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 September 30,
	2014				2013
	Income		Expense		Income		Expense
NN Group	$	1.0	$	0.1	$	0.6	$	0.4
ING Group	3.9		3.5		2.1		4.1
ING Bank	0.3		4.7		3.0		5.3
Other	4.8		3.6		5.2		3.4
Total	$	10.0	$	11.9	$	10.9	$	13.2

	Nine Months Ended September 30,
	2014				2013
	Income		Expense		Income		Expense
NN Group	$	2.2	$	0.4	$	1.5	$	6.0
ING Group	10.8		10.9		7.3		13.7
ING Bank	4.4		15.4		1.6		34.1
Other	15.4		10.6		13.2		10.9
Total	$	32.8	$	37.3	$	23.6	$	64.7

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



	September 30, 2014				December 31, 2013
	Assets		Liabilities		Assets		Liabilities
NN Group	$	0.9	$	0.3	$	0.5	$	0.2
ING Group	5.7		1.0		1.3		0.9
ING Bank	11.8		3.7		13.8		5.8
Other	3.5		1.9		2.6		2.0
Total	$	21.9	$	6.9	$	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 $3.7 and $4.9 as of September 30, 2014 and December 31, 2013, respectively. The Company incurred expenses of $4.0 and $4.8 for the three months ended September 30, 2014 and 2013, respectively. The Company incurred expenses of $11.5 and $33.0 for the nine months ended September 30, 2014 and 2013, respectively.

Derivatives

The Company is party to several derivative contracts with NN Group N.V. ("NN Group"), a majority owned subsidiary of ING Group following its IPO on July 2, 2014, and ING Bank and one or more of ING Bank's subsidiaries. Each of these contracts was 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 September 30, 2014 and December 31, 2013, the outstanding notional amounts were $319.4 (consisting of interest rate swaps of $82.6 and equity options of $236.8) and $518.9 (consisting of interest rate swaps of $328.8 and equity options of $190.1), respectively. As of September 30, 2014 and December 31, 2013, the market values for these contracts were $10.3 and $10.5, respectively. For the three months ended September 30, 2014, the Company recorded no net realized capital gains (losses) with ING Bank and NN Group. For the three months ended September 30, 2013, the Company recorded net realized capital gains (losses) of $1.6 with ING Bank and NN Group. For the nine months ended September 30, 2014 and 2013, the Company recorded net realized capital gains (losses) of $3.9 and $(2.6), 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 September 30, 2014 and December 31, 2013, the maximum potential future exposure to the Company on credit default swaps supported by the NN Group guarantee was $35.3 and $43.5, respectively.

Share Repurchase Program

On March 25, 2014 and September 8, 2014, the Company completed the repurchase of 7,255,853 shares and 7,722,007 shares, respectively, of the Company’s common stock from ING Group for respective aggregate purchase prices of $250.0 and $300.0. The repurchases were each made pursuant to a Share Repurchase Agreement with ING Group. The per share purchase price paid by the Company in each case was equal to the per share purchase price paid by the underwriters in registered public offerings of the Company’s common stock by ING Group which were completed concurrently with each of the repurchase transactions.

The repurchases were each authorized by a special committee of the Company’s Board of Directors consisting solely of independent and disinterested directors (the “Independent Committees”), which committees were formed for the sole purpose of considering the applicable repurchase transaction. The Independent Committees retained independent financial and legal advisors for purposes of their deliberations.

See the Shareholders' Equity and Earnings per Common Share Note to these Condensed Consolidated Financial Statements for additional information regarding shares repurchase transactions with ING Group.