Voya 2013 Annual Report Download - page 322

ING U.S., Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
(1) Iowa Insurance Division approved ING USA’s 2013 and 2012 return of capital distributions.
(2) Connecticut Insurance Department approved ILIAC’s $174.0 extraordinary dividend as part of the May 8,
2013 extraordinary distribution. In December 2013, ILIAC paid a $90.0 ordinary dividend. In 2012, ILIAC
paid $340.0 in distributions, which included a $190.0 ordinary dividend.
(3) Colorado Insurance Division approved SLD’s 2013 and 2012 return of capital distributions.
(4) Minnesota Insurance Division approved RLI’s 2013 distribution and 2012 dividend.
In March and April 2013, in response to requests made in 2012 and refreshed in 2013, ING U.S., Inc.’s Principal
Insurance Subsidiaries which are domiciled in Colorado, Connecticut, Iowa and Minnesota received approvals or
notices of non-objection, as the case may be, from their respective domiciliary insurance regulators to make
extraordinary distributions to ING U.S., Inc. or Lion Connecticut Holdings Inc. (“Lion Holdings”), a wholly
owned subsidiary of ING U.S., Inc., in the aggregate amount of $1.4 billion, contingent upon completion of the
IPO and the use of the extraordinary distribution funds solely for Company operations. The approved
distributions of $1.4 billion were made on May 8, 2013.
In addition, on May 8, 2013, the Principal Insurance Subsidiaries domiciled in Colorado, Iowa and Minnesota
each reset, on a one-time basis, their respective negative unassigned funds account as of December 31, 2012 (as
reported in their respective 2012 statutory annual statements) to zero (with an offsetting reduction in gross paid-
in capital and contributed surplus). These resets were made pursuant to permitted practices in accordance with
statutory accounting practices granted by their respective domiciliary insurance regulators. These permitted
practices have no impact on total capital and surplus of these insurance subsidiaries and were recorded in each of
their respective second quarter 2013 statutory financial statements. See “Item 7. Management’s Discussion and
Analysis of Financial Condition and Results of Operations —Liquidity and Capital Resources—Restrictions on
Dividends and Returns of Capital from Subsidiaries.”
In June 2012, the Principal Insurance Subsidiaries each received regulatory approvals or notices of non-objection
from their respective domiciliary insurance regulators to make distributions to ING U.S., Inc. or Lion Holdings in
the aggregate amount of $800.0. Such distributions were made on June 26, 2012. These domiciliary state
regulatory actions have been taken by the relevant domiciliary state insurance regulators in response to requests
that stated the intended use of the proceeds was to provide $500.0 to the captive reinsurance subsidiary, Security
Life of Denver International Limited (“SLDI”), and retain the balance at ING U.S., Inc. for general corporate
purposes. On June 26, 2012, ING U.S., Inc. made a capital contribution to SLDI in the amount of $400.0.
Additionally, ING U.S., Inc. repaid $100.0 of intercompany loan from a subsidiary of SLDI and, on June 28,
2012 the proceeds of this loan repayment were used to pay a dividend to SLDI.
Captive Reinsurance Subsidiaries
ING U.S., Inc.’s special purpose life reinsurance captive insurance company subsidiaries domiciled in Missouri
(collectively referred to as the “captive reinsurance subsidiaries”) provide reinsurance to the Company’s
insurance subsidiaries in order to facilitate the financing of statutory reserves including those associated with
Regulation XXX or AG38. A portion of this reinsurance was, until January 1, 2014, also provided by a special
purpose life reinsurance captive insurance subsidiary domiciled in South Carolina and was novated to one of the
captive reinsurance subsidiaries on that date. Each of the captive reinsurance subsidiaries in operation as of
December 31, 2013 is a wholly owned direct or indirect subsidiary of one of the Principal Insurance Subsidiaries.
Each of the captive reinsurance subsidiaries is subject to specific minimum capital requirements set forth in the
insurance statutes of the State of Missouri, its state of domicile and is required to prepare statutory financial
statements in accordance with statutory accounting practices prescribed in the insurance statutes or permitted by
the Insurance Department of the State of Missouri, its state of domicile. There are no prescribed practices
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