Voya 2014 Annual Report Download - page 375

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
2014, $1.5 billion of LOCs were outstanding under the Revolving Credit Agreement. Of this total, LOCs issued
by ING Bank amount to $73.3. See the Unsecured Credit Facility section of the Financing Agreements Note to
these Consolidated Financial Statements for additional information.
On December 31, 2011, the Company entered into a $1.5 billion contingent capital LOC facility with ING Bank
to support the reinsurance obligations of SLDI to another of the Company’s wholly owned subsidiaries, which
was unconditional and irrevocable and scheduled to expire on December 31, 2031. Following the deposit by
SLDI of contributed capital as cash collateral into a funds withheld trust account to support its reinsurance
obligations to Voya Insurance and Annuity Company (“VIAC”), formerly known as ING USA, the $1.5 billion
contingent capital LOCs issued under the contingent capital LOC facility were cancelled and on May 14, 2013,
the $1.5 billion contingent capital LOC facility was terminated.
Affiliated Financing Agreements
In 2007, the Company entered into a $500.0 principal floating rate loan agreement with NN Group pursuant to
which the Company pays a variable rate of interest based on three month LIBOR. This note originally was to
have matured on August 10, 2012. Effective April 13, 2012, however, the term of the note was extended to
April 29, 2016 (the “2.54% Voya Holdings Inc. (formerly Lion Connecticut Holdings Inc.) Floating Rate Note,
due 2016”). On July 5, 2013, the outstanding balance of $150.0 for this note was paid in full to NN Group. The
Company incurred interest of $5.6 and $12.5 for the years ended December 31, 2013 and 2012, respectively.
Share Repurchase Program
During the year ended December 31, 2014, the Company repurchased 19,447,847 shares of its common stock
from ING Group for an aggregate purchase price of $725.0. The repurchases were each made pursuant to a
Direct Share Repurchase Program with ING Group. The per share purchase price paid by the Company in each
case was equal to the per share purchase price paid by the underwriters in registered public offerings of the
Company’s common stock by ING Group which were completed concurrently with each of the repurchase
transactions.
See the Shareholders’ Equity and Earnings per Common Share Note to these Consolidated Financial Statements
for additional information regarding shares repurchase transactions with ING Group.
Derivatives
The Company is party to several derivative contracts with NN Group and ING Bank and one or more of ING
Bank’s subsidiaries. Each of these contracts was entered into as a result of a competitive bid, which included
unaffiliated counterparties. The Company is exposed to various risks relating to its ongoing operations, including
but not limited to interest rate risk, foreign currency risk and equity market risk. To manage these risks, the
Company uses various strategies, including derivatives contracts, certain of which are with related parties, such
as interest rate swaps, equity options and currency forwards.
As of December 31, 2014 and 2013, the outstanding notional amounts were $464.1 (consisting of currency
forwards of $178.0 and equity options of $286.1) and $518.9 (consisting of interest rate swaps of $328.8 and
equity options of $190.1), respectively. As of December 31, 2014 and 2013, the market values for these contracts
were $11.5 and $10.5, respectively. For the years ended December 31, 2014, 2013 and 2012, the Company
recorded Other net realized capital gains (losses) in the Consolidated Statements of Operations of $5.1, $1.7 and
$20.1, respectively, with ING Bank and NN Group.
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