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Schedule II - Condensed Financial Information of Parent
 12 Months Ended
Dec. 31, 2019
Condensed Financial Information Disclosure [Abstract]  
Schedule II - Condensed Financial Information of Parent
Schedule II

Condensed Financial Information of Parent
Balance Sheets
December 31, 2019 and 2018
(In millions, except share and per share data)
 
As of December 31,
 
2019
 
2018
Assets
 
 
 
Investments:
 
 
 
Fixed maturities, available-for-sale, at fair value (amortized cost of $5 as of 2019 and $0 as of 2018
$
5

 
$
—

Equity securities, at fair value (amortized cost of $0 as of 2019 and $99 as of 2018)
—

 
99

Limited partnerships/corporations
4

 
—

Derivatives
49

 
39

Investments in subsidiaries
11,003

 
10,099

Total investments
11,061

 
10,237

Cash and cash equivalents
212

 
209

Short-term investments under securities loan agreements, including collateral delivered
11

 
11

Loans to subsidiaries and affiliates
164

 
79

Due from subsidiaries and affiliates
2

 
2

Deferred income taxes
816

 
553

Other assets
7

 
13

Total assets
$
12,273

 
$
11,104

 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
Short-term debt
$
69

 
$
4

Long-term debt
2,669

 
2,763

Derivatives
50

 
39

Due to subsidiaries and affiliates
4

 
1

Current income taxes
28

 
37

Other liabilities
45

 
47

Total liabilities
2,865

 
2,891

 
 
 
 
Shareholders' equity:
 
 
 
Preferred stock ($0.01 par value per share; $625 and $325 aggregate liquidation preference as of 2019 and 2018, respectively)
—

 
—

Common stock ($0.01 par value per share; 900,000,000 shares authorized; 140,726,677 and 272,431,745 shares issued as of 2019 and 2018, respectively; 132,325,790 and 150,978,184 shares outstanding as of 2019 and 2018, respectively)
2

 
3

Treasury stock (at cost; 8,400,887 and 121,453,561 shares as of 2019 and 2018, respectively)
(460
)
 
(4,981
)
Additional paid-in capital
11,184

 
24,316

Accumulated other comprehensive income (loss)
3,331

 
607

Retained earnings (deficit):
 
 
 
Unappropriated
(4,649
)
 
(11,732
)
Total Voya Financial, Inc. shareholders' equity
9,408

 
8,213

Total liabilities and shareholders' equity
$
12,273

 
$
11,104


The accompanying notes are an integral part of this Condensed Financial Information.
Voya Financial, Inc.
Schedule II

Condensed Financial Information of Parent
Statements of Operations
For the Years Ended December 31, 2019, 2018 and 2017
(In millions)

 
Year Ended December 31,
 
2019
 
2018
 
2017
Revenues:
 
 
 
 
 
Net investment income
$
39

 
$
1

 
$
33

Net realized capital gains (losses)
(1
)
 
—

 
—

Other revenue
—

 
(5
)
 
8

Total revenues
38

 
(4
)
 
41

 
 
 
 
 
 
Expenses:
 
 
 
 
 
Interest expense
151

 
175

 
155

Other expenses
12

 
11

 
9

Total expenses
163

 
186

 
164

Income (loss) before income taxes and equity in earnings (losses) of subsidiaries
(125
)
 
(190
)
 
(123
)
Income tax expense (benefit)
(277
)
 
—

 
113

Net income (loss) before equity in earnings (losses) of subsidiaries
152

 
(190
)
 
(236
)
Equity in earnings (losses) of subsidiaries, net of tax
(503
)
 
1,065

 
(2,756
)
Net income (loss) available to Voya Financial, Inc.
(351
)
 
875

 
(2,992
)
Less: Preferred stock dividends
28

 
—

 
—

Net income (loss) available to Voya Financial, Inc.'s common shareholders
$
(379
)
 
$
875

 
$
(2,992
)

The accompanying notes are an integral part of this Condensed Financial Information.
Voya Financial, Inc.
Schedule II

Condensed Financial Information of Parent
Statements of Comprehensive Income
For the Years Ended December 31, 2019, 2018 and 2017
(In millions)

 
Year Ended December 31,
 
2019
 
2018
 
2017
Net income (loss) available to Voya Financial, Inc.
$
(351
)
 
$
875

 
$
(2,992
)
Other comprehensive income (loss), after tax
2,381

 
(2,096
)
 
810

Comprehensive income (loss) attributable to Voya Financial, Inc.
$
2,030

 
$
(1,221
)
 
$
(2,182
)

The accompanying notes are an integral part of this Condensed Financial Information.
Voya Financial, Inc.
Schedule II

Condensed Financial Information of Parent
Statements of Cash Flows
For the Years Ended December 31, 2019, 2018 and 2017
(In millions)

 
Year Ended December 31,
 
2019
 
2018
 
2017
Cash Flows from Operating Activities:
 
 
 
 
 
Net income (loss) available to Voya Financial, Inc.
$
(351
)
 
$
875

 
$
(2,992
)
Adjustments to reconcile Net income (loss) available to Voya Financial, Inc. to Net cash used in operating activities:
 
 
 
 
 
Equity in (earnings) losses of subsidiaries
503

 
(1,065
)
 
2,756

Dividends from subsidiaries
—

 
52

 
73

Deferred income tax expense (benefit)
(263
)
 
25

 
131

Net realized capital losses
1

 
—

 
—

Share-based compensation
12

 
3

 
—

Change in:
 
 
 
 
 
Other receivables and asset accruals
(10
)
 
40

 
32

Due from subsidiaries and affiliates
—

 
—

 
1

Due to subsidiaries and affiliates
3

 
—

 
1

Other payables and accruals
(24
)
 
(3
)
 
(18
)
Other, net
19

 
46

 
(2
)
Net cash used in operating activities
(110
)
 
(27
)
 
(18
)
 
 
 
 
 
 
Cash Flows from Investing Activities:
 
 
 
 
 
Proceeds from the sale, maturity, disposal or redemption of equity securities
156

 
34

 
25

Acquisition of:
 
 
 
 
 
Fixed maturities
(5
)
 
—

 
—

Equity securities
(35
)
 
(36
)
 
(34
)
Limited partnerships/corporations
(4
)
 
—

 
—

Short-term investments, net
—

 
212

 
—

Issuance of intercompany loans with maturities more than three months
—

 
—

 
(34
)
Maturity of intercompany loans issued to subsidiaries with maturities more than three months
—

 
—

 
34

Maturity (issuance) of short-term intercompany loans, net
(85
)
 
111

 
87

Return of capital contributions and dividends from subsidiaries
1,064

 
1,155

 
1,020

Capital contributions to subsidiaries
(3
)
 
(55
)
 
(467
)
Other, net
—

 
(13
)
 
—

Net cash provided by investing activities
1,088

 
1,408

 
631


The accompanying notes are an integral part of this Condensed Financial Information.

Voya Financial, Inc.
Schedule II

Condensed Financial Information of Parent
Statements of Cash Flows (Continued)
For the Years Ended December 31, 2019, 2018 and 2017
(In millions)

 
Year Ended December 31,
 
2019
 
2018
 
2017
Cash Flows from Financing Activities:
 
 
 
 
 
Proceeds from issuance of debt with maturities of more than three months
—

 
350

 
399

Repayment of debt with maturities of more than three months
(106
)
 
(623
)
 
(494
)
Debt issuance costs
—

 
(6
)
 
(3
)
Net proceeds from (repayments of) short-term loans to subsidiaries
65

 
(414
)
 
408

Proceeds from issuance of common stock, net
3

 
3

 
3

Proceeds from issuance of preferred stock, net
293

 
319

 
—

Share-based compensation
(22
)
 
(14
)
 
(8
)
Common stock acquired - Share repurchase
(1,136
)
 
(1,025
)
 
(923
)
Dividends paid on common stock
(44
)
 
(6
)
 
(8
)
Dividends paid on preferred stock
(28
)
 
—

 
—

Net cash used in financing activities
(975
)
 
(1,416
)
 
(626
)
Net increase (decrease) in cash and cash equivalents
3

 
(35
)
 
(13
)
Cash and cash equivalents, beginning of period
209

 
244

 
257

Cash and cash equivalents, end of period
$
212

 
$
209

 
$
244

 
 
 
 
 
 
Supplemental cash flow information:
 
 
 
 
 
Income taxes paid (received), net
$
(128
)
 
$
1

 
$
(154
)
Interest paid
136

 
152

 
138


The accompanying notes are an integral part of this Condensed Financial Information.
1.    Business and Basis of Presentation

The condensed financial information of Voya Financial, Inc. should be read in conjunction with the consolidated financial statements of Voya Financial, Inc. and its subsidiaries (collectively the "Company") and the notes thereto (the "Consolidated Financial Statements").

The accompanying financial information reflects the results of operations, financial position and cash flows for Voya Financial, Inc. The financial information is in conformity with accounting principles generally accepted in the United States, which require management to adopt accounting policies and make certain estimates and assumptions. Investments in subsidiaries are accounted for using the equity method of accounting.

2.    Loans to Subsidiaries

Voya Financial, Inc. maintains reciprocal loan agreements with subsidiaries to facilitate unanticipated short-term cash requirements that arise in the ordinary course of business. 

The following table summarizes the carrying value of Voya Financial, Inc.'s loans to subsidiaries for the periods indicated:
 
 
 
 
 
As of December 31,
Subsidiaries
Rate
 
Maturity Date
 
2019
 
2018
Voya Alternative Asset Management LLC
0.02
%
 
12/30/2019
 
$
—

 
$
2

Voya Custom Investments LLC
2.80
%
 
01/30/2020
 
1

 
—

Voya Capital
2.60
%
 
01/07/2020
 
9

 
4

Voya Investment Management, LLC
2.80
%
 
01/24/2020
 
53

 
51

Voya Payroll Management, Inc.
2.53
%
 
01/02/2020
 
7

 
6

Voya Holdings Inc.
2.68
%
 
01/10/2020
 
30

 
—

Voya Holdings Inc.
2.78
%
 
01/30/2020
 
57

 
—

Security Life of Denver International Limited
2.53
%
 
01/02/2020
 
—

 
16

Voya Services Company
2.53
%
 
01/02/2020
 
7

 
—

Total
 
 
 
 
$
164

 
$
79


Interest income earned on loans to subsidiaries was $6, $5 and $8 for the years ended December 31, 2019, 2018 and 2017, respectively. Interest income is included in Net investment income in the Condensed Statements of Operations.

3.    Financing Agreements

Debt Securities

The following table summarizes Voya Financial, Inc.'s short-term debt borrowings for the periods indicated:
 
As of December 31,
 
2019
 
2018
Intercompany financing - Subsidiaries
$
69

 
$
4

Total
$
69

 
$
4


Intercompany financing

Under the reciprocal loan agreements with subsidiaries, interest is charged at the prevailing market interest rate for similar third-party borrowings for securities.
 
 
 
 
 
 
As of December 31, 2019 and 2018, Voya Financial, Inc. was in compliance with its debt covenants.

See Financing Agreements Note to these Consolidated Financial Statements for further information regarding long-term debt and the five-year maturities of long-term debt.
 
 
Credit Facilities

Voya Financial, Inc. uses credit facilities to provide collateral required primarily under its affiliated reinsurance transactions with captive insurance subsidiaries. As of December 31, 2019, unsecured and uncommitted credit facilities totaled $425, and unsecured and committed facilities totaled $4.5 billion. Voya Financial, Inc. additionally has $10 of secured facilities. Of the aggregate $5.0 billion capacity available, Voya Financial, Inc. utilized $3.8 billion in credit facilities outstanding as of December 31, 2019. Total fees associated with credit facilities in 2019, 2018 and 2017 totaled $32, $28 and $39, respectively.

Guarantees

In the normal course of business, Voya Financial, Inc. enters into indemnification agreements with financial institutions that issue surety bonds on behalf of Voya Financial, Inc. or its subsidiaries in connection with litigation matters.

Voya Financial, Inc. provides credit support to its Roaring River IV, LLC ("Roaring River IV") captive reinsurance subsidiary through a surplus maintenance agreement with a third-party bank in connection with a financing arrangement involving $565 of statutory reserves which matures December 31, 2028. The reimbursement agreement requires Voya Financial, Inc. to cause capital to be maintained in Roaring River IV Holding LLC, the intermediate holding company of Roaring River IV, and in Roaring River IV. These amounts will vary over time based on a percentage of Roaring River IV in force life insurance. Upon closing the transaction, we expect to unwind this financing arrangement, and this guarantee will therefore terminate.

In addition, Voya Financial, Inc. provides guarantees to certain of its subsidiaries to support various business requirements:

•
Under the Buyer Facility Agreement put into place by Hannover Re, Voya Financial, Inc. and SLDI have contingent reimbursement obligations and Voya Financial, Inc. has guarantee obligations, up to the full $2.9 billion principal amount of the note and one $600 letter of credit issued pursuant to the agreement, if SLD or SLDI were to direct the sale or liquidation of the note other than as permitted by the Buyer Facility Agreement, or fail to return reinsurance collateral (including the note) upon termination of the Buyer Facility Agreement or as otherwise required by the Buyer Facility Agreement. In addition, Voya Financial, Inc. has agreed to indemnify Hannover Re for any losses it incurs in the event that SLD or SLDI were to exercise offset rights unrelated to the Hannover Re block. We expect to restructure this guarantee arrangement in connection with the Individual Life Transaction.

•
Voya Financial, Inc. has also entered into a corporate guarantee agreement with a third-party ceding insurer where it guarantees the reinsurance obligations of its subsidiary, SLD, assumed under a reinsurance agreement with the third-party cedent for the amount of the statutory reserves assumed by SLD. The current amount of reserves outstanding as of December 31, 2019 is $13. We expect to restructure this guarantee arrangement in connection with the Individual Life Transaction.

•
Voya Financial, Inc. guarantees the obligations of Voya Holdings under the $13 principal amount of 8.42% Series B Capital Securities due April 1, 2027 (the "Equitable Notes"), and provides a back-to-back guarantee to ING Group in respect of its guarantee of $358 combined principal amount of Aetna Notes.

•
Voya Financial, Inc. and Voya Holdings provide a guarantee to certain Voya insurance subsidiaries of VIAC’s payment obligations to those subsidiaries under certain VIAC surplus notes held by those subsidiaries. The agreement provides for Voya and Voya Holdings to reimburse the applicable subsidiary to the extent that any interest on, principal of, or any redemption payment with respect to such surplus note is unpaid by VIAC on its scheduled date of payment.

There were no assets or liabilities recognized by Voya Financial, Inc. as of December 31, 2019 and 2018 in relation to these intercompany indemnifications, guarantees or support agreements. As of December 31, 2019 and 2018, no circumstances existed in which Voya Financial, Inc. was required to currently perform under these arrangements.

4.    Returns of Capital and Dividends

Voya Financial, Inc. received returns of capital and dividends from the following subsidiaries for the periods indicated:
 
Years Ended December 31,
 
2019
 
2018
 
2017
Voya Holdings Inc.(1)
$
786

 
$
708

 
$
1,020

Security Life of Denver International Ltd
228

 
425

 
—

Security Life of Denver Insurance Company
—

 
52

 
73

Voya Financial Products Company, Inc.
—

 
12

 
—

Voya Services Company(2)
50

 
85

 
—

Total
$
1,064

 
$
1,282

 
$
1,093

(1) The year ended December 31, 2018 included $70 of non-cash activities.
(2) The year ended December 31, 2018 included $5 of non-cash activities.

5.    Income Taxes

As of December 31, 2019 and 2018, Voya Financial, Inc. held deferred tax assets related to loss and credit carryforwards, some of which have not been realized by its subsidiaries but have been reimbursed to the subsidiaries by Voya Financial, Inc. pursuant to the intercompany tax sharing agreement. The total deferred tax assets were primarily comprised of federal net operating loss, state net operating loss and credit carryforwards.

Valuation allowances have been applied to these deferred tax assets as of December 31, 2019 and 2018. Character, amount and estimated expiration date of the carryforwards and the related allowances are disclosed in the Income Taxes Note to the Consolidated Financial Statements.

As of December 31, 2019 and 2018, Voya Financial, Inc. has recognized deferred tax assets of $816 and $553, respectively, primarily related to federal net operating loss carryforwards in 2018 and 2019.

Tax Sharing Agreement

Voya Financial, Inc. has entered into a federal tax sharing agreement with members of an affiliated group as defined in Section 1504 of the Internal Revenue Code of 1986, as amended. The agreement provides for the manner of calculation and the amounts/timing of the payments between the parties as well as other related matters in connection with the filing of consolidated federal income tax returns. The federal tax sharing agreement provides that Voya Financial, Inc. will pay its subsidiaries for the tax benefits of ordinary and capital losses only in the event that the consolidated tax group actually uses the tax benefit of losses generated.

Voya Financial, Inc. has also entered into a state tax sharing agreement with each of the specific subsidiaries that are parties to the agreement. The state tax agreement applies to situations in which Voya Financial, Inc. and all or some of the subsidiaries join in the filing of a state or local franchise, income tax, or other tax return on a consolidated, combined or unitary basis.