Voya 2013 Annual Report Download - page 279

ING U.S., Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
Net Investment Income
The following table summarizes Net investment income for the periods indicated:
Years Ended December 31,
2013 2012 2011
Fixed maturities $3,952.5 $4,184.0 $4,402.1
Equity securities, available-for-sale 10.0 17.7 27.3
Mortgage loans on real estate 483.9 500.0 500.0
Policy loans 118.3 121.5 125.6
Short-term investments and cash equivalents 3.5 5.4 6.7
Other 125.3(1) (123.3)(2) (80.8)
Gross investment income 4,693.5 4,705.3 4,980.9
Less: investment expenses 4.5 7.4 12.1
Net investment income $4,689.0 $4,697.9 $4,968.8
(1) Includes $143.8 in conjunction with a bankruptcy settlement for a prime broker who held assets on behalf of
a limited partnership previously written down to realizable value.
(2) Includes a pre-tax loss of $91.9 in conjunction with a sale of certain private equity limited partnership
investments. See Note 19. Consolidated Investment Entities-Private Equity Funds and Single Strategy
Hedge Funds (Limited Partnership) to these Consolidated Financial Statements for more information.
As of December 31, 2013, the Company did not have any investments in fixed maturities that did not produce net
investment income. As of December 31, 2012, the Company had $0.3 of investments in fixed maturities that did
not produce net investment income. Fixed maturities are moved to a non-accrual status when the investment
defaults.
Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to
amortization of premiums and accretion of discounts. Such interest income is recorded in Net investment income
in the Consolidated Statements of Operations.
Net Realized Capital Gains (Losses)
Net realized capital gains (losses) are comprised of the difference between the amortized cost of investments and
proceeds from sale and redemption, as well as losses incurred due to the credit-related and intent-related other-
than-temporary impairment of investments. Realized investment gains and losses are also primarily generated
from changes in fair value of embedded derivatives within product guarantees and fixed maturities, changes in
fair value of fixed maturities recorded at FVO and changes in fair value including accruals on derivative
instruments, except for effective cash flow hedges. The cost of the investments on disposal is generally
determined based on first-in-first-out (“FIFO”) methodology.
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