Voya 2014 Annual Report Download

Download and view the complete annual report

Please find the complete 2014 Voya annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 454

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268
  • 269
  • 270
  • 271
  • 272
  • 273
  • 274
  • 275
  • 276
  • 277
  • 278
  • 279
  • 280
  • 281
  • 282
  • 283
  • 284
  • 285
  • 286
  • 287
  • 288
  • 289
  • 290
  • 291
  • 292
  • 293
  • 294
  • 295
  • 296
  • 297
  • 298
  • 299
  • 300
  • 301
  • 302
  • 303
  • 304
  • 305
  • 306
  • 307
  • 308
  • 309
  • 310
  • 311
  • 312
  • 313
  • 314
  • 315
  • 316
  • 317
  • 318
  • 319
  • 320
  • 321
  • 322
  • 323
  • 324
  • 325
  • 326
  • 327
  • 328
  • 329
  • 330
  • 331
  • 332
  • 333
  • 334
  • 335
  • 336
  • 337
  • 338
  • 339
  • 340
  • 341
  • 342
  • 343
  • 344
  • 345
  • 346
  • 347
  • 348
  • 349
  • 350
  • 351
  • 352
  • 353
  • 354
  • 355
  • 356
  • 357
  • 358
  • 359
  • 360
  • 361
  • 362
  • 363
  • 364
  • 365
  • 366
  • 367
  • 368
  • 369
  • 370
  • 371
  • 372
  • 373
  • 374
  • 375
  • 376
  • 377
  • 378
  • 379
  • 380
  • 381
  • 382
  • 383
  • 384
  • 385
  • 386
  • 387
  • 388
  • 389
  • 390
  • 391
  • 392
  • 393
  • 394
  • 395
  • 396
  • 397
  • 398
  • 399
  • 400
  • 401
  • 402
  • 403
  • 404
  • 405
  • 406
  • 407
  • 408
  • 409
  • 410
  • 411
  • 412
  • 413
  • 414
  • 415
  • 416
  • 417
  • 418
  • 419
  • 420
  • 421
  • 422
  • 423
  • 424
  • 425
  • 426
  • 427
  • 428
  • 429
  • 430
  • 431
  • 432
  • 433
  • 434
  • 435
  • 436
  • 437
  • 438
  • 439
  • 440
  • 441
  • 442
  • 443
  • 444
  • 445
  • 446
  • 447
  • 448
  • 449
  • 450
  • 451
  • 452
  • 453
  • 454

Changing
the way
you think of retirement
Annual Report 2014

Table of contents

  • Page 1
    Changing the way you think of retirement Annual Report 2014

  • Page 2
    ... up. Let's give people the tools and resources they need. Let's help our customers take actions that give them confidence. In just a few years, Voya Financial has shown what's possible with a clear plan and a commitment to execution. We're changing what people think a retirement company should be...

  • Page 3
    Voya Financial $524 billion in assets under management and administration1 13 million customers1 225,000 points of distribution1 6,500 employees1 1

  • Page 4
    ... our guiding principle is retirement readiness. Voya Financial is dedicated to helping Americans become financially and emotionally ready for retirement by providing our customers with quality asset accumulation, asset protection and asset distribution products and services, plus guidance and advice...

  • Page 5
    Accumulate Take steps - individually or through the workplace - to save for retirement. Protect Ensure your earning potential and your family's financial future are secure. Distribute Identify ways to turn your savings into income in retirement. 3

  • Page 6
    30+ More than 30 margin, growth and capital initiatives that have led to improved returns. A cultural transformation that has focused on bottom-line results and continuous improvement. A stronger financial profile to support our improvement efforts and our focus on profitable growth. 4

  • Page 7
    ... results along the way. We have improved value by positioning our businesses to achieve greater profitability and better returns. Now, we are focused on continuing our momentum, raising the bar and taking further steps to achieve our vision to be America's Retirement Company. We're investing for the...

  • Page 8
    ... With a focus on building a new kind of financial company, we are committed to helping all Americans with their retirement readiness needs. We are investing in our people, investing in our businesses and investing in our communities. We believe that a commitment to a plan with the right energy and...

  • Page 9
    6,500 Committed to putting the power of our approximately 6,500 employees to work to drive our plans forward. Digital Investing in new digital tools and other resources that can build confidence and help our customers achieve their goals. 7

  • Page 10
    America's Retirement Company TM 8

  • Page 11
    ...America's Retirement Company. We generated strong financial performance, launched our new brand and rolled out new digital tools to expand our suite of retirement readiness capabilities. With our talented employees, our commitment to executing on our plans, our strong relationships with distribution...

  • Page 12
    ...'s annual report - changing the way you think of retirement - we view our business, and what we aspire to provide for our customers, a little differently. At Voya Financial, we focus on asset accumulation, asset protection and asset distribution needs, which form the core of our value proposition...

  • Page 13
    ... better use of capital, improve margins and accelerate growth. Whether through our value-added retirement readiness offerings in Retirement, broadened product portfolio and distribution in Annuities, strong performance in Investment Management, rebalanced mix of new business in Individual Life or...

  • Page 14
    ... solutions. These investments are designed to drive ROE expansion, increase free cash flow and accelerate earnings growth. At our Investor Day meeting on June 2, 2015, we will provide more detail on our plans, which I look forward to sharing with you. For those who have been a part of Voya Financial...

  • Page 15
    ... for our new brand name and launched Voya Born to Save program to further raise awareness TM Excess Capital Generation Share Repurchases ING Group Sales of Voya Financial Common Stock Rebranded as Voya Financial Ongoing Business Adjusted Operating Return on Equity2 2012 2013 2014 8.3% 10.3% 12...

  • Page 16
    ... asset accumulation, asset protection and asset distribution products and services. We plan to continue to reinvest in our businesses to drive return on equity expansion, increase free cash flow and accelerate earnings growth. While we benefit from a diverse earnings profile, our businesses work...

  • Page 17
    ... their asset accumulation, asset protection and asset distribution needs. We offer individual life insurance products as well as employee benefits, including group life insurance, stop loss insurance, and voluntary benefits. 5 Ongoing Business reflects Retirement, Annuities, Investment Management...

  • Page 18
    ... ready - both financially and emotionally. Retirement • Full-service plans • Record-keeping services • Stable value plans • Individual retirement accounts (IRAs) • Brokerage accounts • Pension risk transfer Annuities • Fixed indexed annuities • Annuity and custodial products...

  • Page 19
    ... in new products and distribution, such as expanding our efforts to meet the long-term investment needs of insurance companies by helping them manage their general accounts. Investments • Retirement, retail, institutional funds and strategies • Fixed Income • Equity • Alternatives • Multi...

  • Page 20
    ... and responsible product and service development • Released our Voya Investment Management Environment, Social and Governance statement • Named by the Ethisphere Institute as one of the World's Most Ethical Companies for 2015, marking the second year in a row that Voya Financial has received...

  • Page 21
    ... of Insurance and Asset Management Americas, ING Group Lynne Biggar Executive Vice President of Consumer Marketing + Revenue, Time Inc. J. Barry Griswell Former Chairman and Chief Executive Officer, Principal Financial Group Rodney O. Martin, Jr. Chairman and Chief Executive Officer, Voya Financial...

  • Page 22
    ..., one family, one institution at a time. Our Guiding Principle: Dedicated to helping Americans become financially and emotionally ready for retirement by providing our customers and clients with quality asset accumulation, asset protection and asset distribution products and services. Our Values...

  • Page 23
    ... ACT OF 1934 For the fiscal year ended December 31, 2014 OR ' TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35897 Voya Financial, Inc. (Exact name of registrant as specified in its charter...

  • Page 24
    ... 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...Item 13. Certain Relationships and Related Transactions, and Director Independence ...Item 14. Principal Accounting Fees and Services ...PART IV. Item 15. Exhibits, Financial Statement Schedules...

  • Page 25
    ... FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K, including "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Business," contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of...

  • Page 26
    ... market ranking of particular companies who do not participate in the surveys. In this Annual Report on Form 10-K, the term "customers" refers to retirement plan sponsors, retirement plan participants, institutional investment clients, retail investors, corporations or professional groups offering...

  • Page 27
    ... universal life ("IUL"), term life and stable value products, allow our customers to protect against unforeseen life events and mitigate market risk. Enjoy. Our income products such as target date funds, guaranteed income funds, fixed annuities, IRAs, mutual funds and accumulation insurance products...

  • Page 28
    ...Institutional Markets Market Employee Size Asset Range Typical Customer Products Small-Mid 26-3,000 $5 million$150 million Full Service Retirement Plans Retirement Recordkeeping Employee Benefits Investment Management Stable Value / Pension Risk Transfer Full Service Retirement Plans Retirement...

  • Page 29
    ...-qualified mutual fund custodial products and payout annuities for pre-retirement wealth accumulation and post-retirement income management sold through multiple channels, and had $26.7 billion of AUM as of December 31, 2014. • Investment Management. We are a prominent full-service asset manager...

  • Page 30
    • Employee Benefits provides stop loss, group life, voluntary employee-paid and disability products to mid-sized and large businesses. As of December 31, 2014, the Company has 53 employee benefits sales representatives, across 19 sales offices, with average industry experience of 17 years. For ...

  • Page 31
    ...") (Colorado) Security Life of Denver International Limited ("SLDI") (Arizona) Voya Retirement Insurance and Annuity Company ("VRIAC") (Connecticut) Voya Insurance and Annuity Company ("VIAC") (Iowa) ReliaStar Life Insurance Company ("RLI") (Minnesota) Voya Investment Management LLC (Delaware...

  • Page 32
    ... work associated with the rebranding. Consistent with these plans, ING U.S., Inc. changed its legal name to Voya Financial, Inc. in April 2014; and in May 2014 our Investment Management and Employee Benefits businesses began using the Voya Financial brand. In September 2014, all of our businesses...

  • Page 33
    ... plans and comprehensive financial product offerings and advisory services. Our Annuities segment provides fixed, indexed and payout annuities and mutual fund custodial accounts for pre-retirement wealth accumulation and post-retirement income management, sold through multiple channels. Retirement...

  • Page 34
    ... pension risk transfer solutions to institutional plan sponsors looking to transfer their defined benefit plan obligations to us. We first entered this market in 2014 and believe it offers a future growth opportunity that is aligned with our expertise in servicing institutional group annuity plans...

  • Page 35
    ... of mutual funds in addition to a guaranteed option (available through a group fixed annuity contract or stable value product). Voya Retirement Plus II and Voya Custom Choice II, registered group annuity products featuring variable investment options held in a variable annuity separate account and...

  • Page 36
    ... unregistered group annuity product which features variable investment options held in a variable annuity separate account and a guaranteed option (available through a group fixed annuity contract or stable value product). Markets and Distribution Our Institutional Retirement Plans business can be...

  • Page 37
    ... consultants focused on these markets. Direct Sold by Dedicated Voya Sales Teams. We have sales teams that work directly with large plan corporate market, stable value and pension risk transfer clients. The stable value investment only business and pension risk transfer solutions can occur in either...

  • Page 38
    ... Competitors Stable Value Pension Risk Transfer Insurance companies and banks Insurance companies Prudential MetLife Principal Financial MassMutual Our full-service Institutional Retirement Plans business competes primarily based on pricing, the breadth of our service and investment offerings...

  • Page 39
    ... investment solutions include advisory programs, mutual fund custodial IRAs, fixed annuities and brokerage accounts. The primary focus of our Retirement segment is to serve nearly five million defined contribution plan participants (as of December 31, 2014). We also seek to capitalize on our access...

  • Page 40
    ... managing market and credit risks associated with investments and through asset/ liability matching portfolio management. Annuities The Annuities segment provides fixed and indexed annuities, tax-qualified mutual fund custodial products and payout annuities for pre-retirement wealth accumulation...

  • Page 41
    ..., 2014 % of Sales Year Ended December 31, 2014 Independent Insurance Agents / Independent Market Organizations ...Independent Broker-Dealers ...Affiliated Broker-Dealers ...Banks and Other Financial Institutions ... $ 824.4 $1,255.8 $ 498.8 $ 276.8 28.9% 44.0% 17.5% 9.7% Our mutual fund custodial...

  • Page 42
    ...life of the account. These custodial mutual fund products do not generate investment margins, do not expose us to significant mortality risk and no hedging is required. Investment Management We offer domestic and international fixed income, equity, multi-asset and alternatives products and solutions...

  • Page 43
    ... account assets. Through the fixed income platform clients have access to money market funds, investment-grade corporate debt, government bonds, residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS"), asset-backed securities ("ABS"), high yield bonds, private...

  • Page 44
    ... alternative and hedge funds leveraging our core debt and equity investment capabilities. Investment Management manages a variety of variable portfolios, mutual funds and stable value assets, sold through our Retirement Solutions and Insurance Solutions businesses. As of December 31, 2014, total...

  • Page 45
    ...Ended December 31, 2014 $ in millions Investment Platform Fixed Income ...Equities ...Senior Bank Loans ...Alternatives ...Total ...MASS ...Client Segment Retail ...Institutional ...General Account ...Mutual Fund Manager Re-assignments(3) ...Total ...Voya Financial affiliate sourced, excluding CBVA...

  • Page 46
    ...low-cost term life insurance designed to serve the middle market to fixed, indexed and variable universal life insurance products targeted to more affluent markets. We have re-priced certain products and will continue to monitor changes to the product portfolio to align with market conditions. As of...

  • Page 47
    ... UL, IUL, variable universal life and term life, insurance. These offerings are designed to address customer needs for death benefit protection, taxadvantaged wealth transfer and accumulation, premium financing, business planning, executive benefits and supplemental retirement income. We believe...

  • Page 48
    ...with our broker-dealer. These producers, while independent, use our brand and sell a wide range of our products, including life, annuity and mutual funds. Finally, we employ a specialty markets channel to focus on alternative distribution. This includes life insurance quote agencies, internet direct...

  • Page 49
    ... persistency and premium payment pattern in pricing policies. In addition, certain of our insurance products that include guaranteed returns or crediting rates underwrite equity market or interest rate risks. We seek to maintain a spread between the return on our general account invested assets and...

  • Page 50
    ... group life and stop loss product lines, by adding profitable new business to our in-force block, improving our persistency by retaining more of our best performing groups, and managing our loss ratios to below 80%, particularly on stop loss policies. Products and Services Our Employee Benefits...

  • Page 51
    ..., we are an experienced multi-line employee benefits insurance carrier (group life, disability, stop loss and elective benefits). We primarily use three distribution channels to market and sell our employee benefits products. Our largest channel works through hundreds of brokers and consultant firms...

  • Page 52
    ... and Qualitative Disclosures About Market Risk-Risk Management". We also use an annually renewable reinsurance transaction which lowers required capital of the Employee Benefits segment. Closed Blocks We separated our CBVA and Closed Block Institutional Spread Products segments from our other...

  • Page 53
    ... substantial guarantee features. The products were fully closed to new sales in early 2010 and the management of the block shifted to run-off; in 2010, we also refined our capital hedge overlay ("CHO") program to dynamically protect regulatory and rating agency capital levels in down equity market...

  • Page 54
    ... withdrawals are guaranteed for life. Guaranteed Minimum Accumulation Benefit (GMAB). Guarantees that the account value will be at least 100% of the eligible premiums paid by the customer after 10 years, adjusted for withdrawals. We offered an alternative design that guaranteed the account value...

  • Page 55
    ... money") guarantees. We periodically evaluate estimates used and adjust the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. Changes in reserves for GMDB and GMIB are reported...

  • Page 56
    ...exercise of the benefit means that the customers give up any future increase in the guaranteed benefit that might accrue if they were to delay exercise to a later date. The discount rates used in the GMIB NAR methodology grade from current U.S. Treasury rates to long-term best estimates over fifteen...

  • Page 57
    ...-Future Policy Benefits and Contract Owner Account Balances Note in our Consolidated Financial Statements in Part II, Item 8. in this Annual Report on Form 10-K. Variable Annuity Hedge Program and Reinsurance Variable Annuity Guarantee Hedge Program. We primarily mitigate CBVA market risk exposures...

  • Page 58
    ... groups (i.e., the fund groups that can be covered by indices where liquid futures markets exist). Total return swaps are also used to mitigate the risk of the change in value of certain policyholder-directed separate account funds. These include fund classes such as emerging markets and real estate...

  • Page 59
    ... and the Variable Annuity Guarantee Hedge Program for various shocks in equity markets and interest rates. This reflects the hedging we had in place as well as any collateral (in the form of a letter of credit ("LOC")) or change in underlying asset values that would be used to achieve credit for...

  • Page 60
    ... and the hedge gain or loss from our CHO program and the Variable Annuity Guarantee Hedge Program for various shocks in both equity markets and interest rates. This reflects the hedging we had in place at the close of business on December 31, 2014 in light of our determination of risk tolerance at...

  • Page 61
    ... to the Variable Annuity Guarantee Hedge Program that mitigates the impact of potential declines in equity markets and their impact on regulatory reserves and rating agency capital. The program's hedge strategy involves using equity index derivatives, variance and credit default swaps. • The...

  • Page 62
    ...reinsurance arrangements, see the Reinsurance Note in our Consolidated Financial Statements in Part II, Item 8. in this Annual Report on Form 10-K. Market Risk Related to Equity Market Price and Interest Rates. Our variable annuity products are significantly influenced by the United States and other...

  • Page 63
    ...segment. Lapse rates of our variable annuity contracts may be significantly impacted by the value of guaranteed minimum benefits relative to the value of the underlying separate accounts (account value or account balance). In general, policies with guarantees that are "in the money" (i.e., where the...

  • Page 64
    ...of our assumptions relating to lapses, mortality, annuitization of income benefits and utilization of withdrawal benefits. The review in 2011 included an analysis of a larger body of actual experience than was previously available, including a longer period with low equity markets and interest rates...

  • Page 65
    ... finding opportunities to sell assets at prices deemed attractive. New liability contracts may be issued from time to time or be terminated early in order to better match the run-off of the asset portfolio. In addition, our Closed Block Institutional Spread Products segment wrote super senior credit...

  • Page 66
    ..." in this Annual Report on Form 10-K. For more information on our use of captive reinsurance structures, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources-Credit Facilities and Subsidiary Credit Support Arrangements...

  • Page 67
    ... vehicles to transfer insurance risk in relation to existing state laws and regulations, and to establish appropriate regulatory requirements to address concerns identified in the study. Additionally, in June 2013, the New York Department of Financial Services ("NYDFS") released a report critical of...

  • Page 68
    ..., the financial condition of its affiliates, the source and amount of funds by which it will effect the acquisition, the criteria used in determining the nature and amount of consideration to be paid for the acquisition, proposed changes in the management and operations of the insurance company and...

  • Page 69
    ... of financial regulation affecting insurance companies. Though broad in scope, the NAIC has stated that the Solvency Modernization Initiative will focus on: (1) capital requirements; (2) corporate governance and risk management; (3) group supervision; (4) statutory accounting and financial reporting...

  • Page 70
    ... Subsidiary State of Domicile Extraordinary Dividends Paid in 2013 Voya Insurance and Annuity Company ...Security Life of Denver Insurance Company ...ReliaStar Life Insurance Company ...Voya Retirement Insurance and Annuity Company ... Iowa Colorado Minnesota Connecticut $230.0 $447.0 $583.0 $174...

  • Page 71
    ...as to current economic conditions. An important part of the PBR framework was the adoption of AG43 as of December 31, 2009 for variable annuity guaranteed benefits. Another significant development was the adoption of the new Valuation Manual ("VM"), which defines PBR for life insurance policies. The...

  • Page 72
    ... that are used to calculate the RBC requirements for investment portfolio assets. The NAIC review may lead to an expansion in the number of NAIC asset class categories for factor-based RBC requirements and the adoption of new factors, which could increase capital requirements on some securities and...

  • Page 73
    ... "Investment Company Act"). Our mutual funds, and in certain states, our variable life insurance and variable annuity products, are subject to filing and other requirements under state securities laws. Federal and state securities laws and regulations are primarily intended to protect investors and...

  • Page 74
    ... the estate tax as well as proposals related to an optional federal charter for insurance companies. In addition, various forms of direct federal regulation of insurance have been proposed in recent years. Regulation of Investment and Retirement Products and Services Our investment, asset management...

  • Page 75
    ... to state securities regulation, which may affect investment advice, sales and related activities for these products. Some of our subsidiaries issue certain fixed and indexed annuities supported by the company's general account and/or variable annuity contracts and variable life insurance policies...

  • Page 76
    ... to registered investment companies, including mutual funds used in our annuity products, as well as an array of other institutional and retail clients. The Investment Advisers Act and Investment Company Act may require that fund shareholders be asked to approve new investment advisory contracts...

  • Page 77
    ...the way our products and services are marketed and sold to ERISA plans and their plan participants and to purchasers of individual retirement accounts and individual retirement annuities. The SEC also has indicated that it may propose rules creating a uniform standard of conduct applicable to broker...

  • Page 78
    ... other regulators apply new or heightened standards and safeguards for activities or practices we and other insurers or other financial services companies engage in if the FSOC determines that those activities or practices could create or increase the risk that significant liquidity, credit or other...

  • Page 79
    ... significant changes in how financial companies, particularly companies that are members of large and complex financial groups, should be regulated. These proposals address such issues as financial group supervision, capital and solvency standards, systemic risk, corporate governance including...

  • Page 80
    ... of the Company's common stock in a series of transactions in March 2014, September 2014 and November 2014, each of which included a sale of shares in a registered public offering as well as a repurchase by Voya Financial, Inc. of shares of common stock directly from ING Group. These additional...

  • Page 81
    ...Act The Patriot Act contains anti-money laundering and financial transparency laws applicable to broker-dealers and other financial services companies, including insurance companies. The Patriot Act seeks to promote cooperation among financial institutions, regulators and law enforcement entities in...

  • Page 82
    ... our business, results of operations, cash flows or financial condition. It is also possible that future guidance from the Internal Revenue Service and state tax authorities may resolve these inconsistencies. Accordingly, it is possible that significant changes will be required to our tax reporting...

  • Page 83
    ... You may also access our press releases, financial information and reports filed with the SEC (for example, our Annual Report on Form 10-K, our Proxy Statement, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and any amendments to those Forms) online at investors.voya.com. Copies...

  • Page 84
    ... in debt and equity markets including increases in interest rates and associated declining values on fixed income investments. As the Federal Reserve moves towards normalizing monetary policy and moving short-term interest rates off of their lower bound, the central bank may adversely affect...

  • Page 85
    ... rates, market indices, securities prices, default rates, the value of real estate assets, currency exchange rates and credit spreads. The profitability of many of our insurance, annuity, retirement and investment products depends in part on the value of the general accounts and separate accounts...

  • Page 86
    ...which could adversely affect the profitability of future business and the availability of capital to support new sales. Hedging instruments we use to manage product and other risks might not perform as intended or expected, which could result in higher realized losses and unanticipated cash needs to...

  • Page 87
    ... insurance premiums and fees, annuity deposits and cash flow from investments and assets. At the holding company level, sources of liquidity in normal markets also include a variety of short-term liquid investments and short-and long-term instruments, including credit facilities, equity securities...

  • Page 88
    .... An increase in interest rates could result in decreased fee income associated with a decline in the value of variable annuity account balances invested in fixed income funds, which also might affect the value of the underlying guarantees within these variable annuities. Lastly, certain statutory...

  • Page 89
    ... end of 2013 through the date of this Annual Report on Form 10-K, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations- Liquidity and Capital Resources-Ratings". A downgrade of the financial strength rating of one of our Principal Insurance Subsidiaries...

  • Page 90
    ... of products, services or features, assume a greater level of risk, or have higher claims-paying or credit ratings than we do. In recent years, there has been substantial consolidation among companies in the financial services industry resulting in increased competition from large, well-capitalized...

  • Page 91
    ... and equity investments with counterparties and customers in the financial services industry, including brokers and dealers, commercial and investment banks, mutual and hedge funds, institutional clients, futures clearing merchants, swap dealers, insurance companies and other institutions, resulting...

  • Page 92
    ... of a Ratings Downgrade." Our investment portfolio is subject to several risks that may diminish the value of our invested assets and the investment returns credited to customers, which could reduce our sales, revenues, AUM and results of operations. Fixed income securities represent a significant...

  • Page 93
    ... liquidity in such an event. Additionally, changing market conditions may cause a shift in our asset mix towards fixed-income products and a related decline in our revenue and income, as we generally derive higher fee revenues and income from equity products than from fixed-income products we manage...

  • Page 94
    .... These valuation allowances are based on loan risk characteristics, historical default rates and loss severities, real estate market fundamentals and outlook as well as other relevant factors. As of December 31, 2014, our commercial loan portfolio had no commercial loans that were past due, and no...

  • Page 95
    ...on our revenues and income. Our operations include, among other things, retirement plan administration, policy administration, portfolio management, investment advice, retail and wholesale brokerage, fund administration, shareholder services, benefits processing and servicing, contract and sales and...

  • Page 96
    ...fund requirements, credit rating, industry sector of the issuer and quoted market prices of comparable securities. Factors considered in estimating the fair values of embedded derivatives and derivatives related to product guarantees (collectively, "guaranteed benefit derivatives") include risk-free...

  • Page 97
    ... and financial condition. Furthermore, historical trends may not be indicative of future impairments or allowances. Fixed income and equity securities classified as available-for-sale are reported at their estimated fair value. Unrealized gains or losses on available-for-sale securities are...

  • Page 98
    ... significant judgment, including assumptions as to the levels and/or timing of receipt or payment of premiums, benefits, claims, expenses, interest credits, investment results (including equity market returns), retirement, mortality, morbidity and persistency. We periodically review the adequacy of...

  • Page 99
    .... We offer stable value products primarily as a fixed rate, liquid asset allocation option for employees of our plan sponsor customers within the defined contribution funding plans offered by our Retirement business. These products are designed to provide a guaranteed annual credited rate (currently...

  • Page 100
    ..., management regularly reviews the estimates and assumptions underlying DAC, DSI and VOBA. The projection of estimated gross profits, gross premiums or gross revenues requires the use of certain assumptions, principally related to separate account fund returns in excess of amounts credited to...

  • Page 101
    ... sensitive to equity market and credit market conditions), the amount of additional capital such insurer must hold to support business growth, changes in equity market levels, the value and credit ratings of certain fixed-income and equity securities in its investment portfolio, the value of certain...

  • Page 102
    ... Financial Condition and Results of Operations- Liquidity and Capital Resources-Credit Facilities and Subsidiary Credit Support Arrangements." A significant portion of our institutional funding originates from two Federal Home Loan Banks, which subjects us to liquidity risks associated with sourcing...

  • Page 103
    ... employees or agents, could in each case cause significant interruptions to our operations, which could harm our reputation, adversely affect our internal control over financial reporting, or have a material adverse effect on our business, results of operations and financial condition. In addition...

  • Page 104
    ... we account for our insurance policies, annuity contracts and financial instruments and how our financial statements are presented. The changes to U.S. GAAP could affect the way we account for and report significant areas of our business, could impose special demands on us in the areas of governance...

  • Page 105
    ...be offset by a pre-change loss is subject to an annual limitation. Generally speaking, this limitation is derived by multiplying the fair market value of the Company immediately before the date of the Section 382 event by the applicable federal long-term tax-exempt rate. As part of our participation...

  • Page 106
    ... other things losses in our investment portfolio due to significant volatility in global financial markets or the failure of counterparties to perform; changes in the rate of mortality, claims, withdrawals, lapses and surrenders of existing policies and contracts, as well as sales of new policies...

  • Page 107
    ...on our insurance companies, which may have a material adverse effect on our business, results of operations and financial condition. The loss of key personnel could negatively affect our financial results and impair our ability to implement our business strategy. Our success depends in large part on...

  • Page 108
    ... 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...

  • Page 109
    ...2014, 2013, and 2012, 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...

  • Page 110
    .... An increase in interest rates could result in decreased fee income associated with a decline in the value of variable annuity account balances invested in fixed income funds, which also might affect the value of the underlying guarantees within these variable annuities. The performance of our CBVA...

  • Page 111
    ...of our assumptions relating to lapses, mortality, annuitization of income benefits and utilization of withdrawal benefits. The review in 2011 included an analysis of a larger body of actual experience than was previously available, including a longer period with low equity markets and interest rates...

  • Page 112
    ...to net income. Risks Related to Regulation Our businesses and those of our affiliates are heavily regulated and changes in regulation or the application of regulation may reduce our profitability. We are subject to detailed insurance, asset management and other financial services laws and government...

  • Page 113
    ... and the way in which we organize and operate our businesses. Various jurisdictions in which ING Group and its subsidiaries operate, including the United States, apply prudential and other regulations to the holding companies and affiliates of financial institutions. If the applicable laws and...

  • Page 114
    ... or financial condition. We currently use captive reinsurance subsidiaries primarily to reinsure term life insurance, universal life insurance with secondary guarantees, and stable value annuity business. We also use our Arizona captive primarily to reinsure life insurance and annuity business from...

  • Page 115
    ... regulation and failure to meet any of the complex product requirements may reduce profitability. Our insurance, annuity, retirement and investment products are subject to a complex and extensive array of state and federal tax, securities, insurance and employee benefit plan laws and regulations...

  • Page 116
    ..., U.S. federal income tax law imposes requirements relating to insurance and annuity product design, administration and investments that are conditions for beneficial tax treatment of such products under the Internal Revenue Code. Additionally, state and federal securities and insurance laws impose...

  • Page 117
    ... sponsor and invest in private funds. In the event that one of our affiliates becomes a depository institution or otherwise becomes subject to the Volcker Rule, our investment activities could be restricted. The Dodd-Frank Act also includes various securities law reforms that may affect our business...

  • Page 118
    ...of our Affiliation with ING Group". Changes in U.S. federal and state securities laws and regulations may affect our operations and our profitability. U.S. federal and state securities laws apply to sales of our mutual funds and to our variable annuity and variable life insurance products (which are...

  • Page 119
    ... obligations to an insurance company. As part of our retirement services segment, we offer general account and separate account group annuity products that enable a plan sponsor to transfer these risks, often in connection with the termination of defined benefit pension plans. Consequently, this...

  • Page 120
    ..., impact the ability of our insurance company subsidiaries to make distributions to Voya Financial, Inc. or make our insurance, annuity and investment product less attractive to customers. Changes in tax laws could increase our taxes and our effective tax rates. For example, the Obama Administration...

  • Page 121
    ... all of its global insurance and investment management business. See "Item 1. Business-ING Group Restructuring Plan with European Commission". It is thus expected that ING Group will sell its remaining interest in Voya Financial, Inc. through one or more additional public offerings of our stock or...

  • Page 122
    ... traded company could adversely affect our ability to attract and retain customers, which could result in reduced sales of our products. ING U.S., Inc. changed its legal name to Voya Financial, Inc. in April 2014; and in May 2014 our Investment Management and Employee Benefits businesses began using...

  • Page 123
    ... the prices of our products, increase our sales commissions and fees, change long-term selling and marketing agreements and take other action to maintain our relationship with our sales intermediaries and distribution partners, all of which could have an adverse effect on our financial condition and...

  • Page 124
    .... In addition, our business has benefited from ING Group's purchasing power when procuring goods and services. As a standalone company, we may be unable to obtain such goods and services at comparable prices or on terms as favorable as those obtained prior to our initial public offering, which could...

  • Page 125
    ... funds to them to meet their obligations. Voya Financial, Inc. is the holding company for all our operations, and dividends, returns of capital and interest income on intercompany indebtedness from Voya Financial, Inc.'s subsidiaries are the principal sources of funds available to Voya Financial...

  • Page 126
    ..., 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...

  • Page 127
    ...any form to their parent companies other than in accordance with their respective insurance securitization transaction agreements and their respective governing licensing orders, and in no event may the dividends decrease the capital of the captive below the minimum capital requirement applicable to...

  • Page 128
    ... to defer interest payments on those debentures. See Management's Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital Resources in Part II, Item 7. of this Annual Report on Form 10-K. and the Shareholders' Equity and Earnings per Common Share Note in our...

  • Page 129
    Purchases of Equity Securities by the Issuer The following table summarizes Voya Financial, Inc.'s repurchases of its common stock for the three months ended December 31, 2014: Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that ...

  • Page 130
    ... Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. 2014 Year Ended December 31, 2013 2012 2011 ($ in millions, except per share amounts) 2010 Statement of Operations Data: Revenues Net investment income ...Fee income ...Premiums ...Total net realized capital gains (losses...

  • Page 131
    ...investments ...Assets held in separate accounts ...Total assets ...Future policy benefits and contract owner account balances ...Short-term debt ...Long-term debt ...Liabilities related to separate accounts ...Total Voya Financial, Inc. shareholders' equity, excluding AOCI(2) ...Total Voya Financial...

  • Page 132
    ...Our Investment Management business provides investment products and retirement solutions to both individual and institutional customers by offering domestic and international fixed income, equity, multi-asset and alternative products and solutions across a range of asset classes, geographies, market...

  • Page 133
    ... direct marketers. Our Employee Benefits segment provides stop loss, group life, voluntary employee-paid and disability products to mid-sized and large businesses. We reinsure substantially all of our new disability sales to a third party. To distribute our products, we utilize brokers, consultants...

  • Page 134
    ...Certain of our products pay guaranteed minimum rates. For example, fixed accounts and a portion of the stable value accounts included within defined contribution retirement plans, universal life ("UL") policies and individual fixed annuities include guaranteed minimum credited rates. We are required...

  • Page 135
    ... Social Security and the reduced enrollment in defined benefit retirement plans may further increase the demand for private sector retirement solutions. The impact of any legislative actions or new government programs relating to retirement solutions on our business and financial performance will...

  • Page 136
    ... Business operates in highly competitive markets. We face a variety of large and small industry participants, including diversified financial institutions, investment managers and insurance companies. These companies compete in one form or another for the growing pool of retirement assets driven...

  • Page 137
    ...(losses), net of related amortization of deferred policy acquisition costs ("DAC"), value of business acquired ("VOBA"), sales inducements and unearned revenue. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using...

  • Page 138
    ... (losses) on securities sold directly related to these transactions); Revenues attributable to noncontrolling interest; and Other adjustments to Operating revenues primarily reflect Fee income earned by our broker-dealers for sales of non-proprietary products, which are reflected net of commission...

  • Page 139
    ... (i.e., interest credited to contract owner accounts for assets that earn a fixed return or market performance for assets that earn a variable return). Separate account AUM and institutional/mutual fund AUM include assets managed by our Investment Management segment, as well as assets managed by...

  • Page 140
    ... to the growth and persistency trends in premium revenue. Interest adjusted loss ratios are defined as the ratio of benefits expense to premium revenue exclusive of the discount component in the change in benefit reserve. This measure reports the loss ratio related to mortality on life products and...

  • Page 141
    ... ...Fee income ...Premiums ...Net realized capital gains (losses) ...Other revenue ...Income (loss) related to consolidated investment entities: Net investment income ...Changes in fair value related to collateralized loan obligations ...Total revenues ...Benefits and expenses: Interest credited and...

  • Page 142
    ... dates indicated: ($ in millions) 2014 As of December 31, 2013 2012 AUM and AUA Retirement Solutions: Retirement ...Annuities ...Investment Management ...Insurance Solutions: Individual Life ...Employee Benefits ...Eliminations/Other ...Total Ongoing Business ...Closed Blocks: Closed Block Variable...

  • Page 143
    ... (loss) before income taxes: ($ in millions) Year Ended December 31, 2014 2013 2012 Retirement Solutions: Retirement ...Annuities ...Investment Management ...Insurance Solutions: Individual Life ...Employee Benefits ...Total Ongoing Business ...Corporate ...Closed Blocks: Closed Block Institutional...

  • Page 144
    ... revenues to Total revenues: ($ in millions) Year Ended December 31, 2014 2013 2012 Retirement Solutions: Retirement ...Annuities ...Investment Management ...Insurance Solutions: Individual Life ...Employee Benefits ...Total Ongoing Business ...Corporate ...Closed Blocks: Closed Block Institutional...

  • Page 145
    ....1 26.6 $ 455.5 For a description of our CMO-B portfolio, see Investments-CMO-B Portfolio in Part II, Item 7. of this Annual Report on Form 10-K. The following table presents the adjustment to Income (loss) before taxes related to Guaranteed benefit hedging gains (losses) net of DAC/VOBA and other...

  • Page 146
    ... gain from Lehman Recovery/ LIHTC." During 2012, the Company entered into an agreement to sell certain general account private equity limited partnership holdings ("sale of certain alternative investments"), which resulted in a loss, which was recognized in Net investment income. See "-Investments...

  • Page 147
    ... Lehman Recovery/ LIHTC ($ in millions) Net investment income (loss) Retirement ...Annuities ...Investment Management ...Individual Life ...Employee Benefits ...Corporate ...Closed Block Institutional Spread Products ...Closed Block Other ...Net gain included in segment Operating earnings before...

  • Page 148
    ... as a result of interest rate movements reduced the Net realized capital loss. Gains from market value changes and sales of securities associated with business reinsured are partially offset by the corresponding increase in Interest credited and other benefits to contract owners/policyholders. The...

  • Page 149
    ... on guaranteed benefit hedging gains (losses). Additionally, lower amortization on Individual Life segment's universal life blocks was driven by lower gross profits. An unfavorable variance driven by prospective assumptions changes in our Retirement, Annuities and Employee Benefits segments...

  • Page 150
    ... derivative mark to market adjustments due to interest rate movements as well as lower gains on the sale of securities. Total investment gains were partially offset by higher DAC/VOBA and other intangibles amortization related to realized gains in our Retirement Solutions business, as well as...

  • Page 151
    .... Lower gains on guaranteed benefit derivative hedging, excluding nonperformance risk, in our Retirement Solutions business were mostly offset by changes in the fair value of guaranteed benefit derivatives related to nonperformance risk. In addition, losses resulting from market value changes in the...

  • Page 152
    ... Operating expenses. Changes in market value adjustments related to retirement plan sponsors upon surrender and an increase in production and performance related fees earned by our Investment Management segment also contributed to the increase. Interest credited and other benefits to contract owners...

  • Page 153
    ...Net investment income was due to the Net gain from Lehman Recovery/LIHTC in the current period and the loss on the sale of certain alternative investments in the prior period was offset by lower investment income in our Retirement Solutions and Insurance Solutions businesses as a result of portfolio...

  • Page 154
    ... period. These were partially offset by higher gains resulting from rising interest rates and equity market movements and changes in the fair value of guaranteed benefit derivatives related to nonperformance risk. Losses related to businesses exited through reinsurance or divestment increased $14...

  • Page 155
    ...Retirement segment for the periods indicated: ($ in millions) Year Ended December 31, 2014 2013 2012 Operating revenues: Net investment income and net realized gains (losses) ...Fee income ...Premiums ...Other revenue ...Total operating revenues ...Operating benefits and expenses: Interest credited...

  • Page 156
    ... Annual Report on Form 10-K for further description. The following tables present AUM and AUA for our Retirement segment as of the dates indicated: ($ in millions) 2014 As of December 31, 2013 2012 Corporate markets ...Tax exempt markets(1) ...Total full service plans ...Stable value(2) ...Retail...

  • Page 157
    ... income on the CMO-B portfolio was primarily driven by market conditions and reinvestment rates that were lower than the yields of the investments that matured. Fee income increased $12.4 million from $759.9 million to $772.3 million primarily due to an increase in full service retirement plan fees...

  • Page 158
    ... due to increases in full service plan fees, recordkeeping advisory fees and change order fees for the recordkeeping business. The increase in fees related to full service retirement plans was driven by net increases in separate account and institutional/ mutual fund AUM. These increases were...

  • Page 159
    ... to higher Fee income related to full service retirement plans, an increase in Net investment income as a result of the loss related to the sale of certain alternative investments in the prior period along with a Net gain from Lehman Recovery/LIHTC in the current period, and favorable changes in DAC...

  • Page 160
    ... II, Item 7. of this Annual Report on Form 10-K for further description. The following table presents AUM for our Annuities segment as of the dates indicated: ($ in millions) 2014 As of December 31, 2013 2012 AUM: General account ...Separate account ...Mutual funds ...Total AUM ... $21,795.5 792...

  • Page 161
    ... fee income and higher income on alternative investments, as the prior period included a loss on the sale of certain alternative assets. Fee income increased $9.6 million from $35.5 million to $45.1 million due to growth in assets of mutual fund custodial products, which are sold by the annuity...

  • Page 162
    ... before income taxes of our Investment Management segment for the periods indicated: ($ in millions) Year Ended December 31, 2014 2013 2012 Operating revenues: Net investment income and net realized gains (losses) . . Fee income ...Other revenue ...Total operating revenues ...Operating benefits and...

  • Page 163
    ... lower alternative investment income. Fee income increased $60.3 million from $530.8 million to $591.1 million primarily due to growth in Institutional/retail AUM resulting in higher management and administrative fees earned. The increase in AUM is predominately driven by improved equity markets and...

  • Page 164
    ... alternative investment income and higher Operating expenses, including higher variable compensation associated with the growth in AUM. Investment Management-Year Ended December 31, 2013 Compared to Year Ended December 31, 2012 Operating revenues Net investment income and net realized gains (losses...

  • Page 165
    ...) Year Ended December 31, 2014 2013 2012 Operating revenues: Net investment income and net realized gains (losses) ...Fee income ...Premiums ...Other revenue ...Total operating revenues ...Operating benefits and expenses: Interest credited and other benefits to contract owners/ policyholders...

  • Page 166
    ... Sales by Product Line: Universal life: Guaranteed ...Accumulation ...Indexed ...Total universal life ...Variable life ...Whole life ...Term ...Total sales by product line ...Total gross premiums and deposits(1) ...End of period: In-force face amount(1) ...In-force policy count(1) ...New business...

  • Page 167
    ... investment income due to portfolio restructuring, lower amortization due to lower gross profits and favorable administrative expenses primarily driven by lower sales related expenses, partially offset by unfavorable changes in mortality, net of reinsurance on the universal life blocks. Individual...

  • Page 168
    ... product sales and higher gross claims on the term block. In addition, the year-over-year results were impacted by the Net gain from Lehman Recovery/LIHTC in the current period, loss on sale of certain alternative investments in the prior period and the impact of prospective assumption changes...

  • Page 169
    ... alternative investments ... $(7.8) - - $(0.5) 4.3 - $- - (5.1) The following table presents sales, gross premiums and in-force for our Employee Benefits segment for the periods indicated: ($ in millions) Year Ended December 31, 2014 2013 2012 Sales by Product Line: Group life ...Group stop loss...

  • Page 170
    ... alternative investments in the prior period. Excluding the impact of these asset sales, Net investment income and net realized gains (losses) decreased due to lower investment income on the CMO-B investment portfolio, as a result of portfolio restructuring in the prior period. Premiums increased...

  • Page 171
    ...the contingent capital letter of credit facility supporting our Closed Block Variable Annuity segment in the prior period. Higher alternative investment income and lower expenses also contributed to the improvement. Offsetting these items is an increase in Interest expense driven by a change in debt...

  • Page 172
    ... income taxes of our Closed Block Institutional Spread Products segment for the periods indicated: Year Ended December 31, 2014 2013 2012 ($ in millions) Operating revenues: Net investment income and net realized gains (losses) ...Fee income ...Premiums ...Other revenue ...Total operating revenues...

  • Page 173
    ... a true-up of estimated premiums due to us from a third party administrator for the group reinsurance business. Closed Blocks-Year Ended December 31, 2013 Compared to Year Ended December 31, 2012 Closed Block Institutional Spread Products Operating earnings before income taxes decreased $9.8 million...

  • Page 174
    ... indicated: ($ in millions) 2014 Year Ended December 31, 2013 2012 Revenues: Net investment income ...Fee income ...Premiums ...Net realized capital gains (losses) ...Other revenue ...Total revenues ...Benefits and expenses: Interest credited and other benefits to contract owners/policyholders...

  • Page 175
    ... in accumulation and payout phase, policy loans and life insurance business. Closed Block Variable Annuity-Year Ended December 31, 2014 Compared to Year Ended December 31, 2013 Loss before income taxes decreased $954.1 million from $1,209.3 million to $255.2 million. Annual assumption changes and...

  • Page 176
    ... in the fair value of guaranteed benefit derivative related to nonperformance risk, compared to a loss of $443.6 million in the prior period. Alternative Investment Income Investment income on certain alternative investments can be volatile due to changes in market conditions. The following table...

  • Page 177
    ... assets of alternative investments as of the dates indicated: ($ in millions) Year Ended December 31, 2014 2013 2012 Retirement Alternative investment income ...Average alternative investments ...Annuities Alternative investment income ...Average alternative investments ...Investment Management...

  • Page 178
    ...relation to the emergence of estimated gross profits. For variable deferred annuity contracts within the CBVA segment, we amortize DAC, VOBA and DSI over estimated gross revenues. Assumptions as to mortality, persistency, interest crediting rates, returns associated with separate account performance...

  • Page 179
    ... benefits commissions and operating expenses, interest credits, share repurchases, investment purchases and contract maturities, withdrawals and surrenders. Parent Company Sources and Uses of Liquidity In evaluating liquidity, it is important to distinguish the cash flow needs of Voya Financial...

  • Page 180
    ...Ended December 31, 2014 2013 2012 Beginning cash balance ...Sources: Dividends and returns of capital from subsidiaries ...Repayment of loans to subsidiaries, net of new issuances ...Proceeds from credit facility borrowings, net of repayments ...Proceeds from Senior Notes offerings ...Proceeds from...

  • Page 181
    ...We borrow funds to provide liquidity, invest in the growth of the business and for general corporate purposes. Our ability to access these borrowings depends on a variety of factors including, but not limited to, the credit rating of Voya Financial, Inc. and of its insurance company subsidiaries and...

  • Page 182
    ... 15, 2013. ING Financial Markets, LLC, an affiliate, served as Joint Book Running Manager for the 2022 Notes and was paid $0.3 million for its services. We used the proceeds of the 2022 Notes to repay $500.0 million of the direct borrowings under a $3.5 billion Revolving Credit Agreement ("Revolving...

  • Page 183
    ... with our acquisition of Aetna's life insurance and related businesses. In addition, Equitable of Iowa Capital Trust II, a limited purpose trust, has outstanding $13.0 million principal amount of 8.42% Series B Capital Securities due April 1, 2027 (the "Equitable Notes"). ING Group guarantees the...

  • Page 184
    ... internally funded or guaranteed by NN Group. The Senior Unsecured Credit Facility is guaranteed by Voya Holdings. As part of the Senior Unsecured Credit Facility, Voya Financial, Inc. entered into a Revolving Credit Agreement and a $1.5 billion syndicated Term Loan Agreement ("Term Loan Agreement...

  • Page 185
    ... Agreement The proceeds of the Term Loan Agreement were used to replace financing that was internally funded. Voya Financial, Inc. paid interest at a variable rate based on its credit rating and was required to make principal payments totaling 20.0% of the original borrowing amount over the first...

  • Page 186
    ... 2014: ($ in millions) Obligor / Applicant Secured/ Unsecured Committed/ Uncommitted Unused Capacity Utilization Commitment Liability Supported Expiration Voya Financial, Inc.(1) ... Unsecured Individual Life Hannover Re block CBVA Retirement Solutions Other SLDI ...Retirement Solutions Unsecured...

  • Page 187
    ... short-term investments. The LOC will be used to provide collateral under the reinsurance agreements of Voya Financial, Inc. subsidiaries. The following tables present our existing financing facilities for each of our Individual Life, Hannover Re and CBVA blocks of business as of December 31, 2014...

  • Page 188
    ... to Voya Insurance and Annuity Company ("VIAC"), formerly known as ING USA Annuity and Life Insurance Company, for certain minimum guarantees included in its CBVA products. The agreement had no recourse to Voya Financial, Inc. On May 8, 2013, Voya Financial, Inc. made a capital contribution to...

  • Page 189
    ... of Voya Financial, Inc., respectively, guaranteed a reinsurance contract entered into by SLDI with respect to the principal and interest of a bond insured by an unrelated insurance company. The bond payments were supported by the insurer's closed block. Surplus from the closed block, in the form of...

  • Page 190
    ... on the Consolidated Balance Sheets. As of December 31, 2014 and 2013, collateral retained by the lending agent and invested in liquid assets on our behalf was $563.9 million and $451.0 million, respectively, and is recorded in Short-term investments under securities loan agreements, including...

  • Page 191
    ..., mortgage securities, commercial real estate and U.S. treasury securities are pledged to the FHLBs. Market value fluctuations resulting from changes in interest rates, spreads and other risk factors for each type of assets are monitored and additional collateral is either pledged or released as...

  • Page 192
    ...reinvested in short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by us are the source of noncash collateral posted, which is reported in Securities pledged on the Consolidated Balance Sheets. As of December 31, 2014, we...

  • Page 193
    ...2014, ING Life Insurance and Annuity Company changed its name to Voya Retirement Insurance and Annuity Company ("VRIAC"). Effective March 5, 2014, we requested S&P to withdraw ("WD") the short-term issuer credit rating on Voya Insurance and Annuity Company ("VIAC"), formerly known as ING USA Annuity...

  • Page 194
    ... capital and earnings, asset quality and risk, profitability and risk of existing liabilities and current products, market share and product distribution capabilities, including implications of the ongoing divestment of Voya Financial, Inc. by ING Group, among other factors. Rating agencies use...

  • Page 195
    ... 3, 2014, A.M. Best affirmed the ratings of Voya Financial, Inc. and its operating subsidiaries. A.M. Best maintained its Stable outlook on the financial strength rating of the key life subsidiaries and revised the outlook to Positive from Stable on the issuer credit rating of Voya Financial, Inc...

  • Page 196
    ... financial strength and credit ratings of our reinsurers. The S&P financial strength rating of our reinsurers with the two largest reinsurance recoverable balances are AA- rated or better. These reinsurers are (i) Lincoln National Life Insurance Company and Lincoln Life & Annuity Company of New York...

  • Page 197
    ... plan arrangements, see the Employee Benefit Arrangements Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. Restrictions on Dividends and Returns of Capital from Subsidiaries Our business is conducted through operating subsidiaries. U.S. insurance...

  • Page 198
    ... Ended December 31, 2014 2013 Return of Capital Distributions Year Ended December 31, 2014 2013 ($ in millions) Subsidiary Name (State of domicile): Voya Insurance and Annuity Company (IA)(1) ...Voya Retirement Insurance and Annuity Company (CT)(2) ...Security Life of Denver Insurance Company (CO...

  • Page 199
    ... on total capital and surplus of these insurance subsidiaries and were recorded in their second quarter statutory financial statements. See Business Regulation-Insurance Regulation-Insurance Holding Company Regulation-Dividend Payment Restrictions in Part I, Item 1. of this Annual Report on Form 10...

  • Page 200
    ...capital and surplus of our principal insurance subsidiaries as of the dates indicated: ($ in millions) As of December 31, 2014 2013 Subsidiary Name (State of domicile): Voya Insurance and Annuity Company (IA) ...Voya Retirement Insurance and Annuity Company (CT) ...Security Life of Denver Insurance...

  • Page 201
    ... standards, applicable to traditional insurers, to captive reinsurers. In November 2014, NAIC staff were directed to prepare a new accreditation proposal relating to captives, and on February 24, 2015, the NAIC F Committee exposed for public comment such a proposal, in the form of a revised...

  • Page 202
    ...that affordable alternative financing would be available. Off-Balance Sheet Arrangements Through the normal course of investment operations, we commit to either purchase or sell securities, mortgage loans, or money market instruments, at a specified future date and at a specified price or yield. The...

  • Page 203
    ..., lapse, renewal, retirement, disability and annuitization comparable with actual experience. These assumptions also include market growth and interest crediting consistent with assumptions used in amortizing DAC. Estimated cash payments are undiscounted for the time value of money. Accordingly, the...

  • Page 204
    ... to non-payment of premiums. For certain of our variable products, the lapse rate assumption varies according to the current account value relative to guarantees associated with the product and applicable surrender charges. In general, policies with guarantees that are considered "in the money", or...

  • Page 205
    ...estimating the value of expected benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. Expected experience is based on a range of scenarios. Assumptions used, such as the long-term equity market return...

  • Page 206
    ... value of future guaranteed premiums. At inception of the contract, we project a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using actuarial and capital market assumptions, including benefits and related...

  • Page 207
    ... rates on variable annuity contracts with lifetime living benefit guarantees and $37.1 million related to changes in cash flow projections and volatility assumptions on certain products. See Quantitative and Qualitative Disclosures About Market Risk in Part II, Item 7A. of this Annual Report on Form...

  • Page 208
    ... crediting rates, fee income, returns associated with separate account performance, impact of hedge performance, expenses to administer the business and certain economic variables, such as inflation, are based on our experience and overall capital markets. At each valuation date, estimated gross...

  • Page 209
    ... benefits. Assumptions related to interest rate spreads and credit losses also impact estimated gross profits for applicable products with credited rates. These assumptions are based on the current investment portfolio yields and credit quality, estimated future crediting rates, capital markets...

  • Page 210
    ... and other loans, equity securities, short-term investments, other invested assets and derivative financial instruments. Fixed maturity and equity securities are primarily classified as available-for-sale and are carried at fair value. We enter into interest rate, equity market, credit default and...

  • Page 211
    ... this Annual Report on Form 10K for further information. Investments We measure the fair value of our financial assets and liabilities based on assumptions used by market participants in pricing the assets or liability, which may include inherent risk, restrictions on the sale or use of an asset or...

  • Page 212
    ...the change in the fair value of the underlying assets held in the trust using the valuation methods and assumptions described for our investments held. The valuation of derivatives involves considerable judgment, is subject to considerable variability, is established using management's best estimate...

  • Page 213
    ... analysis of the investment portfolio involves considerable judgment, is subject to considerable variability, is established using management's best estimate and is revised as additional information becomes available. As such, changes in, or deviations from, the assumptions used in such analysis...

  • Page 214
    ...tax credit carryforwards. Positive evidence includes a recent history of earnings, projected earnings attributable to our ongoing insurance and investment businesses, plans or the ability to sell certain assets and streams of revenues, plans to reduce future projected losses by reduction of sales of...

  • Page 215
    ... NOL carryforwards related to the $1.85 billion valuation release, we considered our forecasts of future income using comparisons to historical results and actual and planned business and operational changes, which included assumptions about future macroeconomic and Company-specific conditions and...

  • Page 216
    ... apply to an amount estimated to be not greater than approximately $3.2 billion of the Company's federal tax attributes related to net operating losses and capital losses and approximately $285 million related to tax credits. As with IRAs entered into under the CAP, the matters addressed by the IRA...

  • Page 217
    ... all eligible employees to participate in the Retirement Plan. Participants will earn an annual credit equal to 4% of eligible compensation. Interest is credited monthly based on a 30-year U.S. Treasury securities bond rate published by the Internal Revenue Service in the preceding August of each...

  • Page 218
    ... pension income or expense, the funded status of the Retirement Plan and the need for future cash contributions. The expected rate of return for 2014 was 7.5%, net of expenses, for the Retirement Plan. The expected rate of return assumption is only applicable to the Retirement Plan as assets are...

  • Page 219
    ... ...Fixed maturities, at fair value using the fair value option ...Equity securities, available-for-sale ...Short-term investments(1) ...Mortgage loans on real estate ...Policy loans ...Limited partnerships/corporations ...Derivatives ...Other investments ...Securities pledged ...Total investments...

  • Page 220
    ... purchase. Fixed Maturities Total fixed maturities by market sector, including securities pledged, were as presented below as of the dates indicated: ($ in millions) Amortized Cost December 31, 2014 % of Total Fair Value % of Total Fixed maturities: U.S. Treasuries ...U.S. Government agencies and...

  • Page 221
    ...Ratings The Securities Valuation Office ("SVO") of the NAIC evaluates the fixed maturity security investments of insurers for regulatory reporting and capital assessment purposes and assigns securities to one of six credit quality categories called "NAIC designations." An internally developed rating...

  • Page 222
    The following tables present credit quality of fixed maturities, including securities pledged, using NAIC designations as of the dates indicated: ($ in millions) NAIC Quality Designation 1 2 December 31, 2014 3 4 5 6 Total Fair Value U.S. Treasuries ...U.S. Government agencies and authorities ......

  • Page 223
    The following tables present credit quality of fixed maturities, including securities pledged, using ARO ratings as of the dates indicated: ($ in millions) ARO Quality Ratings AAA AA December 31, 2014 A BBB BB and Below Total Fair Value U.S. Treasuries ...U.S. Government agencies and authorities ...

  • Page 224
    ... which in turn depends on a number of factors, including conditions in both credit markets and housing markets. Changes in the prepayment behavior of homeowners represent both a risk and potential source of return for our CMO-B portfolio. As a result, we seek to invest in securities that are broadly...

  • Page 225
    ...the market values. For details on the NAIC designation methodology, please see Fixed Maturities Credit Quality-Ratings above. The following table presents the notional amounts and fair values of interest rate derivatives used in our CMO-B portfolio as of the dates indicated: December 31, 2014 Assets...

  • Page 226
    ...in Net realized capital gains (losses) are the premium amortization and the change in fair value for securities designated under the FVO, whereas the coupon for these securities is included in Net investment income (loss). In order to present the economics of these fair value securities in a similar...

  • Page 227
    ... 0.9% of total fixed maturities, including securities pledged, based on fair value. The following table presents our exposure to subprime mortgage-backed securities by credit quality using NAIC designations, ARO ratings and vintage year as of the dates indicated: % of Total Subprime Mortgage...

  • Page 228
    ... 0.5% of total fixed maturities, including securities pledged, based on fair value. The following table presents our exposure to Alt-A RMBS by credit quality using NAIC designations, ARO ratings and vintage year as of the dates indicated: % of Total Alt-A Mortgage-backed Securities NAIC ARO...

  • Page 229
    ...by credit quality using NAIC designations, ARO ratings and vintage year as of the dates indicated: NAIC Quality Designation % of Total CMBS ARO Quality Ratings Vintage December 31, 2014 1 2 3 4 5 6 99.2% 0.3% 0.4% 0.1% - % - % 100.0% AAA AA A BBB BB and below 53.4% 12.3% 11.3% 8.4% 14.6% 2014 2013...

  • Page 230
    ...Real Estate We rate all commercial mortgages to quantify the level of risk. We place those loans with higher risk on a watch list and closely monitor these loans for collateral deficiency or other credit events that may lead to a potential loss of principal and/or interest. If we determine the value...

  • Page 231
    ...Annual Report on Form 10-K for further information on mortgage loans on real estate. Recorded Investment Debt Service Coverage Ratios Commercial mortgage loans secured by land or construction >1.25x - 1.5x >1.0x - 1.25x < 1.0x loans ($ in millions) > 1.5x Total % of Total December 31, 2014 Loan...

  • Page 232
    ...Closed Block Variable Annuity Hedging See Quantitative and Qualitative Disclosures About Market Risk in Part II, Item 7A. of this Annual Report on Form 10-K for further information. Invested Asset and Credit Hedging Interest rate caps and interest rate swaps are used to manage the interest rate risk...

  • Page 233
    ... framework takes into account various factors such as internal and external ratings, capital efficiency and liquidity and is overseen by a combination of Investment and Corporate Risk Management, as well as insurance portfolio managers focused specifically on managing the investment risk embedded in...

  • Page 234
    ... 31, 2014: Fixed Maturities and Equity Securities Derivative Assets Loan and Receivables Less: Total Sovereign Margin Total (Amortized (Amortized Financial Non-Financial & (Fair Cost) Cost) Sovereign Institutions Institutions Collateral Value) ($ in millions) Financial Non-Financial Sovereign...

  • Page 235
    ... held by consolidated private equity funds and single strategy hedge funds are reported in our Consolidated Financial Statements. Changes in the fair value of consolidated investment entities are recorded as a separate line item within Income (loss) related to consolidated investment entities in our...

  • Page 236
    ... to include credit risk, interest rate risk and equity market price risk. We do not have material market risk exposure to "trading" activities in our Consolidated Financial Statements. Risk Management As a financial services company active in Retirement, Investment Management and Insurance, taking...

  • Page 237
    ... in our asset portfolio; our derivative portfolio; death benefits and other claims payable under the terms of our insurance products; lapses and surrenders in our insurance products; minimum interest guarantees in our insurance products; and book value guarantees in our insurance products. We...

  • Page 238
    ... account value even if the market value of the asset portfolio is in an unrealized loss position. We purchase derivatives including interest rate caps, swaps and swaptions to reduce the risk associated with this type of guarantee. Interest Risk Related to Variable Annuity Guaranteed Living Benefits...

  • Page 239
    ... 31, 2014 Hypothetical Change in Fair Value(2) + 100 Basis - 100 Basis Points Yield Points Yield Fair Value(1) Curve Shift Curve Shift ($ in millions) Notional Financial assets with interest rate risk: Fixed maturity securities, including securities pledged ...Commercial mortgage and other loans...

  • Page 240
    ... Yield Fair Value(1) Curve Shift Curve Shift Financial assets with interest rate risk: Fixed maturity securities, including securities pledged ...Commercial mortgage and other loans ...Derivatives: Interest rate swaps, caps, forwards ...Financial liabilities with interest rate risk: Investment...

  • Page 241
    ... renewal dates after December 31, 2015 on which we are required to credit interest above the contractual GMIR for at least the next year. Market Risk Related to Equity Market Prices Our variable products, Fixed-Indexed Annuity ("FIA") products and general account equity securities are significantly...

  • Page 242
    ...Market Risk Related to Closed Block Variable Annuity Closed Block Variable Annuity Net Amount at Risk ("NAR") The NAR for Guaranteed Minimum Death Benefits ("GMDB"), Guaranteed Minimum Accumulation Benefits ("GMAB") and Guaranteed Minimum Withdrawal Benefits ("GMWB") is equal to the guaranteed value...

  • Page 243
    ... customers' financial plans and needs as well as by interest rate and market conditions over time and by the availability and features of competing products. If emerging experience deviates from our assumptions on either GMIB annuitization or GMWBL withdrawal, we could experience gains or losses and...

  • Page 244
    ... groups (i.e., the fund groups that can be covered by indices where liquid futures markets exist). Total return swaps are also used to mitigate the risk of the change in value of certain policyholder directed separate account funds. These include fund classes such as emerging markets and real estate...

  • Page 245
    ...CHO program and the Variable Annuity Guarantee Hedge Program for various shocks in equity markets and interest rates. This reflects the hedging we had in place as well as any collateral (in the form of LOC) or change in underlying asset values that would be used to achieve credit for reinsurance for...

  • Page 246
    ... and the hedge gain or loss from our CHO program and the Variable Annuity Guarantee Hedge Program for various shocks in both equity markets and interest rates. This reflects the hedging we had in place at the close of business on December 31, 2014 in light of our determination of risk tolerance at...

  • Page 247
    ... rate swaptions offset this increased expense. Market Risk Related to Credit Risk Credit risk is primarily embedded in the general account portfolio. The carrying value of our fixed maturity and equity portfolio totaled $74.9 billion and $73.0 billion as of December 31, 2014 and 2013, respectively...

  • Page 248
    ... in millions) Parent Company/Principal Reinsurers Credit Rating S&P Moody's Hannover RE Group ...Hannover Life Reassurance Co of America ...Hannover Re (Ireland) Ltd ...Lincoln National Corp ...Lincoln Life & Annuity Company of New York ...Lincoln National Life Insurance Co ...Reinsurance Group of...

  • Page 249
    ... cleared derivatives, as of December 31, 2014 and 2013: As of December 31, 2014 Derivative Notional Amounts Exchange Over The Total Traded Counter (OTC) Notional ($ in millions) Type of Contract Credit Contracts ...Equity Contracts ...Foreign Exchange Contracts ...Interest Rate Contracts ...Total...

  • Page 250
    ...Deutsche Bank AG ...HSBC Bank USA, National Association (formerly HSBC Bank) ...Credit Agricole Corporate and Investment Bank ...JP Morgan Chase Bank, N.A. (formerly JP Morgan Chase Bank) ...Bank of America, N.A...Goldman Sachs International ...UBS AG ...Morgan Stanley Capital Services LLC ...Credit...

  • Page 251
    ...paid. Net realized gains/ (losses) on derivatives for the year ended December 31, 2014, were $791.1 million and $(778.3) million for OTC contracts (including cleared derivatives) and exchange traded contracts, respectively. We use credit derivatives to reduce our exposure to credit-related events as...

  • Page 252
    ... and Supplementary Data Page Report of Independent Registered Public Accounting Firm ...Financial Statements as of December 31, 2014 and 2013 and for the years ended December 31, 2014, 2013 and 2012: Consolidated Balance Sheets as of December 31, 2014 and 2013 ...Consolidated Statements of...

  • Page 253
    ..., Inc. We have audited the accompanying consolidated balance sheets of Voya Financial, Inc. (the "Company") as of December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income, changes in shareholders' equity and cash flows for each of the three years...

  • Page 254
    ...,045.0 as of 2014 and $65,033.8 as of 2013) ...Fixed maturities, at fair value using the fair value option ...Equity securities, available-for-sale, at fair value (cost of $242.0 as of 2014 and $267.4 as of 2013) ...Short-term investments ...Mortgage loans on real estate, net of valuation allowance...

  • Page 255
    ...,120 shares as of 2014 and 2013, respectively) ...Additional paid-in capital ...Accumulated other comprehensive income (loss) ...Retained earnings (deficit): Appropriated-consolidated investment entities ...Unappropriated ...Total Voya Financial, Inc. shareholders' equity ...Noncontrolling interest...

  • Page 256
    ...: Net investment income (loss) ...Changes in fair value related to collateralized loan obligations ...Total revenues ...Benefits and expenses: Policyholder benefits ...Interest credited to contract owner account balances ...Operating expenses ...Net amortization of Deferred policy acquisition costs...

  • Page 257
    Voya Financial, Inc. Consolidated Statements of Comprehensive Income For the Years Ended December 31, 2014, 2013 and 2012 (In millions) Year Ended December 31, 2014 2013 2012 Net income (loss) ...Other comprehensive income (loss), before tax: Unrealized gains (losses) on securities ...Other-than-...

  • Page 258
    ... 31, 2014, 2013 and 2012 (In millions) Common Treasury Stock Stock Accumulated Total Voya Additional Other Total Retained Earnings (Deficit) Financial, Inc. Paid-In Comprehensive Shareholders' Noncontrolling Shareholders' Capital Income (Loss) Appropriated Unappropriated Equity Interest Equity...

  • Page 259
    ....1 895.9 Acquisition of: Fixed maturities ...(12,985.3) (19,014.8) (17,292.3) Equity securities, available-for-sale ...(28.4) (47.6) (41.8) Mortgage loans on real estate ...(2,036.4) (2,206.0) (1,969.0) Limited partnerships/corporations ...(289.0) (97.0) (178.9) Short-term investments, net ...(662...

  • Page 260
    Voya Financial, Inc. Consolidated Statements of Cash Flows For the Years Ended December 31, 2014, 2013 and 2012 (In millions) 2014 Year Ended December 31, 2013 2012 Cash Flows from Financing Activities: Deposits received for investment contracts ...Maturities and withdrawals from investment ...

  • Page 261
    ... (which changed its name from ING U.S., Inc. on April 7, 2014) and its subsidiaries (collectively, "the Company") is a financial services organization in the United States that offers a broad range of retirement services, annuities, investment management services, mutual funds, life insurance, group...

  • Page 262
    ..., income taxes, contingencies and employee benefit plans Fair Value Measurement The Company measures the fair value of its financial assets and liabilities based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or...

  • Page 263
    ...sale, except those accounted for using the fair value option ("FVO"). Available-forsale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in Accumulated other comprehensive income (loss) ("AOCI") and presented net of related changes...

  • Page 264
    ... separate accounts are reported at the fair values of the underlying investments in the separate accounts. The underlying investments include mutual funds, short-term investments, cash and fixed maturities. Mortgage Loans on Real Estate: The Company's mortgage loans on real estate are all commercial...

  • Page 265
    ... loans are determined using independent commercial pricing services. In the event that the third-party pricing source is unable to price an investment (which occurs in less than 2% of the loans), other relevant factors are considered including: • Information relating to the market for the asset...

  • Page 266
    ... issuer can service the scheduled interest and principal payments; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the...

  • Page 267
    ... indices to reduce and manage risks associated with its annuity products. Open derivative contracts are reported as Derivatives assets or liabilities on the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recorded in Net realized capital gains (losses) in the...

  • Page 268
    ... capital gains (losses). The Company also has investments in certain fixed maturities and has issued certain annuity products that contain embedded derivatives whose fair value is at least partially determined by levels of or changes in domestic and/or foreign interest rates (short-term or long-term...

  • Page 269
    ... after policy issuance or acquisition relates only to variability in premium volumes. The Company amortizes DAC and VOBA related to universal life ("UL") and variable universal life ("VUL") contracts and fixed and variable deferred annuity contracts over the estimated lives of the contracts...

  • Page 270
    ... crediting rates, fee income, returns associated with separate account performance, impact of hedge performance, expenses to administer the business and certain economic variables, such as inflation, are based on the Company's experience and overall capital markets. At each valuation date, estimated...

  • Page 271
    ... unless otherwise stated) Other significant assumptions used in the estimation of gross profits include mortality, and for products with credited rates include interest rate spreads and credit losses. Estimated gross revenues and gross profits of variable annuity contracts are sensitive to mortality...

  • Page 272
    .... Credited interest rates vary by product and ranged up to 8.0% for the years 2014, 2013 and 2012. Account balances for group immediate annuities without life contingent payouts are equal to the discounted value of the payment at the implied break-even rate. For fixed-indexed annuity contracts...

  • Page 273
    ... measured at estimated fair value separately from the host contracts. These products include annuity guaranteed minimum accumulation benefits ("GMAB"), guaranteed minimum withdrawal benefits without life contingencies ("GMWB"), guaranteed minimum withdrawal benefits with life payouts ("GMWBL") and...

  • Page 274
    ...for managed custody guarantee products ("MCG"). These derivatives are measured at estimated fair value and recorded in Contract owner account balances on the Consolidated Balance Sheets. Changes in estimated fair value, along with attributed fees collected, are reported in Other net realized capital...

  • Page 275
    ... cost of the securities over the value of the short-term investments. The Company believes the counterparties to the dollar rolls and repurchase agreements are financially responsible and that the counterparty risk is minimal. Recognition of Insurance Revenue and Related Benefits Premiums related to...

  • Page 276
    ... expected life of the related contracts in proportion to estimated gross profits in a manner consistent with DAC for these contracts. URR is reported in Future policy benefits and amortized into Fee income. Benefits and expenses for these products include claims in excess of related account balances...

  • Page 277
    ... loss or liability relating to insurance risk. The Company reviews contractual features, particularly those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. The assumptions used to account for both long and short...

  • Page 278
    ... and the accumulated postretirement benefit obligation ("APBO") for other postretirement plans on the Consolidated Balance Sheets. Net periodic benefit cost is determined using management estimates and actuarial assumptions to derive service cost, interest cost and expected return on plan assets for...

  • Page 279
    ... which awards remain outstanding. Both the Voya Financial, Inc. and the ING Group share-based compensation plans are subject to certain vesting conditions. The Company measures the cost of the share-based awards at their grant date fair value, based upon the market value of the stock, and recognizes...

  • Page 280
    ... The Company provides investment management services to, and has transactions with, various CLO entities, private equity funds, real estate funds, funds-of-hedge funds, single strategy hedge funds, insurance entities, securitizations and other investment entities in the normal course of business. In...

  • Page 281
    ... benefits existing on that date. The adoption had no effect on the Company's financial condition, results of operations or cash flows, as the guidance is consistent with that previously applied. Investment Companies In June 2013, the FASB issued ASU 2013-08, "Financial Services-Investment Companies...

  • Page 282
    ... and related party relationships. Provides a new scope exception for registered money market funds and similar unregistered money market funds, and ends the deferral granted to investment companies from applying the VIE guidance. • • • The provisions of ASU 2015-02 are effective for annual...

  • Page 283
    ... as a performance condition and should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved. The provisions of ASU 2014-12 are effective for annual periods...

  • Page 284
    ... after March 15, 2015. The Company does not expect ASU 2014-11 to have an impact on its financial condition or results of operations, as the Company has not historically met the requirements for sale accounting treatment for such secured borrowing arrangements. The Company is currently in the...

  • Page 285
    ... fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Represents OTTI reported as a component of Other comprehensive income (loss...

  • Page 286
    ... fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Represents OTTI reported as a component of Other comprehensive income (loss...

  • Page 287
    ... maturity portfolio by industry category as of the dates indicated: Gross Unrealized Capital Gains Gross Unrealized Capital Losses Amortized Cost Fair Value December 31, 2014 Communications ...Financial ...Industrial and other companies ...Utilities ...Transportation ...Total ...December 31, 2013...

  • Page 288
    ...for-sale, except those accounted for using the FVO. Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in AOCI and presented net of related changes in DAC, VOBA and Deferred income taxes. In addition, certain fixed...

  • Page 289
    ... 21.6 1.4 17.3 $4,298.5 $168.7 $9,526.4 $323.6 Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2013: More Than Six Six Months or Less...

  • Page 290
    ... capital losses aged more than twelve months, the average market value of the related fixed maturities was 96.2% and 89.4% of the average book value as of December 31, 2014 and 2013, respectively. Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities...

  • Page 291
    ... following tables summarize loan-to-value, credit enhancement and fixed floating rate details for RMBS and Other ABS in a gross unrealized loss position as of the dates indicated: Loan-to-Value Ratio Amortized Cost Unrealized Capital Losses < 20% > 20% < 20% > 20% December 31, 2014 RMBS and Other...

  • Page 292
    ... 31, 2014 Fixed Rate ...Floating Rate ...Total ...(1) $ 817.2 601.4 $1,418.6 $ 2.3 8.1 $10.4 $12.3 23.1 $35.4 $ 0.7 2.8 $ 3.5 For purposes of this table, subprime mortgages are included in Non-agency RMBS categories. Amortized Cost < 20% > 20% Loan-to-Value Ratio Unrealized Capital Losses < 20...

  • Page 293
    ... Company has not recorded an impairment. Unrealized losses on below investment grade securities are principally related to RMBS (primarily Alt-A RMBS) and ABS (primarily subprime RMBS) largely due to economic and market uncertainties including concerns over unemployment levels, lower interest rate...

  • Page 294
    ...payment default. Mortgage Loans on Real Estate The Company's mortgage loans on real estate are all commercial mortgage loans held for investment, which are reported at amortized cost, less impairment write-downs and allowance for losses. The Company diversifies its commercial mortgage loan portfolio...

  • Page 295
    ...loans at carrying value as of the dates indicated: 30 days or less past due 31 to 90 days past due 91 to 180 days past due 181 days or more past due Total As of December 31, 2014 ...As of December 31, 2013 ... $- - $- 5.1 $- - $- - $- 5.1 There were no mortgage loans in the Company's portfolio...

  • Page 296
    ... losses. The following table presents the DSC ratios as of the dates indicated: December 31, 2014(1) December 31, 2013(1) Debt Service Coverage Ratio: Greater than 1.5x ...>1.25x - 1.5x ...>1.0x - 1.25x ...Less than 1.0x ...Commercial mortgage loans secured by land or construction loans ...Total...

  • Page 297
    ...Balances do not include collective valuation allowance for losses. December 31, 2014(1) Gross Carrying % of Value Total December 31, 2013(1) Gross Carrying % of Value Total Commercial Mortgage Loans by Property Type: Retail ...Industrial ...Apartments ...Office ...Hotel/Motel ...Other ...Mixed Use...

  • Page 298
    ... U.S. dollar denominated. Includes loss on real estate owned that is classified as Other assets on the Consolidated Balance Sheets. The above tables include $7.8, $21.2 and $47.3 of write-downs related to credit impairments for the years ended December 31, 2014, 2013 and 2012, respectively, in...

  • Page 299
    ... on fixed maturities for which a portion of the OTTI loss was recognized in Other comprehensive income (loss) and the corresponding changes in such amounts for the periods indicated: Year Ended December 31, 2014 2013 2012 Balance at January 1 ...Additional credit impairments: On securities not...

  • Page 300
    ... Ended December 31, 2014 2013 2012 Fixed maturities ...Equity securities, available-for-sale ...Mortgage loans on real estate ...Policy loans ...Short-term investments and cash equivalents ...Other ...Gross investment income ...Less: investment expenses ...Net investment income ...(1) $4,001.0 12...

  • Page 301
    ...securities pledged ...Fixed maturities, at fair value option ...Equity securities, available-for-sale ...Derivatives ...Embedded derivatives-fixed maturities ...Embedded derivatives-product guarantees ...Other investments ...Net realized capital gains (losses) ...After-tax net realized capital gains...

  • Page 302
    ...a decrease in variable annuity account values, which are invested in certain indices. Using total return swaps, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of assets or a market index and the LIBOR rate, calculated by...

  • Page 303
    .... Managed custody guarantees: The Company issues certain credited rate guarantees on variable fixed income portfolios that represent stand-alone derivatives. The market value is partially determined by, among other things, levels of or changes in interest rates, prepayment rates and credit ratings...

  • Page 304
    ...of December 31, 2014 and 2013. The Company utilizes derivative contracts mainly to hedge exposure to variability in cash flows, interest rate risk, credit risk, foreign exchange risk and equity market risk. The majority of derivatives used by the Company are designated as product hedges, which hedge...

  • Page 305
    ... in short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by the Company are the source of noncash collateral posted, which is reported in Securities pledged on the Consolidated Balance Sheets. As of December 31, 2014, the...

  • Page 306
    ... Non-qualifying for hedge accounting(2) Interest rate contracts ...Foreign exchange contracts ...Equity contracts ...Credit contracts ...Managed custody guarantees ...Embedded derivatives: Within fixed maturity investments(2) ...Within annuity products(2) ...Within reinsurance agreements(3) ...Total...

  • Page 307
    ... or obtained from a third party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. When available, the estimated fair value of financial instruments is based on quoted prices in active markets that are readily and...

  • Page 308
    ... ...Equity contracts ...Credit contracts ...Cash and cash equivalents, short-term investments and shortterm investments under securities loan agreements ...Assets held in separate accounts ...Total assets ...Percentage of Level to total ...Liabilities: Derivatives: Annuity product guarantees...

  • Page 309
    ... ...Equity contracts ...Credit contracts ...Cash and cash equivalents, short-term investments and shortterm investments under securities loan agreements ...Assets held in separate accounts ...Total assets ...Percentage of Level to total ...Liabilities: Derivatives: Annuity product guarantees...

  • Page 310
    ...2014, $1.5 billion and $59.7 billion of a total fair value of $74.7 billion in fixed maturities, including securities pledged, were valued using unadjusted broker quotes and unadjusted prices obtained from pricing services, respectively, and verified through the review process. The remaining balance...

  • Page 311
    ... of guarantees and the Company's evaluation of the borrower's ability to compete in its relevant market. Using this data, the model generates estimated market values, which the Company considers reflective of the fair value of each privately placed bond. Equity securities, available-for-sale: Fair...

  • Page 312
    .... The actuarial and capital market assumptions for each liability are approved by each product's Chief Risk Officer ("CRO"), including an independent annual review by the CRO. Models used to value the embedded derivatives must comply with the Company's governance policies. Quarterly, an attribution...

  • Page 313
    ... years ended December 31, 2014 and 2013. The Company's policy is to recognize transfers in and transfers out as of the beginning of the reporting period. Level 3 Financial Instruments The fair values of certain assets and liabilities are determined using prices or valuation techniques that require...

  • Page 314
    ...: Fair Value Transfers Transfers Fair Value as of Net in to out of as of January 1 Income OCI Purchases Issuances Sales Settlements Level 3(3) Level 3(3) December 31 Change In Unrealized Gains (Losses) Included in Earnings(4) Fixed maturities, including securities pledged: U.S. Government agencies...

  • Page 315
    ...22.9 102.6 Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements ...- - Assets held in separate accounts(5) ...16.3 0.1 (1) (2) (3) (4) (5) Primarily U.S. dollar denominated. All gains and losses on Level 3 liabilities are classified as...

  • Page 316
    ...and fixed income fund groups and between equity fund groups and interest rates. The correlations are based on historical fund returns and swap rates from external sources. Nonperformance Risk: For the estimate of the fair value of embedded derivatives associated with the Company's product guarantees...

  • Page 317
    ... near or beyond retirement age and contracts that have accumulated their maximum GMWB or GMWBL benefit amount. There is also a higher utilization rate, though indirectly, for contracts which are highly "in the money". The chart below provides the GMWBL account value by current age group and average...

  • Page 318
    Voya Financial, Inc. Notes to the Consolidated Financial Statements (Dollar amounts in millions, unless otherwise stated) (4) The Company makes dynamic adjustments to lower the lapse rates for contracts that are more "in the money." The table below shows an analysis of policy account values ...

  • Page 319
    ... near or beyond retirement age and contracts that have accumulated their maximum GMWB or GMWBL benefit amount. There is also a higher utilization rate, though indirectly, for contracts which are highly "in the money". The chart below provides the GMWBL account value by current age group and average...

  • Page 320
    Voya Financial, Inc. Notes to the Consolidated Financial Statements (Dollar amounts in millions, unless otherwise stated) (4) The Company makes dynamic adjustments to lower the lapse rates for contracts that are more "in the money." The table below shows an analysis of policy account values ...

  • Page 321
    Voya Financial, Inc. Notes to the Consolidated Financial Statements (Dollar amounts in millions, unless otherwise stated) Changes in fund correlations may increase or decrease the fair value depending on the direction of the movement and the mix of funds. Changes in partial withdrawals may increase ...

  • Page 322
    ... Value Value Assets: Fixed maturities, including securities pledged ...$ 74,659.4 Equity securities, available-for-sale ...271.8 Mortgage loans on real estate ...9,794.1 Policy loans ...2,104.0 Limited partnerships/corporations ...363.2 Cash, cash equivalents, short-term investments and short-term...

  • Page 323
    ... capital gains (losses). In many cases, the fair value estimates cannot be substantiated by comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instruments. In evaluating the Company's management of interest rate, price and liquidity risks...

  • Page 324
    ...: Amortization ...Interest accrued(1) ...Net amortization included in Consolidated Statements of Operations ...Change in unrealized capital gains/losses on available-for-sale securities ...Balance at December 31, 2014 ...(1) $3,666.9 590.3 (846.4) 243.6 (602.8) (432.8) 3,221.6 395.8 (669.0) 233...

  • Page 325
    ...2014 and 2013: 2014 2013 Future policy benefits: Individual and group life insurance contracts ...Guaranteed benefits on annuity contracts, and payout contracts with life contingencies ...Accident and health ...Total ...Contract owner account balances: GICs ...Universal life-type contracts ...Fixed...

  • Page 326
    Voya Financial, Inc. Notes to the Consolidated Financial Statements (Dollar amounts in millions, unless otherwise stated) The Company also offers optional guaranteed withdrawal benefit provisions on its indexed annuity products. This provision guarantees an annual withdrawal amount for life that is ...

  • Page 327
    ... annuity contracts as of December 31, 2014 and 2013: Area Assumptions/Basis for Assumptions Data used Mean investment performance Based on 1,000 investment performance scenarios. GMDB: The mean investment performance varies by fund group. In general, the Company groups separate account returns...

  • Page 328
    ..., 2014, 2013 and 2012: Variable Life and Universal Life GMAB/ GMWB Stabilizer and MCGs(1) GMDB GMIB GMWBL Separate account liability at December 31, 2014 ...Separate account liability at December 31, 2013 ...Additional liability balance: Balance at January 1, 2012 ...Incurred guaranteed benefits...

  • Page 329
    ... minimum guaranteed benefit for retail variable annuity contracts were as follows as of December 31, 2014 and 2013: In the Event of Death GMDB December 31, 2014 At Annuitization, Maturity, or Withdrawal GMAB/ GMWB GMIB GMWBL Annuity Contracts: Minimum Return or Contract Value Separate account value...

  • Page 330
    ...Account balances of contracts with guarantees invested in variable separate accounts were as follows as of December 31, 2014 and 2013: December 31, 2014 December 31, 2013 Equity securities (including mutual funds): Equity funds ...Bond funds ...Balanced funds ...Money market funds ...Other ...Total...

  • Page 331
    ... the years ended December 31, 2014, 2013 and 2012: 2014 2013 2012 Premiums: Direct premiums ...Reinsurance assumed ...Reinsurance ceded ...Net premiums ...Fee income: Gross fee income ...Reinsurance ceded ...Net fee income ...Interest credited and other benefits to contract owners / policyholders...

  • Page 332
    ... acquisition of ReliaStar Life Insurance Company in 2000 that represent the right by the mutual fund advisor company to manage the assets that are held in the mutual funds business. Customer relationship lists from the acquisition of CitiStreet, LLC in 2008 represent Value of Customer Relationship...

  • Page 333
    ... any indefinite-lived intangibles other than goodwill. 10. Share-based Incentive Compensation Plans ING U.S., Inc. 2013 Omnibus Employee Incentive Plan and Voya Financial, Inc. 2014 Omnibus Employee Incentive Plan The Company has provided equity-based compensation awards to its employees principally...

  • Page 334
    ... the applicable performance criteria and service conditions are met. During the year ended December 31, 2014, the Company awarded only RSUs and PSUs under the 2013 Omnibus Plan. PSUs awarded during the year ended December 31, 2014 entitle recipients to receive, upon vesting, a number of shares of...

  • Page 335
    ... the closing price of a share of Company common stock on the New York Stock Exchange on the trading day immediately preceding the date such award vests. As of December 31, 2014, the Company had 171,620 phantom RSUs and 92,495 phantom PSUs, respectively, outstanding to its employees. ING Group Equity...

  • Page 336
    ... the relevant performance conditions have been satisfied, as determined by the Committee and the Supervisory Board of ING Group. Equity Compensation Plan: In 2012 and 2013, certain employees of the Company (principally those employed within the Investment Management business) received equity-based...

  • Page 337
    ... represent the Company's allocated portion of ING Group share-based compensation plans and ING Group stock option plans. The Company recognized no income tax benefit due to valuation allowances for the periods 2012 and 2013. See the Income Taxes Note to these Consolidated Financial Statements for...

  • Page 338
    ...$ 4.7 0.23 Excludes 70,880 of RSUs-Deal Incentive Awards granted in 2013 that proportionally vest upon sales of the Company's stock by ING Group. The total grant date fair value of shares vested for the year ended December 31, 2014 was $2.8, $20.2 and $22.9 for RSUs, RSUs-Deal Incentive Awards and...

  • Page 339
    ... of a number of shares of the Company's common shares having an aggregate repurchase price not exceeding $300.0. On July 31, 2014, the Company's Board of Directors increased the authorization under the Direct Share Repurchase Program by an additional $500.0. On February 5, 2015, the Company's Board...

  • Page 340
    ... in accordance with their terms before January 1, 2017 by holders other than ING Group or its affiliates, if any. Earnings Per Share The following table presents a reconciliation of Net income (loss) and shares used in calculating basic and diluted net income (loss) per common share for the periods...

  • Page 341
    ... Net Income (Loss) 2014 2013 2012 Statutory Capital and Surplus 2014 2013 Minimum Capital Requirements(1) 2014 Subsidiary Name (State of Domicile): Voya Insurance and Annuity Company (IA) ...Voya Retirement Insurance and Annuity Company (CT) ...Security Life of Denver Insurance Company ("SLD...

  • Page 342
    ...: Dividends Permitted without Approval 2015 2014 2013 Subsidiary Name (State of domicile): Voya Insurance and Annuity Company (IA) ...Voya Retirement Insurance and Annuity Company (CT) ...Security Life of Denver Insurance Company (CO) ...ReliaStar Life Insurance Company (MN) ...(1) $394.1(4) $216...

  • Page 343
    ...Voya Insurance and Annuity Company ("VIAC"), formerly known as ING USA, paid a $216.0 ordinary dividend. Iowa Insurance Division approved VIAC's 2013 return of capital distribution. In May 2014, Voya Retirement Insurance and Annuity Company ("VRIAC"), formerly known as ING Life Insurance and Annuity...

  • Page 344
    ...Operations Restrictions-Liquidity and Capital Resources-Dividends and Returns of Capital from Subsidiaries in Part II, Item 7. of this Annual Report on Form 10-K. Captive Reinsurance Subsidiaries Voya Financial, Inc.'s special purpose life reinsurance captive insurance company subsidiaries domiciled...

  • Page 345
    ...investments and funding levels. Effective September 8, 2014, a plan amendment was approved changing the Plan's name from the ING U.S. Retirement Plan to the Voya Retirement Plan (the "Retirement Plan"). The Retirement Plan is a tax qualified defined benefit plan, the benefits of which are guaranteed...

  • Page 346
    ... Benefits 2014 2013 Change in benefit obligation: Benefit obligations, January 1 ...Service cost ...Interest cost ...Plan participants' contribution ...Net actuarial (gains) losses ...Benefits paid ...Benefit obligations, December 31 ...Change in plan assets: Fair value of plan net assets...

  • Page 347
    ... benefit plans with a projected benefit obligation and an accumulated benefit obligation in excess of plan assets as of December 31, 2014 and 2013: Pension Plans 2014 2013 Other Postretirement Benefits 2014 2013 Projected benefit obligation ...Accumulated benefit obligation ...Fair value of plan...

  • Page 348
    ... Postretirement Benefits Pension Plans Amortization of prior service cost (credit) ...Assumptions $(10.4) $(3.3) The weighted-average assumptions used in determining benefit obligations were as follows: Pension Plans 2014 2013 Other Postretirement Benefits 2014 2013 Discount rate ...Rate of...

  • Page 349
    ...Retirement Plan's financial management is to promote stability and, to the extent appropriate, growth in funded status (i.e. the ratio of market value of assets to liabilities). The investment strategy for the Fund balances the requirement to generate returns with the need to control risk. The asset...

  • Page 350
    ..., 2014 and 2013: Actual Asset Allocation 2014 2013 Equity securities: Target allocation range ...Large-cap domestic ...Small/Mid-cap domestic ...International commingled funds ...Other ...Total equity securities ...Fixed maturities: Target allocation range ...U.S. Treasuries, short term investments...

  • Page 351
    ... ...Commercial mortgage-backed securities ...Other asset-backed securities ...Total fixed maturities ...Equity securities: Large-cap domestic ...Small/Mid-cap domestic ...International commingled funds(3) ...Limited partnerships(4) ...Total equity securities ...Other investments: Real estate...

  • Page 352
    ... ...Commercial mortgage-backed securities ...Other asset-backed securities ...Total fixed maturities ...Equity securities: Large-cap domestic ...Small/Mid-cap domestic ...International commingled funds(3) ...Limited partnerships(4) ...Total equity securities ...Other investments: Real estate...

  • Page 353
    ... has a fund balance of $102.0 that has an investment objective to achieve long-term growth primarily by investing in a diversified portfolio of equity securities of companies located in any country other than the United States. Silchester clients may contribute to and redeem moneys from the funds on...

  • Page 354
    ... Equity securities: Fair values are based upon a quoted market price determined in an active market and are included in Level 1. The valuations obtained from broker-dealers are non-binding. Real estate: Real estate is based on unobservable inputs. The fair value used relies on the investment manager...

  • Page 355
    ... plans in 2015. Defined Contribution Plans Certain of the Company's subsidiaries sponsor defined contribution plans. The largest defined contribution plan is the Voya Financial Savings Plan and ESOP (the "Savings Plan"). The assets of the Savings Plan are held in independently administered funds...

  • Page 356
    ... 2012 Fixed maturities, net of OTTI ...Equity securities, available-for-sale ...Derivatives ...DAC/VOBA adjustment on available-for-sale securities ...Sales inducements adjustment on available-forsale securities ...Other ...Unrealized capital gains (losses), before tax ...Deferred income tax asset...

  • Page 357
    ...December 31, 2014 Income After-Tax Tax Amount Available-for-sale securities: Fixed maturities ...Equity securities ...Other ...OTTI ...Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations ...DAC/VOBA ...Sales inducements ...Change in...

  • Page 358
    ... capital gains (losses) in the Consolidated Statements of Operations ...DAC/VOBA ...Sales inducements ...Change in unrealized gains/losses on available-for-sale securities ...Derivatives: Derivatives ...Adjustments related to effective cash flow hedges for amounts recognized in Net investment income...

  • Page 359
    ... capital gains (losses) in the Consolidated Statements of Operations ...DAC/VOBA ...Sales inducements ...Change in unrealized gains/losses on available-for-sale securities ...Derivatives: Derivatives ...Adjustments related to effective cash flow hedges for amounts recognized in Net investment income...

  • Page 360
    ..., 2014 2013 2012 Income (loss) before income taxes ...Tax rate ...Income tax expense (benefit) at federal statutory rate ...Tax effect of: Valuation allowance ...Dividend received deduction ...Audit settlement ...State tax expense (benefit) ...Noncontrolling interest ...Tax credits ...Nondeductible...

  • Page 361
    ... that give rise to deferred tax assets and deferred tax liabilities were as follows as of the dates indicated: December 31, 2014 2013 Deferred tax assets Federal and state loss carryforwards ...Investments ...Insurance reserves ...Compensation and benefits ...Other assets ...Total gross assets...

  • Page 362
    ... 31, 2014 and 2013, that arose directly from tax deductions related to equity compensation greater than compensation recognized for financial reporting. Additional paid-in capital will be increased by $10.2 if and when such deferred tax assets are ultimately realized. The Company uses tax law...

  • Page 363
    ... interest expense and penalties, if applicable, related to unrecognized tax benefits in tax expense net of federal income tax. The total amounts of gross accrued interest and penalties on the Company's Consolidated Balance Sheets as of December 31, 2014 and 2013 were $7.0 and $6.2, respectively. The...

  • Page 364
    ...January 15, 2013. ING Financial Markets, LLC, an affiliate, served as Joint Book Running Manager for the 2022 Notes and was paid $0.3 for its services. The Company used the proceeds of the 2022 Notes to repay $500.0 of the direct borrowings under a $3.5 billion Revolving Credit Agreement ("Revolving...

  • Page 365
    ... commencing on August 15, 2013. ING Financial Markets, LLC, an affiliate, served as Joint Book Running Manager for the 2018 Notes and was paid $0.3 for its services. The Company made payments totaling $850.0 on the Term Loan portion of the Company's Senior Unsecured Credit Facility from the proceeds...

  • Page 366
    ... and Community Development ("DECD") loaned Voya Retirement Insurance and Annuity Company ("VRIAC"), formerly known as ING Life Insurance and Annuity Company, $9.9 (the "DECD Loan") in connection with the development of a corporate office facility located at One Orange Way, Windsor, Connecticut (the...

  • Page 367
    ...10.6 as security for its repayment obligations with respect to the loan. As of December 31, 2014 and 2013, the amount of the loan outstanding was $4.9, which is reflected in Longterm debt on the Consolidated Balance Sheets. Credit Facilities The Company maintains credit facilities used primarily for...

  • Page 368
    ...Inc. / Security Life of Denver International Limited ...Voya Financial, Inc...Voya Financial, Inc...Voya Financial, Inc. / Roaring River II, LLC ...Voya Financial, Inc. / Roaring River IV, LLC ...Total ...Secured facilities ...Unsecured and uncommitted ...Unsecured and committed ...Total ...ING Bank...

  • Page 369
    ... rating of the Company. The Company was to pay interest equal to LIBOR plus 200 bps on direct borrowings and an issuance fee of 200 bps for LOCs. Immediately following the closing of the Revolving Credit Agreement, Voya Financial, Inc. drew $500.0 of direct borrowings to replace internally funded...

  • Page 370
    ... twelve months with all remaining amounts due by April 20, 2014. During February 2013, Voya Financial, Inc. made payments totaling $850.0 on the Syndicated Bank Term Loan from the proceeds of the 2018 Notes. On May 21, 2013, the Company used the proceeds of the 2053 Notes for the repayment of the...

  • Page 371
    ...(2) ...Total restricted assets ...(1) (2) $1,614.8 76.3 241.7 1,184.6 $3,117.4 $2,333.4 99.1 251.0 1,465.7 $4,149.2 Included in Other investments in the Consolidated Balance Sheets. Includes the fair value of loaned securities of $545.9 and $435.4 as of December 31, 2014 and 2013, respectively...

  • Page 372
    ... 31, 2013, assets with a market value of approximately $294.1, collateralized the FHLB LOC. Assets pledged to the FHLBs are included in Fixed maturities, availablefor-sale, on the Consolidated Balance Sheets. Litigation and Regulatory Matters The Company is a defendant in a number of litigation...

  • Page 373
    ...), in which sponsors of 401(k) plans governed by the Employee Retirement Income Security Act ("ERISA") claim that ING Life Insurance and Annuity Company (now known as Voya Retirement Insurance and Annuity Company, "VRIAC") has entered into revenue sharing agreements with mutual funds and others in...

  • Page 374
    ...13.5 8.2 104.6 7.9 $134.2 The following table summarizes assets and liabilities from transactions with related parties as of the dates indicated: December 31, 2014 Assets Liabilities December 31, 2013 Assets Liabilities NN Group ...ING Group ...ING Bank ...Other ...Total ... $ 0.1 1.9 12.9 2.2 $17...

  • Page 375
    ... by SLDI of contributed capital as cash collateral into a funds withheld trust account to support its reinsurance obligations to Voya Insurance and Annuity Company ("VIAC"), formerly known as ING USA, the $1.5 billion contingent capital LOCs issued under the contingent capital LOC facility were...

  • Page 376
    ... premiums to be paid. As of December 31, 2014 and 2013, the maximum potential future exposure to the Company on credit default swaps supported by the NN Group guarantee was $33.1 and $43.5, respectively. Operating Agreements Voya Investment Management LLC ("VIM") (formerly ING Investment Management...

  • Page 377
    ...by ING Group. Net allocations were $2.2 and $6.6 for the years ended December 31, 2013 and 2012, respectively. 19. Consolidated Investment Entities The Company provides investment management services to, and has transactions with, various collateralized loan obligations, private equity funds, single...

  • Page 378
    ...included in Assets related to consolidated investment entities to a group of private equity funds that are managed by Pomona Management LLC, also a subsidiary of the Company. The transaction resulted in a net pre-tax loss of $91.9 in the second quarter of 2012. The transaction closed in two tranches...

  • Page 379
    ...as of the dates indicated: December 31, 2014 December 31, 2013 Assets of Consolidated Investment Entities VIEs-CLO entities: Cash and cash equivalents ...Corporate loans, at fair value using the fair value option ...Other assets ...Total CLO entities ...VOEs-Private equity funds and single strategy...

  • Page 380
    ... consolidated investment entities ...Assets held in separate accounts ...Total assets ...Future policy benefits and contract owner account balances ...Other liabilities ...Liabilities held in consolidated investment entities ...Liabilities related to separate accounts ...Total liabilities ...Equity...

  • Page 381
    ... consolidated investment entities ...Assets held in separate accounts ...Total assets ...Future policy benefits and contract owner account balances ...Other liabilities ...Liabilities held in consolidated investment entities ...Liabilities related to separate accounts ...Total liabilities ...Equity...

  • Page 382
    ... December 31, 2014 Revenues: Net investment income ...Fee income ...Premiums ...Net realized capital losses ...Other income ...Income related to consolidated investment entities ...Total revenues ...Benefits and expenses: Policyholder benefits and Interest credited and other benefits to contract...

  • Page 383
    ... December 31, 2013 Revenues: Net investment income ...Fee income ...Premiums ...Net realized capital losses ...Other income ...Income related to consolidated investment entities ...Total revenues ...Benefits and expenses: Policyholder benefits and Interest credited and other benefits to contract...

  • Page 384
    ... in the investment products accounted for as equity method (private equity and real estate partnership funds) and available-for-sale investments (CLOs). The net income arising from consolidation of CLOs is completely attributable to other investors in these CLOs, as the Company's share has been...

  • Page 385
    ... private equity funds and single strategy hedge funds are measured and reported at fair value in the Company's Consolidated Financial Statements. Changes in the fair value of consolidated investment entities are recorded as a separate line item within Income (loss) related to consolidated investment...

  • Page 386
    ...the Consolidated Financial Statements (Dollar amounts in millions, unless otherwise stated) CLO notes: The CLO notes are backed by a diversified loan portfolio consisting primarily of senior secured floating rate leveraged loans. Repayment risk is segmented into tranches with credit ratings of these...

  • Page 387
    ... manager. The valuations typically reflect the fair value of the Company's capital account balance of each fund investment, including unrealized capital gains (losses), as reported in the financial statements of the respective investee fund as of the respective year end or the latest available date...

  • Page 388
    ... redeemed at NAV within 90 days because of inherent restriction on near term redemptions. Therefore, these investments are classified within Level 3 of the fair value hierarchy. As of December 31, 2014 and 2013, certain private equity funds maintained revolving lines of credit of $550.0 and $400...

  • Page 389
    ... hierarchy levels of consolidated investment entities as of December 31, 2013: Level 1 Level 2 Level 3 Total Assets VIEs-CLO entities: Cash and cash equivalents ...Corporate loans, at fair value using the fair value option ...VOEs-Private equity funds and single strategy hedge funds: Cash and cash...

  • Page 390
    ... of Level 3 December 31 Assets VIEs-CLO entities: Corporate loans, at fair value using the fair value option ...$ 25.5 VOEs-Private equity funds and single strategy hedge funds: Limited partnerships/ corporations, at fair value ...2,734.1 Total assets, at fair value ...$2,759.6 Liabilities VIEs-CLO...

  • Page 391
    ...as of December 31 Assets VIEs-CLO entities: Corporate loans, at fair value using the fair value option ...$ - VOEs-Private equity funds and single strategy hedge funds: Limited partnerships/ corporations, at fair value ...2,931.2 Total assets, at fair value ...$2,931.2 Liabilities VIEs-CLO entities...

  • Page 392
    ... it holds investments. These investments are accounted for as investments available-for-sale as described in the Fair Value Measurements (excluding Consolidated Investment Entities) Note to these Consolidated Financial Statements and unrealized capital gains (losses) on these securities are recorded...

  • Page 393
    ... provides investment products and retirement solutions through a broad range of traditional and alternative asset classes, geographies and styles, in separate accounts, pooled accounts, annuity portfolios and mutual funds. Products and services are offered to institutional clients, including public...

  • Page 394
    ... to guaranteed benefits are excluded from operating results, including the impacts related to changes in the Company's nonperformance spread; Income (loss) related to businesses exited through reinsurance or divestment (including net investment gains (losses) on securities sold and expenses directly...

  • Page 395
    ... to Income (loss) before income taxes for the periods indicated: Year Ended December 31, 2013 2012 2014 Retirement Solutions: Retirement ...Annuities ...Investment Management ...Insurance Solutions: Individual Life ...Employee Benefits ...Total Ongoing Business ...Corporate ...Closed Blocks: Closed...

  • Page 396
    ... changes related to guaranteed benefits are excluded from Operating revenues, including the impacts related to changes in the Company's nonperformance spread; Revenues related to businesses exited through reinsurance or divestment (including net investment gains (losses) on securities sold directly...

  • Page 397
    ...to Total revenues for the periods indicated: Year Ended December 31, 2014 2013 2012 Retirement Solutions: Retirement ...Annuities ...Investment Management ...Insurance Solutions: Individual Life ...Employee Benefits ...Total Ongoing Business ...Corporate ...Closed Blocks: Closed Block Institutional...

  • Page 398
    ... the Company's segments as of the dates indicated: December 31, 2014 December 31, 2013 Retirement Solutions: Retirement ...Annuities ...Investment Management ...Insurance Solutions: Individual Life ...Employee Benefits ...Total Ongoing Business ...Corporate ...Closed Blocks: Closed Block Variable...

  • Page 399
    ...to the Consolidated Financial Statements (Dollar amounts in millions, unless otherwise stated) equity method for purposes of illustrating the consolidating presentation. Equity in the subsidiaries is therefore reflected in the Parent Issuer's and Subsidiary Guarantor's Investment in subsidiaries and...

  • Page 400
    ... Assets: Investments: Fixed maturities, available-for-sale, at fair value ...Fixed maturities, at fair value using the fair value option ...Equity securities, available-for-sale, at fair value ...Short-term investments ...Mortgage loans on real estate, net of valuation allowance ...Policy loans...

  • Page 401
    ... related to consolidated investment entities: Collateralized loan obligations notes, at fair value using the fair value option ...- Other liabilities ...- Liabilities related to separate accounts ...- Total liabilities ...Shareholders' equity: Total Voya Financial, Inc. shareholders' equity...

  • Page 402
    ... Assets: Investments: Fixed maturities, available-for-sale, at fair value ...Fixed maturities, at fair value using the fair value option ...Equity securities, available-for-sale, at fair value ...Short-term investments ...Mortgage loans on real estate, net of valuation allowance ...Policy loans...

  • Page 403
    ... related to consolidated investment entities: Collateralized loan obligations notes, at fair value using the fair value option ...- Other liabilities ...- Liabilities related to separate accounts ...- Total liabilities ...Shareholder's equity: Total Voya Financial, Inc. shareholder's equity...

  • Page 404
    ...: Net investment income (loss) ...Changes in fair value related to collateralized loan obligations ...Total revenues ...Benefits and expenses: Policyholder benefits ...Interest credited to contract owner account balance ...Operating expenses ...Net amortization of Deferred policy acquisition costs...

  • Page 405
    ...: Net investment income (loss) ...Changes in fair value related to collateralized loan obligations ...Total revenues ...Benefits and expenses: Policyholder benefits ...Interest credited to contract owner account balance ...Operating expenses ...Net amortization of Deferred policy acquisition costs...

  • Page 406
    ...: Net investment income (loss) ...Changes in fair value related to collateralized loan obligations ...Total revenues ...Benefits and expenses: Policyholder benefits ...Interest credited to contract owner account balance ...Operating expenses ...Net amortization of Deferred policy acquisition costs...

  • Page 407
    ...Income tax expense (benefit) related to items of other comprehensive income (loss) ...Other comprehensive income (loss), after tax ...Comprehensive income (loss) ...Less: Comprehensive income (loss) attributable to noncontrolling interest ...Comprehensive income (loss) attributable to Voya Financial...

  • Page 408
    ...Income tax expense (benefit) related to items of other comprehensive income (loss) ...Other comprehensive income (loss), after tax ...Comprehensive income (loss) ...Less: Comprehensive income (loss) attributable to noncontrolling interest ...Comprehensive income (loss) attributable to Voya Financial...

  • Page 409
    ...Income tax expense (benefit) related to items of other comprehensive income (loss) ...Other comprehensive income (loss), after tax ...Comprehensive income (loss) ...Less: Comprehensive income (loss) attributable to noncontrolling interest ...Comprehensive income (loss) attributable to Voya Financial...

  • Page 410
    ...Fixed maturities ...Equity securities, available-for-sale ...Mortgage loans on real estate ...Limited partnerships/corporations ...Acquisition of: Fixed maturities ...Equity securities, available-for-sale ...Mortgage loans on real estate ...Limited partnerships/corporations ...Short-term investments...

  • Page 411
    ... Maturities and withdrawals from investment contracts ...- - Debt issuance costs ...(16.8) - Intercompany loans with maturities of more than three months ...- - Net (repayments of) proceeds from short-term intercompany loans ...- 24.3 Return of capital contributions and dividends to parent ...- (795...

  • Page 412
    ...Fixed maturities ...Equity securities, available-for-sale ...Mortgage loans on real estate ...Limited partnerships/corporations ...Acquisition of: Fixed maturities ...Equity securities, available-for-sale ...Mortgage loans on real estate ...Limited partnerships/corporations ...Short-term investments...

  • Page 413
    ...(2.3) Net (repayments of) proceeds from short-term intercompany loans ...(319.1) 125.4 11.2 Return of capital contributions and dividends to parent ...- (987.0) (1,624.0) Contributions of capital from parent ...- 280.0 1,782.3 Borrowings of consolidated investment entities ...- - 196.5 Repayments of...

  • Page 414
    ...-sale ...Mortgage loans on real estate ...Loan-Dutch State obligation ...Limited partnerships/corporations ...Acquisition of: Fixed maturities ...Equity securities, available-for-sale ...Mortgage loans on real estate ...Limited partnerships/corporations ...Short-term investments, net ...Policy loans...

  • Page 415
    ...- Net (repayments of) proceeds from short-term intercompany loans ...(2,037.3) - (102.3) Return of capital contributions and dividends to parent ...- (733.0) (893.0) Contributions of capital from parent ...- - 400.0 Borrowings of consolidated investment entities ...- - 152.6 Repayments of borrowings...

  • Page 416
    ... Quarterly Financial Data The unaudited quarterly results of operations for 2014 and 2013 are summarized in the table below: Three Months Ended, March 31, June 30, September 30, December 31, ($ in millions, except per share amounts) 2014 Total revenues ...Total benefits and expenses ...Income (loss...

  • Page 417
    ... mortgage-backed securities ...Commercial mortgage-backed securities ...Other asset-backed securities ...Total fixed maturities, including securities pledged ...Equity securities, available-for-sale ...Short-term investments ...Mortgage loans on real estate ...Policy loans ...Limited partnerships...

  • Page 418
    ... Financial Information of Parent Balance Sheets (In millions, except share data) As of December 31, 2014 2013 Assets Investments: Equity securities, available-for-sale, at fair value ...Derivatives ...Investments in subsidiaries ...Total investments ...Cash and cash equivalents ...Short-term...

  • Page 419
    ... II Condensed Financial Information of Parent Statements of Operations For the Years Ended December 31, 2014, 2013 and 2012 (In millions) Year Ended December 31, 2014 2013 2012 Revenues: Net investment income ...$ Net realized capital gains (losses) ...Other revenue ...Total revenues ...Expenses...

  • Page 420
    ...Parent Statements of Comprehensive Income For the Years Ended December 31, 2014, 2013 and 2012 (In millions) Year Ended December 31, 2014 2013 2012 Net income (loss) available to Voya Financial, Inc.'s common shareholders ...Other comprehensive income (loss), after tax ...Comprehensive income (loss...

  • Page 421
    ...of equity securities, available-for-sale ...Acquisition of equity securities, available-for-sale ...Derivatives, net ...Short-term intercompany loans issued to subsidiaries with maturities more than three months ...Net maturity of intercompany loans to subsidiaries ...Return of capital contributions...

  • Page 422
    ...than three months ...Short-term debt, net ...Debt insurance costs ...Net (repayments of) proceeds from loans to subsidiaries ...Proceeds from issuance of common stock, net ...Share-based compensation ...Common stock acquired-Share buyback ...Dividends paid ...Net cash (used in) provided by financing...

  • Page 423
    ... Depository Shares listed on the New York Stock Exchange. In 2009, ING Group announced the anticipated separation of its global banking and insurance businesses, including the divestiture of the Company. On April 11, 2013, the Company announced plans to rebrand in the future as Voya Financial, Inc...

  • Page 424
    ...securities. Borrowings by Voya Alternative Asset Management LLC ("VAAM") occur to enable VAAM to make capital contributions to the Voya Multi-Strategy Opportunity Fund LLC ("the fund"), the fund that it manages. The applicable variable interest rate is equal to the rate of return on capital invested...

  • Page 425
    ... at the prevailing market interest rate for similar third-party borrowings for securities. Long-term Debt The following table summarizes Voya Financial, Inc.'s long-term debt securities for the periods indicated: Interest Rate As of December 31, 2014 2013 Maturity 5.5% Senior Notes, due 2022...

  • Page 426
    ... on the securities lending agreement by the Master Trust, Voya Financial, Inc. is required to indemnify the third-party bank for the outstanding obligations of the Master Trust. These agreements and the related indemnifications amounted to $750.0 and $1.5 billion as of December 31, 2014 and 2013...

  • Page 427
    ... Inc...Security Life of Denver Insurance Company ...Voya Financial Products Company, Inc...Total ... $795.0 32.0 75.0 $902.0 $ 987.0 447.0 - $1,434.0 $733.0 80.0 - $813.0 5. Income Taxes As of December 31, 2014 and 2013, Voya Financial, Inc. held deferred tax assets related to loss and credit...

  • Page 428
    ... in the Income Taxes Note to these Consolidated Financial Statements. As of December 31, 2014 and 2013, Voya Financial, Inc. has recognized deferred tax assets of $398.2 and $204.4, respectively, primarily related to federal net operating loss carryforwards and AMT credit carryforwards. Tax Sharing...

  • Page 429
    ... Segment 2014 Retirement Solutions: Retirement ...Annuities ...Insurance Solutions: Individual Life ...Employee Benefits ...Investment Management ...Corporate ...Closed Blocks: Variable Annuity ...Institutional Spread Products ...Other ...Total ...2013 Retirement Solutions: Retirement ...Annuities...

  • Page 430
    ... Retirement ...Annuities ...Insurance Solutions: Individual Life ...Employee Benefits ...Investment Management ...Corporate ...Closed Blocks: Variable Annuity ...Institutional Spread Products ...Other ...Total ...(1) Net Investment Income(1)(2) Premiums Interest Credited and and Fee Other Benefits...

  • Page 431
    Voya Financial, Inc. Schedule IV Reinsurance Years Ended December 31, 2014, 2013 and 2012 (In millions) Percentage of Assumed to Net Gross Ceded Assumed Net 2014 Life insurance in force ...Premiums: Life insurance ...Accident and health insurance ...Annuities ...Total premiums ...2013 Life ...

  • Page 432
    Voya Financial, Inc. Schedule V Valuation and Qualifying Accounts Years Ended December 31, 2014, 2013 and 2012 (In millions) Balance at January 1, Charged to Costs and Expenses Write-offs/ Payments/ Other Balance at December 31, 2014 Valuation allowance on deferred tax assets ...2013 Valuation ...

  • Page 433
    ... (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In the opinion of management, Voya Financial, Inc. has maintained effective internal control over financial reporting as of December 31, 2014. Attestation Report of the Company's Registered Public Accounting Firm...

  • Page 434
    ... Over Financial Reporting There were no changes to the Company's internal control over financial reporting as defined in Exchange Act Rule 13a-15(f) during the quarter ended December 31, 2014 that have materially affected, or are reasonably likely to materially affect, the Company's internal control...

  • Page 435
    ... the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Voya Financial, Inc. as of December 31, 2014 and 2013, and the related consolidated statements of operations, comprehensive income, changes in shareholders' equity and cash flows for...

  • Page 436
    ... ended December 31, 2014. The disclosure below relates solely to a limited legacy portfolio of guarantees, accounts, loans and relationships maintained by ING Bank N.V. ("ING Bank"), a subsidiary of ING Group and therefore an affiliate of Voya Financial, Inc., and does not relate to any activities...

  • Page 437
    ... relate to our Common Stock. For additional information about our equity compensation plans, see the Share-based Incentive Compensation Plans Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. (shares in millions) 2014 Omnibus Plan 2013 Omnibus Plan...

  • Page 438
    ... of Changes in Shareholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Independent Registered Public Accounting Firm 2. Schedule I-Summary of Investments Other than Investments in Affiliates Schedule II-Condensed Financial Information of Parent...

  • Page 439
    ... to Exhibit 10.16 to the Company's Quarterly Report on Form 10-Q (File No. 001-35897) filed on May 23, 2013) Indenture, dated as of August 1, 1993, between Aetna Life and Casualty Company and State Street Bank and Trust Company of Connecticut, National Association, as trustee (incorporated by...

  • Page 440
    ... to the Company's Current Report on Form 8-K (File No. 001-35897) filed on February 21, 2014) Credit Agreement, dated as of December 30, 2011, by and between Security Life of Denver International Limited, ING Bank N.V., London Branch, as administrative agent, and the Issuing Banks described therein...

  • Page 441
    ... Insurance and Annuity Company and Lincoln Life & Annuity Company of New York (incorporated by reference to Exhibit 10.28 to the Company's Amendment No. 1 to Registration Statement on Form S-1 (File No. 333-184847) filed on January 23, 2013) Master Services Agreement for Business Processes, dated...

  • Page 442
    ... ING U.S., Inc. and ING Groep N.V. dated as of May 7, 2013 (incorporated by reference to Exhibit 10.3 to the Company's Current Report on Form 8-K (File No. 001-35897) filed on May 7, 2014) Termination Agreement, dated May 3, 2013, between Security Life of Denver International Limited and ING Bank...

  • Page 443
    ...filed on January 23, 2013) Form of ING Group Long-Term Equity Ownership Plan Grant (incorporated by reference to Exhibit 10.57 to the Company's Amendment No. 1 to Registration Statement on Form S-1 (File No. 333-184847) filed on January 23, 2013) ING Group Standard Share Option Plan (incorporated by...

  • Page 444
    ..., 2013) ING Investment Management-Deferred Compensation Plan (incorporated by reference to Exhibit 10.70 to the Company's Amendment No. 1 to Registration Statement on Form S-1 (File No. 333184847) filed on January 23, 2013) ING Americas Insurance Holdings, Inc. Equity Compensation Plan (incorporated...

  • Page 445
    ... and an annual long -term incentive award to "Identified Staff" (as defined by the European Union's Capital Requirements Directive) pursuant to the ING Group Long-Term Sustainable Performance Plan (incorporated by reference to Exhibit 10.09 to the Company's Quarterly Report on Form 10- Q/A (File...

  • Page 446
    ... under the Voya Financial, Inc. 2013 Omnibus Employee Incentive Plan (incorporated by reference to Exhibit 10.95 to the Company's Annual Report on Form 10-K (File No. 001-35897) filed on March 10, 2014) Share Repurchase Agreement, dated as of March 18, 2014, between the Company and ING Groep...

  • Page 447
    ...* * + XBRL Taxonomy Extension Calculation Linkbase XBRL Taxonomy Extension Definition Linkbase XBRL Taxonomy Extension Label Linkbase XBRL Taxonomy Extension Presentation Linkbase Filed herewith This exhibit is a management contract or compensatory plan or arrangement 424

  • Page 448
    ... report to be signed on its behalf by the undersigned, thereunto duly authorized. Voya Financial, Inc. (Registrant) February 27, 2015 (Date) By: /s/ Ewout L. Steenbergen Ewout L. Steenbergen Executive Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer...

  • Page 449
    Performance Graph The following graph compares an investment in the Company's common stock from May 2, 2013 (the date of the Company's initial public offering) through December 31, 2014, against (i) an investment in the S&P 500 index and (ii) an investment in the S&P 500 Financials Index. The graph ...

  • Page 450
    ..., 2014, each of which is available on the company's investor website at investors.voya.com. Voya Financial Calculation and Reconciliation of Ongoing Business Adjusted Operating Return on Equity and US GAAP Return on Equity ($ in millions, unless otherwise indicated) GAAP Return on Equity Net income...

  • Page 451
    ... Business Corporate ...Closed Blocks Institutional Spread Products and Other ...Total operating earnings before income taxes ...Income taxes (based on an assumed tax rate of 35%) ...Operating earnings, after-tax ...Closed Block Variable Annuity, after-tax ...Net investment gains (losses) and related...

  • Page 452
    b Reconciliation of Financial Leverage to Short-term and Long-term Debt ($ in millions) As of December 31, 2014 As of December 31, 2013 As of December 31, 2012 Short-term debt ...Long-term debt ...Total Debt ...Less operating leverage ...Plus loans from subsidiaries ...Financial Leverage ...4 $ -...

  • Page 453
    ... under "Risk Factors" and "Management's Discussion and Analysis of Results of Operations and Financial Condition - Trends and Uncertainties" in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 27, 2015. Design by...

  • Page 454
    Voya Financial 230 Park Avenue New York, NY 10169 voya.com