ING Moves Toward Planned Break-Up As US Unit Files SEC Statement
November 13, 2012 by David Pilla
| David Pilla |
Netherlands-based ING Group NVtook a step toward its planned break-up as its U.S. investment, retirement and insurance business filed a registration statement with the U.S. Securities and Exchange Commissionregarding a proposed initial public offering of common stock.
In the Form S-1 filing, ING U.S. Inc. said it serves about 13 million individual and institutional customers in the United States and has about 7,150 employees. The company said it offers products and services through “a broad group of financial intermediaries, independent producers, affiliated advisors and dedicated sales specialists throughout the United States.”
ING U.S. doesn’t provide an IPO share price or proceeds target in the filing as the registration statement is not yet active.
A request for additional comment from ING U.S. was not immediately successful.
According to the filing, ING U.S. posted net income of $129.2 million for the first six months of 2012, down from $661.2 million for the same period a year earlier. Premiums rose 6.2% to $936.4 million for the half. Net realized capital losses increased to $764.2 million from $550.9 million.
ING U.S. has three active business units: retirement solutions, which include retirement products and annuities; investment management; and insurance solutions, which includes individual life products.
Total shareholder equity as of June 30, 2012 was $12.84 billion, up 4% from a year earlier.
ING Group recently announced it will cut about 2,350 jobs as a cost-saving measure as it works on plans to separate its insurance and banking operations, at the same time it announced a 64% fall in third-quarter net income (Best’s News Service, Nov. 7, 2012).
As part of its plan to separate the insurance and banking operations, ING is looking to launch the U.S. insurance business through an IPO while divesting its Asia-Pacific insurance units piecemeal. The group announced deals to sell units in Hong Kong, Macao and Thailand, as well as in China and Malaysia.
The group is also seeking to divest units in Japan, South Korea and India as well as additional holdings in China.
Connecticut-based ING Life Insurance and Annuity Co. and Iowa-based ING USA Annuity and Life Insurance Co. currently have a Best’s Financial Strength Rating of A (Excellent).
(By David Pilla, international editor, BestWeek: David.Pilla@ambest.com)
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(c) 2012 A.M. Best Company, Inc. |
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A.M. Best Company, Inc. |
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