Related Party Transactions

3 Months Ended

Mar. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

In the normal course of business, the Company enters into various transactions with affiliated companies. Parties are considered to be related if one party has the ability to control or exercise significant influence over the other party in making financial or operating decisions.

The following tables summarize income and expense from transactions with related parties for the periods indicated:

	Three Months Ended March 31,
	2014					2013
	Income			Expense		Income			Expense
NN Group(1)	$	0.6		$	0.1	$	0.4		$	3.3
ING Group	5.6			3.5		4.2			5.0
ING Bank(1)	(0.5		)	6.6		(0.4		)	18.4
Other	5.3			3.4		3.6			3.7
Total	$	11.0		$	13.6	$	7.8		$	30.4
(1) See "Derivatives" section below.

Assets and liabilities from transactions with related parties as of the dates indicated are shown in the following table:

	March 31, 2014				December 31, 2013
	Assets		Liabilities		Assets		Liabilities
NN Group	$	0.5	$	0.1	$	0.5	$	0.2
ING Group	9.0		0.9		1.3		0.9
ING Bank	11.1		3.2		13.8		5.8
Other	2.4		1.6		2.6		2.0
Total	$	23.0	$	5.8	$	18.2	$	8.9

The material agreements whereby the Company generates revenues and expenses with affiliated entities are as follows:

Credit Facilities

The Company is a borrower in several credit facility agreements with ING Bank, in which ING Bank provides LOC capacity. The Company had accrued payables of $3.1 and $4.9 as of March 31, 2014 and December 31, 2013, respectively. The Company incurred expenses of $3.7 and $17.7 for the three months ended March 31, 2014 and 2013, respectively.

The Company provided a $15.0 LOC for a captive reinsurance subsidiary which was issued by ING Bank and was scheduled to expire in 2026. NN Group N.V. (“NN Group”), a wholly owned subsidiary of ING Group, was the guarantor of the LOC and indemnified ING Bank up to $15.0. On January 14, 2014, the LOC was cancelled and the corresponding guarantee obligation of NN Group was extinguished.

Derivatives

The Company is party to several derivative contracts with NN Group and ING Bank and one or more of ING Bank's subsidiaries. Each of these contracts were entered into as a result of a competitive bid, which included unaffiliated counterparties. The Company is exposed to various risks relating to its ongoing business operations, including but not limited to interest rate risk, foreign currency risk and equity market risk. To manage these risks, the Company uses various strategies, including derivatives contracts, certain of which are with related parties, such as interest rate swaps, equity options and currency forwards.

As of March 31, 2014 and December 31, 2013, the outstanding notional amounts were $462.9 (consisting of interest rate swaps of $214.3 and equity options of $248.6) and $518.9 (consisting of interest rate swaps of $328.8 and equity options of $190.1), respectively. As of March 31, 2014 and December 31, 2013, the market values for these contracts were $9.2 and $10.5,respectively. For the three months ended March 31, 2014 and 2013, the Company recorded net realized capital gains (losses) of $(0.7) and $(1.4), respectively, with ING Bank and NN Group.

The Company has sold protection under certain credit default swap derivative contracts that were previously supported by a guarantee provided by NN Group. During 2013, the guarantee provided by NN Group on the sold protection was replaced with guarantees provided by Voya Financial, Inc. The Company purchased protection under one credit default swap derivative contract that is supported by the NN Group guarantee with the potential exposure limited to swap premiums to be paid. As of March 31, 2014 and December 31, 2013, the maximum potential future exposure to the Company on credit default swaps supported by the NN Group guarantee was $39.8 and $43.5, respectively.