Oct 26 (Reuters) - Dutch financial services group ING Group NV will split its insurance and investment management and banking operations, ending the group's combination as formed in 1991.
Following are details of the breakup of the group, which offers banking, insurance, asset management, leasing and real estate services globally, and its preliminary Q3 results.
BANK AND INUSRANCE SPLIT-UP
* ING will divest all its insurance and investment management activities either through initial public offerings, sales or a combination of the two
* ING's bank operations will be mainly focussed on Europe
* Restructuring to be completed by end of 2013
* ING will divest its online savings bank ING Direct USA by the end of 2013 to get approval from the European Commission for its restructuring plan
* ING will create a new company in the Dutch retail market with a balance sheet total of 37 billion euros ($55.52 billion) by combining some of its mortgage operations and its existing consumer lending portfolio of ING Retail, and then divest it
PAYING BACK STATE AID
* ING plans to pay back 5 billion euros of core tier 1 securities to the state in December at a premium. ING will also pay the 8.5 percent coupon on the securities, amounting to around 260 million euros
* The repayment will also come with a premium with a minimum of 333 million euros and a maximum of 691 million euros.
* ING will pay the state 1.3 billion euros more on a net asset value basis for its state guarantee on 22 billion euros of U.S. credit assets
RIGHTS ISSUE
* A 7.5 billion euros rights issue will finance the repayment of state aid. The amount is half of the 10 billion ING got last year, and the higher costs for the U.S. credit guarantee.
* The issue is to be launched following shareholder approval at an EGM on Nov. 25.
* The rights issue is underwritten by Goldman Sachs International and J.P. Morgan, while Goldman Sachs, ING and JPMorgan are acting as joint global co-ordinators and joint bookrunners
PRELIMINARY Q3 RESULTS
* Underlying net result estimated around 750 million euros, comparing to 229 million euros in the second quarter of 2009 and a 568 million loss in the third quarter of 2008
* Negative 850 million euros market impacts largely related to debt securities and real estate investments, comparing to a negative impact of 1.4 billion euros in the preceding quarter
* Impairments on debt securities mainly related to the retained portion of ING Direct's Alt-A RMBS. These impairments on Alt-A RMBS amounted to negative 550 million eur and were triggered by continued deterioration in the U.S. housing market
* The bank's core tier 1 ratio rose to 7.6 percent from 7.3 percent in the previous quarter, and the tier 1 ratio increased to 9.7 percent from 9.4 percent
($1=.6664 Euro) (Compiling by Gilbert Kreijger; Editing by Jon Loades-Carter)