Voya 2013 Annual Report Download - page 152

Employee Benefits—Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
Operating revenues
Net investment income and net realized gains (losses) decreased $10.0 million from $124.3 million to
$114.3 million primarily due to the $5.1 million loss on the sale of certain alternative investments, lower
investment income on alternative investments and lower yields on fixed income investments.
Premiums increased $14.7 million from $1,063.4 million to $1,078.1 million primarily due to higher stop
loss premiums resulting from higher sales and in-force blocks. Annualized in-force stop loss premiums increased
5.0% over 2011. These increases were partially offset by lower group life premiums due to a decline in the in-
force block driven by low persistency in 2011 adversely impacting 2012.
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders decreased $25.6 million from $917.7
million to $892.1 million primarily due to favorable claims experience and higher reinsurance recoveries in our
stop loss block. This decrease was partially offset by lower favorable experience with the run-off block of
retained disability products.
Operating expenses increased $6.9 million from $229.3 million to $236.2 million primarily due to an
increase in administrative expenses and higher premium taxes and guarantee assessments related to an increase in
sales.
Operating earnings before income taxes
Growth of the in-force stop loss business and improved loss ratios on stop loss and group life businesses
contributed to improved operating earnings, partially offset by lower favorable experience with the run-off block
of retained disability products and lower alternative investment income.
Corporate
The following table summarizes Operating earnings before income taxes of our Corporate segment for the
periods indicated:
Years Ended December 31,
($ in millions) 2013 2012 2011
Interest expense (including interest rate swap settlements) .... $(179.7) $(127.8) $(185.7)
Closed Block Variable Annuity contingent capital LOC ...... (18.4) (56.7) —
Amortization of intangibles ............................ (35.0) (35.0) (34.4)
Reserve increase related to the use of SSDMF ............. — — (68.9)
Other .............................................. 22.5 37.2 58.8
Operating earnings before income taxes .................. $(210.6) $(182.3) $(230.2)
Our Corporate segment operating results include investment income on assets backing surplus in excess of
amounts held at the operating segment level, financing and interest expenses, amortization of intangibles and
other items not allocated to operating segments.
Corporate—Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Operating earnings before income taxes decreased $28.3 million from $(182.3) million to $(210.6) million
primarily due to an increase in interest expense and operating expenses, offset by a decrease in LOC expenses.
Interest expense increased over the period partially due to additional interest and debt issuance costs as a result of a
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