Voya 2014 Annual Report Download - page 50

The Employee Benefits segment generates revenue from premiums, investment income, mortality and
morbidity income and policy and other charges. Profits are driven by the spread between investment income and
credited rates to policyholders on voluntary universal life and whole life products, along with the difference
between premiums and mortality charges collected and benefits and expenses paid for group life, stop loss and
voluntary health benefits. Our Employee Benefits segment generated operating earnings before income taxes of
$148.9 million for the year ended December 31, 2014.
The Employee Benefits segment offers attractive growth opportunities with much less capital strain. For
example, we believe there are significant opportunities through expansion in the VB market as employers shift
benefits costs to their employees. We have a number of new products and initiatives that we believe will help us
drive growth in this market. In addition to the VB marketplace, we believe similar growth exists in the affinity
marketplace. While expanding these lines, we also intend to continue to focus on profitability in our well
established group life and stop loss product lines, by adding profitable new business to our in-force block,
improving our persistency by retaining more of our best performing groups, and managing our loss ratios to
below 80%, particularly on stop loss policies.
Products and Services
Our Employee Benefits segment offers stop loss insurance, group life, VB, and group disability products.
These offerings are designed to meet the financial needs of both employers and employees by helping employers
attract and retain employees and control costs, as well as provide ease of administration and valuable protection
for employees.
Stop Loss. Our stop loss insurance provides coverage for mid-sized to large employers that self-insure their
medical claims. These employers provide a health plan to their employees and generally pay all plan-related
claims and administrative expenses. Our stop loss product helps these employers contain their health expenses by
reimbursing specified claim amounts above certain deductibles and by reimbursing claims that exceed a specified
limit. We offer this product via two types of protection—individual stop loss insurance and aggregate stop loss
insurance. The primary difference between these two types is a varying deductible; both coverages are re-priced
and renewable annually.
Group Life. Group life products span basic and supplemental term life insurance as well as accidental death
and dismemberment for mid-sized to large employers and affinity groups. These products offer employees
guaranteed issue coverage, convenient payroll deduction, affordable rates and conversion options.
VB. Our VB business involves the sale of universal life insurance, whole life insurance, critical illness,
accident insurance and short-term disability income through the workplace. This product lineup is 100%
employee-paid through payroll deduction. New products have been introduced that focus on group-like structures
that address the cost-shifting trend.
Group Disability. Group disability includes group long term disability, short term disability, telephonic
short term disability, voluntary long term disability and voluntary short term disability products for mid-sized to
large employers. This product offering is typically packaged for sale with group life products, especially in the
middle-market.
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