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Enoch Yiu

Netherlands-based ING Groep will continue to expand Aetna's life insurance and pension business in Asia following its US$7.7 billion takeover of the insurance giant's US financial and international businesses, according to Phil Shirriff, chief executive of ING Asia-Pacific.

Under an agreement reached by the two groups yesterday, ING will take over all Aetna's international business, as well as its insurance business in the United States, excluding the health-care segment in which it is the largest player.

The deal will include Aetna's Hong Kong operation - Aetna Life Insurance, which is the fifth-largest SAR life insurer in terms of last year's premium income. It is also a Mandatory Provident Fund (MPF) service provider.

'We will continue to sell life insurance and MPF [plans] in Hong Kong,' Mr Shirriff said.

Aetna's Hong Kong operation would fill a gap in ING's financial business in the SAR, where the group has an investment bank, an asset management company, a securities house and a small general insurance company.

It has no life or pension business.

The deal will mark ING's entry into the Hong Kong life insurance and pension business.

'Aetna has a very strong team in Asia. The takeover will thus increase ING's presence in the Asian insurance and pension market,' Mr Shirriff said.

ING had no plan to lay off agents or staff as the deal was not a cost-saving exercise but an expansionary move. He said ING and Aetna would set up working groups in eight Asian countries to integrate their businesses.

'We will develop integration strategies during the next few months for implementation in 2001 for those countries where we overlap and we will strive towards a seamless transaction for all our constituencies,' Mr Shirriff said.

'Despite the change of control and ownership, all ING and Aetna businesses in the region are committed to continue providing excellent products and services to our customers.' Aetna insurance policy benefits would not be affected by the takeover, but the company's name would change to reflect the new ownership.

Besides Hong Kong, Aetna has operations in Japan, Taiwan, Malaysia, the Philippines, Indonesia, Thailand and the mainland.

Aetna received a mainland life insurance licence several years ago, while ING obtained a life licence last month. Mr Shirriff said ING would seek the authorities' guidance on handling the licences after the takeover.

Patrick Poon, Aetna International senior vice-president and Asia regional head, said the marriage would strengthen operations in Asia.



ING to continue expansion of Aetna