Financing Agreements

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Financing Agreements

Financing Agreements

Reciprocal Loan Agreement

The Company maintains a reciprocal loan agreement with Voya Financial, an affiliate, to facilitate the handling of unanticipated short-term cash requirements that arise in the ordinary course of business. Under this agreement, which expires on April 1, 2026, either party can borrow from the other up to 3.0% of the Company’s statutory admitted assets as of the preceding December 31. Interest on any borrowing by either the Company or Voya Financial is charged at a rate based on the prevailing market rate for similar third-party borrowings or securities.

Under this agreement, the Company incurred $1 interest expense for the three and six months ended June 30, 2023 and immaterial interest expense for the three and six months ended June 30, 2022. The Company earned $8 and $12 of interest income for the three and six months ended June 30, 2023, respectively. The Company earned $2 and $3 of interest income for the three and six months ended June 30, 2022, respectively.

As of June 30, 2023, VRIAC had $58 outstanding receivables and VIPS had an outstanding payable of $53 under the reciprocal loan agreement. As of December 31, 2022, the Company had no outstanding receivable and VIPS had a $31 outstanding payable from/to Voya Financial under the reciprocal loan agreement.