A.M. Best Affirms Financial Strength Ratings of ReliaStar Life Insurance Co. and Its Affiliates Following ING Acquisition Announcement

Strategic Insights -

A.M. Best Co., a leading insurance rating and information source, has taken note of the announcement by the ING Group regarding its definitive agreement to acquire ReliaStar Life's parent company, ReliaStar Financial Corp., for $5.1 billion in cash. The acquisition is expected to close in the third quarter of 2000. ReliaStar Financial's integrated operations and education-based sales distribution model offer an attractive platform for product expansion and cross-selling opportunities for both ING and ReliaStar Financial in the U.S. market.

Key Takeaways:

  • A.M. Best has affirmed the A+ (Superior) financial strength ratings of ReliaStar Life Insurance Co. and its operating life and health insurance affiliates, Northern Life Insurance Co. and ReliaStar Life Insurance Co. of New York.
  • The A (Excellent) financial strength rating of Security-Connecticut Life Insurance Co., a ReliaStar Life affiliate, was also affirmed.
  • The ING Group's operations will become a leader in the U.S. domestic life insurance and asset management businesses with ReliaStar Financial providing a good complement to ING's existing U.S. business in the retirement services markets.
  • ReliaStar Financial's 401(k) corporate pension and growing asset management activities are strategically important to ING's U.S. operations as they provide additional scale and performance track records in these highly competitive businesses.
  • ReliaStar Financial has assets under management in excess of $35 billion and consolidated GAAP revenues of $3.1 billion as of year-end 1999.
  • The ING Group is a diversified financial-service organization with total assets of nearly $500 billion and offers a comprehensive range of life and non-life insurance, commercial and investment banking, asset management, and related products in Europe, North America, South America, Africa, Asia, and Australia.

Statistics:

  • $5.1 billion: the cash consideration for the acquisition of ReliaStar Financial Corp. by the ING Group.
  • $6.1 billion: the total consideration for the deal, including approximately $1 billion in debt and outstanding trust preferred securities issued by ReliaStar Financial.
  • $35 billion: the assets under management by ReliaStar Financial.
  • $3.1 billion: the consolidated GAAP revenues of ReliaStar Financial as of year-end 1999.
  • Nearly $500 billion: the total assets of the ING Group.

Sources:

  • Business Wire, May 1, 2000.