Voya 2014 Annual Report Download - page 146

which assumption reviews are not relevant). As a result of these reviews, we typically make a number of changes
to our assumptions. The unlocking related to these quarterly updates and the third quarter annual assumption
reviews are included in DAC/VOBA and other intangibles unlocking.
During 2014, we received $20.0 million related to the amendment or recapture of certain reinsurance
agreements (“Gain on reinsurance recapture”), which was recorded in Interest credited and other benefits to
contract owners/policyholders within the Individual Life segment’s Operating earnings before income tax.
During 2013, the Company received distributions of cash and securities in conjunction with a Lehman
Brothers bankruptcy settlement (“Lehman Recovery”). In 2008, Lehman Brothers acted as a prime broker for
assets held in partnership owned by the Company. In 2008, these partnership assets were written down to the
then-assumed realizable value. The amount of the 2013 distribution in excess of the book value of these assets of
$135.2 million was recognized as Net investment income within Operating earnings before income taxes, which
excluded $9.0 million in Net investment income for the CBVA segment. We received a similar distribution of
$4.0 million in 2014, which was also recognized in Net investment income. During 2013, we disposed of certain
Low Income Housing Tax Credit partnerships (“LIHTC”) as a means of exiting this asset class and as a result,
we recognized losses in Net investment income of $31.6 million. Collectively, the Lehman Recovery and LIHTC
losses, net of DAC/VOBA and other intangibles impacts, are referred to as “Net gain from Lehman Recovery/
LIHTC.”
During 2012, the Company entered into an agreement to sell certain general account private equity limited
partnership holdings (“sale of certain alternative investments”), which resulted in a loss, which was recognized in
Net investment income. See “—Investments—Sale of Certain Alternative Investments” for further description.
Year Ended December 31,
($ in millions) 2014 2013 2012
Interest expense (including interest rate swap
settlements) ................................... $(188.0) $(179.7) $(127.8)
DAC/VOBA and other intangibles unlocking(1)(2) ........ (21.6) 133.2 (77.0)
Net gain from Lehman Recovery/LIHTC .............. 4.0 87.0 —
Loss on sale of alternative investments(3)(4) ............. — — (92.0)
Gain on reinsurance recapture ....................... 20.0 — —
(1) Unlocking related to the Net gain (loss) from Lehman Recovery is excluded from DAC/VOBA and other
intangibles unlocking for the year ended December 31, 2013 (and included in Net gain from Lehman
Recovery/LIHTC).
(2) Includes the impact of the annual review of the assumptions.
(3) Amount excludes net gain for the CBVA segment of $0.1 million for the year ended December 31, 2012.
(4) See Investments—Sale of Certain Alternative Investments in Part II, Item 7. of this Annual Report on Form
10-K for a description.
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