S&P Affrms ING Re -- Netherlands -- 'AA+' Rtgs; Otlk Neg.

Business Editors

LONDON--(BUSINESS WIRE)--Standard & Poor's

June 14, 2002--Standard & Poor's said today it affirmed its double-'A'-plus counterparty credit and insurer financial strength ratings on ING Re (Netherlands) N.V. (ING Re Netherlands) following its annual review of the company. The outlook is negative.

"The affirmation reflects Standard & Poor's opinion that ING Re Netherlands is a core operating entity of the ING insurance group," said Simon Marshall, an associate director at Standard & Poor's Financial Services Group in London.

ING Re Netherlands, a wholly owned subsidiary of ING Verzekeringen N.V. (INGV; AA-/Negative/A-1+), is considered by Standard & Poor's to be a key operating entity of ING Corporate Reinsurance, a business unit formed in December 2001 to focus on intragroup reinsurance and run-off reinsurance operations. ING Re Netherlands' role is to implement the ING group's risk management strategy using reinsurance, through the creation of intragroup synergies.

In the past, ING Re Netherlands provided support to other companies within the ING group for nontraditional reinsurance transactions. These included structured reinsurance transactions, and a financial guarantee transaction for which the ratings on ING Re Netherlands were used to support the marketing of an investment fund, the Amber Fund. Standard & Poor's has not reviewed the terms and conditions of these transactions in detail, but nevertheless considers that the overall exposure of ING Re Netherlands to nontraditional reinsurance and financial guarantee transactions has been higher than expected.

Following a strategic review of its activities in the latter part of 2001, ING Re Netherlands now intends to concentrate on providing traditional reinsurance solutions to other ING group members. Consequently, Standard & Poor's does not expect ING Re Netherlands to acquire additional exposure to nontraditional reinsurance transactions or financial guarantee transactions. In addition, any third-party traditional reinsurance business is expected to be limited to 10% of net premiums written. Capital adequacy is expected to be maintained at a level consistent with the ratings on ING Re Netherlands.

The financial strength of the core operating entities of the ING insurance group is based on the group's very strong business position in The Netherlands and the U.S. and very strong financial flexibility.

"The outlook on ING Re Netherlands reflects the company's status as a core entity of the ING insurance group and is driven by the outlook on the parent, INGV," said Mr. Marshall. The outlook on INGV is driven by concerns that management might be challenged in translating INGV's recently acquired impressive U.S. life business position into the expected improved earnings. Notwithstanding the recently announced plans to reduce headcount by 15%, the challenge of integration remains significant, culturally, operationally, and legally. In addition, the negative economic trends in the U.S. provide limited margin for error.

A complete list of rating actions is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. They are also available on Standard & Poor's public Web site at www.standardandpoors.com; under Rating Actions, select Newly Released Ratings Listings. Alternatively, call the Standard & Poor's Ratings Desk in London at (44) 20-7847-7400.

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Copyright 2002, Standard & Poor's Ratings Services