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Amsterdam, 16 October 2009
- 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
Victorina de Boer
ING Group
+31 20 541 5469
victorina.de.boer@ing.com
Dana Ripley
ING Insurance Americas
+1 770.980.4865
dana.ripley@us.ing.com
Investor Relations Enquiries
Bill Cokins
ING Group
+31 20 541 8607
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.
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