Voya 2014 Annual Report Download - page 167

Fee income decreased $2.1 million from $1,113.7 million to $1,111.6 million primarily due to higher
unfavorable intangible unlocking in the current period resulting from prospective assumption changes. Excluding
the impact from unlocking, Fee income increased primarily due to an increase in cost of insurance fees on the
aging in-force universal life block.
Premiums decreased $38.3 million from $737.9 million to $699.6 million primarily due to the impact of the
Term Life Coinsurance Agreement in the current period. Excluding the impact of this transaction, Premiums
increased slightly due to renewal premiums partially offset by lower first year premiums due to lower term life
sales.
Other revenue decreased $3.3 million from $24.8 million to $21.5 million due to lower surrender fees on the
universal life block.
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders increased $114.1 million from
$2,001.5 million to $2,115.6 million primarily due to unfavorable intangibles unlocking from prospective
assumption changes in the current period compared to favorable unlocking in the prior period, partially offset by
the impacts of the Term Life Coinsurance Agreement and the Gain on reinsurance recapture in the current period.
Excluding the impact from these items, Interest credited and other benefits to contract owners/policyholders
increased primarily due to unfavorable changes in mortality, net of reinsurance on the universal life blocks due to
an aging block partially offset by favorable changes in reserves from lower term sales.
Net amortization of DAC/VOBA decreased $170.5 million from $176.2 million to $5.7 million primarily due
to favorable DAC/VOBA unlocking resulting from prospective assumption changes. The favorable DAC
unlocking in the current period was more than offset by other intangibles unlocking from prospective assumption
changes as explained in Fee income and Interest credited and other benefits to contract owners/policyholders
above. Excluding the impact from unlocking, net amortization of DAC/VOBA decreased primarily due to lower
amortization on the universal life blocks driven by lower gross profits.
Operating earnings before income taxes
Operating earnings before income taxes decreased $17.5 million from $254.8 million to $237.3 million
primarily driven by net unfavorable DAC/VOBA and other intangibles unlocking from prospective assumption
changes in the current period compared to favorable unlocking in the prior period and higher net investment
income from Lehman Recovery/LIHTC in the prior period that did not reoccur. Partially offsetting these items
were the impacts of the Term Life Coinsurance Agreement and the Gain on reinsurance recapture in the current
period. Excluding these impacts, Operating earnings before taxes increased driven by higher Net investment
income due to portfolio restructuring, lower amortization due to lower gross profits and favorable administrative
expenses primarily driven by lower sales related expenses, partially offset by unfavorable changes in mortality,
net of reinsurance on the universal life blocks.
Individual Life—Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Operating revenues
Net investment income and net realized gains (losses) increased $1.7 million from $913.8 million to $915.5
million primarily due to $47.2 million of net investment income from Lehman Recovery/LIHTC in the current
period compared to a $13.1 million loss on the sale of certain alternative investments in the prior period and
higher alternative investment income in the prior period. Mostly offsetting these were lower investment income
on the CMO-B investment portfolio, as a result of portfolio restructuring in the prior period and lower yields on
commercial mortgages.
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