Voya 2014 Annual Report Download - page 331

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
2013
Direct Assumed Ceded
Total, Net of
Reinsurance
Assets
Premiums receivable ............................. $ 93.5 $ 356.7 $ (374.6) $ 75.6
Reinsurance recoverable .......................... — — 6,702.2 6,702.2
Total .............................................. $ 93.5 $ 356.7 $ 6,327.6 $ 6,777.8
Liabilities
Future policy benefits and contract owner account
balances ..................................... $80,315.6 $3,691.1 $(6,702.2) $77,304.5
Liability for funds withheld under reinsurance
agreements ................................... 1,181.5 — — 1,181.5
Total .............................................. $81,497.1 $3,691.1 $(6,702.2) $78,486.0
Information regarding the effect of reinsurance is as follows for the years ended December 31, 2014, 2013 and
2012:
2014 2013 2012
Premiums:
Direct premiums ............................................ $2,891.0 $ 2,184.1 $ 2,084.0
Reinsurance assumed ........................................ 1,238.3 1,233.0 1,303.6
Reinsurance ceded ........................................... (1,502.9) (1,460.8) (1,526.5)
Net premiums .......................................... $2,626.4 $ 1,956.3 $ 1,861.1
Fee income:
Gross fee income ............................................ $3,637.3 $ 3,671.4 $ 3,520.7
Reinsurance ceded ........................................... (4.8) (5.1) (5.3)
Net fee income ......................................... $3,632.5 $ 3,666.3 $ 3,515.4
Interest credited and other benefits to contract owners / policyholders:
Direct interest credited and other benefits to contract owners /
policyholders ............................................. $6,159.4 $ 4,786.9 $ 5,205.5
Reinsurance assumed ........................................ 1,267.3 1,221.9 1,153.4
Reinsurance ceded(1) ......................................... (1,488.8) (1,511.0) (1,497.3)
Net interest credited and other benefits to contract owners /
policyholders ......................................... $5,937.9 $ 4,497.8 $ 4,861.6
(1) Includes $435.4, $414.8 and $399.7 for amounts paid to reinsurers in connection with the Company’s UL
contracts for the years ended December 31, 2014, 2013 and 2012, respectively.
Effective October 1, 1998, the Company disposed of a block of its individual life insurance business under an
indemnity reinsurance arrangement with a subsidiary of Lincoln National Corporation (“Lincoln”) for $1.0 billion.
Under the agreement, Lincoln contractually assumed from the Company certain policyholder liabilities and
obligations, although the Company remains obligated to contract owners. The Lincoln subsidiary established a trust
to secure its obligations to the Company under the reinsurance transaction. Of the Reinsurance recoverable on the
Consolidated Balance Sheets, $1.9 billion and $2.0 billion as of December 31, 2014 and 2013, respectively, is
related to the reinsurance recoverable from the subsidiary of Lincoln under this reinsurance agreement.
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