U.S. insurer Reinsurance Group of America will buy part of the North American reinsurance operations of Dutch financial services giant ING Group NV, freeing up $149.2 million of ING’s capital, Reuters reports.
ING, which has operations in Windsor, is divesting assets to pay back $15 billion in state aid and bring down risks, Reuters reported today. ING 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 $15 billion (10 billion euros) 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.
