Voya 2014 Annual Report Download - page 376

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
The Company has sold protection under certain credit default swap derivative contracts that were previously
supported by a guarantee provided by NN Group. During 2013, the guarantee provided by NN Group on the sold
protection was replaced with guarantees provided by Voya Financial, Inc. The Company purchased protection under
one credit default swap derivative contract that is supported by the NN Group guarantee with potential exposure
limited to swap premiums to be paid. As of December 31, 2014 and 2013, the maximum potential future exposure
to the Company on credit default swaps supported by the NN Group guarantee was $33.1 and $43.5, respectively.
Operating Agreements
Voya Investment Management LLC (“VIM”) (formerly ING Investment Management LLC), a wholly owned
subsidiary of the Company, has certain operating agreements whereby it generates revenues and incurs expenses
with affiliated entities. For the year ended December 31, 2014, VIM generated revenues and incurred expenses of
$22.7 and $15.0, respectively, with NN Group, ING Group and other affiliates under the following operating
agreements. For the year ended December 31, 2013, VIM generated revenues and incurred expenses of $26.0 and
$15.0, respectively, with NN Group, ING Group and other affiliates under the following operating agreements.
For the year ended December 31, 2012, VIM generated revenues and incurred expenses of $20.0 and $8.8,
respectively, with NN Group and other affiliates under the following operating agreements:
• VIM manages, co-manages, and distributes certain investment products for various affiliates. For the
years ended December 31, 2014, 2013 and 2012, revenue earned under these agreements was $22.7,
$25.7, and $20.0 respectively.
• VIM receives distribution fees for the sale of certain offshore funds to U.S. clients and closed end
funds in the U.S. For the year ended December 31, 2014, there was no revenue under these
arrangements. For the year ended December 31, 2013, revenue under these arrangements was $0.3. For
the year ended December 31, 2012, there was no revenue under these arrangements.
• VIM pays sub advisory and other fees to certain affiliates related to the management and sales of
mutual funds and other investment products. For the years ended December 31, 2014 and 2013, fees
incurred under these agreements were $15.0 for each year. For the year ended December 31, 2012, fees
incurred under these arrangements were $12.3.
• VIM provided Information Technology (“IT”) support, management oversight, risk management,
procurement services, and trade processing to certain affiliates and is reimbursed for a share of the
related costs. For the years ended December 31, 2014 and 2013, there were no expenses reimbursed to
VIM under these agreements. For the year ended December 31, 2012, expenses reimbursed to VIM
under these agreements were $3.9.
• VIM received allocation of expenses from affiliates located outside of U.S. for staff and projects costs.
For the years ended December 31, 2014 and 2013, there were no costs incurred under these
agreements. For the year ended December 31, 2012, costs incurred under these agreements were $0.4.
• VIM entered into a services agreement in January 2014 with ING Bank, which was further amended in
July 2014. ING Bank engages in certain short-term secured lending transactions with counterparties
that post collateral in the form of securitized assets, and pursuant to the services agreement, VIM
provides evaluation services to ING Bank on the collateral. For the year ended December 31, 2014,
VIM earned $0.4.
As of December 31, 2014, the Company had net receivables of $0.8 resulting from operating agreements with
other affiliates, ING Bank and NN Group of $0.8, $0.1 and $(0.1), respectively. As of December 31, 2013, the
Company had net receivables of $2.2 resulting from operating agreements with other affiliates, ING Group and
NN Group of $0.6, $1.3 and $0.3 respectively.
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