Voya 2013 Annual Report Download - page 137

alternative investments, and adverse mortality and reserve changes in our Individual Life segment. These
decreases were partially offset by the favorable impacts to income from an increase in assets and margins in our
Retirement segment, improved investment margins in our Annuities segment and favorable claim results in our
Employee Benefits segment.
Adjustments from Income (Loss) before Income Taxes to Operating Earnings before Income Taxes
CBVA is discussed in “Results of Operations—Segment by Segment—CBVA.”
Net investment gains increased $383.7 million from $71.8 million to $455.5 million, primarily due to a
$447.6 million reduction in OTTI, partially offset by a reduction in gains on CMO-B fair value adjustments and
gains on sales of securities.
Net guaranteed benefit hedging gains (losses) and related charges and adjustments changed by
$366.6 million from a loss of $269.4 million to a gain of $97.2 million. Excluding nonperformance risk, we
incurred a $377.9 million loss in 2011 primarily due to the decrease in interest rates during 2011, compared to a
gain of $188.2 million in 2012, primarily due to a reduction in expected future guaranteed interest rates in certain
Stabilizer contracts in our Retirement segment. This favorable impact was partially offset by a decrease in the
fair value of guaranteed benefits related to nonperformance risk from a $21.3 million loss in 2011 to a
$114.2 million loss in 2012. DAC/VOBA amortization related to the respective gain (loss) accounted for the
remaining $106.6 million change.
Losses related to businesses exited through reinsurance or divestment increased $10.7 million from
$35.1 million to $45.8 million primarily due to a reduction in the amortization of a deferred gain on the group
reinsurance business that was divested at the end of 2009, partially offset by higher LOC costs in 2012 on the
individual reinsurance business that was divested in prior years but where we remained responsible for a portion
of the LOC costs.
Losses related to the immediate recognition of net actuarial gains (losses) related to pension and other
postretirement benefit obligations and losses from plan adjustments and curtailments increased $7.2 million from
$157.8 million to $165.0 million. The loss in both years is primarily due to a remeasurement loss, which resulted
from the revaluation of our Retirement Plan’s assets and obligations. The remeasurment loss in both years is due
primarily to a decrease in the discount rate of plan liabilities which resulted from the declining interest rate
environment.
Other adjustments to operating earnings changed $22.4 million from $(77.7) million to $(100.1) million due
to increased expenses related to the divestment of the Company by ING Group.
Results of Operations—Ongoing Business
We consider the Retirement, Annuities, Investment Management, Individual Life, and Employee Benefits
segments as our ongoing businesses. The following table summarizes Operating earnings before income taxes of
our ongoing businesses for the periods indicated:
Years Ended December 31,
($ in millions) 2013 2012 2011
Operating earnings before income taxes .............. $1,428.6 $990.9 $1,279.6
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