U.S. Markets closed

ING sells Korean insurance arm for $1.66 billion

AMSTERDAM (AP) -- ING Groep NV says it has agreed to sell a 90 percent stake in its South Korean insurance arm to private equity firm MBK Partners for around $1.66 billion (1.24 billion euros).

ING said Monday it would book an after-tax loss of 950 million euros on the deal in the third quarter.

ING CEO Jan Hommen said in a statement the move brings it into the "end phase" of its restructuring, as it is still struggling to pay back bailout money it received from the Dutch state in 2008. Under direction of the European Union's competition authority, ING must separate its insurance and banking activities.

After listing its U.S. insurance arm this year, it plans to spin off its European insurance arm in 2014.