Voya 2013 Annual Report Download - page 474

Fee and Revenue Sharing
Some of our asset management subsidiaries serve as co-managers or co-advisors for funds alongside other
non-U.S. asset management subsidiaries of ING Group. For the services rendered as co-managers, we have
agreed to share fees or revenues with our related party co-manager or co-advisor. Similarly, when asset
management subsidiaries of ING Group serve as sub-advisors for our funds, we have entered into revenue
sharing agreements, in which we receive a portion of the fees earned by the sub-advisor in return for hiring them
as sub-advisor.
Non-Advisory Services
Several of our asset management subsidiaries have also provided and continue to provide non-advisory
services to funds and asset management subsidiaries of ING Group. These services generally include, but are not
limited to, providing research materials and recommendations, trading services, legal and tax advice, sales
support services, compliance support and back office and administrative services.
Distribution and Solicitation Agreements
Several of our asset management subsidiaries are parties to distribution and/or solicitation agreements with
non-U.S. asset management subsidiaries of ING Group through which these non-U.S. asset management
subsidiaries of ING Group may distribute or sell our asset management products or strategies outside of the
United States. Likewise, our U.S. asset management subsidiaries may distribute or sell products or strategies of
ING Group’s non-U.S. asset management subsidiaries to U.S.-based clients and investors.
Reinsurance Agreements
Three of our insurance subsidiaries, RLI, ReliaStar Life Insurance Company of New York, and SLD, are
parties to life reinsurance treaties with ING Re (Netherlands) N.V. (“ING Re”), a wholly owned reinsurance
subsidiary of ING Group. These reinsurance treaties are all either yearly or monthly renewable term reinsurance
treaties, and all of these treaties were closed for new business as of December 31, 2010. Although there are no
new additional risks ceded under these agreements, the reinsurance of the risks already ceded will continue until
the underlying policies lapse. In connection with these reinsurance treaties, our subsidiaries together paid
premiums to ING Re of $10.4 million during the year ended December 31, 2013.
Transfer Pricing Agreement
Prior to our initial public offering we were a party to a transfer pricing agreement between the Company and
ING Group, pursuant to which ING Group charged us certain specified amounts for various services provided by
the ING Group head office. These services included tax services, financial controls, acquisitions and divestments,
vendor management, capital management general administrative services, human resources, corporate
communications, and audit services among others. The total charges for the services provided pursuant to the
transfer pricing agreement are a part of the administrative overhead allocation described below. We no longer
make payments to ING Group under this agreement.
Compensation and Other Arrangements Concerning Employees
We have maintained human resources-related arrangements with ING Group in three primary areas:
(i) long-term compensation for our employees, (ii) expatriate relationships and (iii) provision of services to
employees of our former affiliates in Latin America (discussed below).
Incentive Compensation
Our employees have participated in certain of ING Group’s long-term incentive compensation programs.
Following our initial public offering, this participation is governed by the Equity Administration Agreement. See
“—Continuing Relationship with ING Group—Equity Administration Agreement.” We pay ING Group a
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