A.M. Best Affirms Ratings for Primary U.S. Entities of ING and Its Subsidiaries; Revises Some Outlooks to Negative.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 10, 2004 A.M. Best Co. has affirmed the financial strength rating of A+ (Superior) for the primary life insurance entities of ING's U.S. operations (ING USA) (Atlanta, GA) (NYSE NYSE See: New York Stock Exchange :ING). The rating outlook has been revised to negative from stable for the primary U.S. entities. In addition, A.M. Best has affirmed the financial strength ratings of A (Excellent) for Life Insurance Company of Georgia (GA) and Midwestern United Life Insurance Company (IN). The outlook for these subsidiaries remains stable. ING's U.S. operations are part of ING Americas, which markets life, annuity, property and casualty products and asset management services to the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and Canada. ING USA's business profile has grown as a result of an acquisition-oriented growth strategy in recent years. Its U.S. operations have a top ten market ranking within the U.S. life and annuity marketplace and have strong and improving brand recognition. ING's U.S. entity level balance sheet is strong, with a modest amount of intangibles, a high credit quality investment portfolio and a strong duration match of assets to liabilities, along with moderate overall leverage and strong interest coverage. The rating outlook for the A+ (Superior)-rated entities was revised based upon a number of factors. Overall capitalization on both a risk-adjusted and absolute basis, although improved, is somewhat below A.M. Best's expectation for an A+ (Superior)-rated company. In addition, A.M. Best believes that the quality of capital within the U.S. operations is dampened due to the fact that a significant portion of the capital supporting the U.S. operations has been funded through inter-company loans. Operating trends within the U.S. operations, as measured on a GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). accounting basis (after adjustments to remove the impact of credit related losses), were negative in 2003 in comparison to 2002. The deterioration in operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before was driven by compressing com·press tr.v. com·pressed, com·press·ing, com·press·es 1. To press together: compressed her lips. 2. To make more compact by or as if by pressing. 3. interest spread margins and adverse mortality experience but was partially offset by lower unit costs and a significant improvement in the equity markets, which boosted profitability in ING's variable annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. business. It is A.M. Best's opinion that ING USA's operating performance will be challenged by low interest margins associated with its interest sensitive business lines and that a key factor to improving operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: on a going forward basis will be top line revenue growth, maintenance of strong expense controls and careful interest spread management. The financial strength rating of A+ (Superior) has been affirmed for the following U.S. entities of ING: -- ING USA Annuity and Life Insurance Company -- ING Life Insurance and Annuity -- ING Insurance Company of America -- ReliaStar Life Insurance Company -- ReliaStar Life Insurance Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Security Life of Denver Insurance Company -- Southland south·land or South·land n. A region in the south of a country or an area. south  land·er n.Noun 1. Life Insurance Company The financial strength rating of A (Excellent) has been affirmed for the following companies: -- Life Insurance Company of Georgia -- Midwestern United Life Insurance Company A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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