The ratings on the core insurance operating companies of ING GROEP N.V. (AA-/Stable/A-1+)--collectively ING's insurance operations--reflect ING Group's (ING) very strong capitalization, positive financial and risk management, very strong competitive position, and continued very strong financial flexibility. These positive factors are partially offset by a difficult but improving earnings environment--particularly in Dutch and U.S. life, pensions, and investment business--and the execution risk inherent in delivering increased internal rates of return (IRRs) on new business and further efficiency gains. ING's insurance operations have extremely strong capital adequacy on a consolidated basis. The reliance on the value of in-force life business to support this capital adequacy is a small offsetting factor to capital quality, however. Risk and asset-liability management across the group
