Voya 2014 Annual Report Download - page 190

Other Subsidiaries—Voya Financial, Inc. Credit Support
Voya Financial, Inc. guarantees the obligations of Voya Holdings under the $13.0 million principal amount
Equitable Notes maturing in 2027 as well as $506.1 million combined principal amount of Aetna Notes. For
more information see “Debt Securities” above. From time to time, Voya Financial, Inc. may also have
outstanding guarantees of various obligations of its subsidiaries.
We did not recognize any asset or liability as of December 31, 2014 in relation to intercompany
indemnifications and support agreements. As of December 31, 2014, no circumstances existed in which we were
required to currently perform under these indemnifications and support agreements.
ING Group Credit Support
As described above, certain of our indebtedness benefits from a guarantee provided by ING Group or NN
Group. As of December 31, 2014, the indebtedness for which ING Group or NN Group provide guarantees
include a $506.1 million aggregate principal amount of Aetna Notes issued by Voya Holdings.
Securities Lending
We engage in securities lending for cash or cash equivalents, on a direct basis, or through an agent, whereby
certain securities from our portfolio are loaned to other institutions for short periods of time. Initial collateral,
primarily cash, is required at a rate of 102% of the market value of the loaned securities. For certain transactions,
a lending agent may be used and the agent may retain some or all of the collateral deposited by the borrower and
transfer the remaining collateral to us. Collateral retained by the agent is invested in liquid assets on our behalf.
The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or
refunded as the market value of the loaned securities fluctuates. As of December 31, 2014 and 2013, the fair
value of loaned securities was $545.9 million and $435.4 million, respectively, and is included in Securities
pledged on the Consolidated Balance Sheets. As of December 31, 2014 and 2013, collateral retained by the
lending agent and invested in liquid assets on our behalf was $563.9 million and $451.0 million, respectively, and
is recorded in Short-term investments under securities loan agreements, including collateral delivered on the
Consolidated Balance Sheets. As of December 31, 2014 and 2013, liabilities to return collateral of $563.9 million
and $451.0 million, respectively, are included in Payables under securities loan agreements, including collateral
held on the Consolidated Balance Sheets.
Repurchase Agreements
We engage in dollar repurchase agreements with mortgage-backed securities (“dollar rolls”) and repurchase
agreements with other collateral types to increase our return on investments and improve liquidity. Such
arrangements meet the requirements to be accounted for as financing arrangements. We enter into dollar roll
transactions by selling existing mortgage-backed securities (“MBS”) and concurrently entering into an agreement
to repurchase similar securities within a short time frame at a lower price. Under repurchase agreements, we
borrow cash from a counterparty at an agreed upon interest rate for an agreed upon time frame and pledge
collateral in the form of securities. At the end of the agreement, the counterparty returns the collateral to us, and
we, in turn, repay the loan amount along with the additional agreed upon interest. We require that, at all times
during the term of the dollar roll and repurchase agreements, cash or other collateral types obtained is sufficient
to allow us to fund substantially all of the cost of purchasing replacement assets. Cash received is invested in
short-term investments, with the offsetting obligation to repay the loan included within Other liabilities on the
Consolidated Balance Sheets. As per the terms of the agreements, the market value of the loaned securities is
monitored with additional collateral obtained or refunded as the market value of the loaned securities fluctuates
due to changes in interest rates, spreads and other risk factors.
The carrying value of the securities pledged in dollar rolls and repurchase agreement transactions and the
related repurchase obligation are included in Securities pledged and Short-term debt, respectively, on the
Consolidated Balance Sheets. As of December 31, 2014 and 2013, we did not have any securities pledged in
dollar rolls or repurchase agreement transactions.
167