Voya 2013 Annual Report Download - page 16

of customers from the middle-market through affluent market segments. As of December 31, 2013, the
Individual Life distribution model is supported by independent life sales agents (over 2,200
independent general agents with access to over 96,000 producers), strategic distribution (approximately
35 independent managing directors supporting approximately 7,200 additional producers) and specialty
markets (95 general agents with access to over 7,100 producers).
•Employee Benefits provides stop loss, group life, voluntary employee-paid and disability products to
mid-sized and large businesses. As of December 31, 2013, the Company has 58 employee benefits
sales representatives, across 19 sales offices, with average industry experience of 17 years.
Approximately 58.3%, 23.4% and 10.3% of the Employee Benefit sales were attributed to stop loss,
life and voluntary products, respectively, for the year ended December 31, 2013.
Closed Blocks. We separated our CBVA and Closed Block Institutional Spread Products segments from our
other operations and made a strategic decision to stop actively writing new retail variable annuity products with
substantial guarantee features and to run-off the institutional spread products portfolio over time. Accordingly,
these segments have been classified as closed blocks and are managed separately from our ongoing business.
•CBVA. In 2009, we decided to cease sales of retail variable annuity products with substantial guarantee
features (the last policies were issued in early 2010) and placed this portfolio in run-off. Subsequently,
we refined our hedge program to seek to dynamically protect regulatory and rating agency capital of
the variable annuities block for adverse equity market movements. In addition, since 2010, we have
increased statutory reserves considerably, added significant interest rate risk protection and have more
closely aligned our policyholder behavior assumptions with experience. Our focus in managing our
CBVA segment is on protecting regulatory and rating agency capital from equity market movements
via hedging and judiciously looking for opportunities to accelerate the run-off of the block, where
possible. We believe that our hedge program, combined with our statutory reserves of $3.3 billion as of
December 31, 2013 related to the variable annuity block, provides adequate resources to fund a wide
range of, but not all, possible market scenarios as well as a margin for adverse policyholder behavior.
•Closed Block Institutional Spread Products. In 2009, we also placed the institutional spread products
portfolio in run-off. As of December 31, 2013, remaining assets in the institutional spread products
portfolio had an amortized cost of $2.5 billion, down from a peak of $14.3 billion in 2008.
As of December 31, 2013, we had $510.5 billion in total AUM and AUA and total shareholders’ equity,
excluding accumulated other comprehensive income/loss (“AOCI”) and noncontrolling interests, of $11.4 billion.
In the year ended December 31, 2013, we generated $758.1 million of income (loss) before income taxes, $600.5
million of net income (loss) available to ING U.S., Inc.’s common shareholders and $1.3 billion of operating
earnings before income taxes. Operating earnings before income taxes is a non-GAAP financial measure. For a
reconciliation of operating earnings before income taxes to income (loss) before income taxes, see “Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of
Operations—Company Consolidated”.
ORGANIZATIONAL HISTORY AND STRUCTURE
Our History
Prior to our initial public offering in May 2013, we were a wholly owned subsidiary of ING Group, a global
financial institution of Dutch origin, with operations in more than 40 countries and more than 95,000 employees.
ING Group entered the United States life insurance market in 1975 through the acquisition of Wisconsin
National Life Insurance Company, followed in 1976 with its acquisition of Midwestern United Life Insurance
Company and Security Life of Denver Insurance Company in 1977. ING Group significantly expanded its
presence in the United States in the late 1990s and 2000s with the acquisitions of Equitable Life Insurance
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