|Edgar Online, Inc.|
The following narrative analysis presents a review of the consolidated results of operations of ING Life Insurance and Annuity Company ("ILIAC") and its wholly owned subsidiaries (collectively, "we" or "our") for each of the three and six months ended
June 30, 2012and 2011 and financial condition as of June 30, 2012and December 31, 2011. This item should be read in its entirety and in conjunction with the Condensed Consolidated Financial Statements and related notes, which can be found under Part I, Item 1. contained herein, as well as the "Management's Narrative Analysis of the Results of Operations and Financial Condition" section contained in our 2011 Annual Report on Form 10-K.
Forward-Looking Information/Risk Factors
In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, we caution readers regarding certain forward-looking statements contained in this report and in any other statements made by, or on behalf of, us, whether or not in future filings with the
Securities and Exchange Commission("SEC"). Forward-looking statements are statements not based on historical information and which relate to future operations, strategies, financial results, or other developments. Statements using verbs such as "expect," "anticipate," "believe," or words of similar import, generally involve forward-looking statements. Without limiting the foregoing, forward-looking statements include statements that represent our beliefs concerning future levels of sales and redemptions of our products, investment spreads and yields, or the earnings and profitability of our activities. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control and many of which are subject to change. These uncertainties and contingencies could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, us. Whether or not actual results differ materially from forward-looking statements may depend on numerous foreseeable and unforeseeable developments, including, but not limited to the following:
1. While the global economy continues to recover from the financial crisis and
subsequent recession, risks remain for
economies. The uncertainty concerning current global market conditions and the impact it has on the U.S. economy, has affected and may continue to affect our results of operations.
2. The default of a major market participant could disrupt the markets.
3. Adverse financial market conditions, changes in rating agency standards and
practices and/or actions taken by ratings agencies may significantly affect
our ability to meet liquidity needs, access to capital and cost of capital.
4. Circumstances associated with implementation of ING Groep's recently announced global business strategy and the final restructuring plan submitted to the
European Commissionin connection with its review of ING
Groep's receipt of state aid from the Dutch State could adversely affect our
results of operations and financial condition.
5. The amount of statutory capital that we hold and our risk-based capital
("RBC") ratio can vary significantly from time to time and is sensitive to a
number of factors, many of which are outside of our control and influences
our financial strength and credit ratings.
6. We have experienced ratings downgrades and may experience additional future
downgrades in our ratings, which may negatively affect profitability, financial condition and access to liquidity. 7. The new federal financial regulatory reform law, its implementing
regulations and other financial regulatory reform initiatives, could have
adverse consequences for the financial services industry, including us
and/or materially affect our results of operations, financial condition and