ING to sell US group reinsurance biz

Dutch financial services major ING today said it will sell its US group reinsurance business to Reinsurance Group of America.

In a statement ING said it has reached an agreement to transfer its US group reinsurance business, ING Reinsurance to Reinsurance Group of America.

"This transaction fits within ING's Back to Basics strategy to simplify our structure and focus our US insurance operations on Retirement Services, Life Insurance, and Rollover Annuities," ING Insurance Americas CEO Tom McInerney said.

However, terms of the agreement were not disclosed. The transaction is expected to be closed in the first quarter of 2010 subject to regulatory approvals.

 

The transaction deal would have a limited positive impact on ING's 2010 earnings. In addition, the transaction is expected to release nearly euro 100 million in capital.

ING Reinsurance US is a leading provider of reinsurance programs for group life, accident, and health insurance companies in the US, Guam, Canada, Bermuda, and the Caribbean.

Yesterday, Singapore-based Oversea Chinese Banking Corporation had said it would acquire the Asian private banking business of Dutch financial services major ING Group in an all cash deal worth $1.46 billion.