Voya 2014 Annual Report Download - page 170

Employee Benefits—Year Ended December 31, 2014 Compared to Year Ended December 31, 2013
Operating revenues
Net investment income and net realized gains (losses) decreased $6.3 million from $117.6 million to $111.3
million primarily due to $4.3 million of net investment income from Lehman Recovery/LIHTC in the prior
period that did not reoccur. Excluding the impact of Lehman Recovery/LIHTC, investment income decreased
primarily due to lower prepayment fee income.
Fee income increased $6.6 million from $63.0 million to $69.6 million primarily due to favorable intangible
unlocking resulting from prospective assumption changes. This was offset by unfavorable DAC/VOBA
unlocking from prospective assumption changes as discussed below.
Premiums increased $110.3 million from $1,085.9 million to $1,196.2 million primarily due to the effects of
higher sales of group stop loss and voluntary products. These increases were partially offset by lower group life
premiums.
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders increased $37.3 million from $903.4
million to $940.7 million primarily due to higher stop loss and voluntary sales, resulting in higher benefits
incurred, higher retained disability results in the prior period that did not reoccur. These increases were partially
offset by improved loss ratios and changes in reserves due to changes in our risk assumption.
Operating expenses increased $18.6 million from $236.1 million to $254.7 million primarily due to higher
sales-related expenses from higher sales of the group stop loss and voluntary products in the current period and a
reduction in estimated variable compensation accruals in the prior period that did not reoccur.
Net amortization of DAC/VOBA increased $11.8 million from $16.9 million to $28.7 million primarily due
to unfavorable DAC/VOBA unlocking resulting from prospective assumption changes. The unfavorable DAC
unlocking in the current period is partially offset by the unlocking explained in Fee income above. Excluding the
impact from unlocking, Net amortization of DAC/VOBA increased primarily due to increased amortization from
terminated cases.
Operating earnings before income taxes
Operating earnings before income taxes increased $42.8 million from $106.1 million to $148.9 million
primarily due to improved loss ratios and higher stop loss premiums resulting from strong sales in the current
period. Partially offsetting these items were higher Operating expenses, increased Net amortization of DAC/
VOBA resulting from terminated cases and lower net investment income due to the Lehman Recovery/LIHTC in
the prior period that did not reoccur.
Employee Benefits—Year Ended December 31, 2013 Compared to Year Ended December 31, 2012
Operating revenues
Net investment income and net realized gains (losses) increased $3.3 million from $114.3 million to $117.6
million primarily due to $4.3 million of net investment income from Lehman Recovery/LIHTC in the current
period and a loss on the sale of certain alternative investments in the prior period. Excluding the impact of these
asset sales, Net investment income and net realized gains (losses) decreased due to lower investment income on
the CMO-B investment portfolio, as a result of portfolio restructuring in the prior period.
Premiums increased $7.8 million from $1,078.1 million to $1,085.9 million primarily due to higher group
life premiums resulting from higher sales and favorable persistency and a new voluntary product introduced in
2013. This was partially offset by lower group stop loss premiums.
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