Insurance company ING Group NV (ING) Friday said it has signed a deal to transfer its US group reinsurance business ING Reinsurance U.S. to life reinsurance provider Reinsurance Group of America, Inc. (RGA), for undisclosed terms. The transaction is expected to close in the first quarter of 2010.
Amsterdam, the Netherlands-based ING added that the deal is structured as a reinsurance agreement between Reinsurance Group and ING, and is anticipated to have a limited positive impact on ING's 2010 earnings.
Further, the deal is estimated to release about EUR 100 million in capital and improve ING Insurance's debt/equity ratio by nearly 60 basis points. After the transaction, ING noted that it will continue to retain a reinsurance portfolio in the US that has been in run-off since 2002.
ING Insurance Americas' Chief Executive Officer Tom McInerney said, "This transaction fits within ING's Back to Basics strategy to simplify our structure and focus our U.S. insurance operations on Retirement Services, Life Insurance, and Rollover Annuities."
On October 15, ING's CEO Jan Hommen stated that through Back to Basics program, ING will simplify its organization and reduce its geographic and business scope, focusing on its positions in markets with the strongest franchises.
In a different development, Chesterfield, Missouri-based Reinsurance Group said it has signed deal with ReliaStar Life Insurance Company, a subsidiary of ING Group, whereby Reinsurance Group has acquired ReliaStar's U.S. and Canadian group life, accident and health reinsurance business. The transaction is expected to be effective January 1, 2010.
Reinsurance Group stated that the purchase will be structured as an indemnity coinsurance agreement, and that it will fund the acquisition with existing capital. Specific terms of the deal were not disclosed, Reinsurance Group noted.
Commenting on the acquisition, Reinsurance Group's president and CEO Greig Woodring said, "We are pleased with this acquisition as it gives us a far more substantial presence in the North American group reinsurance market and offers a highly regarded team in Minneapolis that will remain in place."
Reinsurance Group anticipates to deploy nearly $115 million of capital to support the business with returns in mid-to-upper teens, Woodring added.
ING closed Thursday's regular trading at $18.85 per share on the New York Stock Exchange.
RGA closed Thursday's regular trading at $47.62 per share on the New York Stock Exchange.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.