Voya 2014 Annual Report Download - page 199

2014. On June 9, 2014, Voya Financial, Inc.’s principal insurance subsidiary domiciled in Colorado declared an
ordinary dividend in the aggregate amount of $32.0 million, which was paid on June 24, 2014. On November 20,
2014, Voya Financial, Inc.’s principal insurance subsidiary domiciled in Connecticut declared an ordinary
dividend in the amount of $90.0 million, which was paid on December 22, 2014.
In March and April 2013, in response to requests made in 2012 and refreshed in 2013, our insurance
subsidiaries domiciled in Colorado, Connecticut, Iowa and Minnesota received approvals or notices of non-
objection, as the case may be, from their respective domiciliary insurance regulators to make extraordinary
distributions to Voya Financial, Inc. or Voya Holdings, a wholly owned subsidiary of Voya Financial, Inc., in the
aggregate amount of $1,434.0 million, contingent upon completion of the IPO and the use of the extraordinary
distribution funds solely for Company operations. The approved distributions of $1,434.0 million were made on
May 8, 2013.
In addition, on May 8, 2013, our principal insurance subsidiaries domiciled in Colorado, Iowa and Minnesota
each reset, on a one-time basis, their respective negative unassigned funds account as of December 31, 2012 (as
reported in their respective 2012 statutory annual statements) to zero (with an offsetting reduction in gross paid-in
capital and contributed surplus). These resets were made pursuant to permitted practices in accordance with
statutory accounting practices granted by their respective domiciliary insurance regulators. These permitted
practices have no impact on total capital and surplus of these insurance subsidiaries and were recorded in their
second quarter statutory financial statements. See Business Regulation-Insurance Regulation-Insurance Holding
Company Regulation-Dividend Payment Restrictions in Part I, Item 1. of this Annual Report on Form 10-K.
Effective December 20, 2013, SLDI re-domesticated from the Cayman Islands to the State of Arizona. SLDI
may not declare or pay dividends other than in accordance with its annual capital and dividend plan as approved
by the Arizona Department of Insurance, which includes a minimum capital requirement. SLDI did not declare or
pay a dividend for the years ended December 31, 2014 and 2013.
We may receive dividends from or contribute capital to our wholly owned non-life insurance subsidiaries
such as broker-dealers, investment management entities and intermediate holding companies. For the years ended
December 31, 2014 and 2013, dividends net of capital contributions received by Voya Financial, Inc. and Voya
Holdings from non-life subsidiaries were $258.0 million and $100.0 million, respectively.
Statutory Capital and Risk-Based Capital of Principal Insurance Subsidiaries
Each of our wholly owned principal insurance subsidiaries is subject to minimum risk based capital
(“RBC”) requirements established by the insurance departments of their applicable state of domicile. The
formulas for determining the amount of RBC specify various weighting factors that are applied to financial
balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined
by a ratio of total adjusted capital (“TAC”), as defined by the NAIC, to RBC requirements, as defined by the
NAIC. Each of our U.S. insurance subsidiaries exceeded the minimum RBC requirements that would require
regulatory or corrective action for all periods presented herein. The Company’s estimated RBC ratio on a
combined basis primarily for our principal insurance subsidiaries, with adjustments for certain intercompany
transactions, was approximately 538% as of December 31, 2014.
Our wholly owned insurance subsidiaries are required to prepare statutory financial statements in
accordance with statutory accounting practices prescribed or permitted by the insurance department of the state
of domicile of the respective insurance subsidiary. Statutory accounting practices primarily differ from U.S.
GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities
using different actuarial assumptions as well as valuing investments and certain assets and accounting for
deferred taxes on a different basis. Certain assets that are not admitted under statutory accounting principles are
charged directly to surplus. Depending on the regulations of the insurance department of the state of domicile,
the entire amount or a portion of an asset balance can be non-admitted depending on specific rules regarding
admissibility. The most significant non-admitted assets are typically deferred tax assets.
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