Voya 2013 Annual Report Download - page 31

December 31, 2013, Investment Management had approximately 250 institutional clients, representing
$54.9 billion of AUM primarily in separately managed accounts, collective investment trusts and
structured vehicles.
Investment Management manages a variety of variable portfolios and mutual funds which are sold through
our Retirement Solutions and Insurance Solutions businesses. As of December 31, 2013, total AUM from these
channels was $53.9 billion with the majority of the assets gathered through our Retirement segment.
Competition
Investment Management competes with a wide array of asset managers and institutions in the highly
fragmented U.S. investment management industry. In our key market segments, Investment Management
competes on, among other things, the basis of investment performance, investment philosophy and process,
product features and structure and client service. Our principal competitors in the Investment Management
business include insurance-owned asset managers such as Principal Global Investors (Principal Financial Group),
Prudential and Ameriprise, bank-owned asset managers such as J.P. Morgan Asset Management, as well as
“pure-play” asset managers including PIMCO, Invesco, Wellington, Legg Mason, T. Rowe Price, Franklin
Templeton and Fidelity.
Seasonality
We typically experience seasonality in our Investment Management segment results.
• In the first quarters, limited carried interest is generally recorded from investments in private
equity.
• In the fourth quarters, our performance fees recorded based on current contracts tend to be higher
than other quarters. This could change in the future with new business contracts or over/under
performance of these contracts against the hurdle rate in any given quarter.
Insurance Solutions
Our Insurance Solutions business comprises two financial reporting segments: Individual Life and
Employee Benefits. Our strategy is based on a broad and effective distribution model, fueled by a manufacturing
capability that provides a stream of competitive product solutions, all supported by an efficient operations and
underwriting model.
Individual Life
Our Individual Life segment has a broad independent distribution footprint and manufactures a wide range
of competitive products, from low-cost term life insurance designed to serve the middle market to fixed, indexed
and variable universal life insurance products targeted to more affluent markets. We have re-priced certain
products and will continue to monitor changes to the product portfolio to align with market conditions. As of
December 31, 2013, we were the thirteenth largest writer of term life in the United States. As of December 31,
2013, we were also the twenty-fourth largest writer of universal life in the United States based on premiums sold
or written. Our strong market positions have allowed us to properly scale our business to achieve greater
profitability. Our larger term operation is a crucial part of achieving this scale and can be adjusted through
pricing changes as necessary. As of December 31, 2013, Individual Life’s in-force book comprised over
1.3 million policies and gross premiums of almost $2.0 billion.
The Individual Life segment generates revenue on its products from premiums, investment income, expense
load, mortality charges and other policy charges, along with some asset-based fees. Profits are driven by the
spread between investment income earned and interest credited to policyholders, plus the difference between
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