Voya 2014 Annual Report Download - page 330

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
Account balances of contracts with guarantees invested in variable separate accounts were as follows as of
December 31, 2014 and 2013:
December 31,
2014
December 31,
2013
Equity securities (including mutual funds):
Equity funds ............................ $31,054.7 $34,084.4
Bond funds ............................. 4,684.6 5,186.4
Balanced funds .......................... 5,461.3 5,438.2
Money market funds ..................... 671.2 812.3
Other ................................. 136.3 141.2
Total ...................................... $42,008.1 $45,662.5
In addition, the aggregate fair value of fixed income securities supporting separate accounts with Stabilizer
benefits as of December 31, 2014 and 2013, was $8.3 billion and $8.1 billion, respectively.
8. Reinsurance
The Company has reinsurance treaties covering a portion of the mortality risks and guaranteed death and living
benefits under its life insurance and annuity contracts. The Company remains liable to the extent its reinsurers do
not meet their obligations under the reinsurance agreements.
The Company reinsures its business through a diversified group of reinsurers. The Company monitors trends in
arbitration and any litigation outcomes with its reinsurers. Collectability of reinsurance balances are evaluated by
monitoring ratings and evaluating the financial strength of its reinsurers. Large reinsurance recoverable balances
with offshore or other non-accredited reinsurers are secured through various forms of collateral, including
secured trusts, funds withheld accounts and irrevocable letters of credit.
As of December 31, 2014, the Company had $7.1 billion of net unaffiliated reinsurance recoverables, of which
$2.5 billion, or 35.2%, were due from the Company’s largest unaffiliated reinsurer, Hannover Re. As of
December 31, 2013, the Company had $6.7 billion of net unaffiliated reinsurance recoverables, of which $2.4
billion, or 35.8%, were due from Hannover Re. Of the total amounts due from Hannover Re, $2.4 billion were
fully secured as of December 31, 2014 and 2013, respectively.
Information regarding the effect of reinsurance is as follows as of December 31, 2014 and 2013:
2014
Direct Assumed Ceded
Total, Net of
Reinsurance
Assets
Premiums receivable ............................... $ 98.0 $ 393.1 $ (444.4) $ 46.7
Reinsurance recoverable ............................ — — 7,116.9 7,116.9
Total ............................................... $ 98.0 $ 393.1 $ 6,672.5 $ 7,163.6
Liabilities
Future policy benefits and contract owner account
balances ....................................... $81,296.8 $3,713.9 $(7,116.9) $77,893.8
Liability for funds withheld under reinsurance
agreements .................................... 1,159.6 — — 1,159.6
Total ............................................... $82,456.4 $3,713.9 $(7,116.9) $79,053.4
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