Voya 2013 Annual Report Download - page 156

The following table presents AUM for our CBVA segment as of the dates indicated:
Years Ended December 31,
($ in millions) 2013 2012 2011
AUM
General account ............................................ $ 1,429.1 $ 1,237.6 $ 1,069.4
Separate account ........................................... 44,269.9 41,960.8 41,576.1
Total AUM ........................................... $45,699.0 $43,198.4 $42,645.5
The following table presents a rollforward of AUM for our CBVA segment for the periods indicated:
Years Ended December 31,
($ in millions) 2013 2012 2011
Balance as of beginning of period ............... $43,198.4 $42,645.5 $47,978.0
Deposits ............................... 661.0 500.5 543.3
Surrenders, benefits and product charges ..... (4,579.9) (4,019.3) (4,332.9)
Net flows .......................... (3,918.9) (3,518.8) (3,789.6)
Interest credited and investment
performance .......................... 6,419.5 4,071.7 (1,542.9)
Balance as of end of period .................... $45,699.0 $43,198.4 $42,645.5
Closed Block Variable Annuity—Year Ended December 31, 2013 Compared to Year Ended
December 31, 2012
Loss before income taxes increased $517.0 million from $692.3 million to $1,209.3 million. Annual
assumption changes implemented during the current period resulted in a loss of $185.3 million, which included
$117.9 million of unfavorable mortality assumption changes and $85.5 million of unfavorable policyholder
behavior assumption changes. The prior period result included a loss of $151.7 million due to annual assumption
changes, which consisted of $114.6 million driven primarily by an update to lapse rates on variable annuity
contracts with lifetime living benefit guarantees and $37.1 million related to changes in cash flow projections and
volatility assumptions on certain products.
Net losses related to the incurred guaranteed benefits and our guarantee hedge and CHO program increased
to $1,674.3 million in the current period compared to $1,209.3 million in the prior period. The $465.0 million
increased loss was primarily due to higher equity market returns, as our guarantee hedges backing reserves are
more sensitive to changes in equity markets than those reserves, as well as higher unfavorable impacts of
assumption changes in the current period compared to the prior period, as described above. The focus in
managing our CBVA segment is on protecting regulatory and rating agency capital, and our hedging program is
primarily designed to mitigate the impacts of market scenarios on capital resources, rather than mitigating
earnings volatility. The current period result also included a loss of $494.5 million due to changes in the fair
value of guaranteed benefit derivative related to nonperformance risk, compared to a loss of $443.6 million in the
prior period.
Closed Blocks Variable Annuity—Year Ended December 31, 2012 Compared to Year Ended
December 31, 2011
Loss before income taxes increased $127.8 million from $564.5 million to $692.3 million as a result of
several factors. Changes in fair value of guaranteed benefit derivatives related to nonperformance risk combined
with higher losses on our CHO program were more than offset by a decrease in net losses related to the incurred
guaranteed benefits and our Variable Annuity Guarantee Hedge Program. The change in the fair value of
guaranteed benefit derivatives related to nonperformance risk changed by ($960.6) million, from a gain of
$517.0 million to a loss of ($443.6) million. The net gain (loss) of our incurred guaranteed benefits and the
results of our Variable Annuity Guarantee Hedge Program will vary from period-to-period primarily because our
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