Voya 2014 Annual Report Download - page 248

credit rating. For most counterparties, we have collateral agreements in place that would substantially limit our
credit losses in case of a counterparty default. We also generally limit our selection of counterparties that we do
new transactions with to those with an “A-” credit rating or above. When exceptions are made to that principle,
we ensure that we obtain collateral to mitigate our risk of loss. For derivatives counterparty risk exposures
(which includes reverse repurchase and securities lending transactions), we measure and monitor our risks on a
market value basis daily.
We also have credit risk related to the ability of reinsurance counterparties to honor their obligations to pay
the contract amounts under various agreements. To minimize the risk of credit loss on such contracts, we
diversify our exposures among many reinsurers. In addition, most of our largest reinsurance counterparties are
required under the various agreements to collateralize their obligations to us which would substantially limit our
credit losses in case of a counterparty default. The following table summarizes our reinsurance recoverable
balances, collateral received and credit and financial strength ratings for our 10 largest reinsurance recoverable
balances as of December 31, 2014:
($ in millions)
Financial
Strength
Rating Credit Rating
Parent Company/Principal Reinsurers
Reinsurance
Recoverable
%
Collateralized(1) S&P Moody’s S&P Moody’s
Hannover RE Group ........................... $2,519 85% AA- NR(2)
Hannover Life Reassurance Co of America ...... AA- NR
(2)
Hannover Re (Ireland) Ltd .................. AA- NR
(2)
Lincoln National Corp .......................... 1,945 97% A- Baa1
Lincoln Life & Annuity Company of
NewYork ............................. AA- A1
Lincoln National Life Insurance Co ........... AA- A1
Reinsurance Group of America Inc ................ 832 89% A- Baa1
RGAReinsuranceCompany ................. AA- A1
Prudential Plc (U.K.) ........................... 547 59% A+ A2
Jackson National Life Insurance Co ............ AA A1
Scottish Re Group Ltd .......................... 300 93% NR
(2) NR(2)
BallantyneRePlc.......................... NR
(2) NR(2)
Scottish Re (US) Inc ....................... NR
(2) NR(2)
Scottish Re Life (Bermuda) Ltd .............. NR
(2) NR(2)
Scottish Re Life Corp ...................... NR
(2) NR(2)
Swiss Re Ltd ................................. 210 0% AA- Aa3
SwissReLife&HealthAmericaInc ........... AA- Aa3
Westport Insurance Corp .................... AA- A1
Assurant Inc ................................. 185 4% BBB+ Baa2
Union Security Insurance Co ................. A- A3
Union Security Life Insurance Co of
New York ............................. NR
(2) NR(2)
Aegon N.V. .................................. 126 2% A- A3
TransamericaFinancialLifeInsuranceCo....... AA- A1
TransamericaLifeInsuranceCo ............... AA- A1
SCOR SE .................................... 62 7% A+ A1
SCOR Global Life Re Insurance Company TX . . . A+ NR(2)
SCOR Global Life Reinsurance Co. of
America Inc. ........................... A+ A1
SCOR Global Life SE ...................... A+ A1
SCOR Rueckversicherung (Deutschland) AG . . . A+ NR(2)
Munich Re Group ............................. 41 2% AA- Aa3
Munich American Reassurance Co. ............ AA- NR
(2)
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