Australian Superannuation Assets Declined in 2008
Australia’s superannuation (retirement) assets declined 2.5% to A$1.17 trillion (US$750 billion) for the financial year ending June 2008, down A$25.1 billion from a year earlier.
Contributions to all superannuation entities totalled A$120.4 billion, with employers contributing A$69.4 billion and members contributing A$49.8 billion for the 2008 financial year, according to the Australian Prudential Regulation Authority.
The global financial crisis has hit the funds’ financial performance and their return on assets, an indicator for net earnings of superannuation assets towards members’ benefits. By last June, return on assets turned negative to -7.8% for all entities, compared with 13.3% a year earlier and the 10-year average of 5.2%.
—Iris Lai


Tokio Marine to Sell Brazilian Pension, Life Subsidiary
Tokio Marine Holdings Inc. [50962] said it will sell its Brazilian pension and life insurance subsidiary, Real Tokio Marine Vida a Previdencia S.A. [77769] to Banco Santander S.A. for R$678 million (US$285 million).
The Japanese insurance group expects to make a profit of ¥12 billion (US$121 million) from the sale of its 50% stake in the Brazilian pension and life insurance unit, held by Tokio Marine Seguradora S.A. [84237]. The transaction earnings will be realized on its financial result for the 2008 fiscal year, which ends March 2009, said Tokio Marine.
ABN Amro Brasil Dois Participacoes S.A., a subsidiary of Banco Santander S.A., owns the other 50% stake at Real Tokio Marine. The pension and life insurer earned R$1.7 billion in premium and pension income for the fiscal year ended December 2008, and its total assets stood at R$6.7 billion.
In Brazil, the Tokyo-based insurance group operates nonlife and life insurance business under its two subsidiaries: Tokio Marine Seguradora S.A. and Tokio Marine Brasil Seguradora S.A. [87990].
Tokio Marine puts overseas expansion as a key driver for business growth. By 2011, it plans to increase the business share of overseas operations from 21% in 2007 to 27%, totaling ¥60 billion in earnings.
—Iris Lai


ING Asia/Pacific Sells Its Platform Services Unit
Though ING Insurance Asia/Pacific Ltd. is selling its Hong Kong-based wholly owned subsidiary ING Platform Services Ltd. to Singapore-based platform provider iFAST Corporation Pte Ltd., the Dutch financial services group said the sale does not mean ING is looking to pull back on Asia-Pacific markets overall.
The sale is expected to close by the end of this year, subject to regulatory approval. Chee Cheong, ING Insurance Asia/Pacific’s greater China regional chief executive officer, said the sale of IPS reflects ING Group’s [85144] strategic decision to divest certain entities that “do not fit with ING’s core focus,” which are banking, investments, insurance and retirement services.
Cheong added the sale of the platform services is also “not related to IPS as a business or the industry as a whole, and certainly has nothing to do with [ING] running of out of cash.”
Cheong declined to disclose the transaction size, saying that “the amount is confidential between ING and iFAST.” He added the transaction “is not material to ING Group.”
Cheong confirmed that “ING as a group is currently in the process of reviewing its portfolio of investments across the world and as such it would be inappropriate to speculate on what businesses may or may not be included in any divestment plans” at the moment.
He emphasized that “ING is committed to the Asia-Pacific region,” which he said the group has stated on numerous occasions, and is “looking to expand our business further in the region.” As a result, “we expect few divestments to take place,” he said.
Cheong explained that iFAST was “keen to buy the business as it complements their existing footprint, further cementing their leadership in the Singapore market and putting them more firmly on the map in Hong Kong.”
According to Cheong, the insurer is confident that it has found a buyer in iFAST who will be committed to the long-term development of the platform and the growth of the independent financial adviser business in Hong Kong, and assisting further growth of IPS in Asia. IPS’s strength in Hong Kong will allow iFAST to take a leading position in the market following its expansion in India and Malaysia last year, he added.
IFAST’s CEO and chairman, Lim Chung Chun, said the acquisition of IPS “really complements our existing footprint and demonstrates our commitment to the Hong Kong market.”
Lim also has expected the deal to help the company contribute further to the growth of the Hong Kong mutual fund industry.
Currently, IPS operates in Hong Kong and Singapore.
—Rebecca Ng