Voya 2013 Annual Report Download - page 174

FHLB
We are currently a member of the FHLB of Des Moines and the FHLB of Topeka and are required to
maintain a collateral deposit to back any advances, funding agreements issued or LOCs issued by the FHLB. We
have the ability to obtain funding from the FHLBs based on a percentage of the value of our assets and are
subject to the availability of eligible collateral. The limits across all programs are 15% of the general and
separate accounts of ING USA, potentially up to 40% of the general account of SLD based on credit approval
from FHLB of Topeka and 20% of the general and separate accounts of RLI. Furthermore, collateral is pledged
based on the outstanding balances of FHLB advances, funding agreements and LOCs. The amount varies based
on the type, rating and maturity of the collateral posted to the FHLB. Generally, mortgage securities are pledged
to the FHLBs. Market value fluctuations resulting from changes in interest rates, spreads and other risk factors
for each type of assets are monitored and additional collateral is either pledged or released as needed.
Our borrowing capacity under these credit facilities does not have an expiration date as long as we maintain
a satisfactory level of creditworthiness based on the FHLBs’ credit assessment. At December 31, 2013 and 2012,
we had $1.8 billion and $2.6 billion in non-putable funding agreements, respectively, which are included in
Contract owner account balances on the Consolidated Balance Sheets. At December 31, 2013 and 2012, we had
$265.0 million, respectively, of LOCs issued by the FHLB. At December 31, 2013 and 2012, we had assets with
a market value of approximately $2.0 billion and $3.1 billion, respectively, which collateralized the FHLB
funding agreements. At December 31, 2013 and 2012, we had assets with a market value of approximately
$294.1 million and $336.5 million, respectively, which collateralized the FHLB LOCs. Assets pledged to the
FHLB are included in Fixed maturities, available-for-sale, on the Consolidated Balance Sheets. See “Liquidity
and Capital Resources-Description of Certain Indebtedness” above for further discussion.
Borrowings from Parent
For information related to these arrangements, see “Item 8. Note 18. Related Party Transactions.”
Borrowings from Subsidiaries
We maintain revolving reciprocal loan agreements with a number of our life and non-life insurance
subsidiaries that are used to fund short-term cash requirements that arise in the ordinary course of business.
Under these agreements, either party may borrow up to the maximum allowable under the agreement for a term
not more than 270 days. For life insurance subsidiaries, the amounts that either party may borrow from the other
under the agreement vary and are equal to 2%-5% of the insurance subsidiary’s statutory net admitted assets
(excluding separate accounts) as of the previous year end depending on the state of domicile. As of December 31,
2013, the aggregate amount that may be borrowed or lent under agreements with life insurance subsidiaries was
$2.5 billion. Each agreement with a life insurance subsidiary has received all necessary approvals from the
appropriate state insurance regulatory authorities. For non-life insurance subsidiaries, the maximum allowable
under the agreement is based on the assets of the subsidiaries and their particular cash requirements. As of
December 31, 2013, no amounts were borrowed from subsidiaries. As of that same date, we lent $211.3 million
to subsidiaries.
Collateral—Derivative Contracts
Under the terms of our OTC Derivative ISDA agreements, we may receive from, or deliver to,
counterparties collateral to assure that all terms of the ISDA agreements will be met with regard to the Credit
Support Annex (“CSA”). The terms of the CSA call for us to pay interest on any cash received equal to the
Federal Funds rate. To the extent cash collateral is received and delivered, it is included in Payables under
securities loan agreements, including collateral held and Short-term investments under securities loan
agreements, including collateral delivered, respectively, on the Consolidated Balance Sheets and is reinvested in
short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment
164