ING is selling its Latin American pensions, life insurance and investment management operations for a total consideration of € 2,680mincluding assumed debt of € 65m, to Grupo de Inversiones Suramericana (“GrupoSura”). The transactions values the deal at 16 times FY11E earnings, 1.8 times book value and 3.1 times tangible book. In local GAAP the pricing would even be slightly higher. ING intends to keep the € 2,615m cash it receives at the insurance operations which will reduce leverage by € 2.8bn. The sold operations will be recorded as discontinued business as of 2Q11 and earnings will remain with ING until closing which is expected at the end of 2011. ING’s 36% stake in leading Brazilian insurer Sul America SA is NOT part of the divestment deal and will be divested by ING serparately. The Mexican mortgage and leasing (sold in March) business is also not included in the deal. Our View: The divestment of the Latam insurance operations didn’t come as a surprise and the valuation is quite decent. Latam and Asian activities of ING are however the nicest franchise of the group. American and European insurance operations should receive much lower multiples. Conclusion: We remain Accumulating with an unchanged target at EUR 9.0.