ING to Raise as Much as $1.54 Billion in U.S. Insurance IPO

(Bloomberg) -- ING U.S. Inc., the American insurance unit of ING Groep NV, plans to raise as much as $1.54 billion in an initial public offering as its Dutch parent focuses on operations at home.

The division and its parent are offering 64.2 million shares for $21 to $24 apiece, the U.S. business said yesterday in a regulatory filing. Amsterdam-based ING Groep will own 75 percent of ING U.S. after the IPO, the filing showed. The unit plans to change its name to Voya Financial after the share sale.

At the midpoint of the range, the American unit’s market value would be about $5.78 billion, according to data compiled by Bloomberg. ING Groep is selling shares after U.S. stocks have risen to record levels and volatility in the market has subsided. The company has to divest the business as a condition of its 2008 bailout.

“It seems like it’s fairly priced,” said Vincent Lui, an equity analyst at Morningstar Inc. in Chicago. “It’s still a very difficult environment” for insurers, he said.

Based on a valuation of $5.78 billion, the company would trade for about 42 percent of book value, a measure of assets minus liabilities. That compares with more than 60 percent at MetLife Inc., the largest U.S. life insurer.

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