ING on track for insurance IPO: CFO
ING is on track for its planned initial public offering, the group's chief financial officer told CNBC, after the Dutch banking and insurance group announced it would make its defined benefits pension fund financially independent.
"We're on track to achieve what we want to achieve, we're on track with the IPO of insurance this year and this step with the pension fund will make that a more attractive proposition," Patrick Flynn told CNBC Europe's "Squawk Box" after the move was announced.
(Read More: ING US IPO Prices at $19.50, Below Expectations)
ING said on Thursday that the move to ring fence the group's pension fund would result in an after-tax charge of 1.2 billion euros ($1.63 billion) and separates the obligations of its bank and insurance business ahead of the planned IPO of the latter.
During the 2008 financial crisis, ING required a 10 billion euro ($13 billion) bailout from the Dutch government. As part of the bailout agreement, the company had to separate its banking and insurance operations and has since been divesting assets in order to repay the state.
(Read more: ING miss earnings but restructuring on track)
Flynn said the move would simplify the group's balance sheet and "removes from both the bank and the insurance [business] volatility in accounting and equity and volatility in regulatory capital so it's a positive step."
- By CNBC's Holly Ellyatt, follow her on Twitter @HollyEllyatt