ING Announcement – Update
October 30, 2009 - Back to Deck's Page
ING Announcement – Update
This past week ING announced their intentions to raise nearly $10 billion through an offering underwritten by JP Morgan Chase and Goldman Sachs. The intent of this offering is to reduce the current debt with the Dutch Government by 50%. In addition ING has announced that they will separate the banking and insurance divisions which allows the insurance divisions to be either run as a stand alone division or be sold (or most likely sell stock) on an IPO to the public. In the past ING has been successful in selling stock separately on an IPO basis which seems to make a lot of sense. We will watch closely as to the acceptance of their strategy going forward. However, this should be deemed a positive move.
You will find attachments that will give you further insight into this week’s announcement.
Finally, there has been improvement in renewal cap rates for index sales. We also noticed that several customers are receiving full cap earnings from 1 year ago if the issue date was in October or later. Please pay close attention to the renewal of your index policies as they are coming due in the next 90 days. I ask you to notify us of any renewals indicated to be less than 5%.
Q&A to Help Respond to Client Questions
ING to separate banking and insurance operations: 10/26/09 Press Release
ING to revise Management Boards in line with strategic direction: 10/26/09 Press Release