Aetna Hoists ING to No. 6 in Assets.With its $5 billion purchase of Aetna Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and Aetna International, plus its $5.1 billion purchase of ReliaStar Financial Corp., Dutch financial-services giant ING is boosting itself to the sixth-largest U.S. life insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. by statutory assets, up from 25th. ING and Aetna said ING will buy Aetna's two units for $5 billion in cash, plus assume $2.7 billion in Aetna's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . Under the agreement, Aetna will spin off a new health business, which will include Aetna U.S. Healthcare U.S. Healthcare is a now-defunct healthcare company. The logo had an apple. The merger with Aetna In 1996, the company merged with Aetna, calling it Aetna U.S. Healthcare. The U.S. Healthcare apple logo was next to the Aetna name, and U.S. Healthcare under it. U.S. , group insurance and large-case pensions. In exchange for each Aetna share, Aetna shareholders will receive one share in the new health company, to be named Aetna Inc., and receive about $35 in cash. ING is paying 18 to 19 times earnings estimates for the Aetna business, which is expected to earn $410 million to $420 million this year, said Weston Hicks Hicks , Edward 1780-1849. American painter of primitive works, notably The Peaceable Kingdom, of which nearly 100 versions exist. , an equity analyst with J.P. Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. Securities. "We think Aetna got a fair price," Hicks said. The sale will be good for Aetna's remaining business, he said, because the company will be able to focus just on its health-care operations. By acquiring the Aetna units, ING (including ReliaStar) will expand its client base from 30 million to 50 million clients worldwide. Worldwide premium income would rise to $39 billion from $27 billion and assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. would increase to $467 billion from $383 billion. In May, Dutch financial-services giant ING Group ING Groep N.V. (NYSE: ING, Euronext: INGA) (known as ING Group) is a financial institution of Dutch origin offering banking, insurance and asset management services. ING once stood for Internationale Nederlanden Groep. said it would buy ReliaStar for $5.1 billion in cash. The acquisition is expected to close late in the third quarter.
ING Moves Into Top 10
Before its acquisitions, ING ranked 25th
with $37.2 biiiion in total admitted
assets for year-end 1999. The chart
below shows where ING would rank with
Aetna and Reliastar assets included.
($ billions)
Total Admitted
Rank Group Name Assets
1 TIAA/CREF Group $284.1
2 MetLife & Affiliated Cos. * 220.5
3 Prudential of America Group 211.5
4 Hartford Life Inc 134.4
5 Aegon USA Inc 123.4
6 ING America (U.S. operations) ** 113.6
7 American General Group 97.4
8 American International Group 96.1
9 New York Life Group 96.1
10 Equitable Group 95.3
(*)Includes 1999 admitted assets from
General American Life Insurance Cos.
(**)Includes 1999 admitted assets of
ReliaStar Financial Corp.'s insurance
subsidiaries and Aetna Insurance Company
of America, Aetna Life Insurance &
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