Voya 2013 Annual Report Download - page 160

(1) Unlocking related to the Net gain from Lehman Recovery/LIHTC is excluded from DAC/VOBA and other
intangibles unlocking for the year ended December 31, 2013 (and included in Net gain from Lehman
Recovery/LIHTC).
(2) Includes the impacts of the annual review of assumptions.
Liquidity and Capital Resources
Liquidity is our ability to generate sufficient cash flows to meet the cash requirements of operating, investing
and financing activities. Capital refers to our long-term financial resources available to support the business
operations and contribute to future growth. Our ability to generate and maintain sufficient liquidity and capital
depends on the profitability of the businesses, timing of cash flows on investments and products, general economic
conditions and access to the capital markets and the alternate sources of liquidity and capital described herein.
Consolidated Sources and Uses of Liquidity and Capital
Our principal available sources of liquidity are premiums, deposits, fee income, investment income, proceeds
from the maturity and sale of investments, proceeds from debt issuance and borrowing facilities, repurchase
agreements and securities lending. Primary uses of these funds are payments of policyholder benefits commissions
and operating expenses, interest credits, investment purchases and contract maturities, withdrawals and surrenders.
Parent Company Sources and Uses of Liquidity
In evaluating liquidity it is important to distinguish the cash flow needs of ING U.S., Inc. from the cash flow
needs of the Company as a whole. ING U.S., Inc. is largely dependent on cash flows from its operating
subsidiaries to meet its obligations. The principal sources of funds available to ING U.S., Inc. include dividends
and returns of capital from its operating subsidiaries, as well as cash and short-term investments. These sources
of funds are currently supplemented by ING U.S., Inc.’s access to the $750.0 million revolving credit sublimit of
its Revolving Credit Agreement and reciprocal borrowing facilities maintained with its subsidiaries as well as
other alternate sources of liquidity described below either directly or indirectly through its insurance subsidiaries.
ING U.S., Inc.’s primary sources and uses of cash for the years ended December 31, 2013, 2012 and 2011
are summarized in the following table:
Years Ended December 31,
($ in millions) 2013 2012 2011
Beginning cash balance ......................... $ 357.5 $ 1.3 $ 3.0
Sources:
Proceeds from borrowings from ING V ......... — — 263.0
Dividends and returns of capital from
subsidiaries ............................. 1,434.0 813.0 200.0
Repayment of loans to subsidiaries, net of new
issuances ............................... — 102.3 870.2
Proceeds from credit facility borrowings, net of
repayments ............................. — 1,350.0 —
Proceeds from 2022 Notes offering ............ — 849.5 —
Proceeds from 2018 Notes offering ............ 998.2 — —
Proceeds from 2053 Notes offering ............ 750.0 — —
Proceeds from 2043 Notes offering ............ 398.6 — —
Proceeds from Initial Public Offering ........... 571.6 — —
Amounts received from subsidiaries under tax
sharing arrangements, net .................. 348.2 56.4 205.7
Other, net ................................. 4.8 62.3 2.8
Total sources .............................. 4,505.4 3,233.5 1,541.7
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