Voya 2014 Annual Report Download - page 241

The following table summarizes detail on the differences between the interest rate being credited to
contractholders as of December 31, 2014, and the respective GMIRs:
Account Value(1)
($ in millions) Excess of crediting rate over GMIR
At GMIR
Up to .50%
Above GMIR
0.51% - 1.00%
Above GMIR
1.01% - 1.50%
Above GMIR
1.51% - 2.00%
Above GMIR
More than 2.00%
Above GMIR Total
Guaranteed minimum
interest rate:
Up to 1.00% .........$ 1,766.4 $ 690.9 $ 958.6 $ 837.2 $368.5 $284.5 $ 4,906.1
1.01% - 2.00% ....... 1,630.3 658.7 546.5 167.2 39.5 159.7 3,201.9
2.01% - 3.00% ....... 17,573.1 797.6 487.4 174.9 67.6 16.2 19,116.8
3.01% - 4.00% ....... 12,279.6 587.8 740.6 2.4 — — 13,610.4
4.01% and Above .... 3,480.2 116.1 0.4 1.3 — 0.9 3,598.9
Renewable beyond
12 months
(MYGA)(2) ........ 2,079.6 — — — — — 2,079.6
Total discretionary rate
setting products ....$38,809.2 $2,851.1 $2,733.5 $1,183.0 $475.6 $461.3 $46,513.7
Percentage of Total . . . 83.4% 6.1% 6.0% 2.5% 1.0% 1.0% 100.0%
(1) Includes only the account values for investment spread products with GMIRs and discretionary crediting
rates, net of policy loans. Excludes Stabilizer products, which are fee based. Also, excludes the portion of
the account value of FIA products for which the crediting rate is based on market indexed strategies.
(2) Represents MYGAs contracts with renewal dates after December 31, 2015 on which we are required to
credit interest above the contractual GMIR for at least the next year.
Market Risk Related to Equity Market Prices
Our variable products, Fixed-Indexed Annuity (“FIA”) products and general account equity securities are
significantly influenced by global equity markets. Increases or decreases in equity markets impact certain assets
and liabilities related to our variable products and our earnings derived from those products. Our variable
products include variable annuity contracts and variable life insurance.
We assess equity risk exposures for financial assets, liabilities and derivatives using hypothetical test
scenarios that assume either an increase or decrease of 10% in all equity market benchmark levels. The following
tables summarize the net estimated potential change in fair value from an instantaneous increase and decrease in
all equity market benchmark levels of 10% as of December 31, 2014 and 2013. In calculating these amounts, we
exclude separate account equity securities related to products for which the investment risk is borne primarily by
the separate account contract holder rather than by us. While the test scenarios are for illustrative purposes only
and do not reflect our expectations regarding the future performance of equity markets, they are near-term,
reasonably possible hypothetical changes that illustrate the potential impact of such events. These scenarios
consider only the direct effect on fair value of declines in equity benchmark market levels and not changes in
asset-based fees recognized as revenue, changes in our estimates of total gross profits used as a basis for
amortizing DAC/VOBA, other intangibles and other costs, or changes in any other assumptions such as market
volatility or mortality, utilization or persistency rates in variable contracts that could also impact the fair value of
our living benefits features. In addition, these scenarios do not reflect the effect of basis risk, such as potential
differences in the performance of the investment funds underlying the variable annuity products relative to the
equity market benchmark we use as a basis for developing our hedging strategy. The impact of basis risk could
result in larger differences between the change in fair value of the equity-based derivatives and the related living
benefit features, in comparison to the hypothetical test scenarios.
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