Voya 2013 Annual Report Download - page 171

The peak financing requirement for the Hannover Re block is expected to reach approximately $2.6 billion
in 2016.
Closed Block Variable Annuity
($ in millions)
Obligor / Applicant
Financing
Structure Product Expiration Capacity Utilization
ING U.S., Inc. / SLDI ............... Credit Facility GMWBL/GMIB 04/20/2015 $1,200.0 $1,200.0
Total ............................ $1,200.0 $1,200.0
Contingent Capital Letter of Credit
SLDI was the sole obligor under a $1.5 billion contingent capital LOC facility with ING Bank, under which
$1.5 billion of LOCs were issued to support SLDI’s reinsurance obligations to ING USA for certain minimum
guarantees included in its CBVA products. The agreement had no recourse to ING U.S., Inc.
On May 8, 2013, ING U.S., Inc. made a capital contribution to SLDI in the amount of $1.8 billion.
Immediately thereafter, SLDI deposited the contributed capital as cash collateral into a funds withheld trust
account to support its reinsurance obligation to ING USA related to variable annuity cessions from ING USA to
SLDI. Following the deposit by SLDI of the contributed capital into the funds withheld trust account, the
$1.5 billion contingent capital LOCs issued under the contingent capital LOC facility were cancelled and on
May 14, 2013, the $1.5 billion contingent capital LOC facility was terminated.
Reinsurance Subsidiaries—ING U.S., Inc. Credit Support
As of December 31, 2013, ING U.S., Inc. supported the reinsurance obligations of its reinsurance
subsidiaries with $15.0 million in LOCs issued by ING Bank of which $15.0 million was guaranteed by ING V.
No fees are paid by the Company to ING V with respect to this guarantee. Subsequently on January 14, 2014, the
letter of credit was cancelled and the corresponding guarantee obligation of ING V was extinguished.
ING U.S., Inc. also maintains credit facilities with third-party banks to support the reinsurance obligations
of our captive reinsurance subsidiaries. As of December 31, 2013, such facilities provided for up to $2.1 billion
of capacity, of which $1.2 billion was utilized.
In addition to providing credit facilities, we also provide credit support to our captive reinsurance
subsidiaries through surplus maintenance agreements, pursuant to which we agree to cause these subsidiaries to
maintain particular levels of capital or surplus and which we entered into in connection with particular
reinsurance transactions. These agreements are effective for the duration of the in-force policies subject to the
related reinsurance transactions and the maximum potential obligations are not specified or applicable. Since
these obligations are not subject to limitations, it is not possible to determine the maximum potential amount due
under these agreements.
In connection with certain reinsurance transactions involving a third-party trust (the “Master Trust”), ING
U.S., Inc. and SLDI are parties to reimbursement agreements with third-party banks that lend securities to the
Master Trust. SLDI has reimbursement obligations to the banks under these agreements, in an aggregate amount
of up to $1.5 billion as of December 31, 2013, which obligations are guaranteed by ING U.S., Inc. ING U.S., Inc.
also provides an indemnification to the third-party banks with respect to any defaults by the Master Trust under
the securities lending agreements under which these banks lend securities to the Master Trust, up to $1.5 billion.
These agreements and the related indemnification were entered into to facilitate collateral requirements
supporting reinsurance and are effective for the duration that the collateral remains outstanding.
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