Voya 2014 Annual Report Download - page 165

Insurance Solutions—Individual Life
The following table presents Operating earnings before income taxes of our Individual Life segment for the
periods indicated:
Year Ended December 31,
($ in millions) 2014 2013 2012
Operating revenues:
Net investment income and net realized gains (losses) . . . $ 885.1 $ 915.5 $ 913.8
Fee income .................................. 1,111.6 1,113.7 1,115.7
Premiums .................................... 699.6 737.9 737.8
Other revenue ................................ 21.5 24.8 26.6
Total operating revenues ............................ 2,717.8 2,791.9 2,793.9
Operating benefits and expenses:
Interest credited and other benefits to contract owners/
policyholders ............................... 2,115.6 2,001.5 2,034.4
Operating expenses ............................ 359.2 358.3 390.5
Net amortization of DAC/VOBA ................. 5.7 176.2 162.3
Interest expense ............................... — 1.1 10.5
Total operating benefits and expenses ................. 2,480.5 2,537.1 2,597.7
Operating earnings before income taxes .............. $ 237.3 $ 254.8 $ 196.2
The following table presents certain notable items that resulted in volatility in Operating earnings before
income taxes for the periods indicated:
Year Ended December 31,
($ in millions) 2014 2013 2012
DAC/VOBA and other intangibles unlocking(1)(2) ............ $(10.2) $ 4.8 $ 3.4
Net gain from Lehman Recovery/LIHTC .................. — 39.7 —
Loss on sale of alternative investments .................... — — (13.1)
Gain on reinsurance recapture ........................... 20.0 — —
(1) Unlocking related to the Net gain from Lehman Recovery/LIHTC 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 impacts of the annual review of assumptions. See Unlocking of DAC/VOBA and other Contract
Owners/Policyholders Intangibles in Part II, Item 7. of this Annual Report on Form 10-K for further
description.
The DAC/VOBA and other intangibles unlocking in the table above includes the impact of the annual
review of the assumptions of ($9.0) million in 2014, $20.6 million in 2013 and ($2.5) million in 2012. The net
unfavorable unlocking in the current period was primarily driven by policyholder behavior assumption changes
and low interest rate environment, partially offset by mortality assumption updates.
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