this year, ING Group agreed to sell ING Clarion Real Estate Securities and the majority of the firm’s real estate investment management operations in Europe and Asia to CB Richard Ellis. At the same time, ING agreed to sell ING Clarion Partners to management and private equity firm Lightyear Capital.