A.M. Best Co. on Friday affirmed the A-plus financial strength ratings of ING Group NV's U.S. life insurance operations, Atlanta-based ING USA Life Group.
The Oldwick, N.J., ratings agency also affirmed and assigned issuer credit ratings of aa-minus to the same entities. Concurrently, it affirmed the aa-minus debt ratings of the two funding-agreement-backed securities programs sponsored by ING USA.
The outlook for all ratings was revised to stable from negative.
The revised rating outlook reflects the group's improved absolute and risk-adjusted capitalization levels, significantly enhanced operating results, reduced acquisition-related financial leverage, and lower exposure to contingent letters of credit guarantees associated with ING USA's 2004 individual life coinsurance transaction with Scottish Re.
These factors, coupled with strong top-line revenue growth, have significantly improved the company's operating profile, A.M. Best said, and it believes the growth is sustainable and well-diversified. ING USA is strategically well-positioned to benefit from the higher-growth segments of the maturing U.S. market - retirement services and selected asset accumulation and payout products - it said.
These strengths are offset by factors including a capital structure that remains heavily supported by internal loans from the group's Dutch parent, the ratings agency said.
