ING/ReliaStar Acquisition – Further Details, Possible Delay

May 2, 2000

ING’s acquisition of life insurer ReliaStar has caused some immediate comments and reactions.

Connecticut officials, reiterating their position taken when ING made a bid for Aetna, stated that unpaid Holocaust insurance claims should be settled before approval was given for the purchase. Minnesota officials took no position on the issue, but indicated that it would be a factor under consideration when regulatory hearings are held.

Although the Dutch Insurance Association, of which ING is a leading member, has pledged to join the International Commission on Holocaust-era Insurance Claims, it has not as yet formally done so, leaving the question of ING’s liability for World War II era policies as an ongoing question.

In other developments, a conference call press conference reveled that ReliaStar had received several other offers before choosing ING, leaving open the remote possibility of a hostile takeover bid. ING appeared to be contemplating further U.S. acquisitions. Fred Hubbell, Chairman of ING Americas was quoted as saying, “.. it {the acquisition} is not viewed by us–nor by our friends at ReliaStar– that this would be the last opportunity to grow in the US”

Analysts speculated that the acquisition would trigger further consolidations in the US Life insurance industry, led by European financial groups anxious to gain a slice of the US market

It was also revealed that ING had agreed to a $150 million breakup fee if the agreement is terminated.

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