Voya 2013 Annual Report Download - page 138

The following table summarizes certain notable items that resulted in volatility in Operating earnings before
income taxes:
Years Ended December 31,
($ in millions) 2013 2012 2011
DAC/VOBA and other intangibles unlocking(1)(2) ....... $133.2 $(77.0) $303.8
Loss on sale of alternative investments ............... — (82.1) —
Net gain from Lehman Recovery/LIHTC ............. 83.6 — —
(1) Unlocking related to the Net gain from Lehman Recovery/LIHTC is excluded from DAC/VOBA and other
intangibles unlocking for the year ended December 31, 2013 (and included in Net gain from Lehman
Recovery/LIHTC).
(2) Includes the impacts of the annual review of assumptions. See “—Unlocking of DAC/VOBA and other
Contract Owner/Policyholder Intangibles” for further description.
Ongoing Business—Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Operating earnings before income taxes increased $437.7 million from $990.9 million to $1,428.6 million
as a result of several factors. Higher Fee income in our Retirement and Investment Management segments and
improved margins in our Annuities segment related to MYGA run-off contributed to the increase. In addition,
higher Net investment income due to the Net gain from Lehman Recovery/LIHTC in the current period and the
loss on the sale of certain alternative investments in the prior period was offset by lower investment income in
our Retirement Solutions and Insurance Solutions businesses as a result of portfolio restructuring in the prior
period. DAC/VOBA and other intangibles unlocking improved to $133.2 million in the current period compared
to $(77.0) million in the prior period, largely as a result of favorable prospective assumption changes of
$84.8 million in the current period.
Ongoing Business—Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
Operating earnings before income taxes decreased $288.7 million from $1,279.6 million to $990.9 million
primarily due to unfavorable DAC/VOBA and other intangibles unlocking in 2012 of $77.0 million compared to
favorable unlocking in 2011 of $303.8 million, the $82.1 million loss in 2012 related to the sale of certain
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. See “Results of Operations—Segment by Segment.”
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