ING Files With SEC to Accommodate Reduction in Interest in ING US
March 18, 2014 by Marie Suszynski
AMSTERDAM – ING Group said its U.S.-based retirement, investment and insurance businesses subsidiary, ING U.S. Inc., has filed a registration statement with the U.S. Securities and Exchange Commission to accommodate any future transactions to reduce ING Group’s current 57% interest in ING U.S.
However, the “final structure, timing, size and offer price for the possible transactions have not yet been determined and remain subject to market and other conditions,” ING Group said in a statement.
ING Group is planning to divest its remaining stake in ING U.S. The company has said it has a strategy to separate and divest its global insurance and investment management businesses.
ING U.S. (NYSE: VOYA) had an initial public offering last May.
In 2008, ING Group received a US$13 billion bailout from the Dutch government during the global financial crisis. The restructuring plan between ING and the European Commission as of 2010 required ING to divest its global insurance, ING Direct in the United States only, and asset management operations by 2013 through sale, an IPO or a combination of those (Best’s News Service, Jan. 10, 2014).
Last year, ING Group NV posted a net income of €3.2 billion (US$4.37 billion) on discontinued operations, divestitures and other items, which was 22.3% lower than the previous year. Underlying net profit jumped 22.2% to €3.25 billion.
In January, ING U.S. Inc. said it would change its name to Voya Financial Inc. in April. A rebranding period through September will follow as its Dutch parent divests certain global businesses.
On the afternoon of March 11, shares of ING U.S. were trading at $36.41, down 1.38% from the previous close.
Rated companies of ING Group N.V. have a current Best’s Financial Strength Rating of A (Excellent) or A- (Excellent).
(By Marie Suszynski, Best’s News Service correspondent)