Voya 2014 Annual Report Download - page 342

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
(1) The insurance statutes of the respective state of domicile for the Company’s Principal Insurance
Subsidiaries set forth specific minimum capital requirements.
Insurance Subsidiaries Dividend Restrictions
The states in which the insurance subsidiaries of Voya Financial, Inc. are domiciled impose certain restrictions
on the subsidiaries’ ability to pay dividends to their parent. These restrictions are based in part on the prior year’s
statutory income and surplus. In general, dividends up to specified levels are considered ordinary and may be
paid without prior approval. Dividends in larger amounts, or “extraordinary” dividends, are subject to approval
by the insurance commissioner of the state of domicile of the insurance subsidiary proposing to pay the dividend.
Under the insurance laws applicable to Voya Financial, Inc.’s subsidiaries domiciled in Connecticut, Indiana,
Iowa and Minnesota, an “extraordinary” dividend or distribution is defined as a dividend or distribution that,
together with other dividends and distributions made within the preceding twelve months, exceeds the greater of
(i) 10% of the insurer’s policyholder surplus as of the preceding December 31, or (ii) the insurer’s net gain from
operations for the twelve-month period ending the preceding December 31, in each case determined in
accordance with statutory accounting principles. Under Colorado insurance law, an “extraordinary dividend” or
distribution is defined as a dividend or distribution that, together with other dividends and distributions made
within the preceding twelve months, exceeds the lesser of (i) 10% of the insurer’s policyholder surplus as of the
preceding December 31, or (ii) the insurer’s net gain from operations for the twelve-month period ending the
preceding December 31, in each case determined in accordance with statutory accounting principles. New York
has similar restrictions, except that New York’s statutory definition of “extraordinary” dividend or distribution is
an aggregate amount in any calendar year that exceeds the lesser of (i) 10% of policyholder’s surplus for the
twelve-month period ending the preceding December 31, or (ii) the insurer’s net gain from operations for the
twelve-month period ending the preceding December 31, not including realized capital gains. In addition, under
the insurance laws of Connecticut, Iowa and Minnesota, no dividend or other distribution exceeding an amount
equal to a domestic insurance company’s earned surplus may be paid without the domiciliary insurance
regulator’s prior approval.
Principal Insurance Subsidiaries—Dividends and Return of Capital
The following table summarizes dividends permitted to be paid by the Company’s Principal Insurance
Subsidiaries to Voya Financial, Inc. or Voya Holdings Inc. (formerly Lion Connecticut Holdings Inc.) without
the need for insurance regulatory approval for the periods presented:
Dividends Permitted without
Approval
2015 2014 2013
Subsidiary Name (State of domicile):
Voya Insurance and Annuity Company (IA) .............. $394.1(4) $216.3(2) $—
Voya Retirement Insurance and Annuity Company (CT) .... 321.8(5) 371.4(3) 264.1(1)
Security Life of Denver Insurance Company (CO) ......... 111.6(6) 32.5(2) —
ReliaStar Life Insurance Company (MN) ................ 194.2(4) 194.0(2) —
(1) $264.1 could have been paid without approval after June 26, 2013. $174.0 was paid on May 8, 2013 as an
extraordinary distribution. $90.0 was paid as an ordinary dividend on December 9, 2013.
(2) These could have been paid as ordinary dividends after May 8, 2014. $32.0 was paid as an ordinary
dividend on June 24, 2014. $409.0 was paid as ordinary dividends on May 19, 2014.
319