ING U.S. (which is changing its name to Voya Financial) steers 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 with ING retaining a majority stake.
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 insurance segment (individual life and employee benefits) is its largest, representing more than 40% of total sales. The retirement segment, which includes its retirement and annuities products, contributes about 35%. Investment management brings in just over 5% of revenue. The retirement and investment management segments have $117 billion and $182 billion in assets under management, respectively.
At $9.6 billion, ING U.S.'s 2012 revenue was essentially flat from the prior year. Net income, however, showed significant improvement, jumping to $473 million that year from a loss of $88 million in 2011 as interest credited and other benefits to policyholders fell nearly $1 billion.
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.
ING Groep still owns 75% of its US arm, but plans to divest that stake by the end of 2016 as part of a bailout plan that included the directive to divest its overseas assets.