CHICAGO, May 1 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) has
reaffirmed the claims paying ability and debt ratings of the ING U.S. Life
Companies (ING) and the debt ratings of ING Verzekeringen N.V. See detailed
list of entities rated and ratings below. The rating actions follow ING's
announcement of its agreement to acquire ReliaStar Financial Corporation
(NYSE: RLR) for $6 billion, which includes the assumption of $1 billion of RLR
debt.
DCR believes the proposed acquisition is consistent with ING's stated
strategy of increasing its U.S. life operations and offers several
opportunities for the combined companies, including opportunities for
increased scale and profitability. Both companies employ a multi-distribution
and multi-product strategy. However, DCR also recognizes that the $54 per
share purchase price represents a significant multiple of current book value
and recent stock prices and represents a significant deployment of ING's
capital. Additionally, as with any acquisition, there is integration risk.
However, DCR believes the similarity in strategies partially mitigates this
risk. The 'AAA' (Triple-A) claims paying ability ratings also reflect the
strength, stewardship and implicit support of their Dutch parent ING Group,
N.V. and the strategic importance of U.S. operations to the parent's overall
insurance operations. DCR expects that the U.S. operations will achieve
above-average growth and profitability over the long term. Additionally, DCR
expects subsidiary capital levels to be maintained at levels supportive of
their growth plans. DCR also expects that the transaction will close with
substantially the same terms as those released today. If the terms of the
transaction were to change materially, DCR would have to re-examine its
ratings.
RLR is a holding company, domiciled in Minnesota, specializing in life and
health insurance, asset accumulation products, reinsurance, asset management
and securities brokerage. At December 31, 1999, RLR had assets and
stockholders' equity of $24.9 billion and $1.9 billion, respectively.
ING America Insurance Holdings, Inc. (AIH) and Equitable of Iowa Companies
(EIC) are intermediate holding companies for ING's U.S. life insurance
operations. AIH, which owns EIC, is directly owned by ING Verzekeringen N.V.
ING Verzekeringen N.V. makes up the insurance group of ING Group, the
third-largest financial services organization in the world with large banking
and insurance operations.
ING Verzekeringen's financial strength is integral to EIC's debt and
preferred stock ratings, as ING Verzekeringen guarantees debt issuances by
AIH. ING Verzekeringen carries a 'AA' (Double-A) senior debt rating with DCR.
DCR views the financial strength and flexibility of ING Verzekeringen as very
strong, reflecting leading market positions in life and non-life insurance in
The Netherlands and strong, stable and growing profits throughout its global
insurance operations. DCR expects ING Verzekeringen's consolidated adjusted
debt-to-capital ratio to remain conservative.
The Rating Outlook for all ratings is Stable.
Ratings Reaffirmed
Claims Paying Ability
Equitable Life Insurance Company of Iowa
'AAA' (Triple-A)
First Golden American Life Insurance Co. of New York
'AAA' (Triple-A)
Golden American Life Insurance Company
'AAA' (Triple-A)
Life Insurance Company of Georgia
'AAA' (Triple-A)
Security Life of Denver Insurance Company
'AAA' (Triple-A)
Southland Life Insurance Company
'AAA' (Triple-A)
United Life & Annuity Insurance Company
'AAA' (Triple-A)
USG Annuity and Life Company
'AAA' (Triple-A)
Debt Ratings
ING Verzekeringen N.V. - Senior Debt
'AA' (Double-A)
Equitable of Iowa Companies, Inc. - Senior Debt
'AA-' (Double-A-Minus)
Equitable of Iowa Companies, Inc. - Preferred Stock
'A+' (Single-A-Plus)
For additional information, visit DCR's Web site at http://www.dcrco.com.
DCR's research is also available on Bloomberg at DCR, FirstCall's BondCall
Direct/Research Direct at http://www.firstcall.com and Multex at
http://www.multex.com, as well as through other third-party providers.
SOURCE Duff & Phelps Credit Rating Co.
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Related links:
http://www.dcrco.com
http://www.firstcall.com http://www.multex.com
CONTACT:
Martha M. Butler, CFA, CLU, 312-368-3191,
butler@dcrco.com, or Donald F. Thorpe, CPA, CFA, 312-606-2353,
thorpe@dcrco.com, both of Duff & Phelps Credit Rating Co.
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