Dutch insurance firm ING Group has sold its 26% stake in ING Vysya Life Insurance Company to its joint venture partner Exide Industries for an undisclosed amount.
The deal, which was originally inked in January this year, is a part of a previously unveiled divestment strategy of its Asian insurance and investment management businesses.
The transaction will not have any effect on ING Vysya Bank, in which the group holds 44% stake, or its fund management business in India.
The process to divest the other insurance and investment management businesses in Asia, including ING's fund management operations in India, will be continuing, according to the Netherlands-based firm.
Headquartered in Bangalore, ING Vysya Life Insurance serves more than one million customers in over 200 cities across India, through more than 30,000 ING Life Insurance Advisors, bancassurance partner ING Vysya Bank, referral partners, corporate agents and brokers.
Exide Industries, which has been partner in the JV since 2005, is a producer of automotive and industrial batteries.
ING provides banking, investments, life insurance and retirement services, with operations mostly concentrated in China, Hong Kong, India, Japan, Malaysia, South Korea and Thailand.
The group, which received a €10bn package during the financial crisis of 2008, is offloading its insurance operations across the globe to shore up the required capital ahead of implementation of new capital rules and to pay back the creditors.
Most recently, it announced the sale of its underwriting businesses in Hong Kong, Macau and Thailand to Pacific Century Group (PCG), for a combined consideration of €1.64bn ($2.14bn) in cash.
ING insurance operations in Hong Kong and Macau comprise life insurance, general insurance, pension and financial planning units, while Thai operation includes life insurance.
In October 2012, ING has inked an agreement with Hong Kong's AIA, to offload its Malaysian insurance business for €1.3bn in cash.
