Voya 2014 Annual Report Download - page 41

Annual Reset and Multi-Year Guarantee Annuities (“MYGAs”). Our in-force block includes Annual Reset
and MYGA products, which provide guaranteed minimum rates of up to 4.5% and with crediting rate terms from
one year to 10 years. These products are running off, with net outflows of $1.7 billion in 2014, compared with
$1.2 billion in 2013 and $2.8 billion in 2012. The net outflows in 2012 were high due to a large block of
MYGAs, which reached the end of their current guarantee period in 2012. The run-off of these Annual Reset and
MYGA contracts is expected to continue to enhance the margin of our Annuities segment in future periods.
Although not currently a significant portion of new sales, we also offer other fixed annuities with a
guaranteed interest rate or a periodic annuity payment schedule suitable for clients seeking a stable return.
Mutual Fund Custodial Products. Our Annuities segment also offers tax-qualified mutual fund custodial
products, which provide flexible investment options across mutual fund families on a no-load basis. We charge a
recordkeeping fee based on the amount of assets invested in the account, and we are paid asset-based fees by the
managers of the mutual funds within the account. This product is designed to be a streamlined, simple rollover
solution providing continued tax deferral on retirement assets. No minimum guarantees are offered for this
product.
The following chart presents the key in-force annuity and mutual fund custodial products within this
segment, along with data on AUM for each product, excluding payout annuities:
($ in billions) AUM
Annuity Product As of December 31, 2014
Fixed Indexed Annuities (FIA) .............. $13.4
Multi-Year Guarantee Annuities (MYGA) &
other Fixed Annuities .................... $ 5.9
Mutual Funds Custodial Products ............ $ 4.1
Structured Annuity Product. In January 2015, our Annuities segment launched a new “collared” annuity
product that credits interest (positive or negative) based on the performance of a market index selected by the
customer, such as the S&P 500. Customers have limited downside protection in the event of negative market
performance, and in exchange for this protection agree to a cap on positive performance. The product, which was
filed as a variable annuity, does not contain any guaranteed minimum income, withdrawal or death benefits (i.e.,
the types of guarantees included in policies we placed in our Closed Block Variable Annuity segment).
Markets and Distribution
Our target markets for annuities include individual retirees and pre-retirees seeking to accumulate or receive
distributions of assets for retirement. Annuity products are primarily distributed by independent marketing
organizations, independent broker-dealers, banks, independent insurance agents, pension professionals and
affiliated broker-dealers. The following chart presents our Annuities distribution, by channel.
($ in millions) Sales % of Sales
Channel
Year Ended
December 31, 2014
Year Ended
December 31, 2014
Independent Insurance Agents /
Independent Market Organizations ...... $ 824.4 28.9%
Independent Broker-Dealers ............. $1,255.8 44.0%
Affiliated Broker-Dealers ............... $ 498.8 17.5%
Banks and Other Financial Institutions ..... $ 276.8 9.7%
Our mutual fund custodial products are distributed nationally, primarily through relationships with
independent brokers, financial planners and agents. New sales are obtained from a “rollover” from an existing
retirement account. The resulting custodial account is established as an IRA to maintain tax-deferred status for
our customer.
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