Voya 2014 Annual Report Download - page 33

OUR BUSINESSES
Retirement Solutions
Our Retirement Solutions business provides its products and services through two reporting segments:
Retirement and Annuities. Retirement is focused on meeting the needs of individuals in preparing for and
sustaining a secure retirement through employer-sponsored plans and services, as well as through individual
account rollover plans and comprehensive financial product offerings and advisory services. Our Annuities
segment provides fixed, indexed and payout annuities and mutual fund custodial accounts for pre-retirement
wealth accumulation and post-retirement income management, sold through multiple channels.
Retirement
Our Retirement segment is well positioned in the marketplace, with our industry-leading Institutional
Retirement Plans business and our growing Retail Wealth Management business. The two businesses combined
had $354.5 billion of AUM and AUA as of December 31, 2014, of which $60.9 billion were in proprietary assets.
Our Institutional Retirement Plans business offers tax-deferred employer-sponsored retirement savings plan
and administrative services to corporations of all sizes, public and private school systems, higher education
institutions, state and local governments, hospitals and healthcare facilities and not-for-profit organizations.
Stable value products and pension risk transfer solutions are also provided to institutional plan sponsors where
we may or may not be providing administrative services. This broad-based institutional business crosses many
sectors of the economy, which provides diversification that helps insulate us from downturns in particular
industries.In the defined contribution market, we provide services to approximately 46,000 plan sponsors
covering nearly 5 million plan participants as of December 31, 2014.
Our Retail Wealth Management business (formerly referred to as “Individual Markets”), which focuses on
the rapidly expanding retiree market as well as on pre-retirees and our defined contribution plan participants,
offers retail financial products and comprehensive advice services to help individuals manage their retirement
savings and income needs. While AUM and AUA for our Retail Wealth Management business were $3.2 billion
as of December 31, 2014, it is a key area of future growth for our Retirement segment.
Our Retirement segment earns revenue principally from asset and participant-based advisory and record-
keeping fees. Retirement generated operating earnings before income taxes of $517.8 million for the year ended
December 31, 2014. Our Investment Management business also earns arm’s-length market-based fees from the
management of the general account and mutual fund assets supporting Institutional Retirement Plans and Retail
Wealth Management rollover products.Distribution of Investment Management products and services using the
Retirement segment continues to present a growth opportunity for our Retirement and Investment Management
segments that we are actively pursuing.
We will continue to focus on growing our retirement platform by driving increases in our Institutional
Retirement Plans business, and by further developing our Retail Wealth Management business with a particular
focus on expanding relationships with our Institutional Retirement Plan participants. We will also continue to
place a strong emphasis on capital and cost management, with a focus on optimizing our distribution platform
and achieving a diversified retirement product mix. In addition, we continue to promote targeted plan monitoring
and relationship building to retain institutional clients and individual customers. We believe these initiatives will
increase segment revenues and profitability.
An important element of our Retirement strategy is to leverage the extensive customer base to which we
have access through our Institutional Retirement Plans business in order to grow our Retail Wealth Management
and Investment Management businesses. This opportunity is especially attractive in light of the significant
portion of our Institutional Retirement Plans business for which we provide recordkeeping-only services, with
such plans encompassing nearly 3 million plan participants as of December 31, 2014. We are therefore focused
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