Voya 2014 Annual Report Download - page 155

Ongoing Business—Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
Operating earnings before income taxes decreased $52.3 million from $1,428.6 million to $1,376.3 million
including the Net gain from Lehman Recovery/LIHTC in the prior period that did not reoccur and an unfavorable
variance in DAC/VOBA and other intangibles unlocking related to the impact of prospective assumption
changes. Excluding these items, Operating earnings before income taxes increased due to higher prepayment
income, higher sales and improved loss ratios in our Employee Benefits segment, improved margins in our
Annuities and Investment Management segments, and an increase in fees associated with higher AUM. Reducing
the improvements were unfavorable mortality changes, net of reinsurance on the universal life blocks due to an
aging block, partially offset by changes in reserves from lower term sales in our Individual Life segment, the
impact of the continued low interest rate environment on reinvestment rates across multiple segments, and higher
Operating expenses.
Ongoing Business—Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Operating earnings before income taxes increased $437.7 million from $990.9 million to $1,428.6 million
as a result of several factors. Higher Fee income in our Retirement and Investment Management segments and
improved margins in our Annuities segment related to MYGA run-off contributed to the increase. In addition,
higher Net investment income 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 restructuring in the prior
period. DAC/VOBA and other intangibles unlocking improved to $133.2 million in the current period compared
to $(77.0) million in the prior period, largely as a result of favorable prospective assumption changes of $84.8
million in the current period. See Results of Operations-Segment by Segment in Part II, Item 7. of this Annual
Report on Form 10-K.
Results of Operations—Segment by Segment
Retirement Solutions—Retirement
The following table presents Operating earnings before income taxes of our Retirement segment for the
periods indicated:
Year Ended December 31,
($ in millions) 2014 2013 2012
Operating revenues:
Net investment income and net realized gains (losses) ...... $1,556.1 $1,569.6 $1,499.9
Fee income ....................................... 772.3 759.9 715.0
Premiums ......................................... 26.6 5.7 4.9
Other revenue ..................................... 72.4 64.2 52.1
Total operating revenues ................................. 2,427.4 2,399.4 2,271.9
Operating benefits and expenses:
Interest credited and other benefits to contract owners/
policyholders .................................... 860.3 848.4 842.2
Operating expenses ................................. 866.2 839.9 824.9
Net amortization of DAC/VOBA ...................... 183.1 115.3 155.0
Interest expense .................................... — — 1.2
Total operating benefits and expenses ...................... 1,909.6 1,803.6 1,823.3
Operating earnings before income taxes ................... $ 517.8 $ 595.8 $ 448.6
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