Voya 2013 Annual Report Download - page 307

ING U.S., Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
The calculation of the GMDB, GMIB, GMAB, GMWB, and GMWBL liabilities assumes dynamic surrenders
and dynamic utilization of the guaranteed living benefit feature.
The liabilities for UL and VUL contracts, as well as variable annuity contracts containing guaranteed minimum
death and living benefits, are recorded in separate account liabilities as follows as of December 31, 2013 and
2012. The separate account liabilities may include more than one type of guarantee. These liabilities are subject
to the requirements for additional reserve liabilities under ASC Topic 944, which are recorded on the
Consolidated Balance Sheets in Future policy benefits and Contract owner account balances. The paid and
incurred amounts were as follows for the years ended December 31, 2013, 2012 and 2011:
Variable Life
and Universal
Life GMDB
GMAB/
GMWB GMIB GMWBL
Stabilizer
and
MCGs(1)
Separate account liability at
December 31, 2013 ............ $ 563.1 $44,239.7 $ 940.6 $15,894.1 $16,516.8 $36,858.1
Separate account liability at
December 31, 2012 ............ $ 517.4 $41,932.5 $1,027.3 $14,881.3 $15,587.8 $34,150.7
Additional liability balance:
Balance at January 1, 2011 ..... $1,230.5 $ 378.4 $ 85.5 $ 769.3 $ 414.8 $ 3.0
Incurred guaranteed
benefits .............. 589.6 258.7 44.8 586.3 1,729.2 218.0
Paid guaranteed benefits . . (312.9) (106.8) (2.1) (65.4) — —
Balance at December 31,
2011 .................... 1,507.2 530.3 128.2 1,290.2 2,144.0 221.0
Incurred guaranteed
benefits .............. 512.6 89.2 (42.7) (5.4) (193.5) (119.0)
Paid guaranteed benefits . . (348.6) (118.8) (0.6) (38.7) — —
Balance at December 31,
2012 .................... 1,671.2 500.7 84.9 1,246.1 1,950.5 102.0
Incurred guaranteed
benefits .............. 442.5 (59.5) (52.7) (144.6) (1,073.3) (102.0)
Paid guaranteed benefits . . (369.2) (90.5) (0.5) (32.1) — —
Balance at December 31,
2013 .................... $1,744.5 $ 350.7 $ 31.7 $ 1,069.4 $ 877.2 $ —
(1) The Separate account liability at December 31, 2013 and 2012 includes $28.7 billion and $25.9 billion,
respectively, of externally managed assets, which are not reported on the Company’s Consolidated Balance
Sheets.
The Company also calculates additional liabilities for FIA contracts with guaranteed withdrawal benefits. The
additional liability represents the expected value of these benefits in excess of the projected account balance, and
is accreted based on assessments over the accumulation period of the contract. The additional liability for FIA
guaranteed withdrawal benefits was $35.1 and $22.8, as of December 31, 2013 and 2012, respectively. The
additional liability is recorded in Future policy benefits on the Consolidated Balance Sheets.
The net amount at risk for the GMDB, GMAB and GMWB benefits is equal to the guaranteed value of these
benefits in excess of the account values.
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