Voya 2013 Annual Report Download - page 303

ING U.S., Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized
capital gains (losses). In many cases, the fair value estimates cannot be substantiated by comparison to
independent markets, nor can the disclosed value be realized in immediate settlement of the instruments. In
evaluating the Company’s management of interest rate, price and liquidity risks, the fair values of all assets and
liabilities should be taken into consideration, not only those presented above.
5. Deferred Policy Acquisition Costs and Value of Business Acquired
Activity within DAC and VOBA was as follows for the years ended December 31, 2013, 2012 and 2011:
DAC VOBA Total
Balance at January 1, 2011 ...................... $3,810.6 $1,227.7 $ 5,038.3
Deferrals of commissions and expenses ........ 633.6 18.7 652.3
Amortization:
Amortization ......................... (459.5) (265.8) (725.3)
Interest accrued(1) ...................... 238.2 100.1 338.3
Net amortization included in Consolidated
Statements of Operations .................. (221.3) (165.7) (387.0)
Change in unrealized capital gains/losses on
available-for-sale securities ................ (556.0) (395.3) (951.3)
Balance at December 31, 2011 ................... 3,666.9 685.4 4,352.3
Deferrals of commissions and expenses ........ 590.3 17.3 607.6
Amortization:
Amortization ......................... (846.4) (210.3) (1,056.7)
Interest accrued(1) ...................... 243.6 90.8 334.4
Net amortization included in Consolidated
Statements of Operations .................. (602.8) (119.5) (722.3)
Change in unrealized capital gains/losses on
available-for-sale securities ................ (432.8) (148.5) (581.3)
Balance at December 31, 2012 ................... 3,221.6 434.7 3,656.3
Deferrals of commissions and expenses ........ 395.8 13.7 409.5
Amortization:
Amortization ......................... (669.0) (98.1) (767.1)
Interest accrued(1) ...................... 233.9 90.4 324.3
Net amortization included in Consolidated
Statements of Operations .................. (435.1) (7.7) (442.8)
Change in unrealized capital gains/losses on
available-for-sale securities ................ 1,133.8 594.8 1,728.6
Balance at December 31, 2013 ................... $4,316.1 $1,035.5 $ 5,351.6
(1) Interest accrued at the following rates for DAC: 0.8% to 7.4% during 2013, 1.5% to 7.4% during 2012, and
2.0% to 8.0% during 2011. Interest accrued at the following rates for VOBA: 3.0% to 7.5% during 2013,
2.0% to 7.4% during 2012, and 3.0% to 7.0% during 2011.
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