ING to acquire Allianz of Canada

Allianz to keep Allianz Global Risks (AGR) in Canada

Amsterdam – October 8, 2004 – ING Group and Allianz Group announced today that ING Canada has concluded a definitive share purchase agreement for the acquisition of Allianz’s property and casualty (P&C) insurance operations in Canada.

Under the terms of the agreement, ING will acquire Allianz of Canada Inc. and its subsidiaries Allianz Insurance Company of Canada, group insurer Trafalgar Insurance Company of Canada as well as Canada Brokerlink, a network of insurance brokerages operating in Ontario and Alberta. Allianz will however retain its Canadian industrial lines business, which is part of Allianz Global Risks (AGR). These transactions will be subject to regulatory approvals.

As a result of the acquisition, ING’s gross written premiums in Canada will increase by approximately CDN$ 600 million to reach more than CDN$ 4 billion. ING will also expand its network of independent distribution partners. More than 800 employees from Allianz Canada will transfer to ING, which currently has a workforce of more than 5,600 employees across the country. Also involved in the transaction are Canada Brokerlink’s 525 employees.

The Allianz acquisition with its portfolio of personal and small to medium commercial lines business reinforces ING’s position in its preferred segments of the market. “The acquisition allows us to continue expanding our activities within the P&C insurance industry, especially in Ontario and Alberta”, said Claude Dussault, President and Chief Executive Officer of ING Canada. “As we increase the scale of our activities, we will also be in a better position, in collaboration with our distribution partners, to improve our offering of innovative solutions to consumers.”

“With its solid performance, ING Canada continues to be the leading provider of P&C insurance in Canada. Its past success and future growth potential were decisive factors in the decision to grow our market share in Canada”, said Fred Hubbell, Member of the Executive Board of ING Group and responsible for Insurance Americas.

“This transaction enables Allianz to achieve two objectives. In selling our Canadian personal lines, some of the commercial lines operations and the brokerage business, we stick to our strategy to focus on core business and markets and to reduce complexity. Secondly, retaining the industrial lines operations will allow us to successfully support Canadian and international clients of Allianz Global Risks,” explained Jan Carendi, Board Member of Allianz AG, responsible for the Americas.

Amsterdam-based ING Group is a global financial institution offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries. In Canada, ING is the leading provider of property and casualty insurance with projected premiums of approximately CDN$3.6 billion in 2004. Assets at the end of last year amounted to CDN$7.6 billion. ING Canada offers its insurance products and solutions through ING Insurance, ING Novex, BELAIRdirect and Nordique.

Allianz Group, with its head office in Munich, is present in over 70 countries providing its customers worldwide with a comprehensive range of services in the areas of property and casualty insurance, life and health insurance, asset management and banking. Allianz Canada is the 13th largest property and casualty insurance company in the country with premiums of CDN$898 million and CDN$1.9 billion in assets.