Voya 2014 Annual Report Download - page 187

Effective January 1, 2014, the reinsurance agreements with Whisperingwind III, LLC (“Whisperingwind
III”) were novated to Roaring River IV, LLC (“Roaring River IV”), our wholly owned captive reinsurance
subsidiary, which completed a transaction with a third-party bank to provide up to $565.0 million of statutory
reserve financing through a trust note which matures December 31, 2028. The trust note replaced $330.0 million
of letters of credit associated with the Whisperingwind III reinsurance agreements which were cancelled in
January of 2014.
Effective January 15, 2014, Langhorne I, LLC (“Langhorne I”), our wholly owned captive reinsurance
subsidiary, completed a financing arrangement with a third-party trust to provide up to $500.0 million of trust
note collateral funding. The financing arrangement is designed to manage reserve and capital requirements in
connection with the stable value business and matures on January 15, 2019.
Effective January 24, 2014, SLDI entered into a letter of credit facility agreement with a third-party bank to
provide up to $150.0 million of committed capacity until January 24, 2018 which supports reserves on an
affiliated reinsurance agreement in connection with a portion of its deferred annuity business.
In November of 2014, SLDI extended a $750.0 million collateral note facility supporting reserves on the
Hannover Re business upon its initial maturity date for another year until November 9, 2015.
Effective December 29, 2014, SLDI cancelled the $750.0 million collateral note facility supporting reserves
on the Hannover Re business upon its initial maturity date. The cancelled capacity was replaced with letters of
credit issued under existing credit facility agreements.
On December 18, 2014, we terminated our financing transaction providing trust notes supporting a
reinsurance agreement in Roaring River III, LLC (“Roaring River III”).
In January of 2014, a $265.0 million secured LOC issued by the Federal Home Loan Bank (“FHLB”) of Des
Moines supporting our Closed Block Institutional Spread Products segment was reduced to $255.0 million.
Effective December 18, 2014, the LOC was cancelled due to the cancellation of the underlying policies within a
certain reinsurance contract.
On February 11, 2015, we entered into a $195.0 million Letter of Credit facility agreement with
Commerzbank AG which matures February 11, 2018 and includes an option to support the LOC outstanding
either on a secured or unsecured basis. As of the inception of the facility, the Company collateralized the facility
with $212.0 million of cash and short-term investments. The LOC will be used to provide collateral under the
reinsurance agreements of Voya Financial, Inc. subsidiaries.
The following tables present our existing financing facilities for each of our Individual Life, Hannover Re
and CBVA blocks of business as of December 31, 2014. While these tables present the current financing for each
block, these financing facilities will expire prior to the runoff of the reserve liabilities they support. In addition,
these liabilities will change over the life of each block. As a result, the existing financing will be periodically
extended or replaced and increased as each block grows toward the peak reserve requirement noted below.
Individual Life
($ in millions)
Obligor / Applicant
Financing
Structure Product Expiration Capacity Utilization
Voya Financial, Inc. ........................ Credit Facility XXX 02/14/2018 $ 447.0 $ 447.0
Voya Financial, Inc. / SLDI .................. LOCFacility AG38 12/31/2025 475.0 475.0
Voya Financial, Inc. / Roaring River II, LLC .... LOCFacility XXX 12/31/2021 995.0 693.0
Voya Financial, Inc. / Roaring River IV, LLC .... Trust Note AG38 12/31/2028 565.0 312.0
Total .................................... $2,482.0 $1,927.0
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