Voya 2014 Annual Report Download - page 300

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
Net Investment Income
The following table summarizes Net investment income for the periods indicated:
Year Ended December 31,
2014 2013 2012
Fixed maturities ................................ $4,001.0 $3,952.5 $4,184.0
Equity securities, available-for-sale ................ 12.8 10.0 17.7
Mortgage loans on real estate ..................... 495.8 483.9 500.0
Policy loans ................................... 113.0 118.3 121.5
Short-term investments and cash equivalents ......... 3.0 3.5 5.4
Other ........................................ (4.9) 125.3(1) (123.3)(2)
Gross investment income ........................ 4,620.7 4,693.5 4,705.3
Less: investment expenses ................... 5.9 4.5 7.4
Net investment income .......................... $4,614.8 $4,689.0 $4,697.9
(1) Includes $143.8 in conjunction with a bankruptcy settlement for a prime broker who held assets on behalf of
a limited partnership previously written down to realizable value.
(2) Includes a pre-tax loss of $91.9 in conjunction with a sale of certain private equity limited partnership
investments. See the Consolidated Investment Entities Note to these Consolidated Financial Statements for
more information.
As of December 31, 2014, the Company had $0.1 of investments in fixed maturities that did not produce net
investment income. As of December 31, 2013, the Company did not have any investments in fixed maturities that
did not produce net investment income. Fixed maturities are moved to a non-accrual status when the investment
defaults.
Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to
amortization of premiums and accretion of discounts. Such interest income is recorded in Net investment income
in the Consolidated Statements of Operations.
Net Realized Capital Gains (Losses)
Net realized capital gains (losses) comprise the difference between the amortized cost of investments and
proceeds from sale and redemption, as well as losses incurred due to the credit-related and intent-related other-
than-temporary impairment of investments. Realized investment gains and losses are also primarily generated
from changes in fair value of embedded derivatives within product guarantees and fixed maturities, changes in
fair value of fixed maturities recorded at FVO and changes in fair value including accruals on derivative
instruments, except for effective cash flow hedges. The cost of the investments on disposal is generally
determined based on FIFO methodology.
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