Voya 2013 Annual Report Download - page 57

dividends or other distribution is conditioned upon the retention, at the time of each payment, of capital or
surplus equal to or in excess of amounts specified by, or determined in accordance with formulas approved for
the captive by its domiciliary insurance regulator.
As of December 31, 2011, each of our Principal Insurance Subsidiaries domiciled in Colorado, Iowa and
Minnesota had negative earned surplus and did not have capacity to make ordinary dividend payments to ING
U.S., Inc. or Lion Holdings without regulatory approval. Our Connecticut-domiciled insurance company, ILIAC,
had positive earned surplus as of December 31, 2011 and could have paid a maximum amount of $190.0 million
of ordinary dividends to Lion Holdings without regulatory approval in 2012; however, ILIAC’s 2012 distribution
request of $340.0 million exceeded its year-end 2011 earned surplus and therefore required domiciliary insurance
regulatory approval. In the second quarter of 2012, our Principal Insurance Subsidiaries domiciled in Colorado,
Connecticut, Iowa and Minnesota received approvals or notices of non-objection, as the case may be, from their
respective domiciliary insurance regulators to make extraordinary distributions to ING U.S., Inc. or Lion
Holdings in the aggregate amount of $800.0 million (including the $190.0 million ordinary dividend capacity of
ILIAC) in response to requests submitted earlier that year. The approved distributions of $800.0 million were
made on June 26, 2012.
In addition to the extraordinary distributions paid by our Principal Insurance Subsidiaries in 2012, in March
and April of 2013 our Principal Insurance Subsidiaries received approvals or notices of non-objection, as the case
may be, from their respective domiciliary regulators to make extraordinary distributions in the aggregate amount
of $1,434.0 million to ING U.S., Inc. or Lion Holdings and paid such approved distributions on May 8, 2013 in
connection with our IPO recapitalization activities.
The following table presents the extraordinary distributions paid by our Principal Insurance Subsidiaries in
2013 and 2012:
($ in millions)
Insurance Subsidiary
State of
Domicile
Extraordinary
Distributions
Paid in 2013
Extraordinary
Distributions
Paid in 2012
ING USA Annuity and Life Insurance
Company .......................... Iowa $230.0 $250.0
Security Life of Denver Insurance
Company .......................... Colorado $447.0 $ 80.0
ReliaStar Life Insurance Company ........ Minnesota $583.0 $130.0
ING Life Insurance and Annuity
Company .......................... Connecticut $174.0 $340.0(1)
(1) Included $190 million of ordinary dividend capacity that ILIAC could have paid without regulatory
approval in 2012.
Prior to our IPO, our Principal Insurance Subsidiaries domiciled in Colorado, Iowa and Minnesota each had
negative earned surplus accounts, and therefore had no ordinary dividend capacity. In order to obtain dividends
or distributions from these insurance companies, we historically obtained approval from the insurance
companies’ respective state regulators, which could be granted or withheld at the regulators’ discretion, for
extraordinary dividends or distributions. On May 8, 2013, following the completion of our IPO and payment of
$1,434.0 million of extraordinary distributions, these insurance companies each reset, on a one-time basis, their
respective negative unassigned funds account as of December 31, 2012 (as reported in their respective 2012
statutory annual statements) to zero (with an offsetting reduction in gross paid-in capital and contributed surplus).
These resets were made pursuant to permitted practices in accordance with statutory accounting practices granted
by their respective domiciliary insurance regulators.
This reset allows our Principal Insurance Subsidiaries domiciled in Colorado, Iowa and Minnesota to more
readily build up ordinary dividend capacity to the extent their operating results subsequent to December 31, 2012
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