Voya 2013 Annual Report Download - page 161

Years Ended December 31,
($ in millions) 2013 2012 2011
Uses:
Payments under interest rate swap contracts, net of
new issuance ............................ $ — $ — $ 410.4
Payment of interest expense .................. 90.6 33.4 52.6
Capital provided to subsidiaries ............... 2,062.0 400.0 377.0
Repayments of loans from subsidiaries, net of new
issuances ............................... 319.1 2,037.3 40.8
Repayment of commercial paper, net of
issuances ............................... 192.0 362.6 649.0
Repayment of credit facility borrowings ......... 1,350.0 — —
New issuances of loans to subsidiaries, net of
repayments ............................. 134.3 — —
Payment of income taxes, net ................. 43.0 5.2 13.6
Debt issuance costs ......................... 26.5 38.8 —
Payment of dividends ....................... 5.2 — —
Total uses ..................................... 4,222.7 2,877.3 1,543.4
Net increase (decrease) in cash and cash equivalents . . . 282.7 356.2 (1.7)
Ending cash balance ........................... $ 640.2 $ 357.5 $ 1.3
Liquidity
We manage liquidity through access to substantial investment portfolios as well as a variety of other sources
of liquidity including committed credit facilities, securities lending and repurchase agreements. Our asset/
liability management (“ALM”) process takes into account the expected maturity of investments and expected
benefit payments as well as the specific nature and risk profile of the liabilities, including variable products with
guarantees. As part of our liquidity management process, we model different scenarios to determine whether
existing assets are adequate to meet projected cash flows. Key variables in the modeling process include interest
rates, equity market movements, quantity and type of interest and equity market hedges, anticipated contract
owner behavior, market value of general account assets, variable separate account performance and implications
of rating agency actions.
Restrictions on Dividends and Returns of Capital from Subsidiaries
Our business is conducted through operating subsidiaries. U.S. insurance laws and regulations regulate the
payment of dividends and other distributions by our U.S. insurance subsidiaries to their respective parents.
Dividends in excess of prescribed limits established by the applicable state regulations are considered to be
extraordinary transactions and require explicit regulatory approval. In addition, under the insurance laws of the
states of domicile of our Principal Insurance Subsidiaries, no dividend or other distribution exceeding an amount
equal to an insurance company’s earned surplus may be paid without the domiciliary insurance regulator’s prior
approval. For a summary of applicable laws and regulations governing dividends, see “Item 8. Note 12.
Insurance Subsidiaries-Insurance Subsidiaries Dividend Restrictions.”
151