Voya 2013 Annual Report Download - page 403

ING U.S., Inc.
Schedule II
Notes to Condensed Financial Information of Parent
(Dollar amounts in millions, unless otherwise stated)
ING U.S., Inc. provided an indemnification of a limited nature, effective on December 19, 2011, in connection
with an $825.0 securities lending agreement between the KCL Master Trust (“Master Trust”) and ING Bank,
N.V. (“ING Bank”). In the event of default on the securities lending agreement by the Master Trust, ING U.S.,
Inc. was required to indemnify ING Bank for the outstanding obligations of the Master Trust. This agreement and
the related indemnification were entered into to obtain collateral to support ING U.S., Inc.’s reinsurance
obligations. The securities lending agreement and accordingly, ING U.S. Inc.’s indemnification obligations were
cancelled in November 2013.
ING U.S., Inc. provides various indemnifications of securities lending agreements between the Master Trust and
third-party banks. In the event of default on the securities lending agreements by the Master Trust, ING U.S., Inc.
is required to indemnify the third-party banks for the outstanding obligations of the Master Trust. These
agreements and the related indemnifications amounted to $1.5 billion and $2.0 billion as of December 31, 2013
and 2012, respectively, and were entered into to obtain collateral to support ING U.S., Inc.’s reinsurance
obligations and are effective for the duration that the collateral remains outstanding.
The following surplus maintenance agreements associated with our captive reinsurance subsidiaries and special
purpose life reinsurance captive insurance company subsidiary domiciled in South Carolina are effective for the
duration of the in force policies subject to the related reinsurance transactions:
On December 31, 2010, ING U.S., Inc. entered into a surplus maintenance agreement with Roaring River II,
LLC (“Roaring River II”), a wholly owned subsidiary of ING U.S., Inc., whereby ING U.S., Inc. agrees to
cause Roaring River II to maintain Adjusted Capital and Surplus at 250% of its Company Action Level Risk
Based Capital. The Roaring River II agreement includes a provision for capital contributions to be made in
the event certain expense thresholds are exceeded by Roaring River II.
On September 6, 2012, ING U.S., Inc. entered into a reimbursement agreement with a third-party bank for
its wholly owned subsidiary, Roaring River III, LLC (“Roaring River III”). At inception, the reimbursement
agreement requires ING U.S., Inc. to cause $165.0 of capital to be maintained in Roaring River III Holding
LLC, the intermediate holding company of Roaring River III, and $60.0 of capital to be maintained in
Roaring River III for a total of $225.0. This amount will vary over time based on a percentage of Roaring
River III in force life insurance.
On January 1, 2014, ING U.S., Inc. entered into a reimbursement agreement with a third-party bank for its
wholly owned subsidiary, Roaring River IV, LLC (“Roaring River IV”). At inception, the reimbursement
agreement requires ING U.S., Inc. to cause no less than $78.6 of capital to be maintained in Roaring River
IV Holding LLC, the intermediate holding company of Roaring River IV and Roaring River III Holding
LLC, and $45.0 of capital to be maintained in Roaring River IV for a total of $123.6. This amount is
exclusive of any capital held for Roaring River III Holding LLC and will vary over time based on a
percentage of Roaring River IV in force life insurance.
ING U.S., Inc. entered into surplus maintenance agreements with Whisperingwind I, LLC (“WWI”),
Whisperingwind II, LLC (“WWII”) and Whisperingwind III, LLC (“WWIII”), special purpose life
reinsurance captive insurance subsidiaries, on September 30, 2010, November 1, 2007 and June 28, 2007,
respectively. The surplus maintenance agreements for WWI and WWII were terminated during 2012 prior
to the dissolution of the subsidiaries.
On June 28, 2007, the ING U.S., Inc. entered into a surplus maintenance agreement whereby ING U.S., Inc.
agreed to cause WWIII to maintain Adjusted Capital and Surplus at 200% of its Company Action Level
Risk Based Capital.
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