Voya 2013 Annual Report Download - page 299

ING U.S., Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
“in the money.” The table below shows an analysis of policy account values according to whether they are
in or out of the surrender charge period and to whether they are “in the money” or “out of the money” as of
December 31, 2012 (account value amounts are in $ billions):
GMAB GMWB/GMWBL
Moneyness
Account
Value Lapse Range
Account
Value Lapse Range
During Surrender Charge
Period ................... IntheMoney** $— * 0.08% to 8.2% $8.8 0.08% to 5.8%
Out of the Money — * 0.41% to 12% 0.9 0.35% to 12%
After Surrender Charge
Period ................... IntheMoney** $— * 2.4% to 22% $6.2 1.5% to 17%
Out of the Money 0.1 12% to 31% 0.6 6.9% to 32%
* Less than $0.1.
** The low end of the range corresponds to policies that are highly “in the money.” The high end of the
range corresponds to the policies that are close to zero in terms of “in the moneyness.”
(4) Stabilizer contracts with recordkeeping agreements have a different range of lapse and policyholder deposit
assumptions from Stabilizer (Investment only) and MCG contracts as shown below:
Percentage of
Plans
Overall
Range of
Lapse Rates
Range of
Lapse Rates
for 85% of
Plans
Overall
Range of
Policyholder
Deposits
Range of
Policyholder
Deposits for 85%
of Plans
Stabilizer (Investment Only) and
MCG Contracts ............... 87% 0-30% 0-15% 0-55% 0-20%
Stabilizer with
Recordkeeping Agreements ..... 13% 0-55% 0-25% 0-60% 0-30%
Aggregate of all plans ............ 100% 0-55% 0-25% 0-60% 0-30%
(5) Measured as a percentage of assets under management or assets under administration.
(6) The mortality rate is based on the Annuity 2000 Basic table with mortality improvements.
Generally, the following will cause an increase (decrease) in the GMAB, GMWB and GMWBL embedded
derivative fair value liabilities:
• An increase (decrease) in long-term equity implied volatility
• An increase (decrease) in interest rate implied volatility
• An increase (decrease) in equity-interest rate correlations
• A decrease (increase) in nonperformance risk
• A decrease (increase) in mortality
• An increase (decrease) in benefit utilization
• A decrease (increase) in lapses
Changes in fund correlations may increase or decrease the fair value depending on the direction of the movement
and the mix of funds. Changes in partial withdrawals may increase or decrease the fair value depending on the
timing and magnitude of withdrawals.
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