Exhibit 99.2
Quarterly Investor Supplement
March 31, 2014
This report should be read in conjunction Voya Financial, Inc.’s Quarterly Report on Form 10-Q for the three months ended March 31, 2014. Voya Financial’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 our website at investors.voya.com. All information is unaudited.
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Table of Contents
Page Page
Consolidated Individual Life
Explanatory Note on Non-GAAP Financial Information 3-4 Sources of Operating Earnings 36
Organizational Chart 5 Operating Earnings 37
Key Metrics 6 Key Metrics 38
Adjusted Operating Return on Capital and Return on Equity 7 Employee Benefits
Adjusted Operating Earnings Before Interest, After Income Taxes 8 Sources of Operating Earnings 40
Consolidated Balance Sheets 9 Operating Earnings 41
Consolidated Statements of Operations 10 Key Metrics 42
Ongoing Business Sources of Operating Earnings 11 Corporate
Consolidated Earnings Before Income Taxes 12 Operating Earnings 44
Operating Earnings by Segment 13 Closed Blocks
Operating Revenues and Operating Earnings by Segment 14 ISP and Other Operating Earnings 46
Adjusted Operating Earnings by Segment 15 Closed Block Variable Annuity Income (Loss) Before Income Taxes 47
DAC/VOBA Segment Trends 16 Closed Block Variable Annuity Death and Living Benefits 48
Consolidated Capital Structure 17 Assets Under Management Rollforward 49
Consolidated Assets Under Management/Assets Under Administration 18 Investment Information
Retirement Portfolio Composition 51
Sources of Operating Earnings 20 Portfolio Results 52
Operating Earnings 21 Alternative Investment Income 53
Assets Under Management/Assets Under Administration 22 Unrealized Gains (Losses) 54
Assets Under Management Rollforward 23 Asset Backed Securities 55
Annuities RMBS Securities Summary 56
Sources of Operating Earnings 25 CMBS and Other Asset-Backed Securities Summary 57
Operating Earnings 26 Mortgage Loans on Real Estate 58
Assets Under Management 27 US and Foreign Corporate Securities 59
Assets Under Management Rollforward 28 Exposure to European Debt- Fixed Maturities and Equity Securities 60
Investment Management Additional Information
Sources of Operating Earnings 30 Adjustments to Operating Earnings by Segment 62
Operating Earnings 31 Calculation and Reconciliation of ROE and ROC 63
Key Metrics 32 Operating Revenues by Segment 64
Account Value Rollforward by Source 33 Ongoing Business Sources of Earnings Reconciliation 65-67
Account Value by Asset Type 34 Fixed Maturity Securities-Hannover Life Re Modco Reinsurance 68
Financial Ratings 69
Voya Financial Page 3 of 69 Explanatory Note on Non-GAAP Financial Information
Operating earnings before income taxes is a financial measure we use to evaluate segment performance. Operating earnings befo re 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 i ncome (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 investme nt 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 re sults, 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 ex cluded 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.), certain third-party expenses and deal incentives related to the divestment of the Company by ING Group, and expenses associated with the rebranding of Voya Financial, Inc. from ING U.S., Inc.
· 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 compar ability;
· The net gains and losses 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; and
· 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 ind icators 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 reconci liation of these non-GAAP measures to return on equity, see the Calculation and Reconciliation of ROE and ROC page in this Supplement.
In addition to book value per share including accumulated other comprehensive income (AOCI), we also report book value per sh are 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.
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Explanatory Note on Non-GAAP Financial Information
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 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; and
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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Organizational Chart
Ongoing Business
Investment
Retirement Solutions Insurance Solutions Closed Blocks Corporate Management
Retirement, Retail Variable Annuity Institutional Funds Institutional Spread
Retirement Annuities Fixed Income Individual Employee Products
Equity Life Benefits Other
Multi-asset strategies
Full service Fixed indexed and solutions Term life Stop loss plans annuities Senior bank loans Universal life Group life
Recordkeeping Annuity and Alternatives Indexed Voluntary services custodial universal life benefits
Stable value products Variable Group disability plans universal life
IRAs
Brokerage accounts
Advisory services
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Key Metrics
Three Months Ended Year-to-Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
(in millions USD, unless otherwise indicated)
Operating earnings before income taxes - Ongoing Business 267.5 352.2 484.2 306.8 285.4 267.5 285.4
Operating earnings before income taxes - Total Consolidated 231.1 304.9 435.0 272.0 256.7 231.1 256.7
Net income (loss) 271.6 653.7 447.7 (85.3) (225.5) 271.6 (225.5)
Net income (loss) attributable to noncontrolling interest 13.5 105.6 101.1 (3.1) (13.5) 13.5 (13.5)
Net income (loss) available to Voya Financial, Inc.’s common shareholders 258.1 548.1 346.6 (82.2) (212.0) 258.1 (212.0)
Total Voya Financial, Inc. Shareholders’ Equity - Excluding AOCI 11,424.0 11,423.1 10,820.0 10,383.8 9,938.3 11,424.0 9,938.3
Return on Equity
Ongoing Business adjusted operating return on equity - TTM (1) (2) 10.3% 10.3% N/A N/A N/A 10.3% N/A
Ongoing Business adjusted operating return on equity - Annualized (2) 9.7% 10.9% 10.3% 10.4% 9.5% 9.7% 9.5%
Debt to Capital (Excluding AOCI) 23.5% 23.5% 24.5% 26.2% 27.2% 23.5% 27.2%
Per Share
Total Consolidated Operating earnings per share (Diluted) 0.57 0.75 1.08 0.71 0.73 0.57 0.73
Net income (loss) available to Voya Financial, Inc.’s common shareholders per common
share:
Basic 0.99 2.10 1.33 (0.33) (0.92) 0.99 (0.92)
Diluted 0.98 2.08 1.32 (0.33) (0.92) 0.98 (0.92)
Book value per share (Excluding AOCI) 44.85 43.65 41.49 39.82 43.21 44.85 43.21
Shares
Weighted-average common shares outstanding (in millions)
Basic 261.1 261.1 260.8 250.3 230.0 261.1 230.0
Diluted 263.5 263.3 262.3 250.3 230.0 263.5 230.0
Ending shares outstanding (in millions) 254.7 261.7 260.8 260.8 230.0 254.7 230.0
Returned to Shareholders ($)
Shares repurchased 258.9 - - - - 258.9 -
Common dividends 2.6 2.6 2.6 - - 2.6 -
Total 261.5 2.6 2.6 - - 261.5 -
(1) Trailing twelve months calculation
(2) 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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Adjusted Operating Return on Capital and Return on Equity
Twelve Months Ended March 31, 2014
Retirement Solutions Investment Insurance Solutions Ongoing Closed Block Corporate and Consolidated
Retirement Annuities Management Individual Life Employee Business Variable Annuity Closed Blocks
Benefits
(in millions USD, unless otherwise indicated)
Ending Capital (1) 3,919 1,702 296 2,861 345 9,123 3,140 2,676 14,939
Average Capital (2) 3,940 1,755 298 2,879 352 9,224 3,603 1,581 14,408
Adjusted operating earnings before interest and after
income taxes 343.7 130.8 120.0 126.7 72.4 793.6 - 10.1 803.7
Adjusted Operating Return on Capital (2) 8.7% 7.5% 40.3% 4.4% 20.6% 8.6% - N/M 5.6%
Adjusted Operating Return on Equity (2) (3) 10.3%
Twelve Months 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)
Ending Capital (1) 4,007 1,713 302 2,848 346 9,216 3,119 2,603 14,938
Average Capital (2) 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 (2) 8.9% 7.3% 35.4% 4.9% 18.8% 8.6% - N/M 5.5%
Adjusted Operating Return on Equity (2) (3) 10.3%
(1) 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 Voya Financial, 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.
(2) Effective with the twelve months ending March 31,2014, average capital and equity are calculated by taking the average of the quarterly capital and equity averages for the trailing four quarters, whereas in previous periods, average capital and equity were calculated by two point average (Beginning of Year and End of Current Period)
(3) 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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Adjusted Operating Earnings Before Interest, After Income Taxes
Twelve Months Ended March 31, 2014
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 572.9 294.3 197.8 235.1 110.6 1,410.7 - (167.7) 1,243.0
Less:
Interest expense - - - - - - - (184.8) (184.8)
DAC/VOBA and other intangibles unlocking (1) 31.3 79.5 - 0.4 (5.1) 106.1 - - 106.1
Net gain from Lehman Recovery/LIHTC (2) 12.9 13.5 13.2 39.7 4.3 83.6 - 1.6 85.2
Adjusted operating earnings before interest 528.7 201.3 184.6 195.0 111.4 1,221.0 — 15.5 1,236.5
Income tax expense (3) 185.0 70.5 64.6 68.3 39.0 427.4 - 5.4 432.8
Adjusted operating earnings before interest and
after income taxes 343.7 130.8 120.0 126.7 72.4 793.6 - 10.1 803.7
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 (3) 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
(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) Based on an assumed effective tax rate of 35%.
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Consolidated Balance Sheets
Balances as of
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
Assets
Total investments 88,891.4 87,050.8 89,007.3 89,504.8 92,213.8
Cash and cash equivalents 2,499.8 2,840.8 1,716.6 1,549.8 2,787.7
Assets held in separate accounts 107,840.0 106,827.1 103,853.6 102,228.9 103,098.3
Reinsurance recoverable 6,785.8 6,702.2 6,755.6 7,053.0 7,151.0
Short term investments under securities loan agreement and
accrued investment income 1,494.2 1,450.0 1,395.6 1,322.2 1,764.3
Deferred policy acquisition costs, Value of business acquired 4,860.8 5,351.6 5,265.0 5,060.5 4,019.6
Goodwill and other intangible assets 312.5 323.7 323.4 333.0 341.8
Other assets (1) 1,274.7 1,477.6 1,416.6 1,548.3 1,363.7
Assets related to consolidated investment entities 9,551.5 8,999.4 7,924.5 8,523.0 8,109.8
Total Assets 223,510.7 221,023.2 217,658.2 217,123.5 220,850.0
Liabilities
Future policy benefits and contract owner account balances 84,256.1 84,006.7 84,887.9 85,561.9 85,875.1
Liabilities related to separate accounts 107,840.0 106,827.1 103,853.6 102,228.9 103,098.3
Funds held under reinsurance agreements 1,174.5 1,181.5 1,212.1 1,281.6 1,170.8
Payables under securities loan agreements, including collateral held 864.5 769.4 576.7 470.6 1,348.8
Short-term debt - - - 138.6 321.2
Long-term debt 3,515.0 3,514.7 3,514.5 3,265.7 3,440.8
Other liabilities (2) 2,999.6 3,144.9 3,598.9 3,796.5 4,743.3
Liabilities related to consolidated investment entities 6,493.0 6,064.9 5,150.0 5,732.6 5,252.8
Total Liabilities 207,142.7 205,509.2 202,793.7 202,476.4 205,251.1
Shareholders’ Equity
Common stock 2.6 2.6 2.6 2.6 2.3
Treasury stock (269.8) - - - -
Additional paid-in capital 23,579.5 23,563.7 23,524.7 23,498.7 22,909.9
Retained earnings (deficit) (11,888.3) (12,143.2) (12,707.3) (13,117.5) (12,973.9)
Total Voya Financial, Inc. Shareholders’ Equity - Excluding AOCI 11,424.0 11,423.1 10,820.0 10,383.8 9,938.3
Accumulated other comprehensive income 2,577.5 1,849.1 1,950.0 2,087.8 3,452.8
Total Voya Financial, Inc. Shareholders’ Equity 14,001.5 13,272.2 12,770.0 12,471.6 13,391.1
Noncontrolling interest 2,366.5 2,241.8 2,094.5 2,175.5 2,207.8
Total Shareholders’ Equity 16,368.0 15,514.0 14,864.5 14,647.1 15,598.9
Total Liabilities and Shareholders’ Equity 223,510.7 221,023.2 217,658.2 217,123.5 220,850.0
(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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Consolidated Statements of Operations
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Revenues
Net investment income 1,145.6 1,156.5 1,221.6 1,112.2 1,198.7 1,145.6 1,198.7
Fee income 931.8 943.9 920.8 909.7 891.9 931.8 891.9
Premiums 600.9 515.4 494.2 474.8 471.9 600.9 471.9
Net realized capital gains (losses) (190.6) (577.0) (517.1) (565.9) (874.8) (190.6) (874.8)
Income (loss) related to consolidated investment entities 77.7 213.5 196.2 103.7 35.3 77.7 35.3
Other revenues 105.5 111.7 119.6 106.1 95.6 105.5 95.6
Total revenues 2,670.9 2,364.0 2,435.3 2,140.6 1,818.6 2,670.9 1,818.6
Benefits and expenses
Interest credited and other benefits to contract owners/policyholders (1,358.1) (1,118.8) (1,087.7) (1,229.9) (1,061.4) (1,358.1) (1,061.4)
Operating expenses (789.5) (394.6) (762.8) (770.2) (759.1) (789.5) (759.1)
Net amortization of DAC/VOBA (126.1) (123.2) (64.6) (124.5) (130.5) (126.1) (130.5)
Interest expense (47.6) (48.2) (48.4) (43.8) (44.4) (47.6) (44.4)
Operating expenses related to consolidated investment entities (47.3) (51.6) (51.8) (47.4) (37.5) (47.3) (37.5)
Total benefits and expenses (2,368.6) (1,736.4) (2,015.3) (2,215.8) (2,032.9) (2,368.6) (2,032.9)
Income (loss) before income taxes 302.3 627.6 420.0 (75.2) (214.3) 302.3 (214.3)
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Ongoing Business Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Sources of operating earnings before income
taxes:
Investment spread and other investment income 361.9 384.7 437.4 361.0 363.7 361.9 363.7
Fee based margin 381.2 388.7 369.7 364.2 343.6 381.2 343.6
Net underwriting gain (loss) and other revenue 173.6 180.7 198.9 204.1 179.9 173.6 179.9
Administrative expenses (436.4) (422.4) (404.3) (416.1) (400.3) (436.4) (400.3)
Trail commissions (73.7) (68.1) (63.8) (66.0) (66.1) (73.7) (66.1)
DAC/VOBA and other intangibles amortization,
excluding unlocking (119.3) (136.1) (178.2) (144.0) (142.7) (119.3) (142.7)
DAC/VOBA and other intangibles unlocking (19.8) 24.7 124.5 3.6 7.3 (19.8) 7.3
Operating earnings before income taxes 267.5 352.2 484.2 306.8 285.4 267.5 285.4
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Consolidated Earnings Before Income Taxes
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Operating revenues
Net investment income and net realized gains (losses) 961.4 1,005.8 1,054.4 962.0 985.6 961.4 985.6
Fee income 649.3 644.1 632.1 628.3 608.0 649.3 608.0
Premiums 549.3 473.3 453.5 473.3 470.5 549.3 470.5
Other revenue 35.4 40.2 38.9 33.9 26.4 35.4 26.4
Total operating revenues 2,195.4 2,163.4 2,178.9 2,097.5 2,090.5 2,195.4 2,090.5
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (1,228.6) (1,166.3) (1,111.9) (1,126.8) (1,151.8) (1,228.6) (1,151.8)
Operating expenses (560.7) (547.6) (523.8) (532.5) (517.4) (560.7) (517.4)
Net amortization of DAC/VOBA (128.0) (96.8) (60.0) (122.7) (120.9) (128.0) (120.9)
Interest expense (47.0) (47.8) (48.2) (43.5) (43.7) (47.0) (43.7)
Total operating benefits and expenses (1,964.3) (1,858.5) (1,743.9) (1,825.5) (1,833.8) (1,964.3) (1,833.8)
Operating earnings before income taxes 231.1 304.9 435.0 272.0 256.7 231.1 256.7
Adjustments:
Closed Block Variable Annuity 20.2 (226.4) (167.4) (338.4) (477.1) 20.2 (477.1)
Net investment gains (losses) and related charges and adjustments 57.6 105.4 64.1 0.8 41.8 57.6 41.8
Net guaranteed benefit hedging gains (losses) and related charges and adjustments 6.4 (26.6) 10.5 32.4 3.1 6.4 3.1
Income (loss) related to businesses exited through reinsurance or divestment (10.5) (12.8) (13.1) (17.0) (16.9) (10.5) (16.9)
Income (loss) attributable to noncontrolling interests 13.5 105.6 101.1 (3.1) (13.5) 13.5 (13.5)
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 ———— -
Other adjustments to operating earnings* (16.0) (27.7) (10.2) (21.9) (8.4) (16.0) (8.4)
Total non-operating 71.2 322.7 (15.0) (347.2) (471.0) 71.2 (471.0)
Income (loss) before income taxes 302.3 627.6 420.0 (75.2) (214.3) 302.3 (214.3)
* Other adjustments to operating earnings above includes:
Restructuring expenses (severance, lease write-offs, etc.), certain third-party expenses and deal
incentives related to the divestment of the Company by ING Group, and expenses associated with the
rebranding of Voya Financial, Inc. from ING U.S., Inc.
Voya Financial Page 13 of 69
Operating Earnings by Segment
(in millions USD) Three Months Ended March 31, 2014
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) 388.5 270.6 7.3 219.8 26.7 912.9 25.4 23.1 961.4
Fee income 191.1 13.2 145.8 283.6 15.6 649.3 —— 649.3
Premiums 0.7 66.1 — 183.7 296.3 546.8 — 2.5 549.3
Other revenue 18.2 4.5 7.4 5.1 0.3 35.5 (0.1) — 35.4
Total operating revenues 598.5 354.4 160.5 692.2 338.9 2,144.5 25.3 25.6 2,195.4
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (210.7) (229.8) — (527.8) (244.5) (1,212.8) (0.3) (15.5) (1,228.6)
Operating expenses (226.0) (35.5) (110.7) (95.7) (68.4) (536.3) (15.3) (9.1) (560.7)
Net amortization of DAC/VOBA (46.9) (34.3) — (37.6) (9.1) (127.9) — (0.1) (128.0)
Interest expense —————— (47.0) — (47.0)
Total operating benefits and expenses (483.6) (299.6) (110.7) (661.1) (322.0) (1,877.0) (62.6) (24.7) (1,964.3)
Operating earnings before income taxes 114.9 54.8 49.8 31.1 16.9 267.5 (37.3) 0.9 231.1
Three Months Ended March 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) 388.9 287.1 2.8 216.9 28.4 924.1 17.5 44.0 985.6
Fee income 183.8 9.9 121.7 276.8 15.8 608.0 —— 608.0
Premiums 0.5 7.8 — 185.8 274.9 469.0 — 1.5 470.5
Other revenue 10.0 2.8 7.4 7.6 (1.0) 26.8 (0.4) — 26.4
Total operating revenues 583.2 307.6 131.9 687.1 318.1 2,027.9 17.1 45.5 2,090.5
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (204.6) (184.4) — (501.6) (242.6) (1,133.2) 1.7 (20.3) (1,151.8)
Operating expenses (204.0) (31.0) (101.8) (90.9) (60.0) (487.7) (26.0) (3.7) (517.4)
Net amortization of DAC/VOBA (36.8) (37.9) — (42.9) (3.1) (120.7) (0.1) (0.1) (120.9)
Interest expense ——— (0.9) — (0.9) (42.8) — (43.7)
Total operating benefits and expenses (445.4) (253.3) (101.8) (636.3) (305.7) (1,742.5) (67.2) (24.1) (1,833.8)
Operating earnings before income taxes 137.8 54.3 30.1 50.8 12.4 285.4 (50.1) 21.4 256.7
Voya Financial Page 14 of 69
Operating Revenues and Operating Earnings by Segment
(in millions USD) Three Months Ended Year-to-Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Operating Revenues
Retirement 598.5 612.4 606.9 596.9 583.2 598.5 583.2
Annuities 354.4 313.9 319.1 304.0 307.6 354.4 307.6
Total Retirement Solutions 952.9 926.3 926.0 900.9 890.8 952.9 890.8
Investment Management 160.5 167.1 160.1 148.6 131.9 160.5 131.9
Individual Life 692.2 692.9 717.1 694.8 687.1 692.2 687.1
Employee Benefits 338.9 316.5 316.2 311.7 318.1 338.9 318.1
Total Insurance Solutions 1,031.1 1,009.4 1,033.3 1,006.5 1,005.2 1,031.1 1,005.2
Ongoing Business 2,144.5 2,102.8 2,119.4 2,056.0 2,027.9 2,144.5 2,027.9
Corporate 25.3 33.6 28.8 7.9 17.1 25.3 17.1
Total Closed Blocks 25.6 27.0 30.7 33.6 45.5 25.6 45.5
Total operating revenues 2,195.4 2,163.4 2,178.9 2,097.5 2,090.5 2,195.4 2,090.5
Operating Earnings
Retirement 114.9 138.6 187.3 132.1 137.8 114.9 137.8
Annuities 54.8 83.2 96.8 59.5 54.3 54.8 54.3
Total Retirement Solutions 169.7 221.8 284.1 191.6 192.1 169.7 192.1
Investment Management 49.8 52.9 54.0 41.1 30.1 49.8 30.1
Individual Life 31.1 47.0 117.0 40.0 50.8 31.1 50.8
Employee Benefits 16.9 30.5 29.1 34.1 12.4 16.9 12.4
Total Insurance Solutions 48.0 77.5 146.1 74.1 63.2 48.0 63.2
Ongoing Business 267.5 352.2 484.2 306.8 285.4 267.5 285.4
Corporate (37.3) (44.0) (63.7) (52.8) (50.1) (37.3) (50.1)
Total Closed Blocks 0.9 (3.3) 14.5 18.0 21.4 0.9 21.4
Total operating earnings before income taxes 231.1 304.9 435.0 272.0 256.7 231.1 256.7
Closed Block Variable Annuity 20.2 (226.4) (167.4) (338.4) (477.1) 20.2 (477.1)
Net investment gains (losses) and related charges and adjustments 57.6 105.4 64.1 0.8 41.8 57.6 41.8
Net guaranteed benefit hedging gains (losses) and related charges and adjustments 6.4 (26.6) 10.5 32.4 3.1 6.4 3.1
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 ———— -
Other adjustments* (13.0) 65.1 77.8 (42.0) (38.8) (13.0) (42.0)
Total non-operating 71.2 322.7 (15.0) (347.2) (471.0) 71.2 (471.0)
Income (loss) before income taxes 302.3 627.6 420.0 (75.2) (214.3) 302.3 (214.3)
Less: Income tax expense (benefit) 30.7 (26.1) (27.7) 10.1 11.2 30.7 11.2
Net income (loss) 271.6 653.7 447.7 (85.3) (225.5) 271.6 (225.5)
Net income (loss) attributable to noncontrolling interest 13.5 105.6 101.1 (3.1) (13.5) 13.5 (13.5)
Net income (loss) available to Voya Financial, Inc.‘s common shareholders 258.1 548.1 346.6 (82.2) (212.0) 258.1 (212.0)
* Other adjustments above includes:
Income (loss) related to businesses exited through reinsurance or divestment; income
(loss) attributable to non-controlling interests; and other items, restructuring expenses
(severance, lease write-offs, etc.), certain third-party expenses and deal incentives related
to the divestment of the Company by ING Group, and expenses associated with the
rebranding of Voya Financial, Inc. from ING U.S., Inc.
Voya Financial Page 15 of 69
Adjusted Operating Earnings by Segment
(in millions USD) Three Months Ended Year-to-Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Operating Earnings
Retirement 114.9 138.6 187.3 132.1 137.8 114.9 137.8
Annuities 54.8 83.2 96.8 59.5 54.3 54.8 54.3
Total Retirement Solutions 169.7 221.8 284.1 191.6 192.1 169.7 192.1
Investment Management 49.8 52.9 54.0 41.1 30.1 49.8 30.1
Individual Life 31.1 47.0 117.0 40.0 50.8 31.1 50.8
Employee Benefits 16.9 30.5 29.1 34.1 12.4 16.9 12.4
Total Insurance Solutions 48.0 77.5 146.1 74.1 63.2 48.0 63.2
Ongoing Business 267.5 352.2 484.2 306.8 285.4 267.5 285.4
Corporate (37.3) (44.0) (63.7) (52.8) (50.1) (37.3) (50.1)
Total Closed Blocks 0.9 (3.3) 14.5 18.0 21.4 0.9 21.4
Total operating earnings before income taxes 231.1 304.9 435.0 272.0 256.7 231.1 256.7
Adjustments to operating earnings
Retirement (11.3) 4.2 52.7 (1.4) 3.0 (11.3) 3.0
Annuities 3.2 27.6 52.3 9.9 7.0 3.2 7.0
Total Retirement Solutions (8.1) 31.8 105.0 8.5 10.0 (8.1) 10.0
Investment Management — 1.7 11.5 — — — -
Individual Life (7.1) (4.7) 56.8 (4.9) (2.7) (7.1) (2.7)
Employee Benefits (4.6) (0.2) 4.0 — — (4.6) -
Total Insurance Solutions (11.7) (4.9) 60.8 (4.9) (2.7) (11.7) (2.7)
Ongoing Business (19.8) 28.6 177.3 3.6 7.3 (19.8) 7.3
Corporate (48.8) (43.8) (47.6) (43.2) (41.9) (48.8) (41.9)
Total Closed Blocks — (0.4) 0.6 — — — -
Total adjustments to operating earnings (68.6) (15.6) 130.3 (39.6) (34.6) (68.6) (34.6)
Adjusted Operating Earnings
Retirement 126.2 134.4 134.6 133.5 134.8 126.2 134.8
Annuities 51.6 55.6 44.5 49.6 47.3 51.6 47.3
Total Retirement Solutions 177.8 190.0 179.1 183.1 182.1 177.8 182.1
Investment Management 49.8 51.2 42.5 41.1 30.1 49.8 30.1
Individual Life 38.2 51.7 60.2 44.9 53.5 38.2 53.5
Employee Benefits 21.5 30.7 25.1 34.1 12.4 21.5 12.4
Total Insurance Solutions 59.7 82.4 85.3 79.0 65.9 59.7 65.9
Ongoing Business 287.3 323.6 306.9 303.2 278.1 287.3 278.1
Corporate 11.5 (0.2) (16.1) (9.6) (8.2) 11.5 (8.2)
Total Closed Blocks 0.9 (2.9) 13.9 18.0 21.4 0.9 21.4
Total adjusted operating earnings before interest and income taxes 299.7 320.5 304.7 311.6 291.3 299.7 291.3
Voya Financial Page 16 of 69
DAC/VOBA Segment Trends
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Retirement
Balance as of beginning-of-period 1,415.3 1,381.4 1,278.3 843.1 712.4 1,415.3 712.4
Deferrals of commissions and expenses 23.6 27.1 25.5 25.8 28.3 23.6 28.3
Amortization (39.2) (53.6) (44.7) (23.5) (42.3) (39.2) (42.3)
Unlocking 5.1 19.0 66.0 14.0 19.1 5.1 19.1
Change in unrealized capital gains/losses (185.7) 41.5 56.3 418.9 125.6 (185.7) 125.6
Balance as of End-of-Period 1,219.1 1,415.3 1,381.4 1,278.3 843.1 1,219.1 843.1
Annuities
Balance as of beginning-of-period 591.7 560.5 518.6 292.4 260.7 591.7 260.7
Deferrals of commissions and expenses 31.5 27.8 23.5 20.8 17.4 31.5 17.4
Amortization (41.3) (38.3) (55.8) (60.3) (54.5) (41.3) (54.5)
Unlocking 12.5 16.6 45.3 17.9 13.5 12.5 13.5
Change in unrealized capital gains/losses (86.1) 25.0 28.9 247.8 55.3 (86.1) 55.3
Balance as of End-of-Period 508.4 591.7 560.5 518.6 292.4 508.4 292.4
Individual Life
Balance as of beginning-of-period 2,752.9 2,717.4 2,638.2 2,247.2 2,127.6 2,752.9 2,127.6
Deferrals of commissions and expenses 32.7 36.8 39.8 50.1 52.8 32.7 52.8
Amortization (32.8) (46.6) (71.8) (50.6) (48.4) (32.8) (48.4)
Unlocking (4.1) 0.5 22.4 0.1 2.4 (4.1) 2.4
Change in unrealized capital gains/losses (188.2) 44.9 88.8 391.4 112.8 (188.2) 112.8
Balance as of End-of-Period 2,560.5 2,752.9 2,717.4 2,638.2 2,247.2 2,560.5 2,247.2
Other (1)
Balance as of beginning-of-period 102.7 104.0 105.7 104.1 102.6 102.7 102.6
Deferrals of commissions and expenses 4.2 5.0 4.6 6.1 5.4 4.2 5.4
Amortization (3.7) (3.0) (6.3) (6.8) (5.3) (3.7) (5.3)
Unlocking (6.8) (2.4) ——— (6.8) -
Change in unrealized capital gains/losses 0.3 (0.9) — 2.3 1.4 0.3 1.4
Balance as of End-of-Period 96.7 102.7 104.0 105.7 104.1 96.7 104.1
Closed Block Variable Annuity
Balance as of beginning-of-period 489.0 501.7 519.7 532.8 453.0 489.0 453.0
Deferrals of commissions and expenses 3.0 2.7 1.8 4.3 3.9 3.0 3.9
Amortization (16.2) (17.0) (15.4) (15.5) (14.8) (16.2) (14.8)
Unlocking 0.4 1.6 (4.3) (1.8) (0.2) 0.4 (0.2)
Change in unrealized capital gains/losses —— (0.1) (0.1) 90.9 — 90.9
Balance as of End-of-Period 476.2 489.0 501.7 519.7 532.8 476.2 532.8
Total US
Balance as of beginning-of-period 5,351.6 5,265.0 5,060.5 4,019.6 3,656.3 5,351.6 3,656.3
Deferrals of commissions and expenses 95.0 99.3 95.2 107.1 107.8 95.0 107.8
Amortization (133.2) (158.5) (194.0) (156.7) (165.3) (133.2) (165.3)
Unlocking 7.1 35.3 129.4 30.2 34.8 7.1 34.8
Change in unrealized capital gains/losses (459.7) 110.5 173.9 1,060.3 386.0 (459.7) 386.0
Balance as of End-of-Period 4,860.8 5,351.6 5,265.0 5,060.5 4,019.6 4,860.8 4,019.6
(1) | | Employee Benefits, Investment Management, Other Closed Blocks |
Voya Financial Page 17 of 69
Consolidated Capital Structure
Balances as of
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
Financial Debt
Commercial paper ———— 4.0
Senior bonds 2,746.3 2,746.0 2,745.8 2,485.5 2,485.1
Subordinated bonds 763.8 763.8 763.8 763.9 13.9
Loans from ING Verzekeringen N.V. ——— 150.0 500.0
Loans from consolidated subs ——— 279.0 274.4
Bank term loan ———— 425.0
Other debt 4.9 4.9 4.9 4.9 4.9
Total Debt 3,515.0 3,514.7 3,514.5 3,683.3 3,707.3
Equity
Total common equity 11,424.0 11,423.1 10,820.0 10,383.8 9,938.3
Accumulated other comprehensive income (AOCI) 2,577.5 1,849.1 1,950.0 2,087.8 3,452.8
Total Voya Financial, Inc. Shareholders’ Equity 14,001.5 13,272.2 12,770.0 12,471.6 13,391.1
Total Equity (Excluding AOCI) 11,424.0 11,423.1 10,820.0 10,383.8 9,938.3
Capital
Total Capitalization 17,516.5 16,786.9 16,284.5 16,154.9 17,098.4
Total Capitalization (Excluding AOCI) 14,939.0 14,937.8 14,334.5 14,067.1 13,645.6
Debt to Capital
Debt to Capital 20.1% 20.9% 21.6% 22.8% 21.7%
Debt to Capital (Excluding AOCI) 23.5% 23.5% 24.5% 26.2% 27.2%
Voya Financial Page 18 of 69
Consolidated Assets Under Management/Assets Under Administration
(in millions USD)
Total
Institutional/ AUM—Assets Under AUA—Assets Under
Balances as of March 31, 2014 General Account Separate Account Mutual Funds Management Administration Total AUM + AUA
Retirement (1) 28,205.7 58,279.4 20,030.0 106,515.1 235,906.0 342,421.1
Annuities (2) 22,573.2 820.1 3,574.3 26,967.6 — 26,967.6
Retirement Solutions 50,778.9 59,099.5 23,604.3 133,482.7 235,906.0 369,388.7
Investment Management 79,684.4 48,781.9 78,311.4 206,777.7 53,688.8 260,466.5
Insurance
Individual Life (3) 13,308.0 2,699.7 — 16,007.7 — 16,007.7
Employee Benefits 1,760.5 15.9 — 1,776.4 — 1,776.4
Insurance Solutions 15,068.5 2,715.6 — 17,784.1 — 17,784.1
Eliminations (70,035.5) (46,500.9) (9,928.5) (126,464.9) (55,325.3) (181,790.2)
Total Ongoing Business 75,496.3 64,096.1 91,987.2 231,579.6 234,269.5 465,849.1
Closed Block Variable Annuity 1,517.3 43,524.7 — 45,042.0 — 45,042.0
Closed Block Institutional Spread Products 2,351.1 —— 2,351.1 — 2,351.1
Closed Block Other 319.7 219.2 — 538.9 — 538.9
Total AUM and AUA 79,684.4 107,840.0 91,987.2 279,511.6 234,269.5 513,781.1
(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
Retirement
Voya Financial Page 20 of 69
Retirement Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Sources of operating earnings before income taxes:
Investment spread and other investment income (1) 178.6 181.4 181.3 179.5 183.3 178.6 183.3
Fee based margin 209.5 215.0 209.7 205.5 199.0 209.5 199.0
Net underwriting gain (loss) and other revenue (3.2) (2.3) 0.4 (3.0) (6.0) (3.2) (6.0)
Administrative expenses (188.0) (181.8) (171.8) (174.6) (170.0) (188.0) (170.0)
Trail commissions (33.7) (35.3) (31.4) (31.9) (29.9) (33.7) (29.9)
DAC/VOBA and other intangibles amortization, excluding
unlocking (1) (37.0) (42.8) (45.2) (42.0) (41.6) (37.0) (41.6)
DAC/VOBA and other intangibles unlocking (1) (11.3) 4.4 44.3 (1.4) 3.0 (11.3) 3.0
Operating earnings before income taxes 114.9 138.6 187.3 132.1 137.8 114.9 137.8
Gross investment income
Fixed income 363.7 364.1 356.9 364.7 356.3 363.7 356.3
Limited partnership income 3.0 2.8 (0.1) 1.9 2.3 3.0 2.3
Prepayment fee income 4.3 9.1 2.9 7.9 10.2 4.3 10.2
Total gross investment income 371.0 376.0 359.7 374.5 368.8 371.0 368.8
Investment expenses (15.1) (14.9) (14.1) (14.7) (14.2) (15.1) (14.2)
Credited interest (204.3) (210.0) (207.5) (203.6) (199.9) (204.3) (199.9)
Net margin 151.6 151.1 138.1 156.2 154.7 151.6 154.7
Other investment income(1) (2) 27.0 30.3 43.2 23.3 28.6 27.0 28.6
Investment spread and other investment income 178.6 181.4 181.3 179.5 183.3 178.6 183.3
Fee based margin
Fee based margin—excluding Recordkeeping 155.4 157.3 152.6 145.3 139.2 155.4 139.2
Fee based margin—Recordkeeping 54.1 57.7 57.1 60.3 59.8 54.1 59.8
Fee based margin 209.5 215.0 209.7 205.5 199.0 209.5 199.0
Recordkeeping
Revenue 54.1 57.7 57.1 60.3 59.8 54.1 59.8
Expenses (53.9) (54.6) (53.0) (53.7) (53.1) (53.9) (53.1)
Operating earnings—Recordkeeping 0.2 3.1 4.1 6.6 6.7 0.2 6.7
(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
Voya Financial Page 21 of 69
Retirement Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Operating revenues
Net investment income and net realized gains (losses) 388.5 397.4 394.5 388.8 388.9 388.5 388.9
Fee income 191.1 196.1 191.0 189.0 183.8 191.1 183.8
Premiums 0.7 0.7 0.7 3.8 0.5 0.7 0.5
Other revenue 18.2 18.2 20.7 15.3 10.0 18.2 10.0
Total operating revenues 598.5 612.4 606.9 596.9 583.2 598.5 583.2
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (210.7) (218.2) (213.5) (212.1) (204.6) (210.7) (204.6)
Operating expenses (226.0) (220.1) (205.8) (210.0) (204.0) (226.0) (204.0)
Net amortization of DAC/VOBA (46.9) (35.5) (0.3) (42.7) (36.8) (46.9) (36.8)
Interest expense - - - - - - -
Total operating benefits and expenses (483.6) (473.8) (419.6) (464.8) (445.4) (483.6) (445.4)
Operating earnings before income taxes 114.9 138.6 187.3 132.1 137.8 114.9 137.8
Voya Financial Page 22 of 69
Retirement AUM/AUA
Balances as of
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
Assets under management by product group
Corporate markets 40,967.4 40,123.7 37,677.7 35,916.3 35,441.2
Tax-exempt markets 53,564.2 53,200.5 51,183.9 49,451.5 49,269.4
Total full service plans 94,531.6 93,324.2 88,861.6 85,367.8 84,710.6
Stable value 8,908.6 8,914.3 8,705.0 8,406.9 8,279.7
Individual markets 3,074.9 2,998.4 2,850.5 2,702.4 2,612.0
Total AUM 106,515.1 105,236.9 100,417.1 96,477.1 95,602.3
AUA 235,906.0 237,777.1 227,841.9 220,739.5 223,034.6
Total AUM and AUA 342,421.1 343,014.0 328,259.0 317,216.6 318,636.9
Assets under management by fund group
General account 28,205.7 28,169.2 28,088.3 27,700.9 27,387.8
Guaranteed separate account 8,114.6 8,120.0 8,092.5 8,027.0 8,287.8
Non-guaranteed separate account 50,164.8 49,534.0 46,840.4 44,582.7 44,229.0
Mutual funds/Institutional funds 20,030.0 19,413.7 17,395.9 16,166.5 15,697.7
Total AUM 106,515.1 105,236.9 100,417.1 96,477.1 95,602.3
AUA 235,906.0 237,777.1 227,841.9 220,739.5 223,034.6
Total AUM and AUA 342,421.1 343,014.0 328,259.0 317,216.6 318,636.9
Voya Financial Page 23 of 69
Retirement AUM Rollforward
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Full service - Corporate markets
Assets under management, beginning of period 40,123.7 37,677.7 35,916.3 35,441.2 33,265.9 40,123.7 33,265.9
Transfer/Single deposits 900.7 1,251.5 688.2 648.9 1,085.7 900.7 1,085.7
Recurring deposits 1,108.9 845.1 883.5 918.4 1,021.7 1,108.9 1,021.7
Deposits 2,009.6 2,096.6 1,571.7 1,567.3 2,107.4 2,009.6 2,107.4
Surrenders, benefits, and product charges (1,669.6) (1,839.9) (1,645.3) (1,309.7) (1,728.5) (1,669.6) (1,728.5)
Net Flows 340.0 256.7 (73.6) 257.6 378.9 340.0 378.9
Interest credited and investment performance 503.7 2,189.3 1,835.0 217.5 1,796.4 503.7 1,796.4
Assets under management, end of period 40,967.4 40,123.7 37,677.7 35,916.3 35,441.2 40,967.4 35,441.2
Full service - Tax-exempt markets
Assets under management, beginning of period 53,200.5 51,183.9 49,451.5 49,269.4 46,986.1 53,200.5 46,986.1
Transfer/Single deposits 269.7 271.2 335.0 356.0 642.0 269.7 642.0
Recurring deposits 779.4 756.5 691.0 805.6 772.9 779.4 772.9
Deposits 1,049.1 1,027.7 1,026.0 1,161.6 1,414.9 1,049.1 1,414.9
Surrenders, benefits, and product charges (1,330.7) (1,117.5) (1,101.8) (1,261.9) (962.7) (1,330.7) (962.7)
Net Flows (281.6) (89.8) (75.8) (100.3) 452.2 (281.6) 452.2
Interest credited and investment performance 645.3 2,106.4 1,808.2 282.4 1,831.1 645.3 1,831.1
Assets under management, end of period 53,564.2 53,200.5 51,183.9 49,451.5 49,269.4 53,564.2 49,269.4
Stable value (1)
Assets under management, beginning of period 8,914.3 8,705.0 8,406.9 8,279.7 7,792.1 8,914.3 7,792.1
Transfer/Single deposits 134.9 202.1 336.7 353.3 542.0 134.9 542.0
Recurring deposits 47.1 60.1 63.4 49.9 48.0 47.1 48.0
Deposits 182.0 262.2 400.1 403.2 590.0 182.0 590.0
Surrenders, benefits, and product charges (242.2) (113.8) (81.3) (212.3) (108.9) (242.2) (108.9)
Net Flows (60.2) 148.4 318.8 190.9 481.1 (60.2) 481.1
Interest credited and investment performance 54.5 60.9 (20.7) (63.7) 6.5 54.5 6.5
Assets under management, end of period 8,908.6 8,914.3 8,705.0 8,406.9 8,279.7 8,908.6 8,279.7
Individual markets
Assets under management, beginning of period 2,998.4 2,850.5 2,702.4 2,612.0 2,427.1 2,998.4 2,427.1
Transfer/Single deposits 281.8 290.3 280.5 323.6 331.6 281.8 331.6
Recurring deposits 0.6 0.2 0.2 0.5 0.4 0.6 0.4
Deposits 282.4 290.5 280.7 324.1 332.0 282.4 332.0
Surrenders, benefits, and product charges (236.2) (242.6) (215.8) (230.7) (224.8) (236.2) (224.8)
Net Flows 46.2 47.9 64.9 93.4 107.2 46.2 107.2
Interest credited and investment performance 30.3 100.0 83.2 (3.0) 77.7 30.3 77.7
Assets under management, end of period 3,074.9 2,998.4 2,850.5 2,702.4 2,612.0 3,074.9 2,612.0
Total AUM (2)
Assets under management, beginning of period 105,236.9 100,417.1 96,477.1 95,602.3 90,471.2 105,236.9 90,471.2
Transfer/Single deposits 1,587.1 2,015.1 1,640.4 1,681.8 2,601.3 1,587.1 2,601.3
Recurring deposits 1,936.0 1,661.9 1,638.1 1,774.4 1,843.0 1,936.0 1,843.0
Deposits 3,523.1 3,677.0 3,278.5 3,456.2 4,444.3 3,523.1 4,444.3
Surrenders, benefits, and product charges (3,478.7) (3,313.8) (3,044.2) (3,014.6) (3,024.9) (3,478.7) (3,024.9)
Net Flows 44.4 363.2 234.3 441.6 1,419.4 44.4 1,419.4
Interest credited and investment performance 1,233.8 4,456.6 3,705.7 433.2 3,711.7 1,233.8 3,711.7
Assets under management, end of period 106,515.1 105,236.9 100,417.1 96,477.1 95,602.3 106,515.1 95,602.3
(1) Where Voya is the Investment Manager
(2) Excludes Recordkeeping and Stable Value where Voya is not the Investment Manager
Annuities
Voya Financial Page 25 of 69
Annuities Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Sources of operating earnings before income taxes:
Investment spread and other investment income (1) 111.0 120.5 127.9 115.4 113.4 111.0 113.4
Fee based margin 13.2 12.9 12.1 11.3 10.5 13.2 10.5
Net underwriting gain (loss) and other revenue 7.0 4.3 2.3 4.4 7.2 7.0 7.2
Administrative expenses (24.7) (22.0) (22.5) (23.2) (21.9) (24.7) (21.9)
Trail commissions (10.4) (9.9) (8.9) (8.6) (8.8) (10.4) (8.8)
DAC/VOBA and other intangibles amortization, excluding
unlocking (1) (44.5) (49.8) (57.9) (49.7) (53.1) (44.5) (53.1)
DAC/VOBA and other intangibles unlocking (1) 3.2 27.2 43.8 9.9 7.0 3.2 7.0
Operating earnings before income taxes 54.8 83.2 96.8 59.5 54.3 54.8 54.3
Gross investment income
Fixed income 257.9 256.4 259.1 258.3 267.6 257.9 267.6
Limited partnership income 4.7 5.3 1.3 5.1 1.6 4.7 1.6
Prepayment fee income 2.5 9.9 6.3 11.1 5.8 2.5 5.8
Total gross investment income 265.1 271.6 266.7 274.5 275.0 265.1 275.0
Investment expenses (10.7) (10.8) (10.5) (11.2) (10.9) (10.7) (10.9)
Credited interest (159.7) (163.0) (168.1) (167.8) (173.7) (159.7) (173.7)
Net margin 94.7 97.8 88.1 95.5 90.4 94.7 90.4
Other investment income (1) (2) 16.3 22.7 39.9 19.9 22.9 16.3 22.9
Investment spread and other investment income 111.0 120.5 127.9 115.4 113.4 111.0 113.4
(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
Voya Financial Page 26 of 69
Annuities Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Operating revenues
Net investment income and net realized gains (losses) 270.6 283.4 295.9 283.5 287.1 270.6 287.1
Fee income 13.2 12.2 11.8 11.2 9.9 13.2 9.9
Premiums 66.1 14.4 7.5 6.7 7.8 66.1 7.8
Other revenue 4.5 3.9 3.9 2.6 2.8 4.5 2.8
Total operating revenues 354.4 313.9 319.1 304.0 307.6 354.4 307.6
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (229.8) (180.4) (182.2) (183.9) (184.4) (229.8) (184.4)
Operating expenses (35.5) (32.1) (31.7) (32.2) (31.0) (35.5) (31.0)
Net amortization of DAC/VOBA (34.3) (18.2) (8.4) (28.4) (37.9) (34.3) (37.9)
Interest expense - - - - - - -
Total operating benefits and expenses (299.6) (230.7) (222.3) (244.5) (253.3) (299.6) (253.3)
Operating earnings before income taxes 54.8 83.2 96.8 59.5 54.3 54.8 54.3
Voya Financial Page 27 of 69
Annuities AUM
Balances as of
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
Assets Under Management
Fixed single year 3,825.4 3,889.5 3,985.4 4,104.1 4,204.7
Fixed multi-year 3,342.9 3,445.7 3,608.1 3,748.6 3,853.0
Indexed 12,883.5 12,648.4 12,494.9 12,362.8 12,255.3
SPIA & Payout 2,871.1 2,803.5 2,760.4 2,762.9 2,794.8
Other annuities 470.4 474.8 452.6 438.9 444.7
Mutual funds 3,574.3 3,384.9 3,077.8 2,816.2 2,675.5
Total AUM 26,967.6 26,646.7 26,379.2 26,233.5 26,228.0
Assets Under Management
General account 22,573.2 22,432.2 22,508.2 22,647.3 22,772.4
Separate account 820.1 829.6 793.2 770.0 780.1
Mutual funds 3,574.3 3,384.9 3,077.8 2,816.2 2,675.5
Total AUM 26,967.6 26,646.7 26,379.2 26,233.5 26,228.0
Voya Financial Page 28 of 69
Annuities AUM Rollforward
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Annual Reset Annuities/Multi-Year Guaranteed Annuities
Assets Under Management, beginning of period 7,335.2 7,593.5 7,852.7 8,057.7 8,222.9 7,335.2 8,222.9
Deposits 12.0 17.7 14.5 16.5 12.2 12.0 12.2
Surrenders, benefits, and product charges (245.2) (348.1) (346.9) (300.6) (254.0) (245.2) (254.0)
Net cash flow (233.2) (330.4) (332.4) (284.1) (241.8) (233.2) (241.8)
Interest credited and investment performance 66.3 72.1 73.2 79.1 76.6 66.3 76.6
Assets Under Management, end of period 7,168.3 7,335.2 7,593.5 7,852.7 8,057.7 7,168.3 8,057.7
Fixed Indexed Annuities
Assets Under Management, beginning of period 12,648.4 12,494.9 12,362.8 12,255.3 12,209.2 12,648.4 12,209.2
Deposits 436.2 379.3 334.8 286.7 245.9 436.2 245.9
Surrenders, benefits, and product charges (316.5) (348.6) (327.3) (332.8) (288.9) (316.5) (288.9)
Net cash flow 119.8 30.7 7.6 (46.2) (43.1) 119.8 (43.1)
Interest credited and investment performance 115.3 122.8 124.6 153.7 89.1 115.3 89.1
Assets Under Management, end of period 12,883.5 12,648.4 12,494.9 12,362.8 12,255.3 12,883.5 12,255.3
SPIA & Payout
Assets Under Management, beginning of period 2,803.5 2,760.4 2,762.9 2,794.8 2,806.6 2,803.5 2,806.6
Deposits 119.6 94.5 51.1 37.2 39.8 119.6 39.8
Surrenders, benefits, and product charges (86.4) (108.7) (110.6) (107.7) (101.0) (86.4) (101.0)
Net cash flow 33.2 (14.2) (59.5) (70.5) (61.3) 33.2 (61.3)
Interest credited and investment performance 34.4 57.3 57.0 38.5 49.5 34.4 49.5
Assets Under Management, end of period 2,871.1 2,803.5 2,760.4 2,762.9 2,794.8 2,871.1 2,794.8
Mutual Fund Custodial
Assets Under Management, beginning of period 3,384.9 3,077.8 2,816.2 2,675.5 2,433.5 3,384.9 2,433.5
Deposits 292.6 288.3 270.6 283.1 255.4 292.6 255.4
Surrenders, benefits, and product charges (146.8) (135.1) (133.8) (114.2) (115.3) (146.8) (115.3)
Net cash flow 145.7 153.3 136.8 168.9 140.1 145.7 140.1
Interest credited and investment performance 43.7 153.8 124.8 (28.1) 101.8 43.7 101.8
Assets Under Management, end of period 3,574.3 3,384.9 3,077.8 2,816.2 2,675.5 3,574.3 2,675.5
Other Annuities
Assets Under Management, beginning of period 474.8 452.6 438.9 444.7 428.7 474.8 428.7
Deposits 1.3 1.0 0.6 1.1 1.6 1.3 1.6
Surrenders, benefits, and product charges (11.9) (12.4) (14.1) (13.0) (15.8) (11.9) (15.8)
Net cash flow (10.5) (11.4) (13.5) (11.8) (14.3) (10.5) (14.3)
Interest credited and investment performance 6.1 33.6 27.2 6.1 30.3 6.1 30.3
Assets Under Management, end of period 470.4 474.8 452.6 438.9 444.7 470.4 444.7
Annuities - Total
Assets Under Management, beginning of period 26,646.7 26,379.2 26,233.5 26,228.0 26,101.1 26,646.7 26,101.1
Deposits 861.7 780.9 671.7 624.6 554.8 861.7 554.8
Surrenders, benefits, and product charges (806.8) (952.8) (932.7) (868.3) (775.1) (806.8) (775.1)
Net cash flow 54.9 (171.9) (261.0) (243.7) (220.3) 54.9 (220.3)
Interest credited and investment performance 266.0 439.4 406.7 249.2 347.3 266.0 347.3
Assets Under Management, end of period 26,967.6 26,646.7 26,379.2 26,233.5 26,228.0 26,967.6 26,228.0
Investment Management
Voya Financial Page 30 of 69
Investment Management Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Sources of operating earnings before income
taxes:
Investment capital and other investment income (1) 7.5 12.1 16.8 6.2 2.6 7.5 2.6
Fee based margin 153.0 155.0 143.3 142.4 129.3 153.0 129.3
Administrative expenses (110.7) (114.2) (106.1) (107.5) (101.8) (110.7) (101.8)
Operating earnings before income taxes 49.8 52.9 54.0 41.1 30.1 49.8 30.1
(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.
Voya Financial Page 31 of 69
Investment Management Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Operating revenues
Net investment income and net realized gains (losses) 7.3 11.7 16.4 6.1 2.8 7.3 2.8
Fee income 145.8 141.4 135.4 132.3 121.7 145.8 121.7
Other revenue 7.4 14.0 8.3 10.2 7.4 7.4 7.4
Total operating revenues 160.5 167.1 160.1 148.6 131.9 160.5 131.9
Operating benefits and expenses
Operating expenses (110.7) (114.2) (106.1) (107.5) (101.8) (110.7) (101.8)
Total operating benefits and expenses (110.7) (114.2) (106.1) (107.5) (101.8) (110.7) (101.8)
Operating earnings before income taxes 49.8 52.9 54.0 41.1 30.1 49.8 30.1
Voya Financial Page 32 of 69
Investment Management Key Metrics
Balances as of Balances as of
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Client Assets by Source:
External clients
Investment Management sourced 69,104.4 66,362.2 63,275.4 60,643.9 58,002.1 69,104.4 58,002.1
Affiliate sourced 57,988.9 53,935.0 52,169.5 49,404.6 49,658.0 57,988.9 49,658.0
Subtotal external clients 127,093.3 120,297.2 115,445.0 110,048.5 107,660.1 127,093.3 107,660.1
General Account (1) 79,684.4 78,988.8 80,260.3 80,275.3 79,965.9 79,684.4 79,965.9
Total Client Assets (AUM) 206,777.7 199,286.0 195,705.3 190,323.8 187,626.0 206,777.7 187,626.0
Administration Only Assets (AUA) 53,688.8 58,462.8 55,843.7 55,294.2 55,732.5 53,688.8 55,732.5
Total AUM and AUA 260,466.5 257,748.8 251,549.0 245,618.0 243,358.5 260,466.5 243,358.5
Three Months Ended Year to Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Analysis of investment advisory and administrative
revenues, net, by source: (2)
External clients
Investment Management sourced 78.5 74.6 69.4 68.2 58.0 78.5 58.0
Affiliate sourced 28.3 26.8 25.8 23.5 22.1 28.3 22.1
Subtotal External Clients 106.8 101.4 95.2 91.7 80.1 106.8 80.1
General Account 36.1 36.2 36.2 36.2 36.8 36.1 36.8
Total investment advisory and administrative revenues, net,
from AUM 142.9 137.6 131.4 127.9 116.9 142.9 116.9
Administration Only Fees 2.9 3.8 4.0 4.4 4.8 2.9 4.8
Total investment advisory and administrative revenues, net,
by source (2) 145.8 141.4 135.4 132.3 121.7 145.8 121.7
Revenue Yield (bps): (2) (3)
External clients
Investment Management sourced 46.7 46.0 44.7 45.6 41.5 46.7 41.5
Affiliate sourced 20.4 20.1 20.5 18.9 18.3 20.4 18.3
Revenue Yield on Institutional/retail 34.8 34.4 33.8 33.5 30.8 34.8 30.8
General Account 18.3 18.0 18.0 18.1 18.3 18.3 18.3
Revenue Yield on Client Assets (AUM) 28.3 27.7 27.3 27.0 25.3 28.3 25.3
Revenue Yield on Administration Only Assets (AUA) 2.1 2.7 2.9 3.1 3.5 2.1 3.5
Total Revenue Yield on AUM and AUA (bps) (2) (3) 22.6 22.1 21.8 21.6 20.3 22.6 20.3
(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.
Voya Financial Page 33 of 69
Investment Management Account Rollforward by Source
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
AUM Roll-forward By Source
Investment Management Sourced
Beginning AUM 66,362.2 63,275.4 60,643.9 58,002.1 54,061.9 66,362.2 54,061.9
Inflows
Inflows from sub-advisor replacements - - - - 197.6 - 197.6
Inflows-other 4,189.3 4,589.9 3,875.4 5,760.6 4,598.0 4,189.3 4,598.0
Outflows (2,844.0) (3,302.9) (3,160.6) (2,615.4) (2,164.9) (2,844.0) (2,164.9)
Net Flows 1,345.3 1,287.0 714.9 3,145.2 2,630.7 1,345.3 2,630.7
Net Money Market Flows 28.1 2.3 5.1 (21.5) (3.2) 28.1 (3.2)
Change in Market Value 843.6 1,827.6 1,801.8 (513.0) 1,728.2 843.6 1,728.2
Other (Including Acquisitions / Divestitures) 525.2 (30.0) 109.8 31.1 (415.5) 525.2 (415.5)
Investment Management sourced AUM End of Period 69,104.4 66,362.2 63,275.4 60,643.9 58,002.1 69,104.4 58,002.1
Organic Growth (Long Term Net Flows / Beginning of Period AUM) 2.03% 2.03% 1.18% 5.42% 4.87% 2.03% 4.87%
Market Growth % 1.27% 2.89% 2.97% -0.88% 3.20% 1.27% 3.20%
Affiliate Sourced
Beginning AUM 53,935.0 52,169.5 49,404.6 49,658.0 47,284.6 53,935.0 47,284.6
Inflows
Inflows from sub-advisor replacements 4,671.9 - 869.8 537.0 447.1 4,671.9 447.1
Inflows-other 949.2 1,149.3 1,849.6 1,024.1 1,579.6 949.2 1,579.6
Outflows (2,082.2) (1,790.4) (1,600.8) (1,606.7) (1,479.9) (2,082.2) (1,479.9)
Net Flows 3,538.9 (641.1) 1,118.6 (45.6) 546.8 3,538.9 546.8
Net Money Market Flows (45.5) (156.8) (21.1) 39.8 (226.2) (45.5) (226.2)
Change in Market Value 639.8 2,491.3 2,088.5 10.4 2,111.2 639.8 2,111.2
Other (Including Acquisitions / Divestitures) (79.3) 72.1 (421.0) (258.0) (58.5) (79.3) (58.5)
Affiliate sourced AUM End of Period 57,988.9 53,935.0 52,169.5 49,404.6 49,658.0 57,988.9 49,658.0
Organic Growth (Long Term Net Flows / Beginning of Period AUM) 6.56% -1.23% 2.26% -0.09% 1.16% 6.56% 1.16%
Market Growth % 1.19% 4.78% 4.23% 0.02% 4.46% 1.19% 4.46%
Other affiliate sourced net flows 4,340.2 10.0 1,722.3 572.2 1,040.4 4,340.2 1,040.4
Variable annuity net flows (801.3) (651.1) (603.8) (617.8) (493.6) (801.3) (493.6)
Total affiliate sourced net flows 3,538.9 (641.1) 1,118.6 (45.6) 546.8 3,538.9 546.8
Investment Management sourced net flows 1,345.3 1,287.0 714.9 3,145.2 2,630.7 1,345.3 2,630.7
Total net flows 4,884.2 645.9 1,833.5 3,099.6 3,177.5 4,884.2 3,177.5
Net Flows excluding sub-advisor replacements and variable annuity net
flows 1,013.6 1,297.0 1,567.5 3,180.4 3,026.4 1,013.6 3,026.4
Voya Financial Page 34 of 69
Investment Management Account Value by Asset Type
Balances as of
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
(in millions USD)
Institutional
Equity 18,934.5 18,334.8 16,934.3 15,645.2 14,644.1
Fixed Income 38,014.5 36,532.3 35,223.5 34,034.0 32,246.4
Real Estate - - - - -
Money Market 28.1 28.6 27.2 18.9 17.1
Total 56,977.1 54,895.7 52,185.0 49,698.1 46,907.6
Retail
Equity 42,320.6 41,408.5 38,963.8 36,162.9 36,199.9
Fixed Income 18,798.5 15,209.9 15,191.3 15,208.2 15,459.7
Real Estate 6,873.5 6,647.6 6,801.5 6,660.2 6,794.1
Money Market 2,123.6 2,135.5 2,303.4 2,319.1 2,298.7
Total 70,116.2 65,401.5 63,260.0 60,350.4 60,752.4
General Account
Equity 265.4 280.3 292.6 356.5 360.5
Fixed Income 78,457.1 77,958.6 78,097.5 78,137.2 76,389.0
Real Estate - - - - -
Money Market 961.9 749.9 1,870.2 1,781.6 3,216.4
Total 79,684.4 78,988.8 80,260.3 80,275.3 79,965.9
Combined Asset Type
Equity 61,520.5 60,023.6 56,190.9 52,164.6 51,204.6
Fixed Income 135,270.1 129,700.8 128,512.2 127,379.4 124,095.1
Real Estate 6,873.5 6,647.6 6,801.5 6,660.2 6,794.1
Money Market 3,113.6 2,914.0 4,200.7 4,119.6 5,532.2
Total 206,777.7 199,286.0 195,705.3 190,323.8 187,626.0
Individual Life
Voya Financial Page 36 of 69
Individual Life Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Sources of operating earnings before income
taxes:
Investment spread and other investment income (1) 53.9 57.1 95.1 48.2 52.4 53.9 52.4
Fee based margin 5.5 5.8 4.6 5.0 4.8 5.5 4.8
Net underwriting gain (loss) and other revenue 86.7 100.4 119.9 115.8 115.9 86.7 115.9
Administrative expenses (68.3) (65.9) (64.0) (69.8) (67.0) (68.3) (67.0)
Trail commissions (6.2) (4.9) (4.8) (5.9) (7.7) (6.2) (7.7)
DAC/VOBA and other intangibles amortization,
excluding unlocking (1) (33.4) (39.1) (70.2) (48.4) (44.9) (33.4) (44.9)
DAC/VOBA and other intangibles unlocking (1) (7.1) (6.4) 36.4 (4.9) (2.7) (7.1) (2.7)
Operating earnings before income taxes 31.1 47.0 117.0 40.0 50.8 31.1 50.8
Gross Investment Income
Fixed income 210.7 209.5 208.6 204.2 203.2 210.7 203.2
Limited partnership income 4.2 3.6 0.7 3.9 1.5 4.2 1.5
Prepayment fee income 0.5 3.6 3.6 3.1 7.7 0.5 7.7
Total gross investment income 215.4 216.7 212.9 211.2 212.4 215.4 212.4
Investment expenses (6.1) (6.2) (5.8) (5.7) (5.4) (6.1) (5.4)
Credited interest (162.1) (165.1) (162.5) (163.8) (162.3) (162.1) (162.3)
Net margin 47.2 45.4 44.6 41.7 44.7 47.2 44.7
Other investment income (1) (2) 6.7 11.7 50.6 6.5 7.6 6.7 7.6
Investment spread and other investment income 53.9 57.1 95.1 48.2 52.4 53.9 52.4
Net underwriting gain (loss) and other revenue
Fee Revenue/Premiums 488.5 494.2 499.3 500.1 488.4 488.5 488.4
Net Mortality, including Reinsurance (326.4) (305.8) (283.9) (293.4) (301.8) (326.4) (301.8)
Reserve Change/Other (75.4) (88.0) (95.5) (90.9) (70.7) (75.4) (70.7)
Total net underwriting gain (loss) and other
revenue 86.7 100.4 119.9 115.8 115.9 86.7 115.9
(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
Voya Financial Page 37 of 69
Individual Life Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Operating revenues
Net investment income and net realized gains (losses) 219.8 224.5 258.7 215.4 216.9 219.8 216.9
Fee income 283.6 278.5 278.4 280.0 276.8 283.6 276.8
Premiums 183.7 185.3 174.7 192.1 185.8 183.7 185.8
Other revenue 5.1 4.6 5.3 7.3 7.6 5.1 7.6
Total operating revenues 692.2 692.9 717.1 694.8 687.1 692.2 687.1
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (527.8) (518.8) (468.7) (512.4) (501.6) (527.8) (501.6)
Operating expenses (95.7) (88.9) (83.9) (94.6) (90.9) (95.7) (90.9)
Net amortization of DAC/VOBA (37.6) (38.2) (47.5) (47.6) (42.9) (37.6) (42.9)
Interest expense - - - (0.2) (0.9) - (0.9)
Total operating benefits and expenses (661.1) (645.9) (600.1) (654.8) (636.3) (661.1) (636.3)
Operating earnings before income taxes 31.1 47.0 117.0 40.0 50.8 31.1 50.8
Voya Financial Page 38 of 69
Individual Life Key Metrics
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Sales by Product Line
Guaranteed - - 0.1 - 0.5 - 0.5
Accumulation 2.8 2.0 2.8 3.9 4.0 2.8 4.0
Indexed 7.9 8.4 5.8 6.6 6.8 7.9 6.8
Total Universal life 10.7 10.4 8.7 10.5 11.3 10.7 11.3
Variable life 0.9 0.7 2.8 2.4 2.7 0.9 2.7
Term 7.2 9.8 11.2 13.9 15.2 7.2 15.2
Whole life 0.1 0.1 0.1 - - 0.1 -
Total sales by product line 18.9 21.0 22.8 26.8 29.2 18.9 29.2
Sales by Distribution
Independent life sales 13.2 12.9 13.3 17.2 19.1 13.2 19.1
Strategic distribution 3.7 5.2 5.8 5.3 5.4 3.7 5.4
Alternative and specialty markets 2.0 2.9 3.7 4.3 4.7 2.0 4.7
Total sales by distribution 18.9 21.0 22.8 26.8 29.2 18.9 29.2
Gross premiums and deposits by product:
Interest sensitive 276.0 276.1 271.5 273.2 275.2 276.0 275.2
Non - interest sensitive 223.6 227.0 217.2 233.6 223.4 223.6 223.4
Total gross premiums and deposits 499.6 503.0 488.7 506.8 498.6 499.6 498.6
Applications
New business policy count (Paid) 7,879 9,906 11,904 15,290 16,137 7,879 16,137
End of Period:
In-force face amount (by product)
Universal life 78,162 78,581 78,901 79,505 79,969 78,162 79,969
Variable life 27,667 28,198 28,679 29,153 29,642 27,667 29,642
Term 494,756 495,995 496,935 497,596 496,919 494,756 496,919
Whole life 2,176 2,217 2,241 2,274 2,313 2,176 2,313
Total In-force Face 602,761 604,990 606,756 608,528 608,844 602,761 608,844
In-force policy count (in whole numbers)
Universal life 289,045 292,096 295,241 298,406 301,703 289,045 301,703
Variable life 65,635 66,811 67,887 69,135 70,364 65,635 70,364
Term 828,414 830,832 832,506 832,402 829,444 828,414 829,444
Whole life 140,209 142,409 144,274 146,425 148,767 140,209 148,767
Total Policy Counts 1,323,303 1,332,148 1,339,908 1,346,368 1,350,278 1,323,303 1,350,278
Assets under management
General account 13,308.0 13,271.3 13,257.4 13,190.7 13,089.6 13,308.0 13,089.6
Separate account 2,699.7 2,724.3 2,590.3 2,487.0 2,509.2 2,699.7 2,509.2
Total 16,007.7 15,995.6 15,847.7 15,677.7 15,598.8 16,007.7 15,598.8
Employee Benefits
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Employee Benefits Sources of Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Sources of operating earnings before income taxes:
Investment spread and other investment income (1) 10.9 13.6 16.3 11.7 12.0 10.9 12.0
Net underwriting gain (loss) and other revenue 83.1 78.3 76.3 86.9 62.8 83.1 62.8
Administrative expenses (44.7) (38.5) (39.9) (41.0) (39.6) (44.7) (39.6)
Trail commissions (23.4) (18.0) (18.7) (19.6) (19.7) (23.4) (19.7)
DAC/VOBA and other intangibles amortization, excluding
unlocking (4.4) (4.4) (4.9) (3.9) (3.1) (4.4) (3.1)
DAC/VOBA and other intangibles unlocking (4.6) (0.5) - - - (4.6) -
Operating earnings before income taxes 16.9 30.5 29.1 34.1 12.4 16.9 12.4
Gross Investment Income
Fixed income 24.7 25.4 25.3 24.7 26.1 24.7 26.1
Limited partnership income 0.4 0.6 - 0.4 0.1 0.4 0.1
Prepayment fee income 0.1 1.0 1.1 1.3 0.5 0.1 0.5
Total gross investment income 25.2 27.0 26.4 26.4 26.7 25.2 26.7
Investment expenses (0.8) (0.6) (0.8) (0.8) (0.9) (0.8) (0.9)
Credited interest (15.8) (15.7) (15.8) (16.1) (16.3) (15.8) (16.3)
Net margin 8.6 10.7 9.8 9.5 9.5 8.6 9.5
Other investment income (1) (2) 2.3 2.9 6.5 2.2 2.5 2.3 2.5
Investment spread and other investment income 10.9 13.6 16.3 11.7 12.0 10.9 12.0
Group life
Premiums 113.3 117.2 118.1 119.3 118.9 113.3 118.9
Benefits (92.9) (84.3) (97.0) (89.9) (101.5) (92.9) (101.5)
Other (3) (2.1) (2.5) (1.1) (2.6) (3.1) (2.1) (3.1)
Total 18.3 30.5 20.0 26.8 14.2 18.3 14.2
Loss Ratio (Interest adjusted) 82.0% 72.0% 82.1% 75.4% 85.4% 82.0% 85.4%
Group stop loss
Premiums 163.9 138.8 136.3 133.9 135.7 163.9 135.7
Benefits (118.6) (108.9) (99.3) (96.6) (105.4) (118.6) (105.4)
Other (3) (1.4) (0.4) (1.1) (0.3) (1.3) (1.4) (1.3)
Total 43.9 29.5 35.9 37.0 29.1 43.9 29.1
Loss Ratio 72.4% 78.4% 72.8% 72.1% 77.6% 72.4% 77.6%
Voluntary Benefits, Disability, and Other 21.0 18.3 20.5 23.1 19.4 21.0 19.4
Net underwriting gain (loss) and other revenue 83.1 78.3 76.3 86.9 62.8 83.1 62.8
(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.
Voya Financial Page 41 of 69
Employee Benefits Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Operating revenues
Net investment income and net realized gains (losses) 26.7 29.2 32.1 27.9 28.4 26.7 28.4
Fee income 15.6 15.9 15.5 15.8 15.8 15.6 15.8
Premiums 296.3 272.4 269.6 269.0 274.9 296.3 274.9
Other revenue 0.3 (1.0) (1.0) (1.0) (1.0) 0.3 (1.0)
Total operating revenues 338.9 316.5 316.2 311.7 318.1 338.9 318.1
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (244.5) (223.9) (223.7) (213.2) (242.6) (244.5) (242.6)
Operating expenses (68.4) (57.1) (58.5) (60.5) (60.0) (68.4) (60.0)
Net amortization of DAC/VOBA (9.1) (5.0) (4.9) (3.9) (3.1) (9.1) (3.1)
Total operating benefits and expenses (322.0) (286.0) (287.1) (277.6) (305.7) (322.0) (305.7)
Operating earnings before income taxes 16.9 30.5 29.1 34.1 12.4 16.9 12.4
Voya Financial Page 42 of 69
Employee Benefits Key Metrics
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Sales
Group life (Basic / Sup / AD&D) 37.5 5.4 7.3 1.6 44.0 37.5 44.0
Group stop loss 182.4 14.0 38.1 11.6 89.7 182.4 89.7
Disability 8.6 3.1 2.5 1.1 10.9 8.6 10.9
Association (Life, DI, PAI) — 3.6 0.1 0.3 —— -
Other (PAI) 1.0 0.4 0.2 0.1 1.8 1.0 1.8
Total group products 229.5 26.5 48.2 14.7 146.4 229.5 146.4
Voluntary products 22.3 9.1 4.0 3.8 10.3 22.3 10.3
Total sales by product line 251.8 35.6 52.2 18.4 156.7 251.8 156.7
Total gross premiums and deposits 342.9 314.5 316.2 311.3 319.5 342.9 319.5
Total annualized in-force premiums 1,407.7 1,294.6 1,292.4 1,273.5 1,316.2 1,407.7 1,316.2
Assets under management (EOP)
General account 1,760.5 1,739.2 1,753.6 1,747.3 1,739.1 1,760.5 1,739.1
Separate account 15.9 15.9 15.2 14.8 14.7 15.9 14.7
Total 1,776.4 1,755.1 1,768.8 1,762.1 1,753.8 1,776.4 1,753.8
Corporate
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Corporate Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Interest expense (47.0) (47.0) (47.6) (43.2) (41.9) (47.0) (41.9)
Closed Block Variable Annuity contingent capital LOC — —— (5.6) (12.8) — (12.8)
Amortization of intangibles (8.6) (8.7) (8.7) (8.8) (8.8) (8.6) (8.8)
Other 18.3 11.7 (7.4) 4.8 13.4 18.3 13.4
Operating earnings before income taxes (37.3) (44.0) (63.7) (52.8) (50.1) (37.3) (50.1)
Closed Blocks (Variable Annuity and Other)
Voya Financial Page 46 of 69
Closed Block ISP and Other Operating Earnings
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Closed Block Institutional Spread Products (1) 5.4 (5.8) 8.7 10.9 22.1 5.4 22.1
Closed Block Other (2) (4.5) 2.5 5.8 7.1 (0.7) (4.5) (0.7)
Operating earnings before income taxes 0.9 (3.3) 14.5 18.0 21.4 0.9 21.4
Three Months Ended Year-to-Date
Closed Block Institutional Spread Products 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Operating revenues
Net investment income and net realized gains (losses) (1) 17.2 21.1 22.8 26.0 38.0 17.2 38.0
Fee income - - - - - - -
Premiums 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Other revenue (0.2) (0.3) (0.3) (0.3) (0.3) (0.2) (0.3)
Total operating revenues 17.6 21.4 23.1 26.3 38.3 17.6 38.3
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (8.8) (24.6) (11.9) (12.7) (13.5) (8.8) (13.5)
Operating expenses (3.3) (2.5) (2.4) (2.6) (2.6) (3.3) (2.6)
Net amortization of DAC/VOBA (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1)
Interest expense - - - - - - -
Total operating benefits and expenses (12.2) (27.2) (14.4) (15.4) (16.2) (12.2) (16.2)
Operating earnings before income taxes 5.4 (5.8) 8.7 10.9 22.1 5.4 22.1
Three Months Ended Year-to-Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Closed Block Other
Operating revenues
Net investment income and net realized gains (losses) (2) 5.9 5.5 7.1 6.0 6.0 5.9 6.0
Fee income - - - - - - -
Premiums 1.9 (0.1) 0.4 1.1 0.9 1.9 0.9
Other revenue 0.2 0.2 0.1 0.2 0.3 0.2 0.3
Total operating revenues 8.0 5.6 7.6 7.3 7.2 8.0 7.2
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (6.7) (0.6) 0.8 7.3 (6.8) (6.7) (6.8)
Operating expenses (5.8) (2.5) (2.6) (7.5) (1.1) (5.8) (1.1)
Total operating benefits and expenses (12.5) (3.1) (1.8) (0.2) (7.9) (12.5) (7.9)
Operating earnings before income taxes (4.5) 2.5 5.8 7.1 (0.7) (4.5) (0.7)
(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.
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Closed Block Variable Annuity Income (Loss) before income taxes
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Revenues
Net investment income 34.8 29.5 28.8 20.9 18.4 34.8 18.4
Fee income 316.8 331.8 325.3 320.7 309.3 316.8 309.3
Premiums 50.2 40.4 38.8 - - 50.2 -
Net realized gains (losses) (121.1) (560.8) (463.0) (408.4) (776.4) (121.1) (776.4)
Other revenues and premiums 3.9 3.2 4.0 6.5 4.7 3.9 4.7
Total revenues 284.6 (155.9) (66.1) (60.3) (444.0) 284.6 (444.0)
Benefits and expenses
Interest credited and other benefits to contract owners/policyholders (126.5) 64.5 37.6 (144.3) 94.1 (126.5) 94.1
Operating expenses and interest expense (122.1) (119.6) (119.2) (116.5) (112.2) (122.1) (112.2)
Net amortization of DAC/VOBA (15.8) (15.4) (19.7) (17.3) (15.0) (15.8) (15.0)
Total benefits and expenses (264.4) (70.5) (101.3) (278.1) (33.1) (264.4) (33.1)
Income (loss) before income taxes 20.2 (226.4) (167.4) (338.4) (477.1) 20.2 (477.1)
Three Months Ended Year-to-Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
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) (239.1) (201.9) (366.3) (407.4) (453.9) (239.1) (453.9)
Gains (losses) related to CHO program (1) (10.9) - (40.7) (45.6) (158.5) (10.9) (158.5)
Gain (loss) due to nonperformance risk(1) 29.5 (271.7) 5.2 (121.3) (106.7) 29.5 (106.7)
Net investment gains (losses) (1) (0.6) (0.7) (3.7) 3.5 13.5 (0.6) 13.5
DAC/VOBA and other intangibles unlocking and loss recognition 0.4 1.6 (4.3) (1.8) (0.2) 0.4 (0.2)
(1) Amounts exclude net amortization of DAC/VOBA and other intangibles.
Voya Financial Page 48 of 69
Closed Block Variable Annuity Death and Living Benefits
Balances as of
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
Death and living benefits-account value
GMAB/GMWB 893 943 957 970 1,043
GMIB 15,594 15,909 15,443 15,048 15,482
GMWBL 16,373 16,537 16,053 15,636 16,075
No living benefits 11,117 11,351 11,107 10,934 11,246
Total (1) 43,977 44,740 43,560 42,588 43,846
Net amount at risk (after reinsurance)
Total DB NAR 5,090 5,074 5,720 6,437 6,105
GMAB/GMWB 20 20 25 32 32
GMIB(2) 1,964 1,682 2,321 2,780 3,029
GMWBL(2) 656 452 700 960 1,293
Total LB NAR 2,640 2,154 3,046 3,772 4,354
(1) Excludes assets associated with Payout Reserves, Policy Loans, and Life Insurance Business
(2) GMIB and GMWBL values represent discounted net amount at risk
Voya Financial Page 49 of 69
Closed Block Variable Annuity AUM Rollforward
Three Months Ended Year-to-Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
(in millions USD)
Products in accumulation phase:
Balance as of beginning of period 44,788.2 43,608.4 42,635.2 43,897.8 42,590.6 44,788.2 42,590.6
Deposits 53.6 55.1 61.0 79.6 74.9 53.6 74.9
Surrenders, benefits, and product charges (1,234.4) (1,172.5) (1,097.2) (1,175.2) (1,057.8) (1,234.4) (1,057.8)
Net cash flow (1,180.9) (1,117.4) (1,036.2) (1,095.6) (982.9) (1,180.9) (982.9)
Interest credited and investment performance 415.4 2,297.2 2,009.3 (167.0) 2,290.1 415.4 2,290.1
Balance as of end of period 44,022.8 44,788.2 43,608.4 42,635.2 43,897.8 44,022.8 43,897.8
End of period contracts in payout status 1,019.2 910.8 818.5 724.2 648.8 1,019.2 648.8
Total balance as of end of period* 45,042.0 45,699.0 44,426.9 43,359.4 44,546.6 45,042.0 44,546.6
Assets Under Management
General account 1,517.3 1,429.1 1,379.7 1,336.6 1,272.1 1,517.3 1,272.1
Separate account 43,524.7 44,269.9 43,047.2 42,022.6 43,274.5 43,524.7 43,274.5
Total* 45,042.0 45,699.0 44,426.9 43,359.4 44,546.6 45,042.0 44,546.6
*Includes products in accumulation and payout phase, Policy Loans, and Life Insurance Business
Investment Information
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Portfolio Composition
Balances as of
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
(in millions USD) Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total
Composition of Investment Portfolio
Fixed maturities, available for sale, at fair value, before consolidation 70,474.0 68,341.9 69,258.8 69,930.1 70,708.5
CLOs Adjustments (1) (43.8) (43.0) (118.0) (119.6) (133.0)
VOEs Adjustments (1) 19.5 18.9 30.6 32.9 47.4
Fixed maturities, available for sale, at fair value, after consolidation 70,449.7 79.3% 68,317.8 78.4% 69,171.4 77.7% 69,843.4 78.0% 70,622.9 76.7%
Fixed maturities, at fair value using the fair value option 3,082.1 3.5% 2,935.3 3.4% 2,910.2 3.3% 2,771.6 3.1% 2,675.8 2.9%
Equity securities, available for sale, at fair value 276.6 0.3% 314.4 0.4% 279.6 0.3% 281.0 0.3% 282.3 0.3%
Short-term investments 1,046.2 1.2% 1,048.1 1.2% 2,547.3 2.8% 2,404.8 2.7% 2,404.8 3.2%
Mortgage loans on real estate 9,258.1 10.4% 9,312.2 10.7% 9,015.6 10.1% 8,929.1 10.0% 8,949.4 9.7%
Policy loans 2,119.7 2.4% 2,147.0 2.5% 2,147.5 2.4% 2,144.9 2.4% 2,204.4 2.4%
Limited partnerships/corporations, before consolidation 875.0 890.4 984.3 1,024.0 1,036.7
VOEs Adjustments (1) (656.1) (654.0) (594.3) (593.8) (568.2)
Limited partnerships/corporations, after consolidation 218.9 0.2% 236.4 0.3% 390.0 0.4% 430.2 0.5% 468.5 0.5%
Derivatives 1,044.7 1.2% 1,149.3 1.3% 1,087.4 1.3% 1,174.4 1.3% 2,077.0 2.3%
Other investments 124.1 0.1% 124.6 0.1% 145.7 0.2% 168.4 0.2% 166.7 0.2%
Securities pledged to creditors 1,271.3 1.4% 1,465.7 1.7% 1,312.6 1.5% 1,357.0 1.5% 1,774.7 1.8%
Total investments, after consolidation 88,891.4 100.0% 87,050.8 100.0% 89,007.3 100.0% 89,504.8 100.0% 92,213.8 100.0%
Fixed Maturity Securities—Security Sector (2)
U.S. Government agencies and authorities 5,907.2 8.0% 5,800.1 8.0% 6,336.4 8.6% 6,660.8 9.0% 6,467.0 8.6%
U.S. Corporate—Public 33,257.9 44.5% 32,033.7 44.0% 32,048.9 43.8% 31,643.8 42.8% 32,137.7 42.8%
U.S. Corporate—Private 5,915.6 7.9% 5,444.9 7.5% 5,362.3 7.3% 5,423.1 7.3% 5,622.2 7.5%
Foreign Government / Agency 907.2 1.2% 1,051.4 1.4% 1,057.5 1.4% 1,091.8 1.5% 1,156.1 1.5%
Foreign Corporate—Public 7,383.6 9.9% 7,044.1 9.7% 6,982.4 9.5% 6,572.7 8.9% 6,807.3 9.1%
Foreign Corporate—Private 8,449.8 11.4% 8,261.0 11.4% 8,149.1 11.1% 8,083.4 10.9% 8,146.6 10.9%
State, municipalities and political subdivisions 293.6 0.4% 281.1 0.4% 285.0 0.4% 292.5 0.4% 317.8 0.4%
Residential mortgaged-backed securities:
CMO-B Agency 3,051.7 4.0% 2,945.5 4.0% 2,882.5 3.9% 2,706.0 3.7% 2,934.3 3.9%
CMO-B Non-Agency 424.2 0.6% 430.3 0.6% 449.0 0.6% 479.7 0.6% 540.5 0.7%
Agency 2,735.0 3.6% 2,881.9 4.0% 3,030.0 4.1% 3,336.1 4.5% 2,706.7 3.6%
Non-Agency (3) 1,447.4 1.9% 1,478.9 2.0% 1,587.8 2.2% 1,847.0 2.5% 1,997.0 2.7%
Total Residential mortgage-backed securities 7,658.3 10.1% 7,736.6 10.6% 7,949.3 10.8% 8,368.8 11.3% 8,178.5 10.9%
Commercial mortgage-backed securities 3,796.1 5.0% 3,752.1 5.2% 3,867.6 5.3% 4,425.9 6.0% 4,813.2 6.4%
Other asset-backed securities (3) 1,233.8 1.6% 1,313.8 1.8% 1,355.7 1.8% 1,409.2 1.9% 1,427.0 1.9%
Total fixed maturities, including securities pledged 74,803.1 100.0% 72,718.8 100.0% 73,394.2 100.0% 73,972.0 100.0% 75,073.4 100.0%
Fixed Maturity Securities—Contractual Maturity Dates
Due to mature:
Due in one year or less 2,032.5 2.7% 2,153.6 3.0% 2,423.9 3.3% 2,471.6 3.3% 3,021.8 4.0%
Due after one year through five years 14,748.5 19.8% 14,397.4 19.8% 16,036.2 21.8% 15,862.9 21.4% 15,205.4 20.3%
Due after five years through ten years 22,070.1 29.6% 21,303.4 29.3% 20,113.5 27.4% 19,928.2 26.9% 19,830.3 26.4%
Due after ten years 23,263.8 31.2% 22,061.9 30.3% 21,648.0 29.6% 21,505.4 29.2% 22,597.2 30.1%
CMO-B 3,475.9 4.6% 3,375.8 4.6% 3,331.5 4.5% 3,185.7 4.3% 3,474.8 4.6%
Mortgage-backed securities 7,978.5 10.5% 8,112.9 11.2% 8,485.4 11.6% 9,609.0 13.0% 9,516.9 12.7%
Other asset-backed securities (3) 1,233.8 1.6% 1,313.8 1.8% 1,355.7 1.8% 1,409.2 1.9% 1,427.0 1.9%
Total fixed maturities, including securities pledged 74,803.1 100.0% 72,718.8 100.0% 73,394.2 100.0% 73,972.0 100.0% 75,073.4 100.0%
Fixed Maturity Securities—NAIC Quality Designation
NAIC Quality Designation
1 | | 42,124.9 56.3% 41,169.4 56.5% 41,616.0 56.7% 42,428.3 57.4% 42,710.2 56.9% |
2 | | 29,249.6 39.1% 28,555.4 39.3% 28,315.4 38.6% 27,962.2 37.8% 28,764.1 38.3% |
3 | | 2,772.8 3.7% 2,415.8 3.3% 2,735.2 3.7% 2,661.7 3.6% 2,605.5 3.5% |
4 | | 407.9 0.5% 329.5 0.5% 456.9 0.6% 551.3 0.7% 578.3 0.8% |
5 | | 59.3 0.1% 61.7 0.1% 78.2 0.1% 160.5 0.2% 186.0 0.2% |
6 | | 188.6 0.3% 187.0 0.3% 192.5 0.3% 208.0 0.3% 229.3 0.3% |
Total fixed maturities, including securities pledged (4) 74,803.1 100.0% 72,718.8 100.0% 73,394.2 100.0% 73,972.0 100.0% 75,073.4 100.0%
Fixed Maturity Securities—ARO Quality Rating
ARO Quality Rating
AAA 15,506.9 20.7% 15,330.7 21.1% 15,856.2 21.6% 16,486.5 22.3% 16,047.9 21.4%
AA 4,464.3 6.0% 4,342.1 6.0% 4,518.3 6.2% 4,349.5 5.9% 4,338.0 5.8%
A 20,474.7 27.4% 19,793.6 27.2% 19,877.9 27.1% 19,702.3 26.6% 20,115.9 26.8%
BBB 29,449.9 39.4% 28,561.5 39.2% 28,383.4 38.6% 28,310.1 38.3% 29,205.9 38.9%
BB 2,858.8 3.8% 2,676.1 3.7% 2,682.6 3.7% 2,843.4 3.8% 2,877.3 3.8%
B and below 2,048.5 2.7% 2,014.8 2.8% 2,075.8 2.8% 2,280.2 3.1% 2,488.4 3.3%
Total fixed maturities, including securities pledged 74,803.1 100.0% 72,718.8 100.0% 73,394.2 100.0% 73,972.0 100.0% 75,073.4 100.0%
(1) Adjustments include the elimination of intercompany transactions between the Company and its consolidated investment entities, primarily the
elimination of the Company’s equity at risk recorded as investments by the Company (before consolidation) against either equity (private equity and real
estate partnership funds) or senior and subordinated debt (CLOs) of the funds.
Fixed Maturity Securities includes fixed maturities,available for sale , fixed maturities at fair value using the fair value option and securities pledged to creditors.
Subprime asset-backed securities are included as a component of Non-Agency RMBS under this presentation.
ARO ratings do not directly translate into NAIC ratings.
Voya Financial Page 52 of 69
Portfolio Results
Three Months Ended Year to Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
(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) 843.8 5.02% 839.4 4.98% 824.1 4.88% 831.0 5.02% 855.6 5.21% 843.8 5.02% 855.6 5.21%
Equity securities 3.8 5.59% 3.5 4.54% 3.4 4.96% 0.5 0.77% 2.6 3.72% 3.8 5.59% 2.6 3.72%
Mortgage loans 114.4 5.06% 114.2 5.18% 112.8 5.13% 113.6 5.24% 115.4 5.38% 114.4 5.06% 115.4 5.38%
Limited partnerships 31.4 15.46% 61.5 31.85% 116.1 60.40% 27.8 11.46% 23.2 9.37% 31.4 15.46% 23.2 9.37%
Policy loans 28.0 5.42% 29.2 5.58% 29.5 5.66% 29.7 5.69% 29.9 5.57% 28.0 5.42% 29.9 5.57%
Short-term investments 0.8 0.13% 0.8 0.16% 0.8 0.12% 1.0 0.17% 0.9 0.12% 0.8 0.13% 0.9 0.12%
Derivatives (1) 1.3 N/A (6.8) N/A (2.2) N/A (9.0) N/A (11.9) N/A 1.3 N/A (11.9) N/A
Pre-payment fee income 7.5 0.04% 25.9 0.12% 14.6 0.07% 25.7 0.12% 25.6 0.12% 7.5 0.04% 25.6 0.12%
Other assets 5.5 N/A 8.3 N/A 23.6 N/A 3.3 N/A 3.5 N/A 5.5 N/A 3.5 N/A
Gross investment income before expenses and fees 1,036.5 5.07% 1,076.0 5.28% 1,122.7 5.47% 1,023.6 5.07% 1,044.8 5.17% 1,036.5 5.07% 1,044.8 5.17%
Expenses and fees (40.3) -0.20% (40.7) -0.21% (39.5) -0.19% (40.7) -0.21% (40.8) -0.21% (40.3) -0.20% (40.8) -0.21%
Total investment income and annualized yield 996.2 4.87% 1,035.3 5.07% 1,083.2 5.28% 982.9 4.86% 1,004.0 4.96% 996.2 4.87% 1,004.0 4.96%
Less: Closed Block Variable Annuity (CBVA) investment income net of expenses and
fees 34.8 29.5 28.8 20.9 18.4 34.8 18.4
Total investment income, excluding CBVA 961.4 1,005.8 1,054.4 962.0 985.6 961.4 985.6
Trading Gains/Losses
Fixed maturities 16.1 62.7 36.0 0.8 11.0 16.1 11.0
Equity securities 18.1 — 0.6 (0.1) 0.2 18.1 0.2
Mortgage loans 0.4 0.1 0.2 (0.2) — 0.4 —
Other investments (1.0) (3.2) 4.3 (3.0) 1.6 (1.0) 1.6
Total Trading Gains/Losses, excluding CBVA 33.6 59.6 41.1 (2.5) 12.8 33.6 12.8
Impairments
Fixed maturities (2.3) (13.1) (2.3) (5.4) (11.0) (2.3) (11.0)
Equity securities (1.0) — (1.2) (1.8) — (1.0) —
Mortgage loans — — — — — — —
Other investments — — (0.7) — — — —
Total Impairments, excluding CBVA (3.3) (13.1) (4.2) (7.2) (11.0) (3.3) (11.0)
Fair Value Adjustments (2) 59.7 42.6 19.6 (77.7) (10.2) 59.7 (10.2)
Derivatives, including Change in Fair Value of Derivatives related to
Guaranteed Benefits, excluding CBVA (64.1) 15.5 17.8 114.6 58.1 (64.1) 58.1
Net Realized Investment Gains (losses) and Net Guaranteed Benefit
Hedging Gains (losses), excluding CBVA 25.9 104.6 74.3 27.2 49.7 25.9 49.7
CBVA Investment Income and Realized Capital Gains (Losses) (86.3) (531.3) (434.2) (387.5) (758.0) (86.3) (758.0)
Business Sold Through MODCO REINS (3) 16.4 (12.3) (15.6) (62.7) (18.7) 16.4 (18.7)
Consolidation/eliminations (4) 37.6 12.7 25.6 7.3 65.3 37.6 65.3
Total Investment Income and Realized Capital Gains (Losses) 955.0 579.5 704.5 546.3 323.9 955.0 323.9
Operating income from CMO-B portfolio assets, including derivatives, is included in fixed maturity securities.
Fair value adjustments include adjustments related to CMO-B assets carried at fair value, among other income sources.
Income related to the Hannover Life Re Modco reinsurance transaction, in which the risk associated with these policies has been transferred to Hannover Life Re.
(1),(2),(3)
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.
Voya Financial Page 53 of 69
Alternative Investment Income
(in millions USD) Three Months Ended Year-to-Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Retirement
Average alternative investments 266.7 264.8 267.1 260.0 256.0 266.7 256.0
Alternative investment income 7.1 12.6 7.5 8.4 7.9 7.1 7.9
Annuities
Average alternative investments 179.3 170.9 171.5 178.8 189.2 179.3 189.2
Alternative investment income 6.4 9.1 4.5 7.6 4.4 6.4 4.4
Investment Management
Average alternative investments 141.7 127.1 124.2 123.8 120.8 141.7 120.8
Alternative investment income 7.3 10.0 4.9 6.1 2.8 7.3 2.8
Individual Life
Average alternative investments 123.9 125.5 127.7 138.8 132.1 123.9 132.1
Alternative investment income 5.5 7.1 3.4 6.3 3.4 5.5 3.4
Employee Benefits
Average alternative investments 24.1 24.5 25.1 25.6 23.6 24.1 23.6
Alternative investment income 0.8 1.4 0.8 1.1 0.6 0.8 0.6
Total Ongoing Business
Average alternative investments 735.7 712.8 715.6 727.0 721.7 735.7 721.7
Alternative investment income 27.1 40.2 21.1 29.5 19.1 27.1 19.1
Corporate
Average alternative investments 103.7 101.6 95.8 95.5 98.1 103.7 98.1
Alternative investment income 5.0 7.2 4.8 (5.7) 2.7 5.0 2.7
Closed Blocks (1)
Average alternative investments 29.8 51.7 58.8 59.4 62.4 29.8 62.4
Alternative investment income 1.1 3.0 2.5 2.4 1.8 1.1 1.8
Total Consolidated(2)
Average alternative investments 869.2 866.1 870.2 881.9 882.2 869.2 882.2
Alternative investment income 33.2 50.4 28.4 26.2 23.6 33.2 23.6
(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 3/31/14, 12/31/13 and 9/30/13 periods.
Voya Financial Page 54 of 69
Unrealized Gains (Losses)
(in millions USD)
Fixed Maturities, available for sale (including securities pledged)
Aging Schedule
Balances as of
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total
Less than 20% (587.6) 97.3% (1,087.3) 95.7% (992.6) 92.9% (929.8) 92.7% (191.9) 71.3%
20% or more for less than six months (8.5) 1.4% (18.6) 1.6% (47.3) 4.4% (35.3) 3.5% (3.9) 1.5%
20% or more for six months or greater (7.8) 1.3% (30.6) 2.7% (29.1) 2.7% (38.2) 3.8% (73.0) 27.2%
Total Unrealized Loss (603.9) 100.0% (1,136.5) 100.0% (1,069.0) 100.0% (1,003.3) 100.0% (268.8) 100.0%
Total Unrealized Gain 5,363.6 4,301.8 4,594.2 4,919.9 7,336.0
Net Unrealized Gain/Loss 4,759.7 3,165.3 3,525.2 3,916.6 7,067.2
Fixed Maturities Securities—Security Sector—Net Unrealized
Gain/(Loss)*
US Treasuries and US government agencies and authorities 305.0 108.1 255.7 348.7 638.7
US Corporate—Public 2,121.0 1,173.7 1,238.2 1,458.9 3,116.0
US Corporate—Private 393.7 294.6 354.2 363.5 561.5
Foreign Government / Agency 20.9 7.4 11.9 11.0 84.0
Foreign Corporate—Public 393.1 228.2 202.9 207.4 559.7
Foreign Corporate—Private 580.4 459.5 509.1 503.6 793.1
State, municipalities, and political subdivisions 17.1 9.1 11.0 14.2 29.2
Residential mortgaged-backed securities:
CMO-B Agency 385.5 376.5 397.0 422.3 505.9
CMO-B Non-Agency 119.5 118.1 115.5 117.1 128.5
Agency 5.3 (7.5) 13.1 7.9 55.8
Non-Agency 62.4 36.7 13.1 0.3 18.9
Total Residential mortgage-backed securities 572.7 523.8 538.7 547.6 709.1
Commercial Mortgage-Backed Securities 323.3 324.2 358.3 411.3 511.8
Other Asset-Backed Securities* 32.5 36.7 45.2 50.4 64.1
Total Net Unrealized Gain/Loss 4,759.7 3,165.3 3,525.2 3,916.6 7,067.2
* Subprime asset-backed securities are included as a component of Non-Agency RMBS under this presentation.
Voya Financial Page 55 of 69
Asset Backed Securities
(in millions USD)
RMBS Balances by Collateral Type
Balances as of
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
Amortized Amortized Amortized Amortized Amortized
Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost
Prime Agency 5,777.9 5,310.9 5,826.0 5,377.7 5,911.2 5,410.4 6,040.8 5,508.4 5,639.6 4,939.7
Prime / Non-Agency 904.0 750.2 933.7 786.5 1,021.6 872.1 1,148.9 1,000.6 1,300.0 1,116.1
Alt-A RMBS 353.3 297.7 353.5 307.4 358.8 326.0 376.3 344.6 402.0 365.2
Subprime Mortgage-Backed Securities 623.1 603.7 623.4 614.7 657.7 657.5 802.8 806.5 836.9 836.3
Total 7,658.3 6,962.5 7,736.6 7,086.3 7,949.3 7,266.0 8,368.8 7,660.1 8,178.5 7,257.3
CMBS Balances by Year of Origination
Balances as of
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
Amortized Amortized Amortized Amortized Amortized
Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost
2014 52.5 52.6 ————————
2013 341.6 337.7 197.2 200.4 ——————
2012 9.0 8.9 8.8 8.9 ——————
2010 7.9 8.0 ————————
2008 11.4 9.3 11.4 9.3 11.5 9.3 11.4 9.2 11.8 9.4
2007 1,148.2 1,014.2 1,148.1 1,017.8 1,264.7 1,123.6 1,636.3 1,457.6 1,810.3 1,583.0
2006 1,238.9 1,116.9 1,252.7 1,127.4 1,338.8 1,201.6 1,390.0 1,247.1 1,475.7 1,300.7
2005 and prior 986.6 925.2 1,133.9 1,064.1 1,252.6 1,174.8 1,388.2 1,300.7 1,515.4 1,408.3
Total 3,796.1 3,472.8 3,752.1 3,427.9 3,867.6 3,509.3 4,425.9 4,014.6 4,813.2 4,301.4
Other ABS Balances by Loan
Classification
Balances as of
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
Amortized Amortized Amortized Amortized Amortized
Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost Fair Value Cost
Credit Card Receivables 576.4 558.0 558.1 538.5 552.8 529.4 564.1 538.5 591.5 558.0
Automobile Receivables 384.4 383.6 447.9 447.1 471.3 470.2 500.1 498.9 471.1 468.1
CLO’s * 26.2 22.9 41.7 36.6 49.5 48.9 49.1 48.4 53.6 53.8
Other 246.8 236.8 266.1 254.9 282.1 268.8 295.9 280.3 310.8 291.0
Total 1,233.8 1,201.3 1,313.8 1,277.1 1,355.7 1,317.3 1,409.2 1,366.1 1,427.0 1,370.9
* Excludes consolidated CLO’s
Voya Financial Page 56 of 69
RMBS Securities Summary
(in millions USD)
RMBS*
By Rating and Origination Year
As of March 31, 2014
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 5,763.3 5,294.3 615.4 545.4 279.9 234.5 473.1 436.1 7,131.7 6,510.3
2 —— 38.2 36.8 30.5 28.6 95.9 107.2 164.6 172.6
3 8.5 10.5 45.4 43.2 23.8 22.4 31.3 35.6 109.0 111.7
4 6.1 6.1 3.4 0.9 16.4 9.9 16.4 20.0 42.3 36.9
5 —— 49.3 34.5 —— 4.5 2.0 53.8 36.5
6 —— 152.3 89.4 2.7 2.3 1.9 2.8 156.9 94.5
Total by rating 5,777.9 5,310.9 904.0 750.2 353.3 297.7 623.1 603.7 7,658.3 6,962.5
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 5,744.7 5,274.6 10.7 10.5 0.2 0.2 1.3 1.3 5,756.9 5,286.6
AA 3.0 3.0 28.8 26.5 —— 5.9 5.8 37.7 35.3
A 4.6 4.6 40.0 37.4 4.5 4.1 31.9 32.7 81.0 78.8
BBB —— 122.7 117.4 13.9 14.3 43.4 44.9 180.0 176.6
BB 8.5 10.5 66.0 60.7 18.0 17.8 48.7 53.9 141.2 142.9
B and below 17.1 18.2 635.8 497.7 316.7 261.3 491.9 465.1 1,461.5 1,242.3
Total by rating 5,777.9 5,310.9 904.0 750.2 353.3 297.7 623.1 603.7 7,658.3 6,962.5
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
2014 83.7 84.1 —————— 83.7 84.1
2013 699.4 701.8 —————— 699.4 701.8
2012 782.5 799.9 —————— 782.5 799.9
2011 1,064.3 1,057.3 —————— 1,064.3 1,057.3
2010 728.2 714.5 26.1 25.0 ———— 754.3 739.5
2009 328.0 319.0 10.1 10.2 ———— 338.1 329.2
2008 181.1 168.6 —————— 181.1 168.6
2007 395.4 359.1 143.9 132.1 78.1 66.4 178.7 163.6 796.1 721.2
2006 422.9 309.8 224.4 148.2 93.8 65.9 158.3 143.2 899.4 667.1
2005 and prior 1,092.4 796.8 499.5 434.7 181.4 165.4 286.1 296.9 2,059.4 1,693.8
Total by origination year 5,777.9 5,310.9 904.0 750.2 353.3 297.7 623.1 603.7 7,658.3 6,962.5
* Subprime mortgage-backed securities are included in RMBS under this presentation
Voya Financial Page 57 of 69
CMBS and Other Asset-Backed Securities Summary
(in millions USD)
CMBS
By Rating and Vintage
As of March 31, 2014
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
2014 52.5 52.6 - - - - - - - - - - 52.5 52.6
2013 341.6 337.7 - - - - - - - - - - 341.6 337.7
2012 9.0 8.9 - - - - - - - - - - 9.0 8.9
2010 7.9 8.0 - - - - - - - - - - 7.9 8.0
2008 - - - - - - 11.4 9.3 - - - - 11.4 9.3
2007 124.0 113.8 291.2 263.6 151.4 137.2 234.7 196.3 191.7 176.5 155.2 126.8 1,148.2 1,014.2
2006 552.2 513.6 186.4 171.5 152.2 139.1 202.5 181.1 91.9 68.7 53.7 42.9 1,238.9 1,116.9
2005 and prior 593.6 572.1 159.3 150.8 120.8 113.3 62.5 55.8 36.8 26.9 13.6 6.3 986.6 925.2
Total by origination year 1,680.8 1,606.7 636.9 585.9 424.4 389.6 511.1 442.5 320.4 272.1 222.5 176.0 3,796.1 3,472.8
Other Asset-Backed Securities*
By Rating and Classification
As of March 31, 2014
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 554.7 537.1 384.4 383.6 12.3 11.0 217.4 208.6 1,168.8 1,140.3
AA - - - - 5.4 4.6 1.9 2.4 7.3 7.0
A 21.7 20.9 - - 8.5 7.3 14.8 15.3 45.0 43.5
BBB - - - - - - 10.5 9.8 10.5 9.8
BB - - - - - - 0.6 0.6 0.6 0.6
B and below - - - - - - 1.6 0.1 1.6 0.1
Total by rating 576.4 558.0 384.4 383.6 26.2 22.9 246.8 236.8 1,233.8 1,201.3
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
1 576.4 558.0 384.4 383.6 26.2 22.9 234.1 226.3 1,221.1 1,190.8
2 - - - - - - 10.5 9.8 10.5 9.8
3 - - - - - - 0.6 0.6 0.6 0.6
4 - - - - - - - - - -
5 - - - - - - - - - -
6 - - - - - - 1.6 0.1 1.6 0.1
Total by rating 576.4 558.0 384.4 383.6 26.2 22.9 246.8 236.8 1,233.8 1,201.3
* Subprime asset-backed securities are excluded from Other Asset-Backed Securities and included in Non-Agency RMBS under this presentation.
** Excludes consolidated CLO’s
Voya Financial Page 58 of 69
Mortgage Loans on Real Estate
(in millions USD)
Mortgage Loans on Real Estate by Region and Property
Type
Balances as of
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
U.S. Region Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total
Pacific 2,369.2 25.6% 2,281.8 24.5% 2,054.5 22.7% 2,090.2 23.3% 2,025.5 22.7%
South Atlantic 1,964.6 21.2% 1,936.0 20.8% 1,851.4 20.5% 1,706.6 19.1% 1,725.9 19.3%
Middle Atlantic 1,113.2 12.0% 1,112.0 11.9% 1,107.2 12.3% 1,142.8 12.8% 1,000.5 11.2%
East North Central 1,055.6 11.4% 1,037.5 11.1% 962.7 10.7% 1,006.7 11.3% 1,020.1 11.4%
West South Central 1,112.7 12.0% 1,122.3 12.0% 1,232.9 13.7% 1,246.3 14.0% 1,301.6 14.5%
Mountain 771.7 8.3% 790.4 8.5% 749.7 8.3% 711.1 8.0% 711.1 8.9%
West North Central 525.6 5.7% 517.2 5.6% 519.4 5.8% 502.7 5.6% 535.0 6.0%
New England 150.2 1.6% 318.1 3.4% 318.9 3.5% 322.1 3.6% 334.8 3.7%
East South Central 198.7 2.2% 200.7 2.2% 222.9 2.5% 204.7 2.3% 209.0 2.3%
Total Commercial Mortgage Loans (1) 9,261.5 100.0% 9,316.0 100.0% 9,019.6 100.0% 8,933.2 100.0% 8,953.3 100.0%
Property Type
Industrial 2,818.6 30.4% 2,848.0 30.6% 2,998.0 33.3% 3,183.5 35.7% 3,385.2 37.7%
Retail 2,951.0 31.9% 2,936.9 31.5% 2,795.9 31.0% 2,653.1 29.7% 2,609.9 29.2%
Office 1,089.0 11.7% 1,242.2 13.3% 1,243.3 13.8% 1,280.9 14.3% 1,243.3 13.9%
Apartments 1,348.7 14.6% 1,296.1 13.9% 1,048.6 11.6% 994.1 11.1% 935.8 10.5%
Hotel/Motel 382.1 4.1% 430.6 4.6% 364.1 4.0% 323.3 3.6% 324.1 3.6%
Other 366.3 4.0% 378.1 4.1% 382.3 4.2% 341.0 3.8% 353.9 4.0%
Mixed Use 305.8 3.3% 184.1 2.0% 187.4 2.1% 157.3 1.8% 101.1 1.1%
Total Commercial Mortgage Loans (1) 9,261.5 100.0% 9,316.0 100.0% 9,019.6 100.0% 8,933.2 100.0% 8,953.3 100.0%
Loan Size
Under $5 million 1,507.8 16.3% 1,516.5 16.3% 1,546.5 17.1% 1,607.7 18.0% 1,662.9 18.6%
$5 million but less than $10 million 1,549.4 16.7% 1,582.2 17.0% 1,548.9 17.2% 1,601.5 17.9% 1,694.8 18.9%
$10 million but less than $20 million 1,936.7 20.9% 1,899.5 20.4% 1,746.6 19.4% 1,725.0 19.3% 1,639.0 18.3%
$20 million but less than $30 million 1,097.7 11.9% 1,077.7 11.6% 1,045.0 11.6% 1,085.7 12.2% 966.1 10.8%
$30 million and over 3,169.9 34.2% 3,240.1 34.7% 3,132.6 34.7% 2,913.3 32.6% 2,990.5 33.4%
Total Commercial Mortgage Loans (1) 9,261.5 100.0% 9,316.0 100.0% 9,019.6 100.0% 8,933.2 100.0% 8,953.3 100.0%
Other Stats as ratios
LTV - Origination 59.2% 59.0% 58.8% 58.5% 58.1%
LTV - Current 55.8% 55.5% 56.1% 55.5% 55.3%
Debt Service Coverage 2.0 2.0 1.9 1.9 1.9
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
Allowance for loan losses 3.4 3.8 4.0 4.1 3.9
(1) Total Commercial Mortgage Loans shown do not include allowance for mortgage loan credit losses
Voya Financial Page 59 of 69
U.S. and Foreign Corporate Securities
(in millions USD)
Summary of Corporate Securities by
Industry Category
Balances as of
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
Fair Value % of Total Fair Value % of Total Fair Value % of Total Fair Value % of Total Fair Value % of Total
Type Industry
Communications 4,001.1 9.8% 3,835.1 9.8% 3,849.3 9.9% 3,893.5 10.2% 4,056.8 10.4%
Financial 6,641.5 16.3% 6,177.7 15.8% 5,950.3 15.2% 5,629.2 14.7% 5,826.4 15.0%
Industrial and other companies 22,240.0 54.8% 21,556.7 55.1% 21,770.6 55.8% 21,014.9 55.0% 21,203.8 54.4%
Public Utilities 6,690.3 16.5% 6,472.2 16.6% 6,439.4 16.5% 6,641.3 17.4% 6,813.6 17.5%
Transportation 1,068.6 2.6% 1,036.1 2.7% 1,021.7 2.6% 1,037.6 2.7% 1,044.4 2.7%
Sub-total 40,641.5 100.0% 39,077.8 100.0% 39,031.3 100.0% 38,216.5 100.0% 38,945.0 100.0%
Communications 340.0 2.4% 400.7 2.9% 405.2 3.0% 426.2 3.2% 491.2 3.6%
Financial 982.2 6.8% 957.0 7.0% 948.2 7.0% 918.6 6.8% 917.0 6.7%
Industrial and other companies 9,390.9 65.3% 8,706.4 63.6% 8,741.8 64.7% 8,660.6 64.0% 8,511.4 61.7%
Private Utilities 3,182.8 22.2% 3,156.2 23.0% 2,926.5 21.7% 3,006.5 22.3% 3,302.1 24.0%
Transportation 469.5 3.3% 485.6 3.5% 489.7 3.6% 494.6 3.7% 547.1 4.0%
Sub-total 14,365.4 100.0% 13,705.9 100.0% 13,511.4 100.0% 13,506.5 100.0% 13,768.8 100.0%
Communications 4,341.1 7.9% 4,235.8 8.0% 4,254.5 8.1% 4,319.7 8.4% 4,548.0 8.6%
Financial 7,623.7 13.9% 7,134.7 13.5% 6,898.5 13.1% 6,547.8 12.7% 6,743.4 12.8%
Industrial and other companies 31,630.9 57.5% 30,263.1 57.4% 30,512.4 58.1% 29,675.5 57.3% 29,715.2 56.4%
Total Utilities 9,873.1 17.9% 9,628.4 18.2% 9,365.9 17.8% 9,647.8 18.6% 10,115.7 19.2%
Transportation 1,538.1 2.8% 1,521.7 2.9% 1,511.4 2.9% 1,532.2 3.0% 1,591.5 3.0%
Total 55,006.9 100.0% 52,783.7 100.0% 52,542.7 100.0% 51,723.0 100.0% 52,713.8 100.0%
Voya Financial Page 60 of 69
Exposure to European Debt-Fixed Maturities and Equity Securities
(in millions USD)
Exposure to Select European Countries Sovereign Debt Corporate - Financial Corporate - Non-Financial Total Total
As of March 31, 2014 Fair Value % of Total Fair Value % of Total Fair Value % of Total Fair Value % of Total Amortized Cost % of Total
Ireland - 0.0% - 0.0% 312.7 4.1% 312.7 3.5% 294.5 3.6%
Italy - 0.0% - 0.0% 277.1 3.6% 277.1 3.1% 253.6 3.1%
Portugal - 0.0% - 0.0% 10.4 0.1% 10.4 0.1% 7.8 0.1%
Spain - 0.0% - 0.0% 248.2 3.2% 248.2 2.8% 230.3 2.8%
Total Peripheral Euro-Zone - 0.0% - 0.0% 848.4 11.0% 848.4 9.5% 786.2 9.6%
Austria - 0.0% - 0.0% 15.7 0.2% 15.7 0.2% 15.0 0.2%
Belgium 37.0 14.3% - 0.0% 343.4 4.5% 380.4 4.3% 327.6 4.0%
Bulgaria 5.7 2.2% - 0.0% - 0.0% 5.7 0.1% 5.6 0.1%
Croatia 28.0 10.8% - 0.0% - 0.0% 28.0 0.3% 25.6 0.3%
Czech Republic - 0.0% - 0.0% 10.1 0.1% 10.1 0.1% 10.1 0.1%
Denmark - 0.0% 10.5 1.2% 123.1 1.6% 133.6 1.5% 123.7 1.5%
Finland - 0.0% - 0.0% 18.7 0.2% 18.7 0.2% 17.0 0.2%
France - 0.0% 133.9 14.7% 465.3 6.1% 599.2 6.8% 562.3 6.8%
Germany - 0.0% 52.3 5.8% 686.9 9.0% 739.2 8.4% 698.1 8.5%
Hungary 6.1 2.4% - 0.0% - 0.0% 6.1 0.1% 5.9 0.1%
Iceland - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
Kazakhstan 42.7 16.5% 1.3 0.1% 20.4 0.3% 64.4 0.7% 60.6 0.7%
Latvia 4.9 1.9% - 0.0% - 0.0% 4.9 0.1% 4.6 0.1%
Lithuania 33.6 13.0% - 0.0% - 0.0% 33.6 0.4% 30.5 0.4%
Luxembourg - 0.0% - 0.0% 24.6 0.3% 24.6 0.3% 23.4 0.3%
Netherlands - 0.0% 182.2 20.1% 1,084.1 14.3% 1,266.3 14.3% 1,171.8 14.1%
Norway - 0.0% 0.7 0.1% 284.2 3.7% 284.9 3.2% 278.9 3.4%
Russian Federation 73.7 28.3% 5.0 0.6% 91.5 1.2% 170.2 1.9% 165.1 2.0%
Slovakia 5.3 2.0% - 0.0% - 0.0% 5.3 0.1% 5.0 0.1%
Slovenia - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
Sweden - 0.0% 53.9 5.9% 124.1 1.6% 178.0 2.0% 165.0 2.0%
Switzerland - 0.0% 150.6 16.6% 619.6 8.1% 770.2 8.7% 714.4 8.6%
Turkey 22.2 8.6% - 0.0% 41.9 0.5% 64.1 0.7% 65.4 0.8%
United Kingdom - 0.0% 318.0 34.9% 2,857.8 37.3% 3,175.8 36.1% 2,988.0 36.1%
Total Non-Peripheral Europe 259.2 100.0% 908.4 100.0% 6,811.4 89.0% 7,979.0 90.5% 7,463.6 90.4%
Total Europe 259.2 100.0% 908.4 100.0% 7,659.8 100.0% 8,827.4 100.0% 8,249.8 100.0%
Additional Information
Voya Financial Page 62 of 69
Adjustments to Operating Earnings by Segment
(in millions USD) Three Months Ended Year-to-Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
DAC/VOBA and other intangibles unlocking (1)
Retirement (11.3) 4.0 40.0 (1.4) 3.0 (11.3) 3.0
Annuities 3.2 26.8 39.6 9.9 7.0 3.2 7.0
Total Retirement Solutions (8.1) 30.8 79.6 8.5 10.0 (8.1) 10.0
Investment Management — —— — — — -
Individual Life (7.1) (7.8) 20.2 (4.9) (2.7) (7.1) (2.7)
Employee Benefits (4.6) (0.5) — — — (4.6) -
Total Insurance Solutions (11.7) (8.3) 20.2 (4.9) (2.7) (11.7) (2.7)
Ongoing Business (19.8) 22.5 99.8 3.6 7.3 (19.8) 7.3
Corporate — —— — — — -
Total Closed Blocks — —— — — — -
Total DAC/VOBA and other intangibles unlocking (19.8) 22.5 99.8 3.6 7.3 (19.8) 7.3
Additional adjustments (2)
Retirement — 0.2 12.7 — — — -
Annuities — 0.8 12.7 — — — -
Total Retirement Solutions — 1.0 25.4 — — — -
Investment Management — 1.7 11.5 — — — -
Individual Life — 3.1 36.6 — — — -
Employee Benefits — 0.3 4.0 — — — -
Total Insurance Solutions — 3.4 40.6 — — — -
Ongoing Business — 6.1 77.5 — — — -
Corporate (48.8) (43.8) (47.6) (43.2) (41.9) (48.8) (41.9)
Total Closed Blocks — (0.4) 0.6 — — — -
Total non-recurring items and interest expense (48.8) (38.1) 30.5 (43.2) (41.9) (48.8) (41.9)
Total adjustments to operating earnings
Retirement (11.3) 4.2 52.7 (1.4) 3.0 (11.3) 3.0
Annuities 3.2 27.6 52.3 9.9 7.0 3.2 7.0
Total Retirement Solutions (8.1) 31.8 105.0 8.5 10.0 (8.1) 10.0
Investment Management — 1.7 11.5 — — — -
Individual Life (7.1) (4.7) 56.8 (4.9) (2.7) (7.1) (2.7)
Employee Benefits (4.6) (0.2) 4.0 — — (4.6) -
Total Insurance Solutions (11.7) (4.9) 60.8 (4.9) (2.7) (11.7) (2.7)
Ongoing Business (19.8) 28.6 177.3 3.6 7.3 (19.8) 7.3
Corporate (48.8) (43.8) (47.6) (43.2) (41.9) (48.8) (41.9)
Total Closed Blocks — (0.4) 0.6 — — — -
Total adjustments to operating earnings (68.6) (15.6) 130.3 (39.6) (34.6) (68.6) (34.6)
(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
Voya Financial Page 63 of 69
Calculation and Reconciliation of ROE and ROC
Three Months Ended Twelve Months Ended (2)
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 12/31/13
(in millions USD, unless otherwise indicated)
GAAP Return on Equity (Quarter to Date)
Net income (loss) available to Voya Financial, Inc.‘s common shareholders 258.1 548.1 346.6 (82.2) (212.0) 1,070.6 600.5
Voya Financial, Inc. shareholders’ equity: end of period 14,002 13,272 12,770 12,472 13,391 14,002 13,272
Voya Financial, Inc. shareholders’ equity: average for period 13,637 13,021 12,621 12,931 13,633 13,053 13,574
GAAP Return on Equity 7.6% 16.8% 11.0% -2.5% -6.2% 8.2% 4.4%
Ongoing Business Adjusted Operating Return on Capital and Adjusted Operating Return on Equity
Ongoing Business adjusted operating earnings before income taxes 287.3 323.6 306.9 303.2 278.1 1,221.0 1,211.8
Income taxes on adjusted operating earnings (based on an assumed tax rate of 35%) (100.6) (113.3) (107.4) (106.1) (97.3) (427.4) (424.2)
Ongoing Business adjusted operating earnings after income taxes 186.7 210.3 199.5 197.1 180.8 793.6 787.6
Interest expense after-tax (1) (19.6) (19.9) (19.9) (20.3) (20.2) (79.0) (79.9)
Ongoing Business adjusted operating earnings after income taxes and interest expense 167.1 190.4 179.6 176.8 160.6 714.6 707.7
End of period capital for Ongoing Business 9,123 9,216 9,419 9,190 9,012 9,123 9,216
Average capital for Ongoing Business 9,170 9,318 9,305 9,101 9,035 9,224 9,137
Average debt (based on 25% debt-to-capital ratio) (2,293) (2,329) (2,326) (2,275) (2,259) (2,306) (2,284)
Average equity for Ongoing Business 6,877 6,988 6,978 6,826 6,776 6,918 6,853
Adjusted Operating Return on Capital for Ongoing Business 8.2% 9.0% 8.6% 8.7% 8.0% 8.6% 8.6%
Adjusted Operating Return on Equity for Ongoing Business (1) 9.7% 10.9% 10.3% 10.4% 9.5% 10.3% 10.3%
(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.
(2) Effective with the twelve months ending March 31,2014, average capital and equity are calculated by taking the average of the
quarterly capital and equity averages for the trailing four quarters, whereas in previous periods, average capital and equity were
calculated by two point average (Beginning of Year and End of Current Period)
Voya Financial Page 64 of 69
Operating Revenues by Segment
Three Months Ended Year-to-Date
(in millions USD) 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Retirement 598.5 612.4 606.9 596.9 583.2 598.5 583.2
Annuities 354.4 313.9 319.1 304.0 307.6 354.4 307.6
Total Retirement Solutions 952.9 926.3 926.0 900.9 890.8 952.9 890.8
Investment Management 160.5 167.1 160.1 148.6 131.9 160.5 131.9
Individual Life 692.2 692.9 717.1 694.8 687.1 692.2 687.1
Employee Benefits 338.9 316.5 316.2 311.7 318.1 338.9 318.1
Total Insurance Solutions 1,031.1 1,009.4 1,033.3 1,006.5 1,005.2 1,031.1 1,005.2
Ongoing Business 2,144.5 2,102.8 2,119.4 2,056.0 2,027.9 2,144.5 2,027.9
Corporate 25.3 33.6 28.8 7.9 17.1 25.3 17.1
Total Closed Blocks 25.6 27.0 30.7 33.6 45.5 25.6 45.5
Total operating revenues 2,195.4 2,163.4 2,178.9 2,097.5 2,090.5 2,195.4 2,090.5
Adjustments:
Closed Block Variable Annuity 284.6 (155.9) (66.1) (60.3) (444.0) 284.6 (444.0)
Net realized investment gains (losses) and
related charges and adjustments 49.6 129.1 39.8 (41.9) 30.4 49.6 30.4
Gain (loss) on change in fair value of derivatives
related to guaranteed benefits (23.9) (21.8) 35.1 70.1 20.6 (23.9) 20.6
Revenues related to business exited through
reinsurance or divestment 19.0 (5.4) (2.9) (55.8) (12.1) 19.0 (12.1)
Revenues (loss) attributable to noncontrolling interests 60.8 157.1 152.9 60.9 40.3 60.8 40.3
Other adjustments to operating revenues* 85.4 97.4 97.6 70.1 92.9 85.4 92.9
Total revenue 2,670.9 2,364.0 2,435.3 2,140.6 1,818.6 2,670.9 1,818.6
* 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.
Voya Financial Page 65 of 69
Ongoing Business Sources of Earnings Reconciliation
(in millions USD) Three Months Ended Year-to-Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Investment spread and other investment income:
Net investment income and net realized gains (losses)
Retirement 388.5 397.4 394.5 388.8 388.9 388.5 388.9
Annuities 270.6 283.4 295.9 283.5 287.1 270.6 287.1
Investment Management 7.3 11.7 16.4 6.1 2.8 7.3 2.8
Individual Life 219.8 224.5 258.7 215.4 216.9 219.8 216.9
Employee Benefits 26.7 29.2 32.1 27.9 28.4 26.7 28.4
Total net investment income and net realized gains (losses) 912.9 946.2 997.6 921.7 924.1 912.9 924.1
Total Ongoing Business 912.9 946.2 997.6 921.7 924.1 912.9 924.1
Adjustments:
Interest credited (541.9) (553.7) (553.8) (551.3) (552.2) (541.9) (552.2)
Other (9.1) (7.8) (6.4) (9.4) (8.2) (9.1) (8.2)
Total adjustments (551.0) (561.5) (560.2) (560.7) (560.4) (551.0) (560.4)
Ongoing investment spread and other investment income 361.9 384.7 437.4 361.0 363.7 361.9 363.7
Fee based margin:
Fee income
Retirement 191.1 196.1 191.0 189.0 183.8 191.1 183.8
Annuities 13.2 12.2 11.8 11.2 9.9 13.2 9.9
Investment Management 145.8 141.4 135.4 132.3 121.7 145.8 121.7
Individual Life 283.6 278.5 278.4 280.0 276.8 283.6 276.8
Employee Benefits 15.6 15.9 15.5 15.8 15.8 15.6 15.8
Total Fee Income 649.3 644.1 632.1 628.3 608.0 649.3 608.0
Other revenue
Retirement 18.2 18.2 20.7 15.3 10.0 18.2 10.0
Annuities 4.5 3.9 3.9 2.6 2.8 4.5 2.8
Investment Management 7.4 14.0 8.3 10.2 7.4 7.4 7.4
Individual Life 5.1 4.6 5.3 7.3 7.6 5.1 7.6
Employee Benefits 0.3 (1.0) (1.0) (1.0) (1.0) 0.3 (1.0)
Total other revenue 35.5 39.7 37.2 34.4 26.8 35.5 26.8
Total Ongoing Business 684.8 683.8 669.3 662.7 634.8 684.8 634.8
Adjustments:
Surrender fees and MVA charges (7.8) (6.5) (10.6) (11.3) (1.5) (7.8) (1.5)
Insurance Solutions FAS 97 fees and unearned revenue reserve amortization/unlocking (291.7) (288.9) (288.3) (288.7) (285.6) (291.7) (285.6)
Other (4.1) 0.3 (0.7) 1.5 (4.1) (4.1) (4.1)
Total adjustments (303.6) (295.1) (299.6) (298.5) (291.2) (303.6) (291.2)
Ongoing fee based margin 381.2 388.7 369.7 364.2 343.6 381.2 343.6
Voya Financial Page 66 of 69
Ongoing Business Sources of Earnings Reconciliation
(in millions USD) Three Months Ended Year-to-Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Net underwriting gain (loss) and other revenue:
Premiums
Retirement 0.7 0.7 0.7 3.8 0.5 0.7 0.5
Annuities 66.1 14.4 7.5 6.7 7.8 66.1 7.8
Investment Management - - - - - - -
Individual Life 183.7 185.3 174.7 192.1 185.8 183.7 185.8
Employee Benefits 296.3 272.4 269.6 269.0 274.9 296.3 274.9
Total premiums 546.8 472.8 452.5 471.6 469.0 546.8 469.0
Interest credited and other policyholder benefits
Retirement (210.7) (218.2) (213.5) (212.1) (204.6) (210.7) (204.6)
Annuities (229.8) (180.4) (182.2) (183.9) (184.4) (229.8) (184.4)
Investment Management - - - - - - -
Individual Life (527.8) (518.8) (468.7) (512.4) (501.6) (527.8) (501.6)
Employee Benefits (244.5) (223.9) (223.7) (213.2) (242.6) (244.5) (242.6)
Total interest credited and other policyholder benefits (1,212.8) (1,141.3) (1,088.1) (1,121.6) (1,133.2) (1,212.8) (1,133.2)
Total Ongoing Business (666.0) (668.5) (635.6) (650.0) (664.2) (666.0) (664.2)
Adjustments:
Interest credited 541.9 553.7 553.8 551.3 552.2 541.9 552.2
Surrender fees and MVA charges 7.8 6.5 10.6 11.3 1.5 7.8 1.5
Insurance Solutions FAS 97 fees and unearned revenue reserve amortization/unlocking 288.0 289.6 297.8 287.2 284.9 288.0 284.9
Sales inducements amortization and unlocking 8.3 6.4 6.1 12.0 10.1 8.3 10.1
FAS 113 and SOP 03-1 amortization and unlocking 6.7 6.6 (23.1) 7.2 6.4 6.7 6.4
Other (13.1) (13.6) (10.7) (14.9) (11.0) (13.1) (11.0)
Total adjustments 839.6 849.2 834.5 854.1 844.1 839.6 844.1
Ongoing net underwriting gain (loss) and other revenue 173.6 180.7 198.9 204.1 179.9 173.6 179.9
Voya Financial Page 67 of 69
Ongoing Business Sources of Earnings Reconciliation
(in millions USD) Three Months Ended Year-to-Date
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 3/31/14 3/31/13
Administrative expenses and trail commissions:
Operating and interest expense
Retirement (226.0) (220.1) (205.8) (210.0) (204.0) (226.0) (204.0)
Annuities (35.5) (32.1) (31.7) (32.2) (31.0) (35.5) (31.0)
Investment Management (110.7) (114.2) (106.1) (107.5) (101.8) (110.7) (101.8)
Individual Life (95.7) (88.9) (83.9) (94.8) (91.8) (95.7) (91.8)
Employee Benefits (68.4) (57.1) (58.5) (60.5) (60.0) (68.4) (60.0)
Total operating and interest expense (536.3) (512.4) (486.0) (505.0) (488.6) (536.3) (488.6)
Total Ongoing Business (536.3) (512.4) (486.0) (505.0) (488.6) (536.3) (488.6)
Adjustments:
Other 26.2 21.9 17.9 22.9 22.2 26.2 22.2
Total adjustments 26.2 21.9 17.9 22.9 22.2 26.2 22.2
Ongoing administrative expenses and trail commissions (510.1) (490.5) (468.1) (482.1) (466.4) (510.1) (466.4)
DAC/VOBA and other intangibles amortization and unlocking:
Net amortization of DAC/VOBA
Retirement (46.9) (35.5) (0.3) (42.7) (36.8) (46.9) (36.8)
Annuities (34.3) (18.2) (8.4) (28.4) (37.9) (34.3) (37.9)
Investment Management - - - - - - -
Individual Life (37.6) (38.2) (47.5) (47.6) (42.9) (37.6) (42.9)
Employee Benefits (9.1) (5.0) (4.9) (3.9) (3.1) (9.1) (3.1)
Total net amortization of DAC/VOBA (127.9) (96.9) (61.1) (122.6) (120.7) (127.9) (120.7)
Total Ongoing Business (127.9) (96.9) (61.1) (122.6) (120.7) (127.9) (120.7)
Adjustments
Sales inducements amortization and unlocking (8.3) (6.4) (6.1) (12.0) (10.1) (8.3) (10.1)
FAS 113 and SOP 03-1 amortization and unlocking (6.7) (6.6) 23.1 (7.2) (6.4) (6.7) (6.4)
Unearned revenue reserve amortization and unlocking 3.7 (0.7) (9.5) 1.5 0.7 3.7 0.7
Other 0.1 (0.8) (0.1) (0.1) 1.1 0.1 1.1
Total adjustments (11.2) (14.5) 7.4 (17.8) (14.7) (11.2) (14.7)
Ongoing DAC/VOBA and other intangibles amortization and unlocking (139.1) (111.4) (53.7) (140.4) (135.4) (139.1) (135.4)
Voya Financial Page 68 of 69
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
3/31/14 12/31/13 9/30/13 6/30/13 3/31/13
Fixed Maturity Securities - Hannover Life Re Modco Reinsurance
Security Sector
U.S. Government agencies and authorities 86.1 73.9 52.1 87.1 22.5
U.S. Corporate - Public 818.8 838.8 861.2 896.6 782.1
Foreign Government / Agency - - 3.4 3.4 3.5
Foreign Corporate - Public 135.6 132.6 137.8 138.5 144.0
State, municipalities and political subdivisions 107.1 102.6 104.1 108.2 118.3
Residential mortgaged-backed securities:
Agency 81.2 90.2 97.2 107.9 124.4
Non - Agency 0.9 1.1 1.2 1.5 1.8
Total Residential mortgage-backed securities 82.1 91.3 98.4 109.4 126.2
Commercial mortgage-backed securities 88.2 91.4 94.3 100.3 108.0
Other asset-backed securities 17.8 18.1 18.5 19.0 22.2
Total fixed maturities, including securities pledged 1,335.7 1,348.7 1,369.8 1,462.5 1,326.8
Voya Financial Page 69 of 69
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
Voya Financial, 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:
Voya Financial Christopher Breslin Darin Arita
230 Park Avenue 212-309-8941 212-309-8999
New York, New York 10169 Christopher.Breslin@voya.com IR@voya.com
NYSE Ticker: Web Site:
VOYA investors.voya.com
