Voya 2014 Annual Report Download - page 95

developments that have a negative effect on any particular geographic region or sector may have a greater
adverse effect on the investment portfolios to the extent that the portfolios are concentrated, which could affect
our results of operations and financial condition.
In addition, liability under environmental protection laws resulting from our commercial mortgage loan
portfolio and real estate investments could affect our results of operations or financial condition. Under the laws
of several states, contamination of a property may give rise to a lien on the property to secure recovery of the
costs of cleanup. In some states, such a lien has priority over the lien of an existing mortgage against the
property, which would impair our ability to foreclose on that property should the related loan be in default. In
addition, under the laws of some states and under the federal Comprehensive Environmental Response,
Compensation and Liability Act of 1980, we may be liable for costs of addressing releases or threatened releases
of hazardous substances that require remedy at a property securing a mortgage loan held by us, regardless of
whether or not the environmental damage or threat was caused by the obligor, which could harm our results of
operations and financial condition. We also may face this liability after foreclosing on a property securing a
mortgage loan held by us.
Our operations are complex and a failure to properly perform services could have an adverse effect on our
revenues and income.
Our operations include, among other things, retirement plan administration, policy administration, portfolio
management, investment advice, retail and wholesale brokerage, fund administration, shareholder services,
benefits processing and servicing, contract and sales and servicing, transfer agency, underwriting, distribution,
custodial, trustee and other fiduciary services. In order to be competitive, we must properly perform our
administrative and related responsibilities, including recordkeeping and accounting, regulatory compliance,
security pricing, corporate actions, compliance with investment restrictions, daily net asset value computations,
account reconciliations and required distributions to fund shareholders. Further, certain of our investment
management subsidiaries may act as general partner for various investment partnerships, which may subject them
to liability for the partnerships’ liabilities. If we fail to properly perform and monitor our operations, our business
could suffer and our revenues and income could be adversely affected.
Our products and services are complex and are frequently sold through intermediaries, and a failure to
properly perform services or the misrepresentation of our products or services could have an adverse effect on
our revenues and income.
Many of our products and services are complex and are frequently sold through intermediaries. In particular,
our insurance businesses are reliant on intermediaries to describe and explain their products to potential
customers. The intentional or unintentional misrepresentation of our products and services in advertising
materials or other external communications, or inappropriate activities by our personnel or an intermediary, could
adversely affect our reputation and business prospects, as well as lead to potential regulatory actions or litigation.
Revenues, earnings and income from our Investment Management business operations could be adversely
affected if the terms of our asset management agreements are significantly altered or the agreements are
terminated.
Our revenues from our investment management business operations are dependent on fees earned under
asset management and related services agreements that we have with the clients and funds we advise. Operating
revenues for this segment were $655.4 million for the year ended December 31, 2014, $607.7 million for the year
ended December 31, 2013, and $545.5 million for the year ended December 31, 2012 and could be adversely
affected if these agreements are altered significantly or terminated in the future. The decline in revenue that
might result from alteration or termination of our asset management services agreements could have a material
adverse impact on our results of operations or financial condition. Operating earnings before income taxes for
this segment were $210.3 million for the year ended December 31, 2014, $178.1 million for the year ended
December 31, 2013, and $134.5 million for the year ended December 31, 2012. In addition, under certain laws,
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