ANZ settles with insurer over frozen funds

ANZ Bank New Zealand announced the payment in its latest Quarterly Disclosure Statement.

“In December 2013, the Bank reached a conditional agreement with insurers to settle its claim in relation to the Bank’s former involvement in the ING Diversified Yield Fund and the ING Regular Income Fund for payment of AUD85 million, subject to taxation,” the bank said.

The funds were managed by ING New Zealand, which was jointly owned by ANZ and ING, a Dutch banking giant.

Attracting a combined $700 million from about 15,000 investors before they were frozen in March 2008, the funds invested in collateralised debt obligations (CDOs).