Voya 2014 Annual Report Download - page 133

The Insurance Solutions business provides its products and services through two segments: Individual Life
and Employee Benefits:
• Our Individual Life segment provides wealth protection and transfer opportunities through universal,
variable and term life products. Our customers range across a variety of age groups and income levels.
We distribute our product offering through three main channels: our independent sales channel, our
strategic distribution channel and our specialty markets channel. Our independent sales channel
consists of a large network of independent general agents and marketing companies who interact with
the majority of licensed independent life insurance agents in the United States. Our strategic
distribution channel encompasses a network of independent managing directors who support a large
team of producers who engage with our broker-dealers to sell a range of products including our
branded life, annuity and mutual funds. Finally, our specialty markets channel focuses on alternative
distribution and consists of a large team of producers, in addition to banks, life insurance quote
agencies and internet 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, TPAs and private exchanges. In
the voluntary market, policies are marketed to employees at the worksite through enrollment firms,
technology partners and brokers.
In addition to our Ongoing Business, we also have Corporate and Closed Blocks segments. Corporate
includes our corporate operations and corporate level assets and financial obligations. The Corporate segment
includes investment income on assets backing surplus in excess of amounts held at the segment level, financing
and interest expenses, other items not allocated to segments, such as certain expenses and liabilities of employee
benefit plans and intercompany eliminations.
Closed Blocks consists of three separate reporting segments that include run-off and legacy business lines
that are no longer being actively marketed or sold. The Closed Block Variable Annuity (“CBVA”) segment
consists of variable annuity contracts that were designed to offer long-term savings products in which individual
contract owners made deposits that are maintained in separate accounts. These products included options for
policyholders to purchase living benefit riders. In 2009, we separated our CBVA segment from our other
operations, placing it in run-off, and made a strategic decision to stop actively writing new retail variable annuity
products with substantial guarantee features (the last policies were issued in 2010 and the block shifted to run-
off). The Closed Block Institutional Spread Products segment historically issued guaranteed investment contracts
(“GICs”) and funding agreements and invested amounts raised to earn a spread. While the business in the Closed
Block Institutional Spread Products segment is being managed in active run-off, we continue to issue liabilities
from time to time to replace liabilities that are maturing. The Closed Block Other segment consists primarily of
retained and run-off activity related to divestments, including our group reinsurance and individual reinsurance
businesses. Accordingly, these segments have been classified as closed blocks and are managed separately from
our Ongoing Business.
Trends and Uncertainties
Throughout this Management’s Discussion and Analysis of Financial Condition and Results of Operations
(“MD&A”), we discuss a number of trends and uncertainties that we believe may materially affect our future
liquidity, financial condition or results of operations. Where these trends or uncertainties are specific to a
particular aspect of our business, we often include such a discussion under the relevant caption of this MD&A, as
part of our broader analysis of that area of our business. In addition, the following factors represent some of the
key general trends and uncertainties that have influenced the development of our business and our historical
financial performance and that we believe will continue to influence our business and financial performance in
the future.
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