Voya 2013 Annual Report Download - page 154

The following table presents Operating earnings before income taxes of our Closed Block Other segment for
the periods indicated:
Years Ended December 31,
($ in millions) 2013 2012 2011
Operating revenues:
Net investment income and net realized gains (losses) .... $24.6 $ 35.0 $ 39.0
Fee income ...................................... — 0.1 5.7
Premiums ....................................... 2.3 5.1 4.3
Other revenue ................................... 0.8 3.6 3.2
Total operating revenues ............................... 27.7 43.8 52.2
Operating benefits and expenses:
Interest credited and other benefits to contract owners/
policyholders .................................. (0.7) (3.8) 29.0
Operating expenses ............................... 13.7 (16.4) 36.1
Interest expense .................................. — — 0.1
Total operating benefits and expenses ..................... 13.0 (20.2) 65.2
Operating earnings before income taxes ................. $14.7 $ 64.0 $(13.0)
Closed Blocks—Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Closed Block Institutional Spread Products
Operating earnings before income taxes decreased $9.8 million from $45.7 million to $35.9 million
primarily as a result of lower earnings resulting from a decrease in block size and a prepayment fee on early
termination of certain FHLB funding agreements offset by a loss on sale of certain alternative investments in the
prior period. The average block size based on AUM declined approximately 24% from $4.7 billion in 2012 to
$3.6 billion in 2013. As a result, both Net investment income and Interest credited and other benefits to contract
owners/policyholders decreased.
Closed Block Other
Operating earnings before income taxes decreased $49.3 million from $64.0 million to $14.7 million
primarily as a result of lower operating expenses in the prior period due to a $22.0 million reimbursement of
expenses from ING Group during the prior period as well as a contingency accrual in the current period. In
addition, reserve changes for the group reinsurance business and a reduction in revenue resulting from the
continuing run-off of this segment contributed to the decrease.
Closed Blocks—Year Ended December 31, 2012 Compared to Year Ended December 31, 2011
Closed Block Institutional Spread Products
Operating earnings before income taxes decreased $37.5 million from $83.2 million to $45.7 million as a
result of decrease in the average size of the block and the $8.0 million loss on the sale of certain alternative
investments, partially offset by reductions in contract interest crediting costs, including net prepayment fees paid
on contracts terminated in 2011 and 2012. The average block size based on AUM declined approximately 25.4%
from $6.3 billion in 2011 to $4.7 billion in 2012. Interest credited and other benefits to contract owners/
policyholders decreased $21.5 million primarily due to the decrease in the block size, as well as declines in
overall contract costs due to lower average interest crediting rates.
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