Voya 2013 Annual Report Download - page 400

ING U.S., Inc.
Schedule II
Notes to Condensed Financial Information of Parent
(Dollar amounts in millions, unless otherwise stated)
1. Basis of Presentation
The financial information of ING U.S., Inc. should be read in conjunction with the consolidated financial
statements of ING U.S., Inc. and its subsidiaries (collectively the “Company”) and the notes thereto (the
“Consolidated Financial Statements”).
ING Groep N.V. (“ING Group” or “ING”), the ultimate parent company, is a global financial services holding
company based in The Netherlands. In 2009, ING, with American Depository Shares listed on the New York
Stock Exchange, announced the anticipated separation of its global banking and insurance businesses, including
the divestiture of the Company. On May 2, 2013, the common stock of ING U.S., Inc. began trading on the New
York Stock Exchange under the symbol “VOYA.” On May 7, 2013 and May 31, 2013, ING U.S., Inc. completed
its initial public offering (“IPO”) of common stock, including the issuance and sale by ING U.S., Inc. of
30,769,230 shares of common stock and the sale by ING Insurance International B.V. (“ING International”), an
indirect, wholly owned subsidiary of ING Group and previously the sole stockholder of ING U.S., Inc., of
44,201,773 shares of outstanding common stock of ING U.S., Inc. (collectively, “the IPO”). On September 30,
2013, ING International transferred all of its shares of ING U.S., Inc. common stock to ING Group.
On October 29, 2013, ING Group completed a sale of 37,950,000 shares of common stock of ING U.S., Inc. in a
registered public offering (“Secondary Offering”), reducing ING Group’s ownership in the Company to 57%.
The accompanying financial information reflects the results of operations, financial position and cash flows for
ING U.S., Inc. The financial information is in conformity with accounting principles generally accepted in the
United States and require management to adopt accounting policies and make certain estimates and assumptions.
Investments in subsidiaries are accounted for using the equity method of accounting.
Certain immaterial reclassifications have been made to prior year financial information to conform to the current
year classifications.
2. Loans to Subsidiaries
ING U.S., Inc. maintains reciprocal loan agreements with subsidiaries to facilitate unanticipated short-term cash
requirements that arise in the ordinary course of business. Under these loan agreements, the limitations on
borrowing are based on the nature of the subsidiary’s operations. For reciprocal loan agreements with insurance
companies, the amounts that either party may borrow from the other under the agreement vary, depending on the
state of domicile, and are equal to 2%-5% of the insurance subsidiary’s statutory net admitted assets, excluding
separate accounts, as of the preceding December 31. For reciprocal loan agreements with non-insurance
subsidiaries, the limits vary and are set by management based on an assessment of the financial position of the
subsidiary. During 2012 and 2013, interest on any borrowing by a subsidiary was charged at the rate of ING U.S.,
Inc.’s cost of funds for the interest period, plus 0.15%. Effective January 2014, interest on any borrowing by a
subsidiary under a reciprocal loan agreement is charged at a rate based on the prevailing market rate for similar
third-party borrowing or securities. Borrowings by ING Alternative Asset Management LLC (“IAAM”) occur to
enable IAAM to make capital contributions to the ING Multi-Strategy Opportunity Fund LLC (“the fund”), the
fund that it manages. The applicable variable interest rate is equal to the rate of return on capital invested in the
fund, which may be negative over any given period.
390