Exhibit 99.2
ING U.S. Quarterly Investor Supplement
December 31, 2013
This report should be read in conjunction with ING U.S Inc’s Annual Report on Form 10-K for the year ended December 31, 2013. ING U.S.’s Annual Reports on Form 10-K, and Quarterly Reports on Form 10-Q, can be accessed upon filing at the Securities and Exchange Commission’s website at www.sec.gov, and at ING U.S.’s website at investors.ing.us. All information is unaudited.
ING U.S.
Table of Contents
Page
Consolidated
Explanatory Note on Non-GAAP Financial Information 3-4
Organizational Chart 5
Key Metrics 6
Adjusted Operating Return on Capital and Return on Equity 7
Adjusted Operating Earnings Before Interest, After Income Taxes 8
Consolidated Balance Sheets 9
Consolidated Statements of Operations 10
Ongoing Business Sources of Operating Earnings 11
Consolidated Earnings Before Income Taxes 12
Operating Earnings by Segment 13-14
Operating Revenues and Operating Earnings by Segment 15
Adjusted Operating Earnings by Segment 16
DAC/VOBA Segment Trends 17
Consolidated Capital Structure 18
Consolidated Assets Under Management/Assets Under Administration 19
Retirement
Sources of Operating Earnings 21
Operating Earnings 22
Assets Under Management/Assets Under Administration 23
Assets Under Management Rollforward 24
Annuities
Sources of Operating Earnings 26
Operating Earnings 27
Assets Under Management 28
Assets Under Management Rollforward 29
Investment Management
Sources of Operating Earnings 31
Operating Earnings 32
Key Metrics 33
Account Value Rollforward by Source 34
Account Value by Asset Type 35
Individual Life
Sources of Operating Earnings 37
Operating Earnings 38
Key Metrics 39
Employee Benefits
Sources of Operating Earnings 41
Operating Earnings 42
Key Metrics 43
Corporate
Operating Earnings 45
Closed Blocks
ISP and Other Operating Earnings 47
Closed Block Variable Annuity Income (Loss) Before Income Taxes 48
Closed Block Variable Annuity Death and Living Benefits 49
Assets Under Management Rollforward 50
Investment Information
Portfolio Composition 52
Portfolio Results 53
Alternative Investment Income 54
Unrealized Gains (Losses) 55
Asset Backed Securities 56
RMBS Securities Summary 57
CMBS and Other Asset-Backed Securities Summary 58
Mortgage Loans on Real Estate 59
US and Foreign Corporate Securities 60
Exposure to European Debt- Fixed Maturities and Equity Securities 61
Additional Information
Adjustments to Operating Earnings by Segment 63
Average Capital and Financial Leverage 64
Operating Revenues by Segment 65
Ongoing Business Sources of Earnings Reconciliation 66-68
Fixed Maturity Securities—Hannover Life Re Modco Reinsurance 69
Financial Ratings 70
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ING U.S
Explanatory Note on Non-GAAP Financial Information
Operating earnings before income taxes is a financial measure we use to evaluate segment performance. Operating earnings before income taxes is a non-
GAAP financial measure and does not replace net income (loss) as the GAAP measure of our results of operations. 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 postretirement 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 and deal incentives related to the divestment of ING U.S. by ING Group.
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ING U.S
Explanatory Note on Non-GAAP Financial Information
Adjusted operating earnings is also a non-GAAP financial measure. This measure excludes from operating earnings before income taxes the following items:
DAC/VOBA and other intangibles unlocking
DAC/VOBA and other intangibles unlocking can be volatile, so excluding the effect of this can improve period to period comparability
Investment portfolio restructurings implemented in 2012
The investment portfolio restructurings in 2012 reduced the run-rate level of investment income, and we believe that such effects are not reflective of the performance of our Ongoing Business
The net gain included in operating earnings in the third and fourth quarters of 2013 from a distribution of cash and securities in conjunction with a Lehman Brothers bankruptcy settlement and the losses as a result of the decision to dispose of certain Low Income Housing Tax Credit partnerships (“LIHTC”) as a means of exiting this asset class
Interest expense related to debt in our Corporate segment
We report Ongoing Business adjusted operating ROE and adjusted operating ROC because we believe these measures are useful indicators of how effectively we use capital resources allocated to our Ongoing Business. The most directly comparable GAAP measure to adjusted operating ROE and adjusted operating ROC is return on equity. For a reconciliation of these non-GAAP measures to return on equity, see the tables that accompany the VOYA Press Release.
In addition to book value per share including accumulated other comprehensive income (AOCI), we also report book value per share excluding AOCI and shareholders’ equity excluding AOCI. Included in AOCI are investment portfolio unrealized gains or losses. In the ordinary course of business we do not plan to sell most investments for the sole purpose of realizing gains or losses, and book value per share excluding AOCI and shareholders’ equity excluding AOCI provide a measure consistent with that view.
Our Closed Block Variable Annuity segment is managed to focus on protecting regulatory and rating agency capital rather than achieving operating metrics and, therefore,we exclude its results of operations from operating earnings before income taxes. When we present the adjustments to Net Income (loss) before income taxes 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 earnings before income taxes is net income (loss) before income taxes. For a reconciliation of operating earnings before income taxes to income (loss) before income taxes, refer to the “Consolidated Earnings Before Income Taxes” page in this document. In addition, please refer to “Adjusted Operating Earnings by Segment” for a reconciliation from Total operating earnings before income taxes to Total adjusted operating earnings before income taxes.
Operating revenues is a measure of our segment revenues and a non-GAAP financial measure. We calculate operating revenues by adjusting each segment’s total revenue for the following items:
Net realized investment gains (losses) and related charges and adjustments, which include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the
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. These items are net of related amortization of unearned revenue;
Gain (loss) on change in fair value of derivatives related to guaranteed benefits, which include changes in the fair value of derivatives related to guaranteed benefits, 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 revenues, including the impacts related to changes in our nonperformance spread;
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, as well as other items where the income is passed on to third parties.
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 generating operating earnings. 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.
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.
For a reconciliation of the sources of earnings presentation to the line items within operating revenues and operating benefits and expenses, please refer to the “Ongoing Business Sources of Earnings
Reconciliation” pages in this document.
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ING U.S.
Organizational Chart
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ING U.S. Key Metrics
Three Months Ended Year-to-Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
(in millions USD, except for per share data)
Operating earnings before income taxes - Ongoing Business 352.2 484.2 306.8 285.4 228.9 1,428.6 990.9
Operating earnings before income taxes - ING U.S. 304.9 435.0 272.0 256.7 209.1 1,268.6 918.3
Net income (loss) 653.7 447.7 (85.3) (225.5) (106.9) 790.6 611.2
Net income (loss) attributable to noncontrolling interest 105.6 101.1 (3.1) (13.5) (84.2) 190.1 138.2
Net income (loss) available to ING U.S. Inc.’s common shareholders 548.1 346.6 (82.2) (212.0) (22.7) 600.5 473.0
Ongoing Business adjusted operating return on equity (1) 10.9% 10.3% 10.4% 9.5% N/A 10.3% 8.3%
Debt to Capital (Excluding AOCI) 23.5% 24.5% 26.2% 27.2% 27.3% 23.5% 27.3%
Per Share Data:
Operating earnings per share (Diluted) 0.75 1.08 0.71 0.73 0.59 3.27 2.60
Net income (loss) available to ING U.S., Inc.’s common shareholders per common
share:
Basic 2.10 1.33 (0.33) (0.92) (0.10) 2.40 2.06
Diluted 2.08 1.32 (0.33) (0.92) (0.10) 2.38 2.06
Total ING U.S. Inc. Shareholders’ Equity - Excluding AOCI 11,423.1 10,820.0 10,383.8 9,938.3 10,164.2 11,423.1 10,164.2
Book value per share (Excluding AOCI) 43.65 41.49 39.82 43.21 44.19 43.65 44.19
Weighted-average common shares outstanding (in millions)
Basic 261.1 260.8 250.3 230.0 230.0 250.6 230.0
Diluted 263.3 262.3 250.3 230.0 230.0 251.8 230.0
Ending shares outstanding (in millions) 261.7 260.8 260.8 230.0 230.0 261.7 230.0
(1) Assumes debt-to-capital ratio of 25% for all time periods presented, a weighted average pre-tax interest rate of 5.5% for all periods prior to the third quarter of 2013, when the company completed recapitalization, and the actual weighted average pre-tax interest rate for all periods starting with the third quarter of 2013.
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ING U.S.
Adjusted Operating Return on Capital and Return on Equity
Year Ended December 31, 2013
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 (1) (2) 3,822 1,810 303 2,760 362 9,057 5,066(150) 13,973
Ending Capital (2) 4,007 1,713 302 2,848 346 9,216 3,119 2,603 14,938
Average Capital (3) 3,915 1,762 303 2,804 354 9,137 4,092 1,226 14,455
Adjusted operating earnings before interest and after
income taxes 349.2 128.0 107.2 136.7 66.5 787.6—10.6 798.2
Adjusted Operating Return on Capital 8.9% 7.3% 35.4% 4.9% 18.8% 8.6%—N/M 5.5%
Adjusted Operating Return on Equity (4) 10.3%
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 (2) 4,333 2,471 275 2,545 413 10,037 3,452 311 13,800
Ending Capital (2) 4,284 1,949 303 2,858 429 9,823 3,262 888 13,973
Average Capital (3) 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
Adjusted Operating Return on Capital 7.2% 5.9% 29.8% 4.3% 16.9% 7.2%—6.6% 5.4%
Adjusted Operating Return on Equity (4) 8.3%
(1) The 1/1/13 beginning capital is different than the 12/31/12 ending capital at the segment level due to certain
reallocations of capital, primarily due to recapitalization activity.
(2) 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. shareholders’ 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. Capital excludes “operating leverage”. See “Average Capital
and Financial Leverage”.
(3) Calculated as Beginning Capital plus Ending Capital, divided by 2.
(4) Assumes debt-to-capital ratio of 25% for all time periods presented, a weighted average pre-tax interest rate of
5.5% for all periods prior to the third quarter of 2013, when the company completed recapitalization, and the actual
weighted average pre-tax interest rate for all periods starting with the third quarter of 2013.
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ING U.S.
Adjusted Operating Earnings Before Interest, After Income Taxes
Year Ended December 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 595.8 293.8 178.1 254.8 106.1 1,428.6 -(160.0) 1,268.6
Less:
Interest expense — — — -(179.7)(179.7)
DAC/VOBA and other intangibles unlocking (1) 45.6 83.3—4.8(0.5) 133.2 — 133.2
Net gain from Lehman Recovery/LIHTC (2) 12.9 13.5 13.2 39.7 4.3 83.6—3.4 87.0
Adjusted operating earnings before interest 537.3 197.0 164.9 210.3 102.3 1,211.8—16.3 1,228.1
Income tax expense (4) 188.1 69.0 57.7 73.6 35.8 424.2—5.7 429.9
Adjusted operating earnings before interest and
after income taxes 349.2 128.0 107.2 136.7 66.5 787.6—10.6 798.2
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 (3)(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 (4) 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) DAC/VOBA and other intangibles unlocking excludes unlocking on net investment income from
Lehman Recovery/LIHTC, as described below
(2) Includes the net gain included in operating earnings from a distribution of cash and securities in
conjunction with a Lehman Brothers bankruptcy settlement and the losses as a result of the decision to
dispose of certain Low Income Housing Tax Credit partnerships (“LIHTC”) as a means of exiting this
asset class. Collectively these items, net of DAC/VOBA and other intangibles impacts, are referred to
as “Net gain from Lehman Recovery/LIHTC”.
(3) 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.
(4) Based on an assumed effective tax rate of 35%.
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ING U.S.
Consolidated Balance Sheets
Balances as of
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
Assets
Total investments 87,050.8 89,007.3 89,504.8 92,213.8 95,487.6
Cash and cash equivalents 2,840.8 1,716.6 1,549.8 2,787.7 1,786.8
Assets held in separate accounts 106,827.1 103,853.6 102,228.9 103,098.3 97,667.4
Reinsurance recoverable 6,702.2 6,755.6 7,053.0 7,151.0 7,379.3
Short term investments under securities loan agreement and
accrued investment income 1,450.0 1,395.6 1,322.2 1,764.3 1,527.5
Deferred policy acquisition costs, Value of business acquired 5,351.6 5,265.0 5,060.5 4,019.6 3,656.3
Goodwill and other intangible assets 323.7 323.4 333.0 341.8 348.5
Other assets (1) 1,477.6 1,416.6 1,548.3 1,363.7 1,575.2
Assets related to consolidated investment entities 8,999.4 7,924.5 8,523.0 8,109.8 6,965.6
Total Assets 221,023.2 217,658.2 217,123.5 220,850.0 216,394.2
Liabilities
Future policy benefits and contract owner account balances 84,006.7 84,887.9 85,561.9 85,875.1 86,055.7
Liabilities related to separate accounts 106,827.1 103,853.6 102,228.9 103,098.3 97,667.4
Funds held under reinsurance agreements 1,181.5 1,212.1 1,281.6 1,170.8 1,236.6
Payables under securities loan agreements, including collateral held 769.4 576.7 470.6 1,348.8 1,509.8
Short-term debt - - 138.6 321.2 1,064.6
Long-term debt 3,514.7 3,514.5 3,265.7 3,440.8 3,171.1
Other liabilities (2) 3,144.9 3,598.9 3,796.5 4,743.3 5,506.0
Liabilities related to consolidated investment entities 6,064.9 5,150.0 5,732.6 5,252.8 4,121.8
Total Liabilities 205,509.2 202,793.7 202,476.4 205,251.1 200,333.0
Shareholders’ Equity
Common stock 2.6 2.6 2.6 2.3 2.3
Additional paid-in capital 23,563.7 23,524.7 23,498.7 22,909.9 22,917.6
Retained earnings (deficit) (12,143.2) (12,707.3) (13,117.5) (12,973.9) (12,755.7)
Total ING U.S. Inc. Shareholders’ Equity - Excluding AOCI 11,423.1 10,820.0 10,383.8 9,938.3 10,164.2
Accumulated other comprehensive income 1,849.1 1,950.0 2,087.8 3,452.8 3,710.7
Total ING U.S. Inc. Shareholders’ Equity 13,272.2 12,770.0 12,471.6 13,391.1 13,874.9
Noncontrolling interest 2,241.8 2,094.5 2,175.5 2,207.8 2,186.3
Total Shareholders’ Equity 15,514.0 14,864.5 14,647.1 15,598.9 16,061.2
Total Liabilities and Shareholders’ Equity 221,023.2 217,658.2 217,123.5 220,850.0 216,394.2
(1) Includes Other assets, Sales inducements to contract holders, and
Deferred income taxes
(2) Includes Other liabilities, Derivatives, Pension and other postretirement
provisions, Current income taxes, and Deferred income taxes
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ING U.S.
Consolidated Statements of Operations
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Revenues
Net investment income 1,156.5 1,221.6 1,112.2 1,198.7 1,055.4 4,689.0 4,697.9
Fee income 943.9 920.8 909.7 891.9 890.6 3,666.3 3,515.4
Premiums 515.4 494.2 474.8 471.9 471.2 1,956.3 1,861.1
Net realized capital gains (losses)(577.0)(517.1)(565.9)(874.8)(384.2)(2,534.8)(1,280.8)
Income (loss) related to consolidated investment entities 213.5 196.2 103.7 35.3 79.0 548.7 443.2
Other revenues 111.7 119.6 106.1 95.6 91.8 433.0 378.5
Total revenues 2,364.0 2,435.3 2,140.6 1,818.6 2,203.8 8,758.5 9,615.3
Benefits and expenses
Interest credited and other benefits to contract owners/policyholders(1,118.8)(1,087.7)(1,229.9)(1,061.4)(1,225.3)(4,497.8)(4,861.6)
Operating expenses(394.6)(762.8)(770.2)(759.1)(824.1)(2,686.7)(3,155.0)
Net amortization of DAC/VOBA(123.2)(64.6)(124.5)(130.5)(182.4)(442.8)(722.3)
Interest expense(48.2)(48.4)(43.8)(44.4)(44.7)(184.8)(153.7)
Operating expenses related to consolidated investment entities(51.6)(51.8)(47.4)(37.5)(35.4)(188.3)(116.7)
Total benefits and expenses(1,736.4)(2,015.3)(2,215.8)(2,032.9)(2,311.9)(8,000.4)(9,009.3)
Income (loss) before income taxes 627.6 420.0(75.2)(214.3)(108.1) 758.1 606.0
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ING U.S.
Ongoing Business Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Sources of operating earnings before income
taxes:
Investment spread and other investment income 384.7 437.4 361.0 363.7 342.4 1,546.8 1,429.0
Fee based margin 388.7 369.7 364.2 343.6 350.0 1,466.2 1,337.5
Net underwriting gain (loss) and other revenue 180.7 198.9 204.1 179.9 222.1 763.6 794.8
Administrative expenses(422.4)(404.3)(416.1)(400.3)(422.0)(1,643.1)(1,669.2)
Trail commissions(68.1)(63.8)(66.0)(66.1)(63.3)(264.0)(249.0)
DAC/VOBA and other intangibles amortization,
excluding unlocking(136.1)(178.2)(144.0)(142.7)(151.6)(601.0)(575.2)
DAC/VOBA and other intangibles unlocking 24.7 124.5 3.6 7.3(48.7) 160.1(77.0)
Operating earnings before income taxes 352.2 484.2 306.8 285.4 228.9 1,428.6 990.9
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ING U.S.
Consolidated Earnings Before Income Taxes
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Operating revenues
Net investment income and net realized gains (losses) 1,005.8 1,054.4 962.0 985.6 978.6 4,007.8 4,020.9
Fee income 644.1 632.1 628.3 608.0 613.7 2,512.5 2,403.6
Premiums 473.3 453.5 473.3 470.5 472.0 1,870.6 1,864.1
Other revenue 40.2 38.9 33.9 26.4 31.3 139.4 117.8
Total operating revenues 2,163.4 2,178.9 2,097.5 2,090.5 2,095.6 8,530.3 8,406.4
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(1,166.3)(1,111.9)(1,126.8)(1,151.8)(1,126.3)(4,556.8)(4,680.0)
Operating expenses(547.6)(523.8)(532.5)(517.4)(533.0)(2,121.3)(2,095.0)
Net amortization of DAC/VOBA(96.8)(60.0)(122.7)(120.9)(184.2)(400.4)(563.4)
Interest expense(47.8)(48.2)(43.5)(43.7)(43.0)(183.2)(149.7)
Total operating benefits and expenses(1,858.5)(1,743.9)(1,825.5)(1,833.8)(1,886.5)(7,261.7)(7,488.1)
Operating earnings before income taxes 304.9 435.0 272.0 256.7 209.1 1,268.6 918.3
Adjustments:
Closed Block Variable Annuity(226.4)(167.4)(338.4)(477.1)(167.3)(1,209.3)(692.3)
Net investment gains (losses) and related charges and adjustments 105.4 64.1 0.8 41.8 54.7 212.1 455.5
Net guaranteed benefit hedging gains (losses) and related charges and adjustments(26.6) 10.5 32.4 3.1(16.7) 19.4 97.2
Income (loss) related to businesses exited through reinsurance or divestment(12.8)(13.1)(17.0)(16.9)(11.7)(59.8)(45.8)
Income (loss) attributable to noncontrolling interests 105.6 101.1(3.1)(13.5)(84.2) 190.1 138.2
Immediate recognition of net actuarial gains (losses) related to pension and other
postretirement benefit obligations and gains (losses) from plan amendments and
curtailments 405.2 — -(56.6) 405.2(165.0)
Other adjustments to operating earnings*(27.7)(10.2)(21.9)(8.4)(35.4)(68.2)(100.1)
Total non-operating 322.7(15.0)(347.2)(471.0)(317.2)(510.5)(312.3)
Income (loss) before income taxes 627.6 420.0(75.2)(214.3)(108.1) 758.1 606.0
* Other adjustments to operating earnings above includes:
Restructuring expenses (severance, lease write-offs, etc.), integration expenses related to the
Company’s acquisition of CitiStreet and certain third-party expenses and deal incentives related to the
divestment of ING U.S. by ING Group
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ING U.S.
Operating Earnings by Segment
(in millions USD) Three Months Ended December 31, 2013
Retirement Solutions Investment Insurance Solutions
Operating revenues Retirement Annuities Management Individual Life Employee Benefits Ongoing Business Corporate Closed Blocks Consolidated
Net investment income and net realized gains (losses) 397.4 283.4 11.7 224.5 29.2 946.2 33.0 26.6 1,005.8
Fee income 196.1 12.2 141.4 278.5 15.9 644.1 — 644.1
Premiums 0.7 14.4—185.3 272.4 472.8—0.5 473.3
Other revenue 18.2 3.9 14.0 4.6(1.0) 39.7 0.6(0.1) 40.2
Total operating revenues 612.4 313.9 167.1 692.9 316.5 2,102.8 33.6 27.0 2,163.4
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(218.2)(180.4) -(518.8)(223.9)(1,141.3) 0.2(25.2)(1,166.3)
Operating expenses(220.1)(32.1)(114.2)(88.9)(57.1)(512.4)(30.2)(5.0)(547.6)
Net amortization of DAC/VOBA(35.5)(18.2) -(38.2)(5.0)(96.9) 0.2(0.1)(96.8)
Interest expense — — —(47.8) -(47.8)
Total operating benefits and expenses(473.8)(230.7)(114.2)(645.9)(286.0)(1,750.6)(77.6)(30.3)(1,858.5)
Operating earnings before income taxes 138.6 83.2 52.9 47.0 30.5 352.2(44.0)(3.3) 304.9
Three Months Ended December 31, 2012
Retirement Solutions Investment Insurance Solutions
Operating revenues Retirement Annuities Management Individual Life Employee Benefits Ongoing Business Corporate Closed Blocks Consolidated
Net investment income and net realized gains (losses) 380.1 298.4 5.6 213.1 27.0 924.2 19.8 34.6 978.6
Fee income 182.7 10.4 122.6 282.0 15.9 613.6—0.1 613.7
Premiums 0.9 6.3—191.7 271.6 470.5—1.5 472.0
Other revenue 6.8 2.3 14.3 7.4(0.9) 29.9(0.6) 2.0 31.3
Total operating revenues 570.5 317.4 142.5 694.2 313.6 2,038.2 19.2 38.2 2,095.6
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(212.9)(192.3) -(489.1)(220.9)(1,115.2)(1.8)(9.3)(1,126.3)
Operating expenses(204.6)(30.3)(111.3)(101.0)(60.7)(507.9)(20.3)(4.8)(533.0)
Net amortization of DAC/VOBA(44.7)(88.4) -(47.7)(3.4)(184.2) 0.2(0.2)(184.2)
Interest expense(0.1)(0.1) -(1.8) -(2.0)(40.9)(0.1)(43.0)
Total operating benefits and expenses(462.3)(311.1)(111.3)(639.6)(285.0)(1,809.3)(62.8)(14.4)(1,886.5)
Operating earnings before income taxes 108.2 6.3 31.2 54.6 28.6 228.9(43.6) 23.8 209.1
Page 13 of 70
ING U.S.
Operating Earnings by Segment
(in millions USD) Year Ended December 31, 2013
Retirement Solutions Investment Insurance Solutions
Operating revenues Retirement Annuities Management Individual Life Employee Benefits Ongoing Business Corporate Closed Blocks Consolidated
Net investment income and net realized gains (losses) 1,569.6 1,149.9 37.0 915.5 117.6 3,789.6 85.7 132.5 4,007.8
Fee income 759.9 45.1 530.8 1,113.7 63.0 2,512.5 — 2,512.5
Premiums 5.7 36.4—737.9 1,085.9 1,865.9—4.7 1,870.6
Other revenue 64.2 13.2 39.9 24.8(4.0) 138.1 1.7(0.4) 139.4
Total operating revenues 2,399.4 1,244.6 607.7 2,791.9 1,262.5 8,306.1 87.4 136.8 8,530.3
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(848.4)(730.9) -(2,001.5)(903.4)(4,484.2)(10.6)(62.0)(4,556.8)
Operating expenses(839.9)(127.0)(429.6)(358.3)(236.1)(1,990.9)(106.6)(23.8)(2,121.3)
Net amortization of DAC/VOBA(115.3)(92.9) -(176.2)(16.9)(401.3) 1.3(0.4)(400.4)
Interest expense — -(1.1) -(1.1)(182.1) -(183.2)
Total operating benefits and expenses(1,803.6)(950.8)(429.6)(2,537.1)(1,156.4)(6,877.5)(298.0)(86.2)(7,261.7)
Operating earnings before income taxes 595.8 293.8 178.1 254.8 106.1 1,428.6(210.6) 50.6 1,268.6
Year Ended December 31, 2012
Retirement Solutions Investment Insurance Solutions
Operating revenues Retirement Annuities Management Individual Life Employee Benefits Ongoing Business Corporate Closed Blocks Consolidated
Net investment income and net realized gains (losses) 1,499.9 1,223.3 41.6 913.8 114.3 3,792.9 66.7 161.3 4,020.9
Fee income 715.0 35.5 474.7 1,115.7 62.5 2,403.4—0.2 2,403.6
Premiums 4.9 35.9—737.8 1,078.1 1,856.7—7.4 1,864.1
Other revenue 52.1 12.3 29.2 26.6(3.7) 116.5(0.8) 2.1 117.8
Total operating revenues 2,271.9 1,307.0 545.5 2,793.9 1,251.2 8,169.5 65.9 171.0 8,406.4
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(842.2)(854.1) -(2,034.4)(892.1)(4,622.8) 6.5(63.7)(4,680.0)
Operating expenses(824.9)(124.7)(411.0)(390.5)(236.2)(1,987.3)(112.6) 4.9(2,095.0)
Net amortization of DAC/VOBA(155.0)(225.5) -(162.3)(13.5)(556.3)(6.5)(0.6)(563.4)
Interest expense(1.2)(0.5) -(10.5) -(12.2)(135.6)(1.9)(149.7)
Total operating benefits and expenses(1,823.3)(1,204.8)(411.0)(2,597.7)(1,141.8)(7,178.6)(248.2)(61.3)(7,488.1)
Operating earnings before income taxes 448.6 102.2 134.5 196.2 109.4 990.9(182.3) 109.7 918.3
Page 14 of 70
ING U.S.
Operating Revenues and Operating Earnings by Segment
(in millions USD) Three Months Ended Year-to-Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Operating Revenues
Retirement 612.4 606.9 596.9 583.2 570.5 2,399.4 2,271.9
Annuities 313.9 319.1 304.0 307.6 317.4 1,244.6 1,307.0
Total Retirement Solutions 926.3 926.0 900.9 890.8 887.9 3,644.0 3,578.9
Investment Management 167.1 160.1 148.6 131.9 142.5 607.7 545.5
Individual Life 692.9 717.1 694.8 687.1 694.2 2,791.9 2,793.9
Employee Benefits 316.5 316.2 311.7 318.1 313.6 1,262.5 1,251.2
Total Insurance Solutions 1,009.4 1,033.3 1,006.5 1,005.2 1,007.8 4,054.4 4,045.1
Ongoing Business 2,102.8 2,119.4 2,056.0 2,027.9 2,038.2 8,306.1 8,169.5
Corporate 33.6 28.8 7.9 17.1 19.2 87.4 65.9
Total Closed Blocks 27.0 30.7 33.6 45.5 38.2 136.8 171.0
Total operating revenues 2,163.4 2,178.9 2,097.5 2,090.5 2,095.6 8,530.3 8,406.4
Operating Earnings
Retirement 138.6 187.3 132.1 137.8 108.2 595.8 448.6
Annuities 83.2 96.8 59.5 54.3 6.3 293.8 102.2
Total Retirement Solutions 221.8 284.1 191.6 192.1 114.5 889.6 550.8
Investment Management 52.9 54.0 41.1 30.1 31.2 178.1 134.5
Individual Life 47.0 117.0 40.0 50.8 54.6 254.8 196.2
Employee Benefits 30.5 29.1 34.1 12.4 28.6 106.1 109.4
Total Insurance Solutions 77.5 146.1 74.1 63.2 83.2 360.9 305.6
Ongoing Business 352.2 484.2 306.8 285.4 228.9 1,428.6 990.9
Corporate(44.0)(63.7)(52.8)(50.1)(43.6)(210.6)(182.3)
Total Closed Blocks(3.3) 14.5 18.0 21.4 23.8 50.6 109.7
Total operating earnings before income taxes 304.9 435.0 272.0 256.7 209.1 1,268.6 918.3
Closed Block Variable Annuity(226.4)(167.4)(338.4)(477.1)(167.3)(1,209.3)(692.3)
Net investment gains (losses) and related charges and adjustments 105.4 64.1 0.8 41.8 54.7 212.1 455.5
Net guaranteed benefit hedging gains (losses) and related charges and adjustments(26.6) 10.5 32.4 3.1(16.7) 19.4 97.2
Immediate recognition of net actuarial gains (losses) related to pension and other
postretirement benefit obligations and gains (losses) from plan amendments and
curtailments 405.2 — -(56.6) 405.2(165.0)
Other non-operating* 65.1 77.8(42.0)(38.8)(131.3) 62.1(7.7)
Total adjustments 322.7(15.0)(347.2)(471.0)(317.2)(510.5)(312.3)
Income (loss) before income taxes 627.6 420.0(75.2)(214.3)(108.1) 758.1 606.0
Less: Income tax expense (benefit)(26.1)(27.7) 10.1 11.2(1.2)(32.5)(5.2)
Net income (loss) 653.7 447.7(85.3)(225.5)(106.9) 790.6 611.2
Net income (loss) attributable to noncontrolling interest 105.6 101.1(3.1)(13.5)(84.2) 190.1 138.2
Net income (loss) available to ING U.S. Inc.‘s common shareholders 548.1 346.6(82.2)(212.0)(22.7) 600.5 473.0
* Other non-operating above includes:
Income (loss) related to businesses exited through reinsurance or divestment; income (loss) attributable to non-
controlling interests; 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 and deal
incentives related to the divestment of ING U.S. by ING Group
Page 15 of 70
ING U.S.
Adjusted Operating Earnings by Segment
(in millions USD) Three Months Ended Year-to-Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Operating Earnings
Retirement 138.6 187.3 132.1 137.8 108.2 595.8 448.6
Annuities 83.2 96.8 59.5 54.3 6.3 293.8 102.2
Total Retirement Solutions 221.8 284.1 191.6 192.1 114.5 889.6 550.8
Investment Management 52.9 54.0 41.1 30.1 31.2 178.1 134.5
Individual Life 47.0 117.0 40.0 50.8 54.6 254.8 196.2
Employee Benefits 30.5 29.1 34.1 12.4 28.6 106.1 109.4
Total Insurance Solutions 77.5 146.1 74.1 63.2 83.2 360.9 305.6
Ongoing Business 352.2 484.2 306.8 285.4 228.9 1,428.6 990.9
Corporate(44.0)(63.7)(52.8)(50.1)(43.6)(210.6)(182.3)
Total Closed Blocks(3.3) 14.5 18.0 21.4 23.8 50.6 109.7
Total operating earnings before income taxes 304.9 435.0 272.0 256.7 209.1 1,268.6 918.3
Adjustments to operating earnings
Retirement 4.2 52.7(1.4) 3.0(8.9) 58.5(25.5)
Annuities 27.6 52.3 9.9 7.0(44.4) 96.8(97.4)
Total Retirement Solutions 31.8 105.0 8.5 10.0(53.3) 155.3(122.9)
Investment Management 1.7 11.5 ——13.2 2.2
Individual Life(4.7) 56.8(4.9)(2.7) 4.6 44.5 18.2
Employee Benefits(0.2) 4.0 ——3.8 0.1
Total Insurance Solutions(4.9) 60.8(4.9)(2.7) 4.6 48.3 18.3
Ongoing Business 28.6 177.3 3.6 7.3(48.7) 216.8(102.4)
Corporate(43.8)(47.6)(43.2)(41.9)(39.2)(176.5)(127.8)
Total Closed Blocks(0.4) 0.6 ——0.2(5.8)
Total adjustments to operating earnings(15.6) 130.3(39.6)(34.6)(87.9) 40.5(236.0)
Adjusted Operating Earnings
Retirement 134.4 134.6 133.5 134.8 117.1 537.3 474.0
Annuities 55.6 44.5 49.6 47.3 50.7 197.0 199.6
Total Retirement Solutions 190.0 179.1 183.1 182.1 167.8 734.3 673.6
Investment Management 51.2 42.5 41.1 30.1 31.2 164.9 132.3
Individual Life 51.7 60.2 44.9 53.5 50.0 210.3 178.0
Employee Benefits 30.7 25.1 34.1 12.4 28.6 102.3 109.3
Total Insurance Solutions 82.4 85.3 79.0 65.9 78.6 312.6 287.3
Ongoing Business 323.6 306.9 303.2 278.1 277.6 1,211.8 1,093.2
Corporate(0.2)(16.1)(9.6)(8.2)(4.4)(34.1)(54.5)
Total Closed Blocks(2.9) 13.9 18.0 21.4 23.8 50.4 115.5
Total adjusted operating earnings before interest and income taxes 320.5 304.7 311.6 291.3 297.0 1,228.1 1,154.2
Page 16 of 70
ING U.S.
DAC/VOBA Segment Trends
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Retirement
Balance as of beginning-of-period 1,381.4 1,278.3 843.1 712.4 667.6 712.4 987.2
Deferrals of commissions and expenses 27.0 25.5 25.8 28.3 34.6 106.6 128.0
Amortization(53.6)(44.7)(23.5)(42.3)(43.3)(164.1)(245.8)
Unlocking 19.0 66.0 14.0 19.1 10.1 118.1 85.7
Change in unrealized capital gains/losses 41.5 56.3 418.9 125.6 43.4 642.3(242.7)
Balance as of End-of-Period 1,415.3 1,381.4 1,278.3 843.1 712.4 1,415.3 712.4
Annuities
Balance as of beginning-of-period 560.5 518.6 292.4 260.7 295.8 260.7 606.6
Deferrals of commissions and expenses 27.8 23.5 20.8 17.4 22.2 89.5 97.0
Amortization(38.3)(55.8)(60.3)(54.5)(39.4)(208.9)(194.2)
Unlocking 16.6 45.3 17.9 13.5(42.6) 93.3(74.8)
Change in unrealized capital gains/losses 25.0 28.9 247.8 55.3 24.7 357.0(173.9)
Balance as of End-of-Period 591.7 560.5 518.6 292.4 260.7 591.7 260.7
Individual Life
Balance as of beginning-of-period 2,717.4 2,638.2 2,247.2 2,127.6 2,067.4 2,127.6 2,067.8
Deferrals of commissions and expenses 36.8 39.8 50.1 52.8 69.6 179.5 345.0
Amortization(46.6)(71.8)(50.6)(48.4)(57.8)(217.4)(291.6)
Unlocking 0.5 22.4 0.1 2.4 9.5 25.4 80.3
Change in unrealized capital gains/losses 44.8 88.8 391.4 112.8 38.8 637.8(73.9)
Balance as of End-of-Period 2,752.9 2,717.4 2,638.2 2,247.2 2,127.6 2,752.9 2,127.6
Other (1)
Balance as of beginning-of-period 104.0 105.7 104.1 102.6 100.6 102.6 104.3
Deferrals of commissions and expenses 5.0 4.6 6.1 5.5 5.4 21.2 21.8
Amortization(3.0)(6.3)(6.8)(3.3)(4.3)(19.4)(23.5)
Unlocking(2.4) — —(2.4) -
Change in unrealized capital gains/losses(0.9)—2.3(0.7) 0.7 0.7(0.1)
Balance as of End-of-Period 102.7 104.0 105.7 104.1 102.6 102.7 102.6
Closed Block Variable Annuity
Balance as of beginning-of-period 501.7 519.7 532.8 453.0 492.3 453.0 586.4
Deferrals of commissions and expenses 2.7 1.8 4.3 3.9 4.0 12.7 15.8
Amortization(17.0)(15.4)(15.5)(14.8)(14.8)(62.7)(60.1)
Unlocking 1.6(4.3)(1.8)(0.2) 0.2(4.7) 1.7
Change in unrealized capital gains/losses -(0.1)(0.1) 90.9(28.7) 90.7(90.7)
Balance as of End-of-Period 489.0 501.7 519.7 532.8 453.0 489.0 453.0
Total US
Balance as of beginning-of-period 5,265.0 5,060.5 4,019.6 3,656.3 3,623.8 3,656.3 4,352.3
Deferrals of commissions and expenses 99.3 95.2 107.1 107.9 135.8 409.5 607.6
Amortization(158.5)(194.0)(156.7)(163.3)(159.6)(672.5)(815.2)
Unlocking 35.3 129.4 30.2 34.8(22.8) 229.7 92.9
Change in unrealized capital gains/losses 110.5 173.9 1,060.3 383.9 78.9 1,728.6(581.3)
Balance as of End-of-Period 5,351.6 5,265.0 5,060.5 4,019.6 3,656.3 5,351.6 3,656.3
(1) Employee Benefits, Asset Management, Other Closed Blocks
Page 17 of 70
ING U.S.
Consolidated Capital Structure
Balances as of
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
Financial Debt
Commercial paper ——4.0 192.0
Senior bonds 2,746.0 2,745.8 2,485.5 2,485.1 1,486.4
Subordinated bonds 763.8 763.8 763.9 13.9 13.9
Loans from ING Verzekeringen N.V. — 150.0 500.0 500.0
Loans from consolidated subs — 279.0 274.4 261.1
Bank term loan ——425.0 1,350.0
Other debt 4.9 4.9 4.9 4.9 4.9
Total Debt 3,514.7 3,514.5 3,683.3 3,707.3 3,808.3
Equity
Total common equity 11,423.1 10,820.0 10,383.8 9,938.3 10,164.2
Accumulated other comprehensive income (AOCI) 1,849.1 1,950.0 2,087.8 3,452.8 3,710.7
Total ING U.S. Inc. Shareholders’ Equity 13,272.2 12,770.0 12,471.6 13,391.1 13,874.9
Total Equity (Excluding AOCI) 11,423.1 10,820.0 10,383.8 9,938.3 10,164.2
Capital
Total Capitalization 16,786.9 16,284.5 16,154.9 17,098.4 17,683.2
Total Capitalization (Excluding AOCI) 14,937.8 14,334.5 14,067.1 13,645.6 13,972.5
Debt to Capital
Debt to Capital 20.9% 21.6% 22.8% 21.7% 21.5%
Debt to Capital (Excluding AOCI) 23.5% 24.5% 26.2% 27.2% 27.3%
Page 18 of 70
ING U.S.
Consolidated Assets Under Management/Assets Under Administration
(in millions USD)
Total
Institutional/ AUM—Assets Under AUA—Assets Under
Balances as of December 31, 2013 General Account Separate Account Mutual Funds Management Administration Total AUM + AUA
Retirement (1) 28,169.2 57,654.0 19,413.7 105,236.9 237,777.1 343,014.0
Annuities (2) 22,432.2 829.6 3,384.9 26,646.7—26,646.7
Retirement Solutions 50,601.4 58,483.6 22,798.6 131,883.6 237,777.1 369,660.7
Investment Management 78,988.8 45,061.2 75,236.0 199,286.0 58,462.8 257,748.8
Insurance
Individual Life (3) 13,271.3 2,724.3—15,995.6—15,995.6
Employee Benefits 1,739.2 15.9—1,755.1—1,755.1
Insurance Solutions 15,010.5 2,740.2—17,750.7—17,750.7
Eliminations(70,297.8)(43,727.8)(9,508.6)(123,534.2)(60,054.0)(183,588.2)
Total Ongoing Business 74,302.9 62,557.2 88,526.0 225,386.1 236,185.9 461,572.0
Closed Block Variable Annuity 1,429.1 44,269.9—45,699.0—45,699.0
Closed Block Institutional Spread Products 2,711.6 — 2,711.6—2,711.6
Closed Block Other 545.2 — 545.2—545.2
Total AUM and AUA 78,988.8 106,827.1 88,526.0 274,341.9 236,185.9 510,527.8
(1) Retirement AUM include wrapped funds as well as unwrapped IIM-managed funds
(2) Annuities AUM includes Payout annuities
(3) Individual Life AUM includes assets backing interest and non-interest sensitive products
Page 19 of 70
ING U.S. Retirement
Page 20 of 70
ING U.S.
Retirement Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Sources of operating earnings before income taxes:
Investment spread and other investment income (1) 181.4 181.3 179.5 183.3 169.1 725.5 673.5
Fee based margin 215.0 209.7 205.5 199.0 198.0 829.2 776.0
Net underwriting gain (loss) and other revenue(2.3) 0.4(3.0)(6.0)(10.5)(10.9)(24.0)
Administrative expenses(181.8)(171.8)(174.6)(170.0)(170.8)(698.2)(695.5)
Trail commissions(35.3)(31.4)(31.9)(29.9)(31.1)(128.5)(116.1)
DAC/VOBA and other intangibles amortization, excluding
unlocking (1)(42.8)(45.2)(42.0)(41.6)(37.6)(171.6)(171.1)
DAC/VOBA and other intangibles unlocking (1) 4.4 44.3(1.4) 3.0(8.9) 50.3 5.8
Operating earnings before income taxes 138.6 187.3 132.1 137.8 108.2 595.8 448.6
Gross investment income
Fixed income 364.1 356.9 364.7 356.3 370.7 1,442.0 1,444.3
Limited partnership income 2.8(0.1) 1.9 2.3(2.0) 6.9 3.4
Prepayment fee income 9.1 2.9 7.9 10.2 1.1 30.1 17.7
Total gross investment income 376.0 359.7 374.5 368.8 369.8 1,479.0 1,465.4
Investment expenses(14.9)(14.1)(14.7)(14.2)(14.7)(57.9)(54.9)
Credited interest(210.0)(207.5)(203.6)(199.9)(204.7)(821.0)(800.1)
Net margin 151.1 138.1 156.2 154.7 150.5 600.1 610.4
Other investment income(1) (2) 30.3 43.2 23.3 28.6 18.5 125.4 63.1
Investment spread and other investment income 181.4 181.3 179.5 183.3 169.1 725.5 673.5
Fee based margin
Fee based margin—excluding Recordkeeping 157.3 152.6 145.3 139.2 135.6 594.4 530.8
Fee based margin—Recordkeeping 57.7 57.1 60.3 59.8 62.2 234.9 245.2
Fee based margin 215.0 209.7 205.5 199.0 198.0 829.2 776.0
Recordkeeping
Revenue 57.7 57.1 60.3 59.8 62.2 234.9 245.2
Expenses(54.6)(53.0)(53.7)(53.1)(56.0)(214.4)(227.9)
Operating earnings—Recordkeeping 3.1 4.1 6.6 6.7 6.2 20.5 17.3
(1) The three months ended 9/30/13 and 12/31/13 include $14.8 million and $0.4 million of net investment income, $(6.4) million and $(0.6)
million of DAC/VOBA and other intangibles amortization, and $4.3 million and $0.4 million of DAC/VOBA and other intangibles unlocking from
Lehman Recovery/LIHTC, respectively.
(2) Includes investment income on assets backing surplus that has been allocated from the corporate segment and income from policy loans
Page 21 of 70
ING U.S.
Retirement Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Operating revenues
Net investment income and net realized gains (losses) 397.4 394.5 388.8 388.9 380.1 1,569.6 1,499.9
Fee income 196.1 191.0 189.0 183.8 182.7 759.9 715.0
Premiums 0.7 0.7 3.8 0.5 0.9 5.7 4.9
Other revenue 18.2 20.7 15.3 10.0 6.8 64.2 52.1
Total operating revenues 612.4 606.9 596.9 583.2 570.5 2,399.4 2,271.9
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(218.2)(213.5)(212.1)(204.6)(212.9)(848.4)(842.2)
Operating expenses(220.1)(205.8)(210.0)(204.0)(204.6)(839.9)(824.9)
Net amortization of DAC/VOBA(35.5)(0.3)(42.7)(36.8)(44.7)(115.3)(155.0)
Interest expense — —(0.1) -(1.2)
Total operating benefits and expenses(473.8)(419.6)(464.8)(445.4)(462.3)(1,803.6)(1,823.3)
Operating earnings before income taxes 138.6 187.3 132.1 137.8 108.2 595.8 448.6
Page 22 of 70
ING U.S.
Retirement AUM/AUA
Balances as of
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
Assets under management by product group
Corporate markets 40,123.7 37,677.7 35,916.3 35,441.2 33,265.9
Tax-exempt markets 53,200.5 51,183.9 49,451.5 49,269.4 46,986.1
Total full service plans 93,324.2 88,861.6 85,367.8 84,710.6 80,252.0
Stable value 8,914.3 8,705.0 8,406.9 8,279.7 7,792.1
Individual markets 2,998.4 2,850.5 2,702.4 2,612.0 2,427.1
Total AUM 105,236.9 100,417.1 96,477.1 95,602.3 90,471.2
AUA 237,777.1 227,841.9 220,739.5 223,034.6 213,675.5
Total AUM and AUA 343,014.0 328,259.0 317,216.6 318,636.9 304,146.7
Assets under management by fund group
General account 28,169.2 28,088.3 27,700.9 27,387.8 27,222.6
Guaranteed separate account 8,120.0 8,092.5 8,027.0 8,287.8 8,273.9
Non-guaranteed separate account 49,534.0 46,840.4 44,582.7 44,229.0 41,151.5
Mutual Funds/Institutional Funds 19,413.7 17,395.9 16,166.5 15,697.7 13,823.2
Total AUM 105,236.9 100,417.1 96,477.1 95,602.3 90,471.2
AUA 237,777.1 227,841.9 220,739.5 223,034.6 213,675.5
Total AUM and AUA 343,014.0 328,259.0 317,216.6 318,636.9 304,146.7
Page 23 of 70
ING U.S.
Retirement AUM Rollforward
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Full service—Corporate markets
Assets under management, beginning of period 37,677.7 35,916.3 35,441.2 33,265.9 32,609.4 33,265.9 29,134.4
Transfer/Single deposits 1,251.5 688.2 648.9 1,085.7 1,118.8 3,674.3 2,877.3
Recurring deposits 845.1 883.5 918.4 1,021.7 781.0 3,668.7 3,464.3
Deposits 2,096.6 1,571.7 1,567.3 2,107.4 1,899.8 7,343.0 6,341.6
Surrenders, benefits, and product charges(1,839.9)(1,645.3)(1,309.7)(1,728.5)(1,698.3)(6,523.4)(5,601.1)
Net Flows 256.7(73.6) 257.6 378.9 201.5 819.6 740.5
Interest credited and investment performance 2,189.3 1,835.0 217.5 1,796.4 455.0 6,038.2 3,391.0
Assets under management, end of period 40,123.7 37,677.7 35,916.3 35,441.2 33,265.9 40,123.7 33,265.9
Full service—Tax-exempt markets
Assets under management, beginning of period 51,183.9 49,451.5 49,269.4 46,986.1 46,226.6 46,986.1 42,691.3
Transfer/Single deposits 271.2 335.0 356.0 642.0 410.5 1,604.2 1,358.2
Recurring deposits 756.5 691.0 805.6 772.9 740.5 3,026.0 2,975.4
Deposits 1,027.7 1,026.0 1,161.6 1,414.9 1,151.0 4,630.2 4,333.6
Surrenders, benefits, and product charges(1,117.5)(1,101.8)(1,261.9)(962.7)(903.4)(4,443.9)(3,770.5)
Net Flows(89.8)(75.8)(100.3) 452.2 247.6 186.3 563.1
Interest credited and investment performance 2,106.4 1,808.2 282.4 1,831.1 511.9 6,028.1 3,731.7
Assets under management, end of period 53,200.5 51,183.9 49,451.5 49,269.4 46,986.1 53,200.5 46,986.1
Stable value (1)
Assets under management, beginning of period 8,705.0 8,406.9 8,279.7 7,792.1 6,473.1 7,792.1 5,560.9
Transfer/Single deposits 202.1 336.7 353.3 542.0 1,320.0 1,434.1 2,388.0
Recurring deposits 60.1 63.4 49.9 48.0 61.8 221.4 210.0
Deposits 262.2 400.1 403.2 590.0 1,381.8 1,655.5 2,598.0
Surrenders, benefits, and product charges(113.8)(81.3)(212.3)(108.9)(97.2)(516.3)(626.4)
Net Flows 148.4 318.8 190.9 481.1 1,284.6 1,139.2 1,971.6
Interest credited and investment performance 60.9(20.7)(63.7) 6.5 34.4(17.0) 259.6
Assets under management, end of period 8,914.3 8,705.0 8,406.9 8,279.7 7,792.1 8,914.3 7,792.1
Individual markets
Assets under management, beginning of period 2,850.5 2,702.4 2,612.0 2,427.1 2,359.4 2,427.1 2,091.1
Transfer/Single deposits 290.3 280.5 323.6 331.6 302.5 1,226.0 1,183.0
Recurring deposits 0.2 0.2 0.5 0.4 0.1 1.3 0.8
Deposits 290.5 280.7 324.1 332.0 302.6 1,227.3 1,183.8
Surrenders, benefits, and product charges(242.6)(215.8)(230.7)(224.8)(255.1)(913.9)(993.4)
Net Flows 47.9 64.9 93.4 107.2 47.5 313.4 190.4
Interest credited and investment performance 100.0 83.2(3.0) 77.7 20.2 257.9 145.6
Assets under management, end of period 2,998.4 2,850.5 2,702.4 2,612.0 2,427.1 2,998.4 2,427.1
Total AUM (2)
Assets under management, beginning of period 100,417.1 96,477.1 95,602.3 90,471.2 87,668.5 90,471.2 79,477.7
Transfer/Single deposits 2,015.1 1,640.4 1,681.8 2,601.3 3,151.7 7,938.6 7,806.5
Recurring deposits 1,661.9 1,638.1 1,774.4 1,843.0 1,583.4 6,917.4 6,650.5
Deposits 3,677.0 3,278.5 3,456.2 4,444.3 4,735.1 14,856.0 14,457.0
Surrenders, benefits, and product charges(3,313.8)(3,044.2)(3,014.6)(3,024.9)(2,953.9)(12,397.5)(10,991.4)
Net Flows 363.2 234.3 441.6 1,419.4 1,781.2 2,458.5 3,465.6
Interest credited and investment performance 4,456.6 3,705.7 433.2 3,711.7 1,021.5 12,307.2 7,527.9
Assets under management, end of period 105,236.9 100,417.1 96,477.1 95,602.3 90,471.2 105,236.9 90,471.2
(1) Where ING U.S. is the Investment Manager
(2) Excludes Recordkeeping and Stable Value where ING U.S. is not the Investment Manager
Page 24 of 70
ING U.S. Annuities
Page 25 of 70
ING U.S.
Annuities Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Sources of operating earnings before income taxes:
Investment spread and other investment income (1) 120.5 127.9 115.4 113.4 118.8 477.2 438.8
Fee based margin 12.9 12.1 11.3 10.5 10.1 46.8 36.4
Net underwriting gain (loss) and other revenue 4.3 2.3 4.4 7.2 5.6 18.2 14.8
Administrative expenses(22.0)(22.5)(23.2)(21.9)(21.7)(89.6)(90.1)
Trail commissions(9.9)(8.9)(8.6)(8.8)(8.4)(36.2)(32.9)
DAC/VOBA and other intangibles amortization, excluding
unlocking (1)(49.8)(57.9)(49.7)(53.1)(53.7)(210.5)(178.6)
DAC/VOBA and other intangibles unlocking (1) 27.2 43.8 9.9 7.0(44.4) 87.9(86.2)
Operating earnings before income taxes 83.2 96.8 59.5 54.3 6.3 293.8 102.2
Gross investment income
Fixed income 256.4 259.1 258.3 267.6 278.5 1,041.4 1,144.1
Limited partnership income 5.3 1.3 5.1 1.6 0.7 13.3 9.2
Prepayment fee income 9.9 6.3 11.1 5.8 10.1 33.1 29.1
Total gross investment income 271.6 266.7 274.5 275.0 289.3 1,087.8 1,182.4
Investment expenses(10.8)(10.5)(11.2)(10.9)(11.4)(43.4)(44.2)
Credited interest(163.0)(168.1)(167.8)(173.7)(179.7)(672.6)(783.1)
Net margin 97.8 88.1 95.5 90.4 98.2 371.8 355.1
Other investment income (1) (2) 22.7 39.9 19.9 22.9 20.6 105.4 83.7
Investment spread and other investment income 120.5 127.9 115.4 113.4 118.8 477.2 438.8
(1) The three months ended 9/30/13 and 12/31/13 include $19.0 million and $1.3 million of net investment income, $(10.5) million and $(0.9)
million of DAC/VOBA and other intangibles amortization, and $4.2 million and $0.4 million of DAC/VOBA and other intangibles unlocking from
Lehman Recovery/LIHTC, respectively.
(2) Includes investment income on assets backing surplus that has been allocated from the corporate segment and income from policy loans
Page 26 of 70
ING U.S.
Annuities Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Operating revenues
Net investment income and net realized gains (losses) 283.4 295.9 283.5 287.1 298.4 1,149.9 1,223.3
Fee income 12.2 11.8 11.2 9.9 10.4 45.1 35.5
Premiums 14.4 7.5 6.7 7.8 6.3 36.4 35.9
Other revenue 3.9 3.9 2.6 2.8 2.3 13.2 12.3
Total operating revenues 313.9 319.1 304.0 307.6 317.4 1,244.6 1,307.0
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(180.4)(182.2)(183.9)(184.4)(192.3)(730.9)(854.1)
Operating expenses(32.1)(31.7)(32.2)(31.0)(30.3)(127.0)(124.7)
Net amortization of DAC/VOBA(18.2)(8.4)(28.4)(37.9)(88.4)(92.9)(225.5)
Interest expense — —(0.1) -(0.5)
Total operating benefits and expenses(230.7)(222.3)(244.5)(253.3)(311.1)(950.8)(1,204.8)
Operating earnings before income taxes 83.2 96.8 59.5 54.3 6.3 293.8 102.2
Page 27 of 70
ING U.S. Annuities AUM
Balances as of
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
Assets Under Management
Fixed single year 3,889.5 3,985.4 4,104.1 4,204.7 4,273.7
Fixed multi-year 3,445.7 3,608.1 3,748.6 3,853.0 3,949.3
Indexed 12,648.4 12,494.9 12,362.8 12,255.3 12,209.2
SPIA & Payout 2,803.5 2,760.4 2,762.9 2,794.8 2,806.6
Other annuities 474.8 452.6 438.9 444.7 428.7
Mutual funds 3,384.9 3,077.8 2,816.2 2,675.5 2,433.6
Total AUM 26,646.7 26,379.2 26,233.5 26,228.0 26,101.1
Assets Under Management
General account 22,432.2 22,508.2 22,647.3 22,772.4 22,915.8
Separate account 829.6 793.2 770.0 780.1 751.7
Mutual funds 3,384.9 3,077.8 2,816.2 2,675.5 2,433.6
Total AUM 26,646.7 26,379.2 26,233.5 26,228.0 26,101.1
Page 28 of 70
ING U.S.
Annuities AUM Rollforward
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Annual Reset Annuities/Multi-Year Guaranteed Annuities
Assets Under Management, beginning of period 7,593.5 7,852.7 8,057.7 8,222.9 8,501.3 8,222.9 10,599.1
Deposits 17.7 14.5 16.5 12.2 17.3 60.9 61.6
Surrenders, benefits, and product charges(348.1)(346.9)(300.6)(254.0)(376.9)(1,249.6)(2,812.5)
Net cash flow(330.4)(332.4)(284.1)(241.8)(359.6)(1,188.7)(2,750.9)
Interest credited and investment performance 72.1 73.2 79.1 76.6 81.2 301.0 374.7
Assets Under Management, end of period 7,335.2 7,593.5 7,852.7 8,057.7 8,222.9 7,335.2 8,222.9
Fixed Indexed Annuities
Assets Under Management, beginning of period 12,494.9 12,362.8 12,255.3 12,209.2 12,167.0 12,209.2 12,080.9
Deposits 379.3 334.8 286.7 245.9 285.0 1,246.7 1,190.4
Surrenders, benefits, and product charges(348.6)(327.3)(332.8)(288.9)(341.2)(1,297.6)(1,392.0)
Net cash flow 30.7 7.6(46.2)(43.1)(56.1)(51.0)(201.6)
Interest credited and investment performance 122.8 124.6 153.7 89.1 98.4 490.2 329.8
Assets Under Management, end of period 12,648.4 12,494.9 12,362.8 12,255.3 12,209.2 12,648.4 12,209.2
SPIA & Payout
Assets Under Management, beginning of period 2,760.4 2,762.9 2,794.8 2,806.6 2,851.0 2,806.6 2,831.0
Deposits 94.5 51.1 37.2 39.8 38.7 222.6 243.0
Surrenders, benefits, and product charges(108.7)(110.6)(107.7)(101.0)(112.7)(428.0)(440.9)
Net cash flow(14.2)(59.5)(70.5)(61.3)(74.0)(205.5)(197.9)
Interest credited and investment performance 57.3 57.0 38.5 49.5 29.6 202.4 173.5
Assets Under Management, end of period 2,803.5 2,760.4 2,762.9 2,794.8 2,806.6 2,803.5 2,806.6
Mutual Fund Custodial
Assets Under Management, beginning of period 3,077.8 2,816.2 2,675.5 2,433.5 2,291.7 2,433.5 1,761.3
Deposits 288.3 270.6 283.1 255.4 213.6 1,097.4 852.6
Surrenders, benefits, and product charges(135.1)(133.8)(114.2)(115.3)(106.9)(498.4)(391.6)
Net cash flow 153.3 136.8 168.9 140.1 106.7 599.1 461.0
Interest credited and investment performance 153.8 124.8(28.1) 101.8 35.1 352.3 211.2
Assets Under Management, end of period 3,384.9 3,077.8 2,816.2 2,675.5 2,433.5 3,384.9 2,433.5
Other Annuities
Assets Under Management, beginning of period 452.6 438.9 444.7 428.7 440.8 428.7 417.8
Deposits 1.0 0.6 1.1 1.6 1.2 4.3 6.2
Surrenders, benefits, and product charges(12.4)(14.1)(13.0)(15.8)(14.7)(55.3)(49.6)
Net cash flow(11.4)(13.5)(11.8)(14.3)(13.5)(51.0)(43.4)
Interest credited and investment performance 33.6 27.2 6.1 30.3 1.4 97.1 54.3
Assets Under Management, end of period 474.8 452.6 438.9 444.7 428.7 474.8 428.7
Annuities—Total
Assets Under Management, beginning of period 26,379.2 26,233.5 26,228.0 26,101.1 26,251.9 26,101.1 27,690.2
Deposits 780.9 671.7 624.6 554.8 555.8 2,632.0 2,353.8
Surrenders, benefits, and product charges(952.8)(932.7)(868.3)(775.1)(951.8)(3,528.9)(5,086.1)
Net cash flow(171.9)(261.0)(243.7)(220.3)(396.0)(896.9)(2,732.3)
Interest credited and investment performance 439.4 406.7 249.2 347.3 245.2 1,442.5 1,143.2
Assets Under Management, end of period 26,646.7 26,379.2 26,233.5 26,228.0 26,101.1 26,646.7 26,101.1
Page 29 of 70
ING U.S.
Investment Management
Page 30 of 70
ING U.S.
Investment Management Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Sources of operating earnings before income
taxes:
Investment capital and other investment income (1) 12.1 16.8 6.2 2.6 5.3 37.7 39.9
Fee based margin 155.0 143.3 142.4 129.3 137.2 570.0 505.6
Administrative expenses(114.2)(106.1)(107.5)(101.8)(111.3)(429.6)(411.0)
Operating earnings before income taxes 52.9 54.0 41.1 30.1 31.2 178.1 134.5
(1) The three months ended 9/30/13 and 12/31/13 include $11.5 million and $1.7 million respectively
of net investment income from Lehman Recovery/LIHTC.
Page 31 of 70
ING U.S.
Investment Management Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Operating revenues
Net investment income and net realized gains (losses) 11.7 16.4 6.1 2.8 5.6 37.0 41.6
Fee income 141.4 135.4 132.3 121.7 122.6 530.8 474.7
Other revenue 14.0 8.3 10.2 7.4 14.3 39.9 29.2
Total operating revenues 167.1 160.1 148.6 131.9 142.5 607.7 545.5
Operating benefits and expenses
Operating expenses(114.2)(106.1)(107.5)(101.8)(111.3)(429.6)(411.0)
Total operating benefits and expenses(114.2)(106.1)(107.5)(101.8)(111.3)(429.6)(411.0)
Operating earnings before income taxes 52.9 54.0 41.1 30.1 31.2 178.1 134.5
Page 32 of 70
ING U.S.
Investment Management Key Metrics
Balances as of Balances as of
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Client Assets by Source:
External clients
Investment Management sourced 66,362.2 63,275.4 60,643.9 58,002.1 54,061.9 66,362.2 54,061.9
Affiliate sourced 53,935.0 52,169.5 49,404.6 49,658.0 47,284.6 53,935.0 47,284.6
Subtotal external clients 120,297.2 115,445.0 110,048.5 107,660.1 101,346.5 120,297.2 101,346.5
General Account (1) 78,988.8 80,260.3 80,275.3 79,965.9 80,404.8 78,988.8 80,404.8
Total Client Assets (AUM) 199,286.0 195,705.3 190,323.8 187,626.0 181,751.3 199,286.0 181,751.3
Administration Only Assets (AUA) 58,462.8 55,843.7 55,294.2 55,732.5 54,695.5 58,462.8 54,695.5
Total AUM and AUA 257,748.8 251,549.0 245,618.0 243,358.5 236,446.8 257,748.8 236,446.8
Three Months Ended Year to Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Analysis of investment advisory and administrative
revenues, net, by source: (2)
External clients
Investment Management sourced 74.6 69.4 68.2 58.0 58.2 270.2 222.7
Affiliate sourced 26.8 25.8 23.5 22.1 21.9 98.2 82.1
Subtotal External Clients 101.4 95.2 91.7 80.1 80.1 368.4 304.8
General Account 36.2 36.2 36.2 36.8 37.0 145.4 148.5
Total investment advisory and administrative revenues, net,
from AUM 137.6 131.4 127.9 116.9 117.1 513.8 453.3
Administration Only Fees 3.8 4.0 4.4 4.8 5.5 17.0 21.5
Total investment advisory and administrative revenues, net,
by source (2) 141.4 135.4 132.3 121.7 122.6 530.8 474.7
Revenue Yield (bps): (2) (3)
External clients
Investment Management sourced 46.0 44.7 45.6 41.5 44.6 44.5 44.2
Affiliate sourced 20.1 20.5 18.9 18.3 18.7 19.5 18.6
Revenue Yield on Institutional/retail 34.4 33.8 33.5 30.8 32.3 33.2 32.3
General Account 18.0 18.0 18.1 18.3 18.5 18.1 18.8
Revenue Yield on Client Assets (AUM) 27.7 27.3 27.0 25.3 26.1 26.9 26.1
Revenue Yield on Administration Only Assets (AUA) 2.7 2.9 3.1 3.5 4.1 3.0 3.8
Total Revenue Yield on AUM and AUA (bps) (2) (3) 22.1 21.8 21.6 20.3 21.0 21.4 20.7
(1) General Account assets reported on a Statutory Book Value billing basis consistent with revenues earned.
(2) Measures used by management to evaluate ongoing business performance, allowing for more appropriate comparisons with industry peers.
(3) Revenue Yields calculated using average client assets for the period.
Page 33 of 70
ING U.S.
Investment Management Account Rollforward by Source
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
AUM Roll-forward By Source
Investment Management Sourced
Beginning AUM 63,275.4 60,643.9 58,002.1 54,061.9 50,761.4 54,061.9 49,391.8
Inflows
Inflows from sub-advisor replacements ——197.6 481.3 197.6 481.3
Inflows-other 4,589.9 3,875.4 5,760.6 4,598.0 5,536.4 18,824.0 12,878.4
Outflows(3,302.9)(3,160.6)(2,615.4)(2,164.9)(2,255.5)(11,243.9)(9,419.9)
Net Flows 1,287.0 714.9 3,145.2 2,630.7 3,762.2 7,777.7 3,939.8
Net Money Market Flows 2.3 5.1(21.5)(3.2) 5.6(17.2)(24.4)
Change in Market Value 1,827.6 1,801.8(513.0) 1,728.2 635.5 4,844.5 4,490.8
Other (Including Acquisitions / Divestitures)(30.0) 109.8 31.1(415.5)(1,102.8)(304.6)(3,736.1)
Investment Management sourced AUM End of Period 66,362.2 63,275.4 60,643.9 58,002.1 54,061.9 66,362.2 54,061.9
Organic Growth (Long Term Net Flows / Beginning of Period AUM) 2.03% 1.18% 5.42% 4.87% 7.41% 14.39% 7.98%
Market Growth % 2.89% 2.97% -0.88% 3.20% 1.25% 8.96% 9.09%
Affiliate Sourced
Beginning AUM 52,169.5 49,404.6 49,658.0 47,284.6 46,376.8 47,284.6 37,851.8
Inflows
Inflows from sub-advisor replacements—869.8 537.0 447.1 125.2 1,853.9 6,439.2
Inflows-other 1,149.3 1,849.6 1,024.1 1,579.6 2,311.6 5,602.6 5,903.5
Outflows(1,790.4)(1,600.8)(1,606.7)(1,479.9)(1,716.5)(6,477.8)(6,436.9)
Net Flows(641.1) 1,118.6(45.6) 546.8 720.3 978.7 5,905.8
Net Money Market Flows(156.8)(21.1) 39.8(226.2) 20.4(364.3)(334.8)
Change in Market Value 2,491.3 2,088.5 10.4 2,111.2 230.2 6,701.4 3,930.0
Other (Including Acquisitions / Divestitures) 72.1(421.0)(258.0)(58.5)(63.0)(665.4)(68.2)
Affiliate sourced AUM End of Period 53,935.0 52,169.5 49,404.6 49,658.0 47,284.6 53,935.0 47,284.6
Organic Growth (Long Term Net Flows / Beginning of Period AUM) -1.23% 2.26% -0.09% 1.16% 1.55% 2.07% 15.60%
Market Growth % 4.78% 4.23% 0.02% 4.46% 0.50% 14.17% 10.38%
Other affiliate sourced net flows 10.0 1,722.3 572.2 1,040.4 1,365.7 3,344.9 7,799.1
Variable annuity net flows(651.1)(603.8)(617.8)(493.6)(645.4)(2,366.3)(1,893.2)
Total affiliate sourced net flows(641.1) 1,118.6(45.6) 546.8 720.3 978.7 5,905.8
Investment Management sourced net flows 1,287.0 714.9 3,145.2 2,630.7 3,762.2 7,777.7 3,939.8
Total net flows 645.9 1,833.5 3,099.6 3,177.5 4,482.5 8,756.4 9,845.6
Page 34 of 70
ING U.S.
Investment Management Account Value by Asset Type
Balances as of
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
(in millions USD)
Institutional
Equity 18,334.8 16,934.3 15,645.2 14,644.1 13,769.5
Fixed Income 36,532.3 35,223.5 34,034.0 32,246.4 29,894.4
Real Estate — — -
Money Market 28.6 27.2 18.9 17.1 33.3
Total 54,895.7 52,185.0 49,698.1 46,907.6 43,697.2
Retail
Equity 41,408.5 38,963.8 36,162.9 36,199.9 33,315.3
Fixed Income 15,209.9 15,191.3 15,208.2 15,459.7 15,406.2
Real Estate 6,647.6 6,801.5 6,660.2 6,794.1 6,401.3
Money Market 2,135.5 2,303.4 2,319.1 2,298.7 2,526.5
Total 65,401.5 63,260.0 60,350.4 60,752.4 57,649.3
General Account
Equity 280.3 292.6 356.5 360.5 443.6
Fixed Income 77,958.6 78,097.5 78,137.2 76,389.0 75,765.4
Real Estate — — -
Money Market 749.9 1,870.2 1,781.6 3,216.4 4,195.8
Total 78,988.8 80,260.3 80,275.3 79,965.9 80,404.8
Combined Asset Type
Equity 60,023.6 56,190.9 52,164.6 51,204.6 47,528.4
Fixed Income 129,700.8 128,512.2 127,379.4 124,095.1 121,066.0
Real Estate 6,647.6 6,801.5 6,660.2 6,794.1 6,401.3
Money Market 2,914.0 4,200.7 4,119.6 5,532.2 6,755.6
Total 199,286.0 195,705.3 190,323.8 187,626.0 181,751.3
Page 35 of 70
ING U.S. Individual Life
Page 36 of 70
ING U.S.
Individual Life Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Sources of operating earnings before income
taxes:
Investment spread and other investment income (1) 57.1 95.1 48.2 52.4 38.8 252.8 227.7
Fee based margin 5.8 4.6 5.0 4.8 4.7 20.2 19.5
Net underwriting gain (loss) and other revenue 100.4 119.9 115.8 115.9 146.4 452.0 495.4
Administrative expenses(65.9)(64.0)(69.8)(67.0)(76.6)(266.7)(307.0)
Trail commissions(4.9)(4.8)(5.9)(7.7)(6.1)(23.3)(30.5)
DAC/VOBA and other intangibles amortization,
excluding unlocking (1)(39.1)(70.2)(48.4)(44.9)(57.2)(202.6)(212.3)
DAC/VOBA and other intangibles unlocking (1)(6.4) 36.4(4.9)(2.7) 4.6 22.4 3.4
Operating earnings before income taxes 47.0 117.0 40.0 50.8 54.6 254.8 196.2
Gross Investment Income
Fixed income 209.5 208.6 204.2 203.2 202.2 825.5 870.7
Limited partnership income 3.6 0.7 3.9 1.5(1.2) 9.7 1.3
Prepayment fee income 3.6 3.6 3.1 7.7 4.4 18.0 13.4
Total gross investment income 216.7 212.9 211.2 212.4 205.4 853.2 885.4
Investment expenses(6.2)(5.8)(5.7)(5.4)(5.4)(23.1)(23.3)
Credited interest(165.1)(162.5)(163.8)(162.3)(166.1)(653.7)(649.5)
Net margin 45.4 44.6 41.7 44.7 33.9 176.4 212.6
Other investment income (1) (2) 11.7 50.6 6.5 7.6 4.8 76.4 15.1
Investment spread and other investment income 57.1 95.1 48.2 52.4 38.8 252.8 227.7
Net underwriting gain (loss) and other revenue
Fee Revenue/Premiums 494.2 499.3 500.1 488.4 503.4 1,982.1 1,997.7
Net Mortality, including Reinsurance(305.8)(283.9)(293.4)(301.8)(261.7)(1,184.9)(1,090.9)
Reserve Change/Other(88.0)(95.5)(90.9)(70.7)(95.5)(345.2)(411.4)
Total net underwriting gain (loss) and other
revenue 100.4 119.9 115.8 115.9 146.4 452.0 495.4
(1) The three months ended 9/30/13 and 12/31/13 include $43.4 million and $3.8 million of net investment income, $(23.0) million and $(2.1)
million of DAC/VOBA and other intangibles amortization, and $16.2 million and $1.4 million of DAC/VOBA and other intangibles unlocking
from Lehman Recovery/LIHTC, respectively.
(2) Includes investment income on assets backing surplus that has been allocated from the corporate segment and income from policy loans
Page 37 of 70
ING U.S.
Individual Life Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Operating revenues
Net investment income and net realized gains (losses) 224.5 258.7 215.4 216.9 213.1 915.5 913.8
Fee income 278.5 278.4 280.0 276.8 282.0 1,113.7 1,115.7
Premiums 185.3 174.7 192.1 185.8 191.7 737.9 737.8
Other revenue 4.6 5.3 7.3 7.6 7.4 24.8 26.6
Total operating revenues 692.9 717.1 694.8 687.1 694.2 2,791.9 2,793.9
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(518.8)(468.7)(512.4)(501.6)(489.1)(2,001.5)(2,034.4)
Operating expenses(88.9)(83.9)(94.6)(90.9)(101.0)(358.3)(390.5)
Net amortization of DAC/VOBA(38.2)(47.5)(47.6)(42.9)(47.7)(176.2)(162.3)
Interest expense —(0.2)(0.9)(1.8)(1.1)(10.5)
Total operating benefits and expenses(645.9)(600.1)(654.8)(636.3)(639.6)(2,537.1)(2,597.7)
Operating earnings before income taxes 47.0 117.0 40.0 50.8 54.6 254.8 196.2
Page 38 of 70
ING U.S.
Individual Life Key Metrics
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Sales by Product Line
Guaranteed—0.1—0.5 7.7 0.6 72.7
Accumulation 2.0 2.8 3.9 4.0 5.4 12.7 25.3
Indexed 8.4 5.8 6.6 6.8 11.8 27.6 33.5
Total Universal life 10.4 8.7 10.5 11.3 24.9 40.9 131.5
Variable life 0.7 2.8 2.4 2.7 1.6 8.6 6.3
Term 9.8 11.2 13.9 15.2 19.2 50.1 116.3
Whole life 0.1 0.1 ——0.2 -
Total sales by product line 21.0 22.8 26.8 29.2 45.7 99.8 254.1
Sales by Distribution
Independent life sales 12.9 13.3 17.2 19.1 32.1 62.5 192.5
Strategic distribution 5.2 5.8 5.3 5.4 8.5 21.7 32.1
Alternative and specialty markets 2.9 3.7 4.3 4.7 5.1 15.6 29.5
Total sales by distribution 21.0 22.8 26.8 29.2 45.7 99.8 254.1
Gross premiums and deposits by product:
Interest sensitive 276.1 271.5 273.2 275.2 322.2 1,096.0 1,434.1
Non—interest sensitive 227.0 217.2 233.6 223.4 217.4 901.2 890.5
Total gross premiums and deposits 503.0 488.7 506.8 498.6 539.6 1,997.1 2,324.6
Applications
New business policy count (Paid) 9,906 11,904 15,290 16,137 20,471 53,237 119,936
End of Period:
In-force face amount (by product)
Universal life 78,581 78,901 79,505 79,969 80,685 78,581 80,685
Variable life 28,198 28,679 29,153 29,642 30,182 28,198 30,182
Term 495,995 496,935 497,596 496,919 494,760 495,995 494,760
Whole life 2,217 2,241 2,274 2,313 2,348 2,217 2,348
Total In-force Face 604,990 606,756 608,528 608,844 607,976 604,990 607,976
In-force policy count (in whole numbers)
Universal life 292,096 295,241 298,406 301,703 305,115 292,096 305,115
Variable life 66,811 67,887 69,135 70,364 71,589 66,811 71,589
Term 830,832 832,506 832,402 829,444 824,794 830,832 824,794
Whole life 142,409 144,274 146,425 148,767 151,346 142,409 151,346
Total Policy Counts 1,332,148 1,339,908 1,346,368 1,350,278 1,352,844 1,332,148 1,352,844
Assets under management
General account 13,271.3 13,257.4 13,190.7 13,089.6 12,910.4 13,271.3 12,910.4
Separate account 2,724.3 2,590.3 2,487.0 2,509.2 2,412.1 2,724.3 2,412.1
Total 15,995.6 15,847.7 15,677.7 15,598.8 15,322.5 15,995.6 15,322.5
Page 39 of 70
ING U.S.
Employee Benefits
Page 40 of 70
ING U.S.
Employee Benefits Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Sources of operating earnings before income taxes:
Investment spread and other investment income (1) 13.6 16.3 11.7 12.0 10.4 53.6 49.1
Net underwriting gain (loss) and other revenue 78.3 76.3 86.9 62.8 80.6 304.3 308.6
Administrative expenses(38.5)(39.9)(41.0)(39.6)(41.6)(159.0)(165.6)
Trail commissions(18.0)(18.7)(19.6)(19.7)(17.7)(76.0)(69.5)
DAC/VOBA and other intangibles amortization, excluding
unlocking(4.4)(4.9)(3.9)(3.1)(3.1)(16.3)(13.2)
DAC/VOBA and other intangibles unlocking(0.5) — —(0.5) -
Operating earnings before income taxes 30.5 29.1 34.1 12.4 28.6 106.1 109.4
Gross Investment Income
Fixed income 25.4 25.3 24.7 26.1 24.8 101.5 105.4
Limited partnership income 0.6—0.4 0.1(0.2) 1.1 0.1
Prepayment fee income 1.0 1.1 1.3 0.5 0.2 3.9 1.0
Total gross investment income 27.0 26.4 26.4 26.7 24.8 106.5 106.5
Investment expenses(0.6)(0.8)(0.8)(0.9)(0.9)(3.1)(3.7)
Credited interest(15.7)(15.8)(16.1)(16.3)(16.6)(63.9)(65.0)
Net margin 10.7 9.8 9.5 9.5 7.3 39.5 37.8
Other investment income (1) (2) 2.9 6.5 2.2 2.5 3.1 14.1 11.3
Investment spread and other investment income 13.6 16.3 11.7 12.0 10.4 53.6 49.1
Group life
Premiums 117.2 118.1 119.3 118.9 116.5 473.3 460.8
Benefits(84.3)(97.0)(89.9)(101.5)(91.2)(372.7)(354.5)
Other (3)(2.5)(1.1)(2.6)(3.1)(3.4)(9.2)(11.1)
Total 30.5 20.0 26.8 14.2 21.8 91.4 95.2
Loss Ratio (Interest adjusted) 72.0% 82.1% 75.4% 85.4% 78.4% 78.7% 76.9%
Group stop loss
Premiums 138.8 136.3 133.9 135.7 136.5 544.8 561.5
Benefits(108.9)(99.3)(96.6)(105.4)(94.8)(410.2)(409.5)
Other (3)(0.4)(1.1)(0.3)(1.3)(0.7)(3.1)(3.2)
Total 29.5 35.9 37.0 29.1 41.0 131.5 148.8
Loss Ratio 78.4% 72.8% 72.1% 77.6% 69.5% 75.3% 72.9%
Voluntary Benefits, Disability, and Other 18.3 20.5 23.1 19.4 17.6 81.3 64.3
Net underwriting gain (loss) and other revenue 78.3 76.3 86.9 62.8 80.6 304.3 308.6
(1) The three months ended 9/30/13 and 12/31/13 include $4.0 million and $0.3 million of net investment income from Lehman Recovery/LIHTC, respectively.
(2) Includes investment income on assets backing surplus that has been allocated from the corporate
segment.
(3) Other includes service fees, dividends, interest expenses, and other miscellaneous expenses. The Loss
Ratio calculation does not include Other.
Page 41 of 70
ING U.S.
Employee Benefits Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Operating revenues
Net investment income and net realized gains (losses) 29.2 32.1 27.9 28.4 27.0 117.6 114.3
Fee income 15.9 15.5 15.8 15.8 15.9 63.0 62.5
Premiums 272.4 269.6 269.0 274.9 271.6 1,085.9 1,078.1
Other revenue(1.0)(1.0)(1.0)(1.0)(0.9)(4.0)(3.7)
Total operating revenues 316.5 316.2 311.7 318.1 313.6 1,262.5 1,251.2
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(223.9)(223.7)(213.2)(242.6)(220.9)(903.4)(892.1)
Operating expenses(57.1)(58.5)(60.5)(60.0)(60.7)(236.1)(236.2)
Net amortization of DAC/VOBA(5.0)(4.9)(3.9)(3.1)(3.4)(16.9)(13.5)
Total operating benefits and expenses(286.0)(287.1)(277.6)(305.7)(285.0)(1,156.4)(1,141.8)
Operating earnings before income taxes 30.5 29.1 34.1 12.4 28.6 106.1 109.4
Page 42 of 70
ING U.S.
Employee Benefits Key Metrics
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Sales
Group life (Basic / Sup / AD&D) 5.4 7.3 1.6 44.0 2.0 58.3 47.9
Group stop loss 14.0 38.1 11.6 89.7 7.8 153.4 151.6
Disability 3.1 2.5 1.1 10.9 1.8 17.6 15.8
Association (Life, DI, PAI) 3.6 0.1 0.3—12.7 4.0 14.3
Other (PAI) 0.4 0.2 0.1 1.8—2.5 1.0
Total group products 26.5 48.2 14.7 146.4 24.3 235.8 230.6
Voluntary products 9.1 4.0 3.8 10.3 8.3 27.2 24.5
Total sales by product line 35.6 52.2 18.4 156.7 32.6 263.0 255.1
Total gross premiums and deposits 314.5 316.2 311.3 319.5 314.3 1,261.5 1,252.1
Total annualized in-force premiums 1,294.6 1,292.4 1,273.5 1,316.2 1,286.6 1,294.6 1,286.6
Assets under management (EOP)
General account 1,739.2 1,753.6 1,747.3 1,739.1 1,745.5 1,739.2 1,745.5
Separate account 15.9 15.2 14.8 14.7 14.0 15.9 14.0
Total 1,755.1 1,768.8 1,762.1 1,753.8 1,759.5 1,755.1 1,759.5
Page 43 of 70
ING U.S. Corporate
Page 44 of 70
ING U.S.
Corporate Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Interest expense(47.0)(47.6)(43.2)(41.9)(39.2)(179.7)(127.8)
Closed Block Variable Annuity contingent capital LOC —(5.6)(12.8)(13.1)(18.4)(56.7)
Amortization of intangibles(8.7)(8.7)(8.8)(8.8)(8.8)(35.0)(35.0)
Other 11.7(7.4) 4.8 13.4 17.5 22.5 37.2
Operating earnings before income taxes(44.0)(63.7)(52.8)(50.1)(43.6)(210.6)(182.3)
Page 45 of 70
ING U.S.
Closed Blocks (Variable Annuity and Other)
Page 46 of 70
ING U.S.
Closed Block ISP and Other Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Closed Block Institutional Spread Products (1)(5.8) 8.7 10.9 22.1 4.7 35.9 45.7
Closed Block Other (2) 2.5 5.8 7.1(0.7) 19.1 14.7 64.0
Operating earnings before income taxes(3.3) 14.5 18.0 21.4 23.8 50.6 109.7
Three Months Ended Year-to-Date
Closed Block Institutional Spread Products 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Operating revenues
Net investment income and net realized gains (losses) (1) 21.1 22.8 26.0 38.0 23.7 107.9 126.3
Fee income — — 0.1—0.1
Premiums 0.6 0.6 0.6 0.6 0.6 2.4 2.3
Other revenue(0.3)(0.3)(0.3)(0.3)(0.4)(1.2)(1.5)
Total operating revenues 21.4 23.1 26.3 38.3 24.0 109.1 127.2
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(24.6)(11.9)(12.7)(13.5)(16.1)(62.7)(67.5)
Operating expenses(2.5)(2.4)(2.6)(2.6)(2.9)(10.1)(11.5)
Net amortization of DAC/VOBA(0.1)(0.1)(0.1)(0.1)(0.2)(0.4)(0.6)
Interest expense — —(0.1) -(1.9)
Total operating benefits and expenses(27.2)(14.4)(15.4)(16.2)(19.3)(73.2)(81.5)
Operating earnings before income taxes(5.8) 8.7 10.9 22.1 4.7 35.9 45.7
Three Months Ended Year-to-Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Closed Block Other
Operating revenues
Net investment income and net realized gains (losses) (2) 5.5 7.1 6.0 6.0 10.9 24.6 35.0
Fee income — — — 0.1
Premiums(0.1) 0.4 1.1 0.9 0.9 2.3 5.1
Other revenue 0.2 0.1 0.2 0.3 2.4 0.8 3.6
Total operating revenues 5.6 7.6 7.3 7.2 14.2 27.7 43.8
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(0.6) 0.8 7.3(6.8) 6.8 0.7 3.8
Operating expenses(2.5)(2.6)(7.5)(1.1)(1.9)(13.7) 16.4
Total operating benefits and expenses(3.1)(1.8)(0.2)(7.9) 4.9(13.0) 20.2
Operating earnings before income taxes 2.5 5.8 7.1(0.7) 19.1 14.7 64.0
(1) The three months ended 9/30/13 and 12/31/13 include $(0.2) million and $(0.2) million of net investment income from Lehman Recovery/LIHTC, respectively.
(2) The three months ended 9/30/13 and 12/31/13 include $0.8 million and $(0.2) million of net investment income from Lehman Recovery/LIHTC, respectively.
Page 47 of 70
ING U.S.
Closed Block Variable Annuity Income (Loss) before income taxes
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Revenues
Net investment income 29.5 28.8 20.9 18.4 17.2 97.6 52.7
Fee income 331.8 325.3 320.7 309.3 312.9 1,287.1 1,235.9
Premiums 40.4 38.8 ——79.2 -
Net realized gains (losses)(560.8)(463.0)(408.4)(776.4)(267.3)(2,208.6)(1,382.8)
Other revenues and premiums 3.2 4.0 6.5 4.7 5.3 18.5 24.2
Total revenues(155.9)(66.1)(60.3)(444.0) 68.1(726.2)(70.0)
Benefits and expenses
Interest credited and other benefits to contract owners/policyholders 64.5 37.6(144.3) 94.1(107.6) 51.9(113.6)
Operating expenses and interest expense(119.6)(119.2)(116.5)(112.2)(113.3)(467.6)(450.4)
Net amortization of DAC/VOBA(15.4)(19.7)(17.3)(15.0)(14.5)(67.4)(58.3)
Total benefits and expenses(70.5)(101.3)(278.1)(33.1)(235.4)(483.1)(622.3)
Income (loss) before income taxes(226.4)(167.4)(338.4)(477.1)(167.3)(1,209.3)(692.3)
Three Months Ended Year-to-Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
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)(201.9)(366.3)(407.4)(453.9)(18.0)(1,429.5)(858.3)
Gains (losses) related to CHO program (1) -(40.7)(45.6)(158.5) 18.5(244.8)(351.0)
Gain (loss) due to nonperformance risk(1)(271.7) 5.2(121.3)(106.7)(401.4)(494.5)(443.6)
Net investment gains (losses) (1)(0.7)(3.7) 3.5 13.5(0.6) 12.6 26.6
DAC/VOBA and other intangibles unlocking and loss recognition 1.6(4.3)(1.8)(0.2) 0.3(4.7) 1.8
(1) Amounts exclude net amortization of DAC/VOBA and other intangibles.
Page 48 of 70
ING U.S.
Closed Block Variable Annuity Death and Living Benefits
Balances as of
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
Death and living benefits-account value
GMAB/GMWB 943 957 970 1,043 1,048
GMIB 15,909 15,443 15,048 15,482 14,904
GMWBL 16,537 16,053 15,636 16,075 15,612
No living benefits 11,351 11,107 10,934 11,246 10,976
Total* 44,740 43,560 42,588 43,846 42,540
Net amount at risk (after reinsurance)
Total DB NAR 5,074 5,720 6,437 6,105 7,029
GMAB/GMWB 20 25 32 32 42
GMIB(1) 1,682 2,321 2,780 3,029 3,576
GMWBL(1) 452 700 960 1,293 1,703
Total LB NAR 2,154 3,046 3,772 4,354 5,321
*Excludes assets associated with Payout Reserves, Policy Loans, and Life Insurance Business
(1) GMIB and GMWBL values represent discounted net amount at risk
Page 49 of 70
ING U.S.
Closed Block Variable Annuity AUM Rollforward
Three Months Ended Year-to-Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
(in millions USD)
Products in accumulation phase:
Balance as of beginning of period 43,608.4 42,635.2 43,897.8 42,590.6 43,280.8 42,590.6 42,231.7
Deposits 55.1 61.0 79.6 74.9 66.7 270.6 262.6
Surrenders, benefits, and product charges(1,172.5)(1,097.2)(1,175.2)(1,057.8)(1,059.5)(4,502.7)(3,957.0)
Net cash flow(1,117.4)(1,036.2)(1,095.6)(982.9)(992.8)(4,232.1)(3,694.4)
Interest credited and investment performance 2,297.2 2,009.3(167.0) 2,290.1 302.6 6,429.8 4,053.3
Balance as of end of period 44,788.2 43,608.4 42,635.2 43,897.8 42,590.6 44,788.2 42,590.6
End of period contracts in payout status 910.8 818.5 724.2 648.8 607.8 910.8 607.8
Total balance as of end of period* 45,699.0 44,426.9 43,359.4 44,546.6 43,198.4 45,699.0 43,198.4
Assets Under Management
General account 1,429.1 1,379.7 1,336.6 1,272.1 1,237.6 1,429.1 1,237.6
Separate account 44,269.9 43,047.2 42,022.6 43,274.5 41,960.8 44,269.9 41,960.8
Total* 45,699.0 44,426.9 43,359.4 44,546.6 43,198.4 45,699.0 43,198.4
*Includes products in accumulation and payout phase, Policy Loans, and Life Insurance Business
Page 50 of 70
ING U.S.
Investment Information
Page 51 of 70
ING U.S.
Portfolio Composition
Balances as of
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
(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 68,341.9 69,258.8 69,930.1 70,708.5 70,995.5
CLOs Adjustments (1) (43.0) (118.0) (119.6) (133.0) (84.1)
VOEs Adjustments (1) 18.9 30.6 32.9 47.4 (1.1)
Fixed maturities, available for sale, at fair value, after consolidation 68,317.8 78.4% 69,171.4 77.7% 69,843.4 78.0% 70,622.9 76.7% 70,910.3 74.2%
Fixed maturities, at fair value using the fair value option 2,935.3 3.4% 2,910.2 3.3% 2,771.6 3.1% 2,675.8 2.9% 2,771.3 2.8%
Equity securities, available for sale, at fair value 314.4 0.4% 279.6 0.3% 281.0 0.3% 282.3 0.3% 340.1 0.4%
Short-term investments 1,048.1 1.2% 2,547.3 2.8% 2,404.8 2.7% 2,404.8 3.2% 5,991.2 6.3%
Mortgage loans on real estate 9,312.2 10.7% 9,015.6 10.1% 8,929.1 10.0% 8,949.4 9.7% 8,662.3 9.1%
Policy loans 2,147.0 2.5% 2,147.5 2.4% 2,144.9 2.4% 2,204.4 2.4% 2,200.3 2.3%
Limited partnerships/corporations, before consolidation 890.4 984.3 1,024.0 1,036.7 1,031.0
VOEs Adjustments (1) (654.0) (594.3) (593.8) (568.2) (565.9)
Limited partnerships/corporations, after consolidation 236.4 0.3% 390.0 0.4% 430.2 0.5% 468.5 0.5% 465.1 0.5%
Derivatives 1,149.3 1.3% 1,087.4 1.3% 1,174.4 1.3% 2,077.0 2.3% 2,374.5 2.5%
Other investments 124.6 0.1% 145.7 0.2% 168.4 0.2% 166.7 0.2% 167.0 0.2%
Securities pledged to creditors 1,465.7 1.7% 1,312.6 1.5% 1,357.0 1.5% 1,774.7 1.8% 1,605.5 1.7%
Total investments, after consolidation 87,050.8 100.0% 89,007.3 100.0% 89,504.8 100.0% 92,213.8 100.0% 95,487.6 100.0%
Fixed Maturity Securities - Security Sector (2)
U.S. Government agencies and authorities 5,800.1 8.0% 6,336.4 8.6% 6,660.8 9.0% 6,467.0 8.6% 6,607.9 8.8%
U.S. Corporate - Public 32,033.7 44.0% 32,048.9 43.8% 31,643.8 42.8% 32,137.7 42.8% 31,597.4 41.9%
U.S. Corporate - Private 5,444.9 7.5% 5,362.3 7.3% 5,423.1 7.3% 5,622.2 7.5% 5,566.5 7.4%
Foreign Government / Agency 1,051.4 1.4% 1,057.5 1.4% 1,091.8 1.5% 1,156.1 1.5% 1,190.0 1.6%
Foreign Corporate - Public 7,044.1 9.7% 6,982.4 9.5% 6,572.7 8.9% 6,807.3 9.1% 6,476.7 8.6%
Foreign Corporate - Private 8,261.0 11.4% 8,149.1 11.1% 8,083.4 10.9% 8,146.6 10.9% 8,317.8 11.0%
State, municipalities and political subdivisions 281.1 0.4% 285.0 0.4% 292.5 0.4% 317.8 0.4% 352.8 0.5%
Residential mortgaged-backed securities: 0.0%
CMO-B Agency 2,945.5 4.0% 2,882.5 3.9% 2,706.0 3.7% 2,934.3 3.9% 3,066.4 4.1%
CMO-B Non-Agency 430.3 0.6% 449.0 0.6% 479.7 0.6% 540.5 0.7% 582.8 0.8%
Agency 2,881.9 4.0% 3,030.0 4.1% 3,336.1 4.5% 2,706.7 3.6% 2,779.7 3.7%
Non-Agency (3) 1,478.9 2.0% 1,587.8 2.2% 1,847.0 2.5% 1,997.0 2.7% 2,193.9 2.9%
Total Residential mortgage-backed securities 7,736.6 10.6% 7,949.3 10.8% 8,368.8 11.3% 8,178.5 10.9% 8,622.8 11.5%
Commercial mortgage-backed securities 3,752.1 5.2% 3,867.6 5.3% 4,425.9 6.0% 4,813.2 6.4% 4,946.4 6.6%
Other asset-backed securities (3) 1,313.8 1.8% 1,355.7 1.8% 1,409.2 1.9% 1,427.0 1.9% 1,608.8 2.1%
Total fixed maturities, including securities pledged 72,718.8 100.0% 73,394.2 100.0% 73,972.0 100.0% 75,073.4 100.0% 75,287.1 100.0%
Fixed Maturity Securities - Contractual Maturity Dates
Due to mature:
Due in one year or less 2,153.6 3.0% 2,423.9 3.3% 2,471.6 3.3% 3,021.8 4.0% 2,918.1 3.9%
Due after one year through five years 14,397.4 19.8% 16,036.2 21.8% 15,862.9 21.4% 15,205.4 20.3% 15,353.4 20.4%
Due after five years through ten years 21,303.4 29.3% 20,113.5 27.4% 19,928.2 26.9% 19,830.3 26.4% 19,179.7 25.5%
Due after ten years 22,061.9 30.3% 21,648.0 29.6% 21,505.4 29.2% 22,597.2 30.1% 22,657.9 30.1%
CMO-B 3,375.8 4.6% 3,331.5 4.5% 3,185.7 4.3% 3,474.8 4.6% 3,649.2 4.8%
Mortgage-backed securities 8,112.9 11.2% 8,485.4 11.6% 9,609.0 13.0% 9,516.9 12.7% 9,920.0 13.2%
Other asset-backed securities (3) 1,313.8 1.8% 1,355.7 1.8% 1,409.2 1.9% 1,427.0 1.9% 1,608.8 2.1%
Total fixed maturities, including securities pledged 72,718.8 100.0% 73,394.2 100.0% 73,972.0 100.0% 75,073.4 100.0% 75,287.1 100.0%
Fixed Maturity Securities - NAIC Quality Designation
NAIC Quality Designation
1 41,169.4 56.5% 41,616.0 56.7% 42,428.3 57.4% 42,710.2 56.9% 42,197.7 56.1%
2 28,555.4 39.3% 28,315.4 38.6% 27,962.2 37.8% 28,764.1 38.3% 29,245.1 38.9%
3 2,415.8 3.3% 2,735.2 3.7% 2,661.7 3.6% 2,605.5 3.5% 2,670.7 3.5%
4 329.5 0.5% 456.9 0.6% 551.3 0.7% 578.3 0.8% 699.8 0.9%
5 61.7 0.1% 78.2 0.1% 160.5 0.2% 186.0 0.2% 254.8 0.3%
6 187.0 0.3% 192.5 0.3% 208.0 0.3% 229.3 0.3% 219.0 0.3%
Total fixed maturities, including securities pledged (4) 72,718.8 100.0% 73,394.2 100.0% 73,972.0 100.0% 75,073.4 100.0% 75,287.1 100.0%
Fixed Maturity Securities - ARO Quality Rating
ARO Quality Rating
AAA 15,330.7 21.1% 15,856.2 21.6% 16,486.5 22.3% 16,047.9 21.4% 16,752.5 22.3%
AA 4,342.1 6.0% 4,518.3 6.2% 4,349.5 5.9% 4,338.0 5.8% 4,067.1 5.4%
A 19,793.6 27.2% 19,877.9 27.1% 19,702.3 26.6% 20,115.9 26.8% 19,414.6 25.8%
BBB 28,561.5 39.2% 28,383.4 38.6% 28,310.1 38.3% 29,205.9 38.9% 29,445.1 39.1%
BB 2,676.1 3.7% 2,682.6 3.7% 2,843.4 3.8% 2,877.3 3.8% 2,865.1 3.8%
B and below 2,014.8 2.8% 2,075.8 2.8% 2,280.2 3.1% 2,488.4 3.3% 2,742.7 3.6%
Total fixed maturities, including securities pledged 72,718.8 100.0% 73,394.2 100.0% 73,972.0 100.0% 75,073.4 100.0% 75,287.1 100.0%
(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.
(2) Fixed Maturity Securities includes fixed maturities,available for sale , fixed maturities at fair value using the fair value option and securities pledged to creditors. (3) Subprime asset-backed securities are included as a component of Non-Agency RMBS under this presentation.
(4) ARO ratings do not directly translate into NAIC ratings.
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ING U.S.
Portfolio Results
Three Months Ended Year to Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
(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) 839.4 4.98% 824.1 4.88% 831.0 5.02% 855.6 5.21% 854.6 5.23% 3,350.1 5.03% 3,515.4 5.48%
Equity securities 3.5 4.54% 3.4 4.96% 0.5 0.77% 2.6 3.72% 3.2 3.77% 10.0 3.52% 17.7 5.30%
Mortgage loans 114.2 5.18% 112.8 5.13% 113.6 5.24% 115.4 5.38% 114.0 5.42% 456.0 5.23% 475.6 5.51%
Limited partnerships 61.5 31.85% 116.1 60.40% 27.8 11.46% 23.2 9.37% 17.4 6.98% 228.6 26.30% 52.5 3.66%
Policy loans 29.2 5.58% 29.5 5.66% 29.7 5.69% 29.9 5.57% 30.0 5.60% 118.3 5.63% 121.5 5.65%
Dutch state obligation (Alt-A transaction)—0.00%—0.00%—0.00%—0.00% 1.6 0.91%—0.00% 14.1 1.01%
Short-term investments 0.8 0.16% 0.8 0.12% 1.0 0.17% 0.9 0.12% 1.5 0.10% 3.5 0.14% 5.4 0.12%
Derivatives (1)(6.8) N/A(2.2) N/A(9.0) N/A(11.9) N/A(13.9) N/A(29.9) N/A(56.2) N/A
Pre-payment fee income 25.9 0.12% 14.6 0.07% 25.7 0.12% 25.6 0.12% 17.9 0.08% 91.8 0.11% 69.5 0.08%
Other assets 8.3 N/A 23.6 N/A 3.3 N/A 3.5 N/A 11.0 N/A 38.7 N/A 23.1 N/A
Gross investment income before expenses and fees 1,076.0 5.28% 1,122.7 5.47% 1,023.6 5.07% 1,044.8 5.17% 1,037.3 4.94% 4,267.1 5.26% 4,238.6 5.11%
Expenses and fees(40.7) -0.20%(39.5) -0.19%(40.7) -0.21%(40.8) -0.21%(41.5) -0.20%(161.7) -0.20%(165.0) -0.20%
Total investment income and annualized yield 1,035.3 5.07% 1,083.2 5.28% 982.9 4.86% 1,004.0 4.96% 995.8 4.74% 4,105.4 5.06% 4,073.6 4.91%
Less: Closed Block Variable Annuity (CBVA) investment income net of expenses and
fees 29.5 28.8 20.9 18.4 17.2 97.6 52.7
Total investment income, excluding CBVA 1,005.8 1,054.4 962.0 985.6 978.6 4,007.8 4,020.9
Trading Gains/Losses
Fixed maturities 62.7 36.0 0.8 11.0 45.9 110.5 408.4
Equity securities—0.6(0.1) 0.2 2.4 0.7 4.2
Mortgage loans 0.1 0.2(0.2)—7.7 0.1 7.7
Other investments(3.2) 4.3(3.0) 1.6(21.9)(0.3)(21.9)
Total Trading Gains/Losses, excluding CBVA 59.6 41.1(2.5) 12.8 34.1 111.0 398.4
Impairments
Fixed maturities(13.1)(2.3)(5.4)(11.0)(20.2)(31.8)(43.8)
Equity securities -(1.2)(1.8) —(3.0) -
Mortgage loans — —(7.7) -(7.7)
Other investments -(0.7) — -(0.7)(1.4)
Total Impairments, excluding CBVA(13.1)(4.2)(7.2)(11.0)(27.9)(35.5)(52.9)
Fair Value Adjustments (2) 42.6 19.6(77.7)(10.2)(9.3)(25.7) 113.8
Derivatives, including Change in Fair Value of Derivatives related to
Guaranteed Benefits, excluding CBVA 15.5 17.8 114.6 58.1 22.9 206.0 210.0
Net Realized Investment Gains (losses) and Net Guaranteed Benefit
Hedging Gains (losses), excluding CBVA 104.6 74.3 27.2 49.7 19.8 255.8 669.3
CBVA Investment Income and Realized Capital Gains (Losses)(531.3)(434.2)(387.5)(758.0)(250.1)(2,111.0)(1,330.1)
Business Sold Through MODCO REINS (3)(12.3)(15.6)(62.7)(18.7)(6.9)(109.3) 32.3
Consolidation/eliminations (4) 12.7 25.6 7.3 65.3(70.2) 110.9 24.7
Total Investment Income and Realized Capital Gains (Losses) 579.5 704.5 546.3 323.9 671.2 2,154.2 3,417.1
(1) Operating income from CMO-B portfolio assets, including derivatives, is included in fixed maturity securities.
(2) Fair value adjustments include adjustments related to CMO-B assets carried at fair value, among other income sources.
(3) 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.
(4) 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.
Page 53 of 70
ING U.S.
Alternative Investment Income
(in millions USD) Three Months Ended Year-to-Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Retirement
Average alternative investments 264.8 267.1 260.0 256.0 292.2 262.0 523.1
Alternative investment income 12.6 7.5 8.4 7.9 0.9 36.4 43.2
Annuities
Average alternative investments 170.9 171.5 178.8 189.2 188.5 177.6 284.4
Alternative investment income 9.1 4.5 7.6 4.4 2.0 25.6 25.8
Investment Management
Average alternative investments 127.1 124.2 123.8 120.8 128.2 124.0 107.5
Alternative investment income 10.0 4.9 6.1 2.8 5.6 23.8 41.6
Individual Life
Average alternative investments 125.5 127.7 138.8 132.1 133.5 131.0 197.5
Alternative investment income 7.1 3.4 6.3 3.4 (0.3) 20.2 12.1
Employee Benefits
Average alternative investments 24.5 25.1 25.6 23.6 29.7 24.7 54.2
Alternative investment income 1.4 0.8 1.1 0.6 0.1 3.9 4.5
Total Ongoing Business
Average alternative investments 712.8 715.6 727.0 721.7 772.1 719.3 1,166.7
Alternative investment income 40.2 21.1 29.5 19.1 8.3 109.9 127.2
Corporate
Average alternative investments 101.6 95.8 95.5 98.1 101.8 97.8 95.5
Alternative investment income 7.2 4.8 (5.7) 2.7 5.1 9.0 23.4
Closed Blocks (1)
Average alternative investments 51.7 58.8 59.4 62.4 41.5 58.1 88.4
Alternative investment income 3.0 2.5 2.4 1.8 4.0 9.7 11.6
Total ING U.S.(2)
Average alternative investments 866.1 870.2 881.9 882.2 915.4 875.2 1,350.6
Alternative investment income 50.4 28.4 26.2 23.6 17.4 128.6 162.2
(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. (2) Alternative investment income excludes the net investment income from Lehman Recovery/LIHTC in the 12/31/13 and 9/30/13 periods and net loss on the sale of certain alternative investments during the 12/31/12 year-to-date period.
Page 54 of 70
ING U.S.
Unrealized Gains (Losses)
(in millions USD)
Fixed Maturities, available for sale (including securities pledged)
Aging Schedule
Balances as of
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
Amount% of Total Amount% of Total Amount% of Total Amount% of Total Amount% of Total
Less than 20%(1,087.3) 95.7%(992.6) 92.9%(929.8) 92.7%(191.9) 71.3%(150.6) 51.4%
20% or more for less than six months(18.6) 1.6%(47.3) 4.4%(35.3) 3.5%(3.9) 1.5%(11.4) 3.9%
20% or more for six months or greater(30.6) 2.7%(29.1) 2.7%(38.2) 3.8%(73.0) 27.2%(130.7) 44.7%
Total Unrealized Loss(1,136.5) 100.0%(1,069.0) 100.0%(1,003.3) 100.0%(268.8) 100.0%(292.7) 100.0%
Total Unrealized Gain 4,301.8 4,594.2 4,919.9 7,336.0 8,155.7
Net Unrealized Gain/Loss 3,165.3 3,525.2 3,916.6 7,067.2 7,863.0
Fixed Maturities Securities—Security Sector—Net Unrealized
Gain/(Loss)*
US Treasuries and US government agencies and authorities 108.1 255.7 348.7 638.7 768.2
US Corporate—Public 1,173.7 1,238.2 1,458.9 3,116.0 3,592.5
US Corporate—Private 294.6 354.2 363.5 561.5 585.3
Foreign Government / Agency 7.4 11.9 11.0 84.0 120.6
Foreign Corporate—Public 228.2 202.9 207.4 559.7 640.8
Foreign Corporate—Private 459.5 509.1 503.6 793.1 831.9
State, municipalities, and political subdivisions 9.1 11.0 14.2 29.2 32.6
Residential mortgaged-backed securities:
CMO-B Agency 376.5 397.0 422.3 505.9 551.1
CMO-B Non-Agency 118.1 115.5 117.1 128.5 136.0
Agency(7.5) 13.1 7.9 55.8 67.4
Non-Agency 36.7 13.1 0.3 18.9(41.8)
Total Residential mortgage-backed securities 523.8 538.7 547.6 709.1 712.7
Commercial Mortgage-Backed Securities 324.2 358.3 411.3 511.8 507.5
Other Asset-Backed Securities* 36.7 45.2 50.4 64.1 70.9
Total Net Unrealized Gain/Loss 3,165.3 3,525.2 3,916.6 7,067.2 7,863.0
* Subprime asset-backed securities are included as a component of Non-Agency RMBS under this presentation.
Page 55 of 70
ING U.S.
Asset Backed Securities
(in millions USD)
RMBS Balances by Collateral Type
Balances as of
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
Amortized Amortized Amortized Amortized Amortized
Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost
Prime Agency 5,826.0 5,377.7 5,911.2 5,410.4 6,040.8 5,508.4 5,639.6 4,939.7 5,844.8 5,070.0
Prime / Non-Agency 933.7 786.5 1,021.6 872.1 1,148.9 1,000.6 1,300.0 1,116.1 1,399.4 1,215.3
Alt-A RMBS 353.5 307.4 358.8 326.0 376.3 344.6 402.0 365.2 411.3 389.2
Subprime Mortgage-Backed Securities 623.4 614.7 657.7 657.5 802.8 806.5 836.9 836.3 967.3 998.0
Total 7,736.6 7,086.3 7,949.3 7,266.0 8,368.8 7,660.1 8,178.5 7,257.3 8,622.8 7,672.5
CMBS Balances by Year of Origination
Balances as of
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
Amortized Amortized Amortized Amortized Amortized
Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost
2013 197.2 200.4 — — — —
2012 8.8 8.9 — — — —
2008 11.4 9.3 11.5 9.3 11.4 9.2 11.8 9.4 12.9 11.1
2007 1,148.1 1,017.8 1,264.7 1,123.6 1,636.3 1,457.6 1,810.3 1,583.0 1,850.3 1,636.8
2006 1,252.7 1,127.4 1,338.8 1,201.6 1,390.0 1,247.1 1,475.7 1,300.7 1,493.7 1,315.8
2005 and prior 1,133.9 1,064.1 1,252.6 1,174.8 1,388.2 1,300.7 1,515.4 1,408.3 1,589.5 1,475.2
Total 3,752.1 3,427.9 3,867.6 3,509.3 4,425.9 4,014.6 4,813.2 4,301.4 4,946.4 4,438.9
Other ABS Balances by Loan
Classification
Balances as of
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
Amortized Amortized Amortized Amortized Amortized
Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost
Credit Card Receivables 558.1 538.5 552.8 529.4 564.1 538.5 591.5 558.0 651.7 614.8
Automobile Receivables 447.9 447.1 471.3 470.2 500.1 498.9 471.1 468.1 535.2 531.1
CLO’s * 41.7 36.6 49.5 48.9 49.1 48.4 53.6 53.8 66.1 68.0
Other 266.1 254.9 282.1 268.8 295.9 280.3 310.8 291.0 355.8 334.2
Total 1,313.8 1,277.1 1,355.7 1,317.3 1,409.2 1,366.1 1,427.0 1,370.9 1,608.8 1,548.1
* Excludes consolidated CLO’s
Page 56 of 70
ING U.S.
RMBS Securities Summary
(in millions USD)
RMBS*
By Rating and Origination Year
As of December 31, 2013
Prime Agency Prime/Non-Agency Alt-A RMBS Subprime Mortgage-Backed Total
Securities
NAIC Designation Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost
1 5,810.9 5,360.5 647.1 580.9 273.9 238.9 474.9 444.3 7,206.8 6,624.6
2 — 38.4 37.3 38.1 33.3 99.5 115.0 176.0 185.6
3 8.8 10.9 46.8 45.4 23.5 23.0 26.9 30.9 106.0 110.2
4 6.3 6.3 3.3 0.9 15.2 9.4 14.9 18.0 39.7 34.6
5 — 50.7 35.9 — 5.3 3.4 56.0 39.3
6 — 147.4 86.1 2.8 2.8 1.9 3.1 152.1 92.0
Total by rating 5,826.0 5,377.7 933.7 786.5 353.5 307.4 623.4 614.7 7,736.6 7,086.3
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 5,789.5 5,337.6 11.8 11.4 0.2 0.2 1.9 1.9 5,803.4 5,351.1
AA 3.1 3.1 32.4 30.3 — 7.2 7.1 42.7 40.5
A — 39.5 37.3 5.2 4.8 33.8 34.6 78.5 76.7
BBB — 130.5 125.8 13.8 14.1 44.7 46.2 189.0 186.1
BB 8.9 10.9 70.0 65.5 17.7 17.6 57.4 62.4 154.0 156.4
B and below 24.5 26.1 649.5 516.2 316.6 270.7 478.4 462.5 1,469.0 1,275.5
Total by rating 5,826.0 5,377.7 933.7 786.5 353.5 307.4 623.4 614.7 7,736.6 7,086.3
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 601.1 610.1 — — — 601.1 610.1
2012 762.1 784.4 — — — 762.1 784.4
2011 1,046.0 1,050.1 — — — 1,046.0 1,050.1
2010 818.8 809.7 27.3 26.3 — — 846.1 836.0
2009 352.9 346.7 11.0 11.1 — — 363.9 357.8
2008 203.0 190.5 — — — 203.0 190.5
2007 416.6 379.4 143.6 132.8 77.4 67.6 182.0 171.7 819.6 751.5
2006 464.6 349.4 229.3 155.7 93.7 68.3 149.6 138.9 937.2 712.3
2005 and prior 1,160.9 857.4 522.5 460.6 182.4 171.5 291.8 304.1 2,157.6 1,793.6
Total by origination year 5,826.0 5,377.7 933.7 786.5 353.5 307.4 623.4 614.7 7,736.6 7,086.3
* Subprime mortgage-backed securities are included in RMBS under this presentation
Page 57 of 70
ING U.S.
CMBS and Other Asset-Backed Securities Summary
(in millions USD)
CMBS
By Rating and Vintage
As of December 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
2013 197.2 200.4 — — — — — 197.2 200.4
2012 8.8 8.9 — — — — — 8.8 8.9
2008 — — — 11.4 9.3 — — 11.4 9.3
2007 47.9 45.0 371.7 337.1 152.2 137.6 201.0 165.6 222.5 206.8 152.8 125.7 1,148.1 1,017.8
2006 566.8 525.8 187.6 172.0 152.8 139.0 201.4 180.5 91.6 68.2 52.5 41.9 1,252.7 1,127.4
2005 and prior 731.6 704.5 168.2 158.8 121.9 113.9 62.2 55.3 36.7 25.8 13.3 5.8 1,133.9 1,064.1
Total by origination year 1,552.3 1,484.6 727.5 667.9 426.9 390.5 476.0 410.7 350.8 300.8 218.6 173.4 3,752.1 3,427.9
Other Asset-Backed Securities*
By Rating and Classification
As of December 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 536.2 517.6 447.9 447.1 12.3 10.9 235.1 225.6 1,231.5 1,201.2
AA — — 21.0 18.6 1.9 2.5 22.9 21.1
A 21.9 20.9 — 8.4 7.1 15.0 15.4 45.3 43.4
BBB — — — 11.3 10.6 11.3 10.6
BB — — — 0.6 0.6 0.6 0.6
B and below — — — 2.2 0.2 2.2 0.2
Total by rating 558.1 538.5 447.9 447.1 41.7 36.6 266.1 254.9 1,313.8 1,277.1
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
1 558.1 538.5 447.9 447.1 41.7 36.6 252.0 243.5 1,299.7 1,265.7
2 — — — 11.3 10.6 11.3 10.6
3 — — — 0.6 0.6 0.6 0.6
4 — — — — —
5 — — — — —
6 — — — 2.2 0.2 2.2 0.2
Total by rating 558.1 538.5 447.9 447.1 41.7 36.6 266.1 254.9 1,313.8 1,277.1
* Subprime asset-backed securities are excluded from Other Asset-Backed Securities and included in Non-Agency RMBS under this presentation.
** Excludes consolidated CLO’s
Page 58 of 70
ING U.S.
Mortgage Loans on Real Estate
(in millions USD)
Mortgage Loans on Real Estate by Region and
Property Type
Balances as of
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
U.S. Region Amount% of Total Amount% of Total Amount% of Total Amount% of Total Amount% of Total
Pacific 2,281.8 24.5% 2,054.5 22.7% 2,090.2 23.3% 2,025.5 22.7% 1,973.9 22.8%
South Atlantic 1,936.0 20.8% 1,851.4 20.5% 1,706.6 19.1% 1,725.9 19.3% 1,687.6 19.4%
Middle Atlantic 1,112.0 11.9% 1,107.2 12.3% 1,142.8 12.8% 1,000.5 11.2% 1,059.5 12.2%
East North Central 1,037.5 11.1% 962.7 10.7% 1,006.7 11.3% 1,020.1 11.4% 962.8 11.1%
West South Central 1,122.3 12.0% 1,232.9 13.7% 1,246.3 14.0% 1,301.6 14.5% 1,176.3 13.6%
Mountain 790.4 8.5% 749.7 8.3% 711.1 8.0% 711.1 8.9% 718.2 8.3%
West North Central 517.2 5.6% 519.4 5.8% 502.7 5.6% 535.0 6.0% 537.5 6.2%
New England 318.1 3.4% 318.9 3.5% 322.1 3.6% 334.8 3.7% 334.6 3.9%
East South Central 200.7 2.2% 222.9 2.5% 204.7 2.3% 209.0 2.3% 215.8 2.5%
Total Commercial Mortgage Loans (1) 9,316.0 100.0% 9,019.6 100.0% 8,933.2 100.0% 8,953.3 100.0% 8,666.2 100.0%
Property Type
Industrial 2,848.0 30.6% 2,998.0 33.3% 3,183.5 35.7% 3,385.2 37.7% 3,361.5 38.8%
Retail 2,936.9 31.5% 2,795.9 31.0% 2,653.1 29.7% 2,609.9 29.2% 2,350.2 27.1%
Office 1,242.2 13.3% 1,243.3 13.8% 1,280.9 14.3% 1,243.3 13.9% 1,284.7 14.8%
Apartments 1,296.1 13.9% 1,048.6 11.6% 994.1 11.1% 935.8 10.5% 952.1 11.0%
Hotel/Motel 430.6 4.6% 364.1 4.0% 323.3 3.6% 324.1 3.6% 280.6 3.2%
Other 378.1 4.1% 382.3 4.2% 341.0 3.8% 353.9 4.0% 363.1 4.2%
Mixed Use 184.1 2.0% 187.4 2.1% 157.3 1.8% 101.1 1.1% 74.0 0.9%
Total Commercial Mortgage Loans (1) 9,316.0 100.0% 9,019.6 100.0% 8,933.2 100.0% 8,953.3 100.0% 8,666.2 100.0%
Loan Size
Under $5 million 1,516.5 16.3% 1,546.5 17.1% 1,607.7 18.0% 1,662.9 18.6% 1,683.0 19.4%
$5 million but less than $10 million 1,582.2 17.0% 1,548.9 17.2% 1,601.5 17.9% 1,694.8 18.9% 1,641.1 18.9%
$10 million but less than $20 million 1,899.5 20.4% 1,746.6 19.4% 1,725.0 19.3% 1,639.0 18.3% 1,578.6 18.2%
$20 million but less than $30 million 1,077.7 11.6% 1,045.0 11.6% 1,085.7 12.2% 966.1 10.8% 753.2 8.7%
$30 million and over 3,240.1 34.7% 3,132.6 34.7% 2,913.3 32.6% 2,990.5 33.4% 3,010.3 34.8%
Total Commercial Mortgage Loans (1) 9,316.0 100.0% 9,019.6 100.0% 8,933.2 100.0% 8,953.3 100.0% 8,666.2 100.0%
Other Stats as ratios
LTV—Origination 59.0% 58.8% 58.5% 58.1% 57.7%
LTV—Current 55.5% 56.1% 55.5% 55.3% 55.0%
Debt Service Coverage 2.0 1.9 1.9 1.9 2.0
Other Stats in USD millions
60+day delinq (incl in process of foreclosure)
US GAAP Book Value 5.1 5.1 9.0 9.0 9.0
Allowance for loan losses 3.8 4.0 4.1 3.9 3.9
(1) Total Commercial Mortgage Loans shown do not include allowance for mortgage loan credit losses
Page 59 of 70
ING U.S.
U.S. and Foreign Corporate Securities
(in millions USD)
Summary of Corporate Securities by
Industry Category
Balances as of
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
Fair Value% of Total Fair Value% of Total Fair Value% of Total Fair Value% of Total Fair Value% of Total
Type Industry
Communications 3,835.1 9.8% 3,849.3 9.9% 3,893.5 10.2% 4,056.8 10.4% 3,670.9 9.6%
Financial 6,177.7 15.8% 5,950.3 15.2% 5,629.2 14.7% 5,826.4 15.0% 5,579.5 14.7%
Industrial and other companies 21,556.7 55.1% 21,770.6 55.8% 21,014.9 55.0% 21,203.8 54.4% 21,065.0 55.4%
Public Utilities 6,472.2 16.6% 6,439.4 16.5% 6,641.3 17.4% 6,813.6 17.5% 6,718.7 17.6%
Transportation 1,036.1 2.7% 1,021.7 2.6% 1,037.6 2.7% 1,044.4 2.7% 1,040.0 2.7%
Sub-total 39,077.8 100.0% 39,031.3 100.0% 38,216.5 100.0% 38,945.0 100.0% 38,074.1 100.0%
Communications 400.7 2.9% 405.2 3.0% 426.2 3.2% 491.2 3.6% 499.6 3.6%
Financial 957.0 7.0% 948.2 7.0% 918.6 6.8% 917.0 6.7% 1,036.1 7.5%
Industrial and other companies 8,706.4 63.6% 8,741.8 64.7% 8,660.6 64.0% 8,511.4 61.7% 8,587.4 61.8%
Private Utilities 3,156.2 23.0% 2,926.5 21.7% 3,006.5 22.3% 3,302.1 24.0% 3,356.0 24.2%
Transportation 485.6 3.5% 489.7 3.6% 494.6 3.7% 547.1 4.0% 405.2 2.9%
Sub-total 13,705.9 100.0% 13,511.4 100.0% 13,506.5 100.0% 13,768.8 100.0% 13,884.3 100.0%
Communications 4,235.8 8.0% 4,254.5 8.1% 4,319.7 8.4% 4,548.0 8.6% 4,170.5 8.0%
Financial 7,134.7 13.5% 6,898.5 13.1% 6,547.8 12.7% 6,743.4 12.8% 6,615.6 12.7%
Industrial and other companies 30,263.1 57.4% 30,512.4 58.1% 29,675.5 57.3% 29,715.2 56.4% 29,652.4 57.1%
Total Utilities 9,628.4 18.2% 9,365.9 17.8% 9,647.8 18.6% 10,115.7 19.2% 10,074.7 19.4%
Transportation 1,521.7 2.9% 1,511.4 2.9% 1,532.2 3.0% 1,591.5 3.0% 1,445.2 2.8%
Total 52,783.7 100.0% 52,542.7 100.0% 51,723.0 100.0% 52,713.8 100.0% 51,958.4 100.0%
Page 60 of 70
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 Decembeer 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% 5.0 0.6% 308.3 4.2% 313.3 3.7% 299.5 3.7%
Italy—0.0%—0.0% 268.1 3.6% 268.1 3.1% 253.5 3.1%
Portugal—0.0%—0.0% 10.1 0.1% 10.1 0.1% 7.7 0.1%
Spain—0.0%—0.0% 242.8 3.3% 242.8 2.8% 230.3 2.8%
Total Peripheral Euro-Zone—0.0% 5.0 0.6% 829.3 11.2% 834.3 9.7% 791.0 9.7%
Austria—0.0%—0.0% 15.8 0.2% 15.8 0.2% 15.0 0.2%
Belgium 36.1 12.9%—0.0% 340.5 4.6% 376.6 4.4% 331.6 4.1%
Bulgaria 5.8 2.1%—0.0%—0.0% 5.8 0.1% 5.7 0.1%
Croatia 27.4 9.8%—0.0%—0.0% 27.4 0.3% 25.6 0.3%
Czech Republic—0.0%—0.0% 9.9 0.1% 9.9 0.1% 10.1 0.1%
Denmark—0.0% 10.6 1.2% 121.5 1.6% 132.1 1.5% 124.0 1.5%
Finland—0.0%—0.0% 41.9 0.6% 41.9 0.5% 40.0 0.5%
France—0.0% 124.0 13.8% 448.6 6.1% 572.6 6.7% 542.0 6.7%
Germany—0.0% 52.7 5.9% 586.2 7.9% 638.9 7.5% 602.9 7.4%
Hungary 6.2 2.2%—0.0%—0.0% 6.2 0.1% 5.9 0.1%
Iceland—0.0%—0.0%—0.0%—0.0%—0.0%
Kazakhstan 57.6 20.6%—0.0% 6.7 0.1% 64.3 0.8% 60.7 0.7%
Latvia 4.9 1.8%—0.0%—0.0% 4.9 0.1% 4.6 0.1%
Lithuania 33.1 11.8%—0.0%—0.0% 33.1 0.4% 30.5 0.4%
Luxembourg—0.0%—0.0% 24.7 0.3% 24.7 0.3% 23.4 0.3%
Netherlands—0.0% 179.2 19.9% 1,079.0 14.7% 1,258.2 14.6% 1,185.0 14.5%
Norway—0.0% 3.4 0.4% 275.8 3.7% 279.2 3.3% 281.5 3.5%
Russian Federation 82.6 29.4%—0.0% 95.6 1.3% 178.2 2.1% 167.7 2.1%
Slovakia 5.2 1.9%—0.0%—0.0% 5.2 0.1% 5.0 0.1%
Slovenia—0.0%—0.0%—0.0%—0.0%—0.0%
Sweden—0.0% 42.4 4.7% 124.5 1.7% 166.9 2.0% 153.6 1.9%
Switzerland—0.0% 148.8 16.6% 531.6 7.2% 680.4 8.0% 637.1 7.9%
Turkey 21.1 7.5%—0.0% 41.0 0.6% 62.0 0.7% 65.5 0.8%
United Kingdom—0.0% 332.3 36.9% 2,806.4 38.1% 3,138.7 36.5% 3,004.8 36.9%
Total Non-Peripheral Europe 280.0 100.0% 893.4 99.4% 6,549.6 88.8% 7,723.0 90.3% 7,322.3 90.3%
Total Europe 280.0 100.0% 898.4 100.0% 7,378.9 100.0% 8,557.3 100.0% 8,113.3 100.0%
Page 61 of 70
ING U.S.
Additional Information
Page 62 of 70
ING U.S.
Adjustments to Operating Earnings by Segment
(in millions USD) Three Months Ended Year-to-Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
DAC/VOBA and other intangibles unlocking (1)
Retirement 4.0 40.0(1.4) 3.0(8.9) 45.6 5.8
Annuities 26.8 39.6 9.9 7.0(44.4) 83.3(86.2)
Total Retirement Solutions 30.8 79.6 8.5 10.0(53.3) 128.9(80.4)
Investment Management — — — -
Individual Life(7.8) 20.2(4.9)(2.7) 4.6 4.8 3.4
Employee Benefits(0.5) — —(0.5) -
Total Insurance Solutions(8.3) 20.2(4.9)(2.7) 4.6 4.3 3.4
Ongoing Business 22.5 99.8 3.6 7.3(48.7) 133.2(77.0)
Corporate — — — -
Total Closed Blocks — — — -
Total DAC/VOBA and other intangibles unlocking 22.5 99.8 3.6 7.3(48.7) 133.2(77.0)
Additional adjustments (2)
Retirement 0.2 12.7 ——12.9(31.3)
Annuities 0.8 12.7 ——13.5(11.2)
Total Retirement Solutions 1.0 25.4 ——26.4(42.5)
Investment Management 1.7 11.5 ——13.2 2.2
Individual Life 3.1 36.6 ——39.7 14.8
Employee Benefits 0.3 4.0 ——4.3 0.1
Total Insurance Solutions 3.4 40.6 ——44.0 14.9
Ongoing Business 6.1 77.5 ——83.6(25.4)
Corporate(43.8)(47.6)(43.2)(41.9)(39.2)(176.5)(127.8)
Total Closed Blocks(0.4) 0.6 ——0.2(5.8)
Total non-recurring items and interest expense(38.1) 30.5(43.2)(41.9)(39.2)(92.7)(159.0)
Total adjustments to operating earnings
Retirement 4.2 52.7(1.4) 3.0(8.9) 58.5(25.5)
Annuities 27.6 52.3 9.9 7.0(44.4) 96.8(97.4)
Total Retirement Solutions 31.8 105.0 8.5 10.0(53.3) 155.3(122.9)
Investment Management 1.7 11.5 ——13.2 2.2
Individual Life(4.7) 56.8(4.9)(2.7) 4.6 44.5 18.2
Employee Benefits(0.2) 4.0 ——3.8 0.1
Total Insurance Solutions(4.9) 60.8(4.9)(2.7) 4.6 48.3 18.3
Ongoing Business 28.6 177.3 3.6 7.3(48.7) 216.8(102.4)
Corporate(43.8)(47.6)(43.2)(41.9)(39.2)(176.5)(127.8)
Total Closed Blocks(0.4) 0.6 ——0.2(5.8)
Total adjustments to operating earnings(15.6) 130.3(39.6)(34.6)(87.9) 40.5(236.0)
(1) DAC/VOBA and other intangibles unlocking excludes unlocking on net investment income
from Lehman Recovery/LIHTC
(2) Additional adjustments include impact of portfolio restructuring, interest expenses, and the
Net gain from Lehman Recovery/LIHTC
Page 63 of 70
ING U.S.
Average Capital and Financial Leverage
Balances as of
(in millions USD, unless otherwise indicated) 12/31/13 12/31/12
ING U.S., Inc. Shareholders’ Equity 13,272.2 13,874.9
AOCI 1,849.1 3,710.7
ING U.S., Inc. Shareholders’ Equity, excluding AOCI 11,423.1 10,164.2
Financial Leverage (1) 3,514.7 3,808.3
Total Capital 14,937.8 13,972.5
Financial Leverage to Total Capital 23.5% 27.3%
Average Capital (average for period) 14,455.2 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) 12/31/13 12/31/12
Short-term Debt—1,064.6
Long-term Debt 3,514.7 3,171.1
Total Debt 3,514.7 4,235.7
Less: operating leverage -(688.5)
Plus: loans from subsidiaries—261.1
Financial Leverage 3,514.7 3,808.3
Page 64 of 70
ING U.S.
Operating Revenues by Segment
Three Months Ended Year-to-Date
(in millions USD) 12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Retirement 612.4 606.9 596.9 583.2 570.5 2,399.4 2,271.9
Annuities 313.9 319.1 304.0 307.6 317.4 1,244.6 1,307.0
Total Retirement Solutions 926.3 926.0 900.9 890.8 887.9 3,644.0 3,578.9
Investment Management 167.1 160.1 148.6 131.9 142.5 607.7 545.5
Individual Life 692.9 717.1 694.8 687.1 694.2 2,791.9 2,793.9
Employee Benefits 316.5 316.2 311.7 318.1 313.6 1,262.5 1,251.2
Total Insurance Solutions 1,009.4 1,033.3 1,006.5 1,005.2 1,007.8 4,054.4 4,045.1
Ongoing Business 2,102.8 2,119.4 2,056.0 2,027.9 2,038.2 8,306.1 8,169.5
Corporate 33.6 28.8 7.9 17.1 19.2 87.4 65.9
Total Closed Blocks 27.0 30.7 33.6 45.5 38.2 136.8 171.0
Total operating revenues 2,163.4 2,178.9 2,097.5 2,090.5 2,095.6 8,530.3 8,406.4
Adjustments:
Closed Block Variable Annuity(155.8)(66.1)(60.3)(444.0) 68.1(726.2)(70.0)
Net realized investment gains (losses) and
related charges and adjustments 129.1 39.8(41.9) 30.4 49.5 157.4 603.4
Gain (loss) on change in fair value of derivatives
related to guaranteed benefits(21.8) 35.1 70.1 20.6(29.5) 104.0 83.1
Revenues related to business exited through
reinsurance or divestment(5.4)(2.9)(55.8)(12.1) 1.1(76.2) 64.6
Revenues (loss) attributable to noncontrolling interests 157.1 152.9 60.9 40.3(34.0) 411.2 313.8
Other adjustments to operating revenues* 97.4 97.6 70.1 92.9 53.0 358.0 214.0
Total revenue 2,364.0 2,435.3 2,140.6 1,818.6 2,203.8 8,758.5 9,615.3
* Other adjustments to operating revenue includes: 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.
Page 65 of 70
ING U.S.
Ongoing Business Sources of Earnings Reconciliation
(in millions USD) Three Months Ended Year-to-Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Investment spread and other investment income:
Net investment income and net realized gains (losses)
Retirement 397.4 394.5 388.8 388.9 380.1 1,569.6 1,499.9
Annuities 283.4 295.9 283.5 287.1 298.4 1,149.9 1,223.3
Investment Management 11.7 16.4 6.1 2.8 5.6 37.0 41.6
Individual Life 224.5 258.7 215.4 216.9 213.1 915.5 913.8
Employee Benefits 29.2 32.1 27.9 28.4 27.0 117.6 114.3
Total net investment income and net realized gains (losses) 946.2 997.6 921.7 924.1 924.2 3,789.6 3,792.9
Total Ongoing Business 946.2 997.6 921.7 924.1 924.2 3,789.6 3,792.9
Adjustments:
Interest credited(553.7)(553.8)(551.3)(552.2)(567.1)(2,211.0)(2,298.0)
Other(7.8)(6.4)(9.4)(8.2)(14.7)(31.8)(65.9)
Total adjustments(561.5)(560.2)(560.7)(560.4)(581.8)(2,242.8)(2,363.9)
Ongoing investment spread and other investment income 384.7 437.4 361.0 363.7 342.4 1,546.8 1,429.0
Fee based margin:
Fee income
Retirement 196.1 191.0 189.0 183.8 182.7 759.9 715.0
Annuities 12.2 11.8 11.2 9.9 10.4 45.1 35.5
Investment Management 141.4 135.4 132.3 121.7 122.6 530.8 474.7
Individual Life 278.5 278.4 280.0 276.8 282.0 1,113.7 1,115.7
Employee Benefits 15.9 15.5 15.8 15.8 15.9 63.0 62.5
Total Fee Income 644.1 632.1 628.3 608.0 613.6 2,512.5 2,403.4
Other revenue
Retirement 18.2 20.7 15.3 10.0 6.8 64.2 52.1
Annuities 3.9 3.9 2.6 2.8 2.3 13.2 12.3
Investment Management 14.0 8.3 10.2 7.4 14.3 39.9 29.2
Individual Life 4.6 5.3 7.3 7.6 7.4 24.8 26.6
Employee Benefits(1.0)(1.0)(1.0)(1.0)(0.9)(4.0)(3.7)
Total other revenue 39.7 37.2 34.4 26.8 29.9 138.1 116.5
Total Ongoing Business 683.8 669.3 662.7 634.8 643.5 2,650.6 2,519.9
Adjustments:
Surrender fees and MVA charges(6.5)(10.6)(11.3)(1.5) 2.8(29.9)(22.7)
Insurance Solutions FAS 97 fees and unearned revenue reserve amortization/unlocking(288.9)(288.3)(288.7)(285.6)(291.0)(1,151.5)(1,149.7)
Other 0.3(0.7) 1.5(4.1)(5.3)(3.0)(10.0)
Total adjustments(295.1)(299.6)(298.5)(291.2)(293.5)(1,184.4)(1,182.4)
Ongoing fee based margin 388.7 369.7 364.2 343.6 350.0 1,466.2 1,337.5
Page 66 of 70
ING U.S.
Ongoing Business Sources of Earnings Reconciliation
(in millions USD) Three Months Ended Year-to-Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Net underwriting gain (loss) and other revenue:
Premiums
Retirement 0.7 0.7 3.8 0.5 0.9 5.7 4.9
Annuities 14.4 7.5 6.7 7.8 6.3 36.4 35.9
Investment Management — — — -
Individual Life 185.3 174.7 192.1 185.8 191.7 737.9 737.8
Employee Benefits 272.4 269.6 269.0 274.9 271.6 1,085.9 1,078.1
Total premiums 472.8 452.5 471.6 469.0 470.5 1,865.9 1,856.7
Interest credited and other policyholder benefits
Retirement(218.2)(213.5)(212.1)(204.6)(212.9)(848.4)(842.2)
Annuities(180.4)(182.2)(183.9)(184.4)(192.3)(730.9)(854.1)
Investment Management — — — -
Individual Life(518.8)(468.7)(512.4)(501.6)(489.1)(2,001.5)(2,034.4)
Employee Benefits(223.9)(223.7)(213.2)(242.6)(220.9)(903.4)(892.1)
Total interest credited and other policyholder benefits(1,141.3)(1,088.1)(1,121.6)(1,133.2)(1,115.2)(4,484.2)(4,622.8)
Total Ongoing Business(668.5)(635.6)(650.0)(664.2)(644.7)(2,618.3)(2,766.1)
Adjustments:
Interest credited 553.7 553.8 551.3 552.2 567.1 2,211.0 2,298.0
Surrender fees and MVA charges 6.5 10.6 11.3 1.5(2.8) 29.9 22.7
Insurance Solutions FAS 97 fees and unearned revenue reserve amortization/unlocking 289.6 297.8 287.2 284.9 293.9 1,159.5 1,172.6
Sales inducements amortization and unlocking 6.4 6.1 12.0 10.1 11.7 34.6 49.7
FAS 113 and SOP 03-1 amortization and unlocking 6.6(23.1) 7.2 6.4 2.3(2.9) 23.7
Other(13.6)(10.7)(14.9)(11.0)(5.4)(50.2)(5.8)
Total adjustments 849.2 834.5 854.1 844.1 866.8 3,381.9 3,560.9
Ongoing net underwriting gain (loss) and other revenue 180.7 198.9 204.1 179.9 222.1 763.6 794.8
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ING U.S.
Ongoing Business Sources of Earnings Reconciliation
(in millions USD) Three Months Ended Year-to-Date
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12 12/31/13 12/31/12
Administrative expenses and trail commissions:
Operating and interest expense
Retirement(220.1)(205.8)(210.0)(204.0)(204.7)(839.9)(826.1)
Annuities(32.1)(31.7)(32.2)(31.0)(30.4)(127.0)(125.2)
Investment Management(114.2)(106.1)(107.5)(101.8)(111.3)(429.6)(411.0)
Individual Life(88.9)(83.9)(94.8)(91.8)(102.8)(359.4)(401.0)
Employee Benefits(57.1)(58.5)(60.5)(60.0)(60.7)(236.1)(236.2)
Total administrative expenses and trail commissions(512.4)(486.0)(505.0)(488.6)(509.9)(1,992.0)(1,999.5)
Total Ongoing Business(512.4)(486.0)(505.0)(488.6)(509.9)(1,992.0)(1,999.5)
Adjustments:
Other 21.9 17.9 22.9 22.2 24.6 84.9 81.3
Total adjustments 21.9 17.9 22.9 22.2 24.6 84.9 81.3
Ongoing administrative expenses and trail commissions(490.5)(468.1)(482.1)(466.4)(485.3)(1,907.1)(1,918.2)
DAC/VOBA and other intangibles amortization and unlocking:
Net amortization of DAC/VOBA
Retirement(35.5)(0.3)(42.7)(36.8)(44.7)(115.3)(155.0)
Annuities(18.2)(8.4)(28.4)(37.9)(88.4)(92.9)(225.5)
Investment Management — — — -
Individual Life(38.2)(47.5)(47.6)(42.9)(47.7)(176.2)(162.3)
Employee Benefits(5.0)(4.9)(3.9)(3.1)(3.4)(16.9)(13.5)
Total net amortization of DAC/VOBA(96.9)(61.1)(122.6)(120.7)(184.2)(401.3)(556.3)
Total Ongoing Business(96.9)(61.1)(122.6)(120.7)(184.2)(401.3)(556.3)
Adjustments
Sales inducements amortization and unlocking(6.4)(6.1)(12.0)(10.1)(11.7)(34.6)(49.7)
FAS 113 and SOP 03-1 amortization and unlocking(6.6) 23.1(7.2)(6.4)(2.3) 2.9(23.7)
Unearned revenue reserve amortization and unlocking(0.7)(9.5) 1.5 0.7(2.9)(8.0)(22.9)
Other(0.8)(0.1)(0.1) 1.1 0.8 0.1 0.4
Total adjustments(14.5) 7.4(17.8)(14.7)(16.1)(39.6)(95.9)
Ongoing DAC/VOBA and other intangibles amortization and unlocking(111.4)(53.7)(140.4)(135.4)(200.3)(440.9)(652.2)
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ING U.S.
Fixed Maturity Securities—Hannover Life Re Modco Reinsurance
(in millions USD)
Total investments, after consolidation (See Portfolio Composition page), 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
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
Fixed Maturity Securities—Hannover Life Re Modco Reinsurance
Security Sector
U.S. Government agencies and authorities 73.9 52.1 87.1 22.5 41.9
U.S. Corporate—Public 838.8 861.2 896.6 782.1 798.7
Foreign Government / Agency—3.4 3.4 3.5 2.0
Foreign Corporate—Public 132.6 137.8 138.5 144.0 144.2
State, municipalities and political subdivisions 102.6 104.1 108.2 118.3 119.4
Residential mortgaged-backed securities:
Agency 90.2 97.2 107.9 124.4 133.4
Non—Agency 1.1 1.2 1.5 1.8 2.2
Total Residential mortgage-backed securities 91.3 98.4 109.4 126.2 135.6
Commercial mortgage-backed securities 91.4 94.3 100.3 108.0 114.7
Other asset-backed securities 18.1 18.5 19.0 22.2 25.8
Total fixed maturities, including securities pledged 1,348.7 1,369.8 1,462.5 1,326.8 1,382.3
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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
Junior Subordinated Debt bb+ BB BB Ba1 (hyb)
Lion Connecticut Holdings, Inc.
Long-Term Issuer Credit NR NR BBB- Baa3
Investor Information
Corporate Offices: Media Contact: Investor Contact:
ING U.S. Christopher Breslin Darin Arita
230 Park Avenue 212-309-8941 212-309-8999
New York, New York 10169 Christopher.Breslin@us.ing.com IR@us.ing.com
NYSE Ticker: Web Site:
VOYA investors.ing.us
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