Voya 2014 Annual Report Download - page 157

The following table presents a rollforward of AUM for our Retirement segment for the periods indicated:
Year Ended December 31,
($ in millions) 2014 2013 2012
Balance as of beginning of period ............ $105,236.9 $ 90,471.2 $ 79,477.7
Deposits ............................ 14,251.1 14,856.0 14,457.0
Surrenders, benefits and product charges . . (14,497.8) (12,397.5) (10,991.4)
Net flows ....................... (246.7) 2,458.5 3,465.6
Interest credited and investment
performance ....................... 5,611.9 12,307.2 7,527.9
Transfer to reinsurer ................... (908.8) — —
Balance as of end of period ................. $109,693.3 $105,236.9 $ 90,471.2
Effective April 1, 2014, we entered into a coinsurance agreement to reinsure a block of in-force fixed
deferred annuity contracts (the “Second Quarter Reinsurance Transaction”). This transaction was accounted for
using deposit accounting. Under the agreement, the counterparty contractually assumed from us certain
policyholder liabilities and obligations, although we remain obligated to contract owners. Consistent with our
practice to exclude business (including blocks of business) exited via reinsurance or divestment from Operating
earnings before income taxes and from Operating revenues, beginning in the second quarter of 2014, the
revenues and expenses of this reinsured block of business are excluded from these metrics and in the tables
above.
Retirement—Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
Operating revenues
Net investment income and net realized gains (losses) decreased $13.5 million from $1,569.6 million to
$1,556.1 million primarily due to the impact of the Second Quarter Reinsurance Transaction in the current period
and $14.8 million of net investment income from Lehman Recovery/LIHTC in the prior period that did not
reoccur. Excluding these impacts, investment income increased due to the growth of general account assets and
higher prepayment income partially offset by lower alternative investment income and lower CMO-B investment
income. The decrease in investment 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 partially offset by lower fees in our recordkeeping business. The increase in full
service retirement plan fees was driven by net increases in separate account and institutional mutual fund AUM.
These increases were partially offset by a decrease in recordkeeping fees primarily due to reductions in change
order fees as well as terminated contracts.
Premiums increased $20.9 million from $5.7 million to $26.6 million primarily due to the new pension risk
transfer contracts which is offset by higher Interest credited and other benefits to contract owners/policyholders
below.
Other revenue increased $8.2 million from $64.2 million to $72.4 million primarily due to changes in
market value adjustments related to plan sponsors upon surrender and higher broker-dealer revenues during the
current period.
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders increased $11.9 million from $848.4
million to $860.3 million primarily due to higher general account liabilities, which correspond to the growth in
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