Voya 2013 Annual Report Download - page 311

ING U.S., Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
Effective January 1, 2009, the Company executed a Master Asset Purchase Agreement (the “MPA”) with respect
to its individual reinsurance business with Scottish Re Group Limited, Scottish Holdings, Inc., Scottish Re
(U.S.), Inc., Scottish Re Life (Bermuda) Limited and Scottish Re (Dublin) Limited (collectively, “Scottish Re”)
and Hannover Re. Pursuant to the MPA, the Company recaptured business then-reinsured to Scottish Re, and
immediately ceded 100% of such business to Hannover Re on a modified coinsurance, funds withheld, and
coinsurance basis, which resulted in no gain or loss. The Company will remain obligated to maintain collateral
for certain reserve requirements of the business transferred from the Company to Hannover Re for the duration of
such reserve requirements, until the underlying reinsurance contracts are novated to Hannover Re, or Hannover
Re puts into place its own collateral for such reserve requirements. Effective October 1, 2013, on a 32% quota
share basis, the Company recaptured a portion of the business from Hannover Re (Ireland) Limited (“HLRI”) and
retroceded the recaptured business to Hannover Life Reassurance Company of America (“HLRUS”). As a result,
the Company’s collateral requirement was reduced to $2.3 billion as of December 31, 2013. Of the Reinsurance
recoverable on the Consolidated Balance Sheets, $2.4 billion and $2.7 billion as of December 31, 2013 and 2012,
respectively, is related to the reinsurance recoverable from Hannover Re under this reinsurance agreement.
9. Goodwill and Other Intangible Assets
Goodwill
Goodwill is the excess of cost over the estimated fair value of net assets acquired. As of December 31, 2013 and
2012, the Company had $31.1 in goodwill allocated to the Investment Management segment. There is no
accumulated impairment balance associated with this goodwill. The Company performs the Step 1 goodwill
impairment analysis annually as of October 1 and more frequently if facts and circumstances indicate that
goodwill may be impaired.
Other Intangible Assets
The Company has the following assets included in Other intangible assets, which have been capitalized and are
amortized over their expected economic lives.
The Company recorded Value of Management Contracts (“VMCR”) from the acquisition of ReliaStar Life
Insurance Company in 2000 that represent the right by the mutual fund advisor company to manage the assets
that are held in the mutual funds business.
Customer relationship lists from the acquisition of CitiStreet, LLC in 2008 represent Value of Customer
Relationship Acquired (“VOCRA”) for contracts with customers that were in place at the time of the acquisition.
In addition, computer software that has been purchased or developed internally for own use is stated at cost, less
amortization and any impairment losses. Amortization is calculated on a straight-line basis over its useful life.
When assessing potential impairment, the unamortized capitalized costs are compared with the net realizable
value of the computer software. The amount by which the unamortized capitalized costs exceed the net realizable
value is written off.
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