Voya 2013 Annual Report Download - page 158

The following table summarizes the investment income for the years ended December 31, 2013, 2012 and
2011, respectively, and the average assets of alternative investments as of the dates indicated:
Years Ended December 31,
($ in millions) 2013 2012 2011
Retirement
Alternative investment income ................. $ 36.4 $ 43.2 $ 42.6
Average alternative investment ................. 262.0 523.1 726.8
Annuities
Alternative investment income ................. 25.6 25.8 22.6
Average alternative investment ................. 177.6 284.4 315.5
Investment Management
Alternative investment income ................. 23.8 41.6 9.0
Average alternative investment ................. 124.0 107.5 98.1
Individual Life
Alternative investment income ................. 20.2 12.1 19.5
Average alternative investment ................. 131.0 197.5 244.8
Employee Benefits
Alternative investment income ................. 3.9 4.5 6.8
Average alternative investment ................. 24.7 54.2 78.3
Total Ongoing Business
Alternative investment income ................. 109.9 127.2 100.5
Average alternative investment ................. 719.3 1,166.7 1,463.5
Corporate
Alternative investment income ................. 9.0 23.4 15.0
Average alternative investment ................. 97.8 95.5 84.6
Closed Blocks(1)
Alternative investment income ................. 9.7 11.6 10.7
Average alternative investment ................. 58.1 88.4 97.9
Total ING US
Alternative investment income ................. $128.6 $ 162.2 $ 126.2
Average alternative investment ................. $875.2 $1,350.6 $1,646.0
(1) Our Closed Block Variable Annuity segment is managed to focus on protecting regulatory and rating agency
capital rather than achieving operating metrics and, therefore, its results of operations are not reflected
within investment income.
Unlocking of DAC/VOBA and other Contract Owner/Policyholder Intangibles
Changes in Operating earnings before income taxes and net income (loss) are influenced by increases and
decreases in amortization of DAC, VOBA, DSI, and URR. The DAC asset represents policy acquisition costs
that have been capitalized and are subject to amortization and interest. Capitalized costs are direct incremental
costs of contract acquisition, as well as certain costs related directly to acquisition activities. Such costs consist
principally of certain commissions, underwriting, sales and contract issuance and processing expenses directly
related to the successful acquisition of new and renewal business. The VOBA asset represents the outstanding
value of in-force business acquired and is subject to amortization and interest. The value is based on the present
value of estimated net cash flows embedded in the insurance contracts at the time of the acquisition and increased
for subsequent deferrable expenses on purchased policies. We amortize VOBA over the estimated life of the
contracts using the same methodology and assumptions employed to amortize DAC. The DSI asset represents
benefits paid to contract owners for a specified period that are incremental to the amounts we credit on similar
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