Voya 2014 Annual Report Download - page 177

The following table presents the investment income for the years ended December 31, 2014, 2013 and 2012,
respectively, and the average assets of alternative investments as of the dates indicated:
Year Ended December 31,
($ in millions) 2014 2013 2012
Retirement
Alternative investment income ................... $ 28.8 $ 36.4 $ 43.2
Average alternative investments .................. 310.6 262.0 523.1
Annuities
Alternative investment income ................... 25.0 25.6 25.8
Average alternative investments .................. 199.6 177.6 284.4
Investment Management
Alternative investment income ................... 19.7 23.8 41.6
Average alternative investments .................. 145.3 124.0 107.5
Individual Life
Alternative investment income ................... 19.8 20.2 12.1
Average alternative investments .................. 143.0 131.0 197.5
Employee Benefits
Alternative investment income ................... 3.2 3.9 4.5
Average alternative investments .................. 29.5 24.7 54.2
Total Ongoing Business
Alternative investment income ................... 96.5 109.9 127.2
Average alternative investments .................. 828.0 719.3 1,166.7
Corporate
Alternative investment income ................... 16.6 9.0 23.4
Average alternative investments .................. 106.7 97.8 95.5
Closed Blocks(1)
Alternative investment income ................... 4.2 9.7 11.6
Average alternative investments .................. 33.2 58.1 88.4
Total Voya Financial, Inc.
Alternative investment income ................... $117.3 $128.6 $ 162.2
Average alternative investments .................. $967.9 $875.2 $1,350.6
(1) Our CBVA segment is managed to focus on protecting regulatory and rating agency capital rather than
achieving operating metrics and, therefore, its results of operations are not reflected within investment
income.
Unlocking of DAC/VOBA and other Contract Owners/Policyholders Intangibles
Changes in Operating earnings before income taxes and net income (loss) are influenced by increases and
decreases in amortization of DAC, VOBA, deferred sales inducements (“DSI”), and unearned revenue (“URR”).
The DAC asset represents policy acquisition costs that have been capitalized and are subject to amortization and
interest. Capitalized costs are direct incremental costs of contract acquisition, as well as certain costs related
directly to acquisition activities. Such costs consist principally of certain commissions, underwriting, sales and
contract issuance and processing expenses directly related to the successful acquisition of new and renewal
business. The VOBA asset represents the outstanding value of in-force business acquired and is subject to
amortization and interest. The value is based on the present value of estimated net cash flows embedded in the
insurance contracts at the time of the acquisition and increased for subsequent deferrable expenses on purchased
policies. We amortize VOBA over the estimated life of the contracts using the same methodology and
assumptions employed to amortize DAC. The DSI asset represents benefits paid to contract owners for a
specified period that are incremental to the amounts we credit on similar contracts without sales inducements and
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