Segments

The Company provides its principal products and services in two ongoing businesses and reports results through five ongoing segments as follows:



Business		Segment
Retirement and Investment Solutions		Retirement Annuities Investment Management
Insurance Solutions		Individual Life Employee Benefits

The Company also has a Corporate segment, which includes the financial data not directly related to the businesses, and Closed Block segments, which are comprised of non-strategic products that are in run-off and no longer being actively marketed and sold.

These segments reflect the manner by which the Company’s chief operating decision maker views and manages the business. The following is a brief description of these segments, as well as Corporate and Closed Block segments.

Retirement and Investment Solutions

The Retirement and Investment Solutions business provides its products and services through three segments: Retirement, Annuities and Investment Management. The Retirement segment provides tax-deferred, employer-sponsored retirement savings plans and administrative services to corporate, education, healthcare, other non-profit and government entities, as well as individual retirement accounts ("IRAs"), other retail financial products and comprehensive financial services to individual customers. The Annuities segment primarily provides fixed, indexed and structured annuities, tax-qualified mutual fund custodial products and payout annuities for pre-retirement wealth accumulation and postretirement income management sold through multiple channels. The Investment Management segment provides investment products and retirement solutions across a broad range of geographies, market sectors, investment styles and capitalization spectrums. Products and services are offered to institutional clients, including public, corporate and union retirement plans, endowments and foundations and insurance companies, as well as individual investors and general accounts of the Company's insurance subsidiaries and are distributed through the Company's direct sales force, consultant channel and intermediary partners (such as banks, broker-dealers and independent financial advisers).

Insurance Solutions

The Insurance Solutions business provides its products through two segments: Individual Life and Employee Benefits. The Individual Life segment provides wealth accumulation, protection and transfer opportunities through universal, variable and term life products, distributed through a network of independent general agents and managing directors, to meet the needs of a broad range of customers from the middle market through affluent market segments. The Employee Benefits segment provides stop loss, group life, voluntary employee-paid and disability products to mid-sized and large businesses.

Corporate

Corporate includes corporate operations and corporate level assets and financial obligations. The Corporate segment includes investment income on assets backing surplus in excess of amounts held at the segment level, financing and interest expenses, and other items not allocated to segments, including items such as expenses of the Company's strategic investment program, certain expenses and liabilities of employee benefit plans and intercompany eliminations.

Closed Blocks

Closed Blocks consists of three separate reporting segments that include run-off and legacy business lines that are no longer being actively marketed or sold. The Closed Block Variable Annuity ("CBVA") segment consists of variable annuity contracts that were designed to offer long-term savings products in which individual contract owners made deposits that are maintained in separate accounts. These products included options for policyholders to purchase living benefit riders. In 2009, the Company separated its CBVA segment from other operations, placing it in run-off, and made a strategic decision to stop actively writing new retail variable annuity products with substantial guarantee features (the last policies were issued in early 2010 and the block shifted to run-off). The Closed Block Institutional Spread Products segment historically issued GICs and funding agreements and invested amounts raised to earn a spread. While the business in the Closed Block Institutional Spread Products segment is being managed in active run-off, the Company continues to issue liabilities from time to time to replace liabilities that are maturing. The Closed Block Other segment consists primarily of retained and run-off activity related to divestment, including the Company's group reinsurance and individual reinsurance businesses.

Measurement

Operating earnings before income taxes is an internal measure used by management to evaluate segment performance. The Company uses the same accounting policies and procedures to measure segment operating earnings before income taxes as it does for consolidated Net income (loss). Operating earnings before income taxes does not replace Net income (loss) as the U.S. GAAP measure of the Company’s consolidated results of operations. However, the Company believes that the definitions of operating earnings before income taxes provide users with a more valuable measure of its business and segment performances and enhance the understanding of the Company’s performance by highlighting performance drivers. 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 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 the Company's 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 the Company's nonperformance spread;


•	Income (loss) related to businesses exited through reinsurance or divestment (including net investment gains (losses) on securities sold and expenses directly related to these transactions);


•	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 the Company’s 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.

Operating earnings before income taxes also does not reflect the results of operations of the Company's CBVA segment, since this segment is managed to focus on protecting regulatory and rating agency capital rather than achieving operating metrics. When the Company presents the adjustments to Income (loss) before income taxes on a consolidated basis, each adjustment excludes the relative portions attributable to the Company's CBVA segment.

The summary below reconciles operating earnings before income taxes for the segments to Income (loss) before income taxes for the periods indicated:



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Retirement and Investment Solutions:
Retirement	$	128.4		$	135.8		$	252.9		$	250.7
Annuities	61.0			64.2			129.6			119.0
Investment Management	47.0			54.9			93.9			104.7
Insurance Solutions:
Individual Life	37.7			63.4			81.1			94.5
Employee Benefits	37.7			37.8			78.3			54.7
Total Ongoing Business	311.8			356.1			635.8			623.6
Corporate	(53.3		)	(38.3		)	(101.5		)	(75.6		)
Closed Blocks:
Closed Block Institutional Spread Products	3.2			6.6			8.3			12.0
Closed Block Other	0.8			3.9			9.5			(0.6		)
Closed Blocks	4.0			10.5			17.8			11.4
Total operating earnings before income taxes	262.5			328.3			552.1			559.4

Adjustments:
Closed Block Variable Annuity	180.5			(82.1		)	151.1			(57.9		)
Net investment gains (losses) and related charges and adjustments	(9.4		)	73.0			41.0			130.6
Net guaranteed benefit hedging gains (losses) and related charges and adjustments	24.6			(20.3		)	(22.6		)	(13.9		)
Loss related to businesses exited through reinsurance or divestment	(33.3		)	(26.9		)	(48.7		)	(37.4		)
Income (loss) attributable to noncontrolling interest	81.9			166.6			108.0			180.1
Loss related to early extinguishment of debt	(9.9		)	—			(9.9		)	—
Other adjustments to operating earnings	(10.7		)	(17.6		)	(23.5		)	(33.6		)
Income (loss) before income taxes	$	486.2		$	421.0		$	747.5		$	727.3

Operating revenues is a measure of the Company's segment revenues. Each segment's Operating revenues are calculated by adjusting Total revenues to exclude the following items:

•

Net realized investment gains (losses) and related charges and adjustments 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 are net of related amortization of unearned revenue;

•

Gain (loss) on change in fair value of derivatives related to guaranteed benefits 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 the Company's 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 the Company's nonperformance spread;


•	Revenues related to businesses exited through reinsurance or divestment (including net investment gains (losses) on securities sold and expenses directly related to these transactions);


•	Revenues attributable to noncontrolling interest; and


•	Other adjustments to Operating revenues primarily reflect 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.

Operating revenues also do not reflect the revenues of the Company's CBVA segment, since this segment is managed to focus on protecting regulatory and rating agency capital rather than achieving operating metrics. When the Company presents the adjustments to total revenues on a consolidated basis, each adjustment excludes the relative portions attributable to the Company's CBVA segment.

The summary below reconciles operating revenues for the segments to Total revenues for the periods indicated:



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Retirement and Investment Solutions:
Retirement	$	593.8		$	592.9		$	1,194.3		$	1,191.4
Annuities	310.4			330.8			626.0			685.2
Investment Management	158.6			163.2			321.7			323.7
Insurance Solutions:
Individual Life	662.9			699.9			1,331.7			1,392.1
Employee Benefits	376.2			342.5			747.1			681.4
Total Ongoing Business	2,101.9			2,129.3			4,220.8			4,273.8
Corporate	18.6			23.6			39.0			48.9
Closed Blocks:
Closed Block Institutional Spread Products	13.5			17.0			28.4			34.6
Closed Block Other	2.5			7.0			9.5			15.0
Closed Blocks	16.0			24.0			37.9			49.6
Total operating revenues	2,136.5			2,176.9			4,297.7			4,372.3

Adjustments:
Closed Block Variable Annuity	658.5			114.1			922.9			402.7
Net realized investment gains (losses) and related charges and adjustments	(19.1		)	67.0			34.0			116.6
Gain (loss) on change in fair value of derivatives related to guaranteed benefits	44.4			(24.3		)	(9.2		)	(48.2		)
Revenues related to businesses exited through reinsurance or divestment	(52.2		)	66.9			(11.6		)	85.9
Revenues attributable to noncontrolling interest	159.8			219.1			249.6			279.9
Other adjustments to operating revenues	66.0			80.4			141.5			165.8
Total revenues	$	2,993.9		$	2,700.1		$	5,624.9		$	5,375.0

Other Segment Information

The Investment Management segment revenues include the following intersegment revenues, primarily consisting of asset-based management and administration fees for the periods indicated:



	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Investment Management intersegment revenues	$	39.9	$	39.0	$	78.5	$	78.3

The summary below presents Total assets for the Company’s segments as of the dates indicated:



	June 30, 2015		December 31, 2014
Retirement and Investment Solutions:
Retirement	$	99,099.9	$	96,433.9
Annuities	25,475.2		25,901.5
Investment Management	556.9		492.6
Insurance Solutions:
Individual Life	26,429.9		26,877.1
Employee Benefits	2,606.2		2,602.4
Total Ongoing Business	154,168.1		152,307.5
Corporate	5,598.1		5,889.3
Closed Blocks:
Closed Block Variable Annuity	46,521.1		48,706.9
Closed Block Institutional Spread Products	1,770.8		1,901.9
Closed Block Other	7,177.2		7,496.3
Closed Blocks	55,469.1		58,105.1
Total assets of segments	215,235.3		216,301.9
Noncontrolling interest	11,349.8		10,628.8
Total assets	$	226,585.1	$	226,930.7