3 Reasons to Buy ING UShttp://www.fool.com/investing/general/2013/09/30/3-reasons-to-buy-ing-us.aspx Jessica Alling
September 30, 2013
ING US (NYSE: VOYA) wants to be the nation's top retirement solutions firm. And though it may be a newcomer to the exchanges, it's no stranger to the financial services industry. If you haven't taken a look at ING US yet, now may be the perfect time to check out this well-balanced firm. Lets look at the top three reasons an investment in ING US might help you retire rich.
With the deterioration of some retirement-age safety nets, such as pensions and Social Security benefits, many Americans are faced with the need to build more funds for their retirement. But the financial crisis has put many households under financial restraints, leaving little chance that they could post the large cash requirements for traditional retirement products. With the switch from traditionally capital-intensive products, in which customers have to put up large chunks of cash up front, to more fee-based products, ING US is opening itself up to serve a larger customer base.
ING US's largest competitor, MetLife (NYSE: MET), has also announced that it has switched its focus to fee-based products. Both companies have stated that the transition will help in the face of continued low interest rates. So by helping customers, ING US is helping itself. Though it may have accounts start at lower thresholds, basing the products on fee-related transactions has already aided the company's retirement solutions division's revenue growth.
ING US has also had a solid focus on improving its return on equity, with aggressive targets set for 2016. For its overall ongoing business, ING US has set a target of 12%-13% by 2016, with the second quarter's results showing continued improvements at 9.9%. By comparison, competitor AIG reported a ROE of 7.4% -- a lower result than what ING US had reported for the 2011 fiscal year.