Exhibit 99.2
ING U.S. Quarterly Investor Supplement
March 31, 2013
ING U.S. Table of Contents
Page
Consolidated
Explanatory Note on Non-GAAP Financial Information 3-4
Organizational Chart 5
Key Metrics 6
Return on Capital 7
Baseline Operating Earnings Before Interest, After Income Taxes 8
Consolidated Balance Sheet 9
Consolidated Statement of Operations 10
Ongoing Business Sources of Operating Earnings 11
Consolidated Earnings Before Income Taxes 12
Operating Earnings by Segment 13
Operating Revenues and Operating Earnings by Segment 14
Baseline Operating Earnings by Segment 15
DAC/VOBA Rollforward 16
Capital Structure 17
AUM/AUA 18
Retirement
Sources of Operating Earnings 20
Operating Earnings 21
Account Value 22
Account Value Rollforward 23
Annuity
Sources of Operating Earnings 25
Operating Earnings 26
Annuities Other Metrics 27
AUM Rollforward 28
Investment Management
Sources of Operating Earnings 30
Operating Earnings 31
Key Metrics 32
Account Value Rollforward by Source 33
Account Value by Asset Type 34
Individual Life
Sources of Operating Earnings 36
Operating Earnings 37
Key Metrics 38
Employee Benefits
Sources of Operating Earnings 40
Operating Earnings 41
Key Metrics 42
Corporate
Operating Income (Loss) 44
Closed Blocks
Operating Earnings 46
Variable Annuity Income (Loss) Before Taxes 47
Variable Annuity and Death Benefits 48
Account Value and Other Metrics 49
General Account
Portfolio Composition 51
Portfolio Results 52
Alternative Investment Income 53
Unrealized Gains (Losses) 54
Asset Backed Securities 55
RMBS Securities Summary 56
CMBS and Other Asset-Backed Securities Summary 57
Mortgage Loans on Real Estate 58
US and Foreign Corporate Securities 59
Exposure to European Debt- Fixed Maturities and Equity Securities 60
Additional Information
Adjustments to Operating Earnings by Segment 62
Average Capital and Financial Leverage 63
Operating Revenue by Segment 64
Ongoing Business Non-GAAP to GAAP Reconciliation 65-67
Fixed Maturity Securities—Hannover Life Re Modco Reinsurance 68
Financial Ratings 69
ING U.S.
Page 2 of 69
ING U.S
Explanatory Note on Non-GAAP Financial Information
Operating earnings before income taxes is an internal measure we use to evaluate segment performance. Operating earnings before income taxes does not replace net
income (loss) as the GAAP measure of the consolidated results of operations and consists of operating revenues less operating benefits and expenses. Each segment_s operating earnings before income taxes is calculated by adjusting income (loss) before income taxes for the following items: “ Net investment gains (losses), net of related amortization of DAC, VOBA, sales inducements and unearned revenue. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the fair value option (_FVO_) unrelated to the implied loan-backed security income recognition for certain mortgage -backed obligations and changes in the fair value of derivative instruments, excluding realized gains (losses) associated with swap settlements and accrued interest; “ Net guaranteed benefit hedging gains (losses), which include changes in the fair value of derivatives related to guaranteed benefits, net of related reserve increases (decreases) and net of related amortization of DAC, VOBA and sales inducements, less the estimated cost of these benefits. The estimated cost, which is reflected in operating results, reflects the expected cost of these benefits if markets perform in line with our long-term expectations and includes the cost of hedging. All other derivative and reserve changes related to guaranteed benefits are excluded from operating results, including the impacts related to changes in our nonperformance spread;
“ Income (loss) related to business exited through reinsurance or divestment;
“ Income (loss) attributable to noncontrolling interests;
“ Income (loss) related to early extinguishment of debt;
“ Impairment of goodwill, value of management contract rights and value of customer relationships acquired;
“ Immediate recognition of net actuarial gains (losses) related to our pension and other post-employment benefit obligations and gains (losses)from plan amendments and curtailments; and “ Other items, including restructuring expenses (severance, lease write-offs, etc.), integration expenses related to our acquisition of CitiStreet and certain third-party expenses related to the anticipated divestment of the Company by ING Group.
ING U.S.
Page 3 of 69
ING U.S
Explanatory Note on Non-GAAP Financial Information
Operating revenues also excludes the revenues of our Closed Block Variable Annuity segment, since this segment is managed to focus on protecting regulatory and rating
agency capital rather than achieving operating metrics. When we present the adjustments to Total revenues on a consolidated basis, each adjustment excludes the relative portions attributable to our Closed Block Variable Annuity segment.
The most directly comparable GAAP measure to operating revenues is total revenues. For a reconciliation of operating revenue to total revenues, please refer to the “Operating Revenues by Segment” page in this document.
We analyze our Ongoing Business performance based on the sources of earnings. We believe this supplemental information is useful in order to gain a better understanding of our operating earnings (loss) before income taxes for the following reasons: (1) we analyze our business using this information and (2) this presentation can be helpful for investors to understand the main drivers of operating earnings (loss) before income taxes of our ongoing businesses. The sources of earnings are defined as such:
“ Investment spread and other investment income consists of net investment income and net realized investment gains (losses) associated with swap settlements and accrued interest, less interest credited to policyholder reserves.
“ Revenues related to businesses exited through reinsurance or divestment;
“ Revenues attributable to noncontrolling interests;
“ Other adjustments to operating revenues primarily reflect fee income earned by our broker dealers for sales of non-proprietary products, which are reflected net of commission expense in our segments_ operating revenues.
“ Fee based margin consists primarily of fees earned on AUM, AUA, and transaction based recordkeeping fees.
“ Net underwriting gain (loss) and other revenue contains the following: the difference between fees charged for insurance risks and incurred benefits, including mortality, morbidity, and surrender
results, contractual charges for universal life and annuity contracts, the change in the unearned revenue reserve for universal life contracts, and that portion of traditional life insurance premiums
intended to cover expenses and profits. Certain contract charges for universal life insurance are not recognized in income immediately, but are deferred as unearned revenues and are amortized
into income in a manner similar to the amortization of DAC.
“ Administrative expenses are general expenses, net of amounts capitalized as acquisition expenses and exclude commission expenses and fees on letters of credit.
“ Trail commissions are commissions paid that are not deferred and thus recorded directly to expense.
“ For a detail explanation of DAC/VOBA and other intangibles amortization/unlocking see _Unlocking of DAC/VOBA and other Contract Owner/Policyholder Intangibles_ in our SEC filings.
ING U.S. Page 4 of 69
ING U.S. Page 5 of 69
ING U.S.
Key Metrics
Three Months Ended Year-to-Date
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
(in millions USD, except for per share data)
Operating earnings before income taxes—Ongoing Business 285.4 228.9 306.4 191.7 263.8 285.4 263.8
Operating earnings before income taxes—ING U.S. 256.7 209.1 270.6 198.8 239.8 256.7 239.8
Net income (loss)(225.5)(106.9) 386.8 852.1(520.8)(225.5)(520.8)
Net income (loss) attributable to noncontrolling interest(13.5)(84.2) 20.3 217.7(15.6)(13.5)(15.6)
Net income (loss) available to ING U.S. Inc.‘s common shareholder(212.0)(22.7) 366.5 634.4(505.2)(212.0)(505.2)
Ongoing Business operating return on equity (1) 9.5% N/A N/A N/A N/A 9.5% N/A
Debt to Capital (Excluding AOCI) 27.2% 27.3% 27.6% 28.6% 30.4% 27.2% 30.4%
Per Share Data:
Operating earnings per share 0.73 0.59 0.76 0.56 0.68 0.73 0.68
Net income (loss) per share(0.92)(0.10) 1.59 2.76(2.20)(0.92)(2.20)
Total ING U.S. Inc. Shareholder’s Equity—Excluding AOCI 9,938.3 10,164.2 10,209.0 9,820.3 9,242.9 9,938.3 9,242.9
Book value per share (Excluding AOCI) 43.21 44.19 44.39 42.70 40.19 43.21 40.19
Diluted weighted average shares outstanding (in millions) 230.0 230.0 230.0 230.0 230.0 230.0 230.0
(1) Assume financial leverage -to-capital ratio of approximately 25% in each year and a weighted average pre-tax interest rate of approximately 5.5% on financial leverage
ING U.S.
Page 6 of 69
ING U.S. Return on Capital
Year Ended December 31, 2012
Retirement Solutions Investment Insurance Solutions Ongoing Closed Block Corporate and Consolidated
Retirement Annuities Management Individual Life Employee Business Variable Annuity Other Closed
Benefits Blocks
(in millions USD, unless otherwise indicated)
Beginning Capital 4,333 2,471 275 2,545 413 10,037 3,452 311 13,800
Ending Capital 4,284 1,949 303 2,858 429 9,823 3,262 888 13,973
Average Capital (2) 4,308 2,210 289 2,702 421 9,930 3,357 599 13,886
Adjusted operating earnings before interest and after
income taxes 308.1 129.7 86.0 115.7 71.0 710.5—39.6 750.1
Operating Return on Capital 7.2% 5.9% 29.8% 4.3% 16.9% 7.2%—6.6% 5.4%
Ongoing Business Operating Return on Equity(3) 8.3%
(1) The 1/1/13 beginning capital does not agree to the 12/31/12 ending capital at the segment level due to certain
reallocations of capital, primarily due to recapitalization activity (completed and anticipated).
(2) Total Company average capital is allocated to each of our segments in proportion to each segment_s target statutory
capital, plus an allocation of the differences between statutory capital and total ING U.S., Inc. shareholder_s equity on a
GAAP basis (excluding AOCI), based on each segment_s portion of these differences. Statutory surplus in excess of
target statutory capital and certain corporate assets and liabilities, such as certain deferred tax assets and liabilities for
unfunded pension plans, are allocated to the Corporate segment.
(3) Assume financial leverage-to-capital ratio of approximately 25% in each year and a weighted average pre-tax
interest rate of approximately 5.5% on financial leverage.
ING U.S.
Page 7 of 69
ING U.S.
Adjusted Operating Earnings Before Interest, After Income Taxes
Three Months Ended March 31, 2013
Retirement Solutions Investment Insurance Solutions Ongoing Business Closed Block Corporate and Other Consolidated
Retirement Annuities Management Individual Life Employee Benefits Variable Annuity Closed Blocks
(in millions USD, unless otherwise indicated)
Operating earnings before income taxes 137.8 54.3 30.1 50.8 12.4 285.4 -(28.7) 256.7
Less:
Interest expense — — — -(41.9)(41.9)
DAC/VOBA and other intangibles unlocking 3.0 7.0 -(2.7)—7.3 — 7.3
Adjusted operating earnings before interest 134.8 47.3 30.1 53.5 12.4 278.1—13.2 291.3
Income tax expense (2) 47.2 16.6 10.5 18.7 4.3 97.3—4.6 101.9
Adjusted operating earnings before interest and
after income taxes 87.6 30.7 19.6 34.8 8.1 180.8—8.6 189.4
Year Ended December 31, 2012
Retirement Solutions Investment Insurance Solutions Ongoing Business Closed Block Corporate and Other Consolidated
Retirement Annuities Management Individual Life Employee Benefits Variable Annuity Closed Blocks
(in millions USD, unless otherwise indicated)
Operating earnings before income taxes 448.6 102.2 134.5 196.2 109.4 990.9 -(72.6) 918.3
Less:
Interest expense — — — -(127.8)(127.8)
DAC/VOBA and other intangibles unlocking 5.8(86.2)—3.4 -(77.0) —(77.0)
Impact of investment portfolio restructuring (1)(31.2)(11.2) 2.2 14.8 0.1(25.3) -(5.8)(31.1)
Adjusted operating earnings before interest 474.0 199.6 132.3 178.0 109.3 1,093.2—61.0 1,154.2
Income tax expense (2) 165.9 69.9 46.3 62.3 38.3 382.7—21.4 404.1
Adjusted operating earnings before interest and
after income taxes 308.1 129.7 86.0 115.7 71.0 710.5—39.6 750.1
(1) Includes the net loss included in operating earnings from the sale of certain alternative investments
and investment income associated with assets disposed of during the portfolio restructuring effected
during 2012.
(2) Based on an assumed effective tax rate of 35%.
ING U.S. Page 8 of 69
ING U.S.
Consolidated Balance Sheet
Balances as of
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Assets
Total investments 92,213.8 95,487.6 95,194.7 95,316.1 90,067.5
Cash and cash equivalents 2,787.7 1,786.8 2,078.7 1,815.3 1,277.0
Assets held in separate accounts 103,098.3 97,667.4 96,312.2 92,965.6 97,050.1
Reinsurance recoverable 7,151.0 7,379.3 7,565.9 7,602.7 7,724.8
Short term investments under securities loan agreement and accrued
investment income 1,764.3 1,527.5 1,312.8 1,426.0 1,239.5
Deferred policy acquisition costs, Value of business acquired 4,019.6 3,656.3 3,623.8 3,938.2 4,369.5
Goodwill and other intangible assets 341.8 348.5 358.9 360.4 372.0
Other assets (1) 1,363.7 1,575.2 1,582.6 1,704.0 2,084.6
Assets related to consolidated investment entities 8,109.8 6,965.6 6,181.0 6,036.4 5,691.2
Total Assets 220,850.0 216,394.2 214,210.6 211,164.7 209,876.2
Liabilities
Future policy benefits and contract owner account balances 85,875.1 86,055.7 86,294.8 87,522.5 87,411.0
Liabilities related to separate accounts 103,098.3 97,667.4 96,312.2 92,965.6 97,050.1
Funds held under reinsurance agreements 1,170.8 1,236.6 1,265.3 1,256.8 1,240.5
Payables under securities loan agreements, including collateral held 1,348.8 1,509.8 1,299.8 1,736.7 832.8
Short-term debt 321.2 1,064.6 774.9 889.6 1,180.0
Long-term debt 3,440.8 3,171.1 3,642.7 3,543.6 1,343.3
Other liabilities (2) 4,743.3 5,506.0 5,572.0 5,413.3 4,664.3
Liabilities related to consolidated investment entities 5,252.8 4,121.8 3,097.4 2,753.7 2,691.4
Total Liabilities 205,251.1 200,333.0 198,259.1 196,081.8 196,413.4
Shareholder’s Equity
Common stock 2.3 2.3 2.3 2.3 2.3
Additional paid-in capital 22,909.9 22,917.6 22,897.7 22,886.3 22,871.1
Retained earnings (deficit)(12,973.9)(12,755.7)(12,691.0)(13,068.3)(13,630.5)
Total ING U.S. Inc. Shareholder’s Equity—Excluding AOCI 9,938.3 10,164.2 10,209.0 9,820.3 9,242.9
Accumulated other comprehensive income 3,452.8 3,710.7 3,701.5 3,021.5 2,587.0
Total ING U.S. Inc. Shareholder’s Equity 13,391.1 13,874.9 13,910.5 12,841.8 11,829.9
Noncontrolling interest 2,207.8 2,186.3 2,041.0 2,241.1 1,632.9
Total Shareholder’s Equity 15,598.9 16,061.2 15,951.5 15,082.9 13,462.8
Total Liabilities and Shareholder Equity 220,850.0 216,394.2 214,210.6 211,164.7 209,876.2
(1) Includes Other assets and Sales inducements to contract holders
(2) Includes Other liabilities, Derivatives, Pension and other post-employment provisions, Current income taxes, and Deferred income taxes
ING U.S. Page 9 of 69
ING U.S.
Consolidated Statement of Operations
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Revenues
Net investment income 1,198.7 1,055.4 1,226.2 1,138.9 1,277.4 1,198.7 1,277.4
Fee income 891.9 890.6 872.9 862.9 889.0 891.9 889.0
Premiums 471.9 471.2 453.5 474.8 461.6 471.9 461.6
Net realized gains (losses)(874.8)(384.2)(132.4) 485.7(1,249.9)(874.8)(1,249.9)
Income (loss) related to consolidated investment entities 35.3 79.0 46.9 299.1 18.2 35.3 18.2
Other revenues 95.6 91.8 97.2 100.5 89.0 95.6 89.0
Total revenues 1,818.6 2,203.8 2,564.3 3,361.9 1,485.3 1,818.6 1,485.3
Benefits and expenses
Interest credited and other benefits to contract owners/policyholders(1,061.4)(1,225.3)(1,106.5)(1,511.6)(1,018.2)(1,061.4)(1,018.2)
Operating expenses(759.1)(824.1)(858.9)(712.6)(759.4)(759.1)(759.4)
Net amortization of DAC/VOBA(130.5)(182.4)(150.0)(216.2)(173.7)(130.5)(173.7)
Interest expense(44.4)(44.7)(46.6)(38.1)(24.3)(44.4)(24.3)
Operating expenses related to consolidated investment entities(37.5)(35.4)(28.4)(30.3)(22.6)(37.5)(22.6)
Total benefits and expenses(2,032.9)(2,311.9)(2,190.4)(2,508.8)(1,998.2)(2,032.9)(1,998.2)
Income (loss) before income taxes(214.3)(108.1) 373.9 853.1(512.9)(214.3)(512.9)
ING U.S. Page 10 of 69
ING U.S.
Ongoing Business Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Sources of operating earnings before income
taxes:
Investment spread and other investment income 363.7 342.4 371.8 329.0 385.8 363.7 385.8
Fee based margin 343.6 350.0 336.0 320.8 330.7 343.6 330.7
Net underwriting gain (loss) and other revenue 179.9 222.1 214.1 178.6 180.0 179.9 180.0
Administrative expenses(400.3)(422.0)(410.7)(414.7)(421.8)(400.3)(421.8)
Trail commissions(66.1)(63.3)(61.2)(59.5)(65.0)(66.1)(65.0)
DAC/VOBA and other intangibles amortization,
excluding unlocking(142.7)(151.6)(150.0)(148.7)(124.9)(142.7)(124.9)
DAC/VOBA and other intangibles unlocking 7.3(48.7) 6.4(13.8)(20.9) 7.3(20.9)
Operating earnings before income taxes 285.4 228.9 306.4 191.7 263.8 285.4 263.8
ING U.S. Page 11 of 69
ING U.S.
Consolidated Earnings Before Income Taxes
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Operating revenues
Net investment income and net realized gains (losses) 985.6 978.6 1,005.6 970.5 1,066.2 985.6 1,066.2
Fee income 608.0 613.7 589.3 599.4 601.2 608.0 601.2
Premiums 470.5 472.0 454.1 475.6 462.4 470.5 462.4
Other revenue 26.4 31.3 27.7 33.5 25.3 26.4 25.3
Total operating revenues 2,090.5 2,095.6 2,076.7 2,079.0 2,155.1 2,090.5 2,155.1
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(1,151.8)(1,126.3)(1,145.5)(1,194.6)(1,213.6)(1,151.8)(1,213.6)
Operating expenses(517.4)(533.0)(521.2)(492.1)(548.7)(517.4)(548.7)
Net amortization of DAC/VOBA(120.9)(184.2)(94.1)(156.4)(128.7)(120.9)(128.7)
Interest expense(43.7)(43.0)(45.3)(37.1)(24.3)(43.7)(24.3)
Total operating benefits and expenses(1,833.8)(1,886.5)(1,806.1)(1,880.2)(1,915.3)(1,833.8)(1,915.3)
Operating earnings before income taxes 256.7 209.1 270.6 198.8 239.8 256.7 239.8
Adjustments:
Closed Block Variable Annuity(477.1)(167.3) 0.8 381.9(907.7)(477.1)(907.7)
Net realized investment gains (losses) and realized charges and adjustments 41.8 54.7 207.9 132.6 60.4 41.8 60.4
Net guaranteed benefit hedging gains (losses) and related charges and adjustments 3.1(16.7) 20.6(44.1) 137.3 3.1 137.3
Income (loss) related to businesses exited through reinsurance or divestment(16.9)(11.7)(9.9)(11.6)(12.6)(16.9)(12.6)
Net income (loss) attributable to noncontrolling interest(13.5)(84.2) 20.3 217.7(15.6)(13.5)(15.6)
Other adjustments to operating earnings*(8.4)(92.0)(136.4)(22.2)(14.5)(8.4)(14.5)
Total non-operating(471.0)(317.2) 103.3 654.3(752.7)(471.0)(752.7)
Income (loss) before income taxes(214.3)(108.1) 373.9 853.1(512.9)(214.3)(512.9)
* Other adjustments to operating earnings above includes:
Immediate recognition of actuarial gains (losses) related to pension and other post-employment benefit
obligations and any impact of plan amendments, and other items, including restructuring expenses
(severance, lease write-offs, etc.), integration expenses related to the Company_s acquisition of
CitiStreet and certain third-party expenses related to the anticipated divestment of the Company by
ING Group
ING U.S. Page 12 of 69
ING U.S.
Operating Earnings by Segment
(in millions USD) Three Months Ended March 31, 2013
Retirement Solutions Investment Insurance Solutions Ongoing Business Corporate Closed Blocks Consolidated
Retirement Annuities Management Individual Life Employee Benefits
Operating revenues
Net investment income and net realized gains (losses) 388.9 287.1 2.8 216.9 28.4 924.1 17.5 44.0 985.6
Fee income 183.8 9.9 121.7 276.8 15.8 608.0 — 608.0
Premiums 0.5 7.8—185.8 274.9 469.0—1.5 470.5
Other revenue 10.0 2.8 7.4 7.6(1.0) 26.8(0.4)—26.4
Total operating revenues 583.2 307.6 131.9 687.1 318.1 2,027.9 17.1 45.5 2,090.5
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(204.6)(184.4) -(501.6)(242.6)(1,133.2) 1.7(20.3)(1,151.8)
Operating expenses(204.0)(31.0)(101.8)(90.9)(60.0)(487.7)(26.0)(3.7)(517.4)
Net amortization of DAC/VOBA(36.8)(37.9) -(42.9)(3.1)(120.7)(0.1)(0.1)(120.9)
Interest expense — -(0.9) -(0.9)(42.8) -(43.7)
Total operating benefits and expense(445.4)(253.3)(101.8)(636.3)(305.7)(1,742.5)(67.2)(24.1)(1,833.8)
Operating earnings before income taxes 137.8 54.3 30.1 50.8 12.4 285.4(50.1) 21.4 256.7
Three Months Ended March 31, 2012
Retirement Solutions Investment Insurance Solutions Ongoing Business Corporate Closed Blocks Consolidated
Retirement Annuities Management Individual Life Employee Benefits
Operating revenues
Net investment income and net realized gains (losses) 388.1 329.0 5.4 247.0 31.7 1,001.2 13.9 51.1 1,066.2
Fee income 177.1 7.4 117.9 283.3 15.4 601.1—0.1 601.2
Premiums 0.5 11.8—179.4 268.4 460.1—2.3 462.4
Other revenue 14.7 3.0 7.3 2.3(2.2) 25.1 0.7(0.2) 25.3
Total operating revenues 580.4 351.2 130.6 712.0 313.3 2,087.4 14.6 53.3 2,155.1
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(208.4)(241.9) -(504.8)(234.0)(1,189.1)(0.1)(24.4)(1,213.6)
Operating expenses(213.9)(31.2)(97.6)(97.0)(61.2)(500.9)(43.8)(4.0)(548.7)
Net amortization of DAC/VOBA(33.8)(41.6) -(50.6)(2.5)(128.5)(0.1)(0.1)(128.7)
Interest expense(0.4)(0.1) -(4.6) -(5.1)(18.6)(0.6)(24.3)
Total operating benefits and expense(456.5)(314.8)(97.6)(657.0)(297.7)(1,823.6)(62.6)(29.1)(1,915.3)
Operating earnings before income taxes 123.9 36.4 33.0 55.0 15.6 263.8(48.4) 24.3 239.8
ING U.S. Page 13 of 69
ING U.S.
Operating Revenues and Operating Earnings by Segment
(in millions USD) Three Months Ended Year-to-Date
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Operating Revenues
Retirement 583.2 570.5 582.1 538.9 580.4 583.2 580.4
Annuities 307.6 317.4 309.7 328.7 351.2 307.6 351.2
Total Retirement Solutions 890.8 887.9 891.8 867.6 931.6 890.8 931.6
Investment Management 131.9 142.5 142.2 130.2 130.6 131.9 130.6
Individual Life 687.1 694.2 678.5 709.2 712.0 687.1 712.0
Employee Benefits 318.1 313.6 310.5 313.8 313.3 318.1 313.3
Total Insurance Solutions 1,005.2 1,007.8 989.0 1,023.0 1,025.3 1,005.2 1,025.3
Ongoing Business 2,027.9 2,038.2 2,023.0 2,020.8 2,087.5 2,027.9 2,087.5
Corporate 17.1 19.2 13.2 19.3 14.2 17.1 14.2
Total Closed Blocks 45.5 38.2 40.5 38.9 53.4 45.5 53.4
Total operating revenues 2,090.5 2,095.6 2,076.7 2,079.0 2,155.1 2,090.5 2,155.1
Operating Earnings
Retirement 137.8 108.2 145.4 71.1 123.9 137.8 123.9
Annuities 54.3 6.3 32.6 26.9 36.4 54.3 36.4
Total Retirement Solutions 192.1 114.5 178.0 98.0 160.3 192.1 160.3
Investment Management 30.1 31.2 39.1 31.2 33.0 30.1 33.0
Individual Life 50.8 54.6 53.2 33.4 55.0 50.8 55.0
Employee Benefits 12.4 28.6 36.1 29.1 15.6 12.4 15.6
Total Insurance Solutions 63.2 83.2 89.3 62.5 70.6 63.2 70.6
Ongoing Business 285.4 228.9 306.4 191.7 263.9 285.4 263.9
Corporate(50.1)(43.6)(57.6)(32.7)(48.4)(50.1)(48.4)
Total Closed Blocks 21.4 23.8 21.8 39.8 24.3 21.4 24.3
Total operating earnings before income taxes 256.7 209.1 270.6 198.8 239.8 256.7 239.8
Closed Block Variable Annuity(477.1)(167.3) 0.8 381.9(907.7)(477.1)(907.7)
Net realized investment gains (losses) and realized charges and adjustments 41.8 54.7 207.9 132.6 60.4 41.8 60.4
Net guaranteed benefit hedging gains (losses) and related charges and adjustments 3.1(16.7) 20.6(44.1) 137.3 3.1 137.3
Other non-operating*(38.8)(187.9)(126.0) 183.9(42.7)(38.8)(42.7)
Total adjustments(471.0)(317.2) 103.3 654.3(752.7)(471.0)(752.7)
Income (loss) before income taxes(214.3)(108.1) 373.9 853.1(512.9)(214.3)(512.9)
Less: Income tax expense (benefit) 11.2(1.2)(12.9) 1.0 7.9 11.2 7.9
Net income (loss)(225.5)(106.9) 386.8 852.1(520.8)(225.5)(520.8)
Net income (loss) attributable to noncontrolling interest(13.5)(84.2) 20.3 217.7(15.6)(13.5)(15.6)
Net income (loss) available to ING U.S. Inc.‘s common shareholder(212.0)(22.7) 366.5 634.4(505.2)(212.0)(505.2)
* Other non-operating above includes:
Income (loss) related to businesses exited through reinsurance or divestment; income (loss) attributable to non-
controlling interests; immediate recognition of actuarial gains (losses) related to pension and other post-employment
benefit obligations and any impact of plan amendments; and other items, including restructuring expenses
(severance, lease write-offs, etc.), integration expenses related to the Company_s acquisition of CitiStreet and certain
third-party expenses related to the anticipated divestment of the Company by ING Group
ING U.S. Page 14 of 69
ING U.S.
Adjusted Operating Earnings by Segment
(in millions USD) Three Months Ended Year-to-Date
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Operating Earnings
Retirement 137.8 108.2 145.4 71.1 123.9 137.8 123.9
Annuities 54.3 6.3 32.6 26.9 36.4 54.3 36.4
Total Retirement Solutions 192.1 114.5 178.0 98.0 160.3 192.1 160.3
Investment Management 30.1 31.2 39.1 31.2 33.0 30.1 33.0
Individual Life 50.8 54.6 53.2 33.4 55.0 50.8 55.0
Employee Benefits 12.4 28.6 36.1 29.1 15.6 12.4 15.6
Total Insurance Solutions 63.2 83.2 89.3 62.5 70.6 63.2 70.6
Ongoing Business 285.4 228.9 306.4 191.7 263.9 285.4 263.9
Corporate(50.1)(43.6)(57.6)(32.7)(48.4)(50.1)(48.4)
Total Closed Blocks 21.4 23.8 21.8 39.8 24.3 21.4 24.3
Total operating earnings before income taxe 256.7 209.1 270.6 198.8 239.8 256.7 239.8
Adjustments to operating earning
Retirement 3.0(8.9) 14.9(55.1) 23.6 3.0 23.6
Annuities 7.0(44.4)(13.2)(27.1)(12.7) 7.0(12.7)
Total Retirement Solutions 10.0(53.3) 1.7(82.2) 10.9 10.0 10.9
Investment Management ——2.2 — -
Individual Life(2.7) 4.6 8.6(3.3) 8.3(2.7) 8.3
Employee Benefits — 0.6(3.8) 3.3—3.3
Total Insurance Solutions(2.7) 4.6 9.2(7.1) 11.6(2.7) 11.6
Ongoing Business 7.3(48.7) 10.9(87.1) 22.5 7.3 22.5
Corporate(41.9)(39.2)(39.8)(32.1)(16.7)(41.9)(16.7)
Total Closed Blocks — -(10.1) 4.3—4.3
Total adjustments to operating earning(34.6)(87.9)(28.9)(129.3) 10.1(34.6) 10.1
Adjusted Operating Earnings
Retirement 134.8 117.1 130.5 126.2 100.3 134.8 100.3
Annuities 47.3 50.7 45.8 54.0 49.1 47.3 49.1
Total Retirement Solutions 182.1 167.8 176.3 180.2 149.4 182.1 149.4
Investment Management 30.1 31.2 39.1 29.0 33.0 30.1 33.0
Individual Life 53.5 50.0 44.6 36.7 46.7 53.5 46.7
Employee Benefits 12.4 28.6 35.5 32.9 12.3 12.4 12.3
Total Insurance Solutions 65.9 78.6 80.1 69.6 59.0 65.9 59.0
Ongoing Business 278.1 277.6 295.5 278.8 241.4 278.1 241.4
Corporate(8.2)(4.4)(17.8)(0.6)(31.7)(8.2)(31.7)
Total Closed Blocks 21.4 23.8 21.8 49.9 20.0 21.4 20.0
Total adjusted operating earnings before interest and income taxe 291.3 297.0 299.5 328.1 229.7 291.3 229.7
ING U.S. Page 15 of 69
ING U.S.
DAC/VOBA Segment Trends
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Retirement
Balance as of beginning-of-period 712.4 667.6 849.5 949.6 987.2 712.4 987.2
Deferrals of commissions and expenses 28.3 34.6 32.8 30.1 30.5 28.3 30.5
Amortization: —
Operating(39.8)(35.7)(43.1)(44.3)(37.6)(39.8)(37.6)
Non-Operating(2.5)(7.6)(7.3)(33.3)(36.9)(2.5)(36.9)
Unlocking: —
Operating 3.0(8.9) 15.9(5.1) 3.8 3.0 3.8
Non-Operating 16.1 19.0 24.2 16.1 20.6 16.1 20.6
Change in unrealized gains/losses 125.6 43.4(204.4)(63.7)(18.0) 125.6(18.0)
Balance as of End-of-Period 843.1 712.4 667.6 849.5 949.6 843.1 949.6
Annuities
Balance as of beginning-of-period 260.7 295.8 418.5 496.9 606.6 260.7 606.6
Deferrals of commissions and expenses 17.4 22.2 24.1 27.0 23.7 17.4 23.7
Amortization: —
Operating(44.8)(43.9)(31.7)(42.2)(21.4)(44.8)(21.4)
Non-Operating(9.7) 4.5(31.4)(20.4)(7.7)(9.7)(7.7)
Unlocking: —
Operating 7.0(44.4)(12.9)(8.6)(20.3) 7.0(20.3)
Non-Operating 4.9 1.8 6.7 4.3(1.4) 4.9(1.4)
Change in unrealized gains/losses 56.9 24.7(77.5)(38.6)(82.5) 56.9(82.5)
Balance as of End-of-Period 292.4 260.7 295.8 418.5 496.9 292.4 496.9
Individual Life
Balance as of beginning-of-period 2,127.6 2,067.4 2,088.1 2,240.7 2,067.8 2,127.6 2,067.8
Deferrals of commissions and expenses 52.8 69.6 81.4 98.5 95.5 52.8 95.5
Amortization: —
Operating(44.9)(57.2)(60.2)(47.4)(47.6)(44.9)(47.6)
Non-Operating(3.5)(0.6)(65.0)(11.4)(2.2)(3.5)(2.2)
Unlocking: —
Operating 3.0 9.8 43.5(0.3)(3.0) 3.0(3.0)
Non-Operating(0.6)(0.3) 30.3 1.9(1.6)(0.6)(1.6)
Change in unrealized gains/losses 112.8 38.8(50.6)(193.9) 131.8 112.8 131.8
Balance as of End-of-Period 2,247.2 2,127.6 2,067.4 2,088.1 2,240.7 2,247.2 2,240.7
Other (1)
Balance as of beginning-of-period 102.6 100.6 102.4 106.4 104.3 102.6 104.3
Deferrals of commissions and expenses 5.5 5.3 5.2 6.0 5.2 5.5 5.2
Amortization: —
Operating(3.3)(3.4)(5.8)(8.7)(2.7)(3.3)(2.7)
Non-Operating — — — -
Unlocking: —
Operating — — — -
Non-Operating — — — -
Change in unrealized gains/losses(0.7) -(1.2)(1.3)(0.4)(0.7)(0.4)
Balance as of End-of-Period 104.1 102.6 100.6 102.4 106.4 104.1 106.4
Closed Block Variable Annuity
Balance as of beginning-of-period 453.0 492.3 479.8 575.8 586.4 453.0 586.4
Deferrals of commissions and expenses 3.9 4.0 3.3 4.2 4.3 3.9 4.3
Amortization: —
Operating — — — -
Non-Operating(14.8)(14.8)(15.4)(14.7)(15.2)(14.8)(15.2)
Unlocking: —
Operating — — — -
Non-Operating(0.2) 0.2 2.9(1.6) 0.2(0.2) 0.2
Change in unrealized gains/losses 90.9(28.7) 21.7(83.8)—90.9 -
Balance as of End-of-Period 532.8 453.0 492.3 479.8 575.8 532.8 575.8
Total US
Balance as of beginning-of-period 3,656.3 3,623.8 3,938.2 4,369.5 4,352.3 3,656.3 4,352.3
Deferrals of commissions and expenses 107.9 135.8 146.8 165.8 159.2 107.9 159.2
Amortization: —
Operating(132.8)(140.2)(140.8)(142.6)(109.3)(132.8)(109.3)
Non-Operating(30.5)(18.5)(119.1)(79.8)(62.0)(30.5)(62.0)
Unlocking: —
Operating 13.0(43.5) 46.5(14.0)(19.5) 13.0(19.5)
Non-Operating 20.2 20.7 64.1 20.7 17.8 20.2 17.8
Change in unrealized gains/losses 385.5 78.2(311.9)(381.3) 31.0 385.5 31.0
Balance as of End-of-Period 4,019.6 3,656.3 3,623.8 3,938.2 4,369.5 4,019.6 4,369.5
(1) Employee Benefits, Asset Management, Other Closed Blocks
ING U.S. Page 16 of 69
ING U.S.
Consolidated Capital Structure
Balances as of
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Financial Debt
Commercial paper 4.0 192.0 299.2 589.6 680.0
Senior bonds 2,499.0 1,500.3 1,500.1 650.3 650.0
Loans from ING Verzekeringen N.V. 500.0 500.0 500.0 500.0 500.0
Loans from consolidated subs 274.4 261.1 164.0 189.0 2,208.3
Bank revolver — 0.0 500.0 -
Bank term loan 425.0 1,350.0 1,425.0 1,500.0 -
Other debt 4.9 4.9 4.9 4.9 4.9
Total Debt 3,707.3 3,808.3 3,893.2 3,933.8 4,043.2
Equity
Total common equity 9,938.3 10,164.2 10,209.0 9,820.3 9,242.9
Accumulated other comprehensive income (AOCI) 3,452.8 3,710.7 3,701.5 3,021.5 2,587.0
Total ING U.S. Inc. Shareholder’s Equity 13,391.1 13,874.9 13,910.5 12,841.8 11,829.9
Total Equity (Excluding AOCI) 9,938.3 10,164.2 10,209.0 9,820.3 9,242.9
Capital
Total Capitalization 17,098.4 17,683.2 17,803.7 16,775.6 15,873.1
Total Capitalization (Excluding AOCI) 13,645.6 13,972.5 14,102.2 13,754.1 13,286.1
Debt to Capital
Debt to Capital 21.7% 21.5% 21.9% 23.4% 25.5%
Debt to Capital (Excluding AOCI) 27.2% 27.3% 27.6% 28.6% 30.4%
ING U.S. Page 17 of 69
ING U.S.
Consolidated Assets Under Management/Assets Under Administration
(in millions USD)
Total
Institutional/ AUM—Assets Under AUA—Assets Under
Balances as of March 31, 2013 General Account Separate Account Mutual Funds Management Administration Total AUM + AUA
Retirement (1) 27,387.8 52,516.8 15,697.7 95,602.3 223,034.6 318,636.9 Annuities (2) 22,772.4 780.1 2,675.5 26,228.0 26,228.0
Retirement Solutions 50,160.2 53,296.9 18,373.2 121,830.3 223,034.6 344,864.9
Investment Management 79,965.9 42,394.4 65,265.7 187,626.0 55,732.5 243,358.5
Insurance
Individual Life (3) 13,089.6 2,509.2—15,598.8—15,598.8 Employee Benefits 1,739.1 14.7 1,753.8 1,753.8
Insurance Solutions 14,828.7 2,523.9—17,352.6—17,352.6 Eliminations (70,562.2) (38,594.7) (8,527.0) (117,683.9) (55,732.5) (173,416.4) Total Ongoing Business 74,392.6 59,620.5 75,111.9 209,125.0 223,034.6 432,159.6
US Closed Block Variable Annuity 1,272.1 43,274.5—44,546.6—44,546.6 Closed Block Institutional Spread Products 3,945.7 — 3,945.7—3,945.7 Closed Block Other 355.5 203.3—558.8—558.8
Total AUM and AUA 79,965.9 103,098.3 75,111.9 258,176.1 223,034.6 481,210.7
ING U.S. Page 18 of 69
ING U.S. Page 19 of 69
ING U.S.
Retirement Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Sources of operating earnings before income taxes:
Investment spread and other investment income 183.3 169.1 175.1 145.7 183.6 183.3 183.6
Fee based margin 199.0 198.0 196.3 190.0 191.7 199.0 191.7
Net underwriting gain (loss) and other revenue(6.0)(10.5)(1.5)(5.7)(6.3)(6.0)(6.3)
Administrative expenses(170.0)(170.8)(167.3)(177.8)(179.6)(170.0)(179.6)
Trail commissions(29.9)(31.1)(27.9)(28.0)(29.1)(29.9)(29.1)
DAC/VOBA and other intangibles amortization, excluding
unlocking(41.6)(37.6)(45.2)(48.1)(40.2)(41.6)(40.2)
DAC/VOBA and other intangibles unlocking 3.0(8.9) 15.9(5.0) 3.8 3.0 3.8
Operating earnings before income taxes 137.8 108.2 145.4 71.1 123.9 137.8 123.9
Gross investment income
Fixed income 356.3 370.7 360.3 365.1 348.0 356.3 348.0
Limited partnership income 2.3(2.0)(0.3) 7.1(1.4) 2.3(1.4)
Prepayment fee income 10.2 1.1 6.0 5.7 4.9 10.2 4.9
Total gross investment income 368.8 369.8 366.0 377.9 351.5 368.8 351.5
Investment expenses(14.2)(14.7)(13.2)(13.2)(13.8)(14.2)(13.8)
Credited interest(199.9)(204.7)(201.1)(197.4)(197.0)(199.9)(197.0)
Net margin 154.7 150.5 151.7 167.3 140.7 154.7 140.7
Other investment income* 28.6 18.5 23.3(21.6) 43.0 28.6 43.0
Investment spread and other investment income 183.3 169.1 175.1 145.7 183.6 183.3 183.6
Fee based margin
Fee based margin—excluding Recordkeeping 139.2 135.6 133.2 130.0 132.0 139.2 132.0
Fee based margin—Recordkeeping 59.8 62.2 63.1 59.9 59.9 59.8 59.9
Fee based margin 199.0 198.0 196.3 190.0 191.7 199.0 191.7
Recordkeeping
Revenue 59.8 62.2 63.1 59.9 59.9 59.8 59.9
Expenses(53.1)(56.0)(56.7)(57.5)(57.7)(53.1)(57.7)
Operating earnings—Recordkeeping 6.7 6.2 6.4 2.4 2.2 6.7 2.2
* Includes investment income on assets backing surplus that has been allocated from the corporate segment and income from policy loans
ING U.S. Page 20 of 69
ING U.S.
Retirement Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Operating revenues
Net investment income and net realized gains (losses) 388.9 380.1 384.5 347.2 388.1 388.9 388.1
Fee income 183.8 182.7 181.6 173.6 177.1 183.8 177.1
Premiums 0.5 0.9 0.5 3.0 0.5 0.5 0.5
Other revenue 10.0 6.8 15.5 15.1 14.7 10.0 14.7
Total operating revenues 583.2 570.5 582.1 538.9 580.4 583.2 580.4
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(204.6)(212.9)(210.5)(210.4)(208.4)(204.6)(208.4)
Operating expenses(204.0)(204.6)(198.8)(207.6)(213.9)(204.0)(213.9)
Net amortization of DAC/VOBA(36.8)(44.7)(27.1)(49.4)(33.8)(36.8)(33.8)
Interest expense -(0.1)(0.3)(0.4)(0.4) -(0.4)
Total operating benefits and expenses(445.4)(462.3)(436.7)(467.8)(456.5)(445.4)(456.5)
Operating earnings before income taxes 137.8 108.2 145.4 71.1 123.9 137.8 123.9
ING U.S. Page 21 of 69
ING U.S.
Retirement AUM/AUA
Balances as of
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Assets under management by product group
Corporate market 35,441.2 33,265.9 32,609.4 31,143.9 31,680.7
Tax exempt market 49,269.4 46,986.1 46,226.6 44,705.9 45,304.0
Total full service plans 84,710.6 80,252.0 78,836.0 75,849.8 76,984.7
Stable value 8,279.7 7,792.1 6,473.1 6,137.5 5,838.4
Individual market 2,612.0 2,427.1 2,359.4 2,227.1 2,256.7
Total AUM 95,602.3 90,471.2 87,668.5 84,214.4 85,079.8
Recordkeeping/Stable Value AUA 223,034.6 213,675.5 215,513.6 209,881.4 215,848.5
Total AUM/AUA 318,636.9 304,146.7 303,182.1 294,095.8 300,928.3
Assets under management by fund group
General account 27,387.8 27,222.6 26,634.6 26,109.1 25,784.5
Guaranteed separate account 8,287.8 8,273.9 7,315.8 7,030.7 6,915.1
Non-guaranteed separate account 44,229.0 41,151.5 40,589.4 38,683.8 40,138.0
Mutual Funds/Institutional Funds 15,697.7 13,823.2 13,128.7 12,390.8 12,242.2
Total AUM 95,602.3 90,471.2 87,668.5 84,214.4 85,079.8
Recordkeeping/Stable Value AUA 223,034.6 213,675.5 215,513.6 209,881.4 215,848.5
Total AUM and AUA 318,636.9 304,146.7 303,182.1 294,095.8 300,928.3
ING U.S. Page 22 of 69
ING U.S.
Retirement AUM Rollforward
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Full service—Corporate market
Assets under management, beginning of period 33,265.9 32,609.4 31,143.9 31,680.7 29,134.4 33,265.9 29,134.4
Transfer/Single deposits 689.7 739.7 529.3 519.8 487.3 689.7 487.3
Recurring deposits 1,021.7 781.0 840.9 839.7 1,002.7 1,021.7 1,002.7
Deposits 1,711.4 1,520.7 1,370.2 1,359.5 1,490.0 1,711.4 1,490.0
Surrenders, benefits, and product charges(1,332.5)(1,319.1)(1,262.2)(1,079.1)(1,339.4)(1,332.5)(1,339.4)
Net Flows 378.9 201.6 108.0 280.4 150.6 378.9 150.6
Interest credited and investment performance 1,796.4 455.0 1,357.4(817.2) 2,395.6 1,796.4 2,395.6
Transfers between products — — — -
Assets under management, end of period 35,441.2 33,265.9 32,609.4 31,143.9 31,680.7 35,441.2 31,680.7
Full service—Tax exempt market
Assets under management, beginning of period 46,986.1 46,226.6 44,705.9 45,304.0 42,691.3 46,986.1 42,691.3
Transfer/Single deposits 642.0 410.5 388.3 278.7 280.7 642.0 280.7
Recurring deposits 772.9 740.5 686.5 770.0 778.4 772.9 778.4
Deposits 1,414.9 1,151.0 1,074.8 1,048.7 1,059.1 1,414.9 1,059.1
Surrenders, benefits, and product charges(962.7)(903.3)(990.7)(1,006.7)(869.7)(962.7)(869.7)
Net Flows 452.2 247.7 84.1 42.0 189.4 452.2 189.4
Interest credited and investment performance 1,831.1 511.9 1,436.6(640.1) 2,423.3 1,831.1 2,423.3
Transfers between products — — — -
Assets under management, end of period 49,269.4 46,986.1 46,226.6 44,705.9 45,304.0 49,269.4 45,304.0
Stable value (including MCA) (1)(2)
Assets under management, beginning of period 7,792.1 6,473.1 6,137.5 5,838.4 5,560.9 7,792.1 5,560.9
Transfer/Single deposits 518.7 1,320.1 268.6 354.2 297.2 518.7 297.2
Recurring deposits 71.3 61.8 41.0 94.4 160.7 71.3 160.7
Deposits 590.0 1,381.9 309.6 448.6 457.9 590.0 457.9
Surrenders, benefits, and product charges(108.9)(97.1)(69.1)(210.1)(250.0)(108.9)(250.0)
Net Flows 481.1 1,284.8 240.5 238.5 207.9 481.1 207.9
Interest credited and investment performance 6.6 34.3 95.2 60.6 69.6 6.6 69.6
Transfers between products — — — -
Assets under management, end of period 8,279.7 7,792.1 6,473.1 6,137.5 5,838.4 8,279.7 5,838.4
Individual market
Assets under management, beginning of period 2,427.1 2,359.3 2,227.1 2,256.7 2,091.1 2,427.1 2,091.1
Transfer/Single deposits 14.2 72.4 126.5 95.5 134.8 14.2 134.8
Recurring deposits 0.4 0.1 0.1 0.3 0.2 0.4 0.2
Deposits 14.6 72.5 126.6 95.8 135.0 14.6 135.0
Surrenders, benefits, and product charges 92.6(25.0)(51.3)(100.0)(63.4) 92.6(63.4)
Net Flows 107.2 47.5 75.3(4.2) 71.6 107.2 71.6
Interest credited and investment performance 77.6 20.3 56.9(25.5) 93.9 77.6 93.9
Transfers between products — — — -
Assets under management, end of period 2,612.0 2,427.1 2,359.3 2,227.1 2,256.7 2,612.0 2,256.7
Total AUM (3)
Assets under management, beginning of period 90,471.2 87,668.5 84,214.4 85,079.8 79,477.7 90,471.2 79,477.7
Transfer/Single deposits 1,864.6 2,542.6 1,312.7 1,248.1 1,200.1 1,864.6 1,200.1
Recurring deposits 1,866.3 1,583.4 1,568.5 1,704.4 1,942.0 1,866.3 1,942.0
Deposits 3,730.9 4,126.0 2,881.2 2,952.5 3,142.1 3,730.9 3,142.1
Surrenders, benefits, and product charges(2,311.5)(2,344.6)(2,373.3)(2,395.8)(2,522.5)(2,311.5)(2,522.5)
Net Flows 1,419.4 1,781.4 507.9 556.7 619.6 1,419.4 619.6
Interest credited and investment performance 3,711.7 1,021.5 2,946.1(1,422.2) 4,982.5 3,711.7 4,982.5
Transfers between products — — — -
Assets under management, end of period 95,602.3 90,471.2 87,668.5 84,214.4 85,079.8 95,602.3 85,079.8
(1) Where ING U.S. is the Investment Manager
(2) Includes IIM Managed SV MCA and Stabilizer Investment Only (3) Excludes IPS and ILIAC Recordkeeping and Non IIM Managed MCA
ING U.S. Page 23 of 69
ING U.S. Page 24 of 69
ING U.S.
Annuities Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Sources of operating earnings before income taxes:
Investment spread and other investment income 113.4 118.8 106.6 102.9 110.5 113.4 110.5
Fee based margin 10.5 10.1 9.3 8.4 8.6 10.5 8.6
Net underwriting gain (loss) and other revenue 7.2 5.6 2.2 3.9 3.1 7.2 3.1
Administrative expenses(21.9)(21.7)(23.5)(22.3)(22.6)(21.9)(22.6)
Trail commissions(8.8)(8.4)(8.2)(8.0)(8.3)(8.8)(8.3)
DAC/VOBA and other intangibles amortization, excluding
unlocking(53.1)(53.7)(40.9)(49.4)(34.6)(53.1)(34.6)
DAC/VOBA and other intangibles unlocking 7.0(44.4)(12.9)(8.6)(20.3) 7.0(20.3)
Operating earnings before income taxes 54.3 6.3 32.6 26.9 36.4 54.3 36.4
Gross investment income
Fixed income 267.6 278.5 273.4 295.1 297.1 267.6 297.1
Limited partnership income 1.6 0.7 0.7 7.1 0.7 1.6 0.7
Prepayment fee income 5.8 10.1 5.3 7.8 5.9 5.8 5.9
Total gross investment income 275.0 289.3 279.4 310.0 303.7 275.0 303.7
Investment expenses(10.9)(11.4)(11.2)(9.6)(12.0)(10.9)(12.0)
Credited interest(173.7)(179.7)(184.7)(201.8)(216.9)(173.7)(216.9)
Net margin 90.4 98.2 83.5 98.6 74.8 90.4 74.8
Other investment income* 22.9 20.6 23.2 4.2 35.7 22.9 35.7
Investment spread and other investment income 113.4 118.8 106.6 102.9 110.5 113.4 110.5
* Includes investment income on assets backing surplus that has been allocated from the corporate segment, as well as income from policy loans.
ING U.S. Page 25 of 69
ING U.S. Page 26 of 69
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Operating revenues
Net investment income and net realized gains (losses) 287.1 298.4 291.7 304.2 329.0 287.1 329.0
Fee income 9.9 10.4 9.5 8.2 7.4 9.9 7.4
Premiums 7.8 6.3 6.1 11.7 11.8 7.8 11.8
Other revenue 2.8 2.3 2.4 4.6 3.0 2.8 3.0
Total operating revenues 307.6 317.4 309.7 328.7 351.2 307.6 351.2
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(184.4)(192.3)(200.3)(219.6)(241.9)(184.4)(241.9)
Operating expenses(31.0)(30.3)(32.1)(31.1)(31.2)(31.0)(31.2)
Net amortization of DAC/VOBA(37.9)(88.4)(44.6)(50.9)(41.6)(37.9)(41.6)
Interest expense -(0.1)(0.1)(0.2)(0.1) -(0.1)
Total operating benefits and expenses(253.3)(311.1)(277.1)(301.8)(314.8)(253.3)(314.8)
Operating earnings before income taxes 54.3 6.3 32.6 26.9 36.4 54.3 36.4
ING U.S.
Annuities Operating Earnings
ING U.S. Annuities AUM
Balances as of
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Assets Under Management
Fixed single year 4,204.7 4,273.7 4,367.6 4,435.1 4,485.7
Fixed multi-year 3,853.0 3,949.3 4,133.7 4,574.0 5,665.5
Indexed 12,255.3 12,209.2 12,167.0 12,122.8 12,111.8
SPIA & Payout 2,794.8 2,806.6 2,851.1 2,847.5 2,850.3
Other annuities 444.7 428.7 440.8 425.1 452.4
Mutual funds 2,675.5 2,433.6 2,291.7 2,092.2 2,026.9
Total AUM 26,228.0 26,101.1 26,251.9 26,496.7 27,592.6
Assets Under Management
General account 22,772.4 22,915.8 23,185.7 23,656.1 24,770.2
Separate account 780.1 751.7 774.5 748.4 795.5
Mutual funds 2,675.5 2,433.6 2,291.7 2,092.2 2,026.9
Total AUM 26,228.0 26,101.1 26,251.9 26,496.7 27,592.6
ING U.S. Page 27 of 69
ING U.S.
Annuities AUM Rollforward
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Annual Reset Annuities/Multi-Year Guaranteed Annuities
Assets Under Management, beginning of period 8,222.9 8,501.3 9,009.1 10,151.2 10,599.1 8,222.9 10,599.1
Deposits 12.2 17.3 10.1 16.2 18.0 12.2 18.0
Surrenders, benefits, and product charges(254.0)(376.9)(602.9)(1,256.1)(576.6)(254.0)(576.6)
Net cash flow(241.8)(359.6)(592.8)(1,239.9)(558.6)(241.8)(558.6)
Interest credited and investment performance 76.6 81.2 85.0 97.8 110.7 76.6 110.7
Assets Under Management, end of period 8,057.7 8,222.9 8,501.3 9,009.1 10,151.2 8,057.7 10,151.2
Fixed Indexed Annuities
Assets Under Management, beginning of period 12,209.2 12,167.0 12,122.8 12,111.8 12,080.9 12,209.2 12,080.9
Deposits 245.9 285.0 296.7 313.1 295.6 245.9 295.6
Surrenders, benefits, and product charges(288.9)(341.2)(355.2)(371.6)(324.0)(288.9)(324.0)
Net cash flow(43.1)(56.1)(58.5)(58.5)(28.4)(43.1)(28.4)
Interest credited and investment performance 89.1 98.4 102.7 69.5 59.3 89.1 59.3
Assets Under Management, end of period 12,255.3 12,209.2 12,167.0 12,122.8 12,111.8 12,255.3 12,111.8
SPIA & Payout
Assets Under Management, beginning of period 2,806.6 2,851.0 2,847.5 2,850.3 2,831.0 2,806.6 2,831.0
Deposits 39.8 38.7 57.4 85.1 61.8 39.8 61.8
Surrenders, benefits, and product charges(101.0)(112.7)(109.5)(109.4)(109.3)(101.0)(109.3)
Net cash flow(61.3)(74.0)(52.1)(24.3)(47.5)(61.3)(47.5)
Interest credited and investment performance 49.5 29.6 55.6 21.5 66.8 49.5 66.8
Assets Under Management, end of period 2,794.8 2,806.6 2,851.0 2,847.5 2,850.3 2,794.8 2,850.3
Mutual Fund Custodial
Assets Under Management, beginning of period 2,433.5 2,291.7 2,092.2 2,026.9 1,761.3 2,433.5 1,761.3
Deposits 255.4 213.6 202.8 217.3 218.8 255.4 218.8
Surrenders, benefits, and product charges(115.3)(106.9)(97.1)(102.7)(84.9)(115.3)(84.9)
Net cash flow 140.1 106.7 105.7 114.7 133.9 140.1 133.9
Interest credited and investment performance 101.8 35.1 93.7(49.4) 131.7 101.8 131.7
Assets Under Management, end of period 2,675.5 2,433.5 2,291.7 2,092.2 2,026.9 2,675.4 2,026.9
Other Annuities
Assets Under Management, beginning of period 428.7 440.8 425.1 452.4 417.8 428.7 417.8
Deposits 1.6 1.2 1.0 2.1 1.9 1.6 1.9
Surrenders, benefits, and product charges(15.8)(14.7)(10.7)(11.3)(12.9)(15.8)(12.9)
Net cash flow(14.3)(13.5)(9.7)(9.2)(11.0)(14.3)(11.0)
Interest credited and investment performance 30.3 1.4 25.4(18.1) 45.6 30.3 45.6
Assets Under Management, end of period 444.7 428.7 440.8 425.1 452.4 444.7 452.4
Annuities—Total
Assets Under Management, beginning of period 26,101.0 26,251.8 26,496.6 27,592.6 27,690.2 26,101.0 27,690.2
Deposits 554.8 555.7 567.9 633.9 596.1 554.8 596.1
Surrenders, benefits, and product charges(775.1)(951.8)(1,175.0)(1,850.8)(1,107.7)(775.1)(1,107.7)
Net cash flow(220.3)(396.1)(607.1)(1,216.9)(511.6)(220.3)(511.6)
Interest credited and investment performance 347.3 245.2 362.2 120.9 414.0 347.3 414.0
Assets Under Management, end of period 26,228.0 26,101.1 26,251.9 26,496.7 27,592.6 26,228.0 27,592.6
ING U.S. Page 28 of 69
ING U.S. Page 29 of 69
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Sources of operating earnings before income
taxes:
Investment capital and other investment income 2.6 5.3 16.7 12.7 5.2 2.6 5.2
Fee based margin 129.3 137.2 125.5 117.5 125.4 129.3 125.4
Administrative expenses(101.8)(111.3)(103.1)(99.0)(97.6)(101.8)(97.6)
Operating earnings before income taxes 30.1 31.2 39.1 31.2 33.0 30.1 33.0
ING U.S.
Page 30 of 69
ING U.S. Page 31 of 69
ING U.S.
Investment Management Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Operating revenues
Net investment income and net realized gains (losses) 2.8 5.6 17.3 13.3 5.4 2.8 5.4
Fee income 121.7 122.6 120.1 114.1 117.9 121.7 117.9
Other revenue 7.4 14.3 4.8 2.8 7.3 7.4 7.3
Total operating revenues 131.9 142.5 142.2 130.2 130.6 131.9 130.6
Operating benefits and expenses
Operating expenses(101.8)(111.3)(103.1)(99.0)(97.6)(101.8)(97.6)
Total operating benefits and expenses(101.8)(111.3)(103.1)(99.0)(97.6)(101.8)(97.6)
Operating earnings before income taxes 30.1 31.2 39.1 31.2 33.0 30.1 33.0
Page 31 of 69
ING U.S.
Investment Management Key Metrics
Balances as of Balances as of
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Client Assets by Source:
External clients
Investment Management sourced 58,002.1 54,061.9 50,761.4 48,879.7 49,754.9 58,002.1 49,754.9
Affiliate sourced 49,658.0 47,284.6 46,376.8 42,563.9 44,050.0 49,658.0 44,050.0
Subtotal external clients 107,660.1 101,346.5 97,138.2 91,443.6 93,804.9 107,660.1 93,804.9
General Account (1) 79,965.9 80,404.8 80,082.1 80,079.4 77,121.7 79,965.9 77,121.7
Total Client Assets (AUM) 187,626.0 181,751.3 177,220.3 171,523.0 170,926.6 187,626.0 170,926.6
Administration Only Assets (AUA) 55,732.5 54,695.5 54,723.3 56,024.7 58,136.6 55,732.5 58,136.6
Total AUM and AUA 243,358.5 236,446.8 231,943.6 227,547.7 229,063.2 243,358.5 229,063.2
Three Months Ended Year to Date
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Analysis of investment advisory and administrative
revenues, net, by source (2) :
External clients
Investment Management sourced 58.0 58.2 56.0 52.6 55.9 58.0 55.9
Affiliate sourced 22.1 21.9 21.4 19.3 19.5 22.1 19.5
Subtotal External Clients 80.1 80.1 77.4 71.9 75.4 80.1 75.4
General Account 36.8 37.0 37.6 36.7 37.1 36.8 37.1
Total investment advisory and administrative revenues, net,
from AUM 116.9 117.1 115.0 108.6 112.5 116.9 112.5
Administration Only Fees 4.8 5.5 5.1 5.5 5.4 4.8 5.4
Total investment advisory and administrative revenues, net,
by source (2) 121.7 122.6 120.1 114.1 117.9 121.7 117.9
Revenue Yield (bps) (2) (3) :
External clients
Investment Management sourced 41.5 44.6 45.1 43.0 44.6 41.5 44.6
Affiliate sourced 18.3 18.7 19.0 17.8 19.0 18.3 19.0
Revenue Yield on Institutional/retail 30.8 32.3 32.6 31.2 33.1 30.8 33.1
General Account 18.3 18.5 18.8 19.0 18.8 18.3 18.8
Revenue Yield on Client Assets (AUM) 25.3 26.1 26.3 25.7 26.5 25.3 26.5
Revenue Yield on Administration Only Assets (AUA) 3.5 4.1 3.7 3.9 3.7 3.5 3.7
Total Revenue Yield on AUM and AUA (bps) (2) (3) 20.3 21.0 20.9 20.2 20.6 20.3 20.6
General Account assets reported on a Statutory Book Value billing basis consistent with revenues earned.
Measures used by management to evaluate ongoing business performance, allowing for more appropriate comparisons with industry peers.
Revenue Yields calculated using average client assets for the period.
ING U.S. Page 32 of 69
ING U.S.
Investment Management Account Rollforward by Source
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
AUM Roll-forward By Source
Investment Management Sourced
Beginning AUM 54,061.9 50,761.4 48,879.7 49,754.8 49,391.6 54,061.9 49,391.6
Inflows
Inflows from take-overs 197.6 481.3 ——197.6 -
Inflows-other 4,598.0 5,536.4 2,732.9 2,093.4 2,515.7 4,598.0 2,515.7
Outflows(2,164.9)(2,255.5)(2,403.7)(2,059.0)(2,701.7)(2,164.9)(2,701.7)
Net Flows 2,630.7 3,762.2 329.2 34.4(186.0) 2,630.7(186.0)
Net Money Market Flows(3.2) 5.6 11.0(6.1)(34.9)(3.2)(34.9)
Change in Market Value 1,728.2 635.5 1,580.0(582.2) 2,857.5 1,728.2 2,857.5
Other (Including Acquisitions / Divestitures)(415.5)(1,102.8)(38.6)(321.2)(2,273.4)(415.5)(2,273.4)
Investment Management sourced AUM End of Period 58,002.1 54,061.9 50,761.4 48,879.7 49,754.8 58,002.1 49,754.8
Organic Growth (Long Term Net Flows / Beginning of Period AUM) 4.87% 7.41% 0.67% 0.07% -0.38% 4.87% -0.38%
Market Growth % 3.20% 1.25% 3.23% -1.17% 5.79% 3.20% 5.79%
Affiliate Sourced
Beginning AUM 47,284.6 46,376.8 42,563.9 44,050.0 37,851.8 47,284.6 37,851.8
Inflows
Inflows from take-overs 447.1 125.2 2,404.2—3,909.8 447.1 3,909.8
Inflows-other 1,579.6 2,311.6 1,081.7 1,269.4 1,240.8 1,579.6 1,240.8
Outflows(1,479.9)(1,716.5)(1,294.1)(2,120.6)(1,305.7)(1,479.9)(1,305.7)
Net Flows 546.8 720.3 2,191.8(851.2) 3,844.9 546.8 3,844.9
Net Money Market Flows(226.2) 20.4(75.7)(49.8)(229.7)(226.2)(229.7)
Change in Market Value 2,111.2 230.2 1,861.6(751.5) 2,589.7 2,111.2 2,589.7
Other (Including Acquisitions / Divestitures)(58.5)(63.0)(164.8) 166.3(6.6)(58.5)(6.6)
Affiliate sourced AUM End of Period 49,658.0 47,284.6 46,376.8 42,563.9 44,050.0 49,658.0 44,050.0
Organic Growth (Long Term Net Flows / Beginning of Period AUM) 1.16% 1.55% 5.15% -1.93% 10.16% 1.16% 10.16%
Market Growth % 4.46% 0.50% 4.37% -1.71% 6.84% 4.46% 6.84%
Other affiliate sourced net flows 1,040.4 1,365.7 2,645.3(396.8) 4,184.8 1,040.4 4,184.8
Variable annuity net flows(493.6)(645.4)(453.6)(454.3)(339.9)(493.6)(339.9)
Total affiliate sourced net flows 546.8 720.3 2,191.8(851.2) 3,844.9 546.8 3,844.9
Investment Management sourced net flows 2,630.7 3,762.2 329.2 34.4(186.0) 2,630.7(186.0)
Total net flows 3,177.5 4,482.5 2,521.0(816.8) 3,658.9 3,177.5 3,658.9
ING U.S. Page 33 of 69
ING U.S.
Investment Management Account Value by Asset Type
Balances as of
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
(in millions USD)
Institutional
Equity 14,644.1 13,769.5 12,161.7 11,491.2 11,662.4
Fixed Income 32,246.4 29,894.4 28,402.5 27,364.6 27,534.0
Real Estate — — -
Money Market 17.1 33.3 30.2 21.3 11.5
Total 46,907.6 43,697.2 40,594.4 38,877.1 39,207.9
Retail
Equity 36,199.9 33,315.3 33,044.2 29,858.1 31,752.7
Fixed Income 15,459.7 15,406.2 15,074.2 14,583.0 14,806.8
Real Estate 6,794.1 6,401.3 5,921.6 5,541.3 5,399.5
Money Market 2,298.7 2,526.5 2,503.8 2,584.1 2,637.9
Total 60,752.4 57,649.3 56,543.8 52,566.5 54,596.9
General Account
Equity 200.8 251.1 272.5 275.8 276.4
Fixed Income 76,548.7 75,957.9 77,147.8 75,877.5 75,092.2
Real Estate — — -
Money Market 3,216.4 4,195.8 2,661.9 3,926.0 1,753.1
Total 79,965.9 80,404.8 80,082.1 80,079.4 77,121.7
Combined Asset Type
Equity 51,044.9 47,335.9 45,478.4 41,625.1 43,691.6
Fixed Income 124,254.8 121,258.5 120,624.5 117,825.1 117,433.0
Real Estate 6,794.1 6,401.3 5,921.6 5,541.3 5,399.5
Money Market 5,532.2 6,755.6 5,195.9 6,531.4 4,402.5
Total 187,626.0 181,751.3 177,220.3 171,523.0 170,926.6
ING U.S. Page 34 of 69
ING U.S. Page 35 of 69
ING U.S.
Individual Life Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Sources of operating earnings before income
taxes:
Investment spread and other investment income 52.4 38.8 59.6 58.2 71.1 52.4 71.1
Fee based margin 4.8 4.7 4.9 4.9 5.0 4.8 5.0
Net underwriting gain (loss) and other revenue 115.9 146.4 130.5 99.5 119.0 115.9 119.0
Administrative expenses(67.0)(76.6)(76.6)(75.8)(78.0)(67.0)(78.0)
Trail commissions(7.7)(6.1)(8.4)(5.9)(10.1)(7.7)(10.1)
DAC/VOBA and other intangibles amortization,
excluding unlocking(44.9)(57.2)(60.2)(47.3)(47.6)(44.9)(47.6)
DAC/VOBA and other intangibles unlocking(2.7) 4.6 3.4(0.2)(4.4)(2.7)(4.4)
Operating earnings before income taxes 50.8 54.6 53.2 33.4 55.0 50.8 55.0
Gross Investment Income
Fixed income 203.2 202.2 222.0 225.1 221.3 203.2 221.3
Limited partnership income 1.5(1.2)(0.1) 4.1(1.6) 1.5(1.6)
Prepayment fee income 7.7 4.4 0.6 2.6 5.8 7.7 5.8
Total gross investment income 212.4 205.4 222.5 231.8 225.5 212.4 225.5
Investment expenses(5.4)(5.4)(5.8)(6.2)(5.9)(5.4)(5.9)
Credited interest(162.3)(166.1)(163.1)(160.5)(159.9)(162.3)(159.9)
Net margin 44.7 33.9 53.6 65.1 59.7 44.7 59.7
Other investment income* 7.6 4.8 5.8(6.9) 11.5 7.6 11.5
Investment spread and other investment income 52.4 38.8 59.6 58.2 71.1 52.4 71.1
Net underwriting gain (loss) and other revenue
Fee Revenue/Premiums 488.4 503.4 498.2 507.1 489.1 488.4 489.1
Net Mortality, including Reinsurance(301.8)(261.7)(272.1)(279.9)(277.4)(301.8)(277.4)
Reserve Change/Other(70.7)(95.5)(95.6)(127.7)(92.7)(70.7)(92.7)
Total net underwriting gain (loss) and other
revenue 115.9 146.4 130.5 99.5 119.0 115.9 119.0
* Includes investment income on assets backing surplus that has been allocated from the corporate segment, as well as income from policy loans.
ING U.S. Page 36 of 69
ING U.S.
Individual Life Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Operating revenues
Net investment income and net realized gains (losses) 216.9 213.1 229.7 224.0 247.0 216.9 247.0
Fee income 276.8 282.0 262.4 288.0 283.3 276.8 283.3
Premiums 185.8 191.7 180.0 186.7 179.4 185.8 179.4
Other revenue 7.6 7.4 6.4 10.5 2.3 7.6 2.3
Total operating revenues 687.1 694.2 678.5 709.2 712.0 687.1 712.0
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(501.6)(489.1)(509.5)(531.0)(504.8)(501.6)(504.8)
Operating expenses(90.9)(101.0)(97.1)(95.4)(97.0)(90.9)(97.0)
Net amortization of DAC/VOBA(42.9)(47.7)(16.6)(47.4)(50.6)(42.9)(50.6)
Interest expense(0.9)(1.8)(2.1)(2.0)(4.6)(0.9)(4.6)
Total operating benefits and expenses(636.3)(639.6)(625.3)(675.8)(657.0)(636.3)(657.0)
Operating earnings before income taxes 50.8 54.6 53.2 33.4 55.0 50.8 55.0
ING U.S.
Page 37 of 69
ING U.S.
Individual Life Key Metrics
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Sales by Product Line
Guaranteed 0.5 7.7 18.2 24.6 22.2 0.5 22.2
Accumulation 4.0 5.4 6.9 6.9 6.1 4.0 6.1
Indexed 6.8 11.8 8.1 8.5 5.1 6.8 5.1
Total Universal life 11.3 24.9 33.2 40.0 33.4 11.3 33.4
Variable life 2.7 1.6 2.3 1.2 1.2 2.7 1.2
Term 15.2 19.2 28.2 35.2 33.7 15.2 33.7
Whole life — — — -
Total sales by product line 29.2 45.7 63.7 76.4 68.3 29.2 68.3
Sales by Distribution
Independent life sales 19.1 32.1 49.4 57.4 53.6 19.1 53.6
Strategic distribution 5.4 8.5 7.2 9.8 6.6 5.4 6.6
Alternative and Specialty markets 4.7 5.1 7.3 9.2 8.1 4.7 8.1
Total sales by distribution 29.2 45.7 63.7 76.4 68.3 29.2 68.3
Gross premiums and deposits by product:
Interest sensitive 275.2 322.2 347.1 384.9 379.9 275.2 379.9
Non—interest sensitive 223.4 217.4 223.6 230.7 218.8 223.4 218.8
Total gross premiums and deposits 498.6 539.6 570.7 615.6 598.7 498.6 598.7
Applications
New business policy count (Paid) 16,137 20,471 29,072 36,339 34,054 16,137 34,054
End of Period:
In-force face amount (by product)
Universal life 79,969.4 80,685.4 80,456.2 80,134.4 79,764.9 79,969.4 79,764.9
Variable life 29,642.4 30,182.3 30,761.4 31,335.9 31,902.2 29,642.4 31,902.2
Term 496,919.3 494,759.5 491,263.4 482,668.4 467,605.7 496,919.3 467,605.7
Whole life 2,312.7 2,348.3 2,377.3 2,418.4 2,452.8 2,312.7 2,452.8
Total In-force Face 608,843.8 607,975.5 604,858.3 596,557.1 581,725.6 608,843.8 581,725.6
In-force policy count (in whole numbers)
Universal life 301,703 305,115 306,679 308,331 309,992 301,703 309,992
Variable life 70,364 71,589 72,783 73,939 75,229 70,364 75,229
Term 829,444 824,794 818,457 805,154 783,182 829,444 783,182
Whole life 148,767 151,346 153,960 156,645 158,978 148,767 158,978
Total Policy Counts 1,350,278 1,352,844 1,351,879 1,344,069 1,327,381 1,350,278 1,327,381
Assets under management
General account 13,089.6 12,910.0 12,828.0 12,709.0 12,569.2 13,089.6 12,569.2
Separate account 2,509.2 2,412.0 2,447.0 2,371.0 2,491.7 2,509.2 2,491.7
Total 15,598.8 15,322.5 15,274.9 15,080.3 15,060.9 15,598.8 15,060.9
ING U.S.
Page 38 of 69
ING U.S.
Page 39 of 69
ING U.S.
Employee Benefits Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Sources of operating earnings before income taxes:
Investment spread and other investment income 12.0 10.4 13.8 9.5 15.4 12.0 15.4
Net underwriting gain (loss) and other revenue 62.8 80.6 82.9 80.9 64.2 62.8 64.2
Administrative expenses(39.6)(41.6)(40.2)(39.8)(44.0)(39.6)(44.0)
Trail commissions(19.7)(17.7)(16.7)(17.6)(17.5)(19.7)(17.5)
DAC/VOBA and other intangibles amortization, excluding
unlocking(3.1)(3.1)(3.7)(3.9)(2.5)(3.1)(2.5)
Operating earnings before income taxes 12.4 28.6 36.1 29.1 15.6 12.4 15.6
Gross Investment Income
Fixed income 26.1 24.8 26.7 27.1 26.7 26.1 26.7
Limited partnership income 0.1(0.2)—0.6(0.2) 0.1(0.2)
Prepayment fee income 0.5 0.2 0.4 0.3 0.1 0.5 0.1
Total gross investment income 26.7 24.8 27.1 28.0 26.6 26.7 26.6
Investment expenses(0.9)(0.9)(0.9)(1.0)(1.0)(0.9)(1.0)
Credited interest(16.3)(16.6)(16.1)(16.2)(16.2)(16.3)(16.2)
Net margin 9.5 7.3 10.1 10.8 9.4 9.5 9.4
Other investment income* 2.5 3.1 3.7(1.4) 5.9 2.5 5.9
Investment spread and other investment income 12.0 10.4 13.8 9.5 15.4 12.0 15.4
Group life
Premiums 118.9 116.4 116.2 114.4 113.8 118.9 113.8
Benefits(101.5)(91.2)(89.5)(79.5)(94.3)(101.5)(94.3)
Other (1)(3.1)(3.4)(2.6)(2.7)(2.4)(3.1)(2.4)
Total 14.2 21.8 24.1 32.1 17.2 14.2 17.2
Loss Ratio (Interest adjusted) 85.4% 78.4% 77.0% 69.5% 82.8% 85.4% 82.8%
Group stop loss
Premiums 135.7 136.5 139.0 142.1 143.9 135.7 143.9
Benefits(105.4)(94.8)(97.7)(107.3)(109.7)(105.4)(109.7)
Other (1)(1.3)(0.7)(0.8)(0.8)(0.9)(1.3)(0.9)
Total 29.1 41.0 40.4 34.1 33.3 29.1 33.3
Loss Ratio 77.6% 69.5% 70.3% 75.5% 76.2% 77.6% 76.2%
Voluntary Benefits, Disability, and Other 19.4 17.6 18.4 14.7 13.8 19.4 13.8
Net underwriting gain (loss) and other revenue 62.8 80.6 82.9 80.9 64.2 62.8 64.2
(1) Other includes service fees, dividends, interest expenses, and other
miscellaneous expenses. The Loss Ratio calculation does not include
Other.
* Includes investment income on assets backing surplus that has been allocated from the corporate segment.
ING U.S.
Page 40 of 69
ING U.S.
Employee Benefits Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Operating revenues
Net investment income and net realized gains (losses) 28.4 27.0 30.0 25.6 31.7 28.4 31.7
Fee income 15.8 15.9 15.7 15.5 15.4 15.8 15.4
Premiums 274.9 271.6 265.8 272.3 268.4 274.9 268.4
Other revenue(1.0)(0.9)(1.0) 0.4(2.2)(1.0)(2.2)
Total operating revenues 318.1 313.6 310.5 313.8 313.3 318.1 313.3
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(242.6)(220.9)(214.0)(223.2)(234.0)(242.6)(234.0)
Operating expenses(60.0)(60.7)(56.7)(57.6)(61.2)(60.0)(61.2)
Net amortization of DAC/VOBA(3.1)(3.4)(3.7)(3.9)(2.5)(3.1)(2.5)
Total operating benefits and expenses(305.7)(285.0)(274.4)(284.7)(297.7)(305.7)(297.7)
Operating earnings before income taxes 12.4 28.6 36.1 29.1 15.6 12.4 15.6
ING U.S.
Page 41 of 69
ING U.S.
Employee Benefits Key Metrics
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Sales
Group life (Basic / Sup / AD&D) 44.0 2.0 13.0 7.6 25.3 44.0 25.3
Group stop loss 89.7 7.8 12.5 19.0 112.3 89.7 112.3
Disability 10.9 1.8 3.6 1.5 8.9 10.9 8.9
Association (Life, DI, PAI)—12.7 0.4 0.6 0.6—0.6
Other (PAI) 1.8—0.6 0.3 0.1 1.8 0.1
Total group products 146.4 24.3 30.1 29.0 147.2 146.4 147.2
Voluntary products 10.3 8.3 3.8 5.0 7.4 10.3 7.4
Total sales by product line 156.7 32.6 33.9 34.0 154.6 156.7 154.6
Total gross premiums and deposits 319.5 314.3 311.2 313.8 312.8 319.5 312.8
Total annualized in-force premiums 1,316.2 1,286.6 1,301.1 1,327.3 1,308.1 1,316.2 1,308.1
Assets under management (EOP)
General account 1,739.1 1,745.5 1,752.9 1,754.9 1,725.6 1,739.1 1,725.6
Separate account 14.7 14.0 14.3 13.2 14.2 14.7 14.2
Total 1,753.8 1,759.5 1,767.2 1,768.1 1,739.8 1,753.8 1,739.8
ING U.S.
Page 42 of 69
ING U.S.
Page 43 of 69
ING U.S.
Corporate Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Interest expense (including interest rate swap settlements)(41.9)(39.2)(39.8)(32.1)(16.7)(41.9)(16.7)
Closed Block Variable Annuity contingent capital LOC(12.8)(13.1)(13.1)(11.6)(18.9)(12.8)(18.9)
Amortization of intangibles(8.8)(8.8)(8.8)(8.7)(8.7)(8.8)(8.7)
Other 13.4 17.5 4.1 19.7(4.1) 13.4(4.1)
Operating earnings before income taxes(50.1)(43.6)(57.6)(32.7)(48.4)(50.1)(48.4)
ING U.S.
Page 44 of 69
ING U.S.
Page 45 of 69
ING U.S.
Closed Blocks Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Closed Block Institutional Spread Products 22.1 4.7 10.0 8.9 22.1 22.1 22.1
Closed Block Other(0.7) 19.1 11.8 30.9 2.2(0.7) 2.2
Operating earnings before income taxes 21.4 23.8 21.8 39.8 24.3 21.4 24.3
Three Months Ended Year-to-Date
Closed Block Institutional Spread Products 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Operating revenues
Net investment income and net realized gains (losses) 38.0 23.7 29.6 30.1 42.9 38.0 42.9
Fee income—0.1 — — -
Premiums 0.6 0.6 0.5 0.6 0.6 0.6 0.6
Other revenue(0.3)(0.4)(0.2)(0.4)(0.5)(0.3)(0.5)
Total operating revenues 38.3 24.0 29.9 30.3 43.0 38.3 43.0
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(13.5)(16.1)(16.6)(17.4)(17.4)(13.5)(17.4)
Operating expenses(2.6)(2.9)(2.6)(3.2)(2.8)(2.6)(2.8)
Net amortization of DAC/VOBA(0.1)(0.2)(0.1)(0.2)(0.1)(0.1)(0.1)
Interest expense -(0.1)(0.6)(0.6)(0.6) -(0.6)
Total operating benefits and expenses(16.2)(19.3)(19.9)(21.4)(20.9)(16.2)(20.9)
Operating earnings before income taxes 22.1 4.7 10.0 8.9 22.1 22.1 22.1
Three Months Ended Year-to-Date
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Closed Block Other
Operating revenues
Net investment income and net realized gains (losses) 6.0 10.9 8.3 7.6 8.2 6.0 8.2
Fee income — — 0.1—0.1
Premiums 0.9 0.9 1.2 1.3 1.7 0.9 1.7
Other revenue 0.3 2.4 1.1(0.3) 0.4 0.3 0.4
Total operating revenues 7.2 14.2 10.6 8.6 10.4 7.2 10.4
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(6.8) 6.8 2.7 1.3(7.0)(6.8)(7.0)
Operating expenses(1.1)(1.9)(1.5) 21.0(1.2)(1.1)(1.2)
Total operating benefits and expenses(7.9) 4.9 1.2 22.3(8.2)(7.9)(8.2)
Operating earnings before income taxes(0.7) 19.1 11.8 30.9 2.2(0.7) 2.2
ING U.S.
Page 46 of 69
ING U.S.
Closed Block Variable Annuity Income (Loss) before income taxes
Three Months Ended Year-to-Date
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Revenues
Net investment income 18.4 17.2 12.2 5.9 17.4 18.4 17.4
Fee income 309.3 312.9 307.9 304.8 310.3 309.3 310.3
Net realized gains (losses)(776.4)(267.3)(283.0) 480.8(1,313.3)(776.4)(1,313.3)
Other revenues and premiums 4.7 5.3 5.4 6.7 6.8 4.7 6.8
Total revenues(444.0) 68.1 42.5 798.2(978.8)(444.0)(978.8)
Benefits and expenses
Interest credited and other benefits to contract owners/policyholders 94.1(107.6) 84.1(286.4) 196.3 94.1 196.3
Operating expenses and interest expense(112.2)(113.3)(113.3)(113.6)(110.2)(112.2)(110.2)
Net amortization of DAC/VOBA(15.0)(14.5)(12.5)(16.3)(15.0)(15.0)(15.0)
Total benefits and expenses(33.1)(235.4)(41.7)(416.3) 71.1(33.1) 71.1
Income (loss) before income taxes(477.1)(167.3) 0.8 381.9(907.7)(477.1)(907.7)
Three Months Ended Year-to-Date
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
The following table presents notable items that result in volatility in income (loss) before
income taxes:
Net gains (losses) related to incurred guaranteed benefits and guarantee hedge program,
excluding nonperformance risk (1)(453.9)(18.0)(449.7)(74.1)(316.5)(453.9)(316.5)
Gains (losses) related to CHO program (1)(158.5) 18.5(146.2) 64.1(287.4)(158.5)(287.4)
Gain (loss) due to nonperformance risk(1)(106.7)(401.4) 358.9 170.4(571.5)(106.7)(571.5)
Net investment gains (losses) (1) 13.5(0.6)(3.1) 8.5 21.9 13.5 21.9
DAC/VOBA and other intangibles unlocking and loss recognition(0.2) 0.3 2.8(1.5) 0.2(0.2) 0.2
ING U.S.
Page 47 of 69
ING U.S.
Closed Block Variable Annuity Death and Living Benefits
Balances as of
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Death and living benefits-account value
GMAB/GMWB 1,042.6 1,048.1 1,119.3 1,137.1 1,237.0
GMIB 15,481.8 14,904.0 15,113.5 14,714.5 15,573.8
GMWBL 16,075.2 15,612.0 15,745.9 15,328.3 16,002.2
No living benefits 11,246.1 10,976.1 11,251.9 11,097.1 11,802.0
Total* 43,845.7 42,540.1 43,230.5 42,277.0 44,615.0
Discounted net amount at risk (after reinsurance)
Total DB NAR 6,104.8 7,029.1 7,025.5 7,956.2 6,901.6
GMAB/GMWB 31.7 42.4 44.2 55.7 46.2
GMIB 3,028.9 3,576.0 3,531.3 3,861.7 2,688.6
GMWBL 1,293.2 1,702.5 1,837.3 2,170.4 1,625.2
Total LB NAR 4,353.8 5,320.8 5,412.9 6,087.9 4,360.0
*Excludes assets associated with Payout Reserves, Policy Loans, and Life Insurance Business
ING U.S.
Page 48 of 69
ING U.S.
Closed Block Variable Annuity AUM Rollforward
Three Months Ended Year-to-Date
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
(in millions USD)
Balance as of beginning of period 43,198.4 43,842.2 42,843.4 45,133.8 42,645.5 43,198.4 42,645.5
Deposits 131.8 127.1 115.2 132.7 125.4 131.8 125.4
Surrenders, benefits, and product charges(1,075.6)(1,076.6)(953.3)(967.6)(1,021.8)(1,075.6)(1,021.8)
Net cash flow(943.9)(949.5)(838.1)(834.8)(896.4)(943.9)(896.4)
Interest credited and investment performance 2,292.0 305.7 1,836.9(1,455.5) 3,384.7 2,292.0 3,384.7
Balance as of end of period* 44,546.6 43,198.4 43,842.2 42,843.4 45,133.8 44,546.6 45,133.8
Assets Under Management
General account 1,272.1 1,237.6 1,188.5 1,147.7 1,107.2 1,272.1 1,107.2
Separate account 43,274.5 41,960.8 42,653.7 41,695.7 44,026.6 43,274.5 44,026.6
Total* 44,546.6 43,198.4 43,842.2 42,843.4 45,133.8 44,546.6 45,133.8
Payout Reserves, included above
Reserves, end of period 648.8 607.8 561.4 515.7 464.0 648.8 464.0
*Includes assets associated with Payout Reserves, Policy Loans, and Life Insurance Business
ING U.S.
Page 49 of 69
ING U.S.
Page 50 of 69
ING U.S.
Portfolio Composition
Balances as of
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
(in millions USD) Amount% of Total Amount% of Total Amount% of Total Amount% of Total Amount% of Total
Composition of Investment Portfolio
Fixed maturities, available for sale, at fair value, before consolidation 70,708.5 70,995.5 71,077.1 67,961.6 66,510.8
CLOs Adjustments (1)(133.0)(84.1)(79.4)(73.5)(80.5)
VOEs Adjustments (1) 47.4(1.1) 40.7 35.1 34.3
Fixed maturities, available for sale, at fair value, after consolidation 70,622.9 76.7% 70,910.3 74.2% 71,038.4 74.6% 67,923.2 71.3% 66,464.6 73.8%
Fixed maturities, at fair value using the fair value option 2,675.8 2.9% 2,771.3 2.8% 2,875.1 3.0% 3,145.9 3.3% 3,064.1 3.4%
Equity securities, available for sale, at fair value 282.3 0.3% 340.1 0.4% 328.9 0.4% 343.0 0.4% 354.2 0.4%
Short-term investments 2,992.1 3.2% 5,991.2 6.3% 3,637.4 3.8% 5,765.9 6.0% 3,073.3 3.4%
Mortgage loans on real estate 8,949.4 9.7% 8,662.3 9.1% 8,682.6 9.1% 8,953.2 9.4% 8,929.0 9.9%
Loans—Dutch State Obligation—0.0%—0.0% 1,503.6 1.6% 1,596.9 1.7% 1,645.0 1.8%
Policy loans 2,204.4 2.4% 2,200.3 2.3% 2,212.9 2.3% 2,209.0 2.3% 2,224.1 2.5%
Limited partnerships/corporations, before consolidation 1,036.7 1,031.0 1,470.4 1,497.2 1,837.6
VOEs Adjustments (1)(568.2)(565.9)(955.6)(965.6)(1,210.8)
Limited partnerships/corporations, after consolidation 468.5 0.5% 465.1 0.5% 514.8 0.5% 531.6 0.6% 626.8 0.7%
Derivatives 2,077.0 2.3% 2,374.5 2.5% 2,733.7 2.9% 2,983.1 3.1% 2,043.9 2.3%
Other investments 166.7 0.2% 167.0 0.2% 205.1 0.2% 206.9 0.2% 207.1 0.2%
Securities pledged to creditors 1,774.7 1.8% 1,605.5 1.7% 1,462.2 1.6% 1,657.4 1.7% 1,435.4 1.6%
Total investments, after consolidation 92,213.8 100.0% 95,487.6 100.0% 95,194.7 100.0% 95,316.1 100.0% 90,067.5 100.0%
Fixed Maturity Securities—Security Sector (2)
U.S. Government agencies and authorities 6,467.0 8.6% 6,607.9 8.8% 6,769.9 9.0% 6,149.9 8.5% 5,277.5 7.4%
U.S. Corporate—Public 32,137.7 42.8% 31,597.4 41.9% 30,568.2 40.5% 29,280.1 40.2% 28,182.0 39.7%
U.S. Corporate—Private 5,622.2 7.5% 5,566.5 7.4% 5,486.5 7.3% 5,272.3 7.2% 5,140.5 7.3%
Foreign Government / Agency 1,156.1 1.5% 1,190.0 1.6% 1,181.9 1.6% 1,132.9 1.6% 1,056.8 1.5%
Foreign Corporate—Public 6,807.3 9.1% 6,476.7 8.6% 6,146.7 8.1% 5,857.9 8.1% 5,994.7 8.5%
Foreign Corporate—Private 8,146.6 10.9% 8,317.8 11.0% 8,351.0 11.1% 8,227.4 11.3% 8,158.0 11.5%
State, municipalities and political subdivisions 317.8 0.4% 352.8 0.5% 350.9 0.5% 349.7 0.5% 392.2 0.6%
Residential mortgaged-backed securities: -
CMO-B Agency 2,934.3 3.9% 3,066.4 4.1% 3,288.5 4.4% 3,841.7 5.3% 3,783.6 5.3%
CMO-B Non-Agency 540.5 0.7% 582.8 0.8% 612.1 0.8% 698.0 1.0% 710.5 1.0%
Agency 2,706.7 3.6% 2,779.7 3.7% 3,475.4 4.6% 2,941.7 4.0% 2,863.6 4.0%
Non-Agency (3) 1,997.0 2.7% 2,193.9 2.9% 2,255.8 3.0% 2,258.0 3.1% 2,399.0 3.4%
Total Residential mortgage-backed securities 8,178.5 10.9% 8,622.8 11.5% 9,631.8 12.8% 9,739.4 13.4% 9,756.7 13.7%
Commercial mortgage-backed securities 4,813.2 6.4% 4,946.4 6.6% 5,217.0 6.9% 5,197.5 7.1% 5,481.4 7.7%
Other asset-backed securities (3) 1,427.0 1.9% 1,608.8 2.1% 1,671.8 2.2% 1,519.4 2.1% 1,524.3 2.1%
Total fixed maturities, including securities pledged 75,073.4 100.0% 75,287.1 100.0% 75,375.7 100.0% 72,726.5 100.0% 70,964.1 100.0%
Fixed Maturity Securities—Contractual Maturity Dates
Due to mature:
Due in one year or less 3,021.8 4.0% 2,918.1 3.9% 2,980.3 4.0% 2,719.9 3.7% 2,371.7 3.3%
Due after one year through five years 15,205.4 20.3% 15,353.4 20.4% 15,013.6 19.9% 14,273.8 19.6% 13,536.7 19.1%
Due after five years through ten years 19,830.3 26.4% 19,179.7 25.5% 18,554.3 24.6% 18,014.0 24.8% 17,865.4 25.2%
Due after ten years 22,597.2 30.1% 22,657.9 30.1% 22,306.9 29.6% 21,262.5 29.3% 20,427.9 28.9%
C-MOB 3,474.8 4.6% 3,649.2 4.8% 3,900.6 5.2% 4,539.7 6.2% 4,494.1 6.3%
Mortgage-backed securities 9,516.9 12.7% 9,920.0 13.2% 10,948.2 14.5% 10,397.2 14.3% 10,744.0 15.1%
Other asset-backed securities (3) 1,427.0 1.9% 1,608.8 2.1% 1,671.8 2.2% 1,519.4 2.1% 1,524.3 2.1%
Total fixed maturities, including securities pledged 75,073.4 100.0% 75,287.1 100.0% 75,375.7 100.0% 72,726.5 100.0% 70,964.1 100.0%
Fixed Maturity Securities—NAIC Quality Designation
NAIC Quality Designation
1 42,710.2 56.9% 42,197.7 56.1% 42,964.1 57.0% 41,404.0 56.9% 40,017.1 56.4%
2 28,764.1 38.3% 29,245.1 38.9% 28,571.7 37.9% 27,474.3 37.8% 26,887.1 37.8%
3 2,605.5 3.5% 2,670.7 3.5% 2,794.8 3.7% 2,785.3 3.8% 2,975.1 4.2%
4 578.3 0.8% 699.8 0.9% 534.1 0.7% 474.1 0.7% 544.5 0.8%
5 186.0 0.2% 254.8 0.3% 251.1 0.3% 320.8 0.4% 504.9 0.7%
6 229.3 0.3% 219.0 0.3% 259.9 0.4% 268.0 0.4% 35.4 0.1%
Total fixed maturities, including securities pledged (4) 75,073.4 100.0% 75,287.1 100.0% 75,375.7 100.0% 72,726.5 100.0% 70,964.1 100.0%
Fixed Maturity Securities—ARO Quality Rating
ARO Quality Rating
AAA 16,047.9 21.4% 16,752.5 22.3% 17,963.9 23.8% 17,418.1 23.9% 16,790.1 23.7%
AA 4,338.0 5.8% 4,067.1 5.4% 3,777.3 5.0% 3,602.6 5.0% 3,620.5 5.1%
A 20,115.9 26.8% 19,414.6 25.8% 19,133.8 25.4% 18,473.4 25.4% 17,707.2 25.0%
BBB 29,205.9 38.9% 29,445.1 39.1% 29,034.0 38.5% 27,860.2 38.3% 27,208.4 38.3%
BB 2,877.3 3.8% 2,865.1 3.8% 2,876.4 3.8% 2,766.3 3.8% 2,980.9 4.2%
B and below 2,488.4 3.3% 2,742.7 3.6% 2,590.3 3.5% 2,605.9 3.6% 2,657.0 3.7%
Total fixed maturities, including securities pledged 75,073.4 100.0% 75,287.1 100.0% 75,375.7 100.0% 72,726.5 100.0% 70,964.1 100.0%
(1) Adjustments include the elimination of intercompany transactions between the Company and its consolidated investment entities, primarily the elimination of the
Company’s equity at risk recorded as investments by the Company (before consolidation) against either equity (private equity and real estate partnership funds) or
senior and subordinated debt (CLOs) of the funds.
Fixed Maturity Securities includes fixed maturities,available for sale,fixed maturities at fair value using the fair value option and securities pledged to creditors.
Subprime asset-backed securities are included as a component of Non-Agency RMBS under this presentation.
ARO ratings do not directly translate into NAIC ratings.
ING U.S.
Page 51 of 69
ING U.S.
Portfolio Results
Three Months Ended Year to Date
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
(in millions USD)
Net Investment Annualized Net Investment Annualized Net Investment Annualized Net Investment Annualized Net Investment Annualized Net Investment Annualized Net Investment Annualized
Operating investment income and annualized yield Income Yield Income Yield Income Yield Income Yield Income Yield Income Yield Income Yield
Fixed maturity securities(1) 855.6 5.21% 854.6 5.23% 872.7 5.42% 898.1 5.72% 890.0 5.56% 855.6 5.21% 890.0 5.56%
Equity securities 2.6 3.72% 3.2 3.77% 5.4 6.81% 5.9 7.14% 3.2 3.67% 2.6 3.72% 3.2 3.67%
Mortgage loans 115.4 5.38% 114.0 5.42% 119.0 5.50% 120.2 5.44% 122.4 5.67% 115.4 5.38% 122.4 5.67%
Limited partnerships 23.2 9.37% 17.4 6.98% 22.2 6.22%(47.8) -11.98% 60.7 14.13% 23.2 9.37% 60.7 14.13%
Policy loans 29.9 5.57% 30.0 5.60% 30.1 5.60% 30.7 5.72% 30.7 5.68% 29.9 5.57% 30.7 5.68%
Dutch state obligation (Alt-A transaction)—0.00% 1.6 0.91% 4.3 1.10% 4.4 1.09% 3.8 0.91%—0.00% 3.8 0.91%
Short-term investments 0.9 0.12% 1.5 0.10% 1.0 0.11% 2.1 0.14% 0.8 0.10% 0.9 0.12% 0.8 0.10%
Derivatives(1)(11.9) N/A(13.9) N/A(9.0) N/A(18.3) N/A(15.0) N/A(11.9) N/A(15.0) N/A
Pre-payment fee income 25.6 0.12% 17.9 0.08% 13.7 0.06% 17.3 0.08% 20.6 0.10% 25.6 0.12% 20.6 0.10%
Other assets 3.5 N/A 11.0 N/A(1.6) N/A 5.5 N/A 8.2 N/A 3.5 N/A 8.2 N/A
Gross investment income before expenses and fees 1,044.8 5.17% 1,037.3 4.94% 1,057.8 5.14% 1,018.1 4.89% 1,125.4 5.50% 1,044.8 5.17% 1,125.4 5.50%
Expenses and fees(40.7) -0.21%(41.4) -0.20%(40.0) -0.20%(41.8) -0.21%(41.7) -0.21%(40.7) -0.21%(41.7) -0.21%
Total investment income and annualized yield 1,004.1 4.96% 995.9 4.74% 1,017.8 4.94% 976.3 4.68% 1,083.7 5.29% 1,004.1 4.96% 1,083.7 5.29%
Less: Closed Block Variable Annuity (CBVA) investment income net of expenses and fees 18.5 17.3 12.2 5.8 17.5 18.5 17.5
Total investment income, excluding CBVA 985.6 978.6 1,005.6 970.5 1,066.2 985.6 1,066.2
Trading Gains/Losses
Fixed Maturities 11.0 45.9 194.9 56.3 111.3 11.0 111.3
Equity securities 0.2 2.4 0.1(0.9) 2.6 0.2 2.6
Mortgage loans—7.7 -(0.4) 0.4—0.4
Other investments 1.6(21.9) 9.0(1.5)(7.5) 1.6(7.5)
Total Trading Gains/Losses, excluding CBVA 12.8 34.1 204.0 53.5 106.8 12.8 106.8
Impairments
Fixed Maturities(11.0)(20.2)(11.0)(5.8)(6.8)(11.0)(6.8)
Equity securities — — — -
Mortgage loans -(7.7) — — -
Other investments —(1.4) — —
Total Impairments, excluding CBVA(11.0)(27.9)(12.4)(5.8)(6.8)(11.0)(6.8)
Fair Value Adjustments(2)(10.2)(9.3) 44.0 85.4(6.3)(10.2)(6.3)
Derivatives, including Change in Fair Value of Derivatives related to
Guaranteed Benefits, excluding CBVA 58.1 22.9 49.2 4.0 133.9 58.1 133.9
Net Realized Investment Gains (losses) and Net Guaranteed Benefit
Hedging Gains (losses), excluding CBVA 49.7 19.8 284.8 137.1 227.6 49.7 227.6
CBVA Investment Income and Realized Capital Gains (Losses)(758.0)(250.1)(270.8) 486.6(1,295.8)(758.0)(1,295.8)
Business Sold Through MODCO REINS(3)(18.7)(6.9) 18.8 21.5(1.1)(18.7)(1.1)
Consolidation/eliminations(4) 65.3(70.2) 55.4 8.9 30.6 65.3 30.6
Total Investment Income and Realized Capital Gains (Losses 323.9 671.2 1,093.8 1,624.6 27.5 323.9 27.5
Operating income from CMO-B portfolio assets, including derivatives, is included in fixed maturity securities.
Fair value adjustments include adjustments related to CMO-B assets carried at fair value, among other income sources.
Income related to the Hannover Life Re Modco reinsurance transaction, in which the risk associated with these policies has been transferred to Hannover Life Re.
Consolidation/eliminations includes:
-The impact of consolidation of investment entities into the Consolidated Statements of Operations, net of the elimination of the Company’s management fees expensed by the funds and recorded as operating revenues (before consolidation) by the Company; -The elimination of intersegment expenses, primarily consisting of asset-based management and administration fees charged by our Investment Management Segment; -Other intersegment eliminations.
ING U.S.
Page 52 of 69
ING U.S.
Alternative Investment Income
(in millions USD) Three Months Ended Year-to-Date
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
Retirement
Average alternative investments 256.0 292.2 505.0 624.8 670.2 256.0 670.2
Alternative investment income 7.9 0.9 2.6 14.8 24.9 7.9 24.9
Annuities
Average alternative investments 189.2 188.5 277.3 313.2 358.5 189.2 358.5
Alternative investment income 4.4 2.0 2.0 9.5 12.3 4.4 12.3
Investment Management
Average alternative investments 120.8 129.2 114.3 100.1 86.3 120.8 86.3
Alternative investment income 2.8 5.6 19.5 11.1 5.4 2.8 5.4
Individual Life
Average alternative investments 132.1 133.5 195.5 225.3 235.7 132.1 235.7
Alternative investment income 3.4(0.3) 0.7 5.9 5.8 3.4 5.8
Employee Benefits
Average alternative investments 23.6 29.7 52.5 65.3 69.4 23.6 69.4
Alternative investment income 0.6 0.1 0.4 1.4 2.6 0.6 2.6
Total Ongoing Business
Average alternative investments 721.7 773.1 1,144.6 1,328.7 1,420.1 721.7 1,420.1
Alternative investment income 19.1 8.3 25.2 42.7 51.0 19.1 51.0
Corporate
Average alternative investments 98.1 101.6 96.5 93.5 90.5 98.1 90.5
Alternative investment income 2.7 5.1 6.3 6.9 5.1 2.7 5.1
Closed Blocks (1)
Average alternative investments 62.4 41.5 80.4 111.2 120.6 62.4 120.6
Alternative investment income 1.8 4.0 0.7 2.3 4.6 1.8 4.6
Total ING U.S.
Average alternative investments 882.2 916.2 1,321.5 1,533.4 1,631.2 882.2 1,631.2
Alternative investment income 23.6 17.4 32.2 51.9 60.7 23.6 60.7
(1) Our Closed Block Variable Annuity segment is managed to focus on protecting
regulatory and rating agency capital rather than achieving operating metrics and,
therefore, its results of operations are not reflected within investment income.
* The investment income on alternative investments shown above for the period ended
June 30, 2012 excludes the $92.0 million net loss on the sale of certain alternative
investments during the period.
ING U.S.
Page 53 of 69
ING U.S.
Unrealized Gains (Losses)
(in millions USD)
Fixed maturities, at fair value, using the fair value option
Aging Schedule
Balances as of
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Amount% of Total Amount% of Total Amount% of Total Amount% of Total Amount% of Total
Less than 20%(191.9) 71.3%(150.6) 51.4%(172.5) 46.2%(285.1) 44.6%(321.6) 50.4%
20% or more for less than six months(3.9) 1.5%(11.4) 3.9%(31.0) 8.3%(65.5) 10.3%(27.6) 4.3%
20% or more for six months or greater(73.0) 27.2%(130.7) 44.7%(169.7) 45.5%(288.3) 45.1%(289.4) 45.3%
Total Unrealized Loss(268.8) 100.0%(292.7) 100.0%(373.2) 100.0%(638.9) 100.0%(638.6) 100.0%
Total Unrealized Gain 7,336.0 8,155.7 8,277.8 7,133.2 6,128.1
Net Unrealized Gain/Loss 7,067.2 7,863.0 7,904.6 6,494.3 5,489.5
Fixed Maturities Securities—Security Sector—Net Unrealized
Gain/(Loss)*
US Treasuries and US government agencies and authorities 638.7 768.2 835.8 845.2 518.6
US Corporate—Public 3,116.0 3,592.5 3,638.9 2,897.1 2,320.7
US Corporate—Private 561.5 585.3 607.0 532.6 492.4
Foreign Government / Agency 84.0 120.6 109.9 74.8 70.5
Foreign Corporate—Public 559.7 640.8 601.8 404.9 391.1
Foreign Corporate—Private 793.1 831.9 848.7 745.1 676.4
State, municipalities, and political subdivisions 29.2 32.6 29.4 28.0 23.6
Residential mortgaged-backed securities:
CMO-B Agency 505.9 551.1 587.4 710.4 701.2
CMO-B Non-Agency 128.5 136.0 134.2 179.0 186.2
Agency 55.8 67.4 90.2 78.0 72.7
Non-Agency 18.9(41.8)(111.3)(304.9)(324.9)
Total Residential mortgage-backed securities 709.1 712.7 700.5 662.5 635.2
Commercial Mortgage-Backed Securities 511.8 507.5 457.5 239.5 298.6
Other Asset-Backed Securities* 64.1 70.9 75.1 64.6 62.4
Total Net Unrealized Gain/Loss 7,067.2 7,863.0 7,904.6 6,494.3 5,489.5
* Subprime asset-backed securities are included as a component of Non-Agency RMBS under this presentation.
ING U.S.
Page 54 of 69
ING U.S.
Asset Backed Securities
(in millions USD)
RMBS Balances by Collateral Type Balances as of
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Amortized Amortized Amortized Amortized Amortized
Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost
Prime Agency 5,639.6 4,939.7 5,844.8 5,070.0 6,763.9 5,929.3 6,783.4 5,821.7 6,647.2 5,706.6
Prime / Non-Agency 1,300.0 1,116.1 1,399.4 1,215.3 1,503.2 1,312.7 1,621.0 1,439.9 1,712.3 1,539.5
Alt-A RMBS 402.0 365.2 411.3 389.2 415.2 407.4 399.7 431.9 418.4 450.7
Subprime Mortgage-Backed Securities 836.9 836.3 967.3 998.0 949.5 1,039.1 935.3 1,122.5 978.8 1,184.0
Total 8,178.5 7,257.3 8,622.8 7,672.5 9,631.8 8,688.5 9,739.4 8,816.0 9,756.7 8,880.8
CMBS Balances by Year of Origination
Balances as of
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Amortized Amortized Amortized Amortized Amortized
Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost
2008 11.8 9.4 12.9 11.1 15.3 13.0 15.2 14.6 15.8 14.8
2007 1,810.3 1,583.0 1,850.3 1,636.8 2,018.7 1,841.4 1,898.2 1,860.7 1,930.9 1,878.0
2006 1,475.7 1,300.7 1,493.7 1,315.8 1,494.1 1,333.5 1,449.7 1,357.1 1,482.3 1,365.9
2005 and prior 1,515.4 1,408.3 1,589.5 1,475.2 1,688.9 1,571.6 1,834.4 1,725.6 2,052.4 1,924.1
Total 4,813.2 4,301.4 4,946.4 4,438.9 5,217.0 4,759.5 5,197.5 4,958.0 5,481.4 5,182.8
Other ABS Balances by Loan
Classification
Balances as of
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Amortized Amortized Amortized Amortized Amortized
Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost
Credit Card Receivables 591.5 558.0 651.7 614.8 671.4 631.9 619.5 584.2 647.0 615.0
Automobile Receivables 471.1 468.1 535.2 531.1 573.8 568.8 460.0 456.9 422.5 420.1
CLO’s * 53.6 53.8 66.1 68.0 82.1 86.0 75.2 84.5 78.5 84.3
Other 310.8 291.0 355.8 334.2 344.5 321.5 364.7 343.4 376.3 356.2
Total 1,427.0 1,370.9 1,608.8 1,548.1 1,671.8 1,608.2 1,519.4 1,469.0 1,524.3 1,475.6
ING U.S.
Page 55 of 69
ING U.S.
RMBS Securities Summary
(in millions USD)
RMBS*
By Rating and Origination Year
As of March 31, 2013
Prime Agency Prime/Non-Agency Alt-A RMBS Subprime Mortgage-Backed Total
Securities
NAIC Rating Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost
1 5,613.7 4,909.9 754.9 665.4 170.2 143.7 502.5 465.7 7,041.3 6,184.7
2 10.0 11.9 150.3 152.0 45.8 45.9 54.5 59.6 260.6 269.4
3 10.1 12.1 85.8 84.1 93.1 86.8 191.5 210.6 380.5 393.6
4 5.8 5.8 70.4 66.7 75.3 71.7 79.2 91.8 230.7 236.0
5 — 60.3 44.6 14.6 13.8 6.9 5.8 81.8 64.2
6 — 178.3 103.3 3.0 3.3 2.3 2.8 183.6 109.4
Total by rating 5,639.6 4,939.7 1,300.0 1,116.1 402.0 365.2 836.9 836.3 8,178.5 7,257.3
Prime Agency Prime/Non-Agency Alt-A RMBS Subprime Mortgage-Backed Total
Securities
ARO Rating Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost
AAA 5,600.6 4,896.3 16.2 16.1 0.5 0.6 3.7 3.6 5,621.0 4,916.6
AA 3.2 3.1 54.5 51.1 1.8 1.8 8.7 8.4 68.2 64.4
A — 137.9 132.7 7.9 7.4 48.2 49.2 194.0 189.3
BBB — 152.3 149.3 13.5 13.7 50.0 51.5 215.8 214.5
BB 10.1 12.1 80.0 76.1 21.6 22.0 100.1 108.5 211.8 218.7
B and below 25.7 28.2 859.1 690.8 356.7 319.7 626.2 615.1 1,867.7 1,653.8
Total by rating 5,639.6 4,939.7 1,300.0 1,116.1 402.0 365.2 836.9 836.3 8,178.5 7,257.3
Prime Agency Prime/Non-Agency Alt-A RMBS Subprime Mortgage-Backed Total
Securities
Origination Year Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost
2013 17.2 17.2 — — — 17.2 17.2
2012 510.0 512.5 — — — 510.0 512.5
2011 872.3 854.1 — — — 872.3 854.1
2010 979.9 956.7 32.0 30.7 — — 1,011.9 987.4
2009 357.7 352.0 16.1 16.3 — — 373.8 368.3
2008 224.9 206.7 — — — 224.9 206.7
2007 572.6 514.2 183.1 171.0 83.5 79.4 243.6 229.6 1,082.8 994.2
2006 641.2 473.7 304.9 209.7 104.8 78.6 272.3 266.8 1,323.2 1,028.8
2005 and prior 1,463.8 1,052.6 763.9 688.4 213.7 207.2 321.0 339.9 2,762.4 2,288.1
Total by origination year 5,639.6 4,939.7 1,300.0 1,116.1 402.0 365.2 836.9 836.3 8,178.5 7,257.3
* Subprime mortgage-backed securities are included in RMBS under this presentation
ING U.S.
Page 56 of 69
ING U.S.
CMBS and Other Asset -Backed Securities Summary
(in millions USD)
CMBS
By Rating and Vintage As of March 31, 2013
AAA AA A BBB BB B & Below Total
Amortized Amortized Amortized Amortized Amortized Amortized
Origination Year Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Amortized Cost 2008 — — — 11.8 9.4 — — 11.8 9.4 2007 83.1 76.6 410.8 366.8 193.2 172.4 537.6 458.1 377.6 333.8 208.0 175.3 1,810.3 1,583.0 2006 603.4 545.9 202.7 179.0 211.9 187.3 283.7 251.6 130.6 97.8 43.4 39.1 1,475.7 1,300.7 2005 and prior 1,094.8 1,041.1 180.8 167.2 152.0 134.3 32.1 29.8 37.7 25.6 18.0 10.3 1,515.4 1,408.3
Total by origination year 1,781.3 1,663.6 794.3 713.0 557.1 494.0 865.2 748.9 545.9 457.2 269.4 224.7 4,813.2 4,301.4
Other Asset -Backed Securities* By Rating and Classification As of March 31, 2013
Credit Card Receivables Automobile Receivables CLO’s** Other Total
Amortized Amortized Amortized Amortized Amortized ARO Rating Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost AAA 569.0 537.2 471.1 468.1 1.7—274.5 258.8 1,316.3 1,264.1 AA — — 27.1 23.8 2.1 2.7 29.2 26.5 A 22.5 20.8 — 19.8 17.1 16.1 16.5 58.4 54.4 BBB — — — 12.7 11.7 12.7 11.7 BB — — — 1.1 1.1 1.1 1.1 B and below — — 5.0 12.9 4.3 0.2 9.3 13.1
Total by rating 591.5 558.0 471.1 468.1 53.6 53.8 310.8 291.0 1,427.0 1,370.9
Credit Card Receivables Automobile Receivables CLO’s** Other Total
Amortized Amortized Amortized Amortized Amortized NAIC Designation Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost 1 591.5 558.0 471.1 468.1 48.6 40.9 292.7 278.0 1,403.9 1,345.0
2 — — — 12.7 11.7 12.7 11.7
3 — — — 1.1 1.1 1.1 1.1
4 — — — — —
5 — — — — —
6 — — 5.0 12.9 4.3 0.2 9.3 13.1
Total by rating 591.5 558.0 471.1 468.1 53.6 53.8 310.8 291.0 1,427.0 1,370.9
* Subprime asset-backed securities are excluded from Other Asset-Backed Securities and included in Non-Agency RMBS under this presentation.
** Excludes consolidated CLO’s
ING U.S.
Page 57 of 69
ING U.S.
Mortgage Loans on Real Estate
(in millions USD)
Mortgage Loans on Real Estate by Region and Property
Type
Balances as of
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
U.S. Region Amount% of Total Amount% of Total Amount% of Total Amount% of Total Amount% of Total
Pacific 2,025.5 22.7% 1,973.9 22.8% 2,065.6 23.7% 2,109.1 23.5% 2,147.0 24.1%
South Atlantic 1,725.9 19.3% 1,687.6 19.4% 1,690.6 19.4% 1,762.2 19.7% 1,648.0 18.4%
Middle Atlantic 1,000.5 11.2% 1,059.5 12.2% 1,054.5 12.1% 1,066.8 11.9% 1,099.5 12.3%
East North Central 1,020.1 11.4% 962.8 11.1% 986.8 11.4% 1,047.8 11.7% 1,031.3 11.6%
West South Central 1,301.6 14.5% 1,176.3 13.6% 1,107.9 12.8% 1,140.6 12.7% 1,145.1 12.8%
Mountain 800.9 8.9% 718.2 8.3% 693.2 8.0% 743.3 8.3% 776.6 8.7%
West North Central 535.0 6.0% 537.5 6.2% 525.9 6.1% 506.8 5.7% 495.1 5.5%
New England 334.8 3.7% 334.6 3.9% 330.1 3.8% 340.0 3.8% 345.7 3.9%
East South Central 209.0 2.3% 215.8 2.5% 232.5 2.7% 241.3 2.7% 245.6 2.7%
Total Commercial Mortgage Loans (1) 8,953.3 100.0% 8,666.2 100.0% 8,687.1 100.0% 8,957.9 100.0% 8,933.9 100.0%
Property Type
Industrial 3,385.2 37.7% 3,361.5 38.8% 3,354.8 38.5% 3,458.2 38.6% 3,467.6 38.8%
Retail 2,609.9 29.2% 2,350.2 27.1% 2,167.5 25.0% 2,240.1 25.0% 2,230.2 24.9%
Office 1,243.3 13.9% 1,284.7 14.8% 1,344.9 15.5% 1,420.2 15.9% 1,381.2 15.5%
Apartments 935.8 10.5% 952.1 11.0% 974.2 11.2% 984.8 11.0% 992.1 11.1%
Hotel/Motel 324.1 3.6% 280.6 3.2% 436.4 5.0% 438.3 4.9% 451.3 5.1%
Other 353.9 4.0% 363.1 4.2% 334.9 3.9% 340.7 3.8% 335.3 3.7%
Mixed Use 101.1 1.1% 74.0 0.9% 74.4 0.9% 75.6 0.8% 76.2 0.9%
Total Commercial Mortgage Loans 8,953.3 100.0% 8,666.2 100.0% 8,687.1 100.0% 8,957.9 100.0% 8,933.9 100.0%
Loan Size
Under $5 million 1,662.9 18.6% 1,683.0 19.4% 1,698.4 19.5% 1,718.4 19.2% 1,727.8 19.3%
$5 million but less than $10 million 1,694.8 18.9% 1,641.1 18.9% 1,675.4 19.3% 1,674.6 18.7% 1,673.9 18.7%
$10 million but less than $20 million 1,639.0 18.3% 1,578.6 18.2% 1,611.8 18.6% 1,593.8 17.8% 1,576.1 17.6%
$20 million but less than $30 million 966.1 10.8% 753.2 8.7% 705.3 8.1% 718.2 8.0% 759.2 8.6%
$30 million and over 2,990.5 33.4% 3,010.3 34.8% 2,996.2 34.5% 3,252.9 36.3% 3,196.9 35.8%
Total Commercial Mortgage Loans 8,953.3 100.0% 8,666.2 100.0% 8,687.1 100.0% 8,957.9 100.0% 8,933.9 100.0%
Other Stats as ratios
LTV—Origination 58.1% 57.7% 56.9% 56.6% 56.5%
LTV—Current 55.3% 55.0% 53.8% 54.4% 54.6%
Debt Service Coverage 1.9 2.0 2.0 2.0 2.0
Other Stats in USD millions
60+day delinq (incl in process of foreclosure)
US GAAP Book Value 9.0 9.0 16.7 16.7 18.3
Allowance for loan losses 3.9 3.9 4.5 4.7 4.9
(1) Total Commercial Mortgage Loans shown includes allowance for loan losses.
[Graphic Appears Here]
ING U.S.
Page 58 of 69
ING U.S.
U.S. and Foreign Corporate Securities
(in millions USD)
Summary of Corporate Securities by
Industry Category
Balances as of
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Fair Value% of Total Fair Value% of Total Fair Value% of Total Fair Value% of Total Fair Value% of Total
Type Industry
Communications 4,056.8 10.4% 3,670.9 9.6% 3,608.0 9.8% 3,438.1 9.8% 3,408.8 10.0%
Financial 5,826.4 15.0% 5,579.5 14.7% 5,341.0 14.5% 5,399.7 15.4% 5,479.8 16.0%
Industrial and other companies 21,203.8 54.4% 21,065.0 55.4% 19,999.6 54.5% 18,863.9 53.7% 18,119.1 53.0%
Public Utilities 6,813.6 17.5% 6,718.7 17.6% 6,756.4 18.4% 6,513.1 18.5% 6,273.7 18.4%
Transportation 1,044.4 2.7% 1,040.0 2.7% 1,009.9 2.8% 923.2 2.6% 895.3 2.6%
Sub-total 38,945.0 100.0% 38,074.1 100.0% 36,714.9 100.0% 35,138.0 100.0% 34,176.7 100.0%
Communications 491.2 3.6% 499.6 3.6% 498.5 3.6% 362.6 2.7% 363.2 2.7%
Financial 917.0 6.7% 1,036.1 7.5% 1,040.5 7.5% 1,029.3 7.6% 1,033.9 7.8%
Industrial and other companies 8,511.4 61.7% 8,587.4 61.8% 8,519.0 61.6% 8,322.9 61.7% 8,284.1 62.3%
Private Utilities 3,302.1 24.0% 3,356.0 24.2% 3,410.3 24.6% 3,401.8 25.2% 3,236.0 24.3%
Transportation 547.1 4.0% 405.2 2.9% 369.2 2.7% 383.1 2.8% 381.3 2.9%
Sub-total 13,768.8 100.0% 13,884.3 100.0% 13,837.5 100.0% 13,499.7 100.0% 13,298.5 100.0%
Communications 4,548.0 8.6% 4,170.5 8.0% 4,106.5 8.2% 3,800.7 7.8% 3,772.0 7.9%
Financial 6,743.4 12.8% 6,615.6 12.7% 6,381.5 12.6% 6,429.0 13.2% 6,513.7 13.7%
Industrial and other companies 29,715.2 56.4% 29,652.4 57.1% 28,518.6 56.4% 27,186.8 55.9% 26,403.2 55.6%
Total Utilities 10,115.7 19.2% 10,074.7 19.4% 10,166.7 20.1% 9,914.9 20.4% 9,509.7 20.1%
Transportation 1,591.5 3.0% 1,445.2 2.8% 1,379.1 2.7% 1,306.3 2.7% 1,276.6 2.7%
Total 52,713.8 100.0% 51,958.4 100.0% 50,552.4 100.0% 48,637.7 100.0% 47,475.2 100.0%
ING U.S.
Page 59 of 69
ING U.S.
Exposure to European Debt-Fixed Maturities and Equity Securities
(in millions USD)
Exposure to Select European Countries Sovereign Debt Corporate—Financial Corporate—Non-Financial Total Total
As of March 31, 2013 Fair Value% of Total Fair Value% of Total Fair Value% of Total Fair Value% of Total Amortized Cost% of Total
Ireland—0.0%—0.0% 348.1 4.8% 348.1 4.1% 327.4 4.3%
Italy—0.0%—0.0% 221.8 3.0% 221.8 2.6% 203.4 2.6%
Portugal—0.0%—0.0% 10.0 0.1% 10.0 0.1% 7.5 0.1%
Spain—0.0%—0.0% 244.0 3.3% 244.0 2.9% 230.1 3.0%
Total Peripheral Euro-Zone—0.0%—0.0% 823.9 11.2% 823.9 9.7% 768.4 10.0%
Austria—0.0%—0.0% 76.7 1.1% 76.7 0.9% 75.0 1.0%
Belgium 40.1 13.1%—0.0% 353.6 4.9% 393.7 4.7% 326.7 4.3%
Bulgaria 6.0 2.0%—0.0%—0.0% 6.0 0.1% 5.9 0.1%
Croatia 27.9 9.2%—0.0%—0.0% 27.9 0.3% 25.5 0.3%
Czech Republic—0.0%—0.0% 10.6 0.1% 10.6 0.1% 10.1 0.1%
Denmark—0.0% 10.4 1.2% 84.9 1.2% 95.3 1.1% 83.5 1.1%
Finland—0.0%—0.0% 43.0 0.6% 43.0 0.5% 40.0 0.5%
France—0.0% 97.7 11.6% 401.2 5.5% 498.9 6.0% 459.2 6.0%
Germany—0.0% 51.8 6.1% 592.5 8.1% 644.3 7.6% 585.5 7.6%
Hungary 6.0 2.0%—0.0%—0.0% 6.0 0.1% 5.8 0.1%
Kazakhstan 56.2 18.6%—0.0% 5.9 0.1% 62.1 0.7% 54.6 0.7%
Latvia 5.0 1.7%—0.0%—0.0% 5.0 0.1% 4.6 0.1%
Lithuania 35.2 11.6%—0.0%—0.0% 35.2 0.4% 30.6 0.4%
Luxembourg—0.0%—0.0% 129.8 1.8% 129.8 1.5% 123.1 1.6%
Netherlands—0.0% 180.2 21.3% 1,144.7 15.7% 1,324.9 15.7% 1,192.6 15.6%
Norway—0.0% 2.9 0.3% 233.1 3.2% 236.0 2.8% 220.4 2.9%
Russian Federation 84.9 28.0%—0.0% 104.9 1.4% 189.8 2.3% 169.2 2.2%
Slovakia 5.3 1.8%—0.0%—0.0% 5.3 0.1% 5.0 0.1%
Slovenia 4.7 1.6%—0.0%—0.0% 4.7 0.1% 5.3 0.1%
Sweden 23.7 7.8% 20.1 2.4% 129.0 1.8% 172.8 2.0% 156.6 2.0%
Switzerland—0.0% 157.4 18.6% 550.2 7.6% 707.6 8.4% 634.2 8.3%
Turkey 7.8 2.6%—0.0%—0.0% 7.8 0.1% 7.8 0.1%
United Kingdom—0.0% 326.0 38.5% 2,600.2 35.7% 2,926.2 34.7% 2,667.5 34.8%
Total Non-Peripheral Europe 302.8 100.0% 846.5 100.0% 6,460.3 88.8% 7,609.6 90.3% 6,888.7 90.0%
Total Europe 302.8 100.0% 846.5 100.0% 7,284.2 100.0% 8,433.5 100.0% 7,657.1 100.0%
ING U.S.
Page 60 of 69
ING U.S.
Page 61 of 69
ING U.S.
Adjustments to Operating Earnings by Segment
(in millions USD) Three Months Ended Year-to-Date
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12 3/31/13 3/31/12
DAC/VOBA and other intangibles unlocking
Retirement 3.0(8.9) 15.9(5.1) 3.8 3.0 3.8
Annuities 7.0(44.4)(12.9)(8.6)(20.3) 7.0(20.3)
Total Retirement Solutions 10.0(53.3) 3.0(13.7)(16.5) 10.0(16.5)
Investment Management — — — -
Individual Life(2.7) 4.6 3.4(0.2)(4.4)(2.7)(4.4)
Employee Benefits — — — -
Total Insurance Solutions(2.7) 4.6 3.4(0.2)(4.4)(2.7)(4.4)
Ongoing Business 7.3(48.7) 6.4(13.9)(20.9) 7.3(20.9)
Corporate — — — -
Total Closed Blocks — — — -
Total DAC/VOBA and other intangibles unlocking 7.3(48.7) 6.4(13.9)(20.9) 7.3(20.9)
Additional adjustments*
Retirement —(1.0)(50.0) 19.8—19.8
Annuities —(0.3)(18.5) 7.6—7.6
Total Retirement Solutions —(1.3)(68.5) 27.4—27.4
Investment Management ——2.2 — -
Individual Life — 5.2(3.1) 12.7—12.7
Employee Benefits — 0.6(3.8) 3.3—3.3
Total Insurance Solutions — 5.8(6.9) 16.0—16.0
Ongoing Business — 4.5(73.2) 43.4—43.4
Corporate(41.9)(39.2)(39.8)(32.1)(16.7)(41.9)(16.7)
Total Closed Blocks — -(10.1) 4.3—4.3
Total non-recurring items and interest expense(41.9)(39.2)(35.3)(115.4) 31.0(41.9) 31.0
Total adjustments to operating earnings
Retirement 3.0(8.9) 14.9(55.1) 23.6 3.0 23.6
Annuities 7.0(44.4)(13.2)(27.1)(12.7) 7.0(12.7)
Total Retirement Solutions 10.0(53.3) 1.7(82.2) 10.9 10.0 10.9
Investment Management ——2.2 — -
Individual Life(2.7) 4.6 8.6(3.3) 8.3(2.7) 8.3
Employee Benefits — 0.6(3.8) 3.3—3.3
Total Insurance Solutions(2.7) 4.6 9.2(7.1) 11.6(2.7) 11.6
Ongoing Business 7.3(48.7) 10.9(87.1) 22.5 7.3 22.5
Corporate(41.9)(39.2)(39.8)(32.1)(16.7)(41.9)(16.7)
Total Closed Blocks — -(10.1) 4.3—4.3
Total adjustments to operating earnings(34.6)(87.9)(28.9)(129.3) 10.1(34.6) 10.1
* Additional adjustments include impact of portfolio restructuring and interest expenses
ING U.S.
Page 62 of 69
ING U.S.
Average Capital and Financial Leverage
Balances as of
(in millions USD, unless otherwise indicated) 3/31/13 12/31/12
ING U.S., Inc. Shareholder’s Equity 13,391.1 13,874.9
AOCI 3,452.8 3,710.7
ING U.S., Inc. Shareholder’s Equity, excluding AOCI 9,938.3 10,164.2
Financial Leverage (1) 3,707.3 3,808.3
Total Capital 13,645.6 13,972.5
Financial Leverage to Total Capital 27.2% 27.3%
Average Capital (average for period) 13,809.1 13,886.4
(1) Financial leverage is defined as short term debt, long term debt, and loans from certain subsidiaries, excluding operating
leverage. We define operating leverage as self-liquidating forms of financing, including securities lending, reverse repurchase and
captive reinsurance reserve financing arrangements. The following table presents a reconciliation of financial leverage to debt:
Balances as of
(in millions USD, unless otherwise indicated) 3/31/13 12/31/12
Short-term Debt 321.2 1,064.6 Long-term Debt 3,440.8 3,171.1 Total Debt 3,762.0 4,235.7 Less: operating leverage (329.1) (688.4) Plus: loans from subsidiaries 274.4 261.0
Financial Leverage 3,707.3 3,808.3
ING U.S.
Page 63 of 69
ING U.S.
Operating Revenues by Segment
Three Months Ended
(in millions USD) 3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Retirement 583.2 570.5 582.1 538.9 580.4
Annuities 307.6 317.4 309.7 328.7 351.2
Total Retirement Solutions 890.8 887.9 891.8 867.6 931.6
Investment Management 131.9 142.5 142.2 130.2 130.6
Individual Life 687.1 694.2 678.5 709.2 712.0
Employee Benefits 318.1 313.6 310.5 313.8 313.3
Total Insurance Solutions 1,005.2 1,007.8 989.0 1,023.0 1,025.3
Ongoing Business 2,027.9 2,038.2 2,023.0 2,020.8 2,087.5
Corporate 17.1 19.2 13.2 19.3 14.2
Total Closed Blocks 45.5 38.2 40.5 38.9 53.4
Total operating revenues 2,090.5 2,095.6 2,076.7 2,079.0 2,155.1
Adjustments:
Closed Block Variable Annuity(444.0) 68.1 42.5 798.2(978.8)
Net investment gains (losses) and
related charges and adjustments 30.4 49.5 253.4 197.2 103.3
Net guaranteed benefit hedging gains (losses) and
related charges and adjustments 20.6(29.5) 43.8(56.5) 125.3
Loss related to businesses exited through
reinsurance or divestment(12.1) 1.1 27.7 28.3 7.5
Income (loss) attributable to non-controlling interests 40.3(34.0) 63.7 262.8 21.3
Other adjustments to operating revenue* 92.9 53.0 56.5 52.9 51.6
Total revenue 1,818.6 2,203.8 2,564.3 3,361.9 1,485.3
* Other adjustments to operating revenue includes:
Revenues related to businesses exited through reinsurance or divestment; revenues
attributable to non-controlling interests; and other adjustments to operating revenues
primarily including fee income earned by the Company’s broker-dealers for sales of non-
proprietary products, which are reflected net of commission expense in the Company’s
segments_ operating revenues, as well as other items where the income is passed on to
third parties.
ING U.S.
Page 64 of 69
ING U.S.
Ongoing Business Sources of Earnings Reconciliation
(in millions USD) Three Months Ended
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Investment spread and other investment income:
Net investment income and net realized gains (losses)
Retirement 388.9 380.1 384.5 347.2 388.1 Annuities 287.1 298.4 291.7 304.2 329.0 Investment Management 2.8 5.6 17.3 13.3 5.4 Individual Life 216.9 213.1 229.7 224.0 247.0 Employee Benefits 28.4 27.0 30.0 25.6 31.7
Total net investment income and net realized gains (losses) 924.1 924.2 953.2 914.3 1,001.2
Total Ongoing Business 924.1 924.2 953.2 914.3 1,001.2
Adjustments:
Interest credited (552.2) (567.1) (565.0) (575.9) (590.0) Other (8.2) (14.7) (16.4) (9.4) (25.4)
Total adjustments (560.4) (581.8) (581.4) (585.3) (615.4)
Ongoing investment spread and other investment incom 363.7 342.4 371.8 329.0 385.8
Fee based margin:
Fee income
Retirement 183.8 182.7 181.6 173.6 177.1 Annuities 9.9 10.4 9.5 8.2 7.4 Investment Management 121.7 122.6 120.1 114.1 117.9 Individual Life 276.8 282.0 262.4 288.0 283.3 Employee Benefits 15.8 15.9 15.7 15.5 15.4
Total Fee Income 608.0 613.6 589.3 599.4 601.1
Other revenue
Retirement 10.0 6.8 15.5 15.1 14.7 Annuities 2.8 2.3 2.4 4.6 3.0 Investment Management 7.4 14.3 4.8 2.8 7.3 Individual Life 7.6 7.4 6.4 10.5 2.3 Employee Benefits (1.0) (0.9) (1.0) 0.4 (2.2)
Total other revenue 26.8 29.9 28.1 33.4 25.1
Total Ongoing Business 634.8 643.5 617.4 632.8 626.2
Adjustments:
Surrender fees and MVA charges (1.5) 2.8 (5.3) (13.0) (7.2) Insurance Solutions FAS 97 fees and unearned revenue reserve amortization/unlocking (285.6) (291.0) (273.8) (292.5) (292.4) Other (4.1) (5.3) (2.3) (6.5) 4.1
Total adjustments (291.2) (293.5) (281.4) (312.0) (295.5)
Ongoing fee based margin 343.6 350.0 336.0 320.8 330.7
ING U.S.
Page 65 of 69
ING U.S.
Ongoing Business Sources of Earnings Reconciliation
(in millions USD) Three Months Ended
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Net underwriting gain (loss) and other revenue:
Premiums
Retirement 0.5 0.9 0.5 3.0 0.5
Annuities 7.8 6.3 6.1 11.7 11.8
Investment Management — — -
Individual Life 185.8 191.7 180.0 186.7 179.4
Employee Benefits 274.9 271.6 265.8 272.3 268.4
Total premiums 469.0 470.5 452.4 473.7 460.1
Interest credited and other policyholder benefits
Retirement(204.6)(212.9)(210.5)(210.4)(208.4)
Annuities(184.4)(192.3)(200.3)(219.6)(241.9)
Investment Management — — -
Individual Life(501.6)(489.1)(509.5)(531.0)(504.8)
Employee Benefits(242.6)(220.9)(214.0)(223.2)(234.0)
Total interest credited and other policyholder benefits(1,133.2)(1,115.2)(1,134.3)(1,184.2)(1,189.1)
Total Ongoing Business(664.2)(644.7)(681.9)(710.5)(729.0)
Adjustments:
Interest credited 552.2 567.1 565.0 575.9 590.0
Surrender fees and MVA charges 1.5(2.8) 5.3 13.0 7.2
Insurance Solutions FAS 97 fees and unearned revenue reserve amortization/unlocking 284.9 293.9 295.2 292.5 291.0
Sales inducements amortization and unlocking 10.1 11.7 11.3 11.0 15.7
FAS 113 and SOP 03-1 amortization and unlocking 6.4 2.3 18.6—2.8
Other(11.0)(5.4) 0.6(3.3) 2.3
Total adjustments 844.1 866.8 896.0 889.1 909.0
Ongoing net underwriting gain (loss) and other revenue 179.9 222.1 214.1 178.6 180.0
ING U.S.
Page 66 of 69
ING U.S.
Ongoing Business Sources of Earnings Reconciliation
(in millions USD) Three Months Ended
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Administrative expenses and trail commissions:
Operating and interest expense
Retirement(204.0)(204.7)(199.1)(208.0)(214.3)
Annuities(31.0)(30.4)(32.2)(31.3)(31.3)
Investment Management(101.8)(111.3)(103.1)(99.0)(97.6)
Individual Life(91.8)(102.8)(99.2)(97.4)(101.6)
Employee Benefits(60.0)(60.7)(56.7)(57.6)(61.2)
Total administrative expenses and trail commissions(488.6)(509.9)(490.3)(493.3)(506.0)
Total Ongoing Business(488.6)(509.9)(490.3)(493.3)(506.0)
Adjustments:
Other 22.2 24.6 18.4 19.1 19.2
Total adjustments 22.2 24.6 18.4 19.1 19.2
Ongoing administrative expenses and trail commissions(466.4)(485.3)(471.9)(474.2)(486.8)
DAC/VOBA and other intangibles amortization and unlocking:
Net amortization of DAC/VOBA
Retirement(36.8)(44.7)(27.1)(49.4)(33.8)
Annuities(37.9)(88.4)(44.6)(50.9)(41.6)
Investment Management — — -
Individual Life(42.9)(47.7)(16.6)(47.4)(50.6)
Employee Benefits(3.1)(3.4)(3.7)(3.9)(2.5)
Total net amortization of DAC/VOBA(120.7)(184.2)(92.0)(151.6)(128.5)
Total Ongoing Business(120.7)(184.2)(92.0)(151.6)(128.5)
Adjustments
Sales inducements amortization and unlocking(10.1)(11.7)(11.3)(11.0)(15.7)
FAS 113 and SOP 03-1 amortization and unlocking(6.4)(2.3)(18.6) -(2.8)
Unearned revenue reserve amortization and unlocking 0.7(2.9)(21.4)—1.4
Other 1.1 0.8(0.3) 0.1(0.2)
Total adjustments(14.7)(16.1)(51.6)(10.9)(17.3)
Ongoing DAC/VOBA and other intangibles amortization and unlocking(135.4)(200.3)(143.6)(162.5)(145.8)
ING U.S.
Page 67 of 69
ING U.S.
Fixed Maturity Securities—Hannover Life Re Modco Reinsurance
(in millions USD)
Total investments, after consolidation (See Portfolio Composition) , include the
following amounts related to business sold to Hannover Re through Modco
reinsurance, in which the risk associated with these policies has been transferred to
Hannover Life Re:
Balances as of
3/31/13 12/31/12 9/30/12 6/30/12 3/31/12
Fixed Maturity Securities—Hannover Life Re Modco Reinsurance
Security Sector
U.S. Government agencies and authorities 22.5 41.9 19.7 19.5 22.3
U.S. Corporate—Public 782.1 798.7 818.2 812.3 818.3
Foreign Government / Agency 3.5 2.0 2.8 2.8 2.8
Foreign Corporate—Public 144.0 144.2 129.2 121.1 121.2
State, municipalities and political subdivisions 118.3 119.4 119.8 118.8 116.0
Residential mortgaged-backed securities:
Agency 124.4 133.4 139.4 145.0 175.0
Non—Agency 1.8 2.2 2.5 2.8 3.0
Total Residential mortgage-backed securities 126.2 135.6 141.9 147.8 178.0
Commercial mortgage-backed securities 108.0 114.7 121.2 124.4 127.6
Other asset-backed securities 22.2 25.8 27.7 28.3 35.5
Total fixed maturities, including securities pledged 1,326.8 1,382.3 1,380.5 1,375.0 1,421.7
ING U.S.
Page 68 of 69
ING U.S.
Ratings
A.M. Best Fitch Standard & Poor’s Moody’s
Insurance Financial Strength Ratings
ING Life Insurance and Annuity Company A A- A- A3
ING USA Annuity & Life Insurance Company A A- A- A3
Midwestern United Life Insurance Company A- NR A- NR
ReliaStar Life Insurance Company A A- A- A3
ReliaStar Life Insurance Company of New York A A- A- A3
Security Life of Denver Insurance Company A A- A- A3
Credit Ratings
ING U.S., Inc.
Long-Term Issuer Credit bbb BBB BBB- Baa3
Long-Term Senior Unsecured Debt bbb BBB- BBB- Baa3
Commercial Paper NR F2 A-2 P-2
Lion Connecticut Holdings, Inc.
Long-Term Issuer Credit NR NR BBB- Baa3
Investor Information
Corporate Offices: Media Contact: Investor Contact:
ING U.S. Dana Ripley Darin Arita
230 Park Avenue 770-980-4865 212-309-8999
New York, New York 10169 Dana.Ripley@us.ing.com IR@us.ing.com
NYSE Ticker: Web Site:
VOYA investors.ing.us
ING U.S.
Page 69 of 69
