Voya 2013 Annual Report Download - page 485

Our Closed Block Variable Annuity (CBVA) segment is managed to focus on protecting regulatory and rating
agency capital rather than GAAP earnings and, therefore, we do not include its results of operations within
operating earnings before income taxes. When we present the adjustments to Income (loss) before income taxes
on a consolidated basis, each adjustment excludes the portions attributable to our CBVA segment.
The most directly comparable GAAP measure to Ongoing Business Adjusted Operating Earnings Before Income
Taxes is income (loss) before income taxes. For a reconciliation, see the table below.
Ongoing Business Adjusted Operating Return on Equity (ROE)
We report Ongoing Business Adjusted Operating ROE because we believe this measure is a useful indicator of
how effectively we use capital resources allocated to our Ongoing Business. When making these calculations, we
use an assumed income tax rate of 35%. The most directly comparable GAAP measure to adjusted operating
ROE is return on equity. For a reconciliation, see the tables below.
Voya Financial
Calculation and Reconciliation of Return on Equity and Return on Capital
($ in millions, unless otherwise indicated)
Year ended
December 31, 2013
GAAP Return on Equity
Net income (loss) available to Voya Financial, Inc.’s common shareholders ........ $ 600.5
Voya Financial, Inc. shareholders’ equity: beginning of period ...................... $13,874.9
Voya Financial, Inc. shareholders’ equity: end of period ........................ $13,272.2
Voya Financial, Inc. shareholders’ equity: average for period ....................... $13,573.6
GAAP Return on Equity ................................................... 4.4%
Ongoing Business Adjusted Operating Return on Capital and Adjusted Operating
Return on Equity
Ongoing Business adjusted operating earnings before income taxes ............... $ 1,211.8
Income taxes on adjusted operating earnings (based on an assumed tax rate of 35%) ..... (424.2)
Ongoing Business adjusted operating earnings after income taxes ................... 787.6
Interest expense after-tax1................................................... (79.9)
Ongoing Business adjusted operating earnings after income taxes and interest
expense ............................................................... $ 707.7
Beginning of period capital for Ongoing Business ................................ $ 9,057.0
End of period capital for Ongoing Business ................................... 9,216.0
Average capital for Ongoing Business ......................................... 9,137.0
Average debt (based on 25% debt-to-capital ratio) ................................ (2,284.3)
Average equity for Ongoing Business .......................................... $ 6,852.7
Adjusted Operating Return on Capital for Ongoing Business .................... 8.6%
Adjusted Operating Return on Equity for Ongoing Business1.................... 10.3%