ING U.S. heads up the American voyages of Dutch financial services firm ING Groep. It offers retirement, investment, and insurance (mostly life) services to 13 million individual and corporate customers. Retirement products include IRAs, brokerage accounts, and annuities. The ING U.S. investment management division offers international and domestic equity, fixed-income, and multi-asset products. Insurance covers individual, term, and universal life, as well as employee benefits (stop loss, group life, disability), which it sells to midsized and large companies. Formed in 1999, the company completed an IPO in 2013; ING retains a majority stake. ING U.S. plans to change its name to Voya Financial.
ING U.S. plans to use its IPO proceeds to pay down debt in conjunction with its recapitalization plan. The public offering was part of parent ING Groep's plan to separate its banking and insurance businesses as it sells and spins off various units from the Netherlands to Macao (and works to repay government bailout funds). ING U.S. filed its IPO registration statement in late 2012 (with a placemark value of $100 million) and completed the IPO in May 2013. The offering of shares raised about $1.3 billion, with ING U.S. reporting proceeds of about $600 million (remaining proceeds of about $700 million went to the parent organization and were used to pay group debt). ING plans to gradually reduce its stake in ING U.S. through future share offerings. It will also eventually rename the division as Voya Financial to reflect the subsidiary's voyage towards independence.
The company's retirement segment, which includes its retirement and annuities products, contributes the majority of revenue. The retirement products segment has $107 billion in assets under management. The investment management division has $166 billion in assets.
ING U.S. conducts operations throughout the US for its parent company.
While the company's revenue has increased slightly since 2009, it has gone from a net loss of $810 million in 2009 to a net income of $103 million in 2011. Cash flow has shown a similar trajectory.
Strategy (220-word max)
Going forward, the company plans to improve profits in its businesses by re-pricing and closing some lines, focus on capital management, and continue its conservative risk management efforts. ING U.S. also intends to increase its cross-selling within the strong retirement segment and leverage its employee benefits relationships to offer those customers its other investment products.
Ownership (40-word max)
Prior to the IPO, the company is a wholly owned subsidiary of ING Groep.
▲ Show Less▼ Show Full Description