Financing Agreements

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Financing Agreements

Financing Agreements

Reciprocal Loan Agreement

The Company maintains a reciprocal loan agreement with Voya Financial, Inc., an affiliate, to facilitate the handling of unanticipated short-term cash requirements that arise in the ordinary course of business. Under the prior agreement, which became effective in June 2001 and expired on April 1, 2016, and the current agreement, which became effective on April 1, 2016 and expires April 1, 2021, either party can borrow from the other up to 3.0% of the Company’s statutory admitted assets as of the preceding December 31. Effective January 2014, interest on any borrowing by either the Company or Voya Financial, Inc. is charged at a rate based on the prevailing market rate for similar third-party borrowings or securities.

Under this agreement, the Company did not incur interest expense for the three months ended June 30, 2017 and the Company incurred $0.1 in interest expense for the six months ended June 30, 2017. The Company did not incur interest expense for the three and six months months ended June 30, 2016. The Company earned $0.7 and $0.8 in interest income for the three and six months ended June 30, 2017, respectively and earned $0.2 and $0.4 in interest income for the three and six months ended June 30, 2016, respectively. As of June 30, 2017 and December 31, 2016, the Company did not have an outstanding receivable/payable from/to Voya Financial, Inc. under the reciprocal loan agreement.

For information on the Company's additional financing agreements, see the Financing Agreements Note in the Consolidated Financial Statements in Part II, Item 8. in the Company's Annual Report on Form 10-K.