Voya 2014 Annual Report Download - page 426

Voya Financial, Inc.
Schedule II
Notes to Condensed Financial Information of Parent
(Dollar amounts in millions, unless otherwise stated)
Guarantees
Voya Financial, Inc. provides an indemnification of a securities lending agreement between the Master Trust and
a third-party bank. In the event of default on the securities lending agreement by the Master Trust, Voya
Financial, Inc. is required to indemnify the third-party bank for the outstanding obligations of the Master Trust.
These agreements and the related indemnifications amounted to $750.0 and $1.5 billion as of December 31, 2014
and 2013, respectively, and were entered into to obtain collateral to support Voya Financial, Inc.’s reinsurance
obligations and are effective for the duration that the collateral remains outstanding.
In the normal course of business, Voya Financial, Inc. enters into indemnification agreements with financial
institutions that issue surety bonds on behalf of Voya Financial, Inc. or its subsidiaries in connection with
litigation matters.
The following surplus maintenance agreements associated with Voya Financial, Inc.’s captive reinsurance
subsidiaries are effective for the duration of the in force policies subject to the related reinsurance transactions:
On December 31, 2010, Voya Financial, Inc. entered into a surplus maintenance agreement with Roaring
River II, LLC (“Roaring River II”), a wholly owned subsidiary of Voya Financial, Inc., whereby Voya
Financial, Inc. agrees to cause Roaring River II to maintain Adjusted Capital and Surplus at 250% of its
Company Action Level Risk-Based Capital (“CAL”). The Roaring River II agreement includes a provision
for capital contributions to be made in the event certain expense thresholds are exceeded by Roaring River
II.
On September 6, 2012, Voya Financial, Inc. entered into a reimbursement agreement with a third-party bank
for its wholly owned subsidiary, Roaring River III, LLC (“Roaring River III”). At inception, the
reimbursement agreement requires Voya Financial, Inc. to cause $165.0 of capital to be maintained in
Roaring River III Holding LLC, the intermediate holding company of Roaring River III, and $60.0 of capital
to be maintained in Roaring River III for a total of $225.0. On December 18, 2014, Voya Financial, Inc.
terminated the reimbursement agreement. Therefore, effective December 18, 2014, the guarantee
obligations of Voya Financial, Inc. were extinguished.
On January 1, 2014, Voya Financial, Inc. entered into a reimbursement agreement with a third-party bank
for its wholly owned subsidiary, Roaring River IV, LLC (“Roaring River IV”). At inception, the
reimbursement agreement requires Voya Financial, Inc. to cause no less than $78.6 of capital to be
maintained in Roaring River IV Holding LLC, the intermediate holding company of Roaring River IV and
Roaring River III Holding LLC, and $45.0 of capital to be maintained in Roaring River IV for a total of
$123.6. This amount is exclusive of any capital held for Roaring River III Holding LLC and will vary over
time based on a percentage of Roaring River IV in force life insurance.
On June 28, 2007, the Voya Financial, Inc. entered into a surplus maintenance agreement whereby Voya
Financial, Inc. agreed to cause Whisperingwind III, LLC (“WWIII”) to maintain Adjusted Capital and
Surplus at 200% of its CAL. Effective January 1, 2014, the surplus maintenance agreement was terminated
when the reinsurance agreements with WWIII were novated to Roaring River IV.
Effective January 15, 2014, Voya Financial, Inc. entered into a surplus maintenance agreement with
Langhorne I, LLC (“Langhorne I”), a wholly owned captive reinsurance subsidiary, whereby Voya
Financial, Inc. agrees to cause Langhorne I to maintain capital of at least $85.0.
The maximum potential obligations associated with the above surplus maintenance agreements are not specified
in the agreements and therefore, it is not possible to determine the maximum potential amounts due under these
guarantees.
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