Voya 2013 Annual Report Download - page 172

ING U.S., Inc. provided a separate indemnification to ING Bank with respect to any defaults by the Master
Trust under a similar securities lending agreement between the Master Trust and ING Bank, up to $825.0 million.
This agreement and the related indemnification were entered into to facilitate collateral requirements supporting
reinsurance agreements and are effective for the duration that the collateral remains outstanding. This agreement
was to expire on December 31, 2013. Effective October 30, 2013, SLDI completed a $1.125 billion letter of
credit facility which replaced this facility. The new facility does not involve an ING U.S., Inc. guarantee.
ING U.S., Inc. has also entered into a corporate guarantee agreement with a third-party ceding insurer where
it guarantees the reinsurance obligations of our subsidiary, SLD, assumed under a reinsurance agreement with the
third-party cedent. SLD retrocedes the business to Hannover Life Reassurance Company of America (“Hannover
US”) who is the claim paying party. The current amount of reserves outstanding as of December 31, 2013 is
$25.0 million. The maximum potential obligation is 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 guarantees.
On September 6, 2012, ING U.S., Inc. as borrowing party and its subsidiary, Roaring River III, LLC
(“Roaring River III”), as borrower, entered into a reimbursement agreement with a third-party bank providing for
$390.0 million of initial funding in the form of a putable variable funding trust note due 2022 where ING U.S.,
Inc. guarantees the reimbursement obligations of Roaring River III. Roaring River III has entered into a
reinsurance agreement with an affiliated ceding company and by entering into the reimbursement agreement,
Roaring River III provides collateral for reinsurance in the form of the trust note. To support additional growth in
reserves on the policies reinsured, the trust note notional amount may be increased to approximately $1.2 billion
prior to maturity. As of December 31, 2013 the amount of the trust note was $581.0 million.
Reinsurance Subsidiaries—Other Credit Support
RLI and SLD, indirect and direct subsidiaries of ING U.S., Inc., respectively, guarantee a reinsurance
contract entered into by SLDI with respect to SLDI’s reinsurance of $250.0 million of the principal and interest
of a bond insured by an unrelated insurance company. The bond payments are supported by the insurer’s closed
block. Surplus from the closed block, in the form of dividends, is used to pay the bond principal and interest.
In order to collateralize obligations under this treaty, RLI provided a LOC of $265.0 million issued by the
FHLB of Des Moines to the unrelated insurer which is secured by assets pledged by RLI to FHLB. As of
December 31, 2013 and 2012, the LOC is collateralized by assets with a market value of approximately
$294.1 million and $336.5 million, respectively.
Other Subsidiaries—ING U.S., Inc. Credit Support
ING U.S., Inc. guarantees the obligations of Lion Holdings under the $13.0 million par amount ING USA
Notes maturing in 2027 as well as $506.1 million combined par amount of Aetna Notes. For more information
see “Debt Securities” above. From time to time, ING U.S., Inc. may also have outstanding guarantees of various
obligations of its subsidiaries.
We did not recognize any asset or liability as of December 31, 2013 in relation to intercompany
indemnifications and support agreements. As of December 31, 2013, no circumstances existed in which we were
required to currently perform under these indemnifications and support agreements.
ING Group Credit Support
As described above, certain of our indebtedness benefits from a guarantee provided by ING Group or NN
Group (as successor to ING V). As of December 31, 2013, the indebtedness for which ING Group or ING V
provide guarantees included:
• $15.0 million in LOC issued by ING Bank and used to support the reinsurance obligations of certain of
our captive reinsurance subsidiaries;
• $506.1 million aggregate par amount of Aetna Notes issued by Lion Holdings.
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