Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Three Things to Know from ING U.S.'s First Earnings Not Rated 0.0 Email Routing List Email & Route  Print Print
Friday, May 24, 2013

Three Things to Know from ING U.S.'s First Earnings

Reported by Tommy Fernandez

So, the newly public ING U.S. has reported its first quarterly earnings, ever.

It was an important presentation for a number of reasons, especially given its context.

The U.S. arm of the Dutch financial services giant went public earlier this month at an initial price of $19.50 which some experts thought was underwhelming. There was even some analyst speculation that the might not stay public for long.

If you listen to the company's earnings call of senior managements' discussion with analysts and their slide show presentation, as well as look at their earnings statement, you'll note several important themes as the company works to right itself.

Three themes that MFWire noted were:

POINT 1: Return on Capital is VERY Important
POINT 2: Asset Management is VERY Important for R.o.C.
POINT 3: ING is Devoting A Lot Towards Maximizing A.M.
Now to drill down on these points.

POINT 1: Return on Capital is VERY Important
As you would expect from a newly-public former arm of a complex global financial giant, ING's first earnings were complicated, according to Slide 16 of the webcast presentation. Depending on what metric you use, the company reported either $285 million gain, in terms of ongoing business operating earnings before income taxes, $181 operating earnings, adjusted and after-tax, or a $212 million loss. The reason for the various figures? ING is dealt with $310 million charge related to closed block variable annuities, a business the company is running off. It is also dealing with a variety of lingering capital issues inherited from its former Dutch parent, which remains a major stakeholder. In fact, the main reason the company went public was to help its parent pay off significant bailout debt to the Dutch government.

According to chairman and chief executive Rod Martin and chief operating officer Alain Karaoglan, the company is involved with 30 initiatives devoted to improving return on capital and return on earnings. The goal is to reach 400-500 basis points of ROE improvement by 2016.

POINT 2: Asset Management VERY Important for R.o.C.
Both asset management and retirement (one of ING U.S.'s three core remaining businesses along with insurance) is VERY important for generating earnings and improving return on capital.

Out of the $285 million of ongoing pre-tax business operating earnings, 76 percent came from ING's retirement and asset management operations: with 65 percent coming from retirement and the other 11 of the 76 percent points coming from asset management.

For the quarter, the retirement business generated $1.4 billion in net flows, while asset management generated $3.2 billion.

POINT 3: ING is Devoting A Lot Towards Maximizing A.M.
ING's sales force saw third-party AUM growth opt 6 percent compared to the same period a year ago, with DC I-O sales of $200 million. They had takeover mandates of $645 million. The company is looking to improve sales force productivity, reducing retail outflows and growth in high fee asset classes. The company is also looking to replace underperforming sub-advisors.

An important strategy to note, ING is looking to move some of its business away from recordkeeping focused accounts to more profitable full-service plans, depending on demand from plan sponsors.

For more information, go to the company's website containing senior managements' discussion with analysts and their slide show presentation, as well as look at their earnings statement.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


  1. MFDF webinar - Lessons Learned from the Regional Bank Volatility and the Impact on Registered Funds, June 18
  2. IMEA webinar - Snapshot on the Talent Landscape, June 18
  3. 2024 MMI National Accounts Roundable, June 18
  4. MMI webinar - RIA Consolidators: The New Key Accounts?, June 20
  5. MFDF Director Discussion Series - Open Forum (Philadelphia), June 20
  6. MMI webinar - DoL Fiduciary Rule Update: What Are the Implications?, June 21
  7. WE Chicago - Pre-Morningstar Conference reception, June 25
  8. Celebrating 100 Years of the Mutual Fund, June 25
  9. New York YPEM Cornhole Classic, June 25
  10. Morningstar Investment Conference Conference 2024, Jun 26-27
  11. 2024 MMI Institutional Roundtable, June 26
  12. WE PNW Seattle - Pickleball and Networking, June 27
  13. Celebrating 100 Years of the Mutual Fund, July 11
  14. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 16
  15. MFDF Director Discussion Series - Open Forum via Zoom, July 17
  16. MFDF Director Discussion Series - Open Forum (New York), July 23
  17. IMEA Portfolio Construction Roundtable, September 19
  18. MFDF Continuing Regulatory Impacts on Fund Boards program, October 15
  19. 2024 MMI Annual Conference, Oct 15-17
  20. IMEA Philanthropic Day, October 22
  21. IMEA Leadership Summit, October 23
  22. IMEA Star Awards Celebration, October 23
  23. IMEA Marketing Summit, October 24
  24. 5th Annual ETFGI Global ETFs Insight Summit, October 29
  25. MFDF Director Discussion Series - Open Forum (Denver), November 6
  26. MFDF webinar - Digital Assets in the Fund Space (part 2 of 2), November 7




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use