Voya 2013 Annual Report Download - page 5

The most notable example of this synergy was our selection in 2013 as the service provider for the ADP
TotalSource Retirement Savings program. This is a multi-employer arrangement that includes $2 billion in assets
across 2,800 plan sponsors with more than 57,000 participants. Of the $2 billion in assets associated with this
contract, Investment Management won the right to manage $1 billion, at the client’s direction, as a result of our
investment performance.
Insurance Solutions: Individual Life and Employee Benefits
Insurance Solutions is our re-positioned business and contributed 26% of our Ongoing Business Adjusted
Operating Earnings Before Income Taxes in 2013.
At Voya Financial, we believe that the most secure financial plan protects the assets that have been accumulated
over a working lifetime. This is one way in which our Insurance Solutions business provides value to our
customers and addresses their financial planning needs.
Individual Life provides term, universal, indexed universal, and variable universal life insurance products to help
our customers with their asset accumulation, protection, and distribution needs. Consistent with our plan to both
limit and manage the capital intensity of our products, we intentionally shifted our individual life business mix,
selling less term life, for example, while focusing more on sales of indexed life products.
Employee Benefits is an expanding part of our business profile. For most working Americans, employer-offered
benefits are an important part of their complete financial picture — and employers look for valued partners to
offer and administer those products. Our Employee Benefits business provides employers with solutions, such as
group life insurance and stop-loss insurance, to help them and their employees.
To address the growing trend of individuals buying supplemental financial products at the workplace, we have
invested in the expansion of Employee Benefits. In 2013, we launched the Compass voluntary product suite,
which includes three products: critical illness, accident, and hospital confinement indemnity. The entire suite of
Compass products fits well with our capital-efficient operating philosophy and also addresses a growing need in
the marketplace as employers manage rising healthcare costs.
Financial Profile: RBC Ratio and Closed Segments
Today, Voya Financial has a strengthened and substantially de-risked balance sheet that provides a solid
foundation and capital base for our businesses. Our year-end combined statutory risk-based capital ratio was
503%, which is above our target of 425%. In addition, our debt-to-capital ratio stood at 23.5%, which is below
our target of 25%.
A key element of our transformation story has been to establish a strong capital position to back our Closed
Block Variable Annuity (CBVA) segment and other closed segments. We actively manage the CBVA segment
and have implemented a hedging program designed to protect both rating agency and regulatory capital.
Our 2013 CBVA result, while varying from quarter-to-quarter, performed inline with our expectations and our
hedge program effectively protected our regulatory and rating agency capital. Several of our key risk metrics
showed steady improvement throughout the year, due in part to favorable market conditions. At the end of 2013,
the CBVA segment was backed by $4.1 billion in available resources.
3