RGA to acquire business unit from ING Group

Reinsurance Group of America acquires US, Canadian insurance unit from ING Group

• On 12:56 pm EDT, Friday October 16, 2009

ST. LOUIS (AP) -- Reinsurance Group of America Inc. on Friday said it inked a deal to acquire the U.S. and Canadian group life, accident and health reinsurance business from a division of Dutch insurance giant ING Group NV.

RGA said the acquisition from ReliaStar will give it a bigger presence in the North American group insurance market. The business unit's office in Minneapolis will remain in place, RGA said.

RGA said it will fund the acquisition with existing capital and will invest about $115 million to support the business. The company did not specify the terms of the purchase.

The deal is expected to close on Jan. 1.

Shares of RGA rose 94 cents, or 2 percent, to $48.56 in midday trading after touching a 52-week high of $49.05 earlier in the session. U.S.-traded shares of ING fell $1.03, or 5.5 percent, to $17.82.