Voya 2014 Annual Report Download - page 38

Competition. Our Institutional Retirement Plans business competes with other large, well-established
insurance companies, asset managers, record keepers and diversified financial institutions. Competition
varies in all market segments as very few institutions are able to compete across all markets as we do. The
following chart presents a summary of the current competitive landscape in the markets where we offer our
Institutional Retirement Plans and stable value products:
Market Segment Competitive Landscape Select Competitors
Small-Mid Corporate Dominated by insurance-based providers, primarily
with third-party administration relationships
MassMutual
Empower
K-12 Education Dominated by a small number of insurance based
providers
AXA
VALIC
Higher Education 403(b) providers, asset managers and some
insurance-based providers
TIAA-CREF
Fidelity
Healthcare / Other Non-Profits 403(b) providers, asset managers and some
insurance-based providers
TIAA-CREF
Fidelity
Government Primarily insurance-based providers but also asset
managers and 457 providers
Empower
ICMA
Recordkeeping Asset Managers, business consulting services,
payroll firms and insurance-based providers
Fidelity
AON Hewitt
Product Offering Competitive Landscape Select Competitors
Stable Value Insurance companies and banks Prudential
MetLife
Pension Risk Transfer Insurance companies Principal Financial
MassMutual
Our full-service Institutional Retirement Plans business competes primarily based on pricing, the breadth of
our service and investment offerings, technical/regulatory expertise, industry experience, local enrollment and
financial planning support, investment performance and our ability to offer industry tailored product features to
meet the retirement income needs of our clients. Regarding the large plan recordkeeping only business, we have
seen consolidation among industry providers in recent years seeking to increase scale, improve cost efficiencies
and enter new market segments. However, the market remains competitive with few dominant players. As a
result, we emphasize our strong sponsor relationships, flexible value-added services, and technical and regulatory
expertise as our competitive strengths. Additionally, we compete across all institutional markets with our broad
suite of retirement readiness products, tools and services that help employers support the retirement preparedness
needs of their employees. Finally, we have seen new insurance company competitors enter the stable value space
because demand from participant and plan sponsors remains strong for these products. Our long standing
experience in the retirement market underscored by strong stable value expertise allows us to effectively compete
against existing and new providers.
Defined Benefit Recordkeeping Business Transition. In 2014, after reviewing our goals for our Retirement
segment and considering the trends we see in the employee retirement benefit market, the Company made a
strategic decision to transition, in an orderly fashion, out of the market for defined benefit plan administration
recordkeeping services. As a result, we will gradually exit our existing contracts that support defined benefit plan
administration recordkeeping over 2015 and 2016. We do not expect this transition to have a material impact on
our future results.
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