ING Chief Executive: Company Eyes 2014 IPO for European Insurance Business
May 9, 2013 by Best's News Service
AMSTERDAM – ING Group, fresh from raising $1.3 billion from the initial public offering of its U.S. insurance business, is planning an IPO of its European insurance operations next year, Jan Hommen, chief executive officer of ING, said in a conference call.
“We are focusing our attention on the European insurance business and getting them ready for the first phase of the IPO with the aim that we bring them to market sometime in 2014,” Hommen said during the call.
The May 2 IPO of the U.S. operations satisfied the company’s agreement with the European Commission to sell 25% of its U.S. business before the end of the year. It also raised 500 million euros ($658.7 million) in proceeds for the group, Hommen said. The remainder of the IPO proceeds will be used to support the operations of ING U.S.
The company is separating its insurance operations from its banking operations as part of a restructuring plan following the $13 billion bailout from the Dutch government during the 2008 global financial crisis. A 2010 restructuring plan requires ING to divest its global insurance, ING Direct (United States only) and asset management operations by 2013 through a sale, an IPO or a combination of both (Best’s News Service, May 3, 2013).
The group also posted 800 million euros in net profit for the first quarter, up 38.2%. ING U.S. (NYSE: VOYA) plans to rebrand in 2014 as Voya Financial. In late-afternoon trading May 8, shares of its stock were trading at $22.74, up 4.8% from the previous close.
ING Life Insurance and Annuity Co. and ING USA Annuity and Life Insurance Co. each currently has a Best’s Financial Strength Ratings of A (Excellent).
(By Meg Green, senior associate editor, BestWeek: Meg.Green@ambest.com) BN-NJ-05-08-2013 1542 ET #
