ING to sell its Hong Kong, Macau Thai insurance units to Pacific for $2.14 bn

Dutch financial firm ING has agreed to sell its Hong Kong, Macau and Thailand insurance units to Pacific Century Group (PCG), owned by Richard Li, son of Asia's richest man Li Ka-shing, for $2.14 billion (€1.64 billion) in cash.

The deal announced over the weekend, comes nearly two weeks after ING agreed to sell its Malaysian insurance business to Pan Asian insurer AIA Group Ltd, for $1.73 billion in cash (See: ING to sell Malaysian insurance business to AIA Group for $1.73 bn).

The Amsterdam-based banking giant said that the deal does not include ING's Investment Management's funds management businesses in Hong Kong and Thailand.

The transaction values of the combined life insurance businesses of the Hong Kong, Macau and Thai units at 24.3 times estimated 2012 earnings and 1.9 times estimated 2012 book value of € 865 million ($1.3 billion), both on an IFRS basis.

At closing, ING said, it expects the transaction to deliver a net gain of approximately €1 billion.

ING is a top 10 life insurer in each of the three countries.