Voya 2013 Annual Report Download - page 19

and sustaining a secure retirement through employer-sponsored plans and services, as well as through individual
account rollover plans and comprehensive financial product offerings and advisory services. Our Annuities
segment provides fixed, indexed and payout annuities and mutual fund custodial accounts for pre-retirement
wealth accumulation and post-retirement income management, sold through multiple channels.
Retirement
Our Retirement segment is well positioned in the marketplace, with our industry-leading Institutional
Retirement Plans business and our growing Individual Markets business. The two businesses combined had
$343.0 billion of AUM and AUA as of December 31, 2013, of which $60.8 billion were in proprietary assets.
Our Institutional Retirement Plans business offers tax-deferred employer-sponsored retirement savings plan
and administrative services to small-mid corporations, large corporations, public and private school systems,
higher education institutions, state and local governments, hospitals and healthcare facilities and not-for-profit
organizations. This broad-based institutional business crosses many sectors of the economy, which provides
diversification that helps insulate us from downturns in particular industries.In the defined contribution market,
we provide services to approximately 47,000 plan sponsors covering more than 5 million plan participants in
corporate, education, healthcare and government markets as of December 31, 2013. As of the latest Pensions and
Investments survey published in March 2013, we rank second in the U.S. defined contribution plan market by
number of record kept plan sponsors, third by number of plan participants served, and fifth by assets under
management and administration as of September 30, 2013.
Our Individual Markets business, which focuses on the rapidly expanding retiree market as well as on
individuals and plan participants, offers retail financial products and comprehensive advice services to help
individuals manage their retirement savings and income needs. While AUM and AUA for our Individual Markets
business were $3.0 billion as of December 31, 2013, it is a key area of future growth for our Retirement segment.
Our Retirement segment earns revenue principally from asset and participant-based advisory and record-
keeping fees. Retirement generated operating earnings before income taxes of $595.8 million for the year ended
December 31, 2013. Our Investment Management business also earns arm’s-length market-based fees from the
management of the general account and mutual fund assets supporting Institutional Retirement Plans and
Individual Markets rollover products.Distribution of Investment Management products and services using the
Retirement segment continues to present a growth opportunity for our Retirement and Investment Management
segments that we are actively pursuing.
We will continue to focus on growing our retirement platform by driving increases in our full-service
Institutional Retirement Plans business, particularly in the small-mid corporate and education markets, and by
further developing our Individual Markets business with a particular focus on aggressively cross-selling products
and services to our Institutional Retirement Plan participants. We will also continue to place a strong emphasis
on capital and cost management, with a focus on optimizing our distribution platform and achieving a diversified
retirement product mix. In addition, we continue to promote targeted plan monitoring and relationship building to
further improve client retention. We believe these initiatives will increase segment revenues and profitability.
An important element of our Retirement strategy is to leverage the extensive customer base to which we
have access through our Institutional Retirement Plans business in order to grow our Individual Markets and
Investment Management businesses. This opportunity is especially attractive in light of the significant portion of
our Institutional Retirement Plans business for which we provide recordkeeping-only services, with such plans
encompassing nearly 3 million plan participants as of December 31, 2013. We are therefore focused on building
long-term relationships with our plan participants, especially when initiated through service touch points such as
plan enrollments and rollovers, which will go beyond their participation in our Institutional Retirement Plans and
enable us to offer them individual retirement and investment management solutions both during and after the
term of their plan participation.
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