Voya 2014 Annual Report Download - page 424

Voya Financial, Inc.
Schedule II
Notes to Condensed Financial Information of Parent
(Dollar amounts in millions, unless otherwise stated)
the United States and require management to adopt accounting policies and make certain estimates and
assumptions. Investments in subsidiaries are accounted for using the equity method of accounting.
2. Loans to Subsidiaries
Voya Financial, Inc. maintains reciprocal loan agreements with subsidiaries to facilitate unanticipated short-term
cash requirements that arise in the ordinary course of business. Under these loan agreements, the limitations on
borrowing are based on the nature of the subsidiary’s operations. For reciprocal loan agreements with insurance
companies, the amounts that either party may borrow from the other under the agreement vary and are equal to
2%-5% of the insurance subsidiary’s statutory net admitted assets (excluding separate accounts) as of the
previous year end depending on the state of domicile. For reciprocal loan agreements with non-insurance
subsidiaries, the limits vary and are set by management based on an assessment of the financial position of the
subsidiary. During the years ended 2013 and 2012, interest on any borrowing by a subsidiary was charged at the
rate of Voya Financial, Inc.’s cost of funds for the interest period, plus 0.15%. Effective January 2014, interest on
any borrowing by a subsidiary under a reciprocal loan agreement is charged at a rate based on the prevailing
market rate for similar third-party borrowings for securities. Borrowings by Voya Alternative Asset Management
LLC (“VAAM”) occur to enable VAAM to make capital contributions to the Voya Multi-Strategy Opportunity
Fund LLC (“the fund”), the fund that it manages. The applicable variable interest rate is equal to the rate of
return on capital invested in the fund, which may be negative over any given period.
Interest income earned on loans to subsidiaries was $5.0, $2.0 and $1.1 for the years ended December 31, 2014,
2013 and 2012, respectively. Interest income is included in Net investment income in the Condensed Statements
of Operations.
The following table summarizes the carrying value of the Company’s loans to subsidiaries for the periods
indicated:
As of December 31,
Subsidiaries Rate Maturity Date 2014 2013
Voya Alternative Asset Management LLC ............ -7.00% 06/30/2015 $ 3.3 $ 4.1
Voya Investment Management, LLC ................ 2.01% 01/05/2015 6.0 8.0
Voya Investment Management, LLC ................ 2.01% 01/07/2015 5.0 —
Voya Services Company .......................... 0.90% 01/02/2014 — 69.8
Voya Payroll Management, Inc. .................... 1.99% 01/02/2015 5.0 —
Voya Holdings Inc. .............................. 2.04% 01/28/2015 149.7 69.2
Voya Holdings Inc. .............................. 1.12% 01/09/2014 — 34.5
Voya Holdings Inc. .............................. 1.12% 01/14/2014 — 21.7
Security Life of Denver International Limited ......... 1.12% 01/14/2014 — 4.0
Total ......................................... $169.0 $211.3
3. Financing Agreements
Short-term Debt
Voya Financial, Inc. did not have any short-term debt borrowings outstanding as of December 31, 2014 and
2013.
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