ING: $1.3B Charge To Shut U.S. Annuity Arm

Associated Press

December 07, 2011,

Amsterdam — ING NV, the Dutch bank and insurance company, says it will take a charge of around euro 0.9 – euro 1.1 billion ($1.2 billion – $1.4 billion) to close its U.S. variable annuity business.

After reviewing the business, ING says its assumptions about its likely future profitability had been wrong.  In particular, customers are not allowing policies to lapse_and incur the resulting penalties_as ING hoped.

“The actions announced today reflect necessary steps taken in the context of ongoing market turbulence and the impact that has on US policyholder behavior,” CEO Jan Hommen said in a statement Wednesday.

ING stopped selling variable annuities in 2009.

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