The ratings on the core insurance operating companies of ING GROEP N.V. (AA-/Stable/A-1+)--collectively ING's insurance operations (see table 5)—reflect the insurance group's very strong and well-diversified competitive position, very strong financial flexibility (defined as the ability to source capital relative to requirements), and very strong capitalization, supported by excellent enterprise risk management (ERM). These positive factors are partially offset by a challenging operating environment, particularly in the U.S. and The Netherlands. Strong and stable earnings and balance sheet de-risking have supported the very strong capital adequacy of ING's consolidated insurance operations. This strength has been maintained despite material dividend flows over the past three years, including substantial dividends in 2007 to support the ING group's share buyback program and acquisitions.
