Voya 2013 Annual Report Download - page 24

Our full-service Institutional Retirement Plans business competes primarily based on pricing, the breadth of
our service and investment offerings, technical/regulatory expertise, industry experience, local enrollment and
financial planning support, investment performance and our ability to offer industry tailored product features to
meet the retirement income needs of our clients. Regarding the large plan recordkeeping only business, we have
seen consolidation among industry providers in recent years seeking to increase scale, improve cost efficiencies
and enter new market segments. However, the market remains competitive with few dominant players. As a
result, we emphasize our strong sponsor relationships, flexible value-added services, technical and regulatory
expertise, and participant retirement readiness suite of products and services to compete in this segment of the
institutional market. Finally, we have seen new insurance company competitors enter the stable value space
because demand from participant and plan sponsors remains strong for these products. Our long standing
experience in the retirement market underscored by strong stable value expertise allows us to effectively compete
against existing and new providers.
Seasonality
We typically experience seasonality in our Retirement segment results.
• The first quarters tend to have the highest level of recurring deposits in Corporate Markets as
participant contributions increase from the receipt of annual bonus award payments or annual lump
sum matches and profit sharing contributions made by many employers. However, Corporate Market
withdrawals also tend to increase in the first quarters as departing sponsors change providers at the start
of a new year.
• The fourth quarters tend to have the highest level of single/transfer deposits due to new Corporate
Market plan sales as sponsors transfer from other providers when contracts expire at the fiscal or
calendar year-end. However, recurring deposits in the Corporate Market may be lower as higher paid
participants scale back or halt their contributions upon reaching the annual maximums allowed for the
year. Finally, Corporate Market withdrawals tend to increase in the fourth quarter, like the first quarter,
due to departing sponsors.
Individual Markets
Products and Services
Our Individual Markets business offers simple, easy-to-understand products, along with holistic advice and
guidance delivered through affiliated brokers and by online capabilities. Our current investment solutions include
advisory programs, mutual fund custodial IRAs, fixed annuities and brokerage accounts.
The primary focus of our Retirement segment is to serve over five million defined contribution plan
participants (as of December 31, 2013). We also seek to capitalize on our access to these individuals through our
Institutional Retirement Plans business by developing long-term relationships and providing individual retail
solutions. We believe that our ability to offer a seamless and integrated approach to an individual customer’s
entire financial picture, while saving for or living in retirement, presents a compelling reason for our Institutional
Retirement Plans participants to use us as their principal investment and retirement plan provider. Through our
broad range of advisory programs, our financial advisers have access to a wide set of solutions for our customers
for building investment portfolios, including stocks, bonds and mutual funds, as well as managed accounts. These
experienced advisers work with customers to select a program to meet their financial needs that takes into
consideration each individual’s time horizon, goals and attitudes towards risk.
Markets and Advisory Services
Individual Markets advisory services and product solutions are primarily sold through our affiliated
distribution group of nearly 2,400 representatives as well as online via websites. The affiliated representatives
help provide cohesiveness between our Institutional Retirement Plans and Individual Markets businesses and
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