Voya 2013 Annual Report Download - page 129

The following table summarizes the adjustment to Income (loss) before taxes related to Total investment
gains (losses) and the related Net amortization of DAC/VOBA and other intangibles for the periods indicated:
Years Ended December 31,
($ in millions) 2013 2012 2011
Other-than-temporary impairments ............................ $(35.7) $ (55.1) $(502.7)
CMO-B fair value adjustments(1) .............................. (87.3) 221.1 326.5
Gains (losses) on the sale of securities ......................... 116.0 436.2 568.4
Other, including changes in the fair value of derivatives ........... 170.9 10.7 (119.3)
Total investment gains (losses) ............................... 163.9 612.9 272.9
Net amortization of DAC/VOBA and other intangibles on above .... 60.8 (130.8) (137.6)
Net investment gains (losses), including Closed Block Variable
Annuity ............................................... 224.7 482.1 135.3
Less: Closed Block Variable Annuity net investment gains (losses)
and related charges and adjustments ......................... 12.6 26.6 63.5
Net investment gains (losses) ................................ $212.1 $ 455.5 $ 71.8
(1) For a description of our CMO-B portfolio, see “—Investments—CMO-B Portfolio.”
The following table summarizes the adjustment to Income (loss) before taxes related to Guaranteed benefit
hedging gains (losses) net of DAC/VOBA and other intangibles amortization for the periods indicated. This table
excludes CBVA.
Years Ended December 31,
($ in millions) 2013 2012 2011
Gain (loss), excluding nonperformance risk ..................... $113.0 $ 188.2 $(377.9)
Gain (loss) due to nonperformance risk ........................ (55.8) (114.2) (21.3)
Net gain (loss) prior to related amortization of DAC/VOBA and sales
inducements ............................................ 57.2 74.0 (399.2)
Net amortization of DAC/VOBA and sales inducements ........... (37.8) 23.2 129.8
Net guaranteed benefit hedging gains (losses) and related charges and
adjustments ............................................ $ 19.4 $ 97.2 $(269.4)
Notable Items
We believe the following tables will help investors identify more easily some of the larger causes of
changes in our Operating earnings before income taxes during the periods discussed. The tables highlight notable
items that are included in Operating earnings before income taxes from the following categories: (1) large gains
or losses that are not indicative of performance in the period; (2) significant gains (losses) resulting from
transactions to change our capital structure; and (3) items that typically recur but can be volatile from period-to-
period (e.g., DAC/VOBA and other intangibles unlocking). In addition, we included the historic Interest expense
because Interest expense has changed significantly over the period given the change in debt. There may be other
items not included in the following table that caused increases (decreases) in Operating earnings before taxes for
the periods presented. See the descriptions within the “Results of Operations” section for a more comprehensive
discussion of the causes of changes in Operating earnings before income taxes.
Each quarter, we update our DAC/VOBA and other intangibles based on actual historical gross profits and
projections of estimated gross profits. Also, generally during the third quarter, we complete our annual review of
assumptions, including projection model inputs, in each of our segments (except for Investment
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