Voya 2014 Annual Report Download - page 164

Operating earnings before income taxes
Operating earnings before income taxes increased $32.2 million from $178.1 million to $210.3 million
primarily due to higher performance fees and higher Fee income resulting from the increase in AUM. The
increases were partially offset by the Lehman Recovery in the prior period that did not reoccur, lower 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) decreased $4.6 million from $41.6 million to $37.0
million primarily due to lower alternative investment income as well as a gain on the sale of certain alternative
investments in the prior period. In addition, we recognized an accumulation of $13.3 million of carried interest in
the prior period, mostly offset by $13.2 million of net investment income from the Lehman Recovery.
Fee income increased $56.1 million from $474.7 million to $530.8 million primarily due to an increase in
AUM resulting in higher management and administrative fees earned. The increase in AUM is predominantly
driven by positive net flows including sub-advisor replacements and improved equity markets.
Other revenue increased $10.7 million from $29.2 million to $39.9 million primarily due to an increase in
performance and production related revenues.
Operating benefits and expenses
Operating expenses increased $18.6 million from $411.0 million to $429.6 million primarily as a result of
higher variable expenses associated with higher AUM and higher Operating earnings before income taxes.
Operating earnings before income taxes
Operating earnings before income taxes increased $43.6 million from $134.5 million to $178.1 million
primarily due to higher Fee income due to an increase in affiliate sourced AUM and Investment Management
sourced AUM and an increase in Other revenue. The increases were partially offset by lower Net investment
income and higher variable expenses associated with higher AUM and higher Operating earnings.
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