April 9 (Bloomberg) -- ING Groep NV, the biggest Dutch financial-services firm, said it plans to raise as much as 8 billion euros ($10.6 billion) selling assets to boost capital, sending shares 18 percent higher in Amsterdam trading.

ING expects to sell as many as 15 businesses “over time and as market conditions permit,” leading to proceeds of 6 billion euros to 8 billion euros, the Amsterdam-based company said today. Unloading the units would free up about 4 billion euros in capital, ING said.

“I like what I see,” said Christian Vondenbusch, a portfolio manager at Robeco Asset Management who oversees about 700 million euros, including ING shares. “Back to basics, de- risking of the balance sheet and the raising of disposals with a capital relief of 4 billion euros -- that is more than I dared to hope for.”

ING said in February it would review operations after posting a fourth-quarter loss of 3.71 billion euros and tapping the government rescue fund. The retail business in Ukraine will be “unwound,” while life insurance activities in China and Japan are under review. In the U.S., ING will explore “strategic options” for its employee benefits, group reinsurance and existing annuities book, it said today.

The Dutch company’s results in the first quarter were significantly better than the fourth, Chief Executive Officer- designate Jan Hommen said on a conference call today.

Question on ‘Timing’

ING rose 93.5 cents to 6.19 euros, valuing the company at 12.8 billion euros. ING declined 16 percent so far this year in Amsterdam trading, compared with an 18 percent drop in the 37- company Dow Jones STOXX Insurance 600 Index.

ING already raised 1.4 billion euros in February by selling its 70 percent stake in ING Canada Inc., the country’s largest property and casualty insurer. The company can accelerate the additional sales if necessary, Hommen told investors in Rotterdam today.

ING’s plan to shed assets coincides with efforts by New York-based insurer American International Group Inc. to dispose of units and repay the U.S. following a $182.5 billion bailout.

“A question I have regards timing and proceeds of the disposals,” said Vondenbusch. “It’s a buyers’ market.”

No Split-Up

ING received a 10 billion-euro government lifeline in October and transferred the risk on most Alt-A mortgage assets to the state. The firm has already eliminated more than half of the 7,000 jobs it planned to cut to reduce operating costs by 1 billion euros this year. ING had earlier said it may sell as much as 3 billion euros of assets.

Financial companies worldwide have announced almost 300,000 job cuts after $1.29 trillion of writedowns and credit losses since the start of 2007.

ING’s banking business will concentrate on operations in the Benelux region, as well as Poland, Romania and Turkey. In insurance, ING will focus on life and retirement services in the Benelux countries, central Europe, the U.S., Latin America and Asia. The company will operate its banking and insurance units separately under “one group umbrella to reduce complexity,” ING said.

“It’s good that Hommen takes ING back to basics and reduces complexity,” said Edwin Slaghekke, who helps manage about 60 billion euros at Aviva Plc’s Delta Lloyd Asset Management in Amsterdam, including ING shares. “Perhaps in due time, he should even consider breaking up ING into a bank and an insurance company.”

Hommen denied that the company is moving toward such a split-up. He said the U.S. online-banking unit is one of the company’s growth opportunities outside of Europe. The German Internet banking division is “one of the building blocks going forward,” he said.

ING plans to integrate its investment-management units in Europe, the Americas and Asia and include real-estate investment management. The company will review options to expand the combined business, while keeping management control, it said.

To contact the reporter on this story: Martijn van der Starre in Amsterdam at vanderstarre@bloomberg.net; Fred Pals in Amsterdam at fpals@bloomberg.net

Last Updated: April 9, 2009 11:52 EDT