Exhibit 99.2
Exhibit 99.2
Quarterly Investor Supplement September 30, 2014 This report should be read in conjunction Voya Financial, Inc.‘s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 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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Voya Financial
Table of Contents
Page
Consolidated
Explanatory Note on Non-GAAP Financial Information 3-4
Organizational Chart 5
Key Metrics 6
Adjusted Operating Return on Capital and Return on Equity 7
Adjusted Operating Earnings Before Interest, After Income Taxes 8
Operating Revenues and Operating Earnings by Segment 9
Adjusted Operating Earnings by Segment 10
Consolidated Balance Sheets 11
Consolidated Statements of Operations 12
Ongoing Business Sources of Operating Earnings 13
Consolidated Earnings Before Income Taxes 14
Operating Earnings by Segment 15-16
DAC/VOBA Segment Trends 17
Consolidated Capital Structure 18
Consolidated Assets Under Management/Assets Under Administration 19
Retirement
Sources of Operating Earnings 21
Operating Earnings 22
Assets Under Management/Assets Under Administration 23
Assets Under Management Rollforward 24
Annuities
Sources of Operating Earnings 26
Operating Earnings 27
Assets Under Management 28
Assets Under Management Rollforward 29
Investment Management
Sources of Operating Earnings 31
Operating Earnings 32
Key Metrics 33
Account Value Rollforward by Source 34
Account Value by Asset Type 35
Page
Individual Life
Sources of Operating Earnings 37
Operating Earnings 38
Key Metrics 39
Employee Benefits
Sources of Operating Earnings 41
Operating Earnings 42
Key Metrics 43
Corporate
Operating Earnings 45
Closed Blocks
ISP and Other Operating Earnings 47
Closed Block Variable Annuity Income (Loss) Before Income Taxes 48
Closed Block Variable Annuity Death and Living Benefits 49
Assets Under Management Rollforward 50
Investment Information
Portfolio Composition 52
Portfolio Results 53
Alternative Investment Income 54
Unrealized Gains (Losses) 55
Asset Backed Securities 56
RMBS Securities Summary 57
CMBS and Other Asset-Backed Securities Summary 58
Mortgage Loans on Real Estate 59
US and Foreign Corporate Securities 60
Exposure to European Debt—Fixed Maturities and Equity Securities 61
Additional Information
Adjustments to Operating Earnings by Segment 63
Calculation and Reconciliation of ROE and ROC 64
Operating Revenues by Segment 65
Ongoing Business Sources of Earnings Reconciliation 66-68
Fixed Maturity Securities—Businesses Exited Through Reinsurance 69
Financial Ratings 70
Voya Financial Explanatory Note on Non-GAAP Financial Information Page 3 of 70
Operating earnings before income taxes is a financial measure we use to evaluate segment performance. Operating earnings before income taxes is a non-GAAP financial measure and does not replace net income (loss) as the GAAP measure of our results of operations. Each segment’s operating earnings before income taxes is calculated by adjusting income (loss) before income taxes for the following items:
Net investment gains (losses), net of related amortization of DAC, VOBA, sales inducements and unearned revenue. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the fair value option (“FVO”) unrelated to the implied loan-backed security income recognition for certain mortgage-backed obligations and changes in the fair value of derivative instruments, excluding realized gains (losses) associated with swap settlements and accrued interest;
Net guaranteed benefit hedging gains (losses), which include changes in the fair value of derivatives related to guaranteed benefits, net of related reserve increases (decreases) and net of related amortization of DAC, VOBA and sales inducements, less the estimated cost of these benefits. The estimated cost, which is reflected in operating results, reflects the expected cost of these benefits if markets perform in line with our long-term expectations and includes the cost of hedging. Other derivative and reserve changes related to guaranteed benefits are excluded from operating results, including the impacts related to changes in our nonperformance spread;
Income (loss) related to businesses exited through reinsurance or divestment;
Income (loss) attributable to noncontrolling interest;
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 comparability;
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 indicators of how effectively we use capital resources allocated to our Ongoing Business. The most directly comparable GAAP measure to adjusted operating ROE and adjusted operating ROC is return on equity. For a reconciliation of these non-GAAP measures to return on equity, see the 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 share excluding AOCI and shareholders’ equity excluding AOCI. Included in AOCI are investment portfolio unrealized gains or losses. In the ordinary course of business we do not plan to sell most investments for the sole purpose of realizing gains or losses, and book value per share excluding AOCI and shareholders’ equity excluding AOCI provide a measure consistent with that view.
Voya Financial Explanatory Note on Non-GAAP Financial Information Page 4 of 70
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. 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 interest; 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. Financial information, unless otherwise noted, is rounded to millions, therefore may not sum to its corresponding total.
Voya Financial Organizational Chart Page 5 of 70
Retirement Solutions
Retirement
Annuities
Investment Management
Insurance Solutions
Individual Life
Employee Benefits
Closed Blocks
Corporate
• | | Fixed indexed annuities |
• | | Annuity and custodial products |
• | | Retirement, Retail, Institutional funds |
• | | Multi-asset strategies and solutions |
• | | Variable universal life |
• | | Institutional Spread Products |
Ongoing Business
Voya Financial Page 6 of 70 Key Metrics
Three Months Ended Year-to-Date
9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
(in millions USD, unless otherwise indicated)
Adjusted operating earnings before income taxes - Ongoing Business 352.0 345.8 287.3 323.6 306.9 985.1 888.2
Operating earnings before income taxes - Ongoing Business 330.9 356.1 267.5 352.2 484.2 954.5 1,076.4
Operating earnings before income taxes - Total Consolidated 294.3 328.3 231.1 304.9 435.0 853.7 963.7
Net income (loss) 517.4 412.9 271.6 653.7 447.7 1,201.9 136.9
Net income (loss) attributable to noncontrolling interest 116.6 166.6 13.5 105.6 101.1 296.7 84.5
Net income (loss) available to Voya Financial, Inc.‘s common shareholders 400.8 246.3 258.1 548.1 346.6 905.2 52.4
Total Voya Financial, Inc. Shareholders’ Equity - Excluding AOCI 11,764.9 11,665.4 11,424.0 11,423.1 10,820.0 11,764.9 10,820.0
Return on Equity
Ongoing Business adjusted operating return on equity - TTM (1) (2) 11.2% 10.7% 10.3% 10.3% N/A 11.2% N/A
Ongoing Business adjusted operating return on equity - Annualized (2) 12.3% 12.0% 9.7% 10.9% 10.3% 11.4% 9.9%
Debt to Capital (Excluding AOCI) 23.0% 23.2% 23.5% 23.5% 24.5% 23.0% 24.5%
Per Share
Total Consolidated Operating earnings per share (Diluted) 0.75 0.83 0.57 0.75 1.08 2.15 2.53
Net income (loss) available to Voya Financial, Inc.‘s common shareholders per common
share:
Basic 1.59 0.97 0.99 2.10 1.33 3.54 0.21
Diluted 1.58 0.96 0.98 2.08 1.32 3.51 0.21
Book value per share (Excluding AOCI) 47.75 45.82 44.85 43.65 41.49 47.75 41.49
Shares
Weighted-average common shares outstanding (in millions)
Basic 252.6 254.5 261.1 261.1 260.8 256.0 247.1
Diluted 254.4 256.2 263.5 263.3 262.3 258.1 247.8
Ending shares outstanding (in millions) 246.4 254.6 254.7 261.7 260.8 246.4 260.8
Returned to Shareholders ($)
Shares repurchased 320.0 30.5 258.9 - 609.4 -
Common dividends 2.5 2.6 2.6 2.6 2.6 7.7 2.6
Total 322.5 33.1 261.5 2.6 2.6 617.1 2.6
(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.
Voya Financial Page 7 of 70 Adjusted Operating Return on Capital and Return on Equity
Twelve Months Ended September 30, 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) 3,843 1,694 314 2,904 360 9,115 3,474 2,691 15,280
Average Capital (2) 3,921 1,713 307 2,878 348 9,167 3,253 2,546 14,966
Adjusted operating earnings before interest and after
income taxes 349.0 146.5 139.4 131.1 84.6 850.6 - 21.0 871.6
Adjusted Operating Return on Capital (2) 8.9% 8.6% 45.4% 4.6% 24.3% 9.3% - N/M 5.8%
Adjusted Operating Return on Equity (2) (3) 11.2%
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.
Voya Financial Adjusted Operating Earnings Before Interest, After Income Taxes Page 8 of 70
Twelve Months Ended September 30, 2014
Retirement Solutions Investment Management Insurance Solutions Ongoing Business Closed Block Variable Annuity Corporate and Other Closed Blocks Consolidated
(in millions USD, unless otherwise indicated) Retirement Annuities Individual Life Employee Benefits
Operating earnings before income taxes 506.5 280.5 216.2 181.3 122.2 1,306.7 - (148.1) 1,158.6
Less:
Interest expense - - - - - - - (187.5) (187.5)
DAC/VOBA and other intangibles unlocking (1) (30.6) 54.3 - (23.5) (8.3) (8.1) - - (8.1)
Net gain (loss) from Lehman Recovery/LIHTC (2) 0.2 0.8 1.7 3.1 0.3 6.1 - 7.1 13.2
Adjusted operating earnings before interest 536.9 225.4 214.5 201.7 130.2 1,308.7 - 32.3 1,341.0
Income tax expense (3) 187.9 78.9 75.1 70.6 45.6 458.1 - 11.3 469.4
Adjusted operating earnings before interest and after income taxes 349.0 146.5 139.4 131.1 84.6 850.6 - 21.0 871.6
Year Ended December 31, 2013
Retirement Solutions Investment Management Insurance Solutions Ongoing Business Closed Block Variable Annuity Corporate and Other Closed Blocks Consolidated
(in millions USD, unless otherwise indicated) Retirement Annuities Individual Life Employee Benefits
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 (loss) 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 (loss) 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 (loss) from Lehman Recovery/LIHTC”.
(3) Based on an assumed effective tax rate of 35%.
Voya Financial Page 9 of 70 Operating Revenues and Operating Earnings by Segment
(in millions USD) Three Months Ended Year-to-Date
9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Operating Revenues
Retirement 605.7 592.9 598.5 612.4 606.9 1,797.1 1,787.0
Annuities 344.6 330.8 354.4 313.9 319.1 1,029.8 930.7
Total Retirement Solutions 950.3 923.7 952.9 926.3 926.0 2,826.9 2,717.7
Investment Management 168.3 163.2 160.5 167.1 160.1 492.0 440.6
Individual Life 679.1 699.9 692.2 692.9 717.1 2,071.2 2,099.0
Employee Benefits 345.9 342.5 338.9 316.5 316.2 1,027.3 946.0
Total Insurance Solutions 1,025.0 1,042.4 1,031.1 1,009.4 1,033.3 3,098.5 3,045.0
Ongoing Business 2,143.6 2,129.3 2,144.5 2,102.8 2,119.4 6,417.4 6,203.3
Corporate 22.9 23.6 25.3 33.6 28.8 71.8 53.8
Total Closed Blocks 25.4 24.0 25.6 27.0 30.7 75.0 109.8
Total operating revenues 2,191.9 2,176.9 2,195.4 2,163.4 2,178.9 6,564.2 6,366.9
Operating Earnings
Retirement 117.2 135.8 114.9 138.6 187.3 367.9 457.2
Annuities 78.3 64.2 54.8 83.2 96.8 197.3 210.6
Total Retirement Solutions 195.5 200.0 169.7 221.8 284.1 565.2 667.8
Investment Management 58.6 54.9 49.8 52.9 54.0 163.3 125.2
Individual Life 39.8 63.4 31.1 47.0 117.0 134.3 207.8
Employee Benefits 37.0 37.8 16.9 30.5 29.1 91.7 75.6
Total Insurance Solutions 76.8 101.2 48.0 77.5 146.1 226.0 283.4
Ongoing Business 330.9 356.1 267.5 352.2 484.2 954.5 1,076.4
Corporate(47.1)(38.3)(37.3)(44.0)(63.7)(122.7)(166.6)
Total Closed Blocks 10.5 10.5 0.9(3.3) 14.5 21.9 53.9
Total operating earnings before income taxes 294.3 328.3 231.1 304.9 435.0 853.7 963.7
Closed Block Variable Annuity 131.0(84.1) 20.2(226.4)(167.4) 67.1(982.9)
Net investment gains (losses) and related charges and adjustments 43.4 73.0 57.6 105.4 64.1 174.0 106.7
Net guaranteed benefit hedging gains (losses) and related charges and adjustments 33.4(20.3) 6.4(26.6) 10.5 19.5 46.0
Income (loss) related to businesses exited through reinsurance or divestment(31.9)(26.9)(10.5)(12.8)(13.1)(69.3)(46.9)
Income (loss) attributable to noncontrolling interests 116.6 166.6 13.5 105.6 101.1 296.7 84.5
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*(32.0)(17.6)(16.0)(27.7)(10.2)(65.6)(40.5)
Total non-operating 260.5 90.7 71.2 322.7(15.0) 422.4(833.2)
Income (loss) before income taxes 554.8 419.0 302.3 627.6 420.0 1,276.1 130.5
Less: Income tax expense (benefit) 37.4 6.1 30.7(26.1)(27.7) 74.2(6.4)
Net income (loss) 517.4 412.9 271.6 653.7 447.7 1,201.9 136.9
Net income (loss) attributable to noncontrolling interest 116.6 166.6 13.5 105.6 101.1 296.7 84.5
Net income (loss) available to Voya Financial, Inc.‘s common shareholders 400.8 246.3 258.1 548.1 346.6 905.2 52.4
* | | 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 10 of 70 Adjusted Operating Earnings by Segment
(in millions USD) Three Months Ended Year-to-Date
9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Operating Earnings
Retirement 117.2 135.8 114.9 138.6 187.3 367.9 457.2
Annuities 78.3 64.2 54.8 83.2 96.8 197.3 210.6
Total Retirement Solutions 195.5 200.0 169.7 221.8 284.1 565.2 667.8
Investment Management 58.6 54.9 49.8 52.9 54.0 163.3 125.2
Individual Life 39.8 63.4 31.1 47.0 117.0 134.3 207.8
Employee Benefits 37.0 37.8 16.9 30.5 29.1 91.7 75.6
Total Insurance Solutions 76.8 101.2 48.0 77.5 146.1 226.0 283.4
Ongoing Business 330.9 356.1 267.5 352.2 484.2 954.5 1,076.4
Corporate(47.1)(38.3)(37.3)(44.0)(63.7)(122.7)(166.6)
Total Closed Blocks 10.5 10.5 0.9(3.3) 14.5 21.9 53.9
Total operating earnings before income taxes 294.3 328.3 231.1 304.9 435.0 853.7 963.7
Adjustments to operating earnings
Retirement(30.4) 7.1(11.3) 4.2 52.7(34.6) 54.3
Annuities 17.8 6.5 3.2 27.6 52.3 27.5 69.2
Total Retirement Solutions(12.6) 13.6(8.1) 31.8 105.0(7.1) 123.5
Investment Management ——1.7 11.5—11.5
Individual Life(7.1)(1.5)(7.1)(4.7) 56.8(15.7) 49.2
Employee Benefits(1.4)(1.8)(4.6)(0.2) 4.0(7.8) 4.0
Total Insurance Solutions(8.5)(3.3)(11.7)(4.9) 60.8(23.5) 53.2
Ongoing Business(21.1) 10.3(19.8) 28.6 177.3(30.6) 188.2
Corporate(46.8)(41.0)(48.8)(43.8)(47.6)(136.5)(132.7)
Total Closed Blocks — -(0.4) 0.6—0.6
Total adjustments to operating earnings(67.9)(30.7)(68.6)(15.6) 130.3(167.1) 56.1
Adjusted Operating Earnings
Retirement 147.6 128.7 126.2 134.4 134.6 402.5 402.9
Annuities 60.5 57.7 51.6 55.6 44.5 169.8 141.4
Total Retirement Solutions 208.1 186.4 177.8 190.0 179.1 572.3 544.3
Investment Management 58.6 54.9 49.8 51.2 42.5 163.3 113.7
Individual Life 46.9 64.9 38.2 51.7 60.2 150.0 158.6
Employee Benefits 38.4 39.6 21.5 30.7 25.1 99.5 71.6
Total Insurance Solutions 85.3 104.5 59.7 82.4 85.3 249.5 230.2
Ongoing Business 352.0 345.8 287.3 323.6 306.9 985.1 888.2
Corporate(0.3) 2.7 11.5(0.2)(16.1) 13.8(33.9)
Total Closed Blocks 10.5 10.5 0.9(2.9) 13.9 21.9 53.3
Total adjusted operating earnings before interest and income taxes 362.2 359.0 299.7 320.5 304.7 1,020.8 907.6
Voya Financial Consolidated Balance Sheets Page 11 of 70
Balances as of
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13
Assets
Total investments 89,824.4 89,821.3 88,891.4 87,050.8 89,007.3
Cash and cash equivalents 1,908.5 3,142.0 2,499.8 2,840.8 1,716.6
Assets held in separate accounts 107,059.3 110,648.2 107,840.0 106,827.1 103,853.6
Reinsurance recoverable 6,752.5 6,637.1 6,785.8 6,702.2 6,755.6
Short term investments under securities loan agreement and
accrued investment income 1,520.7 1,509.7 1,494.2 1,450.0 1,395.6
Deferred policy acquisition costs, Value of business acquired 4,779.9 4,511.2 4,860.8 5,351.6 5,265.0
Goodwill and other intangible assets 296.1 303.2 312.5 323.7 323.4
Other assets (1) 1,319.7 1,384.7 1,274.7 1,477.6 1,416.6
Assets related to consolidated investment entities 10,842.7 10,120.6 9,551.5 8,999.4 7,924.5
Total Assets 224,303.8 228,078.0 223,510.7 221,023.2 217,658.2
Liabilities
Future policy benefits and contract owner account balances 84,139.1 84,424.5 84,256.1 84,006.7 84,887.9
Liabilities related to separate accounts 107,059.3 110,648.2 107,840.0 106,827.1 103,853.6
Funds held under reinsurance agreements 1,136.7 1,167.6 1,174.5 1,181.5 1,212.1
Payables under securities loan agreements, including collateral held 927.1 904.9 864.5 769.4 576.7
Long-term debt 3,515.5 3,515.2 3,515.0 3,514.7 3,514.5
Other liabilities (2) 2,874.2 3,217.4 2,999.6 3,144.9 3,598.9
Liabilities related to consolidated investment entities 7,507.7 6,936.9 6,493.0 6,064.9 5,150.0
Total Liabilities 207,159.6 210,814.7 207,142.7 205,509.2 202,793.7
Shareholders’ Equity
Common stock 2.6 2.6 2.6 2.6 2.6
Treasury stock (624.2) (304.2) (269.8) —
Additional paid-in capital 23,621.5 23,599.9 23,579.5 23,563.7 23,524.7
Retained earnings (deficit) (11,235.0) (11,632.9) (11,888.3) (12,143.2) (12,707.3)
Total Voya Financial, Inc. Shareholders’ Equity—Excluding AOCI 11,764.9 11,665.4 11,424.0 11,423.1 10,820.0
Accumulated other comprehensive income 2,820.2 3,152.7 2,577.5 1,849.1 1,950.0
Total Voya Financial, Inc. Shareholders’ Equity 14,585.1 14,818.1 14,001.5 13,272.2 12,770.0
Noncontrolling interest 2,559.1 2,445.2 2,366.5 2,241.8 2,094.5
Total Shareholders’ Equity 17,144.2 17,263.3 16,368.0 15,514.0 14,864.5
Total Liabilities and Shareholders’ Equity 224,303.8 228,078.0 223,510.7 221,023.2 217,658.2
(1) Includes Other assets, Sales inducements to contract holders, and Current/Deferred income taxes (2) Includes Other liabilities, Derivatives, Pension and other postretirement provisions, and Current/Deferred income taxes
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Voya Financial Consolidated Statements of Operations Page 12 of 70
Three Months Ended Year-to-Date
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Revenues
Net investment income 1,163.6 1,120.9 1,145.6 1,156.5 1,221.6 3,430.1 3,532.5
Fee income 908.9 897.3 931.8 943.9 920.8 2,738.0 2,722.4
Premiums 595.1 629.4 600.9 515.4 494.2 1,825.4 1,440.9
Net realized capital gains (losses) 181.0 (366.5) (190.6) (577.0) (517.1) (376.1) (1,957.8)
Income (loss) related to consolidated investment entities 241.5 306.7 77.7 213.5 196.2 625.9 335.2
Other revenues 101.0 110.3 105.5 111.7 119.6 316.8 321.3
Total revenues 3,191.1 2,698.1 2,670.9 2,364.0 2,435.3 8,560.1 6,394.5
Benefits and expenses
Interest credited and other benefits to contract owners/policyholders (1,732.9) (1,305.2) (1,358.1) (1,118.8) (1,087.7) (4,396.2) (3,379.0)
Operating expenses (767.3) (758.3) (789.5) (394.6) (762.8) (2,315.1) (2,292.1)
Net amortization of DAC/VOBA (30.6) (115.7) (126.1) (123.2) (64.6) (272.4) (319.6)
Interest expense (47.2) (47.5) (47.6) (48.2) (48.4) (142.3) (136.6)
Operating expenses related to consolidated investment entities (58.3) (52.4) (47.3) (51.6) (51.8) (158.0) (136.7)
Total benefits and expenses (2,636.3) (2,279.1) (2,368.6) (1,736.4) (2,015.3) (7,284.0) (6,264.0)
Income (loss) before income taxes 554.8 419.0 302.3 627.6 420.0 1,276.1 130.5
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Voya Financial Ongoing Business Sources of Operating Earnings Page 13 of 70
Three Months Ended Year-to-Date
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Sources of operating earnings before income
taxes:
Investment spread and other investment income 394.2 361.9 361.9 384.7 437.4 1,118.0 1,162.1
Fee based margin 389.8 385.3 381.2 388.7 369.7 1,156.3 1,077.5
Net underwriting gain (loss) and other revenue 181.5 219.4 173.6 180.7 198.9 574.5 582.9
Administrative expenses (404.1) (417.9) (436.4) (422.4) (404.3) (1,258.4) (1,220.7)
Trail commissions (73.9) (71.1) (73.7) (68.1) (63.8) (218.7) (195.9)
DAC/VOBA and other intangibles amortization,
excluding unlocking (135.5) (131.8) (119.3) (136.1) (178.2) (386.6) (464.9)
DAC/VOBA and other intangibles unlocking (21.1) 10.3 (19.8) 24.7 124.5 (30.6) 135.4
Operating earnings before income taxes 330.9 356.1 267.5 352.2 484.2 954.5 1,076.4
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Voya Financial Consolidated Earnings Before Income Taxes Page 14 of 70
Three Months Ended Year-to-Date
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Operating revenues
Net investment income and net realized gains (losses) 987.4 952.6 961.4 1,005.8 1,054.4 2,901.4 3,002.0
Fee income 651.2 654.4 649.3 644.1 632.1 1,954.9 1,868.4
Premiums 517.4 534.9 549.3 473.3 453.5 1,601.6 1,397.3
Other revenue 35.9 35.0 35.4 40.2 38.9 106.3 99.2
Total operating revenues 2,191.9 2,176.9 2,195.4 2,163.4 2,178.9 6,564.2 6,366.9
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (1,289.9) (1,154.2) (1,228.6) (1,166.3) (1,111.9) (3,672.7) (3,390.5)
Operating expenses (532.9) (534.0) (560.7) (547.6) (523.8) (1,627.6) (1,573.7)
Net amortization of DAC/VOBA (28.1) (113.3) (128.0) (96.8) (60.0) (269.4) (303.6)
Interest expense (46.7) (47.1) (47.0) (47.8) (48.2) (140.8) (135.4)
Total operating benefits and expenses (1,897.6) (1,848.6) (1,964.3) (1,858.5) (1,743.9) (5,710.5) (5,403.2)
Operating earnings before income taxes 294.3 328.3 231.1 304.9 435.0 853.7 963.7
Adjustments:
Closed Block Variable Annuity 131.0 (84.1) 20.2 (226.4) (167.4) 67.1 (982.9)
Net investment gains (losses) and related charges and adjustments 43.4 73.0 57.6 105.4 64.1 174.0 106.7
Net guaranteed benefit hedging gains (losses) and related charges and adjustments 33.4 (20.3) 6.4 (26.6) 10.5 19.5 46.0
Income (loss) related to businesses exited through reinsurance or divestment (31.9) (26.9) (10.5) (12.8) (13.1) (69.3) (47.0)
Income (loss) attributable to noncontrolling interests 116.6 166.6 13.5 105.6 101.1 296.7 84.5
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* (32.0) (17.6) (16.0) (27.7) (10.2) (65.6) (40.5)
Total non-operating 260.5 90.7 71.2 322.7 (15.0) 422.4 (833.2)
Income (loss) before income taxes 554.8 419.0 302.3 627.6 420.0 1,276.1 130.5
* | | 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.
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Voya Financial Operating Earnings by Segment Page 15 of 70
(in millions USD) Three Months Ended September 30, 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) 393.6 282.3 9.0 226.3 29.1 940.3 22.7 24.4 987.4
Fee income 193.5 15.0 149.5 269.3 23.9 651.2 — 651.2
Premiums 0.7 42.7—179.1 293.7 516.2—1.2 517.4
Other revenue 17.9 4.6 9.8 4.4 (0.8) 35.9 0.2 (0.2) 35.9
Total operating revenues 605.7 344.6 168.3 679.1 345.9 2,143.6 22.9 25.4 2,191.9
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (209.4) (204.1)—(632.8) (235.7) (1,282.0)—(7.9) (1,289.9)
Operating expenses (208.6) (34.8) (109.7) (88.7) (60.9) (502.7) (23.3) (6.9) (532.9)
Net amortization of DAC/VOBA (70.5) (27.4)—82.2 (12.3) (28.0)—(0.1) (28.1)
Interest expense — — — (46.7)—(46.7)
Total operating benefits and expenses (488.5) (266.3) (109.7) (639.3) (308.9) (1,812.7) (70.0) (14.9) (1,897.6)
Operating earnings before income taxes 117.2 78.3 58.6 39.8 37.0 330.9 (47.1) 10.5 294.3
Three Months Ended September 30, 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) 394.5 295.9 16.4 258.7 32.1 997.6 26.9 29.9 1,054.4
Fee income 191.0 11.8 135.4 278.4 15.5 632.1 — 632.1
Premiums 0.7 7.5—174.7 269.6 452.5—1.0 453.5
Other revenue 20.7 3.9 8.3 5.3 (1.0) 37.2 1.9 (0.2) 38.9
Total operating revenues 606.9 319.1 160.1 717.1 316.2 2,119.4 28.8 30.7 2,178.9
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (213.5) (182.2)—(468.7) (223.7) (1,088.1) (12.7) (11.1) (1,111.9)
Operating expenses (205.8) (31.7) (106.1) (83.9) (58.5) (486.0) (32.8) (5.0) (523.8)
Net amortization of DAC/VOBA (0.3) (8.4)—(47.5) (4.9) (61.1) 1.2 (0.1) (60.0)
Interest expense — — — (48.2)—(48.2)
Total operating benefits and expenses (419.6) (222.3) (106.1) (600.1) (287.1) (1,635.2) (92.5) (16.2) (1,743.9)
Operating earnings before income taxes 187.3 96.8 54.0 117.0 29.1 484.2 (63.7) 14.5 435.0
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Voya Financial Operating Earnings by Segment Page 16 of 70
(in millions USD) Nine Months Ended September 30, 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) 1,161.7 828.7 24.3 661.6 83.5 2,759.8 71.3 70.3 2,901.4
Fee income 577.5 42.4 442.4 838.4 54.2 1,954.9 — 1,954.9
Premiums 4.8 144.3—554.5 892.8 1,596.4—5.2 1,601.6
Other revenue 53.1 14.4 25.3 16.7 (3.2) 106.3 0.5 (0.5) 106.3
Total operating revenues 1,797.1 1,029.8 492.0 2,071.2 1,027.3 6,417.4 71.8 75.0 6,564.2
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (629.4) (631.3)—(1,659.9) (719.8) (3,640.4)—(32.3) (3,672.7)
Operating expenses (651.9) (106.9) (328.7) (275.7) (190.2) (1,553.4) (53.7) (20.5) (1,627.6)
Net amortization of DAC/VOBA (147.9) (94.3)—(1.3) (25.6) (269.1)—(0.3) (269.4)
Interest expense — — — (140.8)—(140.8)
Total operating benefits and expenses (1,429.2) (832.5) (328.7) (1,936.9) (935.6) (5,462.9) (194.5) (53.1) (5,710.5)
Operating earnings before income taxes 367.9 197.3 163.3 134.3 91.7 954.5 (122.7) 21.9 853.7
Nine Months Ended September 30, 2013
Retirement Solutions Investment Insurance Solutions
Operating revenues Retirement Annuities Management Individual Life Employee Benefits Ongoing Business Corporate Closed Blocks Consolidated
Net investment income and net realized gains (losses) 1,172.2 866.5 25.3 691.0 88.4 2,843.4 52.7 105.9 3,002.0
Fee income 563.8 32.9 389.4 835.2 47.1 1,868.4 — 1,868.4
Premiums 5.0 22.0—552.6 813.5 1,393.1—4.2 1,397.3
Other revenue 46.0 9.3 25.9 20.2 (3.0) 98.4 1.1 (0.3) 99.2
Total operating revenues 1,787.0 930.7 440.6 2,099.0 946.0 6,203.3 53.8 109.8 6,366.9
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (630.2) (550.5)—(1,482.7) (679.5) (3,342.9) (10.8) (36.8) (3,390.5)
Operating expenses (619.8) (94.9) (315.4) (269.4) (179.0) (1,478.5) (76.4) (18.8) (1,573.7)
Net amortization of DAC/VOBA (79.8) (74.7)—(138.0) (11.9) (304.4) 1.1 (0.3) (303.6)
Interest expense ——(1.1)—(1.1) (134.3)—(135.4)
Total operating benefits and expenses (1,329.8) (720.1) (315.4) (1,891.2) (870.4) (5,126.9) (220.4) (55.9) (5,403.2)
Operating earnings before income taxes 457.2 210.6 125.2 207.8 75.6 1,076.4 (166.6) 53.9 963.7
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Voya Financial DAC/VOBA Segment Trends Page 17 of 70
Three Months Ended Year-to-Date
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Retirement
Balance as of beginning-of-period 1,102.9 1,219.1 1,415.3 1,381.4 1,278.3 1,415.3 712.4
Deferrals of commissions and expenses 26.0 22.7 23.6 27.1 25.5 72.3 79.6
Amortization (47.6) (52.7) (39.2) (53.6) (44.7) (139.5) (110.5)
Unlocking (25.8) 25.7 5.1 19.0 66.0 5.0 99.1
Change in unrealized capital gains/losses 86.4 (111.9) (185.7) 41.5 56.3 (211.2) 600.8
Balance as of End-of-Period 1,141.9 1,102.9 1,219.1 1,415.3 1,381.4 1,141.9 1,381.4
Annuities
Balance as of beginning-of-period 445.2 508.4 591.7 560.5 518.6 591.7 260.7
Deferrals of commissions and expenses 24.4 30.7 31.5 27.8 23.5 86.6 61.7
Amortization (72.1) (28.9) (41.3) (38.3) (55.8) (142.3) (170.6)
Unlocking 31.0 6.5 12.5 16.6 45.3 50.0 76.7
Change in unrealized capital gains/losses 79.0 (71.5) (86.1) 25.0 28.9 (78.6) 332.0
Balance as of End-of-Period 507.5 445.2 508.4 591.7 560.5 507.5 560.5
Individual Life
Balance as of beginning-of-period 2,400.4 2,560.5 2,752.9 2,717.4 2,638.2 2,752.9 2,127.6
Deferrals of commissions and expenses 37.8 36.4 32.7 36.8 39.8 106.9 142.7
Amortization (48.4) (45.1) (32.8) (46.6) (71.8) (126.3) (170.8)
Unlocking 129.2 (0.9) (4.1) 0.5 22.4 124.2 24.9
Change in unrealized capital gains/losses 38.9 (150.5) (188.2) 44.9 88.8 (299.8) 593.0
Balance as of End-of-Period 2,557.9 2,400.4 2,560.5 2,752.9 2,717.4 2,557.9 2,717.4
Other (1)
Balance as of beginning-of-period 98.9 96.7 102.7 104.0 105.7 102.7 102.6
Deferrals of commissions and expenses 5.3 7.4 4.2 5.0 4.6 17.0 16.2
Amortization (4.8) (4.3) (3.7) (3.0) (6.3) (12.8) (16.4)
Unlocking (9.0) (1.1) (6.8) (2.4)—(16.9) -
Change in unrealized capital gains/losses (0.1) 0.2 0.3 (0.9)—0.4 1.6
Balance as of End-of-Period 90.3 98.9 96.7 102.7 104.0 90.3 104.0
Closed Block Variable Annuity
Balance as of beginning-of-period 463.8 476.2 489.0 501.7 519.7 489.0 453.0
Deferrals of commissions and expenses 1.9 2.4 3.0 2.7 1.8 7.3 10.0
Amortization (21.2) (16.5) (16.2) (17.0) (15.4) (53.9) (45.7)
Unlocking 37.8 1.6 0.4 1.6 (4.3) 39.8 (6.3)
Change in unrealized capital gains/losses—0.1 — (0.1) 0.1 90.7
Balance as of End-of-Period 482.3 463.8 476.2 489.0 501.7 482.3 501.7
Total US
Balance as of beginning-of-period 4,511.2 4,860.8 5,351.6 5,265.0 5,060.5 5,351.6 3,656.3
Deferrals of commissions and expenses 95.4 99.6 95.0 99.3 95.2 290.1 310.2
Amortization (194.1) (147.5) (133.2) (158.5) (194.0) (474.8) (514.0)
Unlocking 163.2 31.8 7.1 35.3 129.4 202.4 194.4
Change in unrealized capital gains/losses 204.2 (333.5) (459.7) 110.5 173.9 (589.4) 1,618.1
Balance as of End-of-Period 4,779.9 4,511.2 4,860.8 5,351.6 5,265.0 4,779.9 5,265.0
(1) | | Employee Benefits, Investment Management, Other Closed Blocks |
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Voya Financial Consolidated Capital Structure Page 18 of 70
Balances as of
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13
Financial Debt
Senior bonds 2,746.8 2,746.5 2,746.3 2,746.0 2,745.8
Subordinated bonds 763.8 763.8 763.8 763.8 763.8
Other debt 4.9 4.9 4.9 4.9 4.9
Total Debt 3,515.5 3,515.2 3,515.0 3,514.7 3,514.5
Equity
Total common equity 11,764.9 11,665.4 11,424.0 11,423.1 10,820.0
Accumulated other comprehensive income (AOCI) 2,820.2 3,152.7 2,577.5 1,849.1 1,950.0
Total Voya Financial, Inc. Shareholders’ Equity 14,585.1 14,818.1 14,001.5 13,272.2 12,770.0
Total Equity (Excluding AOCI) 11,764.9 11,665.4 11,424.0 11,423.1 10,820.0
Capital
Total Capitalization 18,100.6 18,333.3 17,516.5 16,786.9 16,284.5
Total Capitalization (Excluding AOCI) 15,280.4 15,180.6 14,939.0 14,937.8 14,334.5
Debt to Capital
Debt to Capital 19.4% 19.2% 20.1% 20.9% 21.6%
Debt to Capital (Excluding AOCI) 23.0% 23.2% 23.5% 23.5% 24.5%
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Voya Financial Consolidated Assets Under Management/Assets Under Administration Page 19 of 70
(in millions USD)
Total
Institutional/ AUM—Assets Under AUA—Assets Under
Balances as of September 30, 2014 General Account Separate Account Mutual Funds Management Administration Total AUM + AUA
Retirement (1) 27,498.0 59,112.1 21,044.6 107,654.7 240,939.0 348,593.7
Annuities (2) 22,111.7 798.2 3,880.2 26,790.1—26,790.1
Retirement Solutions 49,609.7 59,910.3 24,924.8 134,444.8 240,939.0 375,383.8
Investment Management 78,503.1 49,914.3 78,259.2 206,676.6 53,080.7 259,757.3
Insurance
Individual Life (3) 13,424.2 2,694.5—16,118.7—16,118.7
Employee Benefits 1,780.8 16.0—1,796.8—1,796.8
Insurance Solutions 15,205.0 2,710.5—17,915.5—17,915.5
Eliminations (68,691.7) (47,449.4) (9,724.9) (125,866.0) (53,198.2) (179,064.2)
Total Ongoing Business 74,626.1 65,085.7 93,459.1 233,170.9 240,821.5 473,992.4
Closed Block Variable Annuity 1,795.2 41,755.0—43,550.2—43,550.2
Closed Block Institutional Spread Products 1,767.9 — 1,767.9—1,767.9
Closed Block Other 313.9 218.6—532.5—532.5
Total AUM and AUA 78,503.1 107,059.3 93,459.1 279,021.5 240,821.5 519,843.0
(1) Retirement AUM include wrapped funds as well as unwrapped Voya-managed funds (2) Annuities AUM includes Payout annuities (3) Individual Life AUM includes assets backing interest and non-interest sensitive products
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Retirement
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Voya Financial Retirement Sources of Operating Earnings Page 21 of 70
Three Months Ended Year-to-Date
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Sources of operating earnings before income taxes:
Investment spread and other investment income (1) 185.3 173.8 178.6 181.4 181.3 537.7 544.1
Fee based margin 211.8 211.9 209.5 215.0 209.7 633.2 614.2
Net underwriting gain (loss) and other revenue (3.5) (5.0) (3.2) (2.3) 0.4 (11.7) (8.6)
Administrative expenses (169.5) (178.5) (188.0) (181.8) (171.8) (536.0) (516.4)
Trail commissions (34.9) (34.5) (33.7) (35.3) (31.4) (103.1) (93.2)
DAC/VOBA and other intangibles amortization, excluding
unlocking (1) (41.6) (39.0) (37.0) (42.8) (45.2) (117.6) (128.8)
DAC/VOBA and other intangibles unlocking (1) (30.4) 7.1 (11.3) 4.4 44.3 (34.6) 45.9
Operating earnings before income taxes 117.2 135.8 114.9 138.6 187.3 367.9 457.2
Gross investment income
Fixed income 353.4 351.0 363.7 364.1 356.9 1,068.1 1,077.9
Limited partnership income 3.5 2.6 3.0 2.8 (0.1) 9.1 4.1
Prepayment fee income 13.8 8.4 4.3 9.1 2.9 26.5 21.0
Total gross investment income 370.7 362.0 371.0 376.0 359.7 1,103.7 1,103.0
Investment expenses (15.0) (14.7) (15.1) (14.9) (14.1) (44.8) (42.9)
Credited interest (202.7) (200.3) (204.3) (210.0) (207.5) (607.3) (610.9)
Net margin 153.0 147.0 151.6 151.1 138.1 451.6 449.2
Other investment income(1) (2) 32.3 26.8 27.0 30.3 43.2 86.1 94.9
Investment spread and other investment income 185.3 173.8 178.6 181.4 181.3 537.7 544.1
Fee based margin
Fee based margin—excluding Recordkeeping 161.2 158.3 155.4 157.3 152.6 474.9 437.0
Fee based margin—Recordkeeping 50.7 53.5 54.1 57.7 57.1 158.3 177.2
Fee based margin 211.8 211.9 209.5 215.0 209.7 633.2 614.2
(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
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Voya Financial Retirement Operating Earnings Page 22 of 70
Three Months Ended Year-to-Date
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Operating revenues
Net investment income and net realized gains (losses) 393.6 379.6 388.5 397.4 394.5 1,161.7 1,172.2
Fee income 193.5 192.9 191.1 196.1 191.0 577.5 563.8
Premiums 0.7 3.4 0.7 0.7 0.7 4.8 5.0
Other revenue 17.9 17.0 18.2 18.2 20.7 53.1 46.0
Total operating revenues 605.7 592.9 598.5 612.4 606.9 1,797.1 1,787.0
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (209.4) (209.3) (210.7) (218.2) (213.5) (629.4) (630.2)
Operating expenses (208.6) (217.3) (226.0) (220.1) (205.8) (651.9) (619.8)
Net amortization of DAC/VOBA (70.5) (30.5) (46.9) (35.5) (0.3) (147.9) (79.8)
Total operating benefits and expenses (488.5) (457.1) (483.6) (473.8) (419.6) (1,429.2) (1,329.8)
Operating earnings before income taxes 117.2 135.8 114.9 138.6 187.3 367.9 457.2
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Voya Financial Retirement AUM/AUA Page 23 of 70
Balances as of
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13
Assets under management by product group
Corporate markets 42,269.8 42,499.1 40,967.4 40,123.7 37,677.7
Tax-exempt markets 53,406.6 53,910.8 53,564.2 53,200.5 51,183.9
Total full service plans 95,676.4 96,409.9 94,531.6 93,324.2 88,861.6
Stable value 8,827.1 8,843.6 8,908.6 8,914.3 8,705.0
Individual markets 3,151.2 3,174.8 3,074.9 2,998.4 2,850.5
Total AUM 107,654.7 108,428.2 106,515.1 105,236.9 100,417.1
AUA 240,939.0 241,664.0 235,906.0 237,777.1 227,841.9
Total AUM and AUA 348,593.7 350,092.2 342,421.1 343,014.0 328,259.0
Assets under management by fund group
General account 27,498.0 27,389.5 28,205.7 28,169.2 28,088.3
Guaranteed separate account 8,111.5 8,159.8 8,114.6 8,120.0 8,092.5
Non-guaranteed separate account 51,000.6 51,960.0 50,164.8 49,534.0 46,840.4
Mutual funds/Institutional funds 21,044.6 20,918.9 20,030.0 19,413.7 17,395.9
Total AUM 107,654.7 108,428.2 106,515.1 105,236.9 100,417.1
AUA 240,939.0 241,664.0 235,906.0 237,777.1 227,841.9
Total AUM and AUA 348,593.7 350,092.2 342,421.1 343,014.0 328,259.0
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Voya Financial Retirement AUM Rollforward Page 24 of 70
Three Months Ended Year-to-Date
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Full service—Corporate markets
Assets under management, beginning of period 42,499.1 40,967.4 40,123.7 37,677.7 35,916.3 40,123.7 33,265.9
Transfer/Single deposits 884.6 913.8 900.7 1,251.5 688.2 2,699.1 2,422.8
Recurring deposits 956.3 953.5 1,108.9 845.1 883.5 3,018.7 2,823.7
Deposits 1,840.9 1,867.3 2,009.6 2,096.6 1,571.7 5,717.8 5,246.5
Surrenders, benefits, and product charges (1,595.7) (1,678.9) (1,669.6) (1,839.9) (1,645.3) (4,944.2) (4,683.6)
Net Flows 245.2 188.4 340.0 256.7 (73.6) 773.6 562.9
Interest credited and investment performance (474.4) 1,343.3 503.7 2,189.3 1,835.0 1,372.6 3,848.9
Transfer to reinsurer (3) — — — -
Assets under management, end of period 42,269.8 42,499.1 40,967.4 40,123.7 37,677.7 42,269.8 37,677.7
Full service—Tax-exempt markets
Assets under management, beginning of period 53,910.8 53,564.2 53,200.5 51,183.9 49,451.5 53,200.5 46,986.1
Transfer/Single deposits 338.5 241.6 269.7 271.2 335.0 849.8 1,333.0
Recurring deposits 669.9 764.9 779.4 756.5 691.0 2,214.2 2,269.5
Deposits 1,008.4 1,006.5 1,049.1 1,027.7 1,026.0 3,064.0 3,602.5
Surrenders, benefits, and product charges (1,295.3) (1,100.4) (1,330.7) (1,117.5) (1,101.8) (3,726.4) (3,326.4)
Net Flows (286.9) (93.9) (281.6) (89.8) (75.8) (662.4) 276.1
Interest credited and investment performance (217.3) 1,349.3 645.3 2,106.4 1,808.2 1,777.3 3,921.7
Transfer to reinsurer (3)—(908.8) ——(908.8) -
Assets under management, end of period 53,406.6 53,910.8 53,564.2 53,200.5 51,183.9 53,406.6 51,183.9
Stable value (1)
Assets under management, beginning of period 8,843.6 8,908.6 8,914.3 8,705.0 8,406.9 8,914.3 7,792.1
Transfer/Single deposits 46.0 25.6 134.9 202.1 336.7 206.5 1,232.0
Recurring deposits 44.9 34.9 47.1 60.1 63.4 126.9 161.3
Deposits 90.9 60.5 182.0 262.2 400.1 333.4 1,393.3
Surrenders, benefits, and product charges (115.1) (205.0) (242.2) (113.8) (81.3) (562.3) (402.7)
Net Flows (24.2) (144.5) (60.2) 148.4 318.8 (228.9) 990.6
Interest credited and investment performance 7.5 79.5 54.5 60.9 (20.7) 141.5 (77.7)
Transfer to reinsurer (3) — — — -
Assets under management, end of period 8,827.1 8,843.6 8,908.6 8,914.3 8,705.0 8,827.1 8,705.0
Individual markets
Assets under management, beginning of period 3,174.8 3,074.9 2,998.4 2,850.5 2,702.4 2,998.4 2,427.1
Transfer/Single deposits 225.4 263.2 281.8 290.3 280.5 770.4 935.7
Recurring deposits 0.2 0.6 0.6 0.2 0.2 1.4 1.1
Deposits 225.6 263.8 282.4 290.5 280.7 771.8 936.8
Surrenders, benefits, and product charges (226.3) (236.1) (236.2) (242.6) (215.8) (698.6) (671.3)
Net Flows (0.7) 27.7 46.2 47.9 64.9 73.2 265.5
Interest credited and investment performance (22.9) 72.2 30.3 100.0 83.2 79.6 157.9
Transfer to reinsurer (3) — — — -
Assets under management, end of period 3,151.2 3,174.8 3,074.9 2,998.4 2,850.5 3,151.2 2,850.5
Total AUM (2)
Assets under management, beginning of period 108,428.2 106,515.1 105,236.9 100,417.1 96,477.1 105,236.9 90,471.2
Transfer/Single deposits 1,494.6 1,444.1 1,587.1 2,015.1 1,640.4 4,525.8 5,923.5
Recurring deposits 1,671.3 1,753.9 1,936.0 1,661.9 1,638.1 5,361.2 5,255.5
Deposits 3,165.9 3,198.0 3,523.1 3,677.0 3,278.5 9,887.0 11,179.0
Surrenders, benefits, and product charges (3,232.3) (3,220.4) (3,478.7) (3,313.8) (3,044.2) (9,931.4) (9,083.7)
Net Flows (66.4) (22.4) 44.4 363.2 234.3 (44.4) 2,095.3
Interest credited and investment performance (707.1) 2,844.3 1,233.8 4,456.6 3,705.7 3,371.0 7,850.6
Transfer to reinsurer (3)—(908.8) ——(908.8) -
Assets under management, end of period 107,654.7 108,428.2 106,515.1 105,236.9 100,417.1 107,654.7 100,417.1
(1) | | Where Voya is the Investment Manager |
(2) Excludes Recordkeeping and Stable Value where Voya is not the Investment Manager (3) Assets transferred to third parties through reinsurance transactions
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Voya Financial Annuities Sources of Operating Earnings Page 26 of 70
Three Months Ended Year-to-Date
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Sources of operating earnings before income taxes:
Investment spread and other investment income (1) 125.7 116.4 111.0 120.5 127.9 353.1 356.7
Fee based margin 14.6 14.0 13.2 12.9 12.1 41.8 33.9
Net underwriting gain (loss) and other revenue 3.3 9.0 7.0 4.3 2.3 19.3 13.9
Administrative expenses (22.6) (24.7) (24.7) (22.0) (22.5) (72.0) (67.6)
Trail commissions (11.8) (11.7) (10.4) (9.9) (8.9) (33.9) (26.3)
DAC/VOBA and other intangibles amortization, excluding
unlocking (1) (48.7) (45.3) (44.5) (49.8) (57.9) (138.5) (160.7)
DAC/VOBA and other intangibles unlocking (1) 17.8 6.5 3.2 27.2 43.8 27.5 60.7
Operating earnings before income taxes 78.3 64.2 54.8 83.2 96.8 197.3 210.6
Gross investment income
Fixed income 259.7 259.7 257.9 256.4 259.1 777.3 785.0
Limited partnership income 6.2 3.5 4.7 5.3 1.3 14.4 8.0
Prepayment fee income 9.0 7.1 2.5 9.9 6.3 18.6 23.2
Total gross investment income 274.9 270.3 265.1 271.6 266.7 810.3 816.2
Investment expenses (11.3) (11.2) (10.7) (10.8) (10.5) (33.2) (32.6)
Credited interest (156.8) (159.7) (159.7) (163.0) (168.1) (476.2) (509.6)
Net margin 106.8 99.4 94.7 97.8 88.1 300.9 274.0
Other investment income (1) (2) 18.9 17.0 16.3 22.7 39.9 52.2 82.7
Investment spread and other investment income 125.7 116.4 111.0 120.5 127.9 353.1 356.7
(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
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Voya Financial Annuities Operating Earnings Page 27 of 70
Three Months Ended Year-to-Date
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Operating revenues
Net investment income and net realized gains (losses) 282.3 275.8 270.6 283.4 295.9 828.7 866.5
Fee income 15.0 14.2 13.2 12.2 11.8 42.4 32.9
Premiums 42.7 35.5 66.1 14.4 7.5 144.3 22.0
Other revenue 4.6 5.3 4.5 3.9 3.9 14.4 9.3
Total operating revenues 344.6 330.8 354.4 313.9 319.1 1,029.8 930.7
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders (204.1) (197.4) (229.8) (180.4) (182.2) (631.3) (550.5)
Operating expenses (34.8) (36.6) (35.5) (32.1) (31.7) (106.9) (94.9)
Net amortization of DAC/VOBA (27.4) (32.6) (34.3) (18.2) (8.4) (94.3) (74.7)
Total operating benefits and expenses (266.3) (266.6) (299.6) (230.7) (222.3) (832.5) (720.1)
Operating earnings before income taxes 78.3 64.2 54.8 83.2 96.8 197.3 210.6
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Voya Financial Annuities AUM Page 28 of 70
Balances as of
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13
Assets Under Management
Fixed single year 3,677.5 3,750.7 3,825.4 3,889.5 3,985.4
Fixed multi-year 2,653.9 3,224.4 3,342.9 3,445.7 3,608.1
Indexed 13,230.1 13,105.5 12,883.5 12,648.4 12,494.9
SPIA & Payout 2,892.1 2,886.1 2,871.1 2,803.5 2,760.4
Mutual funds 3,880.2 3,825.1 3,574.3 3,384.9 3,077.8
Other annuities 456.2 473.1 470.4 474.8 452.6
Total AUM 26,790.1 27,264.9 26,967.6 26,646.7 26,379.2
Assets Under Management
General account 22,111.7 22,614.5 22,573.2 22,432.2 22,508.2
Separate account 798.2 825.3 820.1 829.6 793.2
Mutual funds 3,880.2 3,825.1 3,574.3 3,384.9 3,077.8
Total AUM 26,790.1 27,264.9 26,967.6 26,646.7 26,379.2
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Voya Financial Annuities AUM Rollforward Page 29 of 70
Three Months Ended Year-to-Date
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Annual Reset Annuities/Multi-Year Guaranteed Annuities
Assets Under Management, beginning of period 6,975.0 7,168.3 7,335.2 7,593.5 7,852.7 7,335.2 8,222.9
Deposits 6.8 8.7 12.0 17.7 14.5 27.5 43.2
Surrenders, benefits, and product charges (710.8) (267.6) (245.2) (348.1) (346.9) (1,223.6) (901.5)
Net cash flow (704.0) (258.9) (233.2) (330.4) (332.4) (1,196.1) (858.3)
Interest credited and investment performance 60.3 65.7 66.3 72.1 73.2 192.3 228.9
Assets Under Management, end of period 6,331.4 6,975.1 7,168.3 7,335.2 7,593.5 6,331.4 7,593.5
Fixed Indexed Annuities
Assets Under Management, beginning of period 13,105.6 12,883.5 12,648.4 12,494.9 12,362.8 12,648.4 12,209.2
Deposits 338.1 430.4 436.2 379.3 334.8 1,204.7 867.4
Surrenders, benefits, and product charges (338.6) (348.0) (316.5) (348.6) (327.3) (1,003.1) (949.0)
Net cash flow (0.5) 82.4 119.8 30.7 7.6 201.7 (81.7)
Interest credited and investment performance 125.0 139.6 115.3 122.8 124.6 380.0 367.3
Assets Under Management, end of period 13,230.1 13,105.5 12,883.5 12,648.4 12,494.9 13,230.1 12,494.9
SPIA & Payout
Assets Under Management, beginning of period 2,886.1 2,871.1 2,803.5 2,760.4 2,762.9 2,803.5 2,806.6
Deposits 76.6 81.4 119.6 94.5 51.1 277.6 128.1
Surrenders, benefits, and product charges (103.2) (107.6) (86.4) (108.7) (110.6) (297.2) (319.3)
Net cash flow (26.6) (26.2) 33.2 (14.2) (59.5) (19.6) (191.2)
Interest credited and investment performance 32.6 41.2 34.4 57.3 57.0 108.2 145.0
Assets Under Management, end of period 2,892.1 2,886.1 2,871.1 2,803.5 2,760.4 2,892.1 2,760.4
Mutual Fund Custodial
Assets Under Management, beginning of period 3,825.1 3,574.3 3,384.9 3,077.8 2,816.2 3,384.9 2,433.5
Deposits 264.9 274.6 292.6 288.3 270.6 832.1 809.1
Surrenders, benefits, and product charges (143.0) (148.5) (146.8) (135.1) (133.8) (438.3) (363.3)
Net cash flow 121.9 126.1 145.7 153.3 136.8 393.7 445.8
Interest credited and investment performance (66.8) 124.7 43.7 153.8 124.8 101.6 198.4
Assets Under Management, end of period 3,880.2 3,825.1 3,574.3 3,384.9 3,077.8 3,880.2 3,077.8
Other Annuities
Assets Under Management, beginning of period 473.0 470.4 474.8 452.6 438.9 474.8 428.7
Deposits 0.7 1.7 1.3 1.0 0.6 3.7 3.3
Surrenders, benefits, and product charges (14.5) (16.9) (11.9) (12.4) (14.1) (43.3) (42.9)
Net cash flow (13.8) (15.2) (10.5) (11.4) (13.5) (39.5) (39.6)
Interest credited and investment performance (3.0) 17.8 6.1 33.6 27.2 20.9 63.5
Assets Under Management, end of period 456.2 473.1 470.4 474.8 452.6 456.2 452.6
Annuities—Total
Assets Under Management, beginning of period 27,264.9 26,967.6 26,646.7 26,379.2 26,233.5 26,646.7 26,101.1
Deposits 687.1 796.9 861.7 780.9 671.7 2,345.6 1,851.1
Surrenders, benefits, and product charges (1,310.0) (888.7) (806.8) (952.8) (932.7) (3,005.5) (2,576.1)
Net cash flow (622.9) (91.8) 54.9 (171.9) (261.0) (659.9) (725.0)
Interest credited and investment performance 148.1 389.1 266.0 439.4 406.7 803.3 1,003.1
Assets Under Management, end of period 26,790.1 27,264.9 26,967.6 26,646.7 26,379.2 26,790.1 26,379.2
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Voya Financial
Investment Management Sources of Operating Earnings
Page 31 of 70
(in millions USD)
Sources of operating earnings before income taxes:
Investment capital and other investment income (1) Fee based margin Administrative expenses
Operating earnings before income taxes
9/30/14
9.3
159.0
(109.7)
58.6
6/30/14
8.2
155.0
(108.3)
54.9
Three Months Ended
3/31/14
7.5
153.0
(110.7)
49.8
12/31/13
12.1
155.0
(114.2)
52.9
9/30/13
16.8
143.3
(106.1)
54.0
Year-to-Date
9/30/14
25.0 467.0 (328.7)
163.3
9/30/13
25.6 415.0 (315.4)
125.2
(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
Investment Management Operating Earnings
Page 32 of 70
(in millions USD)
Operating revenues
Net investment income and net realized gains (losses) Fee income Other revenue
Total operating revenues
Operating benefits and expenses
Operating expenses
Total operating benefits and expenses
Operating earnings before income taxes
Three Months Ended
9/30/14
9.0
149.5
9.8
168.3
(109.7)
(109.7)
58.6
6/30/14
8.0
147.1
8.1
163.2
(108.3)
(108.3)
54.9
3/31/14
7.3
145.8
7.4
160.5
(110.7)
(110.7)
49.8
12/31/13
11.7
141.4
14.0
167.1
(114.2)
(114.2)
52.9
9/30/13
16.4
135.4
8.3
160.1
(106.1)
(106.1)
54.0
Year-to-Date
9/30/14
24.3 442.4 25.3
492.0
(328.7)
(328.7)
163.3
9/30/13
25.3 389.4 25.9
440.6
(315.4)
(315.4)
125.2
Voya Financial
Investment Management Key Metrics
Page 33 of 70
(in millions USD)
Client Assets by Source: External clients
Investment Management sourced Affiliate sourced
Subtotal external clients
General Account (1)
Total Client Assets (AUM)
Administration Only Assets (AUA)
Total AUM and AUA
Balances as of
9/30/14
69,232.2
58,941.3
128,173.5
78,503.1
206,676.6
53,080.7
259,757.3
6/30/14
70,518.2
58,728.9
129,247.1
78,335.1
207,582.2
55,778.9
263,361.1
3/31/14
69,104.4
57,988.9
127,093.3
79,684.4
206,777.7
53,688.8
260,466.5
12/31/13
66,362.2
53,935.0
120,297.2
78,988.8
199,286.0
58,462.8
257,748.8
9/30/13
63,275.4
52,169.6
115,445.0
80,260.3
195,705.3
55,843.7
251,549.0
Balances as of
9/30/14
69,232.2
58,941.3
128,173.5
78,503.1
206,676.6
53,080.7
259,757.3
9/30/13
63,275.4
52,169.6
115,445.0
80,260.3
195,705.3
55,843.7
251,549.0
Analysis of investment advisory and administrative revenues, net, by source: (2) External clients
Investment Management sourced Affiliate sourced
Subtotal External Clients
General Account
Total investment advisory and administrative revenues, net, from AUM
Administration Only Fees
Total investment advisory and administrative revenues, net, by source (2)
Revenue Yield (bps): (2) (3) External clients
Investment Management sourced Affiliate sourced
Revenue Yield on Institutional/retail
General Account
Revenue Yield on Client Assets (AUM)
Revenue Yield on Administration Only Assets (AUA)
Total Revenue Yield on AUM and AUA (bps) (2) (3)
Three Months Ended
9/30/14
77.9
32.1
110.0
36.0
146.0
3.5
149.5
44.4
21.6
34.0
18.4
28.1
2.6
22.8
6/30/14
77.4
28.9
106.3
36.5
142.8
4.3
147.1
44.7
19.9
33.3
18.4
27.6
3.2
22.5
3/31/14
78.5
28.3
106.8
36.1
142.9
2.9
145.8
46.7
20.4
34.8
18.3
28.3
2.1
22.6
12/31/13
74.6
26.8
101.4
36.2
137.6
3.8
141.4
46.0
20.1
34.4
18.0
27.7
2.7
22.1
9/30/13
69.4 25.8
95.2
36.2
131.4
4.0
135.4
44.7 20.5
33.8
18.0
27.3
2.9
21.8
Year to Date
9/30/14
233.8
89.3
323.1
108.6
431.7
10.7
442.4
45.4
20.7
34.1
18.3
28.1
2.6
22.7
9/30/13
195.6
71.4
267.0
109.2
376.2
13.2
389.4
44.0
19.2
32.7
18.2
26.6
3.2
21.2
(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
Investment Management Account Rollforward by Source
Page 34 of 70
(in millions USD)
AUM Roll-forward By Source Investment Management Sourced Beginning AUM
Inflows
Inflows from sub-advisor replacements Inflows-other Outflows
Net Flows
Net Money Market Flows Change in Market Value
Other (Including Acquisitions / Divestitures)
Investment Management sourced AUM End of Period
Organic Growth (Long Term Net Flows / Beginning of Period AUM) Market Growth %
Affiliate Sourced Beginning AUM
Inflows
Inflows from sub-advisor replacements Inflows-other Outflows
Net Flows
Net Money Market Flows Change in Market Value
Other (Including Acquisitions / Divestitures)
Affiliate sourced AUM End of Period
Organic Growth (Long Term Net Flows / Beginning of Period AUM) Market Growth %
Other affiliate sourced net flows Variable annuity net flows
Total affiliate sourced net flows
Investment Management sourced net flows Total net flows
Net Flows excluding sub-advisor replacements and variable annuity net flows
Three Months Ended
9/30/14
70,518.2
-2,872.2 (3,284.8)
(412.6)
(13.1) (1,052.2) 191.9
69,232.2
-0.59% -1.49%
58,728.9
2,130.2 667.5 (2,206.3)
591.4
(34.1) (293.4) (51.6)
58,941.3
1.01% -0.50%
1,581.4 (990.0)
591.4 (412.6) 178.8
(961.4)
6/30/14
69,104.4
-3,106.7 (3,701.5)
(594.8)
(34.1) 1,614.4 428.3
70,518.2
-0.86% 2.34%
57,988.9
-757.3 (2,020.2)
(1,262.9)
(95.8) 1,915.8 182.9
58,728.9
-2.18% 3.30%
(401.4) (861.5)
(1,262.9) (594.8) (1,857.7)
(996.2)
3/31/14
66,362.2
-4,189.3 (2,844.0)
1,345.3
28.1 843.6 525.2
69,104.4
2.03% 1.27%
53,935.0
4,671.9 949.2 (2,082.2)
3,538.9
(45.5) 639.8 (79.3)
57,988.9
6.56% 1.19%
4,340.2 (801.3)
3,538.9 1,345.3
4,884.2
1,013.6
12/31/13
63,275.4
-4,589.9 (3,302.9)
1,287.0
2.3 1,827.6 (30.0)
66,362.2
2.03% 2.89%
52,169.5
-1,149.3 (1,790.4)
(641.1)
(156.8) 2,491.3 72.1
53,935.0
-1.23% 4.78%
10.0 (651.1)
(641.1) 1,287.0
645.9
1,297.0
9/30/13
60,643.9
-3,875.4 (3,160.6)
714.9
5.1 1,801.8 109.8
63,275.4
1.18% 2.97%
49,404.6
869.8 1,849.6 (1,600.8)
1,118.6
(21.1) 2,088.5 (421.0)
52,169.5
2.26% 4.23%
1,722.3 (603.8)
1,118.6 714.9
1,833.5
1,567.5
Year-to-Date
9/30/14
66,362.2
-10,168.2 (9,830.3)
337.9
(19.1) 1,405.8 1,145.4
69,232.2
0.51% 2.12%
53,935.0
6,802.1 2,374.0 (6,308.7)
2,867.4
(175.4) 2,262.2 52.0
58,941.3
5.32% 4.19%
5,520.2 (2,652.8)
2,867.4 337.9
3,205.3
(944.0)
9/30/13
54,061.9
197.6
14,234.0
(7,940.9)
6,490.8
(19.6)
3,016.9
(274.7)
63,275.4
12.01%
5.58%
47,284.6
1,853.9
4,453.3
(4,687.4)
1,619.8
(207.5)
4,210.1
(737.4)
52,169.6
3.43%
8.90%
3,335.1
(1,715.2)
1,619.8
6,490.8
8,110.6
7,774.3
Voya Financial
Investment Management Account Value by Asset Type
Page 35 of 70
(in millions USD)
Institutional
Equity
Fixed Income Real Estate Money Market
Total
Retail
Equity
Fixed Income Real Estate Money Market
Total
General Account
Equity
Fixed Income Real Estate Money Market
Total
Combined Asset Type
Equity
Fixed Income Real Estate Money Market
Total
Balances as of
9/30/14
18,143.9 38,535.2 -11.4
56,690.5
44,026.3 18,604.5 6,889.1 1,963.1
71,483.0
232.1 77,227.6 -1,043.4
78,503.1
62,402.3 134,367.3 6,889.1 3,017.9
206,676.6
6/30/14
18,465.7 39,259.3 -11.5
57,736.5
43,723.5 18,505.3 7,250.2 2,031.6
71,510.6
254.7 77,204.4 -876.0
78,335.1
62,443.9 134,969.0 7,250.2 2,919.1
207,582.2
3/31/14
18,934.5 38,014.5 -28.1
56,977.1
42,320.6 18,798.5 6,873.5 2,123.6
70,116.2
265.4 78,457.1 -961.9
79,684.4
61,520.5 135,270.1 6,873.5 3,113.6
206,777.7
12/31/13
18,334.8 36,532.3 -28.6
54,895.7
41,408.5 15,209.9 6,647.6 2,135.5
65,401.5
280.3 77,958.6 -749.9
78,988.8
60,023.6 129,700.8 6,647.6 2,914.0
199,286.0
9/30/13
16,934.3 35,223.5 -27.2
52,185.0
38,963.8 15,191.3 6,801.5 2,303.4
63,260.0
292.6 78,097.5 -1,870.2
80,260.3
56,190.9 128,512.2 6,801.5 4,200.7
195,705.3
Individual Life
Voya Financial
Individual Life Sources of Operating Earnings
Page 37 of 70
(in millions USD)
Sources of operating earnings before income taxes:
Investment spread and other investment income (1) Fee based margin Net underwriting gain (loss) and other revenue Administrative expenses Trail commissions DAC/VOBA and other intangibles amortization, excluding unlocking (1) DAC/VOBA and other intangibles unlocking (1)
Operating earnings before income taxes
Gross Investment Income
Fixed income
Limited partnership income Prepayment fee income
Total gross investment income
Investment expenses Credited interest
Net margin
Other investment income (1) (2)
Investment spread and other investment income
Net underwriting gain (loss) and other revenue
Fee Revenue/Premiums
Net Mortality, including Reinsurance Reserve Change/Other
Total net underwriting gain (loss) and other revenue
Three Months Ended
9/30/14
59.6
4.4
93.4
(62.3)
(6.2)
(42.0)
(7.1)
39.8
212.5
4.9
4.5
221.9
(6.2)
(164.8)
50.9
8.7
59.6
492.3
(326.4)
(72.5)
93.4
6/30/14
52.1
4.4
123.9
(64.4)
(6.0)
(45.1)
(1.5)
63.4
209.1
2.6
3.0
214.7
(6.0)
(163.9)
44.8
7.3
52.1
504.3
(299.4)
(81.0)
123.9
3/31/14
53.9
5.5
86.7
(68.3)
(6.2)
(33.4)
(7.1)
31.1
210.7
4.2
0.5
215.4
(6.1)
(162.1)
47.2
6.7
53.9
488.5
(326.4)
(75.4)
86.7
12/31/13
57.1
5.8
100.4
(65.9)
(4.9)
(39.1)
(6.4)
47.0
209.5
3.6
3.6
216.7
(6.2)
(165.1)
45.4
11.7
57.1
494.2
(305.8)
(88.0)
100.4
9/30/13
95.1
4.6
119.9
(64.0)
(4.8)
(70.2)
36.4
117.0
208.6
0.7
3.6
212.9
(5.8)
(162.5)
44.6
50.6
95.1
499.3
(283.9)
(95.5)
119.9
Year-to-Date
9/30/14
165.6
14.3
304.0
(195.0)
(18.4)
(120.5)
(15.7)
134.3
632.3
11.7
8.0
652.0
(18.3)
(490.8)
142.9
22.7
165.6
1,485.2
(952.2)
(229.0)
304.0
9/30/13
195.7
14.4
351.6
(200.8)
(18.4)
(163.5)
28.8
207.8
616.0
6.1
14.4
636.5
(16.9)
(488.6)
131.0
64.7
195.7
1,487.8
(879.1)
(257.1)
351.6
(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
Individual Life Operating Earnings
Page 38 of 70
(in millions USD)
Operating revenues
Net investment income and net realized gains (losses) Fee income Premiums Other revenue
Total operating revenues
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders Operating expenses Net amortization of DAC/VOBA
Interest expense
Total operating benefits and expenses
Operating earnings before income taxes
Three Months Ended
9/30/14
226.3 269.3 179.1 4.4
679.1
(632.8) (88.7) 82.2 -
(639.3)
39.8
6/30/14
215.5 285.5 191.7 7.2
699.9
(499.3) (91.3) (45.9) -
(636.5)
63.4
3/31/14
219.8 283.6 183.7 5.1
692.2
(527.8) (95.7) (37.6) -
(661.1)
31.1
12/31/13
224.5 278.5 185.3 4.6
692.9
(518.8) (88.9) (38.2) -
(645.9)
47.0
9/30/13
258.7 278.4 174.7 5.3
717.1
(468.7) (83.9) (47.5) -
(600.1)
117.0
Year-to-Date
9/30/14
661.6 838.4 554.5 16.7
2,071.2
(1,659.9) (275.7) (1.3) -
(1,936.9)
134.3
9/30/13
691.0
835.2
552.6
20.2
2,099.0
(1,482.7)
(269.4)
(138.0)
(1.1)
(1,891.2)
207.8
Voya Financial
Individual Life Key Metrics
Page 39 of 70
(in millions USD)
Sales by Product Line
Guaranteed Accumulation Indexed
Total Universal life
Variable life Term Whole life
Total sales by product line
Sales by Distribution
Independent life sales Strategic distribution
Alternative and specialty markets
Total sales by distribution
Gross premiums and deposits by product:
Interest sensitive Non—interest sensitive
Total gross premiums and deposits
Applications
New business policy count (Paid)
End of Period:
In-force face amount (by product)
Universal life Variable life Term Whole life
Total In-force Face
In-force policy count (in whole numbers)
Universal life Variable life Term Whole life
Total Policy Counts
Assets under management
General account Separate account
Total
Three Months Ended
9/30/14
-2.6 16.0
18.6
1.4 6.8 -
26.8
20.1 4.2 2.5
26.8
292.5 218.8
511.3
7,452
77,867 26,806 491,344 2,110
598,128
283,349 63,597 822,955 135,450
1,305,351
13,424.2 2,694.5
16,118.7
6/30/14
-2.1 13.3
15.4
1.5 8.1 -
25.0
17.2 5.2 2.6
25.0
291.5 232.7
524.2
8,837
77,948 27,250 493,570 2,145
600,914
286,236 64,569 826,465 138,054
1,315,324
13,381.3 2,761.6
16,142.9
3/31/14
-2.8 7.9
10.7
0.9 7.2 0.1
18.9
13.2 3.7 2.0
18.9
276.0 223.6
499.6
7,879
78,162 27,667 494,756 2,176
602,761
289,045 65,635 828,414 140,209
1,323,303
13,308.0 2,699.7
16,007.7
12/31/13
-2.0 8.4
10.4
0.7 9.8 0.1
21.0
12.9 5.2 2.9
21.0
276.1 227.0
503.0
9,906
78,581 28,198 495,995 2,217
604,990
292,096 66,811 830,832 142,409
1,332,148
13,271.3 2,724.3
15,995.6
9/30/13
0.1
2.8
5.8
8.7
2.8
11.2
0.1
22.8
13.3
5.8
3.7
22.8
271.5
217.2
488.7
11,904
78,901
28,679
496,935
2,241
606,756
295,241
67,887
832,506
144,274
1,339,908
13,257.4
2,590.3
15,847.7
Year-to-Date
9/30/14
9/30/13
-7.5 37.2
44.7
3.8 22.1 0.1
70.7
50.5 13.1 7.1
70.7
860.0 675.1
1,535.1
24,168
77,867 26,806 491,344 2,110
598,128
283,349 63,597 822,955 135,450
1,305,351
13,424.2 2,694.5
16,118.7
0.6
10.7
19.2
30.5
7.9
40.3
0.1
78.8
49.6
16.5
12.7
78.8
819.9
674.2
1,494.1
43,331
78,901
28,679
496,935
2,241
606,756
295,241
67,887
832,506
144,274
1,339,908
13,257.4
2,590.3
15,847.7
Employee Benefits
Voya Financial
Employee Benefits Sources of Operating Earnings
Page 41 of 70
(in millions USD)
Sources of operating earnings before income taxes:
Investment spread and other investment income (1) Net underwriting gain (loss) and other revenue Administrative expenses Trail commissions
DAC/VOBA and other intangibles amortization, excluding unlocking DAC/VOBA and other intangibles unlocking
Operating earnings before income taxes
Gross Investment Income
Fixed income
Limited partnership income Prepayment fee income
Total gross investment income
Investment expenses Credited interest
Net margin
Other investment income (1) (2)
Investment spread and other investment income
Group life
Premiums Benefits Other (3)
Total
Loss Ratio (Interest adjusted)
Group stop loss
Premiums Benefits Other (3)
Total Loss Ratio
Voluntary Benefits, Disability, and Other
Net underwriting gain (loss) and other revenue
Three Months Ended
9/30/14
14.3 88.3 (40.0) (21.0)
(3.2) (1.4)
37.0
25.6 0.6 0.7
26.9
(0.7) (14.9)
11.3
3.0
14.3
111.9 (84.3) (2.3)
25.3 75.4%
164.1 (118.4) (0.8)
44.9 72.1%
18.3
88.3
6/30/14
11.4 91.5 (42.0) (18.9)
(2.4) (1.8)
37.8
25.3 0.3 0.4
26.0
(0.7) (16.4)
8.9
2.5
11.4
115.7 (86.4) (1.8)
27.5 74.7%
164.0 (118.5) (0.9)
44.6 72.2%
19.5
91.5
3/31/14
10.9 83.1 (44.7) (23.4)
(4.4) (4.6)
16.9
24.7 0.4 0.1
25.2
(0.8) (15.8)
8.6
2.3
10.9
113.3 (92.9) (2.1)
18.3 82.0%
163.9 (118.6) (1.4)
43.9 72.4%
21.0
83.1
12/31/13
13.6 78.3 (38.5) (18.0)
(4.4) (0.5)
30.5
25.4 0.6 1.0
27.0
(0.6) (15.7)
10.7
2.9
13.6
117.2 (84.3) (2.5)
30.5 72.0%
138.8 (108.9) (0.4)
29.5 78.4%
18.3
78.3
9/30/13
16.3 76.3 (39.9) (18.7)
(4.9) -
29.1
25.3 -1.1
26.4
(0.8) (15.8)
9.8
6.5
16.3
118.1 (97.0) (1.1)
20.0 82.1%
136.3 (99.3) (1.1)
35.9 72.8%
20.5
76.3
Year-to-Date
9/30/14
36.6
262.9
(126.7)
(63.3)
(10.0)
(7.8)
91.7
75.6
1.3
1.2
78.1
(2.4)
(47.1)
28.6
8.0
36.6
340.9
(263.6)
(6.2)
71.1
77.3%
492.0
(355.5)
(3.1)
133.4
72.3%
58.5
262.9
9/30/13
40.0 226.0 (120.5) (58.0)
(11.9) -
75.6
76.1 0.6 2.9
79.6
(2.5) (48.3)
28.8
11.2
40.0
356.2 (288.4) (6.7)
61.1 81.0%
405.9 (301.3) (2.7)
101.9 74.2%
62.9
226.0
(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
Employee Benefits Operating Earnings
Page 42 of 70
(in millions USD)
Operating revenues
Net investment income and net realized gains (losses) Fee income Premiums Other revenue
Total operating revenues
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders Operating expenses Net amortization of DAC/VOBA
Total operating benefits and expenses
Operating earnings before income taxes
Three Months Ended
9/30/14
29.1
23.9
293.7
(0.8)
345.9
(235.7)
(60.9)
(12.3)
(308.9)
37.0
6/30/14
27.7
14.7
302.8
(2.7)
342.5
(239.6)
(60.9)
(4.2)
(304.7)
37.8
3/31/14
26.7
15.6
296.3
0.3
338.9
(244.5)
(68.4)
(9.1)
(322.0)
16.9
12/31/13
29.2
15.9
272.4
(1.0)
316.5
(223.9)
(57.1)
(5.0)
(286.0)
30.5
9/30/13
32.1
15.5
269.6
(1.0)
316.2
(223.7)
(58.5)
(4.9)
(287.1)
29.1
Year-to-Date
9/30/14
83.5
54.2
892.8
(3.2)
1,027.3
(719.8)
(190.2)
(25.6)
(935.6)
91.7
9/30/13
88.4
47.1
813.5
(3.0)
946.0
(679.5)
(179.0)
(11.9)
(870.4)
75.6
Voya Financial
Employee Benefits Key Metrics
Page 43 of 70
(in millions USD)
Sales
Group life (Basic / Sup / AD&D) Group stop loss Disability Association (Life, DI, PAI) Other (PAI)
Total group products Voluntary products
Total sales by product line
Total gross premiums and deposits
Total annualized in-force premiums
Assets under management (EOP)
General account Separate account
Total
Three Months Ended
9/30/14
7.2 21.8 1.0 -0.3
30.3 5.2
35.5
340.6
1,398.2
1,780.8 16.0
1,796.8
6/30/14
4.1 9.4 0.7 0.7 -
14.9 4.3
19.2
348.3
1,396.7
1,791.3 16.2
1,807.5
Months
3/31/14
37.5 182.4 8.6 -1.0
229.5 22.3
251.8
342.9
1,407.7
1,760.5 15.9
1,776.4
12/31/13
5.4
14.0
3.1
3.6
0.4
26.5
9.1
35.6
314.5
1,294.6
1,739.2
15.9
1,755.1
9/30/13
7.3
38.1
2.5
0.1
0.2
48.2
4.0
52.2
316.2
1,292.4
1,753.6
15.2
1,768.8
Year-to-Date
9/30/14
48.8
213.6
10.3
0.7
1.3
274.7
31.8
306.5
1,031.8
1,398.2
1,780.8
16.0
1,796.8
9/30/13
52.9
139.4
14.4
0.4
2.1
209.3
18.1
227.4
947.0
1,292.4
1,753.6
15.2
1,768.8
Corporate
Voya Financial
Corporate Operating Earnings
Page 45 of 70
(in millions USD)
Interest expense
Closed Block Variable Annuity contingent capital LOC Amortization of intangibles Other (1)
Operating earnings before income taxes
Three Months Ended
9/30/14
(46.8) -(9.2) 8.9
(47.1)
6/30/14
(46.7) -(8.6) 17.0
(38.3)
3/31/14
(47.0) -(8.6) 18.3
(37.3)
12/31/13
(47.0) -(8.7) 11.7
(44.0)
9/30/13
(47.6) -(8.7) (7.4)
(63.7)
Year-to-Date
9/30/14
(140.5) -(26.4) 44.2
(122.7)
9/30/13
(132.7) (18.4) (26.3) 10.8
(166.6)
(1) The three months ended 12/31/13, 3/31/14, and 6/30/14 include $3.2 million, $(1.8) million, and $5.8 million of net investment income from Lehman Recovery, respectively.
Closed Blocks (Variable Annuity and Other)
Voya Financial
Closed Block ISP and Other Operating Earnings
Page 47 of 70
(in millions USD)
Closed Block Institutional Spread Products (1) Closed Block Other (2)
Operating earnings before income taxes
Closed Block Institutional Spread Products
Operating revenues
Net investment income and net realized gains (losses) (1) Premiums Other revenue
Total operating revenues
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders Operating expenses Net amortization of DAC/VOBA
Total operating benefits and expenses
Operating earnings before income taxes
Closed Block Other
Operating revenues
Net investment income and net realized gains (losses) (2) Premiums Other revenue
Total operating revenues
Operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders Operating expenses
Total operating benefits and expenses
Operating earnings before income taxes
Three Months Ended
9/30/14
8.5
2.0
10.5
6/30/14
6.6 3.9
10.5
3/31/14
5.4 (4.5)
0.9
12/31/13
(5.8) 2.5
(3.3)
9/30/13
8.7 5.8
14.5
Year-to-Date
9/30/14
20.5
1.4
21.9
9/30/13
41.7 12.2
53.9
Three Months Ended
9/30/14
18.4 0.6 (0.4)
18.6
(7.5) (2.5) (0.1)
(10.1)
8.5
6/30/14
16.6 0.6 (0.2)
17.0
(7.5) (2.8) (0.1)
(10.4)
6.6
Months
3/31/14
17.2 0.6 (0.2)
17.6
(8.8) (3.3) (0.1)
(12.2)
5.4
12/31/13
21.1 0.6 (0.3)
21.4
(24.6) (2.5) (0.1)
(27.2)
(5.8)
9/30/13
22.8 0.6 (0.3)
23.1
(11.9) (2.4) (0.1)
(14.4)
8.7
Year-to-Date
9/30/14
52.2 1.8 (0.8)
53.2
(23.8) (8.6) (0.3)
(32.7)
20.5
9/30/13
86.8 1.8 (0.9)
87.7
(38.1) (7.6) (0.3)
(46.0)
41.7
Three Months Ended
9/30/14
6.0
0.6
0.2
6.8
(0.4)
(4.4)
(4.8)
2.0
6/30/14
6.2 0.9 (0.1)
7.0
(1.4) (1.7)
(3.1)
3.9
Months
3/31/14
5.9 1.9 0.2
8.0
(6.7) (5.8)
(12.5)
(4.5)
12/31/13
5.5 (0.1) 0.2
5.6
(0.6) (2.5)
(3.1)
2.5
9/30/13
7.1 0.4 0.1
7.6
0.8 (2.6)
(1.8)
5.8
Year-to-Date
9/30/14
18.1
3.4
0.3
21.8
(8.5)
(11.9)
(20.4)
1.4
9/30/13
19.1
2.4
0.6
22.1
1.3
(11.2)
(9.9)
12.2
(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.
Voya Financial
Closed Block Variable Annuity Income (Loss) before income taxes
Page 48 of 70
(in millions USD)
Revenues
Net investment income Fee income Premiums Net realized gains (losses) Other revenues and premiums
Total revenues
Benefits and expenses
Interest credited and other benefits to contract owners/policyholders Operating expenses and interest expense Net amortization of DAC/VOBA
Total benefits and expenses
Income (loss) before income taxes
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) Gains (losses) related to CHO program (1) Gain (loss) due to nonperformance risk(1) Net investment gains (losses) (1) DAC/VOBA and other intangibles unlocking and loss recognition
Three Months Ended
9/30/14
43.0
316.2
76.0
222.1
3.3
660.6
(429.3)
(116.9)
16.6
(529.6)
131.0
6/30/14
38.9
315.8
93.0
(339.4)
3.8
112.1
(62.8)
(118.6)
(14.8)
(196.2)
(84.1)
3/31/14
34.8
316.8
50.2
(121.1)
3.9
284.6
(126.5)
(122.1)
(15.8)
(264.4)
20.2
12/31/13
29.5
331.8
40.4
(560.8)
3.2
(155.9)
64.5
(119.6)
(15.4)
(70.5)
(226.4)
9/30/13
28.8
325.3
38.8
(463.0)
4.0
(66.1)
37.6
(119.2)
(19.7)
(101.3)
(167.4)
Year-to-Date
9/30/14
116.7
948.8
219.2
(238.4)
11.0
1,057.3
(618.6)
(357.6)
(14.0)
(990.2)
67.1
9/30/13
68.1
955.3
38.8
(1,647.8)
15.2
(570.4)
(12.6)
(347.9)
(52.0)
(412.5)
(982.9)
Three Months Ended
9/30/14
(334.8)
(7.5)
187.3
(0.2)
37.8
6/30/14
(256.7) (43.2) (32.2)
(0.7)
1.6
3/31/14
(239.1) (10.9) 29.5 (0.6) 0.4
12/31/13
(201.9) -(271.7) (0.7) 1.6
9/30/13
(366.3) (40.7) 5.2 (3.7) (4.3)
Year-to-Date
9/30/14
(830.6) (61.6) 184.6 (1.5) 39.8
9/30/13
(1,227.6) (244.8) (222.8) 13.3 (6.3)
(1) Amounts exclude net amortization of DAC/VOBA and other intangibles.
Voya Financial
Closed Block Variable Annuity Death and Living Benefits
Page 49 of 70
(in millions USD)
Death and living benefits-account value
GMAB/GMWB GMIB
GMWBL
No living benefits
Total (1)
Net amount at risk (after reinsurance) Total DB NAR
GMAB/GMWB GMIB(2) GMWBL(2)
Total LB NAR
Balances as of
9/30/14
810
14,828
15,921
10,626
42,185
5,263
18
2,270
902
3,190
6/30/14
873
15,641
16,548
11,106
44,168
4,753
17
1,885
695
2,597
3/31/14
893
15,594
16,373
11,117
43,977
5,090
20
1,964
656
2,640
12/31/13
943
15,909
16,537
11,351
44,740
5,074
20
1,682
452
2,154
9/30/13
957
15,443
16,053
11,107
43,560
5,720
25
2,321
700
3,046
(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
Closed Block Variable Annuity AUM Rollforward
Page 50 of 70
(in millions USD)
Products in accumulation phase:
Balance as of beginning of period Deposits
Surrenders, benefits, and product charges Net cash flow Interest credited and investment performance
Balance as of end of period
End of period contracts in payout status
Total balance as of end of period*
Assets Under Management
General account Separate account
Total*
Three Months Ended
9/30/14
44,223.4
34.9
(1,260.1)
(1,225.2)
(760.0)
42,238.2
1,312.0
43,550.2
1,795.2
41,755.0
43,550.2
6/30/14
44,022.8
47.4
(1,309.6)
(1,262.2)
1,462.8
44,223.4
1,167.0
45,390.4
1,651.4
43,739.0
45,390.4
3/31/14
44,788.2
53.6
(1,234.4)
(1,180.9)
415.4
44,022.8
1,019.2
45,042.0
1,517.3
43,524.7
45,042.0
12/31/13
43,608.4
55.1
(1,172.5)
(1,117.4)
2,297.2
44,788.2
910.8
45,699.0
1,429.1
44,269.9
45,699.0
9/30/13
42,635.2
61.0
(1,097.2)
(1,036.2)
2,009.4
43,608.4
818.5
44,426.9
1,379.7
43,047.2
44,426.9
Year-to-Date
9/30/14
44,788.2
135.9
(3,804.1)
(3,668.2)
1,118.2
42,238.2
1,312.0
43,550.2
1,795.2
41,755.0
43,550.2
9/30/13
42,590.6
215.5
(3,330.2)
(3,114.7)
4,132.5
43,608.4
818.5
44,426.9
1,379.7
43,047.2
44,426.9
*Includes products in accumulation and payout phase, Policy Loans, and Life Insurance Business
Investment Information
Voya Financial
Portfolio Composition
Page 52 of 70
(in millions USD)
Composition of Investment Portfolio
Fixed maturities, available for sale, at fair value, before consolidation CLOs Adjustments (1) VOEs Adjustments (1) Fixed maturities, available for sale, at fair value, after consolidation Fixed maturities, at fair value using the fair value option Equity securities, available for sale, at fair value Short-term investments Mortgage loans on real estate Policy loans Limited partnerships/corporations, before consolidation VOEs Adjustments (1) Limited partnerships/corporations, after consolidation Derivatives Other investments Securities pledged to creditors
Total investments, after consolidation Fixed Maturity Securities—Security Sector (2)
U.S. Government agencies and authorities U.S. Corporate—Public U.S. Corporate—Private Foreign Government / Agency Foreign Corporate—Public Foreign Corporate—Private State, municipalities and political subdivisions Residential mortgaged-backed securities: CMO-B Agency CMO-B Non-Agency Agency Non-Agency (3)
Total Residential mortgage-backed securities
Commercial mortgage-backed securities Other asset-backed securities (3)
Total fixed maturities, including securities pledged (5) Fixed Maturity Securities—Contractual Maturity Dates
Due to mature:
Due in one year or less
Due after one year through five years Due after five years through ten years Due after ten years CMO-B
Mortgage-backed securities Other asset-backed securities (3)
Total fixed maturities, including securities pledged Fixed Maturity Securities—NAIC Quality Designation NAIC Quality Designation
1 2 3 4 5 6
Total fixed maturities, including securities pledged (4) (5) Fixed Maturity Securities—ARO Quality Rating ARO Quality Rating
AAA AA A BBB BB
B and below
Total fixed maturities, including securities pledged (5)
Balances as of
9/30/14
Amount
70,180.5 (43.2) 18.4 70,155.7 3,557.8 270.5 1,173.1 9,949.7 2,104.2 1,080.9 (732.7) 348.2 1,136.8 106.8 1,021.6
89,824.4
4,649.4 33,984.0 6,094.2 897.0 7,719.8 8,400.7 454.8
3,080.0 391.4 2,376.8 1,408.1
7,256.3
4,030.8 1,248.1
74,735.1
2,362.3 13,484.2 21,719.0 24,634.4 3,471.4 7,815.7 1,248.1
74,735.1
42,099.3 29,140.6 2,855.2 393.4 59.1 187.5
74,735.1
14,233.4 4,620.2 21,561.6 29,238.8 3,092.1 1,989.0
74,735.1
% of Total
78.1%
4.0%
0.3%
1.3%
11.1%
2.3%
0.4%
1.3%
0.1%
1.1%
100.0%
6.2%
45.4%
8.2%
1.2%
10.3%
11.3%
0.6%
4.1%
0.5%
3.2%
1.9%
9.7%
5.4%
1.7%
100.0%
3.2%
18.0%
29.1%
32.9%
4.6%
10.5%
1.7%
100.0%
56.3%
39.0%
3.8%
0.5%
0.1%
0.3%
100.0%
19.0%
6.2%
28.9%
39.1%
4.1%
2.7%
100.0%
6/30/14
Amount
70,948.8
(56.9)
32.4
70,924.3
3,538.7
273.5
775.9
9,491.4
2,113.7
1,036.9
(693.0)
343.9
1,094.6
120.2
1,145.1
89,821.3
5,231.4
34,203.7
6,025.6
927.9
7,649.0
8,440.0
367.0
3,017.5
419.2
2,544.7
1,465.3
7,446.7
3,911.1
1,405.7
75,608.1
2,244.1
14,196.3
21,912.8
24,491.4
3,436.7
7,921.1
1,405.7
75,608.1
42,638.8
29,511.1
2,839.0
360.5
63.4
195.3
75,608.1
14,832.8
4,701.0
21,403.1
29,681.4
2,960.9
2,028.9
75,608.1
% of Total
78.9%
3.9%
0.3%
0.9%
10.6%
2.4%
0.4%
1.2%
0.1%
1.3%
100.0%
6.9%
45.2%
8.0%
1.2%
10.1%
11.2%
0.5%
3.9%
0.6%
3.4%
1.9%
9.8%
5.2%
1.9%
100.0%
3.0%
18.8%
29.0%
32.3%
4.5%
10.5%
1.9%
100.0%
56.3%
39.0%
3.8%
0.5%
0.1%
0.3%
100.0%
19.6%
6.2%
28.3%
39.3%
3.9%
2.7%
100.0%
Balances as 3/31/14
Amount
70,474.0
(43.8)
19.5
70,449.7
3,082.1
276.6
1,046.2
9,258.1
2,119.7
875.0
(656.1)
218.9
1,044.7
124.1
1,271.3
88,891.4
5,907.2
33,257.9
5,915.6
907.2
7,383.6
8,449.8
293.6
3,051.7
424.2
2,735.0
1,447.4
7,658.3
3,796.1
1,233.8
74,803.1
2,032.5
14,748.5
22,070.1
23,263.8
3,475.9
7,978.5
1,233.8
74,803.1
42,124.9
29,249.6
2,772.8
407.9
59.3
188.6
74,803.1
15,506.9
4,464.3
20,474.7
29,449.9
2,858.8
2,048.5
74,803.1
% of Total
79.3%
3.5%
0.3%
1.2%
10.4%
2.4%
0.2%
1.2%
0.1%
1.4%
100.0%
8.0%
44.5%
7.9%
1.2%
9.9%
11.4%
0.4%
4.0%
0.6%
3.6%
1.9%
10.1%
5.0%
1.6%
100.0%
2.7%
19.8%
29.6%
31.2%
4.6%
10.5%
1.6%
100.0%
56.3%
39.1%
3.7%
0.5%
0.1%
0.3%
100.0%
20.7%
6.0%
27.4%
39.4%
3.8%
2.7%
100.0%
12/31/13
Amount
68,341.9
(43.0)
18.9
68,317.8
2,935.3
314.4
1,048.1
9,312.2
2,147.0
890.4
(654.0)
236.4
1,149.3
124.6
1,465.7
87,050.8
5,800.1
32,033.7
5,444.9
1,051.4
7,044.1
8,261.0
281.1
2,945.5
430.3
2,881.9
1,478.9
7,736.6
3,752.1
1,313.8
72,718.8
2,153.6
14,397.4
21,303.4
22,061.9
3,375.8
8,112.9
1,313.8
72,718.8
41,169.4
28,555.4
2,415.8
329.5
61.7
187.0
72,718.8
15,330.7
4,342.1
19,793.6
28,561.5
2,676.1
2,014.8
72,718.8
% of Total
78.4%
3.4%
0.4%
1.2%
10.7%
2.5%
0.3%
1.3%
0.1%
1.7%
100.0%
8.0%
44.0%
7.5%
1.4%
9.7%
11.4%
0.4%
4.0%
0.6%
4.0%
2.0%
10.6%
5.2%
1.8%
100.0%
3.0%
19.8%
29.3%
30.3%
4.6%
11.2%
1.8%
100.0%
56.5%
39.3%
3.3%
0.5%
0.1%
0.3%
100.0%
21.1%
6.0%
27.2%
39.2%
3.7%
2.8%
100.0%
9/30/13
Amount
69,258.8
(118.0)
30.6
69,171.4
2,910.2
279.6
2,547.3
9,015.6
2,147.5
984.3
(594.3)
390.0
1,087.4
145.7
1,312.6
89,007.3
6,336.4
32,048.9
5,362.3
1,057.5
6,982.4
8,149.1
285.0
2,882.5
449.0
3,030.0
1,587.8
7,949.3
3,867.6
1,355.7
73,394.2
2,423.9
16,036.2
20,113.5
21,648.0
3,331.5
8,485.4
1,355.7
73,394.2
41,616.0
28,315.4
2,735.2
456.9
78.2
192.5
73,394.2
15,856.2
4,518.3
19,877.9
28,383.4
2,682.6
2,075.8
73,394.2
% of Total
77.7%
3.3%
0.3%
2.8%
10.1%
2.4%
0.4%
1.3%
0.2%
1.5%
100.0%
8.6%
43.8%
7.3%
1.4%
9.5%
11.1%
0.4%
3.9%
0.6%
4.1%
2.2%
10.8%
5.3%
1.8%
100.0%
3.3%
21.8%
27.4%
29.6%
4.5%
11.6%
1.8%
100.0%
56.7%
38.6%
3.7%
0.6%
0.1%
0.3%
100.0%
21.6%
6.2%
27.1%
38.6%
3.7%
2.8%
100.0%
(1) Adjustments include the elimination of intercompany transactions between the Company and its consolidated investment entities, primarily the elimination of the Company’s equity at risk recorded as investments by the Company (before consolidation) against either equity (private equity and real estate partnership funds) or senior and subordinated debt (CLOs) of the funds.
(2) Fixed Maturity Securities includes fixed maturities,available for sale , fixed maturities at fair value using the fair value option and securities pledged to creditors. (3) Subprime asset-backed securities are included as a component of Non-Agency RMBS under this presentation.
(4) ARO ratings do not directly translate into NAIC ratings.
(5) Includes fixed maturities securities related to businesses exited through reinsurance. Refer to page in “Additional Information” section.
Voya Financial Portfolio Results
Page 53 of 70
(in millions USD)
Operating investment income and annualized yield (5)
Fixed maturity securities (1) Equity securities Mortgage loans Limited partnerships Policy loans Short-term investments (1) Derivatives Pre-payment fee income Other assets
Gross investment income before expenses and fees
Expenses and fees
Total investment income and annualized yield
Less: Closed Block Variable Annuity (CBVA) investment income net of expenses and fees
Total investment income, excluding CBVA
Trading Gains/Losses (5)
Fixed maturities Equity securities Mortgage loans Other investments
Total Trading Gains/Losses, excluding CBVA
Impairments (5)
Fixed maturities Equity securities Mortgage loans Other investments
Total Impairments, excluding CBVA
Fair Value Adjustments (2)
Derivatives, including Change in Fair Value of Derivatives related to Guaranteed Benefits, excluding CBVA
Net Realized Investment Gains (losses) and Net Guaranteed Benefit Hedging Gains (losses), excluding CBVA (5)
CBVA Investment Income and Realized Capital Gains (Losses) Businesses exited through reinsurance (3) Consolidation/eliminations (4) Total Investment Income and Realized Capital Gains (Losses)
Three Months Ended
9/30/14
Net Investment Income
Income
836.4 2.3 119.2 47.4 27.9 0.9 3.5 31.6 3.1
1,072.3
(41.9)
1,030.4
43.0
987.4
15.9 0.1 (0.1) (10.1)
5.8
(7.0) —-
(7.0) 6.6 90.9
96.3
265.1
(1.4) (2.8) 1,344.6
Annualized Yield
Yield
5.04% 3.38% 5.04% 19.20% 5.45% 0.17% N/A
0.15% N/A
5.28%
-0.21%
5.07%
6/30/14
Net Investment Income
827.5
Income
827.5
3.6 114.8 36.2 27.5
0.7
1.7 21.4 (2.2)
1,031.2
(39.7)
991.5
38.9
952.6
(0.4)
0.7 -29.5
29.8
(2.4) — — -
(2.4) 64.9 (49.5)
42.8
(300.5)
62.9
(3.4)
754.4
Annualized Yield
Annualized Yield
4.99% 5.68% 5.03% 14.98% 5.34% 0.17% N/A
0.10% N/A
5.12%
-0.20%
4.92%
Net Investment Income
843.8
3.8 114.4 31.4 28.0
0.8
1.3
7.5
5.5
1,036.5
(40.3)
996.2
34.8
961.4
16.1 18.1
0.4 (1.0)
33.6
(2.3)
(1.0) — -
(3.3) 59.7 (64.1)
25.9
(86.3)
16.4 37.6 955.0
Annualized Yield
Yield
5.02% 5.59% 5.06% 15.46% 5.42% 0.13% N/A
0.04% N/A
5.07%
-0.20%
4.87%
12/31/13
Net Investment Income
Income
839.4
3.5 114.2 61.5 29.2
0.8 (6.8) 25.9
8.3
1,076.0
(40.7)
1,035.3
29.5
1,005.8
62.7 -
0.1 (3.2)
59.6
(13.1)
— — -
(13.1) 42.6 15.5
104.6
(531.3)
(12.3) 12.7 579.5
Annualized Yield
Yield
4.98% 4.54% 5.18% 31.85% 5.58% 0.16% N/A
0.12% N/A
5.28%
-0.21%
5.07%
9/30/13
Net Investment Income
824.1 3.4 112.8 116.1 29.5 0.8 (2.2) 14.6 23.6
1,122.7
(39.5)
1,083.2
28.8
1,054.4
36.0 0.6 0.2 4.3
41.1
(2.3) (1.2) -(0.7)
(4.2) 19.6 17.8
74.3
(434.2)
(15.6) 25.6 704.5
Annualized Yield
Annualized Yield
4.88% 4.96% 5.13% 60.40% 5.66% 0.12% N/A
0.07% N/A
5.47%
-0.19%
5.28%
Year to Date
9/30/14
Net Investment Income
Net Investment Income
2,507.7 9.7 348.4 115.0 83.4 2.4 6.5 60.5 6.4
3,140.0
(121.9)
3,018.1
116.7
2,901.4
31.6 18.9 0.3 18.4
69.2
(11.7) (1.0)
— -
(12.7) 131.2 (22.7)
165.0
(121.7)
77.9 31.4 3,054.0
Annualized Yield
Annualized Yield
5.02% 4.92% 5.04% 16.64% 5.41% 0.16% N/A
0.10% N/A
5.16%
-0.21%
4.95%
Net Investment Income
Investment Income
2,510.7 6.5 341.8 167.1 89.1 2.7 (23.1) 65.9 30.4
3,191.1
(121.0)
3,070.1
68.1
3,002.0
47.8 0.7
— 2.9
51.4
(18.7)
(3.0) — (0.7)
(22.4) (68.3) 190.5
151.2
(1,579.7)
(97.0) 98.2 1,574.7
9/30/13
Annualized Yield
5.05% 3.15% 5.25% 24.61% 5.64% 0.13% N/A
0.11% N/A
5.25%
-0.20%
5.05%
(1) Operating income from CMO-B portfolio assets, including derivatives, is included in fixed maturity securities.
(2) Fair value adjustments include adjustments related to CMO-B assets carried at fair value, among other income sources.
(3) Income related to reinsurance transactions, in which investment results are passed directly to the reinsurers pursuant to contracted terms of the reinsurance agreement. (4) Consolidation/eliminations includes:
-The impact of consolidation of investment entities into the Consolidated Statements of Operations, net of the elimination of the Company’s management fees expensed by the funds and recorded as operating revenues (before consolidation) by the Company; -The elimination of intersegment expenses, primarily consisting of asset-based management and administration fees charged by our Investment Management Segment; -Other intersegment eliminations.
(5) Investment results related to businesses exited through reinsurance are excluded.
Voya Financial
Alternative Investment Income
Page 54 of 70
(in millions USD)
Retirement
Average alternative investments Alternative investment income
Annuities
Average alternative investments Alternative investment income
Investment Management
Average alternative investments Alternative investment income
Individual Life
Average alternative investments Alternative investment income
Employee Benefits
Average alternative investments Alternative investment income
Total Ongoing Business
Average alternative investments Alternative investment income
Corporate
Average alternative investments Alternative investment income
Closed Blocks (1)
Average alternative investments Alternative investment income
Total Consolidated(2)
Average alternative investments Alternative investment income
Three Months Ended
9/30/14
346.0 12.8
214.4 10.3
145.6
9.0
156.0
8.2
33.2
1.5
895.2 41.8
108.0
3.7
38.0
1.6
1,041.2 47.1
6/30/14
288.5
7.0
190.4
5.4
146.9
8.0
135.3
4.1
27.0
0.7
788.1 25.2
106.0
4.2
35.0
1.3
929.1 30.7
Three Months
3/31/14
266.7
7.1
179.3
6.4
141.7
7.3
123.9
5.5
24.1
0.8
735.7
27.1
103.7
5.0
29.8
1.1
869.2
33.2
12/31/13
264.8 12.6
170.9
9.1
127.1 10.0
125.5
7.1
24.5
1.4
712.8 40.2
101.6
7.2
51.7
3.0
866.1 50.4
9/30/13
267.1
7.5
171.5
4.5
124.2
4.9
127.7
3.4
25.1
0.8
715.6 21.1
95.8
4.8
58.8
2.5
870.2 28.4
Year-to-Date
9/30/14
300.4
26.9
194.7
22.1
144.7
24.3
138.4
17.8
28.1
3.0
806.3
94.1
105.9
12.9
34.2
4.0
946.4
111.0
9/30/13
261.0
23.8
179.8
16.5
122.9
13.8
132.9
13.1
24.8
2.5
721.4
69.7
96.5
1.8
60.2
6.7
878.1
78.2
(1) Our Closed Block Variable Annuity segment is managed to focus on protecting regulatory and rating agency capital rather than achieving operating metrics and, therefore, its results of operations are not reflected within investment income.
(2) Alternative investment income excludes the net investment income from Lehman Recovery/LIHTC in the 6/30/14, 3/31/14, 12/31/13 and 9/30/13 periods.
Voya Financial
Unrealized Gains (Losses)
Page 55 of 70
(in millions USD)
Fixed Maturities, available for sale (including securities pledged) Aging Schedule
Less than 20%
20% or more for less than six months 20% or more for six months or greater
Total Unrealized Loss Total Unrealized Gain Net Unrealized Gain/Loss
Fixed Maturities Securities—Security Sector—Net Unrealized Gain/(Loss)*
US Treasuries and US government agencies and authorities US Corporate—Public US Corporate—Private Foreign Government / Agency Foreign Corporate—Public Foreign Corporate—Private State, municipalities, and political subdivisions Residential mortgaged-backed securities: CMO-B Agency CMO-B Non-Agency Agency Non-Agency
Total Residential mortgage-backed securities
Commercial Mortgage-Backed Securities Other Asset-Backed Securities*
Total Net Unrealized Gain/Loss
Balances as of
9/30/14
Amount
(344.5) (0.6) (4.0)
(349.1) 5,591.4 5,242.3
% of Total
98.7% 0.2% 1.1%
100.0%
6/30/14
Amount
(282.1) (0.5) (6.4)
(289.0) 6,266.5 5,977.5
% of Total
97.6% 0.2% 2.2%
100.0%
3/31/14
Amount % of Total
(587.6)
(8.5)
(7.8)
(603.9)
5,363.6
4,759.7
97.3%
1.4%
1.3%
100.0%
12/31/13
Amount
(1,087.3) (18.6) (30.6)
(1,136.5) 4,301.8 3,165.3
% of Total
95.7% 1.6% 2.7%
100.0%
9/30/13
Amount
(992.6) (47.3) (29.1)
(1,069.0) 4,594.2 3,525.2
% of Total
92.9% 4.4% 2.7%
100.0%
466.6 2,462.4 372.6 34.4 454.2 551.0 20.0
365.7 116.1 27.8 78.7
588.3
269.3 23.5
5,242.3
466.6 2,462.4 372.6 34.4 454.2 551.0 20.0
365.7 116.1 27.8 78.7
588.3
269.3 23.5
5,242.3
450.1 2,818.5 458.6
44.0 563.6 648.6
22.3
392.6 123.6
33.6
74.6
624.4
314.9
32.5
5,977.5
305.0 2,121.0 393.7 20.9 393.1 580.4 17.1
385.5 119.5 5.3 62.4
572.7
323.3 32.5
4,759.7
108.1 1,173.7
294.6 7.4 228.2 459.5 9.1
376.5 118.1 (7.5) 36.7
523.8
324.2 36.7
3,165.3
255.7 1,238.2 354.2 11.9 202.9 509.1 11.0
397.0 115.5 13.1 13.1
538.7
358.3 45.2
3,525.2
Voya Financial
Asset Backed Securities
Page 56 of 70
(in millions USD)
RMBS Balances by Collateral Type
Prime Agency Prime / Non-Agency Alt-A RMBS
Subprime Mortgage-Backed Securities
Total
Balances as of
9/30/14
Fair Value
5,448.6 906.2 325.7 575.8
7,256.3
Amortized Cost
4,979.8 761.1 269.1 539.8
6,549.8
6/30/14
Fair Value
5,554.0 959.6 337.7 595.4
7,446.7
Fair Value
5,554.0 959.6 337.7 595.4
7,446.7
3/31/14
Fair Value
5,777.9 904.0 353.3 623.1
7,658.3
Amortized Cost
5,310.9 750.2 297.7 603.7
6,962.5
12/31/13
Fair Value
5,826.0 933.7 353.5 623.4
7,736.6
Amortized Cost
5,377.7 786.5 307.4 614.7
7,086.3
9/30/13
Fair Value
5,911.2 1,021.6 358.8 657.7
7,949.3
Amortized Cost
5,410.4 872.1 326.0 657.5
7,266.0
CMBS Balances by Year of Origination
2014 2013 2012 2010 2008 2007 2006
2005 and prior
Total
Balances as of
9/30/14
Fair Value
384.2 427.2 11.0 8.4 11.1 1,131.0 1,186.7 871.2
4,030.8
Amortized Cost
377.1 411.5 10.7 8.2 9.4 1,013.8 1,097.5 833.3
3,761.5
6/30/14
Fair Value
181.4 390.6 11.1 8.3 11.4 1,150.0 1,216.1 942.2
3,911.1
Amortized Cost
176.8 375.1 10.7 8.3 9.5 1,016.6 1,107.3 891.9
3,596.2
3/31/14
Fair Value
52.5 341.6 9.0 7.9 11.4 1,148.2 1,238.9 986.6
3,796.1
Amortized Cost
52.6 337.7 8.9 8.0 9.3 1,014.2 1,116.9 925.2
3,472.8
12/31/13
Fair Value
— 197.2 8.8 — 11.4 1,148.1 1,252.7 1,133.9
3,752.1
Amortized Cost
— 200.4 8.9 — 9.3 1,017.8 1,127.4 1,064.1
3,427.9
9/30/13
Fair Value
— — — — 11.5 1,264.7 1,338.8 1,252.6
3,867.6
Amortized Cost
— — — — 9.3 1,123.6 1,201.6 1,174.8
3,509.3
Other ABS Balances by Loan Classification
Credit Card Receivables Automobile Receivables CLO’s * Other
Total
* Excludes consolidated CLO’s
Balances as of
9/30/14
Fair Value
662.9 279.3 69.9 236.0
1,248.1
Amortized Cost
648.1 278.9 67.9 229.7
1,224.6
6/30/14
Fair Value
638.4 424.5 83.1 259.7
1,405.7
Amortized Cost
619.0 423.5 79.7 251.0
1,373.2
Balances as 3/31/14
Fair Value
576.4 384.4 26.2 246.8
1,233.8
Amortized Cost
558.0 383.6 22.9 236.8
1,201.3
12/31/13
Fair Value
558.1 447.9 41.7 266.1
1,313.8
Amortized Cost
538.5 447.1 36.6 254.9
1,277.1
9/30/13
Fair Value
552.8 471.3 49.5 282.1
1,355.7
Amortized Cost
529.4 470.2 48.9 268.8
1,317.3
Voya Financial
RMBS Securities Summary
Page 57 of 70
(in millions USD)
RMBS(1)
By Rating and Origination Year As of September 30, 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 5,434.6 4,964.4 630.2 563.6 256.7 211.2 431.0 384.7 6,752.5 6,123.9
2 —— 53.6 52.7 28.5 27.5 90.7 97.7 172.8 177.9
3 8.5 9.9 27.3 25.3 24.3 22.1 31.6 34.0 91.7 91.3
4 5.5 5.5 3.1 0.6 13.7 6.2 15.0 17.1 37.3 29.4
5 —— 45.1 32.0 —— 5.5 3.5 50.6 35.5
6 —— 146.9 86.9 2.5 2.1 2.0 2.8 151.4 91.8
Total by rating (2) 5,448.6 4,979.8 906.2 761.1 325.7 269.1 575.8 539.8 7,256.3 6,549.8
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 5,417.1 4,945.9 8.9 8.9 0.2 0.2 1.4 1.4 5,427.6 4,956.4
AA 2.8 2.7 24.1 22.4 —— 2.2 2.2 29.1 27.3
A 4.4 4.4 29.8 28.2 3.1 2.8 26.6 27.2 63.9 62.6
BBB —— 99.3 96.0 13.3 13.5 29.0 29.6 141.6 139.1
BB 8.5 9.9 61.4 55.9 18.6 18.2 47.2 51.3 135.7 135.3
B and below 15.8 16.9 682.7 549.7 290.5 234.4 469.4 428.1 1,458.4 1,229.1
Total by rating (2) 5,448.6 4,979.8 906.2 761.1 325.7 269.1 575.8 539.8 7,256.3 6,549.8
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 173.1 172.3 —————— 173.1 172.3
2013 715.6 709.5 —————— 715.6 709.5
2012 768.9 775.5 —————— 768.9 775.5
2011 991.4 972.0 —————— 991.4 972.0
2010 667.1 646.7 22.4 21.5 ———— 689.5 668.2
2009 253.4 251.1 8.5 8.6 ———— 261.9 259.7
2008 143.8 131.5 —————— 143.8 131.5
2007 341.5 306.4 160.2 148.4 70.2 58.8 172.2 151.1 744.1 664.7
2006 409.5 300.9 259.2 184.1 88.0 59.0 156.8 138.8 913.5 682.8
2005 and prior 984.3 713.9 455.9 398.5 167.5 151.3 246.8 249.9 1,854.5 1,513.6
Total by origination year 5,448.6 4,979.8 906.2 761.1 325.7 269.1 575.8 539.8 7,256.3 6,549.8
(1) Subprime mortgage-backed securities are included in RMBS under this presentation.
(1) Subprime mortgage-backed securities are included in RMBS under this presentation.
(2) Includes fixed maturities securities related to businesses exited through reinsurance. Refer to page in “Additional Information” section.
Voya Financial
CMBS and Other Asset-Backed Securities Summary
Page 58 of 70
(in millions USD)
CMBS
By Rating and Vintage As of September 30, 2014
As of September 30, 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 384.2 377.1 —————————— 384.2 377.1
2013 427.2 411.5 —————————— 427.2 411.5
2012 11.0 10.7 —————————— 11.0 10.7
2010 8.1 7.9 0.3 0.3 ———————— 8.4 8.2
2008 ———————— 11.1 9.4 —— 11.1 9.4
2007 131.4 122.0 267.1 245.8 153.7 142.1 147.0 118.5 274.8 256.1 157.0 129.3 1,131.0 1,013.8
2006 604.2 574.7 99.6 93.2 148.9 139.1 208.6 191.1 96.5 76.3 28.9 23.1 1,186.7 1,097.5
2005 and prior 479.9 470.6 156.2 151.0 117.0 112.2 67.2 62.4 37.2 29.4 13.7 7.7 871.2 833.3
Total by origination year 2,046.0 1,974.5 523.2 490.3 419.6 393.4 422.8 372.0 419.6 371.2 199.6 160.1 4,030.8 3,761.5
Other Asset-Backed Securities* By Rating and Classification As of September 30, 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 641.6 627.1 279.3 278.9 —— 188.8 182.1 1,109.7 1,088.1
AA ———— 32.3 30.3 7.1 7.6 39.4 37.9
A 21.3 21.0 —— 37.6 37.6 17.1 17.5 76.0 76.1
BBB —————— 22.7 22.2 22.7 22.2
BB —————— 0.2 0.2 0.2 0.2
B and below —————— 0.1 0.1 0.1 0.1
Total by rating 662.9 648.1 279.3 278.9 69.9 67.9 236.0 229.7 1,248.1 1,224.6
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
1 662.9 648.1 279.3 278.9 69.9 67.9 213.0 207.2 1,225.1 1,202.1
2 —————— 22.7 22.2 22.7 22.2
3 —————— 0.2 0.2 0.2 0.2
4 ————————— -
5 ————————— -
6 —————— 0.1 0.1 0.1 0.1
Total by rating 662.9 648.1 279.3 278.9 69.9 67.9 236.0 229.7 1,248.1 1,224.6
* 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
Mortgage Loans on Real Estate
Page 59 of 70
(in millions USD)
Mortgage Loans on Real Estate by Region and Property Type
Balances as of
9/30/14 6/30/14 3/31/14 12/31/13 9/30/13
U.S. Region Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total
Pacific 2,490.9 25.0% 2,339.7 24.6% 2,369.2 25.6% 2,281.8 24.5% 2,054.5 22.7%
South Atlantic 2,031.3 20.4% 2,032.9 21.4% 1,964.6 21.2% 1,936.0 20.8% 1,851.4 20.5%
Middle Atlantic 1,355.1 13.6% 1,201.8 12.7% 1,113.2 12.0% 1,112.0 11.9% 1,107.2 12.3%
East North Central 1,190.5 12.0% 1,124.2 11.8% 1,055.6 11.4% 1,037.5 11.1% 962.7 10.7%
West South Central 1,101.6 11.1% 1,134.3 11.9% 1,112.7 12.0% 1,122.3 12.0% 1,232.9 13.7%
Mountain 837.8 8.4% 809.2 8.5% 771.7 8.3% 790.4 8.5% 749.7 8.3%
West North Central 528.4 5.3% 509.6 5.4% 525.6 5.7% 517.2 5.6% 519.4 5.8%
New England 182.3 1.8% 147.9 1.6% 150.2 1.6% 318.1 3.4% 318.9 3.5%
East South Central 235.2 2.4% 195.1 2.1% 198.7 2.2% 200.7 2.2% 222.9 2.5%
Total Commercial Mortgage Loans (1) 9,953.1 100.0% 9,494.7 100.0% 9,261.5 100.0% 9,316.0 100.0% 9,019.6 100.0%
Property Type
Industrial 2,769.3 27.8% 2,731.2 28.7% 2,818.6 30.4% 2,848.0 30.6% 2,998.0 33.3%
Retail 3,190.4 32.1% 2,949.1 31.0% 2,951.0 31.9% 2,936.9 31.5% 2,795.9 31.0%
Office 1,226.3 12.3% 1,193.3 12.6% 1,089.0 11.7% 1,242.2 13.3% 1,243.3 13.8%
Apartments 1,582.2 15.9% 1,440.5 15.2% 1,348.7 14.6% 1,296.1 13.9% 1,048.6 11.6%
Hotel/Motel 390.3 3.9% 414.2 4.4% 382.1 4.1% 430.6 4.6% 364.1 4.0%
Other 446.8 4.5% 416.7 4.4% 366.3 4.0% 378.1 4.1% 382.3 4.2%
Mixed Use 347.8 3.5% 349.7 3.7% 305.8 3.3% 184.1 2.0% 187.4 2.1%
Total Commercial Mortgage Loans (1) 9,953.1 100.0% 9,494.7 100.0% 9,261.5 100.0% 9,316.0 100.0% 9,019.6 100.0%
Loan Size
Under $5 million 1,415.3 14.2% 1,439.6 15.2% 1,507.8 16.3% 1,516.5 16.3% 1,546.5 17.1%
$5 million but less than $10 million 1,548.4 15.6% 1,587.4 16.7% 1,549.4 16.7% 1,582.2 17.0% 1,548.9 17.2%
$10 million but less than $20 million 2,262.8 22.7% 2,100.0 22.1% 1,936.7 20.9% 1,899.5 20.4% 1,746.6 19.4%
$20 million but less than $30 million 1,265.6 12.7% 1,159.5 12.2% 1,097.7 11.9% 1,077.7 11.6% 1,045.0 11.6%
$30 million and over 3,461.0 34.8% 3,208.2 33.8% 3,169.9 34.2% 3,240.1 34.7% 3,132.6 34.7%
Total Commercial Mortgage Loans (1) 9,953.1 100.0% 9,494.7 100.0% 9,261.5 100.0% 9,316.0 100.0% 9,019.6 100.0%
Other Stats as ratios
LTV—Origination 59.7% 59.3% 59.2% 59.0% 58.8%
LTV—Current 56.2% 55.8% 55.8% 55.5% 56.1%
Debt Service Coverage 1.9 1.9 2.0 2.0 1.9
Other Stats in USD millions
60+day delinq (incl in process of foreclosure)
US GAAP Book Value — — — 5.1 5.1
Allowance for loan losses 3.4 3.3 3.4 3.8 4.0
(1) Total Commercial Mortgage Loans shown do not include allowance for mortgage loan credit losses
Voya Financial
U.S. and Foreign Corporate Securities
Page 60 of 70
(in millions USD)
Summary of Corporate Securities by Industry Category
Balances as of
9/30/14 6/30/14 3/31/14 12/31/13 9/30/13
Fair Value % of Total Fair Value % of Total Fair Value % of Total Fair Value % of Total Fair Value % of Total
Type Industry
Communications 4,031.8 9.7% 4,113.4 9.8% 4,001.1 9.8% 3,835.1 9.8% 3,849.3 9.9%
Financial 7,231.8 17.3% 6,935.2 16.6% 6,641.5 16.3% 6,177.7 15.8% 5,950.3 15.2%
Industrial and other companies 22,462.8 53.8% 22,795.9 54.5% 22,240.0 54.8% 21,556.7 55.1% 21,770.6 55.8%
Public Utilities 6,869.4 16.5% 6,911.1 16.5% 6,690.3 16.5% 6,472.2 16.6% 6,439.4 16.5%
Transportation 1,108.0 2.7% 1,097.1 2.6% 1,068.6 2.6% 1,036.1 2.7% 1,021.7 2.6%
Sub-total 41,703.8 100.0% 41,852.7 100.0% 40,641.5 100.0% 39,077.8 100.0% 39,031.3 100.0%
Communications 368.1 2.5% 387.9 2.7% 340.0 2.4% 400.7 2.9% 405.2 3.0%
Financial 1,000.2 6.9% 1,013.0 7.0% 982.2 6.8% 957.0 7.0% 948.2 7.0%
Industrial and other companies 9,317.6 64.3% 9,394.6 64.9% 9,390.9 65.3% 8,706.4 63.6% 8,741.8 64.7%
Private Utilities 3,319.7 22.9% 3,226.8 22.3% 3,182.8 22.2% 3,156.2 23.0% 2,926.5 21.7%
Transportation 489.3 3.4% 443.3 3.1% 469.5 3.3% 485.6 3.5% 489.7 3.6%
Sub-total 14,494.9 100.0% 14,465.6 100.0% 14,365.4 100.0% 13,705.9 100.0% 13,511.4 100.0%
Communications 4,399.9 7.8% 4,501.3 8.0% 4,341.1 7.9% 4,235.8 8.0% 4,254.5 8.1%
Financial 8,232.0 14.6% 7,948.2 14.1% 7,623.7 13.9% 7,134.7 13.5% 6,898.5 13.1%
Industrial and other companies 31,780.4 56.7% 32,190.5 57.2% 31,630.9 57.5% 30,263.1 57.4% 30,512.4 58.1%
Total Utilities 10,189.1 18.1% 10,137.9 18.0% 9,873.1 17.9% 9,628.4 18.2% 9,365.9 17.8%
Transportation 1,597.3 2.8% 1,540.4 2.7% 1,538.1 2.8% 1,521.7 2.9% 1,511.4 2.9%
Total 56,198.7 100.0% 56,318.3 100.0% 55,006.9 100.0% 52,783.7 100.0% 52,542.7 100.0%
Voya Financial Exposure to European Debt-Fixed Maturities and Equity Securities Page 61 of 70
(in millions USD)
Exposure to Select European Countries Sovereign Debt Corporate—Financial Corporate—Non-Financial Total Total
As of September 30, 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% 269.8 3.5% 269.8 3.0% 250.4 3.0%
Italy—0.0%—0.0% 260.7 3.3% 260.7 2.9% 237.2 2.8%
Portugal—0.0%—0.0% 10.2 0.1% 10.2 0.1% 7.9 0.1%
Spain—0.0%—0.0% 214.6 2.8% 214.6 2.4% 192.5 2.3%
Total Peripheral Euro-Zone—0.0%—0.0% 755.3 9.7% 755.3 8.4% 688.0 8.2%
Austria—0.0%—0.0% 15.4 0.2% 15.4 0.2% 15.0 0.2%
Belgium 37.1 15.3%—0.0% 338.1 4.3% 375.2 4.2% 325.0 3.8%
Bulgaria 5.5 2.3%—0.0%—0.0% 5.5 0.1% 5.5 0.1%
Croatia 28.1 11.6%—0.0%—0.0% 28.1 0.3% 25.6 0.3%
Czech Republic—0.0%—0.0% 10.5 0.1% 10.5 0.1% 10.1 0.1%
Denmark—0.0%—0.0% 132.5 1.7% 132.5 1.5% 122.7 1.5%
Finland—0.0%—0.0% 18.5 0.2% 18.5 0.2% 17.0 0.2%
France—0.0% 159.6 16.1% 488.9 6.3% 648.5 7.2% 611.8 7.2%
Germany—0.0% 56.2 5.7% 647.6 8.3% 703.8 7.8% 665.3 7.9%
Hungary 6.1 2.5%—0.0%—0.0% 6.1 0.1% 6.0 0.1%
Iceland—0.0%—0.0%—0.0%—0.0%—0.0%
Kazakhstan 42.1 17.3% 1.4 0.1% 19.4 0.2% 62.9 0.7% 59.6 0.7%
Latvia 4.9 2.0%—0.0%—0.0% 4.9 0.1% 4.6 0.1%
Lithuania 34.3 14.1%—0.0%—0.0% 34.3 0.4% 30.4 0.4%
Luxembourg—0.0%—0.0% 24.0 0.3% 24.0 0.3% 23.2 0.3%
Netherlands—0.0% 189.4 19.1% 1,069.7 13.8% 1,259.1 13.8% 1,165.9 13.7%
Norway—0.0%—0.0% 295.8 3.8% 295.8 3.3% 285.8 3.4%
Russian Federation 57.1 23.4% 4.9 0.5% 87.5 1.1% 149.5 1.7% 146.4 1.7%
Slovakia 5.3 2.2%—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% 53.3 5.4% 122.1 1.6% 175.4 1.9% 164.3 1.9%
Switzerland—0.0% 208.1 20.9% 641.4 8.2% 849.5 9.3% 793.5 9.4%
Turkey 22.7 9.3%—0.0% 42.2 0.5% 64.9 0.7% 65.2 0.8%
United Kingdom—0.0% 321.0 32.2% 3,081.1 39.7% 3,402.1 37.6% 3,208.5 37.9%
Total Non-Peripheral Europe 243.2 100.0% 993.9 100.0% 7,034.7 90.3% 8,271.8 91.6% 7,756.4 91.8%
Total Europe 243.2 100.0% 993.9 100.0% 7,790.0 100.0% 9,027.1 100.0% 8,444.4 100.0%
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Additional Information
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Voya Financial Adjustments to Operating Earnings by Segment Page 63 of 70
(in millions USD) Three Months Ended Year-to-Date
9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
DAC/VOBA and other intangibles unlocking (1)
Retirement (30.4) 7.1 (11.3) 4.0 40.0 (34.6) 41.6
Annuities 17.8 6.5 3.2 26.8 39.6 27.5 56.5
Total Retirement Solutions (12.6) 13.6 (8.1) 30.8 79.6 (7.1) 98.1
Investment Management — — ——— -
Individual Life (7.1) (1.5) (7.1) (7.8) 20.2 (15.7) 12.6
Employee Benefits (1.4) (1.8) (4.6) (0.5) — (7.8) -
Total Insurance Solutions (8.5) (3.3) (11.7) (8.3) 20.2 (23.5) 12.6
Ongoing Business (21.1) 10.3 (19.8) 22.5 99.8 (30.6) 110.7
Corporate — — ——— -
Total Closed Blocks — — ——— -
Total DAC/VOBA and other intangibles unlocking (21.1) 10.3 (19.8) 22.5 99.8 (30.6) 110.7
Additional adjustments (2)
Retirement — — 0.2 12.7 — 12.7
Annuities — — 0.8 12.7 — 12.7
Total Retirement Solutions — — 1.0 25.4 — 25.4
Investment Management — — 1.7 11.5 — 11.5
Individual Life — — 3.1 36.6 — 36.6
Employee Benefits — — 0.3 4.0 — 4.0
Total Insurance Solutions — — 3.4 40.6 — 40.6
Ongoing Business — — 6.1 77.5 — 77.5
Corporate (46.8) (41.0) (48.8) (43.8) (47.6) (136.5) (132.7)
Total Closed Blocks — — (0.4) 0.6 — 0.6
Total non-recurring items and interest expense (46.8) (41.0) (48.8) (38.1) 30.5 (136.5) (54.6)
Total adjustments to operating earnings
Retirement (30.4) 7.1 (11.3) 4.2 52.7 (34.6) 54.3
Annuities 17.8 6.5 3.2 27.6 52.3 27.5 69.2
Total Retirement Solutions (12.6) 13.6 (8.1) 31.8 105.0 (7.1) 123.5
Investment Management — — 1.7 11.5 — 11.5
Individual Life (7.1) (1.5) (7.1) (4.7) 56.8 (15.7) 49.2
Employee Benefits (1.4) (1.8) (4.6) (0.2) 4.0 (7.8) 4.0
Total Insurance Solutions (8.5) (3.3) (11.7) (4.9) 60.8 (23.5) 53.2
Ongoing Business (21.1) 10.3 (19.8) 28.6 177.3 (30.6) 188.2
Corporate (46.8) (41.0) (48.8) (43.8) (47.6) (136.5) (132.7)
Total Closed Blocks — — (0.4) 0.6 — 0.6
Total adjustments to operating earnings (67.9) (30.7) (68.6) (15.6) 130.3 (167.1) 56.1
(1) | | DAC/VOBA and other intangibles unlocking excludes unlocking on net investment income from Lehman Recovery/LIHTC |
(2)Additional adjustments include impact of interest expenses and the Net gain (loss) from Lehman Recovery/LIHTC
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Voya Financial Calculation and Reconciliation of ROE and ROC Page 64 of 70
Three Months Ended Twelve Months Ended (2)
9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 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 400.8 246.3 258.1 548.1 346.6 1,453.3 600.5
Voya Financial, Inc. shareholders’ equity: end of period 14,585 14,818 14,002 13,272 12,770 14,585 13,272
Voya Financial, Inc. shareholders’ equity: average for period 14,702 14,410 13,637 13,021 12,621 13,943 13,574
GAAP Return on Equity 10.9% 6.8% 7.6% 16.8% 11.0% 10.4% 4.4%
Ongoing Business Adjusted Operating Return on Capital and Adjusted Operating Return on Equity
Ongoing Business adjusted operating earnings before income taxes 352.0 345.8 287.3 323.6 306.9 1,308.7 1,211.8
Income taxes on adjusted operating earnings (based on an assumed tax rate of 35%) (123.2) (121.0) (100.6) (113.3) (107.4) (458.1) (424.2)
Ongoing Business adjusted operating earnings after income taxes 228.8 224.8 186.7 210.3 199.5 850.6 787.6
Interest expense after-tax (1) (19.5) (19.5) (19.6) (19.9) (19.9) (78.5) (79.9)
Ongoing Business adjusted operating earnings after income taxes and interest expense 209.3 205.3 167.1 190.4 179.6 772.1 707.7
End of period capital for Ongoing Business 9,115 9,063 9,123 9,216 9,419 9,115 9,216
Average capital for Ongoing Business (2) 9,089 9,092 9,170 9,318 9,305 9,167 9,137
Average debt (based on 25% debt-to-capital ratio) (2,272) (2,273) (2,293) (2,329) (2,326) (2,292) (2,284)
Average equity for Ongoing Business 6,817 6,819 6,877 6,988 6,978 6,875 6,853
Adjusted Operating Return on Capital for Ongoing Business 10.1% 9.9% 8.2% 9.0% 8.6% 9.3% 8.6%
Adjusted Operating Return on Equity for Ongoing Business (1) 12.3% 12.0% 9.7% 10.9% 10.3% 11.2% 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)
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Voya Financial Operating Revenues by Segment Page 65 of 70
Three Months Ended Year-to-Date
(in millions USD) 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Retirement 605.7 592.9 598.5 612.4 606.9 1,797.1 1,787.0
Annuities 344.6 330.8 354.4 313.9 319.1 1,029.8 930.7
Total Retirement Solutions 950.3 923.7 952.9 926.3 926.0 2,826.9 2,717.7
Investment Management 168.3 163.2 160.5 167.1 160.1 492.0 440.6
Individual Life 679.1 699.9 692.2 692.9 717.1 2,071.2 2,099.0
Employee Benefits 345.9 342.5 338.9 316.5 316.2 1,027.3 946.0
Total Insurance Solutions 1,025.0 1,042.4 1,031.1 1,009.4 1,033.3 3,098.5 3,045.0
Ongoing Business 2,143.6 2,129.3 2,144.5 2,102.8 2,119.4 6,417.4 6,203.3
Corporate 22.9 23.6 25.3 33.6 28.8 71.8 53.8
Total Closed Blocks 25.4 24.0 25.6 27.0 30.7 75.0 109.8
Total operating revenues 2,191.9 2,176.9 2,195.4 2,163.4 2,178.9 6,564.2 6,366.9
Adjustments:
Closed Block Variable Annuity 660.6 112.1 284.6 (155.9) (66.1) 1,057.3 (570.4)
Net realized investment gains (losses) and
related charges and adjustments 48.2 67.0 49.6 129.1 39.8 164.8 28.3
Gain (loss) on change in fair value of derivatives
related to guaranteed benefits 48.2 (24.3) (23.9) (21.8) 35.1—125.8
Revenues (losses) related to business exited through
reinsurance or divestment (4.8) 66.9 19.0 (5.4) (2.9) 81.1 (70.8)
Revenues (loss) attributable to noncontrolling interests 174.9 219.1 60.8 157.1 152.9 454.8 254.1
Other adjustments to operating revenues* 72.1 80.4 85.4 97.4 97.6 237.9 260.6
Total revenue 3,191.1 2,698.1 2,670.9 2,364.0 2,435.3 8,560.1 6,394.5
* 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.
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Voya Financial Ongoing Business Sources of Earnings Reconciliation Page 66 of 70
(in millions USD) Three Months Ended Year-to-Date
9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Investment spread and other investment income:
Net investment income and net realized gains (losses)
Retirement 393.6 379.6 388.5 397.4 394.5 1,161.7 1,172.2
Annuities 282.3 275.8 270.6 283.4 295.9 828.7 866.5
Investment Management 9.0 8.0 7.3 11.7 16.4 24.3 25.3
Individual Life 226.3 215.5 219.8 224.5 258.7 661.6 691.0
Employee Benefits 29.1 27.7 26.7 29.2 32.1 83.5 88.4
Total net investment income and net realized gains (losses) 940.3 906.6 912.9 946.2 997.6 2,759.8 2,843.4
Total Ongoing Business 940.3 906.6 912.9 946.2 997.6 2,759.8 2,843.4
Adjustments:
Interest credited (539.2) (540.4) (541.9) (553.7) (553.8) (1,621.5) (1,657.3)
Other (6.6) (4.3) (9.1) (7.8) (6.4) (20.0) (24.0)
Total adjustments (545.8) (544.7) (551.0) (561.5) (560.2) (1,641.5) (1,681.3)
Ongoing investment spread and other investment income 394.5 361.9 361.9 384.7 437.4 1,118.3 1,162.1
Fee based margin:
Fee income
Retirement 193.5 192.9 191.1 196.1 191.0 577.5 563.8
Annuities 15.0 14.2 13.2 12.2 11.8 42.4 32.9
Investment Management 149.5 147.1 145.8 141.4 135.4 442.4 389.4
Individual Life 269.3 285.5 283.6 278.5 278.4 838.4 835.2
Employee Benefits 23.9 14.7 15.6 15.9 15.5 54.2 47.1
Total Fee Income 651.2 654.4 649.3 644.1 632.1 1,954.9 1,868.4
Other revenue
Retirement 17.9 17.0 18.2 18.2 20.7 53.1 46.0
Annuities 4.6 5.3 4.5 3.9 3.9 14.4 9.3
Investment Management 9.8 8.1 7.4 14.0 8.3 25.3 25.9
Individual Life 4.4 7.2 5.1 4.6 5.3 16.7 20.2
Employee Benefits (0.8) (2.7) 0.3 (1.0) (1.0) (3.2) (3.0)
Total other revenue 35.9 34.9 35.5 39.7 37.2 106.3 98.4
Total Ongoing Business 687.1 689.3 684.8 683.8 669.3 2,061.2 1,966.8
Adjustments:
Surrender fees and MVA charges (8.2) (7.1) (7.8) (6.5) (10.6) (23.1) (23.4)
Insurance Solutions FAS 97 fees and unearned revenue reserve amortization/unlocking (287.4) (294.1) (291.7) (288.9) (288.3) (873.2) (862.6)
Other (1.7) (2.8) (4.1) 0.3 (0.7) (8.6) (3.3)
Total adjustments (297.3) (304.0) (303.6) (295.1) (299.6) (904.9) (889.3)
Ongoing fee based margin 389.8 385.3 381.2 388.7 369.7 1,156.3 1,077.5
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Voya Financial Ongoing Business Sources of Earnings Reconciliation Page 67 of 70
(in millions USD) Three Months Ended Year-to-Date
9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Net underwriting gain (loss) and other revenue:
Premiums
Retirement 0.7 3.4 0.7 0.7 0.7 4.8 5.0
Annuities 42.7 35.5 66.1 14.4 7.5 144.3 22.0
Investment Management — — — -
Individual Life 179.1 191.7 183.7 185.3 174.7 554.5 552.6
Employee Benefits 293.7 302.8 296.3 272.4 269.6 892.8 813.5
Total premiums 516.2 533.4 546.8 472.8 452.5 1,596.4 1,393.1
Interest credited and other policyholder benefits
Retirement (209.4) (209.3) (210.7) (218.2) (213.5) (629.4) (630.2)
Annuities (204.1) (197.4) (229.8) (180.4) (182.2) (631.3) (550.5)
Investment Management — — — -
Individual Life (632.8) (499.3) (527.8) (518.8) (468.7) (1,659.9) (1,482.7)
Employee Benefits (235.7) (239.6) (244.5) (223.9) (223.7) (719.8) (679.5)
Total interest credited and other policyholder benefits (1,282.0) (1,145.6) (1,212.8) (1,141.3) (1,088.1) (3,640.4) (3,342.9)
Total Ongoing Business (765.8) (612.2) (666.0) (668.5) (635.6) (2,044.0) (1,949.8)
Adjustments:
Interest credited 539.2 540.4 541.9 553.7 553.8 1,621.5 1,675.3
Surrender fees and MVA charges 8.2 7.1 7.8 6.5 10.6 23.1 23.4
Insurance Solutions FAS 97 fees and unearned revenue reserve amortization/unlocking 297.5 293.9 288.0 289.6 297.8 879.4 869.9
Sales inducements amortization and unlocking 4.8 7.6 8.3 6.4 6.1 20.7 28.2
FAS 113 and SOP 03-1 amortization and unlocking 113.5 0.4 6.7 6.6 (23.1) 120.6 (9.5)
Other (15.9) (17.8) (13.1) (13.6) (10.7) (46.8) (36.6)
Total adjustments 947.3 831.6 839.6 849.2 834.5 2,618.5 2,532.7
Ongoing net underwriting gain (loss) and other revenue 181.5 219.4 173.6 180.7 198.9 574.5 582.9
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Voya Financial Ongoing Business Sources of Earnings Reconciliation Page 68 of 70
(in millions USD) Three Months Ended Year-to-Date
9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 9/30/14 9/30/13
Administrative expenses and trail commissions:
Operating and interest expense
Retirement (208.6) (217.3) (226.0) (220.1) (205.8) (651.9) (619.8)
Annuities (34.8) (36.6) (35.5) (32.1) (31.7) (106.9) (94.9)
Investment Management (109.7) (108.3) (110.7) (114.2) (106.1) (328.7) (315.4)
Individual Life (88.7) (91.3) (95.7) (88.9) (83.9) (275.7) (270.5)
Employee Benefits (60.9) (60.9) (68.4) (57.1) (58.5) (190.2) (179.0)
Total operating and interest expense (502.7) (514.4) (536.3) (512.4) (486.0) (1,553.4) (1,479.6)
Total Ongoing Business (502.7) (514.4) (536.3) (512.4) (486.0) (1,553.4) (1,479.6)
Adjustments:
Other 24.7 25.4 26.2 21.9 17.9 76.3 63.0
Total adjustments 24.7 25.4 26.2 21.9 17.9 76.3 63.0
Ongoing administrative expenses and trail commissions (478.0) (489.0) (510.1) (490.5) (468.1) (1,477.1) (1,416.6)
DAC/VOBA and other intangibles amortization and unlocking:
Net amortization of DAC/VOBA
Retirement (70.5) (30.5) (46.9) (35.5) (0.3) (147.9) (79.8)
Annuities (27.4) (32.6) (34.3) (18.2) (8.4) (94.3) (74.7)
Investment Management — —— — -
Individual Life 82.2 (45.9) (37.6) (38.2) (47.5) (1.3) (138.0)
Employee Benefits (12.3) (4.2) (9.1) (5.0) (4.9) (25.6) (11.9)
Total net amortization of DAC/VOBA (28.0) (113.2) (127.9) (96.9) (61.1) (269.1) (304.4)
Total Ongoing Business (28.0) (113.2) (127.9) (96.9) (61.1) (269.1) (304.4)
Adjustments
Sales inducements amortization and unlocking (4.8) (7.6) (8.3) (6.4) (6.1) (20.7) (28.2)
FAS 113 and SOP 03-1 amortization and unlocking (113.5) (0.4) (6.7) (6.6) 23.1 (120.6) 9.5
Unearned revenue reserve amortization and unlocking (10.1) 0.2 3.7 (0.7) (9.5) (6.2) (7.3)
Other (0.2) (0.5) 0.1 (0.8) (0.1) (0.6) 0.9
Total adjustments (128.6) (8.3) (11.2) (14.5) 7.4 (148.1) (25.1)
Ongoing DAC/VOBA and other intangibles amortization and unlocking (156.6) (121.5) (139.1) (111.4) (53.7) (417.2) (329.5)
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Voya Financial Fixed Maturity Securities—Businesses Exited Through Reinsurance Page 69 of 70
(in millions USD)
Total investments, after consolidation (See Portfolio Composition page), include the
following amounts related to businesses exited through reinsurance:
Balances as of
9/30/14 6/30/14 3/31/14 12/31/13 9/30/13
Fixed Maturity Securities—Businesses Exited Through Reinsurance
Security Sector
U.S. Government agencies and authorities 64.7 73.3 86.1 73.9 52.1
U.S. Corporate—Public 1,379.4 1,437.7 818.8 838.8 861.2
Foreign Government / Agency — — 3.4
Foreign Corporate—Public 216.1 225.9 135.6 132.6 137.8
State, municipalities and political subdivisions 109.2 108.8 107.1 102.6 104.1
Residential mortgaged-backed securities:
Agency 73.3 77.4 81.2 90.2 97.2
Non—Agency 102.9 100.6 0.9 1.1 1.2
Total Residential mortgage-backed securities 176.2 178.0 82.1 91.3 98.4
Commercial mortgage-backed securities 95.8 109.7 88.2 91.4 94.3
Other asset-backed securities 94.0 95.6 17.8 18.1 18.5
Total fixed maturities, including securities pledged 2,135.4 2,229.0 1,335.7 1,348.7 1,369.8
Fixed Maturity Securities—Businesses Exited Through Reinsurance as of September 30, 2014
By ARO Rating
Total AAA AA A BBB BB B & Below
Residential mortgaged-backed securities:
Agency 73.3 73.3 —— —
Non—Agency 102.9 ——0.5 0.2 102.2
Total Residential mortgage-backed securities 176.2 73.3 — 0.5 0.2 102.2
Commercial mortgage-backed securities 95.8 43.8 4.4 14.0 20.8 5.9 6.9
Other asset-backed securities 94.0 16.8 23.7 40.7 12.8 —
Total Structured securities 366.0 133.9 28.1 54.7 34.1 6.1 109.1
Non-structured securities 1,769.4 109.1 194.7 882.8 582.7 0.1 -
Total fixed maturities securities 2,135.4 243.0 222.8 937.5 616.8 6.2 109.1
Fixed Maturity Securities—Businesses Exited Through Reinsurance as of June 30, 2014
By ARO Rating
Total AAA AA A BBB BB B & Below
Residential mortgaged-backed securities:
Agency 77.4 77.4 —— —
Non—Agency 100.6 ——0.6 0.3 99.7
Total Residential mortgage-backed securities 178.0 77.4 — 0.6 0.3 99.7
Commercial mortgage-backed securities 109.7 55.7 5.1 14.2 21.5 6.2 7.0
Other asset-backed securities 95.6 17.2 24.2 41.1 13.1 —
Total Structured securities 383.3 150.3 29.3 55.3 35.2 6.5 106.7
Non-structured securities 1,845.7 118.0 212.4 937.2 578.0 0.1 -
Total fixed maturities securities 2,229.0 268.3 241.7 992.5 613.2 6.6 106.7
Fixed Maturity Securities—Businesses Exited Through Reinsurance as of September 30, 2014
By NAIC Designation
Total 1 2 3 4 5 6
Residential mortgaged-backed securities:
Agency 73.3 73.3 —— —
Non—Agency 102.9 91.3 11.6 — —
Total Residential mortgage-backed securities 176.2 164.6 11.6 — —
Commercial mortgage-backed securities 95.8 75.2 14.7 5.9— —
Other asset-backed securities 94.0 81.2 12.8 — —
Total Structured securities 366.0 321.0 39.1 5.9— —
Non-structured securities 1,769.4 1,186.6 582.7 0.1— —
Total fixed maturities securities 2,135.4 1,507.6 621.8 6.0— —
Fixed Maturity Securities—Businesses Exited Through Reinsurance as of June 30, 2014
By NAIC Designation
Total 1 2 3 4 5 6
Residential mortgaged-backed securities:
Agency 77.4 77.4 —— —
Non—Agency 100.6 88.6 12.0 — —
Total Residential mortgage-backed securities 178.0 166.0 12.0 — —
Commercial mortgage-backed securities 109.7 88.2 15.3 6.2— —
Other asset-backed securities 95.6 82.5 13.1 — —
Total Structured securities 383.3 336.7 40.4 6.2— —
Non-structured securities 1,845.7 1,267.6 578.0 0.1— —
Total fixed maturities securities 2,229.0 1,604.3 618.4 6.3— —
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VOYA FINANCIALTM
Voya Financial Ratings Page 70 of 70
A.M. Best Fitch Standard & Poor’s Moody’s
Insurance Financial Strength Ratings
Voya Retirement Insurance and Annuity Company A A- A- A3
Voya Insurance and Annuity 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)
Voya 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
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