Voya 2013 Annual Report Download - page 320

ING U.S., Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
12. Insurance Subsidiaries
Principal Insurance Subsidiaries Statutory Equity and Income
Each of ING U.S., Inc.’s four principal insurance subsidiaries (the “Principal Insurance Subsidiaries”) is subject
to minimum risk-based capital (“RBC”) requirements established by the insurance departments of their
respective states of domicile. The formula for determining the amount of RBC specify various weighting factors
that are applied to financial balances or various levels of activity based on the perceived degree of risk.
Regulatory compliance is determined by a ratio of total adjusted capital (“TAC”), as defined by the National
Association of Insurance Commissioners (“NAIC”), to authorized control level RBC, as defined by the NAIC.
Each of the Company’s Principal Insurance Subsidiaries exceeded the minimum RBC requirements that would
require any regulatory or corrective action for all periods presented herein.
The Company’s Principal Insurance Subsidiaries are each required to prepare statutory financial statements in
accordance with statutory accounting practices prescribed or permitted by the insurance department of its
respective state of domicile. Such statutory accounting practices primarily differ from U.S. GAAP by charging
policy acquisition costs to expense as incurred, establishing future policy benefit liabilities and contract owner
account balances using different actuarial assumptions as well as valuing investments and certain assets and
accounting for deferred taxes on a different basis. Certain assets that are not admitted under statutory accounting
principles are charged directly to surplus. Depending on the regulations of the insurance department of an
insurance company’s state of domicile, the entire amount or a portion of an insurance company’s asset balance
can be nonadmitted based on the specific rules regarding admissibility. The Principal Insurance Subsidiaries have
no material prescribed or permitted practices for the years ended December 31, 2013, 2012 and 2011 that impact
total capital and surplus.
Statutory Net income (loss) for the years ended December 31, 2013, 2012 and 2011, statutory capital and surplus
for the years ended as of December 31, 2013 and 2012 and minimum capital requirements as of December 31,
2013 of the Company’s Principal Insurance Subsidiaries are as follows:
Statutory Net Income (Loss)
Statutory Capital and
Surplus
Minimum
Capital
Requirements(1)
2013 2012 2011 2013 2012 2013
Subsidiary Name (State of Domicile):
ING USA Annuity and Life Insurance
Company (“ING USA”) (IA) ........... $(55.8) $ (9.1) $386.0 $1,941.6 $2,174.1 $5.0
ING Life Insurance and Annuity Company
(“ILIAC”) (CT) ...................... 175.2 261.6 194.4 2,010.8 1,921.8 3.0
Security Life of Denver Insurance Company
(“SLD”) (CO) ....................... (0.1) (129.8) 175.2 1,034.0 1,459.9 1.5
ReliaStar Life Insurance Company (“RLI”)
(MN) .............................. 215.9 (155.3) (83.0) 1,942.5 2,278.6 4.5
(1) The insurance statutes of the respective state of domicile for the Company’s Principal Insurance
Subsidiaries set forth specific minimum capital requirements.
Insurance Subsidiaries Dividend Restrictions
The states in which the insurance subsidiaries of ING U.S., Inc. are domiciled impose certain restrictions on the
subsidiaries’ ability to pay dividends to their parent. These restrictions are based in part on the prior year’s
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