ING sells U.S. reinsurance business to RGA
AMSTERDAM |
AMSTERDAM (Reuters) - U.S. insurer RGA (RGA.N) will buy part of the North American reinsurance operations of Dutch financial services group ING Group NV (ING.AS), freeing up 100 million euros ($149.2 million) of ING's capital, the two companies said on Friday.
ING (ING.N), which is divesting assets to pay back 10 billion euros in state aid and bring down risks, said in a statement the deal would have a limited positive impact on its 2010 earnings.
Reinsurance Group of America (RGA) will buy ReliaStar's U.S. and Canadian group life, accident and health reinsurance operations and said it expected to invest about $115 million of capital in the business.
RGA and ING did not disclose other financial details.
ING received a 10 billion euro capital injection from the Dutch state in October 2008. It announced a "Back to Basics" program in April 2009, including a planned 6 to 8 billion euros in asset sales.
(Reporting by Gilbert Kreijger; Editing by David Holmes)
($1=.6702 Euro)
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