* Transaction fits in ING's Back to Basics strategy for the
U.S. insurance business
* Transaction to have limited positive impact on 2010
earnings
ING announced today that it has reached an agreement to transfer its
U.S. group reinsurance business, ING Reinsurance U.S., to Reinsurance
Group of America, Inc. Terms of the agreement were not disclosed. RGA
is a U.S.-based global provider of life reinsurance.
"This transaction fits within ING's Back to Basics strategy to
simplify our structure and focus our U.S. insurance operations on
Retirement Services, Life Insurance, and Rollover Annuities," said
Tom McInerney, CEO for ING Insurance Americas. "Although ING
Reinsurance is not part of ING's core businesses in the U.S., it is a
solid, well-run, and client-focused business that will complement a
company that considers reinsurance its core business. We believe that
RGA will be an excellent owner of ING Reinsurance."
The transaction is structured as a reinsurance agreement between RGA
and ING. The disposition of ING Reinsurance U.S. will have a limited
positive impact on ING's 2010 earnings. In addition, the transaction
is expected to release nearly EUR 100 million in capital and improve
the debt/equity ratio of ING Insurance by around 60 basis points.
After the agreement, ING will continue to retain a reinsurance
portfolio in the U.S. that has been in run-off since 2002.
ING Reinsurance U.S. is a leading provider of reinsurance programs
for group life, accident, and health insurance companies in the U.S.,
Guam, Canada, Bermuda, and the Caribbean. It focuses on medium and
large providers of group insurance products and operates primarily
out of Minneapolis, Minn.
This transaction is subject to regulatory approvals and is expected
to be closed in the first quarter of 2010.
Press Enquiries Investor Relations
Enquiries
Victorina de Boer Dana Ripley Bill Cokins
ING Group ING Insurance ING Group
Americas
+31 20 541 5469 +1 770.980.4865 +31 20 541 8607
victorina.de.boer@ing.com dana.ripley@us.ing.com bill.cokins@ing.com
ING Profile
ING is a global financial institution of Dutch origin offering
banking, investments, life insurance and retirement services to over
85 million private, corporate and institutional clients in more than
40 countries. With a diverse workforce of about 110,000 people, ING
is dedicated to setting the standard in helping our clients manage
their financial future.
Important legal information
Certain of the statements contained herein are statements of future
expectations and other forward-looking statements. These expectations
are based on management's current views and assumptions and involve
known and unknown risks and uncertainties. Actual results,
performance or events may differ materially from those in such
statements due to, among other things, (i) general economic
conditions, in particular economic conditions in ING's core markets,
(ii) performance of financial markets, including emerging markets,
(iii) the frequency and severity of insured loss events, (iv)
mortality and morbidity levels and trends, (v) persistency levels,
(vi) interest rate levels, (vii) currency exchange rates (viii)
general competitive factors, (ix) changes in laws and regulations,
(x) changes in the policies of governments and/or regulatory
authorities, (XI) conclusions with regard to purchase accounting
assumptions and methodologies, (XII) ING's ability to achieve
projected operational synergies. ING assumes no obligation to update
any forward-looking information contained in this document.
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.
http://hugin.info/130668/R/1347734/324241.pdf
http://www.ing.com
Copyright © Hugin AS 2009. All rights reserved.
