ING Americas Issues First-Half Update -- Worksite Segment Delivers Solid Results
PRNewswire
ATLANTA
Aug 23, 2001
Approximately six months after Atlanta- based ING Americas began integrating ReliaStar Financial, Aetna Financial and its existing ING operations into one financial services powerhouse serving the affluent-middle-income market segment, the projected promise and potential of ING's U.S. operation are beginning to materialize. The organization's strengths and differentiating factors emerged in a period that presented major challenges throughout the financial services industry.
Amsterdam-based ING Group (NYSE: ING), one of the largest integrated financial services organizations in the world, released its first-half financial results today. ING Americas, which comprises ING's operations in North America and South America, contributed 18.4 percent of ING Group's operational pre-tax results in the first half. ING Americas contributed approximately 12.5 percent to ING Group's operational pre-tax results during the same period last year. The increase reflects swift progress with the organization's U.S. strategy and its ability to consistently deliver meaningful contributions to ING Group's financial results, even during difficult market conditions.
"ING has embarked on a mission to build the industry's first, highly functional, customer-focused business model that integrates ING's broad product and service capabilities, and utilizes multiple distribution channels," said R. Glenn Hilliard, chairman and chief executive officer, ING Americas. "Our business model will help us deliver a new and distinct value proposition that resonates with 21st century consumers, particularly as the financial needs and issues of American pre- and post-retirees evolve. We want to become their financial partner of choice."
The continuation of difficult market conditions in the United States created a challenging sales environment for some of ING's business segments. However, other business segments had strong first-half sales, which offset the shortfall in other areas.
* Total first-half sales for Retail Financial Services, ING's retail
insurance operation, were $3.8 billion. The total sales figure includes
all retail annuity and life products.
* Total first-half sales for Worksite Financial Services, ING's retirement
plan and employee benefits operation, were $3.8 billion.
* Total first-half sales for Mutual Funds were $4.9 billion.
"We're pleased with our overall sales results, considering the difficult market conditions and uncertainty regarding some estate-tax laws," Hilliard said.
First half highlights -- a dual stronghold; and a brand program
The primary highlights of ING's first half include the emergence of a dual stronghold in the retail and worksite markets that differentiates the company from its competitors; and the successful launch of phase one in ING's brand program. The company also made considerable progress in its ongoing effort to operate more efficiently.
"We have saved millions of dollars through integration projects related to consolidating systems and reducing redundancies, but that quantitative measurement of progress alone does not capture the essence of where ING is going," Hilliard said. "ING is deliberately moving closer to the customer, and to get there, we must remain focused on our priorities, which are building the ING brand and aligning employees behind that brand while maximizing operating efficiencies and creating revenue synergies."
Dual stronghold differentiates ING -- worksite operation has solid first half
As a result of its acquisitions in 2000, ING achieved a dual stronghold in the retail and worksite markets that differentiates the company from many of its competitors. This dual stronghold gives ING access to millions of affluent middle-income consumers through multiple distribution channels on a daily basis. ING is addressing the wealth-accumulation, wealth protection and income-management needs of those consumers on an individual basis through independent financial advisors and through employer-sponsored plans at the worksite.
Among the many benefits of this dual stronghold is the diverse and multiple streams of revenue it provides ING. Revenue streams come from the consistent and methodical contributions to retirement plans, recurring premium from life insurance products and many other sources, including annuities and mutual funds. These multiple revenue streams are particularly important during periods when factors beyond ING's control, such as a down market, a slowing economy or legislative changes, affect sales and revenues.
"ING's retail and worksite combination is very powerful, particularly as you consider that baby boomers are moving toward the payout phase in their retirement planning journeys," said Mark Tullis, chief of staff and general manager, ING Americas. "Millions of consumers in our target market are participating in an ING retirement plan through their worksite. Retirement- plan customers transitioning from wealth accumulation to income management present a real opportunity for ING to maximize the synergies that exist between our worksite and retail segments."
ING Aetna Financial Services, which is part of ING's Worksite Financial Services, and a top-five company in all segments of the retirement plan market, is extremely well positioned for long-term growth. Recent legislative changes increased the amount of money that retirement plan participants can contribute to their qualified retirement plans and gave participants the ability to move assets between different types of plans beginning in 2002.
ING introduces brand name to the U.S. marketplace
In May 2001, ING launched a $20 million advertising campaign to introduce the ING brand name to the U.S. marketplace. The primary objective of ING's advertising campaign was to establish awareness of ING as an integrated financial services company. After a brief hiatus in the summer, the advertising campaign will continue in the fall.
"Building a strong brand for ING is a central component of ING's U.S. strategy," Tullis said. "Thus far, we are extremely satisfied with the results of the campaign. Awareness levels of ING are double what we expected after just the first six weeks in the marketplace. We've also experienced a very positive response from employees and financial advisors."
ING Americas comprises integrated financial services operations in North America and South America with business operations in the United States, Canada, Mexico, Argentina, Brazil, Chile, Colombia, Peru, the Netherlands Antilles, as well as reinsurance operations in Bermuda, and Ireland. ING Americas offers a comprehensive array of products and services, including life, health and property & casualty insurance; fixed and variable annuities; reinsurance; guaranteed investment contracts and other institutional investment advisory services; defined contribution plans; and mutual funds. To date, ING Americas and its affiliates have $166 billion in assets under management. ING Americas' parent company, Amsterdam-based ING Group, is one of the largest integrated financial services organizations in the world with $458 billion of assets under management.
SOURCE: ING Americas
Contact: Dana E. Ripley of ING Americas, +1-770-980-3317, or cellular,
+1-404-202-6679, or e-mail, dana.ripley@ing-fsi-na.com
Website: http://www.ing-usa.com/