Voya 2013 Annual Report Download - page 94

the 21st Century Act (“MAP-21”). Based on our actuarial assumptions, incorporating the provisions of MAP-21
reduced the required contributions to the plan in 2013. However, reduced funding levels in the near term could
lead to increased PBGC variable-rate premiums and/or increases in plan funding in following years.
Although our retail variable annuity products are now managed within our CBVA segment, we continue to
offer variable annuity products and other products with similar features in our ongoing business.
In 2009, we decided to cease sales of retail variable annuities with substantial guarantee features and now
manage that business within our CBVA segment. However, we continue to offer variable annuity products in our
ongoing business as well as products that have some of the features of variable annuities such as guaranteed
benefits. For example, certain of the deferred annuities sold by our Retirement segment are on group and
individual variable annuity policy forms, since these product types allow customers to allocate their retirement
savings to a variety of different investment options. These products may contain guaranteed death benefit
features, but they do not offer guaranteed living benefit features of the type found within the CBVA segment.
The Retirement segment has recently introduced an optional guaranteed retirement income portfolio
(“GRIP”) feature that, if elected by an employee of one of our plan sponsor customers, provides guaranteed
lifetime withdrawal benefits (“GLWB”) to such employees. The GLWB is offered through a multi-insurer model,
whereby we and two unaffiliated insurers provide GLWB coverage to participating employees. In contrast to the
retail GMWBL provisions formerly offered by the CBVA segment, the GLWB provisions within GRIP do not
offer rollup benefits; furthermore, we reprice the GLWB amount purchased by contributions to the GRIP feature
on a quarterly basis. In addition, the investment elections available to participating employees have substantially
less flexibility than the elections offered to retail customers of the CBVA segment. We also have the right to
cease accepting new contributions to the GRIP feature, subject to providing 180 days advance notice to the plan
sponsor.
Our Annuities segment also offers optional guaranteed withdrawal benefit provisions on its indexed annuity
products.
To the extent that these risk-control provisions do not mitigate the risks of the GLWB and to the extent that
we continue to offer variable annuity products and products with similar features in our ongoing business, the
risks described below under “—Risks Related to Our CBVA Segment” will impact our ongoing business.
Risks Related to Our CBVA Segment
Although we no longer actively market retail variable annuities, our business, results of operations, financial
condition and liquidity will continue to be affected by our CBVA segment for the foreseeable future.
Our CBVA segment consists of retail variable annuity insurance policies sold primarily from 2001 to early
2010, when the block entered run-off. This segment represented 16.7% of our total AUM as of December 31,
2013, income (loss) before income taxes was ($1,209.3) million, ($692.3) million and ($564.5) million for the
years ended December 31, 2013, 2012, and 2011, respectively. Revenues for the segment were ($726.2) million,
($70.0) million and $794.9 million for the years ended December 31, 2013, 2012, and 2011, respectively. See
“Item 1. Business—Closed Blocks—CBVA.” These products offered long-term savings vehicles in which
customers (policyholders) made deposits that were invested, largely at the customer’s direction, in a variety of
U.S. and international equity, fixed income, real estate and other investment options. In addition, these products
provided customers with the option to purchase living benefit riders, including GMWBL, GMIB, GMAB and
GMWB. All retail variable annuity products include GMDB. In 2009, we decided to cease sales of retail variable
annuity products with substantial guarantee features. In early 2010, we ceased all new sales of these products
with substantial guarantees, although we continue to accept new deposits in accordance with, and subject to the
limitations of, the provisions of existing contracts.
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