Forward Looking Statements — Cautionary Language (ILIAC)
Forward Looking Information – Cautionary Language
In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, ING Life Insurance and Annuity Company and its wholly-owned subsidiaries (collectively the “Company”) cautions readers regarding certain forward-looking statements contained in this report and in any other statements made by, or on behalf of, the Company, 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 the Company’s beliefs concerning future levels of sales and redemptions of the Company’s products, investment spreads and yields, or the earnings and profitability of the Company’s 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 the Company’s 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, the Company. 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:
- While the global economy continues to recover from the financial crisis and subsequent recession, risks remain for the United States and other world 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 the Company’s results of operations.
- Adverse financial market conditions, changes in rating agency standards and practices and/or actions taken by ratings agencies may significantly affect the Company’s ability to meet liquidity needs, access to capital and cost of capital.
- Circumstances associated with implementation of ING Groep’s recently announced global business strategy and the final restructuring plan submitted to the European Commission (“EC”) in connection with its review of ING Groep’s receipt of state aid from the State of the Netherlands (the “Dutch State”) could adversely affect the Company’s results of operations and financial condition.
- The amount of statutory capital that the Company holds and its 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 the Company’s control, and influences its financial strength and credit ratings.
- The Company experienced ratings downgrades in 2009 and 2010 and may experience additional future downgrades in the Company’s ratings, which may negatively affect profitability, financial condition, and access to liquidity.
- 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 the Company and/or materially affect the Company’s results of operations, financial condition and liquidity.
- The valuation of many of the Company’s financial instruments includes methodologies, estimations and assumptions that are subject to differing interpretations and could result in changes to investment valuations that may materially adversely affect results of operations and financial condition.
- The determination of the amount of impairments taken on the Company’s investments is subjective and could materially impact results of operations.
- If assumptions used in estimating future gross profits differ from actual experience or if an estimation technique used to estimate future gross profits is modified, the Company may be required to accelerate the amortization of Deferred Acquisition Costs (“DAC”), which could have a material adverse effect on results of operations and financial condition.
- Changes in underwriting and actual experience could materially affect profitability.
- The Company may be required to establish an additional valuation allowance against the deferred income tax asset if the Company’s business does not generate sufficient taxable income or if the Company’s tax planning strategies are modified based on new or revised accounting principles generally accepted in the United States (“US GAAP”) requirements. Increases in the deferred tax valuation allowance could have a material adverse effect on results of operations and financial condition.
- Reinsurance subjects the Company to the credit risk of reinsurers and may not be adequate to protect against losses arising from ceded reinsurance.
- The inability of counterparties to meet their financial obligations could have an adverse effect on the Company's results of operations.
- Changes in reserve estimates may reduce profitability.
- A loss of or significant change in key product distribution relationships could materially affect sales.
- Competition could negatively affect the ability to maintain or increase profitability.
- Changes in federal income tax law or interpretations of existing tax law could affect profitability and financial condition by making some products less attractive to contract owners and increasing tax costs of contract owners or the Company.
- The Company may be adversely affected by increased governmental and regulatory scrutiny or negative publicity.
- A loss of key employees could increase the Company’s operational risks and could adversely affect the effectiveness of internal controls.
- Litigation may adversely affect profitability and financial condition.
- The Company’s businesses are heavily regulated, and changes in regulation in the United States and regulatory investigations may reduce profitability.
- The Company’s products are subject to extensive regulation and failure to meet any of the complex product requirements may reduce profitability.
- Failure of a Company operating or information system or a compromise of security with respect to an operating or information system or portable electronic device or a failure to implement system modifications or a new accounting, actuarial or other operating system effectively could adversely affect the Company’s results of operations and financial condition or the effectiveness of internal controls over financial reporting.
- Requirements to post collateral or make payments due to declines in market value on assets posted as collateral may adversely affect liquidity.
- Defaults or delinquencies in the commercial mortgage loan portfolio may adversely affect the Company’s profitability
- The occurrence of unidentified or unanticipated risks within the Company’s risk management programs could negatively affect the Company’s business or result in losses.
- The occurrence of natural or man-made disasters may adversely affect the Company’s results of operations and financial condition.
The risks included here are not exhaustive. Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC include additional factors which could impact our business and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.
Further, it is not possible to assess the impact of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this report.