Voya 2014 Annual Report Download - page 197

the result that we were substituted for SRUS as the ceding company to Ballantyne Re and made the sole
beneficiary of trust assets connected with the Ballantyne Re facility. The trust assets support the reserve
requirements of the business transferred from SLD to Ballantyne Re. As of December 31, 2014, trust assets with
a market value of $943.6 million supported reserves of $277.8 million.
Effective January 1, 2009, we entered into the MPA with Scottish Re and Hannover Re such that Hannover
Re acquired the individual life reinsurance business from Scottish Re. Effective October 1, 2013, on a 32% quota
share basis, we recaptured a portion of the business from HLRI and retroceded the recaptured business to
Hannover US. Of the Reinsurance recoverable on the Consolidated Balance Sheets, $2.5 billion and $2.4 billion
as of December 31, 2014 and 2013, respectively, is related to the reinsurance recoverable from Hannover Re
under this reinsurance agreement.
Effective October 1, 2014, we disposed of, via reinsurance, an in-force block of term life insurance policies
to RGA Reinsurance Company, a subsidiary of Reinsurance Group of America, Inc., (“RGA”) for $448.1
million. We will continue to administer and service the policies. On October 1, 2014, there were $1.5 billion of
statutory reserves on approximately $100.0 billion of in-force life insurance. During the year ended
December 31, 2014, we recognized a non-operating loss, before income taxes, of $89.4 million, composed of
$32.8 million in Other net realized capital gains on assets included in the transaction, $11.4 million related to
intent impairments and $110.8 million of transaction and ongoing expenses in the Consolidated Statements of
Operations. As of December 31, 2014, the Reinsurance recoverable on the Consolidated Balance Sheets related
to this agreement was $461.3 million. The transaction is expected to result in a non-operating U.S. GAAP loss
before income taxes of approximately $10.0 million a year over the next twenty years.
Pension and Postretirement Plans
When contributing to our qualified retirement plans we will take into consideration the minimum and
maximum amounts required by ERISA, the attained funding target percentage of the plan, the variable-rate
premiums that may be required by the PBCG and any funding relief that might be enacted by Congress.
Contributions to our nonqualified plans and other postretirement and post-employment plans are funded from
general assets of the respective sponsoring subsidiary company as benefits are paid.
For additional information on our pension and postretirement plan arrangements, see the Employee Benefit
Arrangements Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form
10-K.
Restrictions on Dividends and Returns of Capital from Subsidiaries
Our business is conducted through operating subsidiaries. U.S. insurance laws and regulations regulate the
payment of dividends and other distributions by our U.S. insurance subsidiaries to their respective parents.
Dividends in excess of prescribed limits established by the applicable state regulations are considered to be
extraordinary transactions and require explicit regulatory approval. In addition, under the insurance laws of our
principal insurance subsidiaries domiciled in Connecticut, Iowa and Minnesota, no dividend or other distribution
exceeding an amount equal to an insurance company’s earned surplus may be paid without the domiciliary
insurance regulator’s prior approval. For a summary of applicable laws and regulations governing dividends, see
the Insurance Subsidiaries Dividend Restrictions section of the Insurance Subsidiaries Note in our Consolidated
Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K.
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