Voya 2014 Annual Report Download - page 392

Voya Financial, Inc.
Notes to the Consolidated Financial Statements
(Dollar amounts in millions, unless otherwise stated)
The following table presents the carrying amounts of total assets and liabilities of the CLOs in which the
Company has concluded that it holds a variable interest, but is not the primary beneficiary as of the dates
indicated. The Company determines its maximum exposure to loss to be: (i) the amount invested in the debt or
equity of the CLO and (ii) other commitments and guarantees to the CLO.
December 31,
2014
December 31,
2013
Carrying amount ............................ $ — $ —
Maximum exposure to loss .................... — —
Assets of nonconsolidated investment entities ..... 932.8 1,640.4
Liabilities of nonconsolidated investment entities . . . 983.7 1,639.0
Investment Funds
The Company manages or holds investments in certain private equity funds and single strategy hedge funds.
With these entities, the Company serves as the investment manager and is entitled to receive investment
management fees and contingent performance fees that are generally expected to be insignificant. Although the
Company has the power to direct the activities that significantly impact the economic performance of the funds,
it does not hold a significant variable interest in any of these funds and, as such, does not have the obligation to
absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity.
Accordingly, the Company is not considered the primary beneficiary and did not consolidate any of these
investment funds.
In addition, the Company does not consolidate the funds in which its involvement takes a form of a limited
partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the
Company with any substantive kick-out or participating rights, which would overcome the presumption of
control by the general partner.
Securitizations
The Company invests in various tranches of securitization entities, including RMBS, CMBS and ABS. Through
its investments, the Company is not obligated to provide any financial or other support to these entities. Each of
the RMBS, CMBS and ABS entities are thinly capitalized by design and considered VIEs. The Company’s
involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to
appoint or remove the servicer, special servicer, or investment manager, which are generally viewed to have the
power to direct the activities that most significantly impact the securitization entities’ economic performance, in
any of these entities, nor does the Company function in any of these roles. The Company, through its investments
or other arrangements, does not have the obligation to absorb losses or the right to receive benefits from the
entity that could potentially be significant to the entity. Therefore, the Company is not the primary beneficiary
and will not consolidate any of the RMBS, CMBS and ABS entities in which it holds investments. These
investments are accounted for as investments available-for-sale as described in the Fair Value Measurements
(excluding Consolidated Investment Entities) Note to these Consolidated Financial Statements and unrealized
capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS which are
accounted for under the FVO whose change in fair value is reflected in Other net realized gains (losses) in the
Consolidated Statements of Operations. The Company’s maximum exposure to loss on these structured
investments is limited to the amount of its investment. Refer to the Investments (excluding Consolidated
Investment Entities) Note to these Consolidated Financial Statements for details regarding the carrying amounts
and classifications of these assets.
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