Fitch Downgrades ING Verzekeringen N.V. To 'A+'; Off Rating Watch; Outlook Stable.

    Business Editors

    NEW YORK & LONDON--(BUSINESS WIRE)--Feb. 4, 2003--Fitch Ratings
has downgraded its long-term credit rating of ING Verzekeringen
N.V.(INGV) to 'A+' from 'AA-' and removed it from Rating Watch
Negative, where it had been placed on 19 September 2002. Fitch also
took related actions on a number of the group's insurance units which
are listed below.
    The downgrade reflects the weakening of the capital position as a
result of the long-term decline in equity values over the last couple
of years. At the same time, leverage has remained above the levels
expected for 'AA' rated companies. The rating now has a Stable
Outlook, reflecting the expectation that leverage will not change
significantly in the near term.
    The ING group results to 30 September 2002 showed good operational
performance for INGV. However, equity market value reductions over the
nine months to 30 September led to a reduction of EUR4.8 billion in
shareholders' equity for insurance operations to EUR11.6bn. During
4Q02, the market falls were partly reversed and a number of actions
led to a partial recovery in the capital position of INGV. Despite
this, equity markets remain volatile and this will continue to impact
the capital position of the company. Leverage has risen over recent
years and now stands at close to 40%, which is not consistent with a
'AA' rating. Fitch calculates leverage as total debt over total debt
plus equity, without adjusting equity by the value-in-force or
deferred acquisition costs, which would improve the leverage ratio.
    Third quarter 2002 results for INGV showed improved earnings for
the insurance operations, with operational net profit up 17% for the
nine months to 30 September. Expense control for the group as a whole
remained good, with a 5.3% reduction in organic operating expenses.
The non-life combined ratio for the nine months also improved to 100%,
from 102%. However, a strong negative impact was recorded from
reductions in market values of equity investment holdings and to a
lesser extent from lower real estate values.
    Subsequently, during 4Q02, a number of actions and market
movements contributed to a recovery in the level of shareholders
equity. During that quarter the equity markets recovered by around 9%,
from September to December month ends, adding approximately EUR1.5bn
to equity values. In addition, a change in the method of hedging for
outstanding stock options led to a sale of 36 million shares and the
proceeds strengthened shareholders' equity by EUR650m. A USD500m
(EUR470m) portion of a USD1.1bn debt issue by the holding company in
December was used to further strengthen the solvency of INGV.
    Fitch's rating continues to emphasise the good financial
flexibility of INGV, solid earnings, global franchises and
diversification, despite a continuing emphasis on the competitive
Dutch markets, and strong operational and financial management.
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*T

The following ratings are affected by the action:

ING Verzekeringen N.V.

--Senior debt lowered to 'A+' from 'AA-'and removed from Rating
Watch Negative.

ING America Insurance Holdings, Inc.

--Commercial paper lowered to 'F1' from 'F1+'.

Equitable of Iowa Companies, Inc.

--Senior debt lowered to 'A' from 'A+' and removed from Rating
Watch Negative;

--Preferred stock lowered to 'A-' from 'A' and removed from Rating
Watch Negative.

Lion Connecticut Holdings, Inc.

--Senior debt lowered to 'A+' from 'AA-' and removed from Rating
Watch Negative.

ReliaStar Financial Corporation

--Senior debt lowered to 'A' from 'A+' and removed from Rating
Watch Negative.

--Long term lowered to 'A' from 'A+' and removed from Rating Watch
Negative.

ReliaStar Financing I, II

--Capital securities lowered to 'A+' from 'AA-' and removed from
Rating Watch Negative.

    Two insurer financial strength ratings have been withdrawn as
these legal entities were consolidated into other legal entities in
2002.

Northern Life Insurance Company
-- Insurer Financial Strength Rating Withdrawn

First Golden American Life Insurance Company of New York
-- Insurer Financial Strength Rating Withdrawn

    NOTE: These ratings were initiated by Fitch as a service to users
of Fitch ratings. These ratings are based primarily on public
information.

    --30--cs/sf*

    CONTACT: Fitch Ratings
             Greg Carter, [phone], London
             Marc-Philippe Juilliard, [phone], Paris
             Martha M. Butler, CFA, CLU 312/368-3191, Chicago
             Scott S. Edmiston, CFA, 312/368-5448 Chicago
                or
             Media Relations: Kris Anderson, 44 20 7417 4361, London

    KEYWORD: NEW YORK
    INDUSTRY KEYWORD: BANKING BOND/STOCK RATINGS
    SOURCE: Fitch Ratings