A U.S. insurance company will buy ING Reinsurance U.S., the former ReliaStar unit that that is now part of the Dutch financial service firm ING Group NV’s North American reinsurance operations.

Reinsurance Group of America will acquire ING’s U.S. and Canadian group life, accident and health reinsurance businesses, according to both companies. RGA said it will put about $115 million of capital into the business.

Victorina de Boer, spokeswoman at ING Group, said in a statement the company is divesting itself of ING Reinsurance because it did not fit in with ING’s plan to build its business around retirement services, life insurance and rollover annuities.

Terms of the deal were not disclosed by the two companies. Company officials expect the deal to be completed in the first quarter of next year, assuming regulatory approvals are obtained.

ING Reinsurance U.S. is based in Minneapolis, but also has a number of branch offices in Canada. ING will retain its reinsurance portfolio in the United States, which has been in runoff since 2002.

ING acquired what became ING Reinsurance U.S. when it bought ReliaStar in 2000.

The sale will give ING access to about 100 million euros ($149.2 million), which it will use to pay back state aid and lower its risks, de Boer said.

The transaction is the eighth such deal since the back-to-basics program was announced in April. The plan, which was tied to state aid from the Dutch government, should lead to 10 to 15 divestments overall, which would free up about 4 billion euros, de Boer said.

Amsterdam-based ING received 10 billion in euro capital in October 2008 and has been selling off assets to pay it back.