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ING Canada to become 100% publicly traded company


February 4, 2009   by Canadian Underwriter


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ING Groep is selling its shares in ING Canada, meaning ING Canada will become a 100% publicly traded company on the TSX stock exchange, possibly by the end of February.
“On that day, and for the first time in our industry’s recent history, a Canadian-controlled company assumes the leadership position of the industry,” says a memo announcing the move to ING Canada staff.
“ING Groep’s well-publicized emphasis on the importance of their core businesses — which does not include [property and casualty] insurance — has created a lot of uncertainty,” the memo goes on to say. “With this announcement, this uncertainty has been removed and we are free to set out on our own and forge an independent future based on our vision, ambitions, capacities as a team and our distinct culture and values.”
In a press release, ING Canada president and CEO Charles Brindamour says ING Canada’s strong capital position, its scale, the quality of its people, its strong local presence and its “renewed commitment to clients and brokers” would allow it to succeed an independent organization.
“Thanks to our partnership with ING Group, we have built over the years a world-class organization,” Brindamour said in a release. “Now, with the proposed transactions, for the first time in recent history, a Canadian-listed and controlled company will assume the leadership position in the Canadian home, auto and business insurance industry.
“With our 6,700 employees and our expertise we have a substantial scale advantage, are well positioned in our markets and are in a very strong position operationally and strategically.
“While ING Canada will not receive any proceeds from the proposed transactions, our financial position is strong with significant excess capital and no debt and we look forward to building on our strengths on the marketplace.”
A.M. Best Co. has commented that the financial strength rating of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of ING Canada Group are unchanged following the announcement.
“The planned sale is expected to be completed within the next several weeks through private placement and public offering,” A.M. Best added.
Who will ultimately invest in ING Canada is not yet known. The specific values of the shares mentioned in the memo and in a company press release have changed since they first became public on Feb. 3, an ING spokesman noted.


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