Voya 2013 Annual Report Download - page 118

The Insurance Solutions business provides its products and services through two segments: Individual Life
and Employee Benefits:
• Our Individual Life segment provides wealth protection and transfer opportunities through universal,
variable, whole life and term life products. Our customers range across a variety of age groups and
income levels. We distribute our product offering through three main channels: our independent sales
channel, our strategic distribution channel and our specialty markets channel. Our independent sales
channel consists of a large network of independent general agents and marketing companies who
interact with the majority of licensed independent life insurance agents in the United States. Our
strategic distribution channel encompasses a network of independent managing directors who support a
large team of producers who engage with our broker-dealers to sell a range of products including our
branded life, annuity and mutual funds. Finally, our specialty markets channel focuses on alternative
distribution and consists of a large team of producers, in addition to banks, life insurance quote
agencies and internet direct marketers.
• Our Employee Benefits segment provides stop loss, group life, voluntary employee-paid and disability
products to mid-sized and large businesses. We reinsure substantially all of our new disability sales to a
third party. To distribute our products, we utilize brokers, consultants and third-party administrators. In
the voluntary market, policies are marketed to employees at the worksite through enrollment firms,
technology partners and brokers.
In addition to our ongoing business, we also have Closed Blocks and Corporate reporting segments.
Corporate includes our corporate operations and corporate level assets and financial obligations. The Corporate
segment includes investment income on assets backing surplus in excess of amounts held at the segment level,
financing and interest expenses, other items not allocated to segments, such as certain expenses and liabilities of
employee benefit plans and intercompany eliminations.
Closed Blocks consists of three separate reporting segments that include run-off and legacy business lines
that are no longer being actively marketed or sold, but are managed to protect regulatory and rating agency
capital from equity market movements. The CBVA segment consists of variable annuity contracts that were
designed to offer long-term savings products in which individual contract owners made deposits that are
maintained in separate accounts. These products included options for policyholders to purchase living benefit
riders. In 2009, we separated our CBVA segment from our other operations, placing it in run-off, and made a
strategic decision to stop actively writing new retail variable annuity products with substantial guarantee features
(the last policies were issued in 2010 and the block shifted to run-off). The Closed Block Institutional Spread
Products segment historically issued GICs and funding agreements and invested amounts raised to earn a spread.
While the business in the Closed Block Institutional Spread Products segment is being managed in active run-off,
we continue to issue liabilities from time to time to replace liabilities that are maturing. The Closed Block Other
segment consists primarily of retained and run-off activity related to divestments, including our group
reinsurance and individual reinsurance businesses, three broker dealers and Life Insurance Company of Georgia.
Closed Block Other also includes certain reimbursed expenses related to ING Group’s Latin America business,
which was sold in December 2011. Accordingly, these segments have been classified as closed blocks and are
managed separately from our ongoing business.
Trends and Uncertainties
Throughout this Management’s Discussion and Analysis (“MD&A”), we discuss a number of trends and
uncertainties that we believe may materially affect our future liquidity, financial condition or results of
operations. Where these trends or uncertainties are specific to a particular aspect of our business, we often
include such a discussion under the relevant caption of this MD&A, as part of our broader analysis of that area of
our business. In addition, the following factors represent some of the key general trends and uncertainties that
have influenced the development of our business and our historical financial performance and that we believe
will continue to influence our business and financial performance in the future.
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