MEXICO - ING has agreed to sell its non-core insurance business to AXA to concentrate on its pension and annuity business.
Tom McInerney, ING executive board member and CEO for ING Insurance Americas, said the group saw potential in the Mexican pension business: "ING will focus on boosting existing businesses and further invest in the region through organic growth, strategic bolt-on acquisitions and distribution relationships."
ING claimed its Mexican Afore, or pension business, amounted to €6.8bn making it the third largest pension provider in the country.
The group acquired Santander's pension business in Latin America for €1.3bn in July 2007. It also took over Origines Seguros de Retiro in Argentina for $280m in November.
Following the Santander deal, ING said it intended to double its pension fund assets under management in the region between 2008 and 2011.
Michel Tilmant, chairman of the executive board of ING Group, said: "This divestment is part of ING's strategy to focus its activities on its core expertise of banking, investments, life insurance and retirement services."
The transaction is subject to national regulatory approval and should close in 2008.
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