10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

——————————————————————

FORM 10-Q

(Mark One)
ý	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period fromto

Commission File Number: 033-23376

Voya Retirement Insurance and Annuity Company

(Exact name of registrant as specified in its charter)

Connecticut	71-0294708
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

One Orange Way
Windsor, Connecticut	06095-4774
(Address of principal executive offices)	(Zip Code)

(860) 580-4646

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.       Yes     ý       No    o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes   ý     No   o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o	Accelerated filer    o
Non-accelerated filer x	Smaller reporting company     o
(Do not check if a smaller reporting company)	Emerging growth company     o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No ý

APPLICABLE ONLY TO CORPORATE ISSUERS:

As of May 9, 2018, 55,000 shares of Common Stock, $50 par value were outstanding, all of which were directly owned by Voya Holdings Inc.

NOTE:  WHEREAS VOYA RETIREMENT INSURANCE AND ANNUITY COMPANY MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q, THIS FORM IS BEING FILED WITH THE REDUCED DISCLOSURE FORMAT PURSUANT TO GENERAL INSTRUCTION H(2).

1

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Form 10-Q for the period ended March 31, 2018

INDEX
		PAGE
PART I.	FINANCIAL INFORMATION (UNAUDITED)
Item 1.	Financial Statements:
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Comprehensive Income	7
	Condensed Consolidated Statements of Changes in Shareholder's Equity	8
	Condensed Consolidated Statements of Cash Flows	9
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management's Narrative Analysis of the Results of Operations and Financial Condition	56
Item 4.	Controls and Procedures	73
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	74
Item 1A.	Risk Factors	74
Item 6.	Exhibits	74
Signature		75
Exhibit Index		76

2

As used in this Quarterly Report on Form 10-Q, "VRIAC" refers to Voya Retirement Insurance and Annuity Company and the "Company," "we," "our" and "us" refer to VRIAC and its wholly owned subsidiaries.

NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including "Risk Factors" and "Management’s Narrative Analysis of the Results of Operations and Financial Condition" contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements relating to future developments in our business or expectations for our future financial performance and any statement not involving a historical fact. Forward-looking statements use words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. Actual results, performance or events may differ materially from those projected in any forward-looking statement due to, among other things, (i) general economic conditions, particularly economic conditions in our core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels, (v) persistency and lapse levels, (vi) interest rates, (vii) currency exchange rates, (viii) general competitive factors, (ix) changes in laws and regulations, including those relating to insurance regulatory reform initiatives applicable to captive reinsurance entities and those made pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act or the U.S. Department of Labor's final rules and exemptions pertaining to the fiduciary status of providers of investment advice; and (x) changes in the policies of governments and/or regulatory authorities; and (xi) our parent company, Voya Financial, Inc.'s ability to successfully complete the Transaction (as defined below) on the expected economic terms or at all. Factors that may cause actual results to differ from those in any forward-looking statement also include those described under "Risk Factors" and "Management’s Narrative Analysis of the Results of Operations and Financial Condition" in the Annual Report on Form 10-K for the year ended December 31, 2017 (File No. 033-23376) (the "Annual Report on Form 10-K").

The risks included here are not exhaustive. Current reports on Form 8-K and other documents filed with the Securities and Exchange Commission ("SEC") include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.

3

PART I.    FINANCIAL INFORMATION (UNAUDITED)

Item 1.     Financial Statements

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Balance Sheets

March 31, 2018 (Unaudited) and December 31, 2017

(In millions, except share and per share data)

	March 31, 2018		December 31, 2017
Assets
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost of $22,173 as of 2018 and $21,774 as of 2017)	$	22,912	$	23,141
Fixed maturities, at fair value using the fair value option	933		941
Equity securities, at fair value (cost of $45 as of 2018 and 2017)	58		60
Short-term investments	75		25
Mortgage loans on real estate, net of valuation allowance of $1 as of 2018 and 2017	4,891		4,910
Policy loans	212		214
Limited partnerships/corporations	425		411
Derivatives	148		136
Securities pledged (amortized cost of $776 as of 2018 and $864 as of 2017)	833		960
Other investments	22		—
Total investments	30,509		30,798
Cash and cash equivalents	344		288
Short-term investments under securities loan agreements, including collateral delivered	591		765
Accrued investment income	318		304
Premiums receivable and reinsurance recoverable	1,484		1,496
Deferred policy acquisition costs, Value of business acquired and Sales inducements to contract owners	911		766
Notes receivable from affiliate	175		175
Short-term loan to affiliate	—		80
Due from affiliates	48		60
Property and equipment	64		64
Other assets	173		140
Assets held in separate accounts	73,489		73,036
Total assets	$	108,106	$	107,972

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
	4

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Balance Sheets

March 31, 2018 (Unaudited) and December 31, 2017

(In millions, except share and per share data)

	March 31, 2018		December 31, 2017
Liabilities and Shareholder's Equity
Future policy benefits and contract owner account balances	$	29,789	$	29,669
Payable for securities purchased	195		79
Payables under securities loan agreements, including collateral held	694		845
Long-term debt	4		5
Due to affiliates	66		61
Derivatives	102		85
Current income tax payable to Parent	6		23
Deferred income taxes	117		187
Other liabilities	272		401
Liabilities related to separate accounts	73,489		73,036
Total liabilities	104,734		104,391
Commitments and Contingencies (Note 9)
Shareholder's equity:
Common stock (100,000 shares authorized, 55,000 issued and outstanding as of 2018 and 2017; $50 par value per share)	3		3
Additional paid-in capital	2,730		2,730
Accumulated other comprehensive income (loss)	438		818
Retained earnings (deficit)	201		30
Total shareholder's equity	3,372		3,581
Total liabilities and shareholder's equity	$	108,106	$	107,972

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
	5

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Statements of Operations

For the Three Months Ended March 31,2018 and 2017 (Unaudited)

(In millions)

	Three Months Ended March 31,
	2018			2017
Revenues:
Net investment income	$	382		$	379
Fee income	174			190
Premiums	14			15
Broker-dealer commission revenue	41			44
Net realized capital gains (losses):
Total other-than-temporary impairments	(9		)	—
Less: Portion of other-than-temporary impairments recognized in Other comprehensive income (loss)	—			—
Net other-than-temporary impairments recognized in earnings	(9		)	—
Other net realized capital gains (losses)	(78		)	(55		)
Total net realized capital gains (losses)	(87		)	(55		)
Total revenues	524			573
Benefits and expenses:
Interest credited and other benefits to contract owners/policyholders	198			235
Operating expenses	108			220
Broker-dealer commission expense	41			44
Net amortization of Deferred policy acquisition costs and Value of business acquired	65			2
Total benefits and expenses	412			501
Income (loss) before income taxes	112			72
Income tax expense (benefit)	25			18
Net income (loss)	$	87		$	54

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
	6

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Statements of Comprehensive Income

For the Three Months Ended March 31, 2018 and 2017 (Unaudited)

(In millions)

	Three Months Ended March 31,
	2018			2017
Net income (loss)	$	87		$	54
Other comprehensive income (loss), before tax:
Unrealized gains/losses on securities	(482		)	79
Other-than-temporary impairments	7			2
Pension and other postretirement benefits liability	(1		)	—
Other comprehensive income (loss), before tax	(476		)	81
Income tax expense (benefit) related to items of other comprehensive income (loss)	(108		)	28
Other comprehensive income (loss), after tax	(368		)	53
Comprehensive income (loss)	$	(281	)	$	107

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
	7

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Statements of Changes in Shareholder’s Equity

For the Three Months Ended March 31, 2018 and 2017 (Unaudited)

(In millions)

	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Earnings (Deficit)			Total Shareholder's Equity
Balance as of January 1, 2018	$	3	$	2,730	$	818		$	30		$	3,581
Cumulative effect of changes in accounting:
Adjustment for adoption of ASU 2014-09	—		—		—			72			72
Adjustment for adoption of ASU 2016-01	—		—		(12		)	12			—
Balance as of January 1, 2018 - As adjusted	3		2,730		806			114			3,653
Comprehensive income (loss):
Net income (loss)	—		—		—			87			87
Other comprehensive income (loss), after tax	—		—		(368		)	—			(368		)
Total comprehensive income (loss)											(281		)
Balance as of March 31, 2018	$	3	$	2,730	$	438		$	201		$	3,372
Balance as of January 1, 2017	$	3	$	2,994	$	560		$	(180	)	$	3,377
Comprehensive income (loss):
Net income (loss)	—		—		—			54			54
Other comprehensive income (loss), after tax	—		—		53			—			53
Total comprehensive income (loss)											107
Balance as of March 31, 2017	$	3	$	2,994	$	613		$	(126	)	$	3,484

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
	8

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31,2018 and 2017 (Unaudited)

(In millions)

	Three Months Ended March 31,
	2018			2017
Net cash provided by operating activities	$	320		$	133
Cash Flows from Investing Activities:
Proceeds from the sale, maturity, disposal or redemption of:
Fixed maturities	903			1,446
Equity securities	—			—
Mortgage loans on real estate	167			145
Limited partnerships/corporations	11			22
Acquisition of:
Fixed maturities	(1,217		)	(891		)
Equity securities	—			(2		)
Mortgage loans on real estate	(148		)	(636		)
Limited partnerships/corporations	(17		)	(30		)
Derivatives, net	(15		)	168
Policy loans, net	2			5
Short-term investments, net	(50		)	29
Short-term loan to affiliate, net	80			(100		)
Collateral received (delivered), net	23			(152		)
Other investments, net	(22		)	—
Net cash (used in) provided by investing activities	(283		)	4
Cash Flows from Financing Activities:
Deposits received for investment contracts	816			680
Maturities and withdrawals from investment contracts	(782		)	(792		)
Settlements on deposit contracts	(15		)	(17		)
Net cash provided by (used in) financing activities	19			(129		)
Net increase in cash and cash equivalents	56			8
Cash and cash equivalents, beginning of period	288			561
Cash and cash equivalents, end of period	$	344		$	569

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
	9

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

1.Business, Basis of Presentation and Significant Accounting Policies

Business

Voya Retirement Insurance and Annuity Company ("VRIAC") is a stock life insurance company domiciled in the State of Connecticut. VRIAC and its wholly owned subsidiaries (collectively, the "Company") provide financial products and services in the United States. VRIAC is authorized to conduct its insurance business in all states and in the District of Columbia and in Guam, Puerto Rico and the Virgin Islands.

Prior to May 2013, Voya Financial, Inc. ("Voya Financial"), together with its subsidiaries, including the Company was an indirect, wholly-owned subsidiary of ING Groep N.V. ("ING Group" or "ING"), a global financial services holding company based in The Netherlands. In May 2013, Voya Financial, Inc., completed its initial public offering of common stock, including the issuance and sale of common stock by Voya Financial, Inc. and the sale of shares of common stock owned indirectly by ING Group. Between October 2013 and March 2015, ING Group completed the sale of its remaining shares of common stock of Voya Financial, Inc. in a series of registered public offerings.

VRIAC is a direct, wholly owned subsidiary of Voya Holdings Inc. ("Parent"), which is a direct, wholly owned subsidiary of Voya Financial, Inc.

VRIAC has two wholly owned non-insurance subsidiaries, Voya Financial Partners, LLC ("VFP") and Directed Services LLC ("DSL").

On December 20, 2017, VRIAC's ultimate parent, Voya Financial, entered into a Master Transaction Agreement ("MTA") with VA Capital Company LLC ("VA Capital"), and Athene Holding Ltd ("Athene"), pursuant to which VA Capital's wholly owned subsidiary Venerable Holdings Inc. ("Venerable") will acquire certain of Voya Financial's assets, including all of the shares of capital stock of Voya Insurance and Annuity Company ("VIAC"), the Company's Iowa-domiciled insurance affiliate, as well as the membership interests of DSL, the Company's broker-dealer subsidiary (collectively the "Transaction"). The Transaction is expected to close in the second or third quarter of 2018, subject to conditions specified in the MTA, including receipt of required regulatory approvals and other conditions.

The Company offers qualified and nonqualified annuity contracts that include a variety of funding and payout options for individuals and employer-sponsored retirement plans qualified under Internal Revenue Code Sections 401, 403, 408, 457 and 501, as well as nonqualified deferred compensation plans and related services. The Company's products are offered primarily to employer-sponsored groups in the health care, government and education markets (collectively "tax exempt markets"), small to mid-sized corporations and individuals. The Company also provides stable value investment options, including separate account guaranteed investment contracts (e.g., GICs) and synthetic GICs, to institutional clients. Pension risk transfer group annuity solutions were previously offered to institutional plan sponsors who needed to transfer their defined benefit plan obligations to the Company. The Company discontinued sales of these solutions in late 2016 to better align business activities to the Company's priorities. The Company's products are generally distributed through pension professionals, independent agents and brokers, third-party administrators, banks, consultants, dedicated financial guidance, planning and advisory representatives associated with Voya Financial, Inc.'s retail broker-dealer, Voya Financial Advisors, Inc. ("Voya Financial Advisors").

Products offered by the Company include deferred and immediate (i.e., payout) annuity contracts. Company products also include programs offered to qualified plans and nonqualified deferred compensation plans that package administrative and record-keeping services, participant education, and retirement readiness planning tools along with a variety of investment options, including proprietary and non-proprietary mutual funds and variable and fixed investment options. In addition, the Company offers wrapper agreements entered into with retirement plans, which contain certain benefit responsive guarantees (i.e., guarantees of principal and previously accrued interest for benefits paid under the terms of the plan) with respect to portfolios of plan-owned assets not invested with the Company. Stable value products are also provided to institutional plan sponsors where the Company may or may not be providing other employer sponsored products and services.

The Company has one operating segment.

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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Basis of Presentation

The accompanying Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and are unaudited. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates.

The Condensed Consolidated Financial Statements include the accounts of VRIAC and its wholly owned subsidiaries, Voya Financial Partners, LLC ("VFP") and Directed Services LLC ("DSL"). Intercompany transactions and balances have been eliminated.

The accompanying Condensed Consolidated Financial Statements reflect adjustments (including normal, recurring adjustments) necessary to present fairly the financial position of the Company as of March 31, 2018, its results of operations, comprehensive income, changes in shareholder's equity and statements of cash flows for the three months ended March 31, 2018 and 2017, in conformity with U.S. GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2017 Consolidated Balance Sheet is from the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K, filed with the SEC. Therefore, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K.

Significant Accounting Policies

Investments

Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2016-01 "Financial Instruments-Overall (ASC Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01") (See the Adoption of New Pronouncements section below). As a result, the Company measures its equity securities at fair value and recognizes any changes in fair value in net income. Prior to adoption, equity securities were designated as available-for-sale and reported at fair value with unrealized capital gains (losses) recorded in Accumulated other comprehensive income (loss) ("AOCI").

Recognition of Revenue

As of January 1, 2018, the Company changed its method for recognizing costs to obtain and fulfill certain financial services contracts upon the adoption of ASU 2014-09, "Revenue from Contracts with Customers (ASC Topic 606)" ("ASU 2014-09"). (See the Adoption of New Pronouncements section below.)

Financial services revenue is disaggregated by type of service in the following table and represents approximately 13.7% of total revenue. For the three months ended March 31, 2018, a portion of the revenue recognized in the current period from distribution services is related to performance obligations satisfied in previous periods.

	Three Months Ended March 31, 2018
Service Line
Recordkeeping & administration	$	28
Distribution & shareholder servicing	44
Total financial services revenue	$	72

Receivables of $26 are included in Other assets on the Condensed Consolidated Balance Sheet as of March 31, 2018.

Financial Services Revenue

Revenue for various financial services is measured based on consideration specified in a contract with a customer and excludes any amounts collected on behalf of third parties. For recordkeeping and administration services, the Company recognizes revenue

11

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

as services are provided, generally over time. In addition, the Company may arrange for sub-advisory services for a customer under certain contracts. Revenue is recognized when the Company has satisfied a performance obligation by transferring control of a service to a customer. Contract terms are typically less than one year, and consideration is generally variable and due as services are rendered.

For distribution and shareholder servicing revenue, the Company provides distribution services at a point in time and shareholder services over time. Such revenue is recognized when the Company has satisfied a performance obligation and related consideration is received. Contract terms are less than one year, and consideration is variable. For distribution services, revenue may be recognized in periods subsequent to when the Company has satisfied a performance obligation, as a component of related consideration is constrained under certain contracts.

For a description of principal activities from which the Company generates revenue, see the Business section above for further information.

Revenue for various financial services is recorded in Fee income or Other revenue in the Condensed Consolidated Statements of Operations.

Contract Costs

Contract cost assets represent costs incurred to obtain or fulfill a contract that are expected to be recovered and, thus, have been capitalized and are subject to amortization. Capitalized contract costs include incremental costs of obtaining a contract and fulfillment costs that relate directly to a contract and generate or enhance resources of the Company that are used to satisfy performance obligations.

The Company defers (1) incremental commissions and variable compensation paid to the Company's direct sales force, consultant channel, and intermediary partners, as a result of obtaining certain financial services contracts and (2) account set-up expenses on certain recordkeeping contracts. The Company expenses as incurred deferrable contract costs for which the amortization period would be one year or less (based on the U.S. GAAP practical expedient) and other contract-related costs. The Company periodically reviews contract cost assets for impairment. Capitalized contract costs are included in Other assets on the Condensed Consolidated Balance Sheets, and costs expensed as incurred are included in Operating expenses in the Condensed Consolidated Statements of Operations.

As of March 31, 2018, contract cost assets were $91. Capitalized contract costs are amortized on a straight-line basis over the estimated lives of the contracts, which typically range from 5 to 15 years. This method is consistent with the transfer of services to which the assets relate. For the three months ended March 31, 2018, amortization expense of $5 was recorded in Operating expenses in the Condensed Consolidated Statements of Operations. There was no impairment loss in relation to the contract costs capitalized.

Adoption of New Pronouncements

Derecognition of Nonfinancial Assets

In February 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-05, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (ASC Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance & Accounting for Partial Sales of Nonfinancial Assets” (“ASU 2017-05”), which requires entities to apply certain recognition and measurement principles in ASU 2014-09, “Revenue from Contracts with Customers (ASC Topic 606)” (see Revenue from Contracts with Customers below) when they derecognize nonfinancial assets and in substance nonfinancial assets through sale or transfer, and the counterparty is not a customer.

The provisions of ASU 2017-05 were adopted January 1, 2018 using the modified retrospective approach. The adoption had no effect on the Company’s financial condition, results of operations, or cash flows.

12

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (ASC Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  The amendments provide guidance on eight specific cash flow issues.

The provisions of ASU 2016-15 were adopted on January 1, 2018 using the retrospective approach. The adoption had no effect on the Company’s financial condition, results of operations, or cash flows.

Share-Based Compensation

In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (ASC Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), which simplifies the accounting for share-based payment award transactions with respect to:

• The income tax consequences of awards,

• The impact of forfeitures on the recognition of expense for awards,

• Classification of awards as either equity or liabilities, and

• Classification on the statement of cash flows.

The provisions of ASU 2016-09 were adopted by the Company on January 1, 2017 using the transition method prescribed for each applicable provision:

• On a prospective basis, all excess tax benefits and tax deficiencies related to share-based compensation will be reported in Net income (loss), rather than Additional paid-in capital.  Prior year excess tax benefits will remain in Additional paid-in capital. 

• The Company elected to retrospectively adopt the requirement to present cash inflows related to excess tax benefits as operating activities. For the three months ended March 31, 2017, the Company had no excess tax benefits. 

The adoption of the remaining provisions of ASU 2016-09 had no effect on the Company's financial condition, results of operations, or cash flows.

Financial Instruments - Recognition and Measurement

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (ASC Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which requires:

• Equity investments (except those consolidated or accounted for under the equity method) to be measured at fair value with changes in fair value recognized in net income.

• Elimination of the disclosure of methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost.

• The use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes.

• Separate presentation in other comprehensive income of the portion of the total change in fair value of a liability resulting from a change in own credit risk if the liability is measured at fair value under the fair value option.

• Separate presentation on the balance sheet or financial statement notes of financial assets and financial liabilities by measurement category and form of financial asset.

The Company adopted the provisions of ASU 2016-01 on January 1, 2018 using a modified retrospective approach, except for certain provisions that are required to be applied prospectively. The impact to the January 1, 2018 Condensed Consolidated Balance Sheets was a $12 increase, net of tax, to Retained earnings (deficit) with a corresponding decrease of $12, net of tax, to AOCI to recognize the unrealized gain associated with Equity securities. The provisions that required prospective adoption had no effect on the Company's financial condition, results of operations, or cash flows. Under previous guidance, prior to January 1, 2018, Equity securities were classified as available for sale with changes in fair value recognized in Other comprehensive income (loss).

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is recognized when, or as, the entity satisfies a performance obligation under the contract.

13

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

ASU 2014-09 also updated the accounting for certain costs associated with obtaining and fulfilling contracts with customers and requires disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In addition, the FASB issued various amendments during 2016 to clarify the provisions and implementation guidance of ASU 2014-09. Revenue recognition for insurance contracts and financial instruments is explicitly scoped out of the guidance.

The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. The adoption had no impact on revenue recognition. However, the adoption resulted in a $90 increase in Other assets to capitalize costs to obtain and fulfill certain financial services contracts. This adjustment was offset by a related $18 decrease in Deferred income taxes, resulting in a net $72 increase to Retained earnings (deficit) on the Condensed Consolidated Balance Sheet as of January 1, 2018. In addition, disclosures have been updated to reflect accounting policy changes made as a result of the implementation of ASU 2014-09. (See the Significant Accounting Policies section above.)

Comparative information has not been adjusted and continues to be reported under previous revenue recognition guidance. The following tables summarize the impacts of adopting the provisions of ASU 2014-09 for the three months ended March 31, 2018. For the three months ended March 31, 2018, adopting the provisions of ASU 2014-09 had no impact on Net cash provided by operating activities.

Condensed Consolidated Balance Sheet
March 31, 2018
	As reported		Adjustments			Balance without adoption of ASU 2014-09
Assets
Other assets	$	173	$	(91	)	$	82
Total assets	$	108,106	$	(91	)	$	108,015
Liabilities and Shareholder's Equity
Deferred income taxes	$	117	$	(19	)	$	98
Total liabilities	104,734		(19		)	104,715
Shareholder's equity:
Retained earnings (deficit)	201		(72		)	129
Total shareholder's equity	3,372		(72		)	3,300
Total liabilities and shareholder's equity	$	108,106	$	(91	)	$	108,015

Condensed Consolidated Statement of Operations
For the Three Months Ended March 31, 2018
	As reported		Adjustments				Balance without adoption of ASU 2014-09
Benefits and expenses:
Operating expenses	$	108	$	1			$	109
Total benefits and expenses	412		1				413
Income (loss) before income taxes	112		(1		)		111
Income tax expense (benefit)	25		—			*	25
Net income (loss)	$	87	$	(1	)		$	86

*Less than $1.

14

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Future Adoption of Accounting Pronouncements

Reclassification of Certain Tax Effects

In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (ASC Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted Tax Cuts and Jobs Act of 2017 ("Tax Reform"). Stranded tax effects arise because U.S. GAAP requires that the impact of a change in tax laws or rates on deferred tax liabilities and assets be reported in net income, even if related to items recognized within accumulated other comprehensive income. The amount of the reclassification would be based on the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate, applied to deferred tax liabilities and assets reported within accumulated other comprehensive income.

The provisions of ASU 2018-02 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Initial adoption of ASU 2018-02 may be reported either in the period of adoption or on a retrospective basis in each period in which the effect of the change in the U.S. federal corporate income tax rate resulting from Tax Reform is recognized. The Company is currently evaluating the provisions of ASU 2018-02.

Derivatives & Hedging

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic ASC 815): Targeted Improvements to Accounting for Hedging Activities " ("ASU 2017-12"), which enables entities to better portray risk management activities in their financial statements, as follows:

• Expands an entity's ability to hedge nonfinancial and financial risk components and reduces complexity in accounting for fair value hedges of interest rate risk,

• Eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item,

• Eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness, and

• Modifies required disclosures.

The provisions of ASU 2017-12 are effective for fiscal years beginning after December 15, 2018, including interim periods, with early adoption permitted. Initial adoption of ASU 2017-12 is required to be reported using a modified retrospective approach, with the exception of the presentation and disclosure requirements which are required to be applied prospectively. The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2017-12.

Debt Securities

In March 2017, the FASB issued ASU 2017-08, "Receivables-Nonrefundable Fees and Other Costs (ASC Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date.

The provisions of ASU 2017-08 are effective for fiscal years beginning after December 15, 2018, including interim periods, with early adoption permitted. Initial adoption of ASU 2017-08 is required to be reported using a modified retrospective approach. The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2017-08.

Financial Instruments - Credit Losses

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which:

• Introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments,

• Modifies the impairment model for available-for-sale debt securities, and

• Provides a simplified accounting model for purchased financial assets with credit deterioration since their origination.

The provisions of ASU 2016-13 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. Initial adoption of ASU 2016-13 is required to be reported on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the

15

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

beginning of the year of adoption, except for certain provisions that are required to be applied prospectively. The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2016-13.

2.Investments

Fixed Maturities and Equity Securities

Available-for-sale and fair value option ("FVO") fixed maturities were as follows as of March 31, 2018:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		OTTI(3)(4)
Fixed maturities:
U.S. Treasuries	$	463	$	90	$	1	$	—	$	552	$	—
U.S. Government agencies and authorities	—		—		—		—		—		—
State, municipalities and political subdivisions	841		26		8		—		859		—
U.S. corporate public securities	8,342		523		73		—		8,792		—
U.S. corporate private securities	3,387		86		78		—		3,395		—
Foreign corporate public securities and foreign governments(1)	2,601		126		31		—		2,696		—
Foreign corporate private securities(1)	3,223		101		48		—		3,276		—
Residential mortgage-backed securities:
Agency	1,876		54		32		5		1,903		—
Non-Agency	740		51		4		5		792		4
Total Residential mortgage-backed securities	2,616		105		36		10		2,695		4
Commercial mortgage-backed securities	1,570		18		21		—		1,567		—
Other asset-backed securities	839		9		2		—		846		1
Total fixed maturities, including securities pledged	23,882		1,084		298		10		24,678		5
Less: Securities pledged	776		66		9		—		833		—
Total fixed maturities	$	23,106	$	1,018	$	289	$	10	$	23,845	$	5

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾ Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

⁽³⁾ Represents Other-than-Temporary-Impairments ("OTTI") reported as a component of Other comprehensive income (loss).

⁽⁴⁾ Amount excludes $160 of net unrealized gains on impaired available-for-sale securities.

16

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Available-for-sale and FVO fixed maturities and equity securities were as follows as of December 31, 2017:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		OTTI(3)(4)
Fixed maturities:
U.S. Treasuries	$	547	$	109	$	—	$	—	$	656	$	—
U.S. Government agencies and authorities	3		—		—		—		3		—
State, municipalities and political subdivisions	842		40		4		—		878		—
U.S. corporate public securities	8,476		786		26		—		9,236		—
U.S. corporate private securities	3,387		148		38		—		3,497		—
Foreign corporate public securities and foreign governments(1)	2,594		192		9		—		2,777		—
Foreign corporate private securities(1)	3,105		155		45		—		3,215		7
Residential mortgage-backed securities:
Agency	1,878		65		17		6		1,932		—
Non-Agency	639		54		2		6		697		4
Total Residential mortgage-backed securities	2,517		119		19		12		2,629		4
Commercial mortgage-backed securities	1,437		39		6		—		1,470		—
Other asset-backed securities	671		11		1		—		681		2
Total fixed maturities, including securities pledged	23,579		1,599		148		12		25,042		13
Less: Securities pledged	864		104		8		—		960		—
Total fixed maturities	22,715		1,495		140		12		24,082		13
Equity securities	45		15		—		—		60		—
Total fixed maturities and equity securities investments	$	22,760	$	1,510	$	140	$	12	$	24,142	$	13

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾ Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

⁽³⁾ Represents OTTI reported as a component of Other comprehensive income (loss).

⁽⁴⁾ Amount excludes $190 of net unrealized gains on impaired available-for-sale securities.

17

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The amortized cost and fair value of fixed maturities, including securities pledged, as of March 31, 2018, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. Mortgage-backed securities ("MBS") and Other asset-backed securities ("ABS") are shown separately because they are not due at a single maturity date.

	Amortized Cost		Fair Value
Due to mature:
One year or less	$	566	$	572
After one year through five years	4,392		4,498
After five years through ten years	6,029		6,072
After ten years	7,870		8,428
Mortgage-backed securities	4,186		4,262
Other asset-backed securities	839		846
Fixed maturities, including securities pledged	$	23,882	$	24,678

The investment portfolio is monitored to maintain a diversified portfolio on an ongoing basis. Credit risk is mitigated by monitoring concentrations by issuer, sector and geographic stratification and limiting exposure to any one issuer. 

As of March 31, 2018 and December 31, 2017, the Company did not have any investments in a single issuer, other than obligations of the U.S. Government and government agencies, with a carrying value in excess of 10% of the Company's Total shareholder's equity.

The following tables set forth the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Fair Value
March 31, 2018
Communications	$	1,184	$	82	$	8	$	1,258
Financial	2,717		117		22		2,812
Industrial and other companies	7,856		335		109		8,082
Energy	1,974		113		44		2,043
Utilities	2,775		142		35		2,882
Transportation	715		33		8		740
Total	$	17,221	$	822	$	226	$	17,817
December 31, 2017
Communications	$	1,145	$	114	$	1	$	1,258
Financial	2,750		185		4		2,931
Industrial and other companies	7,953		532		65		8,420
Energy	1,970		159		33		2,096
Utilities	2,725		216		11		2,930
Transportation	697		52		2		747
Total	$	17,240	$	1,258	$	116	$	18,382

18

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Fixed Maturities and Equity Securities:

The Company's fixed maturities are currently designated as available-for-sale, except those accounted for using the FVO. Prior to the adoption of ASU 2016-01 as of January 1, 2018, equity securities were also designated as available-for-sale. Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in AOCI and presented net of related changes in Deferred policy acquisition costs ("DAC"), Value of business acquired ("VOBA") and Deferred income taxes. In addition, certain fixed maturities have embedded derivatives, which are reported with the host contract on the Condensed Consolidated Balance Sheets.

The Company has elected the FVO for certain of its fixed maturities to better match the measurement of assets and liabilities in the Condensed Consolidated Statements of Operations. Certain collateralized mortgage obligations ("CMOs"), primarily interest-only and principal-only strips, are accounted for as hybrid instruments and reported at fair value with changes in the fair value recorded in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

The Company invests in various categories of CMOs, including CMOs that are not agency-backed, that are subject to different degrees of risk from changes in interest rates and defaults. The principal risks inherent in holding CMOs are prepayment and extension risks related to significant decreases and increases in interest rates resulting in the prepayment of principal from the underlying mortgages, either earlier or later than originally anticipated. As of March 31, 2018 and December 31, 2017, approximately 50.5% and 52.1%, respectively, of the Company’s CMO holdings, were invested in the above mentioned types of CMOs such as interest-only or principal-only strips, that are subject to more prepayment and extension risk than traditional CMOs.

Public corporate fixed maturity securities are distinguished from private corporate fixed maturity securities based upon the manner in which they are transacted. Public corporate fixed maturity securities are issued initially through market intermediaries on a registered basis or pursuant to Rule 144A under the Securities Act of 1933 (the "Securities Act") and are traded on the secondary market through brokers acting as principal. Private corporate fixed maturity securities are originally issued by borrowers directly to investors pursuant to Section 4(a)(2) of the Securities Act, and are traded in the secondary market directly with counterparties, either without the participation of a broker or in agency transactions.

Repurchase Agreements

As of March 31, 2018 and December 31, 2017, the Company did not have any securities pledged in dollar rolls, repurchase agreement transactions or reverse repurchase agreements.

Securities Lending

The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions, through a lending agent, for short periods of time. The Company has the right to approve any institution with whom the lending agent transacts on its behalf. Initial collateral is required at a rate of 102% of the market value of the loaned securities. The lending agent retains the collateral and invests it in high quality liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. The lending agent indemnifies the Company against losses resulting from the failure of a counterparty to return securities pledged where collateral is insufficient to cover the loss. As of March 31, 2018 and December 31, 2017, the fair value of loaned securities was $646 and $799, respectively, and is included in Securities pledged on the Condensed Consolidated Balance Sheets.

If cash is received as collateral, the lending agent retains the cash collateral and invests it in short-term liquid assets on behalf of the Company. As of March 31, 2018 and December 31, 2017, cash collateral retained by the lending agent and invested in short-term liquid assets on the Company's behalf was $581 and $744, respectively, and is recorded in Short-term investments under securities loan agreements, including collateral delivered on the Condensed Consolidated Balance Sheets. As of March 31, 2018 and December 31, 2017, liabilities to return collateral of $581 and $744, respectively, are included in Payables under securities loan agreements, including collateral held, on the Condensed Consolidated Balance Sheets.

The Company accepts non-cash collateral in the form of securities. The securities retained as collateral by the lending agent may not be sold or re-pledged, except in the event of default, and are not reflected on the Company’s Condensed Consolidated Balance Sheets. This collateral generally consists of U.S. Treasury, U.S. Government agency securities and MBS pools. As of March 31,

19

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

2018 and December 31, 2017, the fair value of securities retained as collateral by the lending agent on the Company’s behalf was $85 and $61, respectively.

The following table presents borrowings under securities lending transactions by class of collateral pledged for the dates indicated:

	March 31, 2018 (1)(2)		December 31, 2017 (1)(2)
U.S. Treasuries	$	80	$	177
U.S. corporate public securities	445		460
Foreign corporate public securities and foreign governments	141		168
Payables under securities loan agreements	$	666	$	805

⁽¹⁾ As of March 31, 2018 and December 31, 2017, borrowings under securities lending transactions include cash collateral of $581 and $744, respectively.

⁽²⁾ As of March 31, 2018 and December 31, 2017, borrowings under securities lending transactions include non-cash collateral of $85 and $61, respectively.

The Company's securities lending activities are conducted on an overnight basis, and all securities loaned can be recalled at any time. The Company does not offset assets and liabilities associated with its securities lending program.

Variable Interest Entities ("VIEs")

The Company holds certain VIEs for investment purposes. VIEs may be in the form of private placement securities, structured securities, securitization transactions or limited partnerships. The Company has reviewed each of its holdings and determined that consolidation of these investments in the Company’s financial statements is not required, as the Company is not the primary beneficiary, because the Company does not have both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation or right to potentially significant losses or benefits, for any of its investments in VIEs. The Company did not provide any non-contractual financial support and its carrying value represents the Company’s exposure to loss. The carrying value of the investments in VIEs was $425 and $411 as of March 31, 2018 and December 31, 2017, respectively; these investments are included in Limited partnerships/corporations on the Condensed Consolidated Balance Sheets. Income and losses recognized on these investments are reported in Net investment income in the Condensed Consolidated Statements of Operations.

Securitizations

The Company invests in various tranches of securitization entities, including Residential mortgage-backed securities ("RMBS"), Commercial mortgage-backed securities ("CMBS") and ABS. Through its investments, the Company is not obligated to provide any financial or other support to these entities. Each of the RMBS, CMBS and ABS entities are thinly capitalized by design and considered VIEs. The Company's involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer or investment manager, which are generally viewed to have the power to direct the activities that most significantly impact the securitization entities' economic performance, in any of these entities, nor does the Company function in any of these roles. The Company, through its investments or other arrangements, does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity. Therefore, the Company is not the primary beneficiary and does not consolidate any of the RMBS, CMBS and ABS entities in which it holds investments. These investments are accounted for as investments available-for-sale as described in the Fair Value Measurements Note to these Condensed Consolidated Financial Statements and unrealized capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS that are accounted for under the FVO, for which changes in fair value are reflected in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. The Company’s maximum exposure to loss on these structured investments is limited to the amount of its investment.

20

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Unrealized Capital Losses

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of March 31, 2018:

	Six Months or Less Below Amortized Cost				More Than Six Months and Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost				Total
	Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	15	$	—	$	—	$	—	$	12	$	1	$	27	$	1
State, municipalities and political subdivisions	183		2		17		1		89		5		289		8
U.S. corporate public securities	1,904		38		184		13		228		22		2,316		73
U.S. corporate private securities	932		17		146		8		475		53		1,553		78
Foreign corporate public securities and foreign governments	766		18		40		3		83		10		889		31
Foreign corporate private securities	711		13		70		21		166		14		947		48
Residential mortgage-backed	334		7		147		8		418		21		899		36
Commercial mortgage-backed	573		10		240		9		37		2		850		21
Other asset-backed	145		1		45		1		16		—		206		2
Total	$	5,563	$	106	$	889	$	64	$	1,524	$	128	$	7,976	$	298

21

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2017:

	Six Months or Less Below Amortized Cost				More Than Six Months and Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost				Total
	Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	18	$	—	$	—	$	—	$	12	$	—	$	30	$	—
State, municipalities and political subdivisions	34		—		1		—		91		4		126		4
U.S. corporate public securities	504		11		—		—		304		15		808		26
U.S. corporate private securities	226		2		46		2		499		34		771		38
Foreign corporate public securities and foreign governments	148		1		5		—		99		8		252		9
Foreign corporate private securities	135		38		13		—		161		7		309		45
Residential mortgage-backed	263		5		26		1		438		13		727		19
Commercial mortgage-backed	436		5		19		—		50		1		505		6
Other asset-backed	95		1		9		—		38		—		142		1
Total	$	1,859	$	63	$	119	$	3	$	1,692	$	82	$	3,670	$	148

Of the unrealized capital losses aged more than twelve months, the average market value of the related fixed maturities was 92.3% and 95.4% of the average book value as of March 31, 2018 and December 31, 2017, respectively.

22

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, for instances in which fair value declined below amortized cost by greater than or less than 20% for consecutive months as indicated in the tables below, were as follows as of the dates indicated:

	Amortized Cost				Unrealized Capital Losses				Number of Securities
	< 20%		> 20%		< 20%		> 20%		< 20%	> 20%
March 31, 2018
Six months or less below amortized cost	$	5,668	$	89	$	107	$	28	1,139	9
More than six months and twelve months or less below amortized cost	901		1		44		—		181	1
More than twelve months below amortized cost	1,536		79		95		24		324	6
Total	$	8,105	$	169	$	246	$	52	1,644	16
December 31, 2017
Six months or less below amortized cost	$	1,883	$	67	$	30	$	38	433	7
More than six months and twelve months or less below amortized cost	128		7		4		2		37	1
More than twelve months below amortized cost	1,661		72		53		21		335	7
Total	$	3,672	$	146	$	87	$	61	805	15

23

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, by market sector for instances in which fair value declined below amortized cost by greater than or less than 20% were as follows as of the dates indicated:

	Amortized Cost				Unrealized Capital Losses				Number of Securities
	< 20%		> 20%		< 20%		> 20%		< 20%	> 20%
March 31, 2018
U.S. Treasuries	$	28	$	—	$	1	$	—	6	—
State, municipalities and political subdivisions	297		—		8		—		167	—
U.S. corporate public securities	2,356		33		65		8		513	3
U.S. corporate private securities	1,564		67		57		21		176	2
Foreign corporate public securities and foreign governments	908		12		28		3		197	2
Foreign corporate private securities	939		56		28		20		101	5
Residential mortgage-backed	935		—		36		—		233	2
Commercial mortgage-backed	871		—		21		—		185	—
Other asset-backed	207		1		2		—		66	2
Total	$	8,105	$	169	$	246	$	52	1,644	16
December 31, 2017
U.S. Treasuries	$	30	$	—	$	—	$	—	6	—
State, municipalities and political subdivisions	130		—		4		—		96	—
U.S. corporate public securities	828		6		24		2		167	2
U.S. corporate private securities	743		66		18		20		71	2
Foreign corporate public securities and foreign governments	254		7		7		2		61	1
Foreign corporate private securities	288		66		8		37		35	6
Residential mortgage-backed	746		—		19		—		194	3
Commercial mortgage-backed	511		—		6		—		131	—
Other asset-backed	142		1		1		—		44	1
Total	$	3,672	$	146	$	87	$	61	805	15

Investments with fair values less than amortized cost are included in the Company's other-than-temporary impairments analysis. Impairments were recognized as disclosed in the "Evaluating Securities for Other-Than-Temporary Impairments" section below. The Company evaluates non-agency RMBS and ABS for "other-than-temporary impairments" each quarter based on actual and projected cash flows, after considering the quality and updated loan-to-value ratios reflecting current home prices of underlying collateral, forecasted loss severity, the payment priority within the tranche structure of the security and amount of any credit enhancements. The Company's assessment of current levels of cash flows compared to estimated cash flows at the time the securities were acquired (typically pre-2008) indicates the amount and the pace of projected cash flows from the underlying collateral has generally been lower and slower, respectively. However, since cash flows are typically projected at a trust level, the impairment review incorporates the security's position within the trust structure as well as credit enhancement remaining in the trust to determine whether an impairment is warranted. Therefore, while lower and slower cash flows will impact the trust, the effect on the valuation of a particular security within the trust will also be dependent upon the trust structure. Where the assessment continues to project full recovery of principal and interest on schedule, the Company has not recorded an impairment. Based on this analysis, the Company determined that the remaining investments in an unrealized loss position were not other-than-temporarily impaired and therefore no further other-than-temporary impairment was necessary.

24

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Troubled Debt Restructuring

The Company invests in high quality, well performing portfolios of commercial mortgage loans and private placements. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a troubled debt restructuring has occurred. A modification is a troubled debt restructuring when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific valuation allowance recorded in connection with the troubled debt restructuring. A valuation allowance may have been recorded prior to the quarter when the loan is modified in a troubled debt restructuring. Accordingly, the carrying value (net of the specific valuation allowance) before and after modification through a troubled debt restructuring may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. As of March 31, 2018, the Company did not have any new commercial mortgage loan or private placement troubled debt restructuring. As of December 31, 2017, the Company did not have any new commercial mortgage loan troubled debt restructuring and had one private placement troubled debt restructuring with a pre-modification and post modification carrying value of $3.

As of March 31, 2018 and December 31, 2017, the Company did not have any commercial mortgage loans or private placements modified in a troubled debt restructuring with a subsequent payment default.

Mortgage Loans on Real Estate

The Company's mortgage loans on real estate are all commercial mortgage loans held for investment, which are reported at amortized cost, less impairment write-downs and allowance for losses. The Company diversifies its commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. The Company manages risk when originating commercial mortgage loans by generally lending only up to 75% of the estimated fair value of the underlying real estate. Subsequently, the Company continuously evaluates mortgage loans based on relevant current information including a review of loan-specific credit quality, property characteristics and market trends. Loan performance is monitored on a loan-specific basis through the review of submitted appraisals, operating statements, rent revenues and annual inspection reports, among other items. This review ensures properties are performing at a consistent and acceptable level to secure the debt. The components to evaluate debt service coverage are received and reviewed at least annually to determine the level of risk.

The following table summarizes the Company's investment in mortgage loans as of the dates indicated:

	March 31, 2018								December 31, 2017
	Impaired		Non Impaired			Total			Impaired		Non Impaired			Total
Commercial mortgage loans	$	4	$	4,888		$	4,892		$	4	$	4,907		$	4,911
Collective valuation allowance for losses	—		(1		)	(1		)	N/A		(1		)	(1		)
Total net commercial mortgage loans	$	4	$	4,887		$	4,891		$	4	$	4,906		$	4,910
N/A- Not Applicable

There were no impairments taken on the mortgage loan portfolio for the three months ended March 31, 2018 and 2017.

The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated:

	March 31, 2018		December 31, 2017
Collective valuation allowance for losses, balance at January 1	$	1	$	1
Addition to (reduction of) allowance for losses	—		—
Collective valuation allowance for losses, end of period	$	1	$	1

25

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The carrying values and unpaid principal balances of impaired mortgage loans were as follows as of the dates indicated:

	March 31, 2018		December 31, 2017
Impaired loans without allowances for losses	$	4	$	4
Less: Allowances for losses on impaired loans	—		—
Impaired loans, net	$	4	$	4
Unpaid principal balance of impaired loans	$	6	$	6

As of March 31, 2018 and December 31, 2017 the Company did not have any impaired loans with allowances for losses.

The Company defines delinquent mortgage loans consistent with industry practice as 60 days past due. The Company's policy is to recognize interest income until a loan becomes 90 days delinquent or foreclosure proceedings are commenced, at which point interest accrual is discontinued. Interest accrual is not resumed until the loan is brought current.

There were no mortgage loans in the Company's portfolio in process of foreclosure as of March 31, 2018 and December 31, 2017.

There were no loans 30 days or less in arrears, with respect to principal and interest as of March 31, 2018 and December 31, 2017.

The following table presents information on the average investment during the period in impaired loans and interest income recognized on impaired and troubled debt restructured loans for the periods indicated:

	Three Months Ended March 31,
	2018		2017
Impaired loans, average investment during the period (amortized cost)(1)	$	4	$	5
Interest income recognized on impaired loans, on an accrual basis(1)	—		—
Interest income recognized on impaired loans, on a cash basis(1)	—		—
Interest income recognized on troubled debt restructured loans, on an accrual basis	—		—
(1)Includes amounts for Troubled debt restructured loans.

Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio, calculated at time of origination, is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.0 indicates that a property’s operations do not generate sufficient income to cover debt payments. These ratios are utilized as part of the review process described above.

The following table presents the LTV ratios as of the dates indicated:

	March 31, 2018 (1)		December 31, 2017 (1)
Loan-to-Value Ratio:
0% - 50%	$	343	$	341
>50% - 60%	1,291		1,256
>60% - 70%	2,971		3,042
>70% - 80%	276		262
>80% and above	11		10
Total Commercial mortgage loans	$	4,892	$	4,911

⁽¹⁾ Balances do not include collective valuation allowance for losses.

26

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table presents the DSC ratios as of the dates indicated:

	March 31, 2018 (1)		December 31, 2017 (1)
Debt Service Coverage Ratio:
Greater than 1.5x	$	3,793	$	3,902
>1.25x - 1.5x	355		340
>1.0x - 1.25x	645		600
Less than 1.0x	82		54
Commercial mortgage loans secured by land or construction loans	17		15
Total Commercial mortgage loans	$	4,892	$	4,911

⁽¹⁾ Balances do not include collective valuation allowance for losses.

Properties collateralizing mortgage loans are geographically dispersed throughout the United States, as well as diversified by property type, as reflected in the following tables as of the dates indicated:

	March 31, 2018 (1)				December 31, 2017 (1)
	Gross Carrying Value		% of Total		Gross Carrying Value		% of Total
Commercial Mortgage Loans by U.S. Region:
Pacific	$	987	20.2	%	$	985	20.1	%
South Atlantic	996		20.3	%	982		20.0	%
Middle Atlantic	1,101		22.4	%	1,097		22.4	%
West South Central	544		11.1	%	552		11.2	%
Mountain	463		9.5	%	457		9.3	%
East North Central	454		9.3	%	468		9.5	%
New England	76		1.6	%	77		1.6	%
West North Central	229		4.7	%	243		4.9	%
East South Central	42		0.9	%	50		1.0	%
Total Commercial mortgage loans	$	4,892	100.0	%	$	4,911	100.0	%

⁽¹⁾ Balances do not include collective valuation allowance for losses.

	March 31, 2018 (1)				December 31, 2017 (1)
	Gross Carrying Value		% of Total		Gross Carrying Value		% of Total
Commercial Mortgage Loans by Property Type:
Retail	$	1,383	28.3	%	$	1,383	28.1	%
Industrial	1,273		26.1	%	1,326		27.0	%
Apartments	951		19.4	%	948		19.3	%
Office	842		17.2	%	829		16.9	%
Hotel/Motel	178		3.6	%	177		3.6	%
Mixed Use	51		1.0	%	52		1.1	%
Other	214		4.4	%	196		4.0	%
Total Commercial mortgage loans	$	4,892	100.0	%	$	4,911	100.0	%

⁽¹⁾ Balances do not include collective valuation allowance for losses.

27

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table presents mortgages by year of origination as of the dates indicated:

	March 31, 2018 (1)		December 31, 2017 (1)
Year of Origination:
2018	$	137	$	—
2017	1,073		1,086
2016	857		867
2015	700		703
2014	523		538
2013	638		644
2012 and prior	964		1,073
Total Commercial mortgage loans	$	4,892	$	4,911

⁽¹⁾ Balances do not include collective valuation allowance for losses.

Evaluating Securities for Other-Than-Temporary Impairments

The Company performs a regular evaluation, on a security-by-security basis, of its available-for-sale securities holdings, including fixed maturity securities in accordance with its impairment policy in order to evaluate whether such investments are other-than-temporarily impaired.

The following tables identify the Company's credit-related and intent-related impairments included in the Condensed Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated:

	Three Months Ended March 31,
	2018				2017
	Impairment			No. of Securities	Impairment			No. of Securities
Foreign corporate private securities(1)	$	9		1	$	—		—
Residential mortgage-backed	—		*	6	—		*	8
Total	$	9		7	$	—	*	8
(1) Primarily U.S. dollar denominated.
*Less than $1.

The above table includes $9 of write-downs related to credit impairments for the three months ended March 31, 2018 in Other-than-temporary impairments, which are recognized in the Condensed Consolidated Statements of Operations. The above table includes immaterial write-downs related to credit impairments for the three months ended March 31, 2017. The remaining write-downs for the three months ended March 31, 2018 and March 31, 2017 related to intent impairments are immaterial.

The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities. In certain situations, new factors, including changes in the business environment, can change the Company’s previous intent to continue holding a security. Accordingly, these factors may lead the Company to record additional intent related capital losses.

28

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table presents the amount of credit impairments on fixed maturities for which a portion of the OTTI loss was recognized in Other comprehensive income (loss) and the corresponding changes in such amounts for the periods indicated:

	Three Months Ended March 31,
	2018		2017
Balance at January 1	$	16	$	9
Additional credit impairments:
On securities previously impaired	—		—
Reductions:
Increase in cash flows	—		—
Securities sold, matured, prepaid or paid down	10		1
Balance at March 31	$	6	$	8

Net Investment Income

The following table summarizes Net investment income for the periods indicated:

	Three Months Ended March 31,
	2018		2017
Fixed maturities	$	323	$	326
Equity securities	1		1
Mortgage loans on real estate	53		51
Policy loans	2		3
Short-term investments and cash equivalents	1		—
Other	19		15
Gross investment income	399		396
Less: Investment expenses	17		17
Net investment income	$	382	$	379

As of March 31, 2018 and December 31, 2017, the Company had $1 and $3, respectively, of investments in fixed maturities that did not produce net investment income. Fixed maturities are moved to a non-accrual status when the investment defaults.

Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to amortization of premiums and accretion of discounts. Such interest income is recorded in Net investment income in the Condensed Consolidated Statements of Operations.

Net Realized Capital Gains (Losses)

Net realized capital gains (losses) comprise the difference between the amortized cost of investments and proceeds from sale and redemption, as well as losses incurred due to the credit-related and intent-related other-than-temporary impairment of investments. Realized investment gains and losses are also primarily generated from changes in fair value of embedded derivatives within products and fixed maturities, changes in fair value of fixed maturities recorded at FVO and changes in fair value including accruals on derivative instruments, except for effective cash flow hedges. Upon the adoption of ASU 2016-01 as of January 1, 2018, realized capital gains (losses) also includes changes in fair value of equity securities.The cost of the investments on disposal is generally determined based on first-in-first-out ("FIFO") methodology.

29

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Net realized capital gains (losses) were as follows for the periods indicated:

	Three Months Ended March 31,
	2018			2017
Fixed maturities, available-for-sale, including securities pledged	$	(14	)	$	(19	)
Fixed maturities, at fair value option	(99		)	(59		)
Equity securities	(2		)	—
Derivatives	5			4
Embedded derivatives - fixed maturities	(2		)	(1		)
Guaranteed benefit derivatives	20			20
Other investments	5			—
Net realized capital gains (losses)	$	(87	)	$	(55	)
After-tax net realized capital gains (losses)	$	(79	)	$	(36	)

For the three months ended March 31, 2018, the change in fair value of equity securities still held as of March 31, 2018 was $(2).

Proceeds from the sale of fixed maturities and equity securities, available-for-sale and the related gross realized gains and losses, before tax, were as follows for the periods indicated:

	Three Months Ended March 31,
	2018		2017
Proceeds on sales	$	660	$	1,077
Gross gains	4		5
Gross losses	7		18

3.Derivative Financial Instruments

The Company enters into the following types of derivatives:

Interest rate caps: The Company uses interest rate cap contracts to hedge the interest rate exposure arising from duration mismatches between assets and liabilities. Interest rate caps are also used to hedge interest rate exposure if rates rise above a specified level. Such increases in rates will require the Company to incur additional expenses. The future payout from the interest rate caps fund this increased exposure. The Company pays an upfront premium to purchase these caps. The Company utilizes these contracts in non-qualifying hedging relationships.

Interest rate swaps: Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Credit default swaps: Credit default swaps are used to reduce credit loss exposure with respect to certain assets that the Company owns, or to assume credit exposure on certain assets that the Company does not own. Payments are made to, or received from, the

30

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

counterparty at specified intervals. In the event of a default on the underlying credit exposure, the Company will either receive a payment (purchased credit protection) or will be required to make a payment (sold credit protection) equal to the par minus recovery value of the swap contract. The Company utilizes these contracts in non-qualifying hedging relationships.

Currency forwards: The Company utilizes currency forward contracts to hedge currency exposure related to invested assets. The Company utilizes these contracts in non-qualifying hedging relationships.

Futures: Futures contracts are used to hedge against a decrease in certain equity indices. Such decreases may correlate to a decrease in variable annuity account values which would increase the possibility of the Company incurring an expense for guaranteed benefits in excess of account values. The Company also uses interest rate futures contracts to hedge its exposure to market risks due to changes in interest rates. The Company enters into exchange traded futures with regulated futures commissions that are members of the exchange. The Company also posts initial and variation margins, with the exchange, on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships. The Company may also use futures contracts as a hedge against an increase in certain equity indices. Such increases may result in increased payments to the holders of fixed index annuity ("FIA") contracts.

Swaptions: A swaption is an option to enter into a swap with a forward starting effective date. The Company uses swaptions to hedge the interest rate exposure associated with the minimum crediting rate and book value guarantees embedded in the retirement products that the Company offers. Increases in interest rates will generate losses on assets that are backing such liabilities. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium when it purchases the swaption. The Company utilizes these contracts in non-qualifying hedging relationships.

Options: The Company uses equity options to hedge against an increase in various equity indices. Such increases may result in increased payments to the holders of the FIA contracts. The Company pays an upfront premium to purchase these options. The Company utilizes these options in non-qualifying hedging relationships.

Managed custody guarantees ("MCGs"): The Company issues certain credited rate guarantees on variable fixed income portfolios that represent stand-alone derivatives. The market value is partially determined by, among other things, levels of or changes in interest rates, prepayment rates and credit ratings/spreads.

Embedded derivatives: The Company also invests in certain fixed maturity instruments and has issued certain products that contain embedded derivatives for which market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates, or credit ratings/spreads. In addition, the Company has entered into coinsurance with funds withheld arrangements, which contain embedded derivatives.

The Company's use of derivatives is limited mainly to economic hedging to reduce the Company's exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and equity market risk. It is the Company's policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement, which provides the Company with the legal right of offset. However, in accordance with the Chicago Mercantile Exchange ("CME") rule changes related to the variation margin payments, effective the first quarter of 2017, the Company is required to adjust the derivative balances with the variation margin payments related to our cleared derivatives executed through CME.

31

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The notional amounts and fair values of derivatives were as follows as of the dates indicated:

	March 31, 2018							December 31, 2017
	Notional Amount		Asset Fair Value		Liability Fair Value			Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives: Qualifying for hedge accounting(1)
Cash flow hedges:
Interest rate contracts	$	35	$	—	$	—		$	35	$	—	$	—
Foreign exchange contracts	569		1		77			533		—		52
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts	17,188		133		16			18,769		117		20
Foreign exchange contracts	11		—		—			26		—		—
Equity contracts	144		6		5			154		9		7
Credit contracts	681		8		4			771		10		6
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	N/A		10		—			N/A		12		—
Within products	N/A		—		95			N/A		—		117
Within reinsurance agreements	N/A		—		(51		)	N/A		—		(21		)
Total			$	158	$	146				$	148	$	181

⁽¹⁾ Open derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value.

N/A - Not Applicable

Based on the notional amounts, a substantial portion of the Company’s derivative positions was not designated or did not qualify for hedge accounting as part of a hedging relationship as of March 31, 2018 and December 31, 2017. The Company utilizes derivative contracts mainly to hedge exposure to variability in cash flows, interest rate risk, credit risk, foreign exchange risk and equity market risk. The majority of derivatives used by the Company are designated as product hedges, which hedge the exposure arising from insurance liabilities or guarantees embedded in the contracts the Company offers through various product lines. These derivatives do not qualify for hedge accounting as they do not meet the criteria of being "highly effective" as outlined in ASC Topic 815, but do provide an economic hedge, which is in line with the Company’s risk management objectives. The Company also uses derivatives contracts to hedge its exposure to various risks associated with the investment portfolio. The Company does not seek hedge accounting treatment for certain of these derivatives as they generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules outlined in ASC Topic 815. The Company also uses credit default swaps coupled with other investments in order to produce the investment characteristics of otherwise permissible investments that do not qualify as effective accounting hedges under ASC Topic 815.

32

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Although the Company has not elected to net its derivative exposures, the notional amounts and fair values of Over-The-Counter ("OTC") and cleared derivatives excluding exchange traded contracts and forward contracts (To Be Announced mortgage-backed securities) are presented in the tables below as of the dates indicated:

	March 31, 2018
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	681	$	8		$	4
Equity contracts	144		6			5
Foreign exchange contracts	580		1			77
Interest rate contracts	14,755		133			16
			148			102
Counterparty netting(1)			(38		)	(38		)
Cash collateral netting(1)			(106		)	—
Securities collateral netting(1)			—			(64		)
Net receivables/payables			$	4		$	—

⁽¹⁾ Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements.

	December 31, 2017
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	771	$	10		$	6
Equity contracts	154		9			7
Foreign exchange contracts	559		—			52
Interest rate contracts	17,286		117			20
			136			85
Counterparty netting(1)			(50		)	(50		)
Cash collateral netting(1)			(84		)	—
Securities collateral netting(1)			—			(30		)
Net receivables/payables			$	2		$	5

⁽¹⁾ Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements.

Collateral

Under the terms of the OTC Derivative International Swaps and Derivatives Association, Inc. ("ISDA") agreements, the Company may receive from, or deliver to, counterparties, collateral to assure that terms of the ISDA agreements will be met with regard to the Credit Support Annex ("CSA"). The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate. To the extent cash collateral is received and delivered, it is included in Payables under securities loan agreements, including collateral held and Short-term investments under securities loan agreements, including collateral delivered, respectively, on the Condensed Consolidated Balance Sheets and is reinvested in short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by the Company are the source of noncash collateral posted, which is reported in Securities pledged on the Condensed Consolidated Balance Sheets. As of March 31, 2018, the Company held $6 and $101 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2017, the Company held $11 and $74 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. In addition, as of March 31, 2018, the Company delivered $187 of securities and held no securities as collateral. As of December 31, 2017, the Company delivered $161 of securities and held no securities as collateral.

33

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Net realized gains (losses) on derivatives were as follows for the periods indicated:

	Three Months Ended March 31,
	2018			2017
Derivatives: Qualifying for hedge accounting(1)
Cash flow hedges:
Interest rate contracts	$	—		$	—
Foreign exchange contracts	1			7
Derivatives: Non-qualifying for hedge accounting(2)
Interest rate contracts	5			(3		)
Foreign exchange contracts	(1		)	(2		)
Equity contracts	—			1
Credit contracts	—			1
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments(2)	(2		)	(2		)
Within products(2)	20			20
Within reinsurance agreements(3)	29			(2		)
Total	$	52		$	20

⁽¹⁾ Changes in value for effective fair value hedges are recorded in Other net realized capital gains (losses). Changes in fair value upon disposal for effective cash flow hedges are amortized through Net investment income and the ineffective portion is recorded in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. For the three months ended March 31, 2018 and 2017, ineffective amounts were immaterial.

⁽²⁾ Changes in value are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

⁽³⁾ Changes in value are included in Interest credited and other benefits to contract owners/policyholders in the Condensed Consolidated Statements of Operations.

Credit Default Swaps

The Company has entered into various credit default swaps. When credit default swaps are sold, the Company assumes credit exposure to certain assets that it does not own. Credit default swaps may also be purchased to reduce credit exposure in the Company's portfolio. Credit default swaps involve a transfer of credit risk from one party to another in exchange for periodic payments. As of March 31, 2018, the fair values of credit default swaps of $8 and $4 were included in Derivatives assets and Derivatives liabilities, respectively, on the Condensed Consolidated Balance Sheets. As of December 31, 2017, the fair values of credit default swaps of $10 and $6 were included in Derivatives assets and Derivatives liabilities, respectively, on the Condensed Consolidated Balance Sheets. As of March 31, 2018 and December 31, 2017, the maximum potential future exposure to the Company was $422 and $497, respectively, on credit default swaps. These instruments are typically written for a maturity period of 5 years and contain no recourse provisions. If the Company's current debt and claims paying ratings were downgraded in the future, the terms in the Company's derivative agreements may be triggered, which could negatively impact overall liquidity.

34

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

4.Fair Value Measurements

Fair Value Measurement

The Company categorizes its financial instruments into a three-level hierarchy based on the priority of the inputs to the valuation technique, pursuant to ASU 2011-04, "Fair Value Measurements (ASC Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP" ("ASU 2011-04"). The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

When available, the estimated fair value of financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, including discounted cash flow methodologies, matrix pricing or other similar techniques.

35

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of March 31, 2018:

	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	494		$	58		$	—		$	552
U.S. Government agencies and authorities	—			—			—			—
State, municipalities and political subdivisions	—			859			—			859
U.S. corporate public securities	—			8,777			15			8,792
U.S. corporate private securities	—			2,744			651			3,395
Foreign corporate public securities and foreign governments(1)	—			2,696			—			2,696
Foreign corporate private securities (1)	—			3,175			101			3,276
Residential mortgage-backed securities	—			2,622			73			2,695
Commercial mortgage-backed securities	—			1,567			—			1,567
Other asset-backed securities	—			720			126			846
Total fixed maturities, including securities pledged	494			23,218			966			24,678
Equity securities	10			—			48			58
Derivatives:
Interest rate contracts	—			133			—			133
Foreign exchange contracts	—			1			—			1
Equity contracts	—			6			—			6
Credit contracts	—			8			—			8
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,010			—			—			1,010
Assets held in separate accounts	68,387			5,091			11			73,489
Total assets	$	69,901		$	28,457		$	1,025		$	99,383
Percentage of Level to Total	70		%	29		%	1		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	18		$	18
Stabilizer and MCGs	—			—			77			77
Other derivatives:
Interest rate contracts	—			16			—			16
Foreign exchange contracts	—			77			—			77
Equity contracts	—			5			—			5
Credit contracts	—			4			—			4
Embedded derivative on reinsurance	—			(51		)	—			(51		)
Total liabilities	$	—		$	51		$	95		$	146

⁽¹⁾ Primarily U.S. dollar denominated.

36

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2017:

	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	597		$	59		$	—		$	656
U.S. Government agencies and authorities	—			3			—			3
State, municipalities and political subdivisions	—			878			—			878
U.S. corporate public securities	—			9,210			26			9,236
U.S. corporate private securities	—			2,855			642			3,497
Foreign corporate public securities and foreign governments(1)	—			2,777			—			2,777
Foreign corporate private securities (1)	—			3,123			92			3,215
Residential mortgage-backed securities	—			2,608			21			2,629
Commercial mortgage-backed securities	—			1,463			7			1,470
Other asset-backed securities	—			638			43			681
Total fixed maturities, including securities pledged	597			23,614			831			25,042
Equity securities, available-for-sale	10			—			50			60
Derivatives:
Interest rate contracts	—			117			—			117
Foreign exchange contracts	—			—			—			—
Equity contracts	—			9			—			9
Credit contracts	—			10			—			10
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,078			—			—			1,078
Assets held in separate accounts	67,966			5,059			11			73,036
Total assets	$	69,651		$	28,809		$	892		$	99,352
Percentage of Level to total	70		%	29		%	1		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	20		$	20
Stabilizer and MCGs	—			—			97			97
Other derivatives:
Interest rate contracts	—			20			—			20
Foreign exchange contracts	—			52			—			52
Equity contracts	—			7			—			7
Credit contracts	—			6			—			6
Embedded derivative on reinsurance	—			(21		)	—			(21		)
Total liabilities	$	—		$	64		$	117		$	181

⁽¹⁾ Primarily U.S. dollar denominated.

37

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Valuation of Financial Assets and Liabilities at Fair Value

Certain assets and liabilities are measured at estimated fair value on the Company's Condensed Consolidated Balance Sheets. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The exit price and the transaction (or entry) price will be the same at initial recognition in many circumstances. However, in certain cases, the transaction price may not represent fair value. The fair value of a liability is based on the amount that would be paid to transfer a liability to a third-party with an equal credit standing. Fair value is required to be a market-based measurement that is determined based on a hypothetical transaction at the measurement date, from a market participant's perspective. The Company considers three broad valuation approaches when a quoted price is unavailable: (i) the market approach, (ii) the income approach and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given the instrument being measured and the availability of sufficient inputs. The Company prioritizes the inputs to fair valuation approaches and allows for the use of unobservable inputs to the extent that observable inputs are not available.

The Company utilizes a number of valuation methodologies to determine the fair values of its financial assets and liabilities in conformity with the concepts of exit price and the fair value hierarchy as prescribed in ASC Topic 820. Valuations are obtained from third-party commercial pricing services, brokers and industry-standard, vendor-provided software that models the value based on market observable inputs. The valuations obtained from third-party commercial pricing services are non-binding. The Company reviews the assumptions and inputs used by third-party commercial pricing services for each reporting period in order to determine an appropriate fair value hierarchy level. The documentation and analysis obtained from third-party commercial pricing services are reviewed by the Company, including in-depth validation procedures confirming the observability of inputs. The valuations are reviewed and validated monthly through the internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes.

Fixed maturities: The fair values for actively traded marketable bonds are determined based upon the quoted market prices and are classified as Level 1 assets. Assets in this category primarily include certain U.S. Treasury securities.

For fixed maturities classified as Level 2 assets, fair values are determined using a matrix-based market approach, based on prices obtained from third-party commercial pricing services and the Company’s matrix and analytics-based pricing models, which in each case incorporate a variety of market observable information as valuation inputs. The market observable inputs used for these fair value measurements, by fixed maturity asset class, are as follows:

U.S. Treasuries: Fair value is determined using third-party commercial pricing services, with the primary inputs being stripped interest and principal U.S. Treasury yield curves that represent a U.S. Treasury zero-coupon curve.

U.S. government agencies and authorities, State, municipalities and political subdivisions: Fair value is determined using third-party commercial pricing services, with the primary inputs being U.S. Treasury yield curves, trades of comparable securities, credit spreads off benchmark yields and issuer ratings.

U.S. corporate public securities, Foreign corporate public securities and foreign governments: Fair value is determined using third-party commercial pricing services, with the primary inputs being benchmark yields, trades of comparable securities, issuer ratings, bids and credit spreads off benchmark yields.

U.S. corporate private securities and Foreign corporate private securities: Fair values are determined using a matrix and analytics-based pricing model. The model incorporates the current level of risk-free interest rates, current corporate credit spreads, credit quality of the issuer and cash flow characteristics of the security. The model also considers a liquidity spread, the value of any collateral, the capital structure of the issuer, the presence of guarantees, and prices and quotes for comparably rated publicly traded securities.

RMBS, CMBS and ABS: Fair value is determined using third-party commercial pricing services, with the primary inputs being credit spreads off benchmark yields, prepayment speed assumptions, current and forecasted loss severity, debt service coverage ratios, collateral type, payment priority within tranche and the vintage of the loans underlying the security.

38

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Generally, the Company does not obtain more than one vendor price from pricing services per instrument. The Company uses a hierarchy process in which prices are obtained from a primary vendor and, if that vendor is unable to provide the price, the next vendor in the hierarchy is contacted until a price is obtained or it is determined that a price cannot be obtained from a commercial pricing service. When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited.  Securities priced using independent broker quotes are classified as Level 3.

Broker quotes and prices obtained from pricing services are reviewed and validated through an internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes. After review, for those instruments where the price is determined to be appropriate, the unadjusted price provided is used for financial statement valuation. If it is determined that the price is questionable, another price may be requested from a different vendor. The internal valuation committee then reviews all prices for the instrument again, along with information from the review, to determine which price best represents exit price for the instrument.

Fair values of privately placed bonds are determined primarily using a matrix-based pricing model and are generally classified as Level 2 assets.  The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. Also considered are factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company's evaluation of the borrower's ability to compete in its relevant market.  Using this data, the model generates estimated market values which the Company considers reflective of the fair value of each privately placed bond.

Equity securities: Fair values of publicly traded equity securities are based upon quoted market price and are classified as Level 1 assets. Other equity securities, typically private equities or equity securities not traded on an exchange, are valued by other sources such as analytics or brokers and are classified as Level 2 or Level 3 assets.

Derivatives: Derivatives are carried at fair value, which is determined using the Company's derivative accounting system in conjunction with observable key financial data from third party sources, such as yield curves, exchange rates, S&P 500 Index prices, London Interbank Offered Rates ("LIBOR") and Overnight Index Swap ("OIS") rates. The Company uses OIS for valuations of collateralized interest rate derivatives, which are obtained from third-party sources. For those derivatives that are unable to be valued by the accounting system, the Company typically utilizes values established by third-party brokers. Counterparty credit risk is considered and incorporated in the Company's valuation process through counterparty credit rating requirements and monitoring of overall exposure.  It is the Company's policy to transact only with investment grade counterparties with a credit rating of A- or better. The Company's nonperformance risk is also considered and incorporated in the Company's valuation process. Valuations for the Company's futures and interest rate forward contracts are based on unadjusted quoted prices from an active exchange and, therefore, are classified as Level 1. The Company also has certain credit default swaps and options that are priced by third party vendors or by using models that primarily use market observable inputs, but contain inputs that are not observable to market participants, which have been classified as Level 3. The remaining derivative instruments are valued based on market observable inputs and are classified as Level 2.

Cash and cash equivalents, Short-term investments and Short-term investments under securities loan agreement: The carrying amounts for cash reflect the assets' fair values. The fair values for cash equivalents and most short-term investments are determined based on quoted market prices. These assets are classified as Level 1. Other short-term investments are valued and classified in the fair value hierarchy consistent with the policies described herein, depending on investment type.

Assets held in separate accounts: Assets held in separate accounts are reported at the quoted fair values of the underlying investments in the separate accounts.  The underlying investments include mutual funds, short-term investments and cash, the valuations of which are based upon a quoted market price and are included in Level 1.  Fixed maturity valuations are obtained from third-party commercial pricing services and brokers and are classified in the fair value hierarchy consistent with the policy described above for fixed maturities.

Guaranteed benefit derivatives: The index-crediting feature in the Company's FIA contract is an embedded derivative that is required to be accounted for separately from the host contract. The fair value of the obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by market implied assumptions. These derivatives are classified as Level 3 liabilities in the fair value hierarchy.

39

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The Company records reserves for Stabilizer and MCG contracts containing guaranteed credited rates. The guarantee is treated as an embedded derivative or a stand-alone derivative (depending on the underlying product) and is required to be reported at fair value. The estimated fair value is determined based on the present value of projected future claims, minus the present value of future guaranteed premiums. At inception of the contract, the Company projects a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using relevant actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by using stochastic techniques under a variety of risk neutral scenarios and other market implied assumptions. These derivatives are classified as Level 3 liabilities.

The discount rate used to determine the fair value of the embedded derivatives and stand-alone derivative includes an adjustment for nonperformance risk. The nonperformance risk adjustment incorporates a blend of observable, similarly rated peer holding company credit default swap spreads, adjusted to reflect the credit quality of the Company, the issuer of the guarantee, as well as an adjustment to reflect the priority of policyholder claims.

The Company's valuation actuaries are responsible for the policies and procedures for valuing the embedded derivatives, reflecting the capital markets and actuarial valuation inputs and nonperformance risk in the estimate of the fair value of the embedded derivatives. The actuarial and capital market assumptions for each liability are approved by each product's Chief Risk Officer ("CRO"), including an independent annual review by the CRO. Models used to value the embedded derivatives must comply with the Company's governance policies.

Quarterly, an attribution analysis is performed to quantify changes in fair value measurements and a sensitivity analysis is used to analyze the changes. The changes in fair value measurements are also compared to corresponding movements in the hedge target to assess the validity of the attributions. The results of the attribution analysis are reviewed by the valuation actuaries, responsible CFOs, Controllers, CROs and/or others as nominated by management.

Embedded derivatives on reinsurance: The carrying value of embedded derivatives is estimated based upon the change in the fair value of the assets supporting the funds withheld payable under reinsurance agreements. The fair value of the embedded derivatives is based on market observable inputs and is classified as Level 2.

Transfers in and out of Level 1 and 2

There were no securities transferred between Level 1 and Level 2 for the three months ended March 31, 2018 and 2017. The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.

Level 3 Financial Instruments

The fair values of certain assets and liabilities are determined using prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (i.e., Level 3 as defined by ASC Topic 820), including but not limited to liquidity spreads for investments within markets deemed not currently active. These valuations, whether derived internally or obtained from a third-party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. In addition, the Company has determined, for certain financial instruments, an active market is such a significant input to determine fair value that the presence of an inactive market may lead to classification in Level 3. In light of the methodologies employed to obtain the fair values of financial assets and liabilities classified as Level 3, additional information is presented below.

40

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table summarizes the change in fair value of the Company’s Level 3 assets and liabilities and transfers in and out of Level 3 for the period indicated:

	Three Months Ended March 31, 2018
	Fair Value as of January 1			Total Realized/Unrealized Gains (Losses) Included in:						Purchases		Issuances			Sales			Settlements			Transfers into Level 3(3)		Transfers out of Level 3(3)			Fair Value as of March 31			Change in Unrealized Gains (Losses) Included in Earnings(4)
				Net Income			OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities	$	26		$	—		$	—		$	—	$	—		$	(11	)	$	—		$	—	$	—		$	15		$	—
U.S. Corporate private securities	642			—			(15		)	12		—			—			(2		)	14		—			651			—
Foreign corporate private securities(1)	92			(9		)	18			—		—			—			—			—		—			101			(9		)
Residential mortgage-backed securities	21			(1		)	—			58		—			—			—			—		(5		)	73			(2		)
Commercial mortgage-backed securities	7			—			—			—		—			—			—			—		(7		)	—			—
Other asset-backed securities	43			—			—			100		—			—			(1		)	—		(16		)	126			—
Total fixed maturities, including securities pledged	831			(10		)	3			170		—			(11		)	(3		)	14		(28		)	966			(11		)
Equity securities	50			(2		)	—			—		—			—			—			—		—			48			(2		)
Derivatives:
Guaranteed benefit derivatives:
Stabilizer and MCGs(2)	(97		)	21			—			—		(1		)	—			—			—		—			(77		)	—
FIA(2)	(20		)	(1		)	—			—		1			—			2			—		—			(18		)	—
Assets held in separate accounts(5)	11			—			—			—		—			—			—			—		—			11			—
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.
(4) For financial instruments still held as of March 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(5) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.

41

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following tables summarize the change in fair value of the Company’s Level 3 assets and liabilities and transfers in and out of Level 3 for the periods indicated:

	Three Months Ended March 31, 2017
	Fair Value as of January 1			Total Realized/Unrealized Gains (Losses) Included in:						Purchases		Issuances			Sales		Settlements			Transfers into Level 3(3)		Transfers out of Level 3(3)			Fair Value as of March 31			Change in Unrealized Gains (Losses) Included in Earnings(4)
				Net Income			OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities	$	7		$	—		$	—		$	5	$	—		$	—	$	(1	)	$	19	$	—		$	30		$	—
U.S. Corporate private securities	525			—			—			37		—			—		(1		)	4		—			565			—
Foreign corporate private securities(1)	154			—			(1		)	18		—			—		(10		)	—		—			161			—
Residential mortgage-backed securities	21			(1		)	(1		)	10		—			—		—			1		—			30			(1		)
Commercial mortgage-backed securities	10			—			—			—		—			—		(1		)	—		(3		)	6			—
Other asset-backed securities	27			—			1			10		—			—		—			—		(15		)	23			—
Total fixed maturities, including securities pledged	744			(1		)	(1		)	80		—			—		(13		)	24		(18		)	815			(1		)
Equity securities, available-for-sale	48			—			—			2		—			—		—			—		—			50			—
Derivatives:
Guaranteed benefit derivatives:
Stabilizer and MCGs(2)	(151		)	21			—			—		(1		)	—		—			—		—			(131		)	—
FIA(2)	(23		)	(1		)	—			—		—			—		1			—		—			(23		)	—
Assets held in separate accounts(5)	6			—			—			5		—			—		—			2		—			13			—
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.
(4) For financial instruments still held as of March 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(5) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.

42

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

For the three months ended March 31, 2018 and 2017, the transfers in and out of Level 3 for fixed maturities and separate accounts were due to the variation in inputs relied upon for valuation each quarter. Securities that are primarily valued using independent broker quotes when prices are not available from one of the commercial pricing services are reflected as transfers into Level 3. When securities are valued using more widely available information, the securities are transferred out of Level 3 and into Level 1 or 2, as appropriate.

Significant Unobservable Inputs

The Company's Level 3 fair value measurements of its fixed maturities, equity securities and equity and credit derivative contracts are primarily based on broker quotes for which the quantitative detail of the unobservable inputs is neither provided nor reasonably corroborated, thus negating the ability to perform a sensitivity analysis. The Company performs a review of broker quotes by performing a monthly price variance comparison and back tests broker quotes to recent trade prices.

Quantitative information about the significant unobservable inputs used in the Company's Level 3 fair value measurements of its guaranteed benefit derivatives is presented in the following sections and table.

Significant unobservable inputs used in the fair value measurements of FIAs include nonperformance risk and policyholder behavior assumptions, such as lapses and partial withdrawals. Such inputs are monitored quarterly.

The significant unobservable inputs used in the fair value measurement of the Stabilizer embedded derivatives and MCG derivative are interest rate implied volatility, nonperformance risk, lapses and policyholder deposits. Such inputs are monitored quarterly.

Following is a description of selected inputs:

Interest Rate Volatility: A term-structure model is used to approximate implied volatility for the swap rates for the Stabilizer and MCG fair value measurements. Where no implied volatility is readily available in the market, an alternative approach is applied based on historical volatility.

Nonperformance Risk: For the estimate of the fair value of embedded derivatives associated with the Company's product guarantees, the Company uses a blend of observable, similarly rated peer company credit default swap spreads, adjusted to reflect the credit quality of the Company and the priority of policyholder claims.

Actuarial Assumptions: Management regularly reviews actuarial assumptions, which are based on the Company's experience and periodically reviewed against industry standards. Industry standards and Company experience may be limited on certain products.

43

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table presents the unobservable inputs for Level 3 fair value measurements as of March 31, 2018:

	Range(1)
Unobservable Input	FIA		Stabilizer / MCG
Interest rate implied volatility	—		0.1% to 6.5%
Nonperformance risk	0.07% to 1.1%		0.07% to 1.1%
Actuarial Assumptions:
Partial Withdrawals	0% to 7%		—
Lapses	0% to 42%	(2)	0% to 50%	(3)
Policyholder Deposits(4)	—		0% to 50%	(3)

⁽¹⁾ Represents the range of reasonable assumptions that management has used in its fair value calculations.

⁽²⁾ Lapse rates tend to be lower during the contractual surrender charge period and higher after the surrender charge period ends; the highest lapse rates occur in the year immediately after the end of the surrender charge period.

⁽³⁾ Stabilizer contracts with recordkeeping agreements have different range of lapse and policyholder deposit assumptions from Stabilizer (Investment only) and MCG contracts as shown below:

	Percentage of Plans		Overall Range of Lapse Rates	Range of Lapse Rates for 85% of Plans	Overall Range of Policyholder Deposits	Range of Policyholder Deposits for 85% of Plans
Stabilizer (Investment Only) and MCG Contracts	92	%	0-25%	0-15%	0-30%	0-15%
Stabilizer with Recordkeeping Agreements	8	%	0-50%	0-30%	0-50%	0-25%
Aggregate of all plans	100	%	0-50%	0-30%	0-50%	0-25%

⁽⁴⁾ Measured as a percentage of assets under management or assets under administration.

The following table presents the unobservable inputs for Level 3 fair value measurements as of December 31, 2017:

	Range(1)
Unobservable Input	FIA		Stabilizer / MCG
Interest rate implied volatility	—		0.1% to 6.3%
Nonperformance risk	0.02% to 1.1%		0.02% to 1.1%
Actuarial Assumptions:
Partial Withdrawals	0.5% to 7%		—
Lapses	0% to 42%	(2)	0% to 50%	(3)
Policyholder Deposits(4)	—		0% to 50%	(3)

⁽¹⁾ Represents the range of reasonable assumptions that management has used in its fair value calculations.

⁽²⁾ Lapse rates tend to be lower during the contractual surrender charge period and higher after the surrender charge period ends; the highest lapse rates occur in the year immediately after the end of the surrender charge period.

⁽³⁾ Stabilizer contracts with recordkeeping agreements have different range of lapse and policyholder deposit assumptions from Stabilizer (Investment only) and MCG contracts as shown below:

	Percentage of Plans		Overall Range of Lapse Rates	Range of Lapse Rates for 85% of Plans	Overall Range of Policyholder Deposits	Range of Policyholder Deposits for 85% of Plans
Stabilizer (Investment Only) and MCG Contracts	92	%	0-25%	0-15%	0-30%	0-15%
Stabilizer with Recordkeeping Agreements	8	%	0-50%	0-30%	0-50%	0-25%
Aggregate of all plans	100	%	0-50%	0-30%	0-50%	0-25%

⁽⁴⁾ Measured as a percentage of assets under management or assets under administration.

Generally, the following will cause an increase (decrease) in the FIA embedded derivative fair value liability:

• A decrease (increase) in nonperformance risk

• A decrease (increase) in lapses

44

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Generally, the following will cause an increase (decrease) in the derivative and embedded derivative fair value liabilities related to Stabilizer and MCG contracts:

• An increase (decrease) in interest rate implied volatility

• A decrease (increase) in nonperformance risk

• A decrease (increase) in lapses

• A decrease (increase) in policyholder deposits

The Company notes the following interrelationships:

• Generally, an increase (decrease) in interest rate volatility will increase (decrease) lapses of Stabilizer and MCG contracts due to dynamic participant behavior.

Other Financial Instruments

The following disclosures are made in accordance with the requirements of ASC Topic 825 which requires disclosure of fair value information about financial instruments, whether or not recognized at fair value on the Condensed Consolidated Balance Sheets.

ASC Topic 825 excludes certain financial instruments, including insurance contracts and all nonfinancial instruments from its disclosure requirements.  Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

45

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The carrying values and estimated fair values of the Company’s financial instruments as of the dates indicated:

	March 31, 2018						December 31, 2017
	Carrying Value			Fair Value			Carrying Value			Fair Value
Assets:
Fixed maturities, including securities pledged	$	24,678		$	24,678		$	25,042		$	25,042
Equity securities	58			58			60			60
Mortgage loans on real estate	4,891			4,885			4,910			4,924
Policy loans	212			212			214			214
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,010			1,010			1,078			1,078
Derivatives	148			148			136			136
Notes receivable from affiliate	175			215			175			222
Short-term loan to affiliate	—			—			80			80
Other Investments	22			22			—			—
Assets held in separate accounts	73,489			73,489			73,036			73,036
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities(1)	25,599			28,720			25,314			29,431
Funding agreements with fixed maturities	225			230			—			—
Supplementary contracts, immediate annuities and other	357			403			365			418
Deposit liabilities	77			122			135			198
Derivatives:
Guaranteed benefit derivatives:
FIA	18			18			20			20
Stabilizer and MCGs	77			77			97			97
Other derivatives	102			102			85			85
Long-term debt	4			4			5			5
Embedded derivatives on reinsurance	(51		)	(51		)	(21		)	(21		)

⁽¹⁾ Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Guaranteed benefit derivatives section of the table above.

46

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table presents the classification of financial instruments which are not carried at fair value on the Condensed Consolidated Balance Sheets:

Financial Instrument	Classification
Mortgage loans on real estate	Level 3
Policy loans	Level 2
Notes receivable from affiliates	Level 2
Short-term loan to affiliate	Level 2
Other investments	Level 2
Funding agreements without fixed maturities and deferred annuities	Level 3
Funding agreements with fixed maturities	Level 2
Supplementary contracts, immediate annuities and other	Level 3
Deposit liabilities	Level 3
Long-term debt	Level 2

47

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

5.Deferred Policy Acquisition Costs and Value of Business Acquired

The following tables present a rollforward of DAC and VOBA for the periods indicated:

	2018
	DAC			VOBA				Total
Balance as of January 1, 2018	$	385		$	367			$	752
Deferrals of commissions and expenses	15			2				17
Amortization:
Amortization, excluding unlocking	(18		)	(20		)		(38		)
Unlocking (1)	(29		)	(17		)		(46		)
Interest accrued	9			10			(2)	19
Net amortization included in the Condensed Consolidated Statements of Operations	(38		)	(27		)		(65		)
Change due to unrealized capital gains/losses on available-for-sale securities	85			108				193
Balance as of March 31, 2018	$	447		$	450			$	897

	2017
	DAC			VOBA				Total
Balance as of January 1, 2017	$	476		$	537			$	1,013
Deferrals of commissions and expenses	21			1				22
Amortization:
Amortization, excluding unlocking	(17		)	(20		)		(37		)
Unlocking (1)	1			13				14
Interest accrued	9			12			(2)	21
Net amortization included in the Condensed Consolidated Statements of Operations	(7		)	5				(2		)
Change due to unrealized capital gains/losses on available-for-sale securities	(14		)	(19		)		(33		)
Balance as of March 31, 2017	$	476		$	524			$	1,000

⁽¹⁾ DAC/VOBA unlocking includes the impacts of annual review of assumptions which typically occurs in the third quarter; and retrospective and prospective unlocking.Additionally, the 2018 amounts include unfavorable unlocking of DAC and VOBA of $43, associated with an update to assumptions related to customer consents of changes to guaranteed minimum interest rate provisions.

⁽²⁾ Interest accrued at the following rates for VOBA: 5.5% to 7.0%during 2018 and2017.

48

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

6.Accumulated Other Comprehensive Income (Loss)

Shareholder’s equity included the following components of AOCI as of the dates indicated:

	March 31,
	2018			2017
Fixed maturities, net of OTTI	$	786		$	997
Equity securities	—			16
Derivatives	93			185
DAC/VOBA and Sales inducements adjustment on available-for-sale securities	(240		)	(357		)
Premium deficiency reserve adjustment	(82		)	(94		)
Other	—			—
Unrealized capital gains (losses), before tax	557			747
Deferred income tax asset (liability)	(123		)	(139		)
Unrealized capital gains (losses), after tax	434			608
Pension and other postretirement benefits liability, net of tax	4			5
AOCI	$	438		$	613

49

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Changes in AOCI, including the reclassification adjustments recognized in the Condensed Consolidated Statements of Operations were as follows for the periods indicated:

	Three Months Ended March 31, 2018
	Before-Tax Amount				Income Tax				After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	(687	)		$	153		(4)	$	(534	)
Equity securities	—			(3)	—				—
Other	(5		)		1				(4		)
OTTI	7				(1		)		6
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	14				(3		)		11
DAC/VOBA and Sales inducements	194			(1)	(41		)		153
Premium deficiency reserve adjustment	33				(7		)		26
Change in unrealized gains/losses on available-for-sale securities	(444		)		102				(342		)
Derivatives:
Derivatives	(25		)	(2)	5				(20		)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(6		)		1				(5		)
Change in unrealized gains/losses on derivatives	(31		)		6				(25		)
Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(1		)		—				(1		)
Change in pension and other postretirement benefits liability	(1		)		—				(1		)
Change in Other comprehensive income (loss)	$	(476	)		$	108			$	(368	)

⁽¹⁾ See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

⁽²⁾ See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.

⁽³⁾ Balance reclassified to Retained earnings due to adoption of ASU 2016-01.

⁽⁴⁾ Amount includes $11 valuation allowance. See the Income Taxes Note to these Condensed Consolidated Financial Statements for additional information.

50

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

	Three Months Ended March 31, 2017
	Before-Tax Amount				Income Tax			After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	113			$	(39	)	$	74
Equity securities	—				—			—
Other	—				—			—
OTTI	2				(1		)	1
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	19				(7		)	12
DAC/VOBA and Sales inducements	(33		)	(1)	12			(21		)
Premium deficiency reserve adjustment	(5		)		2			(3		)
Change in unrealized gains/losses on available-for-sale securities	96				(33		)	63
Derivatives:
Derivatives	(9		)	(2)	3			(6		)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(6		)		2			(4		)
Change in unrealized gains/losses on derivatives	(15		)		5			(10		)
Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	—				—			—
Change in pension and other postretirement benefits liability	—				—			—
Change in Other comprehensive income (loss)	$	81			$	(28	)	$	53

⁽¹⁾ See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

⁽²⁾ See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.

51

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

7.Income Taxes

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act ("Tax Reform"). Tax Reform makes broad changes to U.S. federal tax law, including, but not limited to (1) reducing the U.S. federal corporate tax rate from 35% to 21%; (2) changing the computations of the dividends received deduction, tax reserves, and deferred acquisition costs; (3) changing how alternative minimum tax credits can be realized; and (4) eliminating the net operating loss (“NOL”) carryback and limiting the NOL carryforward deduction to 80% of taxable income for losses arising in taxable years beginning after December 31, 2017.

The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address situations where a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting under ASC Topic 740 for certain income tax effects of Tax Reform for the reporting period of enactment. SAB 118 allows the Company to provide a provisional estimate of the impacts of Tax Reform during a measurement period similar to the measurement period used when accounting for business combinations. Adjustments to provisional estimates and additional impacts from Tax Reform must be recorded as they are identified during the measurement period as provided for in SAB 118.

In reliance on SAB 118 in 2017, the Company provisionally remeasured its deferred tax assets and liabilities based on the 21% tax rate at which they are expected to reverse in the future. For the three months ended March 31, 2018, the Company adjusted its provisional estimate related to its calculation of tax reserves. The Company continues to analyze the effects of Tax Reform and will record adjustments and additional impacts from Tax Reform as they are identified during the measurement period as provided for in SAB 118.

The Company's effective tax rate for the three months ended March 31, 2018 was 22.0%. The effective tax rate differed from the statutory rate of 21% for the three months ended March 31, 2018 primarily due to the intraperiod tax allocation of the valuation allowance related to realized capital losses, partially offset by the benefit of the dividends received deduction ("DRD").

The Company's effective tax rate for the three months ended March 31, 2017 was 25.2%. The effective tax rate differed from the statutory rate of 35% for the three months ended March 31, 2017 primarily due to the effect of the DRD.

Tax Sharing Agreement

The results of the Company's operations are included in the consolidated tax return of Voya Financial, Inc. Generally, the Company's consolidated financial statements recognize the current and deferred income tax consequences that result from the Company's activities during the current and preceding periods pursuant to the provisions of Income Taxes (ASC Topic 740) as if the Company were a separate taxpayer rather than a member of Voya Financial, Inc.'s consolidated income tax return group with the exception of any net operating loss carryforwards and capital loss carryforwards, which are recorded pursuant to the tax sharing agreement. If the Company instead were to follow a separate taxpayer approach without any exceptions, there would be no impact to income tax expense (benefit) for the periods indicated above. Also, any current tax benefit related to the Company's tax attributes realized by virtue of its inclusion in the consolidated tax return of Voya Financial, Inc. would have been recorded directly to equity rather than income. Under the tax sharing agreement, Voya Financial, Inc. will pay the Company 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.

Tax Regulatory Matters

Voya Financial, Inc. (including the Company) is currently under audit by the IRS, and it is expected that the examination of tax year 2016 will be finalized within the next twelve months. Voya Financial, Inc. (including the Company) and the IRS have agreed to participate in the Compliance Assurance Process for the tax years 2016 through 2018.

52

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

8.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 this agreement, which became effective in June 2001 and expires on 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 incurred immaterial interest expense and earned immaterial interest income for the three months ended March 31, 2018 and 2017. As of March 31, 2018, the Company did not have an outstanding receivable/payable from/to Voya Financial, Inc. under the reciprocal loan agreement. As of December 31, 2017, the Company had an outstanding receivable of $80 and no outstanding payable.

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.

9.Commitments and Contingencies

Commitments

Through the normal course of investment operations, the Company commits to either purchase or sell securities, mortgage loans, or money market instruments, at a specified future date and at a specified price or yield. The inability of counterparties to honor these commitments may result in either a higher or lower replacement cost. Also, there is likely to be a change in the value of the securities underlying the commitments. As of March 31, 2018, the Company had off-balance sheet commitments to acquire mortgage loans of $129 and purchase limited partnerships and private placement investments of $590.

Restricted Assets

The Company is required to maintain assets on deposit with various regulatory authorities to support its insurance operations. The Company may also post collateral in connection with certain securities lending, repurchase agreements, funding agreements, letter of credit ("LOC") and derivative transactions as described further in this note. The components of the fair value of the restricted assets were as follows as of the dates indicated:

	March 31, 2018		December 31, 2017
Fixed maturity collateral pledged to FHLB(1)	$	272	$	—
FHLB restricted stock(2)	23		—
Other fixed maturities-state deposits	13		13
Cash and cash equivalents	5		5
Securities pledged(3)	833		960
Total restricted assets	$	1,146	$	978

⁽¹⁾ Included in Fixed maturities, available for sale, at fair value on the Condensed Consolidated Balance Sheets.

⁽²⁾ Included in Other investments on the Condensed Consolidated Balance Sheets.

⁽³⁾ Includes the fair value of loaned securities of $646and $799 as of March 31, 2018 and December 31, 2017, respectively. In addition, as of March 31, 2018 and December 31, 2017, the Company delivered securities as collateral of $187 and $161, respectively. Loaned securities and securities delivered as collateral are included in Securities pledged on the Condensed Consolidated Balance Sheets.

Federal Home Loan Bank Funding

On January 18, 2018, the Company became a member of the Federal Home Loan Bank of Boston (“FHLB”). The Company is required to pledge collateral to back funding agreements issued to the FHLB. As of March 31, 2018, the Company had $225 in non-putable funding agreements, which are included in Future policy benefits and contract owner account balances on the Condensed Consolidated Balance Sheets. As of March 31, 2018 assets with a market value of approximately $272 collateralized

53

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

the FHLB funding agreements. Assets pledged to the FHLB are included in Fixed maturities, available-for-sale, at fair value on the Condensed Consolidated Balance Sheets.

Subsequent to March 31, 2018, the Company issued an additional $275 of funding agreements to the FHLB and pledged assets as required collateral.

Litigation, Regulatory Matters and Loss Contingencies

Litigation, regulatory and other loss contingencies arise in connection with the Company's activities as a diversified financial services firm. The Company is a defendant in a number of litigation matters arising from the conduct of its business, both in the ordinary course and otherwise. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek or they may be required only to state an amount sufficient to meet a court's jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim. Litigation against the Company includes a variety of claims including negligence, breach of contract, fraud, violation of regulation or statute, breach of fiduciary duty, negligent misrepresentation, failure to supervise, elder abuse and other torts.

As with other financial services companies, the Company periodically receives informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. It is the practice of the Company to cooperate fully in these matters. Regulatory investigations, exams, inquiries and audits could result in regulatory action against the Company. The potential outcome of such action is difficult to predict but could subject the Company to adverse consequences, including, but not limited to, settlement payments, additional payments to beneficiaries, and additional escheatment of funds deemed abandoned under state laws. They may also result in fines and penalties and changes to the Company's procedures for the identification and escheatment of abandoned property or the correction of processing errors and other financial liability.

The outcome of a litigation or regulatory matter is difficult to predict and the amount or range of potential losses associated with these or other loss contingencies, requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation, and other loss contingencies. While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company's financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company's litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company's results of operations or cash flows in a particular quarterly or annual period.

For some matters, the Company is able to estimate a possible range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company, however, believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of March 31, 2018, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, is not material to the Company.

For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company's accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews.

54

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Litigation includes Dezelan v. Voya Retirement Insurance and Annuity Company (USDC District of Connecticut, No. 3:16-cv-1251)(filed July 26, 2016), a putative class action in which plaintiff, a participant in a 403(b) Plan, seeks to represent a class of plans whose assets are invested in VRIAC “Group Annuity Contract Stable Value Funds.”  Plaintiff alleges that VRIAC has violated the Employee Retirement Income Security Act of 1974 by charging unreasonable fees and setting its own compensation in connection with stable value products.  Plaintiff seeks declaratory and injunctive relief, disgorgement of profits, damages and attorney’s fees. The Company denies the allegations, which it believes are without merit, and intends to defend the case vigorously. On July 19, 2017, the district court granted the Company's motion to dismiss, but permitted the plaintiff to file an amended complaint. The plaintiff has filed a first amended complaint, and the Company has moved to dismiss that complaint.

Litigation also includes Goetz v. Voya Financial and Voya Retirement Insurance and Annuity Company (USDC District of Delaware, No. 1:17-cv-1289) (filed September 8, 2017), a putative class action in which plaintiff, a participant in a 401(k) plan, seeks to represent other participants in the plan as well as a class of similarly situated plans that “contract with [Voya] for recordkeeping and other services.” Plaintiff alleges that “Voya” breached its fiduciary duty to the plan and other plan participants by charging unreasonable and excessive recordkeeping fees, and that “Voya” distributed materially false and misleading 404a-5 administrative and fund fee disclosures to conceal its excessive fees. The Company denies the allegations, which it believes are without merit, and intends to defend the case vigorously. Plaintiff filed an amended complaint on January 4, 2018, and the Company filed a motion to dismiss the amended complaint of February 8, 2018.

10.Related Party Transactions

Operating Agreements

Prior to May 1, 2017, DSL was the investment adviser to certain U.S. registered investment companies that are investment options under certain of the Company’s variable insurance products. Consequently, DSL was party to various intercompany management and revenue sharing agreements, whereby DSL earned revenues and incurred expenses associated with these intercompany agreements. Effective May 1, 2017, Voya Investments, LLC, ("VIL") an affiliate, was appointed as investment adviser to these U.S. registered investment companies and DSL no longer provides these advisory and certain other related services to its affiliates. While this change has an impact on the Company’s and DSL’s total revenues and total expenses, the net impact on the Company’s Net income (loss) is expected to be insignificant.

For the three months ended March 31, 2018 and 2017, revenues with affiliated entities related to the operating agreements disclosed in the Related Party Transactions Note in the Consolidated Financial Statements in Part II, Item 8. in the Company's Annual Report on Form 10-K and reflecting changes to certain of these operating agreements described above were $86 and $148, respectively. For the three months ended March 31, 2018 and 2017, expenses with affiliated entities related to the aforementioned operating agreements, as amended, were $210 and $201, respectively.

Reinsurance Agreements

Effective January 1, 2018, the Company recaptured its coinsurance agreement with Langhorne I, LLC (“Langhorne”) to manage the reserve and capital requirements in connection with a portion of its Stabilizer and Managed Custody Guarantee, which resulted in the Company recording a $74 pre-tax gain on recapture of reinsured business that was reported in Operating expenses in the Condensed Consolidated Statement of Operations. This agreement was accounted for under the deposit method.

As of March 31, 2018 and December 31, 2017, the Company had deposit assets of $37 and $63, respectively, and deposit liabilities of $77 and $135, respectively. Deposit assets and liabilities are included in Other assets and Other liabilities, respectively, on the Condensed Consolidated Balance Sheets. For further information, see the Related Party Transactions Note in the Consolidated Financial Statements in Part II, Item 8. in the Company's Annual Report on Form 10-K.

55

Item 2.Management’s Narrative Analysis of the Results of Operations and Financial Condition

(Dollar amounts in millions, unless otherwise stated)

For the purposes of the discussion in this Quarterly Report on Form 10-Q, the term "VRIAC" refers to Voya Retirement Insurance and Annuity Company, and the terms "Company," "we," "our," "us" refer to Voya Retirement Insurance and Annuity Company and its subsidiaries. We are a direct, wholly owned subsidiary of Voya Holdings Inc., which is a direct, wholly owned subsidiary of Voya Financial, Inc.

The following discussion and analysis presents a review of our results of operations for the three months ended March 31, 2018 and 2017 and financial condition as of March 31, 2018 and December 31, 2017. This item should be read in its entirety and in conjunction with the Condensed Consolidated Financial Statements and related notes contained in Part I., Item 1. of this Quarterly Report on Form 10-Q, as well as "Management's Narrative Analysis of the Results of Operations and Financial Condition" section contained in our Annual Report on Form 10-K for the year ended December 31, 2017 ("Annual Report on Form 10-K").

In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. See "Note Concerning Forward-Looking Statements."

Overview

VRIAC is a stock life insurance company domiciled in the State of Connecticut. VRIAC and its wholly owned subsidiaries (collectively, the "Company") provide financial products and services in the United States. VRIAC is authorized to conduct its insurance business in all states and in the District of Columbia, Guam, Puerto Rico and the Virgin Islands.

The Condensed Consolidated Financial Statements include the accounts of VRIAC and its wholly owned subsidiaries, Voya Financial Partners, LLC ("VFP") and Directed Services LLC ("DSL"). Intercompany transactions and balances have been eliminated.

On December 20, 2017, VRIACs ultimate parent, Voya Financial, Inc ("Voya Financial"), entered into a Master Transaction Agreement ("MTA") with VA Capital Company LLC ("VA Capital"), and Athene Holding Ltd. ("Athene"), pursuant to which VA Capital's wholly owned subsidiary Venerable Holdings, Inc. ("Venerable") will acquire certain of Voya Financial's assets, including all of the shares of the capital stock of Voya Insurance and Annuity Company ("VIAC"), our Iowa-domiciled insurance affiliate, as well as the membership interests of DSL, our broker-dealer subsidiary (collectively the "Transaction"). The Transaction is expected to close in the second or third quarter of 2018, subject to conditions specified in the MTA, including receipt of required regulatory approvals and other conditions. The purchase price for DSL is expected to approximate its carrying value.

Tax Reform

On December 22, 2017, the Tax Cuts and Jobs Act ("Tax Reform") was signed into law. Tax Reform significantly revised U.S. federal corporate income tax law by, among other things, reducing the corporate income tax rate from 35% to 21% and changing various provisions of the Federal tax code that impact life insurance companies.

For more information on Tax Reform, see Critical Accounting Judgments and Estimates in Part II, Item 7. of our Annual Report on Form 10-K and the Income Taxes Note in Part I, Item I. of this Quarterly Report on Form 10-Q.

Our Business

Our products include qualified and nonqualified annuity contracts that include a variety of funding and payout options for individuals and employer-sponsored retirement plans qualified under Internal Revenue Code Sections 401, 403, 408, 457 and 501, as well as nonqualified deferred compensation plans and related services. Our products are offered primarily to employer-sponsored groups in the health care, government and education markets (collectively "tax exempt markets"), small to mid-sized corporations and individuals. We also provide stable value investment options, including separate account guaranteed investment contracts (e.g. GICs) and synthetic GICs, to institutional clients. Our products are generally distributed through pension professionals, independent agents and brokers, third party administrators, banks, consultants, dedicated financial guidance, planning and advisory representatives associated with Voya Financial, Inc.'s retail broker-dealer, Voya Financial Advisors, Inc. ("Voya Financial Advisors").

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We derive our revenue mainly from (a) investment income earned on investments, (b) Fee income generated from separate account assets supporting variable options under variable annuity contract investments, as designated by contract owners, (c) Premiums, (d) realized capital gains (losses) on investments and changes in fair value of embedded derivatives on product guarantees, and (e) Other revenue which includes certain other fees. Our Benefits and expenses primarily consist of (a) Interest credited and other benefits to contract owners/policyholders, (b) Operating expenses, which include expenses related to the selling and servicing of the various products offered by us and other general business expenses and (c) amortization of DAC and VOBA. In addition, we collect broker-dealer commission revenues through our subsidiaries, DSL and VFP, which are, in turn, paid to broker-dealers and expensed.

We have one operating segment.

In 2017, we began soliciting customer consents to execute a change to reduce the guaranteed minimum interest rate ("GMIR initiative") applicable to future deposits and transfers into fixed investment options for certain retirement plan contracts with above- market GMIRs. This change reduces our interest rate exposure on new deposits, transfers and in certain plans existing fixed account assets and will favorably impact the DAC and VOBA amortization rate and operating earnings over time. The GMIR initiative unlocking recorded in 2017 reflected management’s best estimate of consent acceptances expected during 2017 and subsequent years related to this initiative. During the first quarter of 2018, we have updated our assumptions related to the GMIR initiative to reflect higher expected consents based on company experience. This update resulted in unfavorable unlocking of $43 million recorded in Net amortization of DAC and VOBA in the Condensed Consolidated Statements of Operations.

Impact of New Accounting Pronouncements

For information regarding the impact of new accounting pronouncements, see the Business, Basis of Presentation and Significant Accounting Policies Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.

Critical Accounting Judgments and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates and assumptions are evaluated on an on-going basis based on historical developments, market conditions, industry trends and other information that is reasonable under the circumstances. There can be no assurance that actual results will conform to estimates and assumptions and that reported results of operations will not be materially affected by the need to make future accounting adjustments to reflect changes in these estimates and assumptions from time to time.

We have identified the following accounting judgments and estimates as critical in that they involve a higher degree of judgment and are subject to a significant degree of variability:

•Reserves for future policy benefits;

•Deferred policy acquisition costs ("DAC") and value of business acquired ("VOBA");

•Valuation of investments and derivatives;

•Impairments;

•Income taxes; and

•Contingencies.

In developing these accounting estimates, we make subjective and complex judgments that are inherently uncertain and subject to material changes as facts and circumstances develop. Although variability is inherent in these estimates, we believe the amounts provided are appropriate based on the facts available upon preparation of the Condensed Consolidated Financial Statements.

The above critical accounting estimates are described in the Business, Basis of Presentation and Significant Accounting Policies Note in our Consolidated Financial Statements in Part II, Item 8. of our Annual Report on Form 10-K.

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Assumptions and Periodic Review

Changes in assumptions can have a significant impact on DAC/VOBA and other intangibles balances, amortization rates, reserve levels and results of operations. Assumptions are management's best estimates of future outcome. We periodically review these assumptions against actual experience and, based on additional information that becomes available, update our assumptions. Deviation of emerging experience from our assumptions could have a significant effect on our DAC/VOBA and other intangibles, reserves and the related results of operations.

During the first quarter of 2018, we have updated our assumptions related to the GMIR initiative to reflect higher expected consents based on favorable company experience. This update resulted in unfavorable unlocking of $43 million recorded in Net amortization of DAC and VOBA in the Condensed Consolidated Financial Statements. See the Management's Narrative Analysis of the Results of Operations and Financial Condition in Part 1., Item 2., of this Quarterly Report on Form 10-Q for further information.

Income Taxes

Changes in Law

Certain changes or future events, such as changes in tax legislation, completion of tax audits, planning opportunities and expectations about future outcomes could have an impact on our estimates of valuation allowances, deferred taxes, tax provisions and effective tax rates.

As discussed in the Income Taxes Note to the Accompanying Condensed Consolidated Financial Statements, Tax Reform makes broad changes to U.S. federal tax law. The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address situations where a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting under ASC Topic 740 for certain income tax effects of Tax Reform for the reporting period of enactment. SAB 118 allows us to provide a provisional estimate of the impacts of Tax Reform during a measurement period similar to the measurement period used when accounting for business combinations. Adjustments to provisional estimates and additional impacts from Tax Reform must be recorded as they are identified during the measurement period as provided for in SAB 118.

We have relied on SAB 118 to determine the impact of Tax Reform on our net deferred tax asset position as of December 31, 2017. Deferred income tax represents the tax effect of the differences between the book and tax basis of assets and liabilities. Deferred tax assets represent the tax benefit of future deductible temporary differences, operating loss carryforwards and tax credits carryforwards. We periodically evaluate and test our ability to realize our deferred tax assets. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence, it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. In assessing the more likely than not criteria, we consider future taxable income as well as prudent tax planning strategies.

Pursuant to SAB 118, we estimate that Tax Reform resulted in a one-time decrease in our net deferred tax liability position of $116 million as of December 31, 2017. This decrease is substantially due to the remeasurement of our deferred tax assets and liabilities at 21%, the new federal corporate income tax rate at which the deferred tax assets and liabilities are expected to reverse in the future. This estimate includes the effect of a reduction in our deferred tax liability associated with accumulated other comprehensive income ("AOCI"). The Financial Accounting Standards Board ("FASB") issued guidance in February 2018 that allows reclassification of the reduction in the deferred tax liability associated with AOCI from retained earnings to AOCI. We are currently evaluating this new guidance, which is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. See the Business, Basis of Presentation and Significant Accounting Policies Note, "Future Adoption of Accounting Pronouncements" section, in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for additional information.

We continue to analyze the effects of Tax Reform and will record adjustments and additional impacts as they are identified during the measurement period. For the three months ended March 31, 2018, we have recorded adjustments to our provisional estimate. The final impact to our deferred taxes could differ materially from our provisional estimates as a result of future clarifications in, or guidance related to, Tax Reform.

Our effective tax rate for the three months ended March 31, 2018 was 22.0%. The effective tax rate differed from the statutory rate of 21% for the three months ended March 31, 2018 primarily due to the intraperiod tax allocation of the valuation allowance related to realized capital losses, partially offset by the benefit of the dividends received deduction ("DRD").

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Our effective tax rate for the three months ended March 31, 2017 was 25.2%. The effective tax rate differed from the statutory rate of 35% for the three months ended March 31, 2017 primarily due to the effect of the DRD.

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Results of Operations

($ in millions)	Three Months Ended March 31,
	2018			2017
Revenues:
Net investment income	$	382		$	379
Fee income	174			190
Premiums	14			15
Broker-dealer commission revenue	41			44
Net realized capital gains (losses):
Total other-than-temporary impairments	(9		)	—
Less: Portion of other-than-temporary impairments recognized in Other comprehensive income (loss)	—			—
Net other-than-temporary impairments recognized in earnings	(9		)	—
Other net realized capital gains (losses)	(78		)	(55		)
Total net realized capital gains (losses)	(87		)	(55		)
Total revenues	524			573
Benefits and expenses:
Interest credited and other benefits to contract owners/policyholders	198			235
Operating expenses	108			220
Broker-dealer commission expense	41			44
Net amortization of Deferred policy acquisition costs and Value of business acquired	65			2
Total benefits and expenses	412			501
Income (loss) before income taxes	112			72
Income tax expense (benefit)	25			18
Net income (loss)	$	87		$	54

Three Months Ended March 31, 2018 compared to Three Months Ended March 31, 2017

Net income (loss) increased by $33 million from income of $54 million to $87 million primarily due to:

• lower Operating expenses; and

• lower Interest credited and other benefits to contract owners/policyholders.

The increase was partially offset by:

• higher Net amortization of DAC and VOBA;

• higher Net realized capital losses;

• lower Fee income; and

• higher Income tax expense.

Revenues

Total revenuesdecreased$49 million from $573 million to $524 million primarily due to:

• higher Net realized capital losses; and

• lower Fee income.

Fee income decreased$16 million from $190 million to $174 million primarily due to:

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• lower investment advisory fees, resulting from changes to the investment advisory relationship with affiliates (See the Related Party Transactions note to the Condensed Consolidated Financial Statements in Part 1, Item 1. of this Quarterly Report on Form 10-Q for further detail); and

• the shift in business mix.

The decrease was partially offset by:

• an increase in the separate account and institutional/mutual fund assets under management ("AUM") driven by equity market improvements.

Total net realized capital losses increased $32 million from $55 million to $87 millionprimarily due to:

• unfavorable changes in fixed maturities using the fair value option due to interest rate movements and spread changes.

The decrease was partially offset by:

• the disposal of fixed maturities including securities pledged.

Benefits and Expenses

Total benefits and expensesdecreased$89 million from $501 million to $412 million primarily due to:

• lower Operating expenses; and

• lower Interest credited and other benefits to contract owners/policyholders.

The decrease was partially offset by:

• higher Net amortization of DAC and VOBA.

Interest credited and other benefits to contract owners/policyholdersdecreased$37 million from $235 million to $198 million primarily due to:

• favorable changes in the fair value of the embedded derivative on reinsurance.

Operating expenses decreased$112 million from $220 million to $108 million primarily due to:

• a gain on the recapture of the Langhorne coinsurance agreement during the current period. See the Related Party Transactions Note to the Condensed Consolidated Financial Statements in Part 1, Item 1. of this Quarterly Report on Form 10-Q for further detail;

• lower investment advisory expenses, resulting from changes to the investment advisory relationship with affiliate, reference above;

• lower employee related expenses; and

• lower technology costs.

Net amortization of DAC and VOBA increased$63 million from $2 million to $65 million primarily due to:

• unfavorable unlocking driven by an update to the assumption related to GMIR provisions of certain fixed option retirement plan contracts.

Income tax expense increased $7 million from $18 million to $25 million primarily due to:

• the valuation allowance in the current period; and

• higher income before income taxes.

The increase was partially offset by:

• the impact of the lower federal corporate tax rate due to Tax Reform.

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Financial Condition

Investments

See Management's Narrative Analysis of the Results of Operations and Financial Condition in Part II, Item. 7. of our Annual Report on Form 10-K for information on our investment strategy.

See the Investments Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for more information on investments.

Portfolio Composition

The following table presents the investment portfolio as of the dates indicated:

	March 31, 2018				December 31, 2017
($ in millions)	Carrying Value		% of Total		Carrying Value		% of Total
Fixed maturities, available-for-sale, excluding securities pledged	$	22,912	75.1	%	$	23,141	75.1	%
Fixed maturities, at fair value using the fair value option	933		3.1	%	941		3.1	%
Equity securities, at fair value	58		0.2	%	60		0.2	%
Short-term investments(1)	75		0.2	%	25		0.1	%
Mortgage loans on real estate	4,891		16.0	%	4,910		15.9	%
Policy loans	212		0.7	%	214		0.7	%
Limited partnerships/corporations	425		1.4	%	411		1.3	%
Derivatives	148		0.5	%	136		0.5	%
Securities pledged	833		2.7	%	960		3.1	%
Other investments	22		0.1	%	—		—	%
Total investments	$	30,509	100.0	%	$	30,798	100.0	%

⁽¹⁾ Short-term investments include investments with remaining maturities of one year or less, but greater than 3 months, at the time of purchase.

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Fixed Maturities

The following tables present total fixed maturities, including securities pledged, by market sector as of the dates indicated:

	March 31, 2018
($ in millions)	Amortized Cost		% of Total		Fair Value		% of Total
Fixed maturities:
U.S. Treasuries	$	463	1.9	%	$	552	2.2	%
U.S. Government agencies and authorities	—		—	%	—		—	%
State, municipalities, and political subdivisions	841		3.5	%	859		3.5	%
U.S. corporate public securities	8,342		34.9	%	8,792		35.7	%
U.S. corporate private securities	3,387		14.2	%	3,395		13.8	%
Foreign corporate public securities and foreign governments(1)	2,601		10.9	%	2,696		10.9	%
Foreign corporate private securities(1)	3,223		13.5	%	3,276		13.3	%
Residential mortgage-backed securities	2,616		11.0	%	2,695		10.9	%
Commercial mortgage-backed securities	1,570		6.6	%	1,567		6.3	%
Other asset-backed securities	839		3.5	%	846		3.4	%
Total fixed maturities, including securities pledged	$	23,882	100.0	%	$	24,678	100.0	%

⁽¹⁾ Primarily U.S. dollar denominated.

	December 31, 2017
($ in millions)	Amortized Cost		% of Total		Fair Value		% of Total
Fixed maturities:
U.S. Treasuries	$	547	2.3	%	$	656	2.6	%
U.S. Government agencies and authorities	3		—	%	3		—	%
State, municipalities, and political subdivisions	842		3.6	%	878		3.5	%
U.S. corporate public securities	8,476		35.9	%	9,236		36.9	%
U.S. corporate private securities	3,387		14.4	%	3,497		14.0	%
Foreign corporate public securities and foreign governments(1)	2,594		11.0	%	2,777		11.1	%
Foreign corporate private securities(1)	3,105		13.2	%	3,215		12.8	%
Residential mortgage-backed securities	2,517		10.7	%	2,629		10.5	%
Commercial mortgage-backed securities	1,437		6.1	%	1,470		5.9	%
Other asset-backed securities	671		2.8	%	681		2.7	%
Total fixed maturities, including securities pledged	$	23,579	100.0	%	$	25,042	100.0	%

⁽¹⁾ Primarily U.S. dollar denominated.

As of March 31, 2018, the average duration of our fixed maturities portfolio, including securities pledged, is between 7.5 and 8.0 years.

Fixed Maturities Credit Quality - Ratings

For information regarding our fixed maturities credit quality ratings, see the Management's Narrative Analysis of the Results of Operations and Financial Condition in Part II, Item. 7. of our Annual Report on Form 10-K.

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The following tables present credit quality of fixed maturities, including securities pledged, using NAIC designations as of the dates indicated:

($ in millions)	March 31, 2018
NAIC Quality Designation	1			2			3			4			5			6			Total Fair Value
U.S. Treasuries	$	552		$	—		$	—		$	—		$	—		$	—		$	552
U.S. Government agencies and authorities	—			—			—			—			—			—			—
State, municipalities and political subdivisions	805			53			—			—			—			1			859
U.S. corporate public securities	4,195			4,050			404			141			2			—			8,792
U.S. corporate private securities	1,454			1,798			63			74			6			—			3,395
Foreign corporate public securities and foreign governments(1)	1,275			1,221			173			24			3			—			2,696
Foreign corporate private securities(1)	446			2,504			289			20			17			—			3,276
Residential mortgage-backed securities	2,593			58			1			8			3			32			2,695
Commercial mortgage-backed securities	1,550			17			—			—			—			—			1,567
Other asset-backed securities	740			86			9			2			—			9			846
Total fixed maturities	$	13,610		$	9,787		$	939		$	269		$	31		$	42		$	24,678
% of Fair Value	55.1		%	39.7		%	3.8		%	1.1		%	0.1		%	0.2		%	100.0		%
(1)Primarily U.S. dollar denominated.
($ in millions)	December 31, 2017
NAIC Quality Designation	1			2			3			4			5			6			Total Fair Value
U.S. Treasuries	$	656		$	—		$	—		$	—		$	—		$	—		$	656
U.S. Government agencies and authorities	3			—			—			—			—			—			3
State, municipalities and political subdivisions	824			53			—			—			—			1			878
U.S. corporate public securities	4,560			4,148			395			131			2			—			9,236
U.S. corporate private securities	1,497			1,862			68			70			—			—			3,497
Foreign corporate public securities and foreign governments(1)	1,238			1,300			211			25			3			—			2,777
Foreign corporate private securities(1)	492			2,398			301			20			1			3			3,215
Residential mortgage-backed securities	2,564			23			1			—			4			37			2,629
Commercial mortgage-backed securities	1,453			17			—			—			—			—			1,470
Other asset-backed securities	580			83			9			2			—			7			681
Total fixed maturities	$	13,867		$	9,884		$	985		$	248		$	10		$	48		$	25,042
% of Fair Value	55.4		%	39.5		%	3.9		%	1.0		%	—		%	0.2		%	100.0		%
(1) Primarily U.S. dollar denominated.

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The following tables present credit quality of fixed maturities, including securities pledged, using NAIC acceptable rating organizations ("ARO") ratings as of the dates indicated:

($ in millions)	March 31, 2018
ARO Quality Ratings	AAA			AA			A			BBB			BB and Below			Total Fair Value
U.S. Treasuries	$	552		$	—		$	—		$	—		$	—		$	552
U.S. Government agencies and authorities	—			—			—			—			—			—
State, municipalities and political subdivisions	82			517			206			53			1			859
U.S. corporate public securities	100			443			3,653			4,050			546			8,792
U.S. corporate private securities	103			134			1,308			1,696			154			3,395
Foreign corporate public securities and foreign governments(1)	32			238			1,005			1,219			202			2,696
Foreign corporate private securities(1)	—			—			532			2,567			177			3,276
Residential mortgage-backed securities	2,011			20			47			93			524			2,695
Commercial mortgage-backed securities	1,067			123			169			154			54			1,567
Other asset-backed securities	463			118			117			106			42			846
Total fixed maturities	$	4,410		$	1,593		$	7,037		$	9,938		$	1,700		$	24,678
% of Fair Value	17.9		%	6.5		%	28.5		%	40.2		%	6.9		%	100.0		%
(1)Primarily U.S. dollar denominated.
($ in millions)	December 31, 2017
ARO Quality Ratings	AAA			AA			A			BBB			BB and Below			Total Fair Value
U.S. Treasuries	$	656		$	—		$	—		$	—		$	—		$	656
U.S. Government agencies and authorities	3			—			—			—			—			3
State, municipalities and political subdivisions	84			540			200			53			1			878
U.S. corporate public securities	104			471			3,985			4,148			528			9,236
U.S. corporate private securities	104			136			1,363			1,721			173			3,497
Foreign corporate public securities and foreign governments(1)	32			258			948			1,300			239			2,777
Foreign corporate private securities(1)	—			—			533			2,536			146			3,215
Residential mortgage-backed securities	2,001			15			48			24			541			2,629
Commercial mortgage-backed securities	1,126			83			142			92			27			1,470
Other asset-backed securities	378			90			67			104			42			681
Total fixed maturities	$	4,488		$	1,593		$	7,286		$	9,978		$	1,697		$	25,042
% of Fair Value	17.9		%	6.4		%	29.1		%	39.8		%	6.8		%	100.0		%
(1) Primarily U.S. dollar denominated.

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Fixed maturities rated BB and below may have speculative characteristics and changes in economic conditions or other circumstances that are more likely to lead to a weakened capacity of the issuer to make principal and interest payments than is the case with higher rated fixed maturities.

Unrealized Capital Losses

Gross unrealized losses on fixed maturities, including securities pledged, increased$150 million from $148 million to $298 million for the three months ended March 31, 2018. The increase in gross unrealized losses was primarily due to rising interest rates.

As of March 31, 2018, we held one fixed maturity with unrealized capital losses in excess of $10 million. As of March 31, 2018, the unrealized capital losses on this fixed maturity equaled $15 million, or 5.0% of the total unrealized losses. As of December 31, 2017, we held three fixed maturities with unrealized capital losses in excess of $10 million. As of December 31, 2017, the unrealized capital losses on these fixed maturities equaled $37 million, or 25.0% of the total unrealized losses.

As of March 31, 2018, we had $2.0 billion of energy sector fixed maturity securities, constituting 8.3% of the total fixed maturities portfolio, with gross unrealized capital losses of $44 million, including one energy sector fixed maturity security with unrealized capital losses in excess of $10 million. The unrealized capital loss on this fixed maturity security equaled $15 million. As of March 31, 2018, our fixed maturity exposure to the energy sector is comprised of 85.7% investment grade securities.

As of December 31, 2017, we held $2.1 billion of energy sector fixed maturity securities, constituting 8.4% of the total fixed maturities portfolio, with gross unrealized capital losses of $33 million, including one energy sector fixed maturity security with unrealized capital losses in excess of $10 million. The unrealized capital loss on this fixed maturity security equaled $14 million. As of December 31, 2017, our fixed maturity exposure to the energy sector is comprised of 84.7% investment grade securities.

See the Investments Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for further information on unrealized capital losses.

Subprime and Alt-A Mortgage Exposure

Pre-2008 vintage subprime and Alt-A mortgage collateral continues to reflect a housing market entrenched in recovery. While collateral losses continue to be realized, the pace and magnitude at which losses are being realized are steadily decreasing.  Serious delinquencies and other measures of performance, like prepayments and loan defaults, have also displayed sustained periods of improvement. Reflecting these fundamental improvements, related bond prices and sector liquidity have increased substantially since the credit crisis. More broadly, home prices have moved steadily higher, further supporting bond payment performance. Year-over-year home price measures, while at a lower magnitude than experienced in the years following the trough in home prices, have stabilized at sustainable levels, when measured on a nationwide basis. Despite the rise in mortgage rates experienced during the first quarter, this backdrop remains supportive of continued improvement in overall borrower payment behavior. In managing our risk exposure to subprime and Alt-A mortgages, we take into account collateral performance and structural characteristics associated with our various positions.

While we actively invest in and continue to manage a portfolio of such exposures in the form of securitized investments, we do not originate or purchase subprime or Alt-A whole-loan mortgages. Subprime lending is the origination of loans to customers with weaker credit profiles. We define Alt-A mortgages to include the following: residential mortgage loans to customers who have strong credit profiles but lack some element(s), such as documentation to substantiate income; residential mortgage loans to borrowers that would otherwise be classified as prime but for which loan structure provides repayment options to the borrower that increase the risk of default; and any securities backed by residential mortgage collateral not clearly identifiable as prime or subprime.

We have exposure to Residential mortgage-backed securities ("RMBS"), Commercial mortgage-backed securities ("CMBS") and asset-backed securities ("ABS"). Our exposure to subprime mortgage-backed securities is primarily in the form of ABS structures collateralized by subprime residential mortgages and the majority of these holdings were included in Other ABS under "Fixed Maturities" above. As of March 31, 2018, the fair value and amortized cost related to our exposure to subprime mortgage-backed securities totaled $40 million and $36 million, respectively, representing 0.2% of total fixed maturities, including securities pledged, based on fair value. Gross unrealized losses related to our exposure to subprime mortgage-backed securities were immaterial. As of December 31, 2017, the fair value and amortized cost related to our exposure to subprime mortgage-backed securities totaled $44 million and $39 million, respectively, representing 0.2% of total fixed maturities, including securities pledged, based on fair value. Gross unrealized losses related to our exposure to subprime mortgage-backed securities were immaterial.

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Our exposure to Alt-A mortgages is included in the "RMBS" line item in the "Fixed Maturities" table under "Fixed Maturities" above. As of March 31, 2018, the fair value and amortized cost related to our exposure to Alt-A RMBS totaled $52 million and $41 million, respectively, representing 0.2% of total fixed maturities, including securities pledged, based on fair value. Gross unrealized losses related to our exposure to Alt-A RMBS were immaterial. As of December 31, 2017, the fair value and amortized cost related to our exposure to Alt-A RMBS totaled $55 million and $43 million, respectively, representing 0.2% of total fixed maturities, including securities pledged, based on fair value. Gross unrealized losses related to our exposure to Alt-A RMBS were immaterial.

Commercial Mortgage-backed and Other Asset-backed Securities

CMBS investments represent pools of commercial mortgages that are broadly diversified across property types and geographical areas. Delinquency rates on commercial mortgages increased over the course of 2009 through mid-2012. The steep pace of increases observed in this time frame relented, and the percentage of delinquent loans has generally declined since, with any increases relatively short-lived. Other performance metrics like vacancies, property values and rent levels have posted sustained improvement trends, although these metrics are not observed uniformly, differing by dimensions such as geographic location and property type. These improvements have been buoyed by some of the same macro-economic tailwinds alluded to in regards to our subprime and Alt-A mortgage exposure. A robust environment for property refinancing was particularly supportive of improving credit performance metrics throughout much of the post-credit crisis period. In the first quarter of 2016, however, this virtuous lending cycle was disrupted as the dislocation in corporate credit markets negatively impacted liquidity conditions in CMBS. As a result, the new issuance market for CMBS slowed considerably during the first half of 2016 before normalizing to end the year. Spread performance somewhat mirrored these new issuance trends: volatile in the first half of 2016, signs of increased liquidity and more general stability in credit spreads have been observed since. Since, performance of CMBS can be best characterized by issuance stability and liquid market conditions, fostering relatively prolific new issuance volumes, although the mix (agency versus private label and, within private label, SASB versus conduit) has continued to evolve.  This backdrop allowed for general success in the refinancing of the final large maturing loan populations from pre-crisis originated commercial mortgage loans, done in 2007.

For most forms of consumer ABS, delinquency and loss rates have been maintained at levels considered low by historical standards and indicative of high credit quality.  Two exceptions exist in the form of auto loans to subprime borrowers and particular cohorts (loans originated in 2008-2010) of student loan borrowers.  Payment performance in these particular ABS sub-sectors has been volatile and weak relative to most other forms of ABS, where relative strength in various credit metrics across multiple types of asset-backed loans have been observed on a sustained basis.  In managing our risk exposure to other ABS, we take into account collateral performance and structural characteristics associated with our various positions.

As of March 31, 2018, the fair value, amortized cost and gross unrealized losses of our Other ABS, excluding subprime exposure, totaled $821 million, $819 million and $2 million, respectively. As of December 31, 2017, the fair value, amortized cost and gross unrealized losses of our exposure to Other ABS, excluding subprime exposure, totaled $652 million, $648 million and $1 million, respectively.

As of March 31, 2018, Other ABS was broadly diversified both by type and issuer with nonconsolidated collateralized loan obligations ("CLOs") and automobile receivables, comprising 69.9% and 0.6%, respectively, of total Other ABS, excluding subprime exposure. As of December 31, 2017, Other ABS was broadly diversified both by type and issuer with credit card receivables, nonconsolidated CLOs and automobile receivables, comprising 2.5%, 61.6% and 4.5%, respectively, of total Other ABS, excluding subprime exposure.

Mortgage Loans on Real Estate

We rate all commercial mortgages to quantify the level of risk. We place those loans with higher risk on a watch list and closely monitor these loans for collateral deficiency or other credit events that may lead to a potential loss of principal and/or interest. If we determine the value of any mortgage loan to be other-than-temporarily impaired ("OTTI") (i.e., when it is probable that we will be unable to collect on amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to either the present value of expected cash flows from the loan, discounted at the loan's effective interest rate or fair value of the collateral. For those mortgages that are determined to require foreclosure, the carrying value is reduced to the fair value of the underlying collateral, net of estimated costs to obtain and sell at the point of foreclosure. The carrying value of the impaired loans is reduced by establishing an other-than-temporary write-down recorded in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of commercial mortgage loans. The LTV ratio, calculated at time of origination, is expressed as a percentage of the amount of the

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loan relative to the value of the underlying property. An LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the value of the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property's Net income (loss) to its debt service payments. A DSC ratio of less than 1.0 indicates that a property's operations do not generate sufficient income to cover debt payments. These ratios are utilized as part of the review process described above.

As of March 31, 2018, our mortgage loans on real estate portfolio had a weighted average DSC of 2.1 times and a weighted average LTV ratio of 61.8%. As of December 31, 2017, our mortgage loans on real estate portfolio had a weighted average DSC of 2.2 times and a weighted average LTV ratio of 61.8%. See the Investments Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for further information on mortgage loans on real estate.

Other-Than-Temporary Impairments

We evaluate available-for-sale fixed maturities for impairment on a regular basis. The assessment of whether impairments have occurred is based on a case-by-case evaluation of the underlying reasons for the decline in estimated fair value. See the Business, Basis of Presentation and Significant Accounting PoliciesNote to our Consolidated Financial Statements in Part II, Item 8. of our Annual Report on Form 10-K for the policy used to evaluate whether the investments are other-than-temporarily impaired.

See the Investments Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for further information on OTTI.

European Exposures

We quantify and allocate our exposure to the region by attempting to identify aspects of the region or country risk to which we are exposed. Among the factors we consider are the nationality of the issuer, the nationality of the issuer's ultimate parent, the corporate and economic relationship between the issuer and its parent, as well as the political, legal and economic environment in which each functions. By undertaking this assessment, we believe that we develop a more accurate assessment of the actual geographic risk, with a more integrated understanding of contributing factors to the full risk profile of the issuer.

In the normal course of our ongoing risk and portfolio management process, we closely monitor compliance with a credit limit hierarchy designed to minimize overly concentrated risk exposures by geography, sector and issuer. This framework takes into account various factors such as internal and external ratings, capital efficiency and liquidity and is overseen by a combination of Investment and Corporate Risk Management, as well as insurance portfolio managers focused specifically on managing the investment risk embedded in our portfolio.

While financial conditions in Europe have broadly improved, the possibility of capital market volatility spreading through a highly integrated and interdependent banking system remains. Despite signs of continuous improvement in the region, we continue to closely monitor our exposure to the region.

As of March 31, 2018, the Company's total European exposure had an amortized cost and fair value of $2,900 million and $2,987 million, respectively. European exposure with a primary focus on Greece, Ireland, Italy, Portugal and Spain (which we refer to as "peripheral Europe") amounts to $243 million, which includes non-financial institutions exposure in Ireland of $76 million, in Italy of $91 million, and in Spain of $60 million. We did not have any exposure to Greece or Portugal.

Among the remaining $2.7 billion of total non-peripheral European exposure, we had a portfolio of credit-related assets similarly diversified by country and sector across developed and developing Europe. As of March 31, 2018, our non-peripheral sovereign exposure was $116 million, which consisted of fixed maturities. We also had $387 million in net exposure to non-peripheral financial institutions with a concentration in France of $56 million, The Netherlands of $45 million, Switzerland of $81 million and the United Kingdom of $187 million. The balance of $2.2 billion was invested across non-peripheral, non-financial institutions.

Some of the major country level exposures were in the United Kingdom of $1,396 million, in The Netherlands of $318 million, in Belgium of $164 million, in France of $125 million, in Germany of $209 million, in Switzerland of $208 million and in Russia of $64 million. We believe the primary risk results from market value fluctuations resulting from spread volatility and the secondary risk is default risk, dependent upon the strength of continued recovery of economic conditions in Europe.

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Liquidity and Capital Resources

Liquidity is our ability to generate sufficient cash flows to meet the cash requirements of operating, investing and financing activities. Capital refers to our long-term financial resources available to support the business operations and contribute to future growth. Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of the businesses, timing of cash flows on investments and products, general economic conditions and access to the capital markets and the alternate sources of liquidity and capital described herein.

Liquidity Management

Our principal available sources of liquidity are product charges, investment income, proceeds from the maturity and sale of investments, proceeds from debt issuance and borrowing facilities, repurchase agreements, contract deposits, securities lending and capital contributions. Primary uses of these funds are payments of commissions and operating expenses, interest credits, investment purchases and contract maturities, withdrawals and surrenders and payment of dividends.

Our liquidity position is managed by maintaining adequate levels of liquid assets, such as cash, cash equivalents and short-term investments. As part of the liquidity management process, different scenarios are modeled to determine whether existing assets are adequate to meet projected cash flows. Key variables in the modeling process include interest rates, equity market movements, quantity and type of interest and equity market hedges, anticipated contract owner behavior, market value of the general account assets, variable separate account performance and implications of rating agency actions.

The fixed account liabilities are supported by a general account portfolio, principally composed of fixed rate investments with matching duration characteristics that can generate predictable, steady rates of return. The portfolio management strategy for the fixed account considers the assets available-for-sale. This strategy enables us to respond to changes in market interest rates, prepayment risk, relative values of asset sectors and individual securities and loans, credit quality outlook and other relevant factors. The objective of portfolio management is to maximize returns, taking into account interest rate and credit risk, as well as other risks. Our asset/liability management discipline includes strategies to minimize exposure to loss as interest rates and economic and market conditions change. In executing this strategy, we use derivative instruments to manage these risks. Our derivative counterparties are of high credit quality.

Liquidity and Capital Resources

Additional sources of liquidity include borrowing facilities to meet short-term cash requirements that arise in the ordinary course of business. We maintain the following agreements:

• A reciprocal loan agreement with Voya Financial, Inc., an affiliate, whereby either party can borrow from the other up to 3.0% of VRIAC's statutory admitted assets as of the prior December 31. As of March 31, 2018, we did not have an outstanding receivable/payable from/to Voya Financial, Inc. under the reciprocal loan agreement. As of December 31, 2017, we had an outstanding receivable of $80 million and no outstanding payable. We and Voya Financial, Inc. continue to maintain the reciprocal loan agreement and future borrowings by either party will be subject to the reciprocal loan terms summarized above. 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.

• We hold approximately 50.9% of our assets in marketable securities. These assets include cash, U.S. Treasuries, Agencies, Corporate Bonds, ABS, CMBS and collateralized mortgage obligations ("CMO") and Equity securities. In the event of a temporary liquidity need, cash may be raised by entering into repurchase agreements, dollar rolls and/or security lending agreements by temporarily lending securities and receiving cash collateral. Under our Liquidity Plan, up to 12% of our general account statutory admitted assets may be allocated to repurchase, securities lending and dollar roll programs. At the time a temporary cash need arises, the actual percentage of admitted assets available for repurchase transactions will depend upon outstanding allocations to the three programs. As of March 31, 2018, VRIAC had securities lending collateral assets of $556 million, which represents approximately 0.5% of its general account statutory admitted assets. As of December 31, 2017, VRIAC had securities lending collateral assets of $733 million, which represents approximately 0.7% of its general account statutory admitted assets.

Management believes that our sources of liquidity are adequate to meet our short-term cash obligations.

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Capital Contributions and Dividends

During the three months ended March 31, 2018 and 2017, VRIAC did not receive any capital contributions from its Parent.

During the three months ended March 31, 2018 and 2017, VRIAC did not pay a dividend or return of capital on its common stock to its Parent.

On March 28, 2018, VFP paid a $20 million dividend to VRIAC, its Parent. During the three months ended March 31, 2017, VFP paid dividends of $20 million to VRIAC.

On May 3, 2018, VRIAC declared an ordinary dividend in the amount of $126 million, payable on or after May 25, 2018.

Prior to the close of the Transaction, DSL is expected to pay a dividend of approximately $49 million to VRIAC.

Ratings

Our access to funding and our related cost of borrowing, requirements for derivatives collateral posting and the attractiveness of certain of our products to customers are affected by our credit ratings and insurance financial strength ratings, which are periodically reviewed by the rating agencies. Financial strength ratings and credit ratings are important factors affecting public confidence in an insurer and its competitive position in marketing products. The credit ratings are also important for the ability to raise capital through the issuance of debt and for the cost of such financing.

A downgrade in our credit or financial strength ratings or the credit or financial strength ratings of our Parent or rated affiliates could potentially, among other things, limit our ability to market products, reduce our competitiveness, increase the number or value of policy surrenders and withdrawals, increase our borrowing costs and potentially make it more difficult to borrow funds, adversely affect the availability of financial guarantees or Letters of Credit ("LOCs"), cause additional collateral requirements or other required payments under certain agreements, allow counterparties to terminate derivative agreements and/or impair our relationships with creditors, distributors or trading counterparties thereby potentially negatively affecting our profitability, liquidity and/or capital. In addition, we consider nonperformance risk in determining the fair value of our liabilities. Therefore, changes in our credit or financial strength ratings or the credit or financial strength ratings of our Parent or rated affiliates may affect the fair value of our liabilities.

Financial strength ratings represent the opinions of rating agencies regarding the financial ability of an insurance company to meet its obligations under an insurance policy. Credit ratings represent the opinions of rating agencies regarding an entity's ability to repay its indebtedness. These ratings are not a recommendation to buy or hold any of our securities and they may be revised or revoked at any time at the sole discretion of the rating organization.

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Our financial strength and credit ratings as of the date of this Quarterly Report on Form 10-Q are summarized in the following table. In parentheses, following the initial occurrence in the table of each rating, is an indication of that rating’s relative rank within the agency’s rating categories. That ranking refers only to the generic or major rating category and not to the modifiers appended to the rating by the rating agencies to denote relative position within such generic or major category. For each rating, the relative position of the rating within the relevant rating agency’s ratings scale is presented, with “1” representing the highest rating in the scale.

Company	A.M. Best	Fitch	Moody's	S&P
Voya Retirement Insurance and Annuity Company
Financial Strength Rating	A (3 of 16)	A (3 of 9)	A2 (3 of 9)	A (3 of 9)

Rating Agency	Financial Strength Rating Scale
A.M. Best(1)	"A++" to "S"
Fitch(2)	"AAA" to "C"
Moody's(3)	"Aaa" to "C"
S&P(4)	"AAA" to "R"

⁽¹⁾ A.M. Best’s financial strength rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. It is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile.

⁽²⁾ Fitch’s financial strength ratings provide an assessment of the financial strength of an insurance organization. The National Insurer Financial Strength ("IFS") Rating is assigned to the insurance company's policyholder obligations, including assumed reinsurance obligations and contract holder obligations, such as guaranteed investment contracts.

⁽³⁾ Moody’s financial strength ratings are opinions of the ability of insurance companies to repay punctually senior policyholder claims and obligations. Moody's appends numerical modifiers 1, 2 and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.

⁽⁴⁾ S&P’s insurer financial strength rating is a forward-looking opinion about the financial security characteristics of an insurance organization with respect to its ability to pay under its insurance policies and contracts in accordance with their terms. A "+" or "-" indicates relative strength within a category.

Our ratings by A.M. Best Company, Inc. ("A.M. Best"), Fitch, Moody's and S&P reflect a broader view of how the financial services industry is being challenged by the current economic environment, but also are based on the rating agencies' specific views of our financial strength. In making their ratings decisions, the agencies consider past and expected future capital and earnings, asset quality and risk, profitability and risk of existing liabilities and current products, market share and product distribution capabilities and direct or implied support from parent companies.

Rating agencies use an "outlook" statement for both industry sectors and individual companies. For an industry sector, a stable outlook generally implies that over the next 12 to 18 months the rating agency expects ratings to remain unchanged among companies in the sector. For a particular company, an outlook generally indicates a medium- or long-term trend in credit fundamentals, which if continued, may lead to a rating change.

There were no ratings actions, affirmations or outlook changes by S&P, Fitch, Moody’s or A.M. Best from December 31, 2017 through March 31, 2018 and subsequently through the date of this Quarterly Report on Form 10-Q .

Reinsurance

Effective January 1, 2018, we recaptured our coinsurance agreement with Langhorne I, LLC (“Langhorne”) to manage the reserve and capital requirements in connection with a portion of our Stabilizer and Managed Custody Guarantee, which resulted in us recording a $74 million pre-tax gain on recapture of reinsured business that was reported in Operating expenses in the Condensed Consolidated Statement of Operations.

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Derivatives

Our use of derivatives is limited mainly to economic hedging to reduce our exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and market risk. It is our policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement.

We enter into interest rate, equity market, credit default and currency contracts, including swaps, futures, forwards, caps, floors and options, to reduce and manage various risks associated with changes in value, yield, price, cash flow, or exchange rates of assets or liabilities held or intended to be held, or to assume or reduce credit exposure associated with a referenced asset, index, or pool. We also utilize options and futures on equity indices to reduce and manage risks associated with our annuity products. Derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recorded in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

We also have investments in certain fixed maturities and have issued certain annuity products that contain embedded derivatives for which fair value is at least partially determined by levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity markets, or credit ratings/spreads. Embedded derivatives within fixed maturities are included with the host contract on the Condensed Consolidated Balance Sheets and changes in fair value of the embedded derivatives are recorded in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. Embedded derivatives within certain annuity products are included in Future policy benefits and contract owner account balances on the Condensed Consolidated Balance Sheets and changes in the fair value of the embedded derivatives are recorded in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

In addition, we have entered into a reinsurance agreement, accounted for under the deposit method, that contains an embedded derivative, the fair value of which is based on the change in the fair value of the underlying assets held in trust. The embedded derivatives within the reinsurance agreements are reported in Other liabilities on the Condensed Consolidated Balance Sheets, and changes in the fair value of the embedded derivative are recorded in Interest credited and other benefit to contract owners/policyholders in the Condensed Consolidated Statements of Operations.

Off-Balance Sheet Arrangements

The Company has obligations for the return of non-cash collateral under a recent amendment to our securities lending program. Non-cash collateral received in connection with the securities lending program may not be sold or re-pledged by our lending agent, except in the event of default, and is not reflected on the Company’s Condensed Consolidated Balance Sheets. For information regarding obligations under this new program, see the Investments Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.

For changes in commitments related to the acquisition of mortgage loans and the purchase of limited partnerships and private placement investments, see the Commitments and Contingencies Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.

Other than the above, there have been no material changes to our off-balance sheet arrangements since the filing of our Annual Report on Form 10-K.

Legislative and Regulatory Developments

In April 2018, the SEC published a proposed rule that would, among other things, apply a heightened “best interest” standard to broker-dealers and their associated persons when they make securities investment recommendations to retail customers. If the SEC finalizes this rule other federal regulators (including the Department of Labor ("DOL")) and state regulators may follow with their own rules applicable to investment recommendations relating to other separate or overlapping investment products and accounts, such as insurance products and retirement accounts. The DOL recently implemented a rule that broadened the definition of “fiduciary” (among other things) in the context of ERISA and IRA assets, but this rule was vacated in its entirety by the U.S. Court of Appeals for the Fifth Circuit in March 2018.

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Item 4. Controls and Procedures

Disclosure Controls and Procedures

The Company carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended ("Exchange Act")) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the Company's current disclosure controls and procedures are effective in ensuring that material information relating to the Company required to be disclosed in the Company's periodic SEC filings is made known to them in a timely manner.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the quarter ended March 31, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II.    OTHER INFORMATION

Item 1.Legal Proceedings

See the Commitments and Contingencies Note in our Condensed Consolidated Financial Statements in Part I., Item 1. of this Quarterly Report on Form 10-Q.

Item 1A.Risk Factors

For a discussion of the Company's potential risks or uncertainties, please see "Risk Factors" in Part I, Item 1A. in our Annual Report on Form 10-K for the year ended December 31, 2017 (the "Annual Report on Form 10-K") filed with the Securities and Exchange Commission. In addition, please see "Management’s Narrative Analysis of the Results of Operations and Financial Condition" herein and in the Annual Report herein and in the Annual Report on Form 10-K.

Item 6.Exhibits

See Exhibit Index on page 76 hereof.

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SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

May 10, 2018			Voya Retirement Insurance and Annuity Company
(Date)			(Registrant)
	By:	/s/	Francis G. O'Neill
			Francis G. O'Neill
			Senior Vice President and
			Chief Financial Officer
			(Duly Authorized Officer and Principal Financial Officer)

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Voya Retirement Insurance and Annuity Company ("VRIAC")

Exhibit Index
Exhibit Number	Description of Exhibit
10.1+	Account Control Agreement, dated as of February 8, 2018, among VRIAC, Federal Home Loan Bank of Boston, and The Bank of New York Mellon.
10.2+	Agreement for Advances, Collateral, Pledge and Security Agreement, effective as of February 8, 2018, by and between VRIAC and the Federal Home Loan Bank of Boston.
31.1+	Certificate of Francis G. O'Neill pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2+	Certificate of Charles P. Nelson pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1+	Certificate of Francis G. O'Neill pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2+	Certificate of Charles P. Nelson pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS+	XBRL Instance Document
101.SCH+	XBRL Taxonomy Extension Schema
101.CAL+	XBRL Taxonomy Extension Calculation Linkbase
101.DEF+	XBRL Taxonomy Extension Definition Linkbase
101.LAB+	XBRL Taxonomy Extension Label Linkbase
101.PRE+	XBRL Taxonomy Extension Presentation Linkbase

+Filed herewith.

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EX-10.1

Exhibit 10.1

ACCOUNT CONTROL AGREEMENTFebruary 8, 2018

Federal Home Loan Bank of Boston (the “Secured Party”); Voya Retirement Insurance and Annuity Company (the “Customer”); and The Bank of New York Mellon (the “Bank”) hereby agree as follows:

PREAMBLE

1.    The Bank will establish, at the request of the Customer, a securities custody account number     223447     in the name ofVoya Retirement Insurance and Annuity Company (the “Account”) pursuant to a custody agreement between the Bank and the Customer (the “Custody Agreement”).

2.    The Customer has granted the Secured Party a security interest in the Account and all of the assets now or hereafter credited to, carried in or otherwise held by the Bank in the Account pursuant to the Agreement for Advances, Collateral Pledge and Security Agreement between the Customer and the Secured Party (as amended, restated, replaced, or otherwise modified from time to time, the “Advances Agreement”).

3.    The Secured Party, the Customer and the Bank (at the request of the Secured Party and the Customer) are entering into this Account Control Agreement (this “Agreement”) to provide for the control of the Account. It is understood that the Bank has no responsibility with respect to the validity or perfection of the security interest other than to act in accordance with the terms of this Agreement.

DEFINITIONS

As used herein the following terms shall have the following meanings:

Authorized Person shall mean each person the Bank reasonably believes to be (a) a person listed on Exhibit A hereto, or (b) a person who has been designated by written notice from the Customer or the Secured Party (as the case may be) to act on behalf of such party under this Agreement. The Bank may assume that such persons will continue to be Authorized Persons until such time as the Bank receives and has had reasonable time to act uponinstructions from the Customer or the Secured Party, as applicable, that any such person is no longer an Authorized Person.

Entitlement Holder shall mean a person identified in the records of the Bank as the person having a Security Entitlement against the Bank.

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Entitlement Order shall mean a notification communicated to the Bank directing transfer or redemption of a Financial Asset in which the Entitlement Holder has a Security Entitlement.

Financial Assets shall mean any securities and other property held in the Account, but does not include any cash credit balance that may be maintained in the Account.

Pledged Assets shall mean any Financial Assets and any cash credit balance which may be maintained in the Account.

Security Entitlement shall mean the rights and property interest of an Entitlement Holder with respect to a financial asset within the meaning of Part 5 of Article 8 of the New York Uniform Commercial Code (the “UCC”).

TERMS

Section 1. The Account; Removal and Substitution of Pledged Assets; Appointment of the Bank.

Each party hereto agrees that: (i) the Account constitutes (a) a “securities account” within the meaning of Article 8 of the UCC with respect to securities and (b) a “deposit account” within the meaning of Article 9 of the UCC with respect to cash, and (ii) all Financial Assets now or hereafter held, maintained or carried in, or credited to, the Account shall be treated as financial assets within the meaning of Article 8 of the UCC.

The Customer agrees to deliver, from time to time, to the Bank certain Pledged Assets to be held in the Account. The Customer further agrees that it shall, at all times, as may be specified by the Bank, provide the Bank with such duly executed endorsements and release forms or other documents as the Bank may reasonably deem necessary to enable the Bank to transfer any applicable Pledged Assets pursuant to this Agreement.

Pledged Assets currently or hereafter maintained in the Account do not reflect any Financial Assets which are registered in the name of the Customer, payable to the Customer's order, or specifically endorsed to the Customer, which have not been endorsed to the Bank or in blank.

To the Bank's knowledge, the Security Entitlements arising out of the Financial Assets held in the Account are valid and legally binding obligations of the Bank and, except for the claims and interest of the Secured Party and the Customer in the Account (subject to any, claim in favor of the Bank permitted under Section 2 hereof), the Bank has not been notified in writing of any claim to or interest in the Account.

The Customer agrees that it will only deliver, transfer, or cause to be delivered to the Bank for crediting to the Account assets that are of such type and nature as have been specified in writing by the Secured Party as being eligible for purposes of satisfying the

2

Customer’s “Collateral Maintenance Level” (as that termisdefined in the Advances Agreement). The Bank shall have no responsibility to determine whether assets delivered, transferred or held in the Account are eligible collateral.

With respect to Pledged Assets delivered to the Bank prior to 12:00 p.m. (Eastern Time) on any business day, the Bank shall send a written confirmation to the Secured Party not later than the close of such business day following the initial pledge of such Pledged Assets by the Customer, and with respect to Pledged Assets delivered after such time, no later than the next succeeding business day. The Bank shall segregate in one location, and separately account on its books and records for, the Pledged Assets from all other property in the Bank’s possession, custody, or control including other property it holds in its individual capacity or in any other trust or custodial capacity for the Customer.

Until such time as the Secured Party delivers a Notice of Exclusive Control (as defined in Section 4 below) to the Bank, the Customer may transfer Pledged Assets from the Account or substitute other Pledged Assets for any Pledged Assets then held in the Account.

The Customer and the Secured Party each hereby (i) appoints the Bank to perform its duties as hereinafter set forth, (ii) authorizes the Bank to hold Pledged Assets in the Account and (iii) authorizes the Bank to hold Financial Assets in registered form in its name or the name of its nominees. The Bank hereby accepts such appointment and agrees to establish and maintain the Account and appropriate records identifying the Pledged Assets in the Account as pledged by the Customer to the Secured Party.

The Bank hereby agrees to accept and hold the Pledged Assets in the Account as bailee and securities intermediary for the benefit of the Secured Party pursuant to the terms of this Agreement and the Advances Agreement.

Section 2. Pledged Assets. The Secured Party and the Customer agree that there shall be no trading of securities in the Account and that all securities that are transferred into the Account as Pledged Assets shall be fully paid for and that all trade settlements of transactions for such securities shall be completed prior to transfer of such securities into the Account as Pledged Assets. The Bank shall be entitled to reverse any cash credit previously made to the Account due to mispostings or other similar causes such as error or the non-receipt of any income or dividend distribution.

Section 3. Priority of Lien. The Bank hereby acknowledges the security interest granted to the Secured Party by the Customer. With respect to the Secured Party’s interest in the Account, the Bank hereby waives and releases all liens, encumbrances, claims and rights of setoff it may have against the Account or any Pledged Assets carried in the Account so long as this Agreement is in effect.

Section 4. Entitlement Orders; Control. The Bank is hereby authorized to and will comply with Entitlement Orders and other directions originated by an Authorized Person

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of the Secured Party and delivered to the Bank concerning the Account without further consent by the Customer.

The Bank agrees and confirms, as of the date hereof, and at all times until the termination of this Agreement, that it has not entered into, and until the termination of this Agreement will not enter into (without the prior written consent of the Secured Party and the Customer), any agreement with any person or entity other than the Customer and the Secured Party relating to the Account or any Pledged Assets under which it has agreed or will agree (as the case may be) to comply with Entitlement Orders or other instructions of such other person or entity.

Until such time as the Secured Party delivers a written notice to the Bank in the form annexed hereto as Exhibit B, notifying the Bank that the Secured Party is thereby exercising exclusive control over the Account (any such notice, a “Notice of Exclusive Control”), the Bank shall comply with Entitlement Orders and other directions delivered to the Bank concerning Pledged Assets by an Authorized Person of the Customer. Upon delivery of a Notice of Exclusive Control to the Bank:

A.     The Bank shall only be authorized to comply with Entitlement Orders and other directions delivered to it by an Authorized Person of the Secured Party.

B.     After the Bank receives a Notice of Exclusive Control, the Bank will, after having had a reasonable opportunity to act on such notice, cease complying with Entitlement Orders and other directions concerning the Account originated by the Customer or any Authorized Persons of the Customer.

C.     Upon crediting any asset to the Account, the Bank shall, as soon as practicable, provide the Secured Party and the Customer with an electronic notice of receipt or other account statement (“Custody Receipt” and, collectively, “Custody Receipts”). At a minimum, each Custody Receipt must include the name of the Customer and an adequate description of the asset. This information shall be reported to the Secured Party and the Customer in a form (which may be an electronic file that is made available daily) that is agreed upon (and, in the case of an electronic file, is made available in an agreed-upon manner) by the Secured Party and the Bank; and

D.     The Bank shall as soon as practicable, provide the Secured Party and the Customer with electronic notice of any call on any assets held in the Account.The Custody Receipt under  Section 4(c)  and electronic notice per this Section 4(d) shall be deemed given by the Bank to the Customer and the Secured Party to the extent that the Customer and the Secured Party, as the case may be, had previously requested and had been given access to the Bank’s automated data system affording on-line access to Account information and such information is posted by the Bank on such system within the relevant period.

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Each of the Secured Party and the Customer agree to send the other copies of any Entitlement Orders or other directions (including, in the case of the Secured Party, any Notice of Exclusive Control) delivered by it to the Bank.

Section 5. Payment of Income; Voting Rights; Deposits; Withdrawals.

A.     Notwithstanding whether the Secured Party has delivered a Notice of Exclusive Control, the Bank shall without further action by the Customer or the Secured Party (i) remit or make available to the Customer all interest, dividends and other income on the Pledged Assets in the Account, and(ii) pursuant to the terms of the Custody Agreement, send to the Customer any proxies and other voting rights and corporate actions received by the Bank in respect of the Pledged Assets and follow any instructions and directions from the Customer in respect of such proxies and rights; provided, however, that, pursuant to Section 4 hereof, the Bank shall comply with directions originated by an Authorized Person of the Secured Party and delivered to the Bank that limit, restrict or block the rights of the Customer set forth in this Section 5.A without further consent by the Customer, including, without limitation, the right of Customer to receive interest, dividends and other income on the Pledged Assets in the Account. The Bank shall have a continuing obligation to the Customer and the Secured Party to receive any principal, interest, dividends or other moneys due and collectible on or with respect to any Pledged Asset. The Bank shall not be responsible for the failure to receive payment of, or the late payment of, income or other payments due to the Account.

B.    Notwithstanding whether the Secured Party has delivered a Notice of Exclusive Control, the Customer shall be permitted to deliver Financial Assets into the Account in its discretion; provided, however, that if the Customer delivers an ineligible Financial Asset into the Account as determined by the Secured Party in accordance with its credit policies, upon notice from the Secured Party, the Customer shall promptly submit a Withdrawal Request (hereinafter defined) with respect to such ineligible Financial Asset. The Customer shall only be permitted to withdraw Financial Assets from the Account with the Secured Party’s prior consent. In order to request the Secured Party’s consent, the Customer shall complete a form provided to the Customer by the Secured Party indicating, among other things, the Financial Asset(s) that the Customer desires to withdraw from the Account (a “Withdrawal Request”). Upon the Secured Party’s receipt of a completed Withdrawal Request, the Secured Party shall promptly (i) approve or disapprove of the Withdrawal Request in its sole discretion, and (ii) provide notice of its decision to both the Customer and the Bank; provided, however, the Secured Party shall not unreasonably withhold approval of the Customer’s Withdrawal Request if, after giving effect to the transactions contemplated by the Withdrawal Request, the Account would hold Financial Assets constituting eligible collateral sufficient to fully satisfy the Customer’s required Collateral Maintenance Level (as defined in the Advances Agreement).

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Section 6. Statements, Confirmations and Notices of Adverse Claims.

Upon execution of a separate electronic access agreement, the Bank will make available by electronic means, copies of all statements and confirmations concerning the Account to each of the Customer and the Secured Party. If any person notifies the Bank of its assertion of any lien, encumbrance or adverse claim against the Account or in any Pledged Asset contained therein, the Bank will promptly notify the Secured Party and the Customer thereof.

Section 7. Responsibility of the Bank.The Bank shall have no responsibility or liability to the Secured Party for executing settlements of Financial Assets held in the Account at the direction of an Authorized Person of the Customer, or complying with Entitlement Orders or other directions concerning the Account from an Authorized Person of the Customer which are received by the Bank before the Bank has received, and had a reasonable opportunity to comply with, a Notice of Exclusive Control. The Bank shall have no responsibility or liability to the Customer for complying with a Notice of Exclusive Control or complying with Entitlement Orders or other directives concerning the Account originated by the Secured Party following the Bank’s receipt of a Notice of Exclusive Control. The Bank shall have no duty to investigate or make any determination as to whether a default exists under any agreement between the Customer and the Secured Party and shall comply with a Notice of Exclusive Control even if it believes that no such default exists. This Agreement does not create any obligation or duty for the Bank other than those expressly set forth herein.

Section 8. Standard of Care; Limitations of Bank’s Liability. In performing its duties under this Agreement, the Bank shall exercise the standard of care and diligence that a professional custodian would observe in these affairs, but any liability on its part for loss related to any Pledged Asset shall not exceed the market value thereof on the date of the discovery of such loss. Notwithstanding any provision contained herein or in any other document or instrument to the contrary and except for losses arising from the Bank’s own negligence or willful misconduct, neither the Bank nor any of its officers, employees or agents shall be liable for any action taken or not taken by it under or in connection with this Agreement. In no event shall the Bank be liable for indirect, special or consequential damages of any kind whatsoever (including lost profits and lost business opportunity) even if it is advised of the possibility of such damages and regardless of the form of action in which any such damages may be claimed. Without limiting the foregoing, and notwithstanding any provision to the contrary elsewhere, the Bank and its officers, employees and agents:

a. shall have no responsibilities, obligations or duties other than those expressly set forth in this Agreement, and no implied duties, responsibilities or obligations shall be read into this Agreement against the Bank; without limiting the foregoing, the Bank shall have no duty to preserve, exercise or enforce rights in the Pledged Assets (against prior parties or otherwise);

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b. may in any instance where the Bank determines that it lacks or is uncertain as to its authority to take or refrain from taking certain action, or as to the requirements of this Agreement under any circumstance before it, delay or refrain from taking action unless and until it has received written instructions signed by each of the Secured Party and the Customer, or it has received written advice from legal counsel (or other appropriate advisor);

c. so long as it and they shall have acted (or refrained from acting) in good faith, shall not be liable for any error of judgment in any action taken, suffered or omitted by, or for any act done or step taken, suffered or omitted by, or for any mistake of fact or law, unless such action constitutes gross negligence or willful misconduct on its (or their) part;

d. may consult with legal counsel selected by it (orother experts for the Secured Party or the Customer), and shall not be liable for any action taken or not taken by it or them in good faith in accordance with the written advice of such experts;

e. will not be responsible to the Secured Party for any statement, warranty or representation made by any party other than the Bank in connection with this Agreement;

f. will have no duty to ascertain or inquire as to the performance or observance by the Customer of any of the terms, conditions or covenants of any security agreement with the Secured Party;

g. will not be responsible to the Secured Party or the Customer for the due execution, legality, validity, enforceability, genuineness, effectiveness or sufficiency of this Agreement, other than with respect to the Bank;

h. will not incur any liability by acting or not acting in reliance upon any notice, consent, certificate, statement or other instrument or writing reasonably believed by it or them to be genuine and signed or sent by an Authorized Person of the Customer or, following the delivery of a Notice of Exclusive Control by the Secured Party, an Authorized Person of the Secured Party;

i. will not incur liability for any notice, consent, certificate, statement, wire instruction, telecopy, or other writing which is delayed, canceled or changed without the actual knowledge of the Bank;

j. will not be deemed to have or be charged with notice or knowledge of any fact or matter unless a written notice thereof has been received by the Bank at the address and to the person designated in (oras subsequently designated pursuant to) this Agreement;

k. will not be obligated or required by any provision of this Agreement to expend or risk the Bank’s own funds, or to take any action (including but not limited to the institution or defense of legal proceedings) which in its or their reasonable judgment may cause it or them to incur or suffer any expense or liability;

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1. will not incur any liability for acts or omissions of any domestic or foreign depository or book-entry system for the central handling of Financial Assets or any domestic or foreign custodian or subcustodian; and

m. will not be responsible for the title, validity or genuineness of any Financial Asset in or delivered into the Account.

Section 9. Indemnification of the Bank.

(a)    The Customer agrees to indemnify the Bank and to hold it harmless against any costs, expenses, damages, liabilities or claims, including reasonable counsel’s fees (collectively, “Losses”) (including claims by the Secured Party) which are sustained by the Bank as a result of the Bank’s performance under this Agreement, including for following instructions or other directions issued by either the Customer or the Secured Party hereunder, except those Losses arising out of the Bank’s negligence, bad faith, or willful misconduct in carrying out such instructions or other directions.

(b)    In addition to and not in limitation of Section 9(a) immediately above, the Secured Party agrees to indemnify and hold the Bank harmless from and against any and all Losses that may be imposed on, incurred by or asserted against the Bank for following any instructions or other directions issued by the Secured Party hereunder except those Losses arising out Bank’s negligence, bad faith or willful misconduct in carrying out such instructions or other directions.

(c)    This indemnity shall be a continuing obligation of the Customer and the Secured Party notwithstanding the termination of any transactions or of this Agreement.

Section 10. Compliance with Legal Process and Judicial Orders. If any Pledged Assets are at any time attached or levied upon, or in case the transfer, delivery, redemption or withdrawal of any such Pledged Assets shall be stayed or enjoined, or in the case of any other legal process or judicial order affecting such Pledged Assets, the Bank is authorized to comply with any such order in any matter as the Bank or its legal counsel reasonably deems appropriate. If the Bank complies with any process, order, writ, judgment or decree relating to the Pledged Assets subject to this Agreement, then the Bank shall not be liable to the Customer or the Secured Party or to any other person or entity even if such order or process is subsequently modified, vacated or otherwise determined to have been without legal force or effect.

Section 11. Force Majeure. The Bank shall not be responsible for delays or failures in performance resulting from acts beyond its control. Such acts shall include but not be limited to acts of God, strikes, lockouts, riots, acts of war or terrorism, epidemics, nationalization, expropriation, currency restrictions, governmental regulations superimposed after the fact, fire, communication line failures, power failures, earthquakes or other disasters.

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Section 12. Representations.Each of the parties represents and warrants that (i) it is duly incorporated or organized and is validly existing in good standing in its jurisdiction of incorporation or organization, (ii) the execution, delivery and performance of this Agreement and all documents and instruments to be delivered hereunder or thereunder have been duly authorized, (iii) the person executing this Agreement on its behalf has been duly authorized to act on its behalf, (iv) this Agreement constitutes its legal, valid, binding and enforceable agreement, and (v) its entry into this Agreement will not violate any material agreement, law, rule or regulation by which it is bound or by which any of its assets are affected.

Section 13. Customer Agreement. In the event of a conflict between this Agreement and the Custody Agreement between the Bank and the Customer relating to the Account, the terms of this Agreement will prevail and in all other respects the terms of the Custody Agreement relating to the Account shall apply with respect to any matters not covered by this Agreement. Regardless of any provision in any such agreement, the State of New York shall be deemed to be the Bank’s location for the purposes of this Agreement and the perfection and priority of the Secured Party’s security interest in the Account.

Section 14. Termination; Removal/Resignation of the Bank. The rights and powers granted herein to theSecured Party have been granted in order to perfect its security interest in the Account, are powers coupled with an interest and will neither be affected by the bankruptcy of the Customer nor by the lapse of time. The obligations of the Bank under this Agreement shall continue in effect (i) until the security interest of the Secured Party in the Account has been terminated and the Secured Party has notified the Bank of such termination in writing, or (ii) this Agreement is terminated. Any of the parties may terminate this Agreement upon 30 days’ prior written notice to both of the other parties hereto; provided, however, that any Pledged Assets which have not been released by the Secured Party at or prior to the time of termination shall be transferred to a substitute bank designated by the Customer and acceptable to the Secured Party. The provisions of Sections 8 and 9 shall survive the termination of this Agreement.

The Bank may at any time resign by giving at least 60 days prior written notice to the Customer and the Secured Party. If the Customer (or the Secured Party following the delivery of a Notice of Exclusive Control to the Bank) has reasonable cause to believe that the Bank has or will violate any law, rule or regulation or has or will breach its duties hereunder, the Customer (or the Secured Party following the delivery of a Notice of Exclusive Control to the Bank) may immediately remove the Bank.

Following any such resignation or removal, the Customer may appoint a successor but only with the prior written approval of the Secured Party. Any successor to the Bank shall execute and deliver an agreement substantially in the form of this Agreement. Upon appointment of a successor, the Bank shall deliver over to such successor all Pledged Assets or other property then held in the Account. Notwithstanding any provision to the contrary herein, no removal or resignation shall become effective until a successor is appointed in

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accordance with the provisions hereof. Upon termination, the parties hereto agree to take such actions and execute such documents as shall be necessary to effect the same.

Section 15. Entire Agreement. This Agreement and the exhibits hereto and the agreements and instruments required to be executed and delivered hereunder set forth the entire agreement of the parties with respect to the subject matter hereof and supersede and discharge all prior agreements (written or oral) and negotiations and all contemporaneous oral agreements concerning such subject matter and negotiations. There are no oral conditions precedent to the effectiveness of this Agreement.

Section 16. Amendments.No amendment, modification or termination of this Agreement or waiver of any right hereunder shall be binding on any party hereto unless it is in writing and is signed by each party hereto.

Section 17. Severability. If any term or provision set forth in this Agreement shall be invalid or unenforceable, the remainder of this Agreement, or the application of such terms or provisions to persons or circumstances, other than those to which it is held invalid or unenforceable, shall, be construed in all respects as if such invalid or unenforceable term or provision were omitted.

Section 18. Successors. The terms of this Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns.

Section 19. Rulesof Construction. In this Agreement, words in the singular number include the plural, and in the plural include the singular; words of the masculine gender include the feminine and the neuter, and when the sense so indicates words of the neuter gender may refer to any gender and the word “or” is disjunctive but not exclusive. The captions and section numbers appearing in this Agreement are inserted only as a matter of convenience. They do not define, limit or describe the scope or intent of the provisions of this Agreement.

Section 20. Notices.Any notice, request, Entitlement Order, directive or other communication required or permitted to be given under this Agreement shall be in writing and deemed to have been properly given when delivered in person, or when sent by telecopy or other electronic means (acceptable to the Bank, if to the Bank) and electronic confirmation of error free receipt is received, or after being sent by certified or registered United States mail, return receipt requested, postage prepaid. Until such time a party properly notified each other party that its address or facsimile number has changed, notices to such party shall be sent to:

If to the Bank:

The Bank of New York Mellon

111 Sanders Creek Parkway

East Syracuse, NY 13057

Attention: Brooke Tedesco

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Telephone: 315-414-3619

Telecopier: 315-414-5028

If to the Customer:

Voya Retirement Insurance and Annuity Company

5780 Powers Ferry Rd. NW

Atlanta, GA 30327

Attention: Mark Boland

Telephone: 770-850-7745

Telecopier: 612-492-0717 and 770-933-6733

If to the Secured Party:

Federal Home Loan Bank of Boston

800 Boylston Street, 9^th Floor

Boston, MA 02199

Attention: David M. Trant

Telephone: 617-292-9729

Telecopier: 617-375-2240

Section 21. Counterparts. This Agreement may be executed in any number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Agreement by signing and delivering one or more counterparts.

Section 22. Choice of Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to laws as to conflicts of laws, and shall be binding on the parties hereto and their respective successors and assigns.

Section 23. Fees.The Customer shall pay to the Bank the compensation agreed upon in writing from time to time and any other includable actual and documented expenses incurred in connection herewith. The Bank shall fulfill its obligations under this Agreement without any right of compensation from the Secured Party.

Section 24. Consent to Jurisdiction and Service. The Secured Party and the Customer each hereby absolutely and irrevocably consents and submits to the jurisdiction of the courts of the State of New York and of any Federal court located in the County and State of New York in connection with any actions or proceedings brought against the Secured Party or the Customer by the Bank or by the Secured Party or theCustomer againstthe Bank and arising out of or relating to this Agreement. Each party hereto hereby irrevocably waives any objection on the grounds of venue, forum non conveniens, or any similar grounds, and irrevocably consents to service of process by mail or in any other manner permitted by New York law, and irrevocably waives its right to any jury trial.

Section 25. Customer’s Covenants.

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A. The Customer covenants that, at the Secured Party’s reasonable request, it will promptly cooperate with the Secured Party to take any action that the Secured Party reasonably requests to enable the Secured Party to: (i) sell, assign, transfer, or dispose of any item in the Account; (ii) otherwise secure the payment of Advances, as defined in the Advances Agreement; or (c) carry out the provisions of this Agreement.

B. The Customer covenants, represents, and warrants that once assets are delivered to the Account, no entity will have a security interest that is superior to the Bank’s, and no third-party shall have, or be granted, control of the Account or the Pledged Assets.

C. The Customer covenants, represents, and warrants that it hasgranted, or is hereby granting, the Secured Party a security interest in the Account and any Pledged Assets held therein from time to time.

Section 26. Certifications. Upon the reasonable request of the Secured Party, the Customer agrees to provide the Secured Party with the following certification:

“Voya Retirement Insurance and Annuity Company (“Customer”) hereby certifies that, in accordance with the terms of the Account Control Agreement (the “Agreement”) entered into on [DATE], among the Federal Home Loan Bank of Boston (“Secured Party”), Customer, and The Bank of New York Mellon (“Bank”):

(i)Secured Party holds the superior, perfected security interest in the Account established under the Agreement and the financial assets held in such Account;

(ii)     Customer has not granted to, and shall notgrant to, any third party control of the Account or the financial assets held in the Account;

(iii)     In accordance with the terms of the Agreement for Advances, Collateral Pledge, and Security Agreement between Customer and Secured Party (as amended, restated, replaced, or otherwise modified from time to time, the “Advances Agreement”), Customer maintains, shall maintain, and, if applicable, during the period since its prior certification given in accordance with Section 26 of the Agreement, has maintained Collateral (as defined therein) in the Account which, when combined with all other qualified eligible collateral securing advances made by Secured Party to Customer pursuant to the Advances Agreement, is, and, if applicable, was during the period since its prior certification given in accordance with Section 26 of the Agreement, sufficient to satisfy its Collateral Maintenance Level (as defined therein):

(a)Free and clear of any encumbrance or security interest that is superior in priority to Secured Party’s security interest; and

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(b)In which no other party has control, possession, or otherwise perfected its security interest, except where such third party has subordinated its security interest to Secured Party by written agreement.

Section 27. SSAE 16 or 18. Bank will provide the Customer upon request a copy of the most recent SSAE 16 or 18 report prepared by its externalauditors and applicable to Bank’s services provided under this Agreement, or if such report ceases to be prepared, the applicable successor audit report, if any.

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IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the date set forth below.

FEDERAL HOME LOAN BANK OF BOSTON

(Secured Party)

By: /s/    Wes Howland        

Title: Head of Credit        

Date: 2/12/18         

VOYA RETIREMENT INSURANCE AND ANNUITY COMPANY

(Customer)

By: /s/ Debra Bell        

Title: VP & Assistant Treasurer

Date: 2/8/18         

THE BANK OF NEW YORK MELLON

(Bank)

By: /s/ Efren Almazan        

Title: Vice President        

Date: 2/14/18         

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EX-10.2

Exhibit 10.2

AGREEMENT FOR ADVANCES, COLLATERAL PLEDGE AND SECURITY AGREEMENT

(SPECIFIC LIEN - DELIVERY)

This AGREEMENT FOR ADVANCES, COLLATERAL PLEDGE AND SECURITY AGREEMENT (this “Agreement”) is entered into by and between Voya Retirement Insurance and Annuity Company (the “Member”) and the FEDERAL HOME LOAN BANK OF BOSTON (the “Bank”). This Agreement shall be effective as of the last signature date set forth below.

WHEREAS, the Bank, subject to the provisions of the Federal Home Loan Bank Act (as in effect from time to time, the “Bank Act”), the rules and regulations of the Bank’s primary federal regulator (as in effect from time to time, the “Federal Regulations”), and the Bank’s policies and procedures, is authorized to make available to its members Advances and Other Credit Products;

WHEREAS, the Member desires from time to time to apply for such Advances and Other Credit Products that may be available to it; and

WHEREAS, the Bank requires, among other things, that such Advances and Other Credit Products be secured pursuant to this Agreement, and the Member agrees to provide such security as requested by the Bank by the means set forth in this Agreement.

NOW, THEREFORE, intending to be legally bound, the Member and the Bank agree as follows:

1. Definitions.

As used herein, the following terms shall have the following meanings:

“Advances” means any and all loans, advances of funds, or other extensions of credit now or hereafter made by the Bank to the Member, including all loans, advances of funds, or extensions of credit made by the Bank to the Member prior to the date hereof.

“Affiliate” means any business entity that controls, or is controlled by, or is under common control with the Member.

“Authorized Person” shall have the meaning set forth in Section 2(f) hereof.

“Boston Banking Business Day” means any day on which the Bank is open for business.

“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed.

“Collateral” shall have the meaning set forth in Section 3 hereof.

“Collateral Account” shall have the meaning set forth in Section 3(c) hereof.

“Collateral Maintenance Level” means such aggregate value of Eligible Collateral as is specified in writing by the Bank to the Member from time to time as being the Collateral Maintenance Level that the Member is required to maintain hereunder. The Bank may increase or decrease the Collateral Maintenance Level at any time in its discretion.

“Confirmation” shall have the meaning set forth in Section 2(a)(ii) hereof.

“Correspondent Services Agreement” means that certain Correspondent Services Agreement executed by and between the Member and the Bank.

“Cost of Funds” shall have the meaning set forth in Section 2(d)(iii) hereof.

“Cut-off Time” shall have the meaning set forth in Section 2(d)(iii) hereof.

“Eligible Collateral” means Collateral that is: (a) eligible to be pledged by the Member to the Bank in accordance with the Products and Solutions Guide; and (b) acceptable to the Bank in the Bank’s sole discretion.

“Event of Default” shall have the meaning set forth in Section 7(a) hereof.

“Gross Amount Basis” shall have the meaning set forth in Section 2(d)(iii) hereof.

“IDEAL Way Account” shall have the meaning set forth in Article I of the Correspondent Services Agreement.

“Indebtedness” means all obligations, liabilities or indebtedness of the Member to the Bank, due or to become due, direct or indirect, absolute or contingent, joint or several, now existing or hereafter at any time created, arising or incurred, under this Agreement, the Correspondent Services Agreement, any Other Credit Product Agreement, funding agreement, application, commitment, or other agreement or document governing an Advance, Other Credit Product or any other products or services (including, without limitation, safekeeping, operating and other correspondent services) provided to the Member by the Bank , any amendments to any of the foregoing agreements or documents and any obligations under indemnification provisions in any such agreements or documents, and any renewal, extension or substitution of any such obligations, liabilities and indebtedness.

“Internet Portal Service” shall have the meaning set forth in Article I of the Correspondent Services Agreement.

“Material Adverse Event” shall have the meaning set forth in Section 4(g) hereof.

“Mortgages” shall have the meaning set forth in Section 3(b) hereof.

“Mortgage Notes” shall have the meaning set forth in Section 3(b) hereof.

“Net Amount Basis” shall have the meaning set forth in Section 2(d)(iii) hereof.

“Other Credit Products” means any and all commitments or obligations under which the Bank agrees to make Advances to the Member or payments on behalf of or for the account of the

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v.1-13

Member, including, without limitation, letters of credit, guarantees or other arrangements intended to facilitate transactions between the Member and third parties, or under which the Bank enters into a credit or financial accommodation, agreement or other arrangement with the Member, including, without limitation, interest rate exchange transactions (such as interest rate swap, cap, collar and floor agreements) and such other products or services as may be offered by the Bank from time to time pursuant to the Products and Solutions Guide and irrespective of whether the Bank's obligation is contingent or conditional.

“Other Credit Product Agreement” means a writing or electronic transmission in such form as shall be specified by the Bank, executed by the Member and, in certain instances, the Bank, and setting forth the obligations of the Member and, in certain instances, the Bank, including, without limitation, any reimbursement agreement, interest rate exchange agreement, confirmation, application, notice, advice or other instrument between the Bank and the Member.

“Products and Solutions Guide” means the Bank’s Products and Solutions Guide, as in effect from time to time (a copy of which is available on the Bank’s website).

“Repayment Date” shall have the meaning set forth in Section 2(d)(iii) hereof.

“Spread” shall have the meaning set forth in Section 2(d)(iii) hereof.

“Superseded Agreements” shall have the meaning set forth in Section 21 hereof.

2. Advances and Other Credit Products.

a. Advances. During the term hereof, the Member shall abide by the terms and conditions set forth in this Agreement, including, without limitation, this Section 2, to receive the Advance products offered by the Bank from time to time. In addition to the terms and conditions of this Agreement, Advances granted hereunder are subject to the terms and conditions specific to the relevant type of advance as set forth in a Confirmation, as well as the terms and conditions of the Products and Solutions Guide, the Federal Regulations, and the Bank Act. The Products and Solutions Guide, the Federal Regulations and the Bank Act shall be deemed to be incorporated by reference into this Agreement.

i. Applications for Advances. Requests for an Advance hereunder shall be made via telephone or via an Internet Portal Service offered by the Bank to its members for such purpose. All requests for Advances made via an Internet Portal Service shall be subject to, among other things, the terms and conditions set forth in Article 9 of the Correspondent Services Agreement. Both the Bank and the Member may electronically record all telephonic requests for an Advance as well as any other telephone conversations relating to any such Advance.

ii. Confirmations. Once the Bank has determined to honor a request from the Member for an Advance (whether made via telephone or via an Internet Portal Service), and subject to Section 2(j) hereof, the Bank shall provide the Member with a Confirmation of Terms stating the interest rate, maturity date and other terms of such Advance, including, without limitation, any prepayment fee applicable to such Advance (a “Confirmation”). The Member hereby consents to the Bank’s delivery of any Confirmation either (A) in hard copy form via any of

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the delivery methods set forth in Section 11 hereof, or (B) in electronic form via an Internet Portal Service offered by the Bank to its members for such purpose. Each Confirmation shall form a part of and be subject to this Agreement. Unless either the Bank or the Member notifies the other party of a discrepancy between the Member’s Advance request and the corresponding Confirmation within ten (10) Business Days of the Bank’s delivery of such Confirmation to the Member, the terms of such Confirmation shall be binding upon the Member. After such time, the Member shall be estopped from challenging such Confirmation on any grounds, and from denying its obligation to repay the Advance evidenced by such Confirmation, any interest thereon, and any expenses, fees, charges or other amounts applicable thereto, in each case, pursuant to the terms of this Agreement.

b. Other Credit Products. During the term hereof, the Member shall abide by the terms and conditions set forth in this Agreement, including, without limitation, this Section 2, to receive Other Credit Products offered by the Bank from time to time. Each Other Credit Product shall be based upon and evidenced by an Other Credit Product Agreement that has been executed by the Member and, in certain instances, the Bank. In addition to the terms and conditions of this Agreement and the applicable Other Credit Product Agreement, each Other Credit Product shall be subject to the terms and conditions of the Products and Solutions Guide, the Federal Regulations and the Bank Act.

c. Representations, Warranties, and Covenants Regarding Advances and Other Credit Products. The Member hereby represents, warrants and covenants that:

i. it is in compliance with all the terms and conditions contained in this Agreement, any Other Credit Product Agreement, the Products and Solutions Guide, the Federal Regulations, and the Bank Act;

ii. it maintains, and will continue to maintain, the terms of all Advances and Other Credit Products granted hereunder on its corporate books and records;

iii. it maintains, and will continue to maintain, sufficient Eligible Collateral to fully secure all outstanding Advances and Other Credit Products as required by this Agreement, the Products and Solutions Guide, the Federal Regulations, and the Bank Act;

iv. it is not subject to any formal enforcement actions with respect to any relevant regulatory body;

v. it expressly understands and agrees that the Member’s management, through hedges or otherwise, of any interest rate or other exposure associated with the Member’s receipt of Advances and Other Credit Products shall be at the Member’s sole risk, expense and liability;

vi. any Authorized Person that requests an Advance or Other Credit Product on behalf of the Member is familiar with the Member’s level of knowledge and experience in financial and business matters as they relate to the Member’s ability to evaluate the merits and risks of such Advance or Other Credit Product, as

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applicable, including, without limitation, any options or derivatives that may be embedded in the Advance or Other Credit Product, as applicable;

vii. the board of directors of the Member has established risk management and capital policies, and the Member’s use of any Advance or Other Credit Product has been duly authorized and approved by an appropriate officer of the Member;

viii. it expressly understands and agrees there are certain interest rate and liquidity risks associated with the use of Advances and Other Credit Products, and there are circumstances in which use of an Advance or Other Credit Product may increase the Member’s risk profile in these areas;

ix. notwithstanding any general information that the Bank may give the Member about any Advance or Other Credit Product, the Member understands that the Bank is not a financial or investment advisor or fiduciary to the Member;

x. the Member is fully capable of evaluating both the merits and risks associated with use of any Advance or Other Credit Product, and, in fact, the Member has independently reviewed these merits and risks and the suitability for the Member’s use of any Advance or Other Credit Product requested by the Member;

xi. the Member has not relied, and will not rely, upon any analysis or advice from the Bank in assessing the merits or risks associated with the use of any Advance or Other Credit Product or the suitability of any Advance or Other Credit Product for the Member’s use (without limiting the foregoing, the Member represents, warrants and covenants that the Member has not relied, and will not rely, upon any understandings with the Bank concerning the circumstances under which the Bank may or may not exercise its rights with respect to any Advance or Other Credit Product, other than those set forth in writing in the documents governing such Advance or Other Credit Product); and

xii. the use by the Member of any Advance or Other Credit Product is not the result of any direct solicitation or recommendation by the Bank, but is the result of the Member’s request arising from the ongoing business relationship between the Member and the Bank.

If, at any time during the term of this Agreement, any of the foregoing representations or warranties cease to be true, the Member shall immediately notify the Bank in writing. The Member shall be deemed to have repeated each of the foregoing representations, warranties and covenants every time any Advance or Other Credit Product is requested by the Member, or funded, committed or otherwise issued or delivered by the Bank hereunder.

d. Repayment. The Member agrees to repay to the Bank, at its office in the City of Boston, Massachusetts (or at such other place as the Bank may from time to time appoint in writing), each Advance and Other Credit Product according to the terms and conditions as indicated on the records of the Bank and communicated to the Member. The Member further agrees to pay interest on the daily unpaid balances of each Advance, and to pay all

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expenses, fees, charges and other amounts payable in connection with each Advance and Other Credit Product according to the terms and conditions as indicated on the records of the Bank and communicated to the Member. All payments with respect to Advances shall be applied first to any fees or charges applicable thereto, then to interest due thereon and then to any principal amount thereof that is then due and payable. The Bank is authorized to charge the Member’s IDEAL Way Account for all principal and interest payments, expenses, fees, charges and other amounts payable in connection with any Advance or Other Credit Product.

i. Prepayment Fees. As more specifically described in the Products and Solutions Guide, certain of the Bank’s Advance products may be voluntarily repaid prior to the scheduled maturity of such Advance or termination by the Bank. If the Member elects to repay an Advance prior to its maturity or termination by the Bank, the Member shall pay a prepayment fee (if any) as set forth in the Confirmation related to such Advance that reflects, among other things, the Bank’s expected loss of income on reinvested funds as well as the cost of terminating any hedge contracts associated with the prepaid amount. Any prepayment fees or charges applicable to any Advance or Other Credit Product that is now or hereafter outstanding shall be payable at the time of any voluntary or involuntary payment of the principal of any such Advance or Other Credit Product prior to the originally scheduled maturity thereof, including, without limitation, any payment that is made as a part of a liquidation of the Member or that becomes due as a result of an acceleration pursuant to the terms hereof, whether such payment is made by the Member, by a conservator, receiver, liquidator or trustee of or for the Member, or by any successor to or assignee of the Member.

ii. Default Rate. Past due amounts owing with respect to any Advance or Other Credit Product, shall bear interest at a rate per annum equal to the greater of: (x) one (1) percentage point higher than the highest rate of interest currently being charged by the Bank on any Advance; and (y) one (1) percentage point higher than the contract rate on the Advance or Other Credit Product, as applicable.

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iii. Cut-off Time. On any Repayment Date on which the Member is obligated to repay to the Bank an amount equal to or greater than $250,000,000 (as determined by the Bank on (A) a Gross Amount Basis or (B) a Net Amount Basis, if the Member and the Bank have agreed to net Advances) under one or more Advances, the Member agrees to make repayment by the Cut-off Time, on such Repayment Date. In the event that the Member fails to repay the Bank by the Cut-off Time on any such Repayment Date, the Bank shall have the right to establish with the Member a new overnight Advance (I) for a principal amount not to exceed the Gross Amount Basis or Net Amount Basis, as the case may be, (II) that matures on the next succeeding Boston Banking Business Day and (III) with an interest rate equal to the Bank’s Cost of Funds plus the Spread. The Bank shall promptly notify the Member on any Repayment Date if the Bank elects to establish a new overnight Advance with such Member pursuant to this Section 2(d)(iii), and reserves the right to reject any payments, whether on a Gross Amount Basis or Net Amount Basis, received after the Cut-off Time.

For purposes of this Section 2(d)(iii), the following definitions shall apply:

“Cost of Funds” means the rate per annum the Bank would be charged if it were to borrow the money in the wholesale market to fund the relevant overnight Advance.

“Cut-off Time” means 2:00 p.m., Boston time.

“Gross Amount Basis” means the total amount due in respect of any Advances (whether individually or in the aggregate) on any Repayment Date.

“Net Amount Basis” means the total amount due in respect of any Advances (whether individually or in the aggregate) on any Repayment Date after netting such amounts against disbursements of new Advances occurring on that same date.

“Repayment Date” means in respect of any Advance (a) the maturity date as specified on the corresponding Confirmation, (b) in the case of a prepayment of an Advance, the prepayment date mutually agreed to by the Member and the Bank, or (c) any date that the Member elects to repay an Advance (if in accordance with the repayment terms of such Advance).

“Spread” means 0.0625%.

e. Purchase of Stock. If the Bank’s capital plan, the Federal Regulations, or the Bank Act require(s) the Member to purchase additional Bank capital stock in connection with any Advance or Other Credit Product requested by the Member, the Bank may debit Member’s IDEAL Way Account, prior to (or after) funding or issuing the applicable Advance or Other Credit Product, for the amount of the capital stock that Member is required to purchase.

f. Authorized Persons. The Member agrees to furnish to the Bank from time to time a certified copy of a resolution of its board of directors or other governing body of equal or

higher authority than a board of directors authorizing one or more individuals as the Member shall select to apply for Advances and Other Credit Products from the Bank on behalf of the Member (each an “Authorized Person”). Unless the Member, acting through an Authorized Person, otherwise notifies the Bank in writing, the Bank may, in its sole discretion and subject to the terms of this Agreement, honor requests for Advances and Other Credit Products made by any Authorized Person.

g. Other Documents. In addition to this Agreement, any Other Credit Product Agreement, and the other agreements, applications and documents specifically referenced herein, the Member shall execute all agreements, applications and other documents reasonably requested by the Bank from time to time as a condition to the Bank making any Advance or Other Credit Product available to the Member.

h. Evidence of Advances and Other Credit Products. The Bank shall maintain, in accordance with its usual practice, electronic or written records evidencing the principal, interest, expenses, fees, charges and other amounts owing to the Bank resulting from the Advances and Other Credit Products made by the Bank to the Member from time to time. Such records shall be prima facie evidence of the existence and amounts of the Indebtedness therein recorded; provided, however, that the failure of the Bank to maintain such records or any error therein shall not in any manner affect the Member’s obligation to repay any and all Indebtedness in accordance with the terms applicable thereto. Upon written notice by the Bank to the Member that a promissory note or other evidence of Indebtedness is requested by the Bank to evidence Indebtedness owing or payable to, or to be made by, the Bank, the Member promptly (and in any event within three (3) Business Days of any such request) shall execute and deliver to the Bank an appropriate promissory note or notes in form and substance satisfactory to the Bank in its sole discretion. In the event of the mutilation, destruction, loss or theft of any promissory note or other evidence of Indebtedness executed by the Member, upon the written request of the Bank to the Member, the Member promptly (and in any event within three (3) Business Days of any such request) shall execute and deliver to the Bank a replacement in the same form and original principal amount and original date as the promissory note or other evidence of Indebtedness so mutilated, destroyed, lost or stolen, and such replaced promissory note or other evidence of Indebtedness shall then be deemed no longer outstanding.

i. Certain Long-Term Advances. Pursuant to regulations applicable to the Bank, Advances with maturities greater than five (5) years are deemed to be long-term Advances and shall only be made for the purpose of providing funds for residential housing finance.

j. LIMITATIONS. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED TO CREATE AN OBLIGATION OF THE BANK TO MAKE ANY ADVANCE OR OTHER CREDIT PRODUCT AVAILABLE TO THE MEMBER. THE MAKING OF ANY ADVANCE OR OTHER CREDIT PRODUCT BY THE BANK SHALL BE IN THE BANK’S SOLE DISCRETION AND SHALL BE SUBJECT TO, AMONG OTHER THINGS, THE BANK HAVING THE APPROPRIATE FUNDING AVAILABLE. MOREOVER, THE BANK RESERVES THE RIGHT TO DELAY OR CANCEL THE FUNDING OF ADVANCES OR OTHER CREDIT PRODUCTS WITHOUT PRIOR NOTICE DUE TO ADVERSE MARKET CONDITIONS OR OTHER FACTORS,

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INCLUDING, WITHOUT LIMITATION, (I) UPON NOTICE FROM THE MEMBER’S PRIMARY REGULATOR OR INSURER THAT THE MEMBER HAS BEEN RESTRICTED FROM OBTAINING ADVANCES OR OTHER CREDIT PRODUCTS FROM A FEDERAL HOME LOAN BANK, OR (II) IF THE MEMBER’S ACCESS TO ADVANCES IS RESTRICTED PURSUANT TO STATUTE OR THE REGULATIONS OF THE BANK’S PRIMARY REGULATOR. THE BANK RESERVES THE RIGHT TO REQUEST UPDATED FINANCIAL INFORMATION FROM THE MEMBER PRIOR TO HONORING ANY REQUEST FOR AN ADVANCE OR OTHER CREDIT PRODUCT.

3. Grant of Lien. As collateral security for any and all Indebtedness, including without limitation, all Advances and Other Credit Products, the Member hereby assigns, transfers and pledges, to the Bank, and grants to the Bank a security interest in, all of the following property that is now or hereafter owned by the Member (collectively, the “Collateral”):

a. all of the Member’s capital stock in the Bank and all payments which have been or hereafter are made on account of subscriptions to and all unpaid dividends on such capital stock;

b. all deposit accounts maintained by the Member at the Bank, all money, cash, checks, drafts, notices, bills, bills of exchange and bonds deposited therein or credit thereto, and increases, renewals, extensions, substitutions and replacements therefore, whether or not deposited in any such deposit account and all statements, certificates, passbooks and instruments representing any such deposit account;

c. all of the Member’s right, title and interest in and to that certain safekeeping account #223447 established by the Member at the Bank of New York Mellon (the “Custodian”) (together with any successor to such account the “Collateral Account”) and all of the assets (including, without limitation, any and all cash, deposits, credit balances, securities, security entitlements and other investment property, mortgage notes and other instruments, and general intangibles) now or hereafter credited to, carried in or otherwise held by the Custodian in the Collateral Account;

d. such other items of property of the Member as are offered by the Member to and accepted by the Bank as Collateral hereunder; and

e. all of the proceeds of any of the foregoing.

4. Covenants.

a. Collateral Maintenance Level. The Member agrees to maintain at all times, free and clear of all other claims, pledges, liens and encumbrances, Eligible Collateral that has an aggregate value, as determined by the Bank in such a manner as is specified in the Products and Solutions Guide or as may be otherwise specified in writing by the Bank to the Member from time to time, at least equal to the Collateral Maintenance Level. Except as otherwise provided in this paragraph, the Member shall hold all Collateral in trust for the benefit of, and subject to the direction and control of the Bank. Immediately upon written or oral request by the Bank or upon the occurrence of an event requiring the segregation or delivery of Collateral as established by the Bank in writing, the Member shall at its own expense, physically segregate and list and permit the Bank to participate in such segregation and listing

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or, if so requested or required, deliver (or in the cases of uncertificated securities and securities entitlements, otherwise transfer in such manner as shall be acceptable to the Bank) to and maintain with the Bank or its authorized agents or nominees unencumbered Eligible Collateral that has an aggregate value, determined as set forth above, at least equal to the Collateral Maintenance Level. As long as there has been no Event of Default hereunder, the Member may use, encumber or dispose of any portion of the Collateral that is in excess of the Collateral Maintenance Level and that has not been segregated and listed, delivered or otherwise transferred to the Bank or its authorized agent or nominee in accordance with the preceding sentence; provided, however that the Member will provide the Bank, whenever requested, with certifications and verifications of the amount, market value, status and nature of the Collateral as the Bank may direct and will permit an audit of the Collateral by the Bank at any time.

b. Safeguarding and Servicing of Collateral. The Member agrees to safeguard, physically and otherwise, all Collateral with at least the same degree of care as the Member uses in safeguarding its other similar property. Without limiting the generality of the foregoing, the Member shall take all action the Bank may deem necessary or desirable to protect and preserve the Collateral and the Bank’s interest therein, including, without limitation, maintaining insurance on property securing loans constituting Collateral, collecting payments under all loans constituting Collateral and under all insurance on property securing loans constituting Collateral, and otherwise assuring that all loans pledged as Collateral are serviced in accordance with the standards of a reasonable and prudent servicer. The Member shall collect all payments when due on all Collateral. If the Bank requires, the Member shall hold such collections separate from the Member’s other monies.

c. Maintenance of Records.

i. The Member agrees to keep and maintain, at its own cost and expense, accurate and complete records of the Collateral, including a record of any and all payments received and any and all credits granted with respect to the Collateral and all other dealings with respect to the Collateral.

ii. The Member further agrees to maintain this Agreement continuously from the time of its execution as an official record of the Member.

d. Compliance with Terms and Applicable Law. The Member agrees to perform and comply in all material respects with all obligations in respect of the Collateral and all other agreements to which it is a party or by which it is bound relating to the Collateral. The Member further agrees to comply with all applicable local, state and Federal laws with respect to the Collateral, including, but not limited to, all applicable anti-predatory lending laws and other similar credit-related consumer protection laws, regulations and orders designed to prevent or regulate abusive and deceptive lending practices and loan terms.

e. Further Assurances. At any time and from time to time, upon the written request of the Bank and at the sole expense of the Member, the Member shall promptly and duly execute and deliver any and all such further instruments and documents and take such further actions as the Bank may deem necessary or desirable to obtain the full benefits of this Agreement and of the rights and powers herein granted. The Member hereby irrevocably authorizes the Bank at any time and from time to time to file in any filing office in any jurisdiction any initial

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financing statements and amendments thereto that (a) describes the collateral as the assets of the Member that constitute “Collateral” pursuant to Section 3 of this Agreement, or with greater detail, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the UCC of such jurisdiction, and (b) contain any other information required by part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement or amendment, including whether the Member is an organization, the type of organization and any organization identification number issued to the Member. The Member agrees to furnish any such information to the Bank promptly upon the Bank’s request. Without limiting the foregoing, the Member agrees to provide the Bank at least thirty (30) days’ prior written notice of any change in the state of location of the Member or any change in the Member’s corporate name.

f. Amendments Not Authorized. The Member acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect to any financing statement filed in favor of the Bank without the prior written consent of the Bank and agrees that it will not do so without the prior written consent of the Bank, subject to the Member’s rights under Section 9-509(d)(2) of the UCC.

g. Material Adverse Event Reporting. The Member shall immediately notify the Bank upon the occurrence or discovery of any Material Adverse Event. The Member agrees to make such immediate notification by first calling the Bank’s Credit Department (at the number set forth in the Products and Solutions Guide), and then following up such call by delivering a written notice to the Bank detailing the facts and circumstances surrounding the Material Adverse Event(s). For purposes of this Section 4(g), a “Material Adverse Event” constitutes one or more of the following: (i) the occurrence of any event or series of events with the cumulative effect of adversely impacting the business, operations, properties, assets, or condition (financial or otherwise) of the Member or any of its Affiliates or its parent in any material respect; (ii) the impairment of the Member’s ability to perform its obligations under this Agreement or any other agreement with the Bank, including, without limitation, the impairment of the Member’s ability to repay any Indebtedness; and (iii) the impairment of the Bank’s ability to enforce its rights under this Agreement or any other agreement with the Member.

h. Products and Solutions Guide. The Member will abide by all other terms and conditions as set forth in the Products and Solutions Guide.

5. Representations and Warranties. The Member represents and warrants to the Bank that:

a. the Member has rights in and the power to transfer each item of the Collateral upon which it purports to grant a lien hereunder;

b. this Agreement is effective to create a valid and continuing lien on the Collateral;

c. the execution, delivery and performance by it of this Agreement are within its powers, have been duly authorized, and do not contravene (i) its charter, articles of incorporation, certificate of formation, shareholders agreement, operating agreement, limited liability company agreement or other organizational documents, or (ii) any applicable law, statute, regulation, ordinance, tariff or order;

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d. no consent, license, permit, approval or authorization of, or registration, filing or declaration with, any governmental authority or other person or entity is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement by or against it;

e. this Agreement constitutes its legal, valid and binding obligation enforceable against it in accordance with its terms; and

f. no part of any real property securing loans constituting Collateral contains or is subject to the effects of toxins, pollutants, contaminants or hazardous materials or other hazardous substances (including, without limitation, those defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9601 et seq., and any other Federal, state or local environmental, health or safety laws; and in the regulations adopted and publications promulgated pursuant to the aforesaid laws) the presence or effect of which could subject the Bank to any liability under applicable state or Federal law or local ordinance either at any time that the loans secured by such real property are pledged to the Bank as Collateral or upon the enforcement by the Bank of its security interest therein.

If, at any time during the term of this Agreement, any of the foregoing representations or warranties cease to be true, the Member shall immediately notify the Bank in writing. The Member shall be deemed to have repeated each of the foregoing representations and warranties every time any Advance or Other Credit Product is requested by the Member, or funded, committed or otherwise issued or delivered by the Bank hereunder.

6. Bank’s Rights as to Collateral; Power of Attorney. At any time or times, at the expense of the Member, the Bank may, in its discretion, before or after the occurrence of an Event of Default, in its own name or in the name of its nominee or of the Member, do any or all things and take any and all actions that the Bank may deem necessary or desirable to protect the Bank's interests hereunder and are lawful under the laws of the Commonwealth of Massachusetts, or the laws of any jurisdiction under which the Bank may be exercising its rights hereunder, including, without limitation, any or all of the following:

a. Terminate any consent given hereunder;

b. Notify obligors on any Collateral to make payments thereon directly to the Bank;

c. Endorse any Collateral in the Member's name;

d. Enter into any extension, compromise, settlement, or other agreement relating to or affecting any Collateral;

e. Take any action the Member is required to take or which is otherwise necessary to: (i) sign and record a financing statement or otherwise perfect a security interest in any or all of the Collateral; or (ii) obtain, preserve, protect, enforce or collect the Collateral;

f. Take control of any funds or other proceeds generated by the Collateral and use the same to reduce any amounts owing by Member to the Bank as they become due; and

g. Cause the Collateral to be transferred to its name or the name of its nominee.

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The Member hereby appoints the Bank as its true and lawful attorney, with full power of substitution, for and on behalf of the Member and in its name, place and stead, to prepare, execute and record endorsements and assignments to the Bank of all or any item of Collateral, giving or granting to the Bank, as such attorney, full power and authority to do or perform every lawful act necessary or proper in connection therewith as fully as the Member might or could do. The Member hereby ratifies and confirms all that the Bank shall lawfully do or cause to be done by virtue of this special power of attorney. This special power of attorney is granted for a period commencing on the date hereof and continuing until the discharge of all Indebtedness and all obligations of the Member hereunder regardless of any default by the Member, is coupled with an interest and is irrevocable for the period granted.

7. Default; Remedies.

a. Events of Default. The occurrence of any of the following events or conditions shall constitute an “Event of Default”:

i. The failure of the Member to: (A) pay when due any amount payable in connection with any Advance or Other Credit Product; (B) pledge or maintain adequate Eligible Collateral in accordance with Section 4(a) hereof; or (C) perform any of its other obligations set forth in this Agreement or in any other agreements or documents governing an Advance or Other Credit Product;

ii. Any representation, statement, warranty or certification made or furnished in any manner to the Bank by or on behalf of the Member in connection with any Advance or Other Credit Product or the pledge of any Collateral shall have been false or misleading in any material respect when made or furnished;

iii. The issuance of any tax, levy, seizure, attachment, garnishment, levy of execution, or other process with respect to the Collateral;

iv. Any failure to pay or suspension of payment by the Member to any creditor of sums due or the occurrence of any event which results in another creditor having the right to accelerate the maturity of any indebtedness of the Member under any security agreement, indenture, loan agreement, or comparable undertaking;

v. The application for or appointment of a conservator or receiver for the Member or of any subsidiary of the Member or the Member's property, entry of a judgment or decree adjudicating the Member or any subsidiary of the Member insolvent or bankrupt or an assignment by the Member or any subsidiary of the Member for the benefit of creditors;

vi. The sale by the Member of all or a material part of the Member's assets or the taking of any other action by or against the Member to liquidate or dissolve;

vii. The merger, consolidation or other combination of the Member with an entity which is not a member of the Bank if the nonmember entity is the surviving entity;

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viii. The termination of the membership of the Member in the Bank or the Member’s ceasing to be the type of financial institution that is eligible to become a member of the Bank under the Bank Act or Federal Regulations; or

ix. If the Bank reasonably and in good faith deems itself insecure.

b. Remedies.

i. Upon the occurrence of any Event of Default, the Bank may, at its option, by notice to the Member, declare all Indebtedness and accrued interest thereon, including, without limitation, any prepayment fees or charges which are payable in connection with the payment prior to the originally scheduled maturity date of any Indebtedness, to be immediately due and payable without presentment, demand, protest or any further notice. Furthermore, in addition to the rights of the Bank set forth in Section 6 hereof (which the Bank may exercise before or after the occurrence of an Event of Default), upon the occurrence of any Event of Default, the Bank shall have all the rights and remedies provided by applicable law, including, without limitation, all of the remedies of a secured party under the Uniform Commercial Code as in effect in the Commonwealth of Massachusetts (the “UCC”). In addition, the Bank may take immediate possession of any of the Collateral or any part thereof wherever the same may be found without judicial process or by action. The Bank may require the Member to assemble the Collateral and make it available to the Bank at a place designated by the Bank which is reasonably convenient to both parties. The Bank may sell, assign and deliver the Collateral or any part thereof at public or private sale for such price as the Bank deems appropriate without any liability for any loss due to decrease in the market value of the Collateral during the period held. The Bank shall have the right to purchase all or part of the Collateral at such sale. If the Collateral includes insurance or securities which will be redeemed by the issuer upon surrender, or any accounts or deposits in the possession of the Bank, the Bank may realize upon such Collateral without notice to the Member. If any notification of intended disposition of any of the Collateral is required by applicable law, such notification shall be deemed reasonable and properly given if mailed, postage prepaid, at least five (5) days before any such disposition to the address of the Member appearing on the records of the Bank. The proceeds of any sale shall be applied in the order that the Bank, in its sole discretion, may choose. The Member shall be liable to the Bank for any deficiency remaining. The Member agrees to pay all the costs and expenses of the Bank in the collection of any amounts owing by the Member and the enforcement of the Bank's rights and remedies in case of default, including, without limitation, reasonable attorneys' fees. Until paid, the costs and expenses referred to in the foregoing sentence shall be a debt secured by the Collateral and shall bear, whether before or after judgment, interest at the rate of interest for past due amounts owing with respect to any Advance or Other Credit Product set forth in Section 2(d)(ii) hereof.

ii. If the Indebtedness, accrued interest thereon and other amounts or charges owing by the Member to the Bank shall have become due and payable by acceleration or otherwise, the Bank shall have the right, at any time or from time to time to the fullest extent permitted by law, in addition to all other rights and remedies available to it, without prior notice to the Member, to set off against and to appropriate and apply to such due and payable amounts any debt owing to, and any other funds held in any manner for the

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account of, the Member by the Bank, including without limitation all deposits, credits and monies now or hereafter maintained by the Member with the Bank. Such right shall exist whether or not such debt owing to or funds held for the account of the Member is matured or unmatured, and regardless of the existence or adequacy of any Collateral, guaranty or any other security, right or remedy available to the Bank. The Member hereby consents to and confirms the foregoing arrangements and confirms the Bank's rights of banker’s lien and set off. Nothing in this Agreement shall be deemed a waiver or prohibition of or restriction on the Bank’s rights of banker’s lien or set off.

iii. The Member acknowledges that the breach by the Member of the provisions of this Agreement would cause irreparable injury to the Bank and that remedies at law for any such breach will be inadequate, and consents and agrees that the Bank shall be entitled, without the necessity of proof of actual damage, to specific performance of the terms of this Agreement and to injunctive relief in any proceedings which may be brought to enforce the provisions of this Agreement. The Member waives the right to assert the defense that such breach or violation can be compensated adequately in damages in an action of law.

8. Limitation on the Bank’s Duty in Respect of Collateral. The Bank shall use reasonable care with respect to the Collateral, if any, in its possession or under its control. The Bank shall not have any other duty as to (a) any Collateral in its possession or control or in the possession or control of any agent or nominee of the Bank (or any income thereon), (b) the preservation of rights against prior parties or (c) any other rights pertaining thereto. The Bank shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which it accords its own property. The Bank shall not be liable or responsible for any loss or damage to any of the Collateral, or for any diminution in the value thereof, by reason of the act or omission of any custodian, warehousemen, carrier, forwarding agency, consignee or other agent or bailee selected by the Bank in good faith. The Member agrees to pay to the Bank such reasonable fees and charges as may be assessed by the Bank to cover the Bank’s overhead and other costs relating to the receipt, holding, redelivery and reassignment of Collateral and to reimburse the Bank upon request for all recording fees and other reasonable expenses, disbursements and advances incurred or made by the Bank in connection therewith, including, without limitation, the reasonable compensation and the expenses and disbursements of any agent or nominee of the Bank, and the agents and legal counsel of the Bank and any such agent or nominee. Until paid, the financial obligations of the Member referred to in the foregoing sentence shall be Indebtedness secured by the Collateral.

9. Reinstatement. This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against the Member for liquidation or reorganization, should the Member become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver, conservator or trustee be appointed for all or any significant part of any the Member’s assets, and shall continue to be effective or be reinstated, as the case may be, if any payment or performance by Member of the Indebtedness or obligations hereunder, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by the Bank (whether as a “voidable preference,” “fraudulent conveyance,” or otherwise), as though such payment or performance had not been made. In the event that any payment or performance by Member of the Indebtedness or obligations hereunder, or any part thereof, is so rescinded, reduced, restored or returned, then the Indebtedness and obligations

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hereunder shall be reinstated, and shall be deemed reduced only by the amount, if any, that was paid or performed by Member and is not so rescinded, reduced, restored or returned.

10. Indemnification. The Member shall indemnify and hold harmless the Bank and its directors, officers, employees and agents (collectively, the “Indemnified Parties”) from, and defend the Indemnified Parties against, any and all losses, damages, liabilities, judgments, penalties, fines, costs and expenses (including, without limitation, reasonable attorneys’ fees) that result from or arise in connection with any claim or demand brought by a third party (unaffiliated with the Bank or the Member) against an Indemnified Party relating to: (a) the Member’s use of Advances or Other Credit Products (except to the extent that such losses, damages, liabilities, judgments, penalties, fines, costs or expenses are finally adjudged to have resulted from the Bank’s gross negligence or willful misconduct); (b) the presence or effects of any toxic, contaminating, polluting or hazardous substances or materials in, on, or under any real property securing loans constituting Collateral; (c) any Collateral not complying in all material respects with (i) applicable local, state, and Federal laws, including, but not limited to, all applicable anti-predatory lending laws and other similar credit-related consumer protection laws, regulations and orders designed to prevent or regulate abusive and deceptive lending practices and loan terms, or (ii) the Bank’s anti-predatory lending policy; and (d) the Member’s pledge of assets to the Bank that are unacceptable as collateral in accordance with the Products and Solutions Guide. If any third party makes a claim or demand covered by this Section 10 against an Indemnified Party with respect to which the Indemnified Party intends to seek indemnification under this Section, the Indemnified Party shall give notice of such claim or demand to the Member, including a brief description of the amount and basis therefor, if known (but the failure to give such notice shall not relieve the Member from its obligations under this section except to the extent that it is prejudiced thereby). The Indemnified Party shall permit the Member (at the Member’s expense) to assume the defense of any claim or demand, or any litigation resulting therefrom, with counsel reasonably acceptable to the Indemnified Party. In the defense of any such claim, the Member shall not, except with the prior written consent of the Indemnified Party, consent to entry of any judgment or enter into any settlement that provides for injunctive or other nonmonetary relief affecting the Indemnified Party, or that does not include as an unconditional term thereof the giving by each claimant or plaintiff to such Indemnified Party of a release from all liability with respect to such claim. In the event that the Member does not accept the defense of any matter as above provided, the Indemnified Party shall have the full right to defend against any such claim or demand, and with the written consent of the Indemnifying Party (which consent may not be unreasonably withheld) shall be entitled to settle or agree to pay in full such claim or demand. In any event, the Member and the Indemnified Parties shall cooperate in the defense of any claim or litigation subject to this Section 10 and the records of each shall be available to the others with respect to such defense.

11. Notices. Except as otherwise provided herein, whenever it is provided herein that any notice, demand, request, consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by any other party, or whenever any of the parties desires to give and serve upon any other party any communication with respect to this Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing and shall be deemed to have been validly served, given or delivered (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the United States mail, registered or certified mail, return receipt requested, with proper postage prepaid, (b) upon transmission, when sent by telecopy or other similar facsimile transmission, (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid, or (d) when delivered, if hand-

16

v.1-13

delivered by messenger, all of which shall be addressed to the party to be notified and sent, in the case of the Bank, to the address or facsimile number set forth below or to such other address (or facsimile number) as may be substituted by notice given as herein provided, and, in the case of the Member, to the address or facsimile number indicated on the signature page hereto; provided, however, that in the event the Member fails to include an address on the signature page hereto, the Bank’s shall be authorized to address any such communication to the Member at the address or facsimile number for the Member indicated on the records of the Bank, Attn: President. The giving of any notice required hereunder may be waived in writing by the party entitled to receive such notice.

If to the Bank:

Federal Home Loan Bank of Boston

800 Boylston Street, 9th Floor

Boston, Massachusetts 02199

Attention: Credit Department

Telephone: (617) 292-9729

    Facsimile: (617) 375-2240

With a copy to:

Federal Home Loan Bank of Boston

800 Boylston Street, 9th Floor

Boston, Massachusetts 02199

Attention: General Counsel

    Telephone: (617) 292-9600

    Facsimile: (617) 375-2243

12. Successors and Assigns. The Bank may assign or transfer its rights under and interests in this Agreement, including its rights and interests with respect to any Advances, any Other Credit Products and any Collateral, to any party to the extent permitted by Federal Regulations and the Bank Act. The Member may not assign or transfer any of its rights or obligations hereunder without the express written consent of the Bank. This Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the Member and the Bank.

13. Counterparts. This Agreement, and any amendments, waivers, consents or supplements related hereto, may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts taken together shall constitute but one and the same instrument. Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are attached to the same document. Delivery of a signature page to, or an executed counterpart of, this Agreement (or any amendment, waiver, consent or supplement related hereto) by facsimile, email transmission of a scanned image, or other electronic means, shall be effective as delivery of an originally executed counterpart.This Agreement shall become effective upon the execution of a counterpart hereof by each of the parties hereto.

14. Applicable Law; Consent to Jurisdiction. This Agreement and all Advances and Other Credit Products hereunder shall be governed by the statutory and common law of the United States and, to the extent Federal law incorporates or defers to state law, the laws (exclusive of the choice of

17

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law provisions) of the Commonwealth of Massachusetts. Notwithstanding the foregoing, the Uniform Commercial Code as in effect in the Commonwealth of Massachusetts shall be deemed applicable to this Agreement and to any Advance or Other Credit Product hereunder and shall govern the attachment and perfection of any security interest granted hereunder. The Member agrees that any action or claim arising out of any dispute in connection with this Agreement, any rights or obligations hereunder or the performance or enforcement of such rights or obligations may be brought in courts of the Commonwealth of Massachusetts located in Suffolk County, or any federal court sitting therein and consents to the non-exclusive jurisdiction of such court and to service of process in any such suit being made upon the Member by mail at the address specified in Section 11 hereof. The Member hereby waives any objection that it may now or hereafter have to the venue of any such suit or any such court or that such suit is brought in an inconvenient court.

15. Waiver of Jury Trial. THE MEMBER WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE PERFORMANCE OR ENFORCEMENT OF ANY SUCH RIGHTS OR OBLIGATIONS. Except as prohibited by law, the Member waives any right which it may have to claim or recover in any litigation referred to in the preceding sentence any special, exemplary, punitive or consequential damages or any damages other than, or in addition to, actual damages. The Member (i) certifies that none of the Indemnified Parties has represented, expressly or otherwise, that the Bank would not, in the event of litigation, seek to enforce the foregoing waivers or other waivers contained in this Agreement and (ii) acknowledges that, in making Advances and Other Credit Products available to the Member, the Bank is relying upon, among other things, the waivers and certifications contained in this Section 15.

16. Marshaling. The Bank shall not be required to marshal any present or future collateral security (including but not limited to the Collateral) for, or other assurances of payment of, the Indebtedness or to resort to such collateral security or other assurances of payment in any particular order, and all of its rights and remedies hereunder and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and remedies, however existing or arising. To the extent that it lawfully may, the Member hereby agrees that it will not invoke any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of the Bank’s rights and remedies under this Agreement or under any other instrument creating or evidencing any of the Indebtedness or under which any of the Indebtedness is outstanding or by which any of the Indebtedness is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, the Member hereby irrevocably waives the benefits of all such laws.

17. No Waiver by Bank. The Bank shall not be deemed to have waived any of its rights and remedies in respect of the Indebtedness or the Collateral unless such waiver shall be in writing and signed by an authorized officer of the Bank. No delay or omission on the part of the Bank in exercising any right or remedy shall operate as a waiver of such right or remedy or any other right or remedy. A waiver on any one occasion shall not be construed as a bar to or waiver of any right or remedy on any future occasion. All rights and remedies of the Bank with respect to the Indebtedness or the Collateral, whether evidenced hereby or by any other instrument or papers, shall be cumulative and may be exercised singularly, alternatively, successively or concurrently at such time or at such times as the Bank deems expedient.

18

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18. Severability. In the event that any portion of this Agreement conflicts with applicable law, such conflict shall not affect other provisions of this Agreement which can be given effect without the conflicting provision, and to this end the provisions of this Agreement are declared to be severable.

19. Headings. Section headings are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purposes or be given substantive effect.

20. Termination. This Agreement shall apply to existing and future Advances and Other Credit Products and shall remain in full force and effect until terminated by written notice by the Member or by the Bank, provided that any such termination shall not terminate or impair the terms of this Agreement as to all Advances and Other Credit Products outstanding hereunder at the time of such termination or to the pledge of Collateral hereunder.

21. Amendment and Restatement; Amendment of Related Agreements. This Agreement amends, restates, replaces and supersedes in their entirety any Agreement for Advances, Collateral Pledge and Security Agreement and any Short-Term Advance Master Application previously executed by the Member for the benefit of the Bank (collectively, the “Superseded Agreements”). The Bank and the Member (a) hereby agree that all references to the Superseded Agreements that are included in any other agreement, application, confirmation, notice, advice or other document executed or delivered by the Member and/or the Bank in connection with any Advance, Other Credit Product or other product or service provided by the Bank to the Member (including, without limitation, in any funding agreement, Other Credit Product Agreement or Correspondent Services Agreement) shall be deemed to be references to this Agreement, as amended from time to time, and (b) hereby amend all such agreements, applications, confirmations, notices, advice and other documents to the extent necessary or appropriate to reflect such changed references. All Advances, Other Credit Products and any other products or services made or provided by the Bank to the Member prior to the execution of this Agreement shall be governed by the terms of this Agreement in lieu of the terms of the Superseded Agreements.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

19

v.1-13

IN WITNESS WHEREOF, the Member, by authority of its Board of Directors or governing body, has caused this Agreement to be executed by its duly authorized officers under seal on this 8 day of February, 2018.

Voya Retirement Insurance and Annuity Company                                  (Member Institution)

By: /s/ Debra Bell                

(Signature)        

Name: Debra Bell                

(Print Name)

Title: Vice President and Assistant Treasurer    

Address for notices under Section 11:

Address 1: 5780 Powers Ferry Road        

            Address 2:

            City, State, Zip: Atlanta GA 30327        

            Attention: Mark Boland        

Telephone: 770-850-7745        

            Facsimile:

Acknowledged and Agreed to as of this

8 day of February, 2018:

FEDERAL HOME LOAN BANK OF BOSTON

By: /s/ Rachele R. McDonough            

Name: Rachele R. McDonough            

Title: VP, Director of Bank Operations        

20

v.1-13

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Francis G. O'Neill, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Voya Retirement Insurance and Annuity Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:		May 10, 2018
By:	/s/	Francis G. O'Neill
		Francis G. O'Neill
		Senior Vice President and Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Charles P. Nelson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Voya Retirement Insurance and Annuity Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:		May 10, 2018
By:	/s/	Charles P. Nelson
		Charles P. Nelson
		President
		(Duly Authorized Officer and Principal Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION

Pursuant to 18 U.S.C. §1350, the undersigned officer of Voya Retirement Insurance and Annuity Company (the “Company”) hereby certifies that, to the officer's knowledge, the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 (the “Report”) fully complies with the requirements of Section 13 or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 10, 2018	By:	/s/	Francis G. O'Neill
(Date)			Francis G. O'Neill Senior Vice President and Chief Financial Officer

EX-32.2

Exhibit 32.2

CERTIFICATION

Pursuant to 18 U.S.C. §1350, the undersigned officer of Voya Retirement Insurance and Annuity Company (the “Company”) hereby certifies that, to the officer's knowledge, the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 (the “Report”) fully complies with the requirements of Section 13 or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 10, 2018	By:	/s/	Charles P. Nelson
(Date)			Charles P. Nelson President

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 09, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	VOYA RETIREMENT INSURANCE & ANNUITY CO
Entity Central Index Key	0000837010
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		55,000

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost of $22,173 as of 2018 and $21,774 as of 2017)	$ 22,912	$ 23,141
Fixed maturities, at fair value using the fair value option	933	941
Equity securities, at fair value (cost of $45 as of 2018 and 2017)	58	60
Short-term investments	75	25
Mortgage loans on real estate, net of valuation allowance of $1 as of 2018 and 2017	4,891	4,910
Policy loans	212	214
Limited partnerships/corporations	425	411
Derivatives	148	136
Securities pledged (amortized cost of $776 as of 2018 and $864 as of 2017)	833	960
Other investments	22	0
Total investments	30,509	30,798
Cash and cash equivalents	344	288
Short-term investments under securities loan agreements, including collateral delivered	591	765
Accrued investment income	318	304
Premiums receivable and reinsurance recoverable	1,484	1,496
Deferred policy acquisition costs, Value of business acquired and Sales inducements to contract owners	911	766
Notes receivable from affiliate	175	175
Short-term loan affiliate	0	80
Due from affiliates	48	60
Property and equipment	64	64
Other assets	173	140
Assets held in separate accounts	73,489	73,036
Total assets	108,106	107,972
Liabilities and Shareholder's Equity
Future policy benefits and contract owner account balances	29,789	29,669
Payable for securities purchased	195	79
Payables under securities loan agreements, including collateral held	694	845
Long-term debt	4	5
Due to affiliates	66	61
Derivatives	102	85
Current income tax payable to Parent	6	23
Deferred income taxes	117	187
Other liabilities	272	401
Liabilities related to separate accounts	73,489	73,036
Total liabilities	104,734	104,391
Commitments and Contingencies (Note 9)
Shareholder's equity:
Common stock (100,000 shares authorized, 55,000 issued and outstanding as of 2018 and 2017; $50 par value per share)	3	3
Additional paid-in capital	2,730	2,730
Accumulated other comprehensive income (loss)	438	818
Retained earnings (deficit)	201	30
Total shareholder's equity	3,372	3,581
Total liabilities and shareholder's equity	$ 108,106	$ 107,972

XML

Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Fixed maturities, amortized cost	$ 22,173	$ 21,774
Equity securities, cost	45	45
Mortgage loans on real estate valuation allowance	1	1
Securities pledged, amortized costs	$ 776	$ 864
Common stock, par value (USD per share)	$ 50	$ 50
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	55,000	55,000
Common stock, shares outstanding	55,000	55,000

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenues:
Net investment income	$ 382	$ 379
Fee income	174	190
Premiums	14	15
Broker-dealer commission revenue	41	44
Net realized capital gains (losses):
Total other-than-temporary impairments	(9)	0
Less: Portion of other-than-temporary impairments recognized in Other comprehensive income (loss)	0	0
Net other-than-temporary impairments recognized in earnings	(9)	0
Other net realized capital gains (losses)	(78)	(55)
Total net realized capital gains (losses)	(87)	(55)
Total revenues	524	573
Benefits and expenses:
Interest credited and other benefits to contract owners/policyholders	198	235
Operating expenses	108	220
Broker-dealer commission expense	41	44
Net amortization of Deferred policy acquisition costs and Value of business acquired	65	2
Total benefits and expenses	412	501
Income (loss) before income taxes	112	72
Income tax expense (benefit)	25	18
Net income (loss)	$ 87	$ 54

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 87	$ 54
Other comprehensive income (loss), before tax:
Unrealized gains/losses on securities	(482)	79
Other-than-temporary impairments	7	2
Pension and other postretirement benefits liability	(1)	0
Other comprehensive income (loss), before tax	(476)	81
Income tax expense (benefit) related to items of other comprehensive income (loss)	(108)	28
Other comprehensive income (loss), after tax	(368)	53
Comprehensive income (loss)	$ (281)	$ 107

XML

Condensed Consolidated Statements of Changes in Shareholder's Equity - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings (Deficit)
Beginning Balance at Dec. 31, 2016	$ 3,377	$ 3	$ 2,994	$ 560	$ (180)
Comprehensive income (loss):
Net income (loss)	54	0	0	0	54
Other comprehensive income (loss), after tax	53	0	0	53	0
Comprehensive income (loss)	107
Ending Balance at Mar. 31, 2017	3,484	3	2,994	613	(126)
Increase (Decrease) in Stockholders' Equity
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2014-09 [Member]	72	0	0	0	72
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2016-01	0	0	0	(12)	12
Beginning Balance (Scenario, Previously Reported [Member]) at Dec. 31, 2017	3,581	3	2,730	818	30
Beginning Balance at Dec. 31, 2017	3,581
Balance as adjusted at Dec. 31, 2017	3,653	3	2,730	806	114
Comprehensive income (loss):
Net income (loss)	87	0	0	0	87
Other comprehensive income (loss), after tax	(368)	0	0	(368)	0
Comprehensive income (loss)	(281)
Ending Balance at Mar. 31, 2018	$ 3,372	$ 3	$ 2,730	$ 438	$ 201

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net cash provided by operating activities	$ 320	$ 133
Proceeds from the sale, maturity, disposal or redemption of:
Fixed maturities	903	1,446
Equity securities	0	0
Mortgage loans on real estate	167	145
Limited partnerships/corporations	11	22
Acquisition of:
Fixed maturities	(1,217)	(891)
Equity securities	0	(2)
Mortgage loans on real estate	(148)	(636)
Limited partnerships/corporations	(17)	(30)
Derivatives, net	(15)	168
Policy loans, net	2	5
Short-term investments, net	(50)	29
Short-term loan to affiliate, net	80	(100)
Collateral received (delivered), net	23	(152)
Other investments, net	(22)	0
Net cash (used) provided by in investing activities	(283)	4
Cash Flows from Financing Activities:
Deposits received for investment contracts	816	680
Maturities and withdrawals from investment contracts	(782)	(792)
Settlements on deposit contracts	(15)	(17)
Net cash provided by (used in) financing activities	19	(129)
Net increase in cash and cash equivalents	56	8
Cash and cash equivalents, beginning of period	288	561
Cash and cash equivalents, end of period	$ 344	$ 569

XML

Business, Basis of Presentation and Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Business, Basis of Presentation and Significant Accounting Policies

Business, Basis of Presentation and Significant Accounting Policies

Business

Voya Retirement Insurance and Annuity Company ("VRIAC") is a stock life insurance company domiciled in the State of Connecticut. VRIAC and its wholly owned subsidiaries (collectively, the "Company") provide financial products and services in the United States. VRIAC is authorized to conduct its insurance business in all states and in the District of Columbia and in Guam, Puerto Rico and the Virgin Islands.

Prior to May 2013, Voya Financial, Inc. ("Voya Financial"), together with its subsidiaries, including the Company was an indirect, wholly-owned subsidiary of ING Groep N.V. ("ING Group" or "ING"), a global financial services holding company based in The Netherlands. In May 2013, Voya Financial, Inc., completed its initial public offering of common stock, including the issuance and sale of common stock by Voya Financial, Inc. and the sale of shares of common stock owned indirectly by ING Group. Between October 2013 and March 2015, ING Group completed the sale of its remaining shares of common stock of Voya Financial, Inc. in a series of registered public offerings.

VRIAC is a direct, wholly owned subsidiary of Voya Holdings Inc. ("Parent"), which is a direct, wholly owned subsidiary of Voya Financial, Inc.

VRIAC has two wholly owned non-insurance subsidiaries, Voya Financial Partners, LLC ("VFP") and Directed Services LLC ("DSL").

On December 20, 2017, VRIAC's ultimate parent, Voya Financial, entered into a Master Transaction Agreement ("MTA") with VA Capital Company LLC ("VA Capital"), and Athene Holding Ltd ("Athene"), pursuant to which VA Capital's wholly owned subsidiary Venerable Holdings Inc. ("Venerable") will acquire certain of Voya Financial's assets, including all of the shares of capital stock of Voya Insurance and Annuity Company ("VIAC"), the Company's Iowa-domiciled insurance affiliate, as well as the membership interests of DSL, the Company's broker-dealer subsidiary (collectively the "Transaction"). The Transaction is expected to close in the second or third quarter of 2018, subject to conditions specified in the MTA, including receipt of required regulatory approvals and other conditions.

The Company offers qualified and nonqualified annuity contracts that include a variety of funding and payout options for individuals and employer-sponsored retirement plans qualified under Internal Revenue Code Sections 401, 403, 408, 457 and 501, as well as nonqualified deferred compensation plans and related services. The Company's products are offered primarily to employer-sponsored groups in the health care, government and education markets (collectively "tax exempt markets"), small to mid-sized corporations and individuals. The Company also provides stable value investment options, including separate account guaranteed investment contracts (e.g., GICs) and synthetic GICs, to institutional clients. Pension risk transfer group annuity solutions were previously offered to institutional plan sponsors who needed to transfer their defined benefit plan obligations to the Company. The Company discontinued sales of these solutions in late 2016 to better align business activities to the Company's priorities. The Company's products are generally distributed through pension professionals, independent agents and brokers, third-party administrators, banks, consultants, dedicated financial guidance, planning and advisory representatives associated with Voya Financial, Inc.'s retail broker-dealer, Voya Financial Advisors, Inc. ("Voya Financial Advisors").

Products offered by the Company include deferred and immediate (i.e., payout) annuity contracts. Company products also include programs offered to qualified plans and nonqualified deferred compensation plans that package administrative and record-keeping services, participant education, and retirement readiness planning tools along with a variety of investment options, including proprietary and non-proprietary mutual funds and variable and fixed investment options. In addition, the Company offers wrapper agreements entered into with retirement plans, which contain certain benefit responsive guarantees (i.e., guarantees of principal and previously accrued interest for benefits paid under the terms of the plan) with respect to portfolios of plan-owned assets not invested with the Company. Stable value products are also provided to institutional plan sponsors where the Company may or may not be providing other employer sponsored products and services.

The Company has one operating segment.

Basis of Presentation

The accompanying Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and are unaudited. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates.

The Condensed Consolidated Financial Statements include the accounts of VRIAC and its wholly owned subsidiaries, Voya Financial Partners, LLC ("VFP") and Directed Services LLC ("DSL"). Intercompany transactions and balances have been eliminated.

The accompanying Condensed Consolidated Financial Statements reflect adjustments (including normal, recurring adjustments) necessary to present fairly the financial position of the Company as of March 31, 2018, its results of operations, comprehensive income, changes in shareholder's equity and statements of cash flows for the three months ended March 31, 2018 and 2017, in conformity with U.S. GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2017 Consolidated Balance Sheet is from the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K, filed with the SEC. Therefore, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K.

Significant Accounting Policies

Investments

Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2016-01 "Financial Instruments-Overall (ASC Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01") (See the Adoption of New Pronouncements section below). As a result, the Company measures its equity securities at fair value and recognizes any changes in fair value in net income. Prior to adoption, equity securities were designated as available-for-sale and reported at fair value with unrealized capital gains (losses) recorded in Accumulated other comprehensive income (loss) ("AOCI").

Recognition of Revenue

As of January 1, 2018, the Company changed its method for recognizing costs to obtain and fulfill certain financial services contracts upon the adoption of ASU 2014-09, "Revenue from Contracts with Customers (ASC Topic 606)" ("ASU 2014-09"). (See the Adoption of New Pronouncements section below.)

Financial services revenue is disaggregated by type of service in the following table and represents approximately 13.7% of total revenue. For the three months ended March 31, 2018, a portion of the revenue recognized in the current period from distribution services is related to performance obligations satisfied in previous periods.

	Three Months Ended March 31, 2018
Service Line
Recordkeeping & administration	$	28
Distribution & shareholder servicing	44
Total financial services revenue	$	72

Receivables of $26 are included in Other assets on the Condensed Consolidated Balance Sheet as of March 31, 2018.

Financial Services Revenue

Revenue for various financial services is measured based on consideration specified in a contract with a customer and excludes any amounts collected on behalf of third parties. For recordkeeping and administration services, the Company recognizes revenue as services are provided, generally over time. In addition, the Company may arrange for sub-advisory services for a customer under certain contracts. Revenue is recognized when the Company has satisfied a performance obligation by transferring control of a service to a customer. Contract terms are typically less than one year, and consideration is generally variable and due as services are rendered.

For distribution and shareholder servicing revenue, the Company provides distribution services at a point in time and shareholder services over time. Such revenue is recognized when the Company has satisfied a performance obligation and related consideration is received. Contract terms are less than one year, and consideration is variable. For distribution services, revenue may be recognized in periods subsequent to when the Company has satisfied a performance obligation, as a component of related consideration is constrained under certain contracts.

For a description of principal activities from which the Company generates revenue, see the Business section above for further information.

Revenue for various financial services is recorded in Fee income or Other revenue in the Condensed Consolidated Statements of Operations.

Contract Costs

Contract cost assets represent costs incurred to obtain or fulfill a contract that are expected to be recovered and, thus, have been capitalized and are subject to amortization. Capitalized contract costs include incremental costs of obtaining a contract and fulfillment costs that relate directly to a contract and generate or enhance resources of the Company that are used to satisfy performance obligations.

The Company defers (1) incremental commissions and variable compensation paid to the Company's direct sales force, consultant channel, and intermediary partners, as a result of obtaining certain financial services contracts and (2) account set-up expenses on certain recordkeeping contracts. The Company expenses as incurred deferrable contract costs for which the amortization period would be one year or less (based on the U.S. GAAP practical expedient) and other contract-related costs. The Company periodically reviews contract cost assets for impairment. Capitalized contract costs are included in Other assets on the Condensed Consolidated Balance Sheets, and costs expensed as incurred are included in Operating expenses in the Condensed Consolidated Statements of Operations.

As of March 31, 2018, contract cost assets were $91. Capitalized contract costs are amortized on a straight-line basis over the estimated lives of the contracts, which typically range from 5 to 15 years. This method is consistent with the transfer of services to which the assets relate. For the three months ended March 31, 2018, amortization expense of $5 was recorded in Operating expenses in the Condensed Consolidated Statements of Operations. There was no impairment loss in relation to the contract costs capitalized.

Adoption of New Pronouncements

Derecognition of Nonfinancial Assets

In February 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-05, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (ASC Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance & Accounting for Partial Sales of Nonfinancial Assets” (“ASU 2017-05”), which requires entities to apply certain recognition and measurement principles in ASU 2014-09, “Revenue from Contracts with Customers (ASC Topic 606)” (see Revenue from Contracts with Customers below) when they derecognize nonfinancial assets and in substance nonfinancial assets through sale or transfer, and the counterparty is not a customer.

The provisions of ASU 2017-05 were adopted January 1, 2018 using the modified retrospective approach. The adoption had no effect on the Company’s financial condition, results of operations, or cash flows.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (ASC Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  The amendments provide guidance on eight specific cash flow issues.

The provisions of ASU 2016-15 were adopted on January 1, 2018 using the retrospective approach. The adoption had no effect on the Company’s financial condition, results of operations, or cash flows.

Share-Based Compensation

In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (ASC Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), which simplifies the accounting for share-based payment award transactions with respect to:

• The income tax consequences of awards,

• The impact of forfeitures on the recognition of expense for awards,

• Classification of awards as either equity or liabilities, and

• Classification on the statement of cash flows.

The provisions of ASU 2016-09 were adopted by the Company on January 1, 2017 using the transition method prescribed for each applicable provision:

• On a prospective basis, all excess tax benefits and tax deficiencies related to share-based compensation will be reported in Net income (loss), rather than Additional paid-in capital.  Prior year excess tax benefits will remain in Additional paid-in capital. 

• The Company elected to retrospectively adopt the requirement to present cash inflows related to excess tax benefits as operating activities. For the three months ended March 31, 2017, the Company had no excess tax benefits. 

The adoption of the remaining provisions of ASU 2016-09 had no effect on the Company's financial condition, results of operations, or cash flows.

Financial Instruments - Recognition and Measurement

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (ASC Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which requires:

• Equity investments (except those consolidated or accounted for under the equity method) to be measured at fair value with changes in fair value recognized in net income.

• Elimination of the disclosure of methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost.

• The use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes.

• Separate presentation in other comprehensive income of the portion of the total change in fair value of a liability resulting from a change in own credit risk if the liability is measured at fair value under the fair value option.

• Separate presentation on the balance sheet or financial statement notes of financial assets and financial liabilities by measurement category and form of financial asset.

The Company adopted the provisions of ASU 2016-01 on January 1, 2018 using a modified retrospective approach, except for certain provisions that are required to be applied prospectively. The impact to the January 1, 2018 Condensed Consolidated Balance Sheets was a $12 increase, net of tax, to Retained earnings (deficit) with a corresponding decrease of $12, net of tax, to AOCI to recognize the unrealized gain associated with Equity securities. The provisions that required prospective adoption had no effect on the Company's financial condition, results of operations, or cash flows. Under previous guidance, prior to January 1, 2018, Equity securities were classified as available for sale with changes in fair value recognized in Other comprehensive income (loss).

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is recognized when, or as, the entity satisfies a performance obligation under the contract. ASU 2014-09 also updated the accounting for certain costs associated with obtaining and fulfilling contracts with customers and requires disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In addition, the FASB issued various amendments during 2016 to clarify the provisions and implementation guidance of ASU 2014-09. Revenue recognition for insurance contracts and financial instruments is explicitly scoped out of the guidance.

The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. The adoption had no impact on revenue recognition. However, the adoption resulted in a $90 increase in Other assets to capitalize costs to obtain and fulfill certain financial services contracts. This adjustment was offset by a related $18 decrease in Deferred income taxes, resulting in a net $72 increase to Retained earnings (deficit) on the Condensed Consolidated Balance Sheet as of January 1, 2018. In addition, disclosures have been updated to reflect accounting policy changes made as a result of the implementation of ASU 2014-09. (See the Significant Accounting Policies section above.)

Comparative information has not been adjusted and continues to be reported under previous revenue recognition guidance. The following tables summarize the impacts of adopting the provisions of ASU 2014-09 for the three months ended March 31, 2018. For the three months ended March 31, 2018, adopting the provisions of ASU 2014-09 had no impact on Net cash provided by operating activities.

Condensed Consolidated Balance Sheet
March 31, 2018
	As reported		Adjustments			Balance without adoption of ASU 2014-09
Assets
Other assets	$	173	$	(91	)	$	82
Total assets	$	108,106	$	(91	)	$	108,015
Liabilities and Shareholder's Equity
Deferred income taxes	$	117	$	(19	)	$	98
Total liabilities	104,734		(19		)	104,715
Shareholder's equity:
Retained earnings (deficit)	201		(72		)	129
Total shareholder's equity	3,372		(72		)	3,300
Total liabilities and shareholder's equity	$	108,106	$	(91	)	$	108,015

Condensed Consolidated Statement of Operations
For the Three Months Ended March 31, 2018
	As reported		Adjustments				Balance without adoption of ASU 2014-09
Benefits and expenses:
Operating expenses	$	108	$	1			$	109
Total benefits and expenses	412		1				413
Income (loss) before income taxes	112		(1		)		111
Income tax expense (benefit)	25		—			*	25
Net income (loss)	$	87	$	(1	)		$	86

*Less than $1.

Future Adoption of Accounting Pronouncements

Reclassification of Certain Tax Effects

In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (ASC Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted Tax Cuts and Jobs Act of 2017 ("Tax Reform"). Stranded tax effects arise because U.S. GAAP requires that the impact of a change in tax laws or rates on deferred tax liabilities and assets be reported in net income, even if related to items recognized within accumulated other comprehensive income. The amount of the reclassification would be based on the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate, applied to deferred tax liabilities and assets reported within accumulated other comprehensive income.

The provisions of ASU 2018-02 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Initial adoption of ASU 2018-02 may be reported either in the period of adoption or on a retrospective basis in each period in which the effect of the change in the U.S. federal corporate income tax rate resulting from Tax Reform is recognized. The Company is currently evaluating the provisions of ASU 2018-02.

Derivatives & Hedging

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic ASC 815): Targeted Improvements to Accounting for Hedging Activities " ("ASU 2017-12"), which enables entities to better portray risk management activities in their financial statements, as follows:

• Expands an entity's ability to hedge nonfinancial and financial risk components and reduces complexity in accounting for fair value hedges of interest rate risk,

• Eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item,

• Eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness, and

• Modifies required disclosures.

The provisions of ASU 2017-12 are effective for fiscal years beginning after December 15, 2018, including interim periods, with early adoption permitted. Initial adoption of ASU 2017-12 is required to be reported using a modified retrospective approach, with the exception of the presentation and disclosure requirements which are required to be applied prospectively. The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2017-12.

Debt Securities

In March 2017, the FASB issued ASU 2017-08, "Receivables-Nonrefundable Fees and Other Costs (ASC Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date.

The provisions of ASU 2017-08 are effective for fiscal years beginning after December 15, 2018, including interim periods, with early adoption permitted. Initial adoption of ASU 2017-08 is required to be reported using a modified retrospective approach. The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2017-08.

Financial Instruments - Credit Losses

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which:

• Introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments,

• Modifies the impairment model for available-for-sale debt securities, and

• Provides a simplified accounting model for purchased financial assets with credit deterioration since their origination.

The provisions of ASU 2016-13 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. Initial adoption of ASU 2016-13 is required to be reported on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, except for certain provisions that are required to be applied prospectively. The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2016-13.

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Investments

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Fixed Maturities and Equity Securities

Available-for-sale and fair value option ("FVO") fixed maturities were as follows as of March 31, 2018:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		OTTI(3)(4)
Fixed maturities:
U.S. Treasuries	$	463	$	90	$	1	$	—	$	552	$	—
U.S. Government agencies and authorities	—		—		—		—		—		—
State, municipalities and political subdivisions	841		26		8		—		859		—
U.S. corporate public securities	8,342		523		73		—		8,792		—
U.S. corporate private securities	3,387		86		78		—		3,395		—
Foreign corporate public securities and foreign governments(1)	2,601		126		31		—		2,696		—
Foreign corporate private securities(1)	3,223		101		48		—		3,276		—
Residential mortgage-backed securities:
Agency	1,876		54		32		5		1,903		—
Non-Agency	740		51		4		5		792		4
Total Residential mortgage-backed securities	2,616		105		36		10		2,695		4
Commercial mortgage-backed securities	1,570		18		21		—		1,567		—
Other asset-backed securities	839		9		2		—		846		1
Total fixed maturities, including securities pledged	23,882		1,084		298		10		24,678		5
Less: Securities pledged	776		66		9		—		833		—
Total fixed maturities	$	23,106	$	1,018	$	289	$	10	$	23,845	$	5

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾ Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

⁽³⁾ Represents Other-than-Temporary-Impairments ("OTTI") reported as a component of Other comprehensive income (loss).

⁽⁴⁾ Amount excludes $160 of net unrealized gains on impaired available-for-sale securities.

Available-for-sale and FVO fixed maturities and equity securities were as follows as of December 31, 2017:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		OTTI(3)(4)
Fixed maturities:
U.S. Treasuries	$	547	$	109	$	—	$	—	$	656	$	—
U.S. Government agencies and authorities	3		—		—		—		3		—
State, municipalities and political subdivisions	842		40		4		—		878		—
U.S. corporate public securities	8,476		786		26		—		9,236		—
U.S. corporate private securities	3,387		148		38		—		3,497		—
Foreign corporate public securities and foreign governments(1)	2,594		192		9		—		2,777		—
Foreign corporate private securities(1)	3,105		155		45		—		3,215		7
Residential mortgage-backed securities:
Agency	1,878		65		17		6		1,932		—
Non-Agency	639		54		2		6		697		4
Total Residential mortgage-backed securities	2,517		119		19		12		2,629		4
Commercial mortgage-backed securities	1,437		39		6		—		1,470		—
Other asset-backed securities	671		11		1		—		681		2
Total fixed maturities, including securities pledged	23,579		1,599		148		12		25,042		13
Less: Securities pledged	864		104		8		—		960		—
Total fixed maturities	22,715		1,495		140		12		24,082		13
Equity securities	45		15		—		—		60		—
Total fixed maturities and equity securities investments	$	22,760	$	1,510	$	140	$	12	$	24,142	$	13

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾ Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

⁽³⁾ Represents OTTI reported as a component of Other comprehensive income (loss).

⁽⁴⁾ Amount excludes $190 of net unrealized gains on impaired available-for-sale securities.

The amortized cost and fair value of fixed maturities, including securities pledged, as of March 31, 2018, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. Mortgage-backed securities ("MBS") and Other asset-backed securities ("ABS") are shown separately because they are not due at a single maturity date.

	Amortized Cost		Fair Value
Due to mature:
One year or less	$	566	$	572
After one year through five years	4,392		4,498
After five years through ten years	6,029		6,072
After ten years	7,870		8,428
Mortgage-backed securities	4,186		4,262
Other asset-backed securities	839		846
Fixed maturities, including securities pledged	$	23,882	$	24,678

The investment portfolio is monitored to maintain a diversified portfolio on an ongoing basis. Credit risk is mitigated by monitoring concentrations by issuer, sector and geographic stratification and limiting exposure to any one issuer. 

As of March 31, 2018 and December 31, 2017, the Company did not have any investments in a single issuer, other than obligations of the U.S. Government and government agencies, with a carrying value in excess of 10% of the Company's Total shareholder's equity.

The following tables set forth the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Fair Value
March 31, 2018
Communications	$	1,184	$	82	$	8	$	1,258
Financial	2,717		117		22		2,812
Industrial and other companies	7,856		335		109		8,082
Energy	1,974		113		44		2,043
Utilities	2,775		142		35		2,882
Transportation	715		33		8		740
Total	$	17,221	$	822	$	226	$	17,817
December 31, 2017
Communications	$	1,145	$	114	$	1	$	1,258
Financial	2,750		185		4		2,931
Industrial and other companies	7,953		532		65		8,420
Energy	1,970		159		33		2,096
Utilities	2,725		216		11		2,930
Transportation	697		52		2		747
Total	$	17,240	$	1,258	$	116	$	18,382

Fixed Maturities and Equity Securities:

The Company's fixed maturities are currently designated as available-for-sale, except those accounted for using the FVO. Prior to the adoption of ASU 2016-01 as of January 1, 2018, equity securities were also designated as available-for-sale. Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in AOCI and presented net of related changes in Deferred policy acquisition costs ("DAC"), Value of business acquired ("VOBA") and Deferred income taxes. In addition, certain fixed maturities have embedded derivatives, which are reported with the host contract on the Condensed Consolidated Balance Sheets.

The Company has elected the FVO for certain of its fixed maturities to better match the measurement of assets and liabilities in the Condensed Consolidated Statements of Operations. Certain collateralized mortgage obligations ("CMOs"), primarily interest-only and principal-only strips, are accounted for as hybrid instruments and reported at fair value with changes in the fair value recorded in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

The Company invests in various categories of CMOs, including CMOs that are not agency-backed, that are subject to different degrees of risk from changes in interest rates and defaults. The principal risks inherent in holding CMOs are prepayment and extension risks related to significant decreases and increases in interest rates resulting in the prepayment of principal from the underlying mortgages, either earlier or later than originally anticipated. As of March 31, 2018 and December 31, 2017, approximately 50.5% and 52.1%, respectively, of the Company’s CMO holdings, were invested in the above mentioned types of CMOs such as interest-only or principal-only strips, that are subject to more prepayment and extension risk than traditional CMOs.

Public corporate fixed maturity securities are distinguished from private corporate fixed maturity securities based upon the manner in which they are transacted. Public corporate fixed maturity securities are issued initially through market intermediaries on a registered basis or pursuant to Rule 144A under the Securities Act of 1933 (the "Securities Act") and are traded on the secondary market through brokers acting as principal. Private corporate fixed maturity securities are originally issued by borrowers directly to investors pursuant to Section 4(a)(2) of the Securities Act, and are traded in the secondary market directly with counterparties, either without the participation of a broker or in agency transactions.

Repurchase Agreements

As of March 31, 2018 and December 31, 2017, the Company did not have any securities pledged in dollar rolls, repurchase agreement transactions or reverse repurchase agreements.

Securities Lending

The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions, through a lending agent, for short periods of time. The Company has the right to approve any institution with whom the lending agent transacts on its behalf. Initial collateral is required at a rate of 102% of the market value of the loaned securities. The lending agent retains the collateral and invests it in high quality liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. The lending agent indemnifies the Company against losses resulting from the failure of a counterparty to return securities pledged where collateral is insufficient to cover the loss. As of March 31, 2018 and December 31, 2017, the fair value of loaned securities was $646 and $799, respectively, and is included in Securities pledged on the Condensed Consolidated Balance Sheets.

If cash is received as collateral, the lending agent retains the cash collateral and invests it in short-term liquid assets on behalf of the Company. As of March 31, 2018 and December 31, 2017, cash collateral retained by the lending agent and invested in short-term liquid assets on the Company's behalf was $581 and $744, respectively, and is recorded in Short-term investments under securities loan agreements, including collateral delivered on the Condensed Consolidated Balance Sheets. As of March 31, 2018 and December 31, 2017, liabilities to return collateral of $581 and $744, respectively, are included in Payables under securities loan agreements, including collateral held, on the Condensed Consolidated Balance Sheets.

The Company accepts non-cash collateral in the form of securities. The securities retained as collateral by the lending agent may not be sold or re-pledged, except in the event of default, and are not reflected on the Company’s Condensed Consolidated Balance Sheets. This collateral generally consists of U.S. Treasury, U.S. Government agency securities and MBS pools. As of March 31, 2018 and December 31, 2017, the fair value of securities retained as collateral by the lending agent on the Company’s behalf was $85 and $61, respectively.

The following table presents borrowings under securities lending transactions by class of collateral pledged for the dates indicated:

	March 31, 2018 (1)(2)		December 31, 2017 (1)(2)
U.S. Treasuries	$	80	$	177
U.S. corporate public securities	445		460
Foreign corporate public securities and foreign governments	141		168
Payables under securities loan agreements	$	666	$	805

⁽¹⁾ As of March 31, 2018 and December 31, 2017, borrowings under securities lending transactions include cash collateral of $581 and $744, respectively.

⁽²⁾ As of March 31, 2018 and December 31, 2017, borrowings under securities lending transactions include non-cash collateral of $85 and $61, respectively.

The Company's securities lending activities are conducted on an overnight basis, and all securities loaned can be recalled at any time. The Company does not offset assets and liabilities associated with its securities lending program.

Variable Interest Entities ("VIEs")

The Company holds certain VIEs for investment purposes. VIEs may be in the form of private placement securities, structured securities, securitization transactions or limited partnerships. The Company has reviewed each of its holdings and determined that consolidation of these investments in the Company’s financial statements is not required, as the Company is not the primary beneficiary, because the Company does not have both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation or right to potentially significant losses or benefits, for any of its investments in VIEs. The Company did not provide any non-contractual financial support and its carrying value represents the Company’s exposure to loss. The carrying value of the investments in VIEs was $425 and $411 as of March 31, 2018 and December 31, 2017, respectively; these investments are included in Limited partnerships/corporations on the Condensed Consolidated Balance Sheets. Income and losses recognized on these investments are reported in Net investment income in the Condensed Consolidated Statements of Operations.

Securitizations

The Company invests in various tranches of securitization entities, including Residential mortgage-backed securities ("RMBS"), Commercial mortgage-backed securities ("CMBS") and ABS. Through its investments, the Company is not obligated to provide any financial or other support to these entities. Each of the RMBS, CMBS and ABS entities are thinly capitalized by design and considered VIEs. The Company's involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer or investment manager, which are generally viewed to have the power to direct the activities that most significantly impact the securitization entities' economic performance, in any of these entities, nor does the Company function in any of these roles. The Company, through its investments or other arrangements, does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity. Therefore, the Company is not the primary beneficiary and does not consolidate any of the RMBS, CMBS and ABS entities in which it holds investments. These investments are accounted for as investments available-for-sale as described in the Fair Value Measurements Note to these Condensed Consolidated Financial Statements and unrealized capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS that are accounted for under the FVO, for which changes in fair value are reflected in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. The Company’s maximum exposure to loss on these structured investments is limited to the amount of its investment.

Unrealized Capital Losses

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of March 31, 2018:

	Six Months or Less Below Amortized Cost				More Than Six Months and Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost				Total
	Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	15	$	—	$	—	$	—	$	12	$	1	$	27	$	1
State, municipalities and political subdivisions	183		2		17		1		89		5		289		8
U.S. corporate public securities	1,904		38		184		13		228		22		2,316		73
U.S. corporate private securities	932		17		146		8		475		53		1,553		78
Foreign corporate public securities and foreign governments	766		18		40		3		83		10		889		31
Foreign corporate private securities	711		13		70		21		166		14		947		48
Residential mortgage-backed	334		7		147		8		418		21		899		36
Commercial mortgage-backed	573		10		240		9		37		2		850		21
Other asset-backed	145		1		45		1		16		—		206		2
Total	$	5,563	$	106	$	889	$	64	$	1,524	$	128	$	7,976	$	298

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2017:

	Six Months or Less Below Amortized Cost				More Than Six Months and Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost				Total
	Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	18	$	—	$	—	$	—	$	12	$	—	$	30	$	—
State, municipalities and political subdivisions	34		—		1		—		91		4		126		4
U.S. corporate public securities	504		11		—		—		304		15		808		26
U.S. corporate private securities	226		2		46		2		499		34		771		38
Foreign corporate public securities and foreign governments	148		1		5		—		99		8		252		9
Foreign corporate private securities	135		38		13		—		161		7		309		45
Residential mortgage-backed	263		5		26		1		438		13		727		19
Commercial mortgage-backed	436		5		19		—		50		1		505		6
Other asset-backed	95		1		9		—		38		—		142		1
Total	$	1,859	$	63	$	119	$	3	$	1,692	$	82	$	3,670	$	148

Of the unrealized capital losses aged more than twelve months, the average market value of the related fixed maturities was 92.3% and 95.4% of the average book value as of March 31, 2018 and December 31, 2017, respectively.

Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, for instances in which fair value declined below amortized cost by greater than or less than 20% for consecutive months as indicated in the tables below, were as follows as of the dates indicated:

	Amortized Cost				Unrealized Capital Losses				Number of Securities
	< 20%		> 20%		< 20%		> 20%		< 20%	> 20%
March 31, 2018
Six months or less below amortized cost	$	5,668	$	89	$	107	$	28	1,139	9
More than six months and twelve months or less below amortized cost	901		1		44		—		181	1
More than twelve months below amortized cost	1,536		79		95		24		324	6
Total	$	8,105	$	169	$	246	$	52	1,644	16
December 31, 2017
Six months or less below amortized cost	$	1,883	$	67	$	30	$	38	433	7
More than six months and twelve months or less below amortized cost	128		7		4		2		37	1
More than twelve months below amortized cost	1,661		72		53		21		335	7
Total	$	3,672	$	146	$	87	$	61	805	15

Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, by market sector for instances in which fair value declined below amortized cost by greater than or less than 20% were as follows as of the dates indicated:

	Amortized Cost				Unrealized Capital Losses				Number of Securities
	< 20%		> 20%		< 20%		> 20%		< 20%	> 20%
March 31, 2018
U.S. Treasuries	$	28	$	—	$	1	$	—	6	—
State, municipalities and political subdivisions	297		—		8		—		167	—
U.S. corporate public securities	2,356		33		65		8		513	3
U.S. corporate private securities	1,564		67		57		21		176	2
Foreign corporate public securities and foreign governments	908		12		28		3		197	2
Foreign corporate private securities	939		56		28		20		101	5
Residential mortgage-backed	935		—		36		—		233	2
Commercial mortgage-backed	871		—		21		—		185	—
Other asset-backed	207		1		2		—		66	2
Total	$	8,105	$	169	$	246	$	52	1,644	16
December 31, 2017
U.S. Treasuries	$	30	$	—	$	—	$	—	6	—
State, municipalities and political subdivisions	130		—		4		—		96	—
U.S. corporate public securities	828		6		24		2		167	2
U.S. corporate private securities	743		66		18		20		71	2
Foreign corporate public securities and foreign governments	254		7		7		2		61	1
Foreign corporate private securities	288		66		8		37		35	6
Residential mortgage-backed	746		—		19		—		194	3
Commercial mortgage-backed	511		—		6		—		131	—
Other asset-backed	142		1		1		—		44	1
Total	$	3,672	$	146	$	87	$	61	805	15

Investments with fair values less than amortized cost are included in the Company's other-than-temporary impairments analysis. Impairments were recognized as disclosed in the "Evaluating Securities for Other-Than-Temporary Impairments" section below. The Company evaluates non-agency RMBS and ABS for "other-than-temporary impairments" each quarter based on actual and projected cash flows, after considering the quality and updated loan-to-value ratios reflecting current home prices of underlying collateral, forecasted loss severity, the payment priority within the tranche structure of the security and amount of any credit enhancements. The Company's assessment of current levels of cash flows compared to estimated cash flows at the time the securities were acquired (typically pre-2008) indicates the amount and the pace of projected cash flows from the underlying collateral has generally been lower and slower, respectively. However, since cash flows are typically projected at a trust level, the impairment review incorporates the security's position within the trust structure as well as credit enhancement remaining in the trust to determine whether an impairment is warranted. Therefore, while lower and slower cash flows will impact the trust, the effect on the valuation of a particular security within the trust will also be dependent upon the trust structure. Where the assessment continues to project full recovery of principal and interest on schedule, the Company has not recorded an impairment. Based on this analysis, the Company determined that the remaining investments in an unrealized loss position were not other-than-temporarily impaired and therefore no further other-than-temporary impairment was necessary.

Troubled Debt Restructuring

The Company invests in high quality, well performing portfolios of commercial mortgage loans and private placements. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a troubled debt restructuring has occurred. A modification is a troubled debt restructuring when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific valuation allowance recorded in connection with the troubled debt restructuring. A valuation allowance may have been recorded prior to the quarter when the loan is modified in a troubled debt restructuring. Accordingly, the carrying value (net of the specific valuation allowance) before and after modification through a troubled debt restructuring may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. As of March 31, 2018, the Company did not have any new commercial mortgage loan or private placement troubled debt restructuring. As of December 31, 2017, the Company did not have any new commercial mortgage loan troubled debt restructuring and had one private placement troubled debt restructuring with a pre-modification and post modification carrying value of $3.

As of March 31, 2018 and December 31, 2017, the Company did not have any commercial mortgage loans or private placements modified in a troubled debt restructuring with a subsequent payment default.

Mortgage Loans on Real Estate

The Company's mortgage loans on real estate are all commercial mortgage loans held for investment, which are reported at amortized cost, less impairment write-downs and allowance for losses. The Company diversifies its commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. The Company manages risk when originating commercial mortgage loans by generally lending only up to 75% of the estimated fair value of the underlying real estate. Subsequently, the Company continuously evaluates mortgage loans based on relevant current information including a review of loan-specific credit quality, property characteristics and market trends. Loan performance is monitored on a loan-specific basis through the review of submitted appraisals, operating statements, rent revenues and annual inspection reports, among other items. This review ensures properties are performing at a consistent and acceptable level to secure the debt. The components to evaluate debt service coverage are received and reviewed at least annually to determine the level of risk.

The following table summarizes the Company's investment in mortgage loans as of the dates indicated:

	March 31, 2018								December 31, 2017
	Impaired		Non Impaired			Total			Impaired		Non Impaired			Total
Commercial mortgage loans	$	4	$	4,888		$	4,892		$	4	$	4,907		$	4,911
Collective valuation allowance for losses	—		(1		)	(1		)	N/A		(1		)	(1		)
Total net commercial mortgage loans	$	4	$	4,887		$	4,891		$	4	$	4,906		$	4,910
N/A- Not Applicable

There were no impairments taken on the mortgage loan portfolio for the three months ended March 31, 2018 and 2017.

The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated:

	March 31, 2018		December 31, 2017
Collective valuation allowance for losses, balance at January 1	$	1	$	1
Addition to (reduction of) allowance for losses	—		—
Collective valuation allowance for losses, end of period	$	1	$	1

The carrying values and unpaid principal balances of impaired mortgage loans were as follows as of the dates indicated:

	March 31, 2018		December 31, 2017
Impaired loans without allowances for losses	$	4	$	4
Less: Allowances for losses on impaired loans	—		—
Impaired loans, net	$	4	$	4
Unpaid principal balance of impaired loans	$	6	$	6

As of March 31, 2018 and December 31, 2017 the Company did not have any impaired loans with allowances for losses.

The Company defines delinquent mortgage loans consistent with industry practice as 60 days past due. The Company's policy is to recognize interest income until a loan becomes 90 days delinquent or foreclosure proceedings are commenced, at which point interest accrual is discontinued. Interest accrual is not resumed until the loan is brought current.

There were no mortgage loans in the Company's portfolio in process of foreclosure as of March 31, 2018 and December 31, 2017.

There were no loans 30 days or less in arrears, with respect to principal and interest as of March 31, 2018 and December 31, 2017.

The following table presents information on the average investment during the period in impaired loans and interest income recognized on impaired and troubled debt restructured loans for the periods indicated:

	Three Months Ended March 31,
	2018		2017
Impaired loans, average investment during the period (amortized cost)(1)	$	4	$	5
Interest income recognized on impaired loans, on an accrual basis(1)	—		—
Interest income recognized on impaired loans, on a cash basis(1)	—		—
Interest income recognized on troubled debt restructured loans, on an accrual basis	—		—
(1)Includes amounts for Troubled debt restructured loans.

Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio, calculated at time of origination, is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.0 indicates that a property’s operations do not generate sufficient income to cover debt payments. These ratios are utilized as part of the review process described above.

The following table presents the LTV ratios as of the dates indicated:

	March 31, 2018 (1)		December 31, 2017 (1)
Loan-to-Value Ratio:
0% - 50%	$	343	$	341
>50% - 60%	1,291		1,256
>60% - 70%	2,971		3,042
>70% - 80%	276		262
>80% and above	11		10
Total Commercial mortgage loans	$	4,892	$	4,911

⁽¹⁾ Balances do not include collective valuation allowance for losses.

The following table presents the DSC ratios as of the dates indicated:

	March 31, 2018 (1)		December 31, 2017 (1)
Debt Service Coverage Ratio:
Greater than 1.5x	$	3,793	$	3,902
>1.25x - 1.5x	355		340
>1.0x - 1.25x	645		600
Less than 1.0x	82		54
Commercial mortgage loans secured by land or construction loans	17		15
Total Commercial mortgage loans	$	4,892	$	4,911

⁽¹⁾ Balances do not include collective valuation allowance for losses.

Properties collateralizing mortgage loans are geographically dispersed throughout the United States, as well as diversified by property type, as reflected in the following tables as of the dates indicated:

	March 31, 2018 (1)				December 31, 2017 (1)
	Gross Carrying Value		% of Total		Gross Carrying Value		% of Total
Commercial Mortgage Loans by U.S. Region:
Pacific	$	987	20.2	%	$	985	20.1	%
South Atlantic	996		20.3	%	982		20.0	%
Middle Atlantic	1,101		22.4	%	1,097		22.4	%
West South Central	544		11.1	%	552		11.2	%
Mountain	463		9.5	%	457		9.3	%
East North Central	454		9.3	%	468		9.5	%
New England	76		1.6	%	77		1.6	%
West North Central	229		4.7	%	243		4.9	%
East South Central	42		0.9	%	50		1.0	%
Total Commercial mortgage loans	$	4,892	100.0	%	$	4,911	100.0	%

⁽¹⁾ Balances do not include collective valuation allowance for losses.

	March 31, 2018 (1)				December 31, 2017 (1)
	Gross Carrying Value		% of Total		Gross Carrying Value		% of Total
Commercial Mortgage Loans by Property Type:
Retail	$	1,383	28.3	%	$	1,383	28.1	%
Industrial	1,273		26.1	%	1,326		27.0	%
Apartments	951		19.4	%	948		19.3	%
Office	842		17.2	%	829		16.9	%
Hotel/Motel	178		3.6	%	177		3.6	%
Mixed Use	51		1.0	%	52		1.1	%
Other	214		4.4	%	196		4.0	%
Total Commercial mortgage loans	$	4,892	100.0	%	$	4,911	100.0	%

⁽¹⁾ Balances do not include collective valuation allowance for losses.

The following table presents mortgages by year of origination as of the dates indicated:

	March 31, 2018 (1)		December 31, 2017 (1)
Year of Origination:
2018	$	137	$	—
2017	1,073		1,086
2016	857		867
2015	700		703
2014	523		538
2013	638		644
2012 and prior	964		1,073
Total Commercial mortgage loans	$	4,892	$	4,911

⁽¹⁾ Balances do not include collective valuation allowance for losses.

Evaluating Securities for Other-Than-Temporary Impairments

The Company performs a regular evaluation, on a security-by-security basis, of its available-for-sale securities holdings, including fixed maturity securities in accordance with its impairment policy in order to evaluate whether such investments are other-than-temporarily impaired.

The following tables identify the Company's credit-related and intent-related impairments included in the Condensed Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated:

	Three Months Ended March 31,
	2018				2017
	Impairment			No. of Securities	Impairment			No. of Securities
Foreign corporate private securities(1)	$	9		1	$	—		—
Residential mortgage-backed	—		*	6	—		*	8
Total	$	9		7	$	—	*	8
(1) Primarily U.S. dollar denominated.
*Less than $1.

The above table includes $9 of write-downs related to credit impairments for the three months ended March 31, 2018 in Other-than-temporary impairments, which are recognized in the Condensed Consolidated Statements of Operations. The above table includes immaterial write-downs related to credit impairments for the three months ended March 31, 2017. The remaining write-downs for the three months ended March 31, 2018 and March 31, 2017 related to intent impairments are immaterial.

The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities. In certain situations, new factors, including changes in the business environment, can change the Company’s previous intent to continue holding a security. Accordingly, these factors may lead the Company to record additional intent related capital losses.

The following table presents the amount of credit impairments on fixed maturities for which a portion of the OTTI loss was recognized in Other comprehensive income (loss) and the corresponding changes in such amounts for the periods indicated:

	Three Months Ended March 31,
	2018		2017
Balance at January 1	$	16	$	9
Additional credit impairments:
On securities previously impaired	—		—
Reductions:
Increase in cash flows	—		—
Securities sold, matured, prepaid or paid down	10		1
Balance at March 31	$	6	$	8

Net Investment Income

The following table summarizes Net investment income for the periods indicated:

	Three Months Ended March 31,
	2018		2017
Fixed maturities	$	323	$	326
Equity securities	1		1
Mortgage loans on real estate	53		51
Policy loans	2		3
Short-term investments and cash equivalents	1		—
Other	19		15
Gross investment income	399		396
Less: Investment expenses	17		17
Net investment income	$	382	$	379

As of March 31, 2018 and December 31, 2017, the Company had $1 and $3, respectively, of investments in fixed maturities that did not produce net investment income. Fixed maturities are moved to a non-accrual status when the investment defaults.

Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to amortization of premiums and accretion of discounts. Such interest income is recorded in Net investment income in the Condensed Consolidated Statements of Operations.

Net Realized Capital Gains (Losses)

Net realized capital gains (losses) comprise the difference between the amortized cost of investments and proceeds from sale and redemption, as well as losses incurred due to the credit-related and intent-related other-than-temporary impairment of investments. Realized investment gains and losses are also primarily generated from changes in fair value of embedded derivatives within products and fixed maturities, changes in fair value of fixed maturities recorded at FVO and changes in fair value including accruals on derivative instruments, except for effective cash flow hedges. Upon the adoption of ASU 2016-01 as of January 1, 2018, realized capital gains (losses) also includes changes in fair value of equity securities.The cost of the investments on disposal is generally determined based on first-in-first-out ("FIFO") methodology.

Net realized capital gains (losses) were as follows for the periods indicated:

	Three Months Ended March 31,
	2018			2017
Fixed maturities, available-for-sale, including securities pledged	$	(14	)	$	(19	)
Fixed maturities, at fair value option	(99		)	(59		)
Equity securities	(2		)	—
Derivatives	5			4
Embedded derivatives - fixed maturities	(2		)	(1		)
Guaranteed benefit derivatives	20			20
Other investments	5			—
Net realized capital gains (losses)	$	(87	)	$	(55	)
After-tax net realized capital gains (losses)	$	(79	)	$	(36	)

For the three months ended March 31, 2018, the change in fair value of equity securities still held as of March 31, 2018 was $(2).

Proceeds from the sale of fixed maturities and equity securities, available-for-sale and the related gross realized gains and losses, before tax, were as follows for the periods indicated:

	Three Months Ended March 31,
	2018		2017
Proceeds on sales	$	660	$	1,077
Gross gains	4		5
Gross losses	7		18

XML

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The Company enters into the following types of derivatives:

Interest rate caps: The Company uses interest rate cap contracts to hedge the interest rate exposure arising from duration mismatches between assets and liabilities. Interest rate caps are also used to hedge interest rate exposure if rates rise above a specified level. Such increases in rates will require the Company to incur additional expenses. The future payout from the interest rate caps fund this increased exposure. The Company pays an upfront premium to purchase these caps. The Company utilizes these contracts in non-qualifying hedging relationships.

Interest rate swaps: Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Credit default swaps: Credit default swaps are used to reduce credit loss exposure with respect to certain assets that the Company owns, or to assume credit exposure on certain assets that the Company does not own. Payments are made to, or received from, the counterparty at specified intervals. In the event of a default on the underlying credit exposure, the Company will either receive a payment (purchased credit protection) or will be required to make a payment (sold credit protection) equal to the par minus recovery value of the swap contract. The Company utilizes these contracts in non-qualifying hedging relationships.

Currency forwards: The Company utilizes currency forward contracts to hedge currency exposure related to invested assets. The Company utilizes these contracts in non-qualifying hedging relationships.

Futures: Futures contracts are used to hedge against a decrease in certain equity indices. Such decreases may correlate to a decrease in variable annuity account values which would increase the possibility of the Company incurring an expense for guaranteed benefits in excess of account values. The Company also uses interest rate futures contracts to hedge its exposure to market risks due to changes in interest rates. The Company enters into exchange traded futures with regulated futures commissions that are members of the exchange. The Company also posts initial and variation margins, with the exchange, on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships. The Company may also use futures contracts as a hedge against an increase in certain equity indices. Such increases may result in increased payments to the holders of fixed index annuity ("FIA") contracts.

Swaptions: A swaption is an option to enter into a swap with a forward starting effective date. The Company uses swaptions to hedge the interest rate exposure associated with the minimum crediting rate and book value guarantees embedded in the retirement products that the Company offers. Increases in interest rates will generate losses on assets that are backing such liabilities. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium when it purchases the swaption. The Company utilizes these contracts in non-qualifying hedging relationships.

Options: The Company uses equity options to hedge against an increase in various equity indices. Such increases may result in increased payments to the holders of the FIA contracts. The Company pays an upfront premium to purchase these options. The Company utilizes these options in non-qualifying hedging relationships.

Managed custody guarantees ("MCGs"): The Company issues certain credited rate guarantees on variable fixed income portfolios that represent stand-alone derivatives. The market value is partially determined by, among other things, levels of or changes in interest rates, prepayment rates and credit ratings/spreads.

Embedded derivatives: The Company also invests in certain fixed maturity instruments and has issued certain products that contain embedded derivatives for which market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates, or credit ratings/spreads. In addition, the Company has entered into coinsurance with funds withheld arrangements, which contain embedded derivatives.

The Company's use of derivatives is limited mainly to economic hedging to reduce the Company's exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and equity market risk. It is the Company's policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement, which provides the Company with the legal right of offset. However, in accordance with the Chicago Mercantile Exchange ("CME") rule changes related to the variation margin payments, effective the first quarter of 2017, the Company is required to adjust the derivative balances with the variation margin payments related to our cleared derivatives executed through CME.

The notional amounts and fair values of derivatives were as follows as of the dates indicated:

	March 31, 2018							December 31, 2017
	Notional Amount		Asset Fair Value		Liability Fair Value			Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives: Qualifying for hedge accounting(1)
Cash flow hedges:
Interest rate contracts	$	35	$	—	$	—		$	35	$	—	$	—
Foreign exchange contracts	569		1		77			533		—		52
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts	17,188		133		16			18,769		117		20
Foreign exchange contracts	11		—		—			26		—		—
Equity contracts	144		6		5			154		9		7
Credit contracts	681		8		4			771		10		6
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	N/A		10		—			N/A		12		—
Within products	N/A		—		95			N/A		—		117
Within reinsurance agreements	N/A		—		(51		)	N/A		—		(21		)
Total			$	158	$	146				$	148	$	181

⁽¹⁾ Open derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value.

N/A - Not Applicable

Based on the notional amounts, a substantial portion of the Company’s derivative positions was not designated or did not qualify for hedge accounting as part of a hedging relationship as of March 31, 2018 and December 31, 2017. The Company utilizes derivative contracts mainly to hedge exposure to variability in cash flows, interest rate risk, credit risk, foreign exchange risk and equity market risk. The majority of derivatives used by the Company are designated as product hedges, which hedge the exposure arising from insurance liabilities or guarantees embedded in the contracts the Company offers through various product lines. These derivatives do not qualify for hedge accounting as they do not meet the criteria of being "highly effective" as outlined in ASC Topic 815, but do provide an economic hedge, which is in line with the Company’s risk management objectives. The Company also uses derivatives contracts to hedge its exposure to various risks associated with the investment portfolio. The Company does not seek hedge accounting treatment for certain of these derivatives as they generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules outlined in ASC Topic 815. The Company also uses credit default swaps coupled with other investments in order to produce the investment characteristics of otherwise permissible investments that do not qualify as effective accounting hedges under ASC Topic 815.

Although the Company has not elected to net its derivative exposures, the notional amounts and fair values of Over-The-Counter ("OTC") and cleared derivatives excluding exchange traded contracts and forward contracts (To Be Announced mortgage-backed securities) are presented in the tables below as of the dates indicated:

	March 31, 2018
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	681	$	8		$	4
Equity contracts	144		6			5
Foreign exchange contracts	580		1			77
Interest rate contracts	14,755		133			16
			148			102
Counterparty netting(1)			(38		)	(38		)
Cash collateral netting(1)			(106		)	—
Securities collateral netting(1)			—			(64		)
Net receivables/payables			$	4		$	—

⁽¹⁾ Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements.

	December 31, 2017
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	771	$	10		$	6
Equity contracts	154		9			7
Foreign exchange contracts	559		—			52
Interest rate contracts	17,286		117			20
			136			85
Counterparty netting(1)			(50		)	(50		)
Cash collateral netting(1)			(84		)	—
Securities collateral netting(1)			—			(30		)
Net receivables/payables			$	2		$	5

⁽¹⁾ Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements.

Collateral

Under the terms of the OTC Derivative International Swaps and Derivatives Association, Inc. ("ISDA") agreements, the Company may receive from, or deliver to, counterparties, collateral to assure that terms of the ISDA agreements will be met with regard to the Credit Support Annex ("CSA"). The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate. To the extent cash collateral is received and delivered, it is included in Payables under securities loan agreements, including collateral held and Short-term investments under securities loan agreements, including collateral delivered, respectively, on the Condensed Consolidated Balance Sheets and is reinvested in short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by the Company are the source of noncash collateral posted, which is reported in Securities pledged on the Condensed Consolidated Balance Sheets. As of March 31, 2018, the Company held $6 and $101 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2017, the Company held $11 and $74 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. In addition, as of March 31, 2018, the Company delivered $187 of securities and held no securities as collateral. As of December 31, 2017, the Company delivered $161 of securities and held no securities as collateral.

Net realized gains (losses) on derivatives were as follows for the periods indicated:

	Three Months Ended March 31,
	2018			2017
Derivatives: Qualifying for hedge accounting(1)
Cash flow hedges:
Interest rate contracts	$	—		$	—
Foreign exchange contracts	1			7
Derivatives: Non-qualifying for hedge accounting(2)
Interest rate contracts	5			(3		)
Foreign exchange contracts	(1		)	(2		)
Equity contracts	—			1
Credit contracts	—			1
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments(2)	(2		)	(2		)
Within products(2)	20			20
Within reinsurance agreements(3)	29			(2		)
Total	$	52		$	20

⁽¹⁾ Changes in value for effective fair value hedges are recorded in Other net realized capital gains (losses). Changes in fair value upon disposal for effective cash flow hedges are amortized through Net investment income and the ineffective portion is recorded in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. For the three months ended March 31, 2018 and 2017, ineffective amounts were immaterial.

⁽²⁾ Changes in value are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

⁽³⁾ Changes in value are included in Interest credited and other benefits to contract owners/policyholders in the Condensed Consolidated Statements of Operations.

Credit Default Swaps

The Company has entered into various credit default swaps. When credit default swaps are sold, the Company assumes credit exposure to certain assets that it does not own. Credit default swaps may also be purchased to reduce credit exposure in the Company's portfolio. Credit default swaps involve a transfer of credit risk from one party to another in exchange for periodic payments. As of March 31, 2018, the fair values of credit default swaps of $8 and $4 were included in Derivatives assets and Derivatives liabilities, respectively, on the Condensed Consolidated Balance Sheets. As of December 31, 2017, the fair values of credit default swaps of $10 and $6 were included in Derivatives assets and Derivatives liabilities, respectively, on the Condensed Consolidated Balance Sheets. As of March 31, 2018 and December 31, 2017, the maximum potential future exposure to the Company was $422 and $497, respectively, on credit default swaps. These instruments are typically written for a maturity period of 5 years and contain no recourse provisions. If the Company's current debt and claims paying ratings were downgraded in the future, the terms in the Company's derivative agreements may be triggered, which could negatively impact overall liquidity.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair Value Measurement

The Company categorizes its financial instruments into a three-level hierarchy based on the priority of the inputs to the valuation technique, pursuant to ASU 2011-04, "Fair Value Measurements (ASC Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP" ("ASU 2011-04"). The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.

When available, the estimated fair value of financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, including discounted cash flow methodologies, matrix pricing or other similar techniques.

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of March 31, 2018:

	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	494		$	58		$	—		$	552
U.S. Government agencies and authorities	—			—			—			—
State, municipalities and political subdivisions	—			859			—			859
U.S. corporate public securities	—			8,777			15			8,792
U.S. corporate private securities	—			2,744			651			3,395
Foreign corporate public securities and foreign governments(1)	—			2,696			—			2,696
Foreign corporate private securities (1)	—			3,175			101			3,276
Residential mortgage-backed securities	—			2,622			73			2,695
Commercial mortgage-backed securities	—			1,567			—			1,567
Other asset-backed securities	—			720			126			846
Total fixed maturities, including securities pledged	494			23,218			966			24,678
Equity securities	10			—			48			58
Derivatives:
Interest rate contracts	—			133			—			133
Foreign exchange contracts	—			1			—			1
Equity contracts	—			6			—			6
Credit contracts	—			8			—			8
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,010			—			—			1,010
Assets held in separate accounts	68,387			5,091			11			73,489
Total assets	$	69,901		$	28,457		$	1,025		$	99,383
Percentage of Level to Total	70		%	29		%	1		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	18		$	18
Stabilizer and MCGs	—			—			77			77
Other derivatives:
Interest rate contracts	—			16			—			16
Foreign exchange contracts	—			77			—			77
Equity contracts	—			5			—			5
Credit contracts	—			4			—			4
Embedded derivative on reinsurance	—			(51		)	—			(51		)
Total liabilities	$	—		$	51		$	95		$	146

⁽¹⁾ Primarily U.S. dollar denominated.

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2017:

	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	597		$	59		$	—		$	656
U.S. Government agencies and authorities	—			3			—			3
State, municipalities and political subdivisions	—			878			—			878
U.S. corporate public securities	—			9,210			26			9,236
U.S. corporate private securities	—			2,855			642			3,497
Foreign corporate public securities and foreign governments(1)	—			2,777			—			2,777
Foreign corporate private securities (1)	—			3,123			92			3,215
Residential mortgage-backed securities	—			2,608			21			2,629
Commercial mortgage-backed securities	—			1,463			7			1,470
Other asset-backed securities	—			638			43			681
Total fixed maturities, including securities pledged	597			23,614			831			25,042
Equity securities, available-for-sale	10			—			50			60
Derivatives:
Interest rate contracts	—			117			—			117
Foreign exchange contracts	—			—			—			—
Equity contracts	—			9			—			9
Credit contracts	—			10			—			10
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,078			—			—			1,078
Assets held in separate accounts	67,966			5,059			11			73,036
Total assets	$	69,651		$	28,809		$	892		$	99,352
Percentage of Level to total	70		%	29		%	1		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	20		$	20
Stabilizer and MCGs	—			—			97			97
Other derivatives:
Interest rate contracts	—			20			—			20
Foreign exchange contracts	—			52			—			52
Equity contracts	—			7			—			7
Credit contracts	—			6			—			6
Embedded derivative on reinsurance	—			(21		)	—			(21		)
Total liabilities	$	—		$	64		$	117		$	181

⁽¹⁾ Primarily U.S. dollar denominated.

Valuation of Financial Assets and Liabilities at Fair Value

Certain assets and liabilities are measured at estimated fair value on the Company's Condensed Consolidated Balance Sheets. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The exit price and the transaction (or entry) price will be the same at initial recognition in many circumstances. However, in certain cases, the transaction price may not represent fair value. The fair value of a liability is based on the amount that would be paid to transfer a liability to a third-party with an equal credit standing. Fair value is required to be a market-based measurement that is determined based on a hypothetical transaction at the measurement date, from a market participant's perspective. The Company considers three broad valuation approaches when a quoted price is unavailable: (i) the market approach, (ii) the income approach and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given the instrument being measured and the availability of sufficient inputs. The Company prioritizes the inputs to fair valuation approaches and allows for the use of unobservable inputs to the extent that observable inputs are not available.

The Company utilizes a number of valuation methodologies to determine the fair values of its financial assets and liabilities in conformity with the concepts of exit price and the fair value hierarchy as prescribed in ASC Topic 820. Valuations are obtained from third-party commercial pricing services, brokers and industry-standard, vendor-provided software that models the value based on market observable inputs. The valuations obtained from third-party commercial pricing services are non-binding. The Company reviews the assumptions and inputs used by third-party commercial pricing services for each reporting period in order to determine an appropriate fair value hierarchy level. The documentation and analysis obtained from third-party commercial pricing services are reviewed by the Company, including in-depth validation procedures confirming the observability of inputs. The valuations are reviewed and validated monthly through the internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes.

Fixed maturities: The fair values for actively traded marketable bonds are determined based upon the quoted market prices and are classified as Level 1 assets. Assets in this category primarily include certain U.S. Treasury securities.

For fixed maturities classified as Level 2 assets, fair values are determined using a matrix-based market approach, based on prices obtained from third-party commercial pricing services and the Company’s matrix and analytics-based pricing models, which in each case incorporate a variety of market observable information as valuation inputs. The market observable inputs used for these fair value measurements, by fixed maturity asset class, are as follows:

U.S. Treasuries: Fair value is determined using third-party commercial pricing services, with the primary inputs being stripped interest and principal U.S. Treasury yield curves that represent a U.S. Treasury zero-coupon curve.

U.S. government agencies and authorities, State, municipalities and political subdivisions: Fair value is determined using third-party commercial pricing services, with the primary inputs being U.S. Treasury yield curves, trades of comparable securities, credit spreads off benchmark yields and issuer ratings.

U.S. corporate public securities, Foreign corporate public securities and foreign governments: Fair value is determined using third-party commercial pricing services, with the primary inputs being benchmark yields, trades of comparable securities, issuer ratings, bids and credit spreads off benchmark yields.

U.S. corporate private securities and Foreign corporate private securities: Fair values are determined using a matrix and analytics-based pricing model. The model incorporates the current level of risk-free interest rates, current corporate credit spreads, credit quality of the issuer and cash flow characteristics of the security. The model also considers a liquidity spread, the value of any collateral, the capital structure of the issuer, the presence of guarantees, and prices and quotes for comparably rated publicly traded securities.

RMBS, CMBS and ABS: Fair value is determined using third-party commercial pricing services, with the primary inputs being credit spreads off benchmark yields, prepayment speed assumptions, current and forecasted loss severity, debt service coverage ratios, collateral type, payment priority within tranche and the vintage of the loans underlying the security.

Generally, the Company does not obtain more than one vendor price from pricing services per instrument. The Company uses a hierarchy process in which prices are obtained from a primary vendor and, if that vendor is unable to provide the price, the next vendor in the hierarchy is contacted until a price is obtained or it is determined that a price cannot be obtained from a commercial pricing service. When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited.  Securities priced using independent broker quotes are classified as Level 3.

Broker quotes and prices obtained from pricing services are reviewed and validated through an internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes. After review, for those instruments where the price is determined to be appropriate, the unadjusted price provided is used for financial statement valuation. If it is determined that the price is questionable, another price may be requested from a different vendor. The internal valuation committee then reviews all prices for the instrument again, along with information from the review, to determine which price best represents exit price for the instrument.

Fair values of privately placed bonds are determined primarily using a matrix-based pricing model and are generally classified as Level 2 assets.  The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. Also considered are factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company's evaluation of the borrower's ability to compete in its relevant market.  Using this data, the model generates estimated market values which the Company considers reflective of the fair value of each privately placed bond.

Equity securities: Fair values of publicly traded equity securities are based upon quoted market price and are classified as Level 1 assets. Other equity securities, typically private equities or equity securities not traded on an exchange, are valued by other sources such as analytics or brokers and are classified as Level 2 or Level 3 assets.

Derivatives: Derivatives are carried at fair value, which is determined using the Company's derivative accounting system in conjunction with observable key financial data from third party sources, such as yield curves, exchange rates, S&P 500 Index prices, London Interbank Offered Rates ("LIBOR") and Overnight Index Swap ("OIS") rates. The Company uses OIS for valuations of collateralized interest rate derivatives, which are obtained from third-party sources. For those derivatives that are unable to be valued by the accounting system, the Company typically utilizes values established by third-party brokers. Counterparty credit risk is considered and incorporated in the Company's valuation process through counterparty credit rating requirements and monitoring of overall exposure.  It is the Company's policy to transact only with investment grade counterparties with a credit rating of A- or better. The Company's nonperformance risk is also considered and incorporated in the Company's valuation process. Valuations for the Company's futures and interest rate forward contracts are based on unadjusted quoted prices from an active exchange and, therefore, are classified as Level 1. The Company also has certain credit default swaps and options that are priced by third party vendors or by using models that primarily use market observable inputs, but contain inputs that are not observable to market participants, which have been classified as Level 3. The remaining derivative instruments are valued based on market observable inputs and are classified as Level 2.

Cash and cash equivalents, Short-term investments and Short-term investments under securities loan agreement: The carrying amounts for cash reflect the assets' fair values. The fair values for cash equivalents and most short-term investments are determined based on quoted market prices. These assets are classified as Level 1. Other short-term investments are valued and classified in the fair value hierarchy consistent with the policies described herein, depending on investment type.

Assets held in separate accounts: Assets held in separate accounts are reported at the quoted fair values of the underlying investments in the separate accounts.  The underlying investments include mutual funds, short-term investments and cash, the valuations of which are based upon a quoted market price and are included in Level 1.  Fixed maturity valuations are obtained from third-party commercial pricing services and brokers and are classified in the fair value hierarchy consistent with the policy described above for fixed maturities.

Guaranteed benefit derivatives: The index-crediting feature in the Company's FIA contract is an embedded derivative that is required to be accounted for separately from the host contract. The fair value of the obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by market implied assumptions. These derivatives are classified as Level 3 liabilities in the fair value hierarchy.

The Company records reserves for Stabilizer and MCG contracts containing guaranteed credited rates. The guarantee is treated as an embedded derivative or a stand-alone derivative (depending on the underlying product) and is required to be reported at fair value. The estimated fair value is determined based on the present value of projected future claims, minus the present value of future guaranteed premiums. At inception of the contract, the Company projects a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using relevant actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by using stochastic techniques under a variety of risk neutral scenarios and other market implied assumptions. These derivatives are classified as Level 3 liabilities.

The discount rate used to determine the fair value of the embedded derivatives and stand-alone derivative includes an adjustment for nonperformance risk. The nonperformance risk adjustment incorporates a blend of observable, similarly rated peer holding company credit default swap spreads, adjusted to reflect the credit quality of the Company, the issuer of the guarantee, as well as an adjustment to reflect the priority of policyholder claims.

The Company's valuation actuaries are responsible for the policies and procedures for valuing the embedded derivatives, reflecting the capital markets and actuarial valuation inputs and nonperformance risk in the estimate of the fair value of the embedded derivatives. The actuarial and capital market assumptions for each liability are approved by each product's Chief Risk Officer ("CRO"), including an independent annual review by the CRO. Models used to value the embedded derivatives must comply with the Company's governance policies.

Quarterly, an attribution analysis is performed to quantify changes in fair value measurements and a sensitivity analysis is used to analyze the changes. The changes in fair value measurements are also compared to corresponding movements in the hedge target to assess the validity of the attributions. The results of the attribution analysis are reviewed by the valuation actuaries, responsible CFOs, Controllers, CROs and/or others as nominated by management.

Embedded derivatives on reinsurance: The carrying value of embedded derivatives is estimated based upon the change in the fair value of the assets supporting the funds withheld payable under reinsurance agreements. The fair value of the embedded derivatives is based on market observable inputs and is classified as Level 2.

Transfers in and out of Level 1 and 2

There were no securities transferred between Level 1 and Level 2 for the three months ended March 31, 2018 and 2017. The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.

Level 3 Financial Instruments

The fair values of certain assets and liabilities are determined using prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (i.e., Level 3 as defined by ASC Topic 820), including but not limited to liquidity spreads for investments within markets deemed not currently active. These valuations, whether derived internally or obtained from a third-party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. In addition, the Company has determined, for certain financial instruments, an active market is such a significant input to determine fair value that the presence of an inactive market may lead to classification in Level 3. In light of the methodologies employed to obtain the fair values of financial assets and liabilities classified as Level 3, additional information is presented below.

The following table summarizes the change in fair value of the Company’s Level 3 assets and liabilities and transfers in and out of Level 3 for the period indicated:

	Three Months Ended March 31, 2018
	Fair Value as of January 1			Total Realized/Unrealized Gains (Losses) Included in:						Purchases		Issuances			Sales			Settlements			Transfers into Level 3(3)		Transfers out of Level 3(3)			Fair Value as of March 31			Change in Unrealized Gains (Losses) Included in Earnings(4)
				Net Income			OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities	$	26		$	—		$	—		$	—	$	—		$	(11	)	$	—		$	—	$	—		$	15		$	—
U.S. Corporate private securities	642			—			(15		)	12		—			—			(2		)	14		—			651			—
Foreign corporate private securities(1)	92			(9		)	18			—		—			—			—			—		—			101			(9		)
Residential mortgage-backed securities	21			(1		)	—			58		—			—			—			—		(5		)	73			(2		)
Commercial mortgage-backed securities	7			—			—			—		—			—			—			—		(7		)	—			—
Other asset-backed securities	43			—			—			100		—			—			(1		)	—		(16		)	126			—
Total fixed maturities, including securities pledged	831			(10		)	3			170		—			(11		)	(3		)	14		(28		)	966			(11		)
Equity securities	50			(2		)	—			—		—			—			—			—		—			48			(2		)
Derivatives:
Guaranteed benefit derivatives:
Stabilizer and MCGs(2)	(97		)	21			—			—		(1		)	—			—			—		—			(77		)	—
FIA(2)	(20		)	(1		)	—			—		1			—			2			—		—			(18		)	—
Assets held in separate accounts(5)	11			—			—			—		—			—			—			—		—			11			—
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.
(4) For financial instruments still held as of March 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(5) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.

The following tables summarize the change in fair value of the Company’s Level 3 assets and liabilities and transfers in and out of Level 3 for the periods indicated:

	Three Months Ended March 31, 2017
	Fair Value as of January 1			Total Realized/Unrealized Gains (Losses) Included in:						Purchases		Issuances			Sales		Settlements			Transfers into Level 3(3)		Transfers out of Level 3(3)			Fair Value as of March 31			Change in Unrealized Gains (Losses) Included in Earnings(4)
				Net Income			OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities	$	7		$	—		$	—		$	5	$	—		$	—	$	(1	)	$	19	$	—		$	30		$	—
U.S. Corporate private securities	525			—			—			37		—			—		(1		)	4		—			565			—
Foreign corporate private securities(1)	154			—			(1		)	18		—			—		(10		)	—		—			161			—
Residential mortgage-backed securities	21			(1		)	(1		)	10		—			—		—			1		—			30			(1		)
Commercial mortgage-backed securities	10			—			—			—		—			—		(1		)	—		(3		)	6			—
Other asset-backed securities	27			—			1			10		—			—		—			—		(15		)	23			—
Total fixed maturities, including securities pledged	744			(1		)	(1		)	80		—			—		(13		)	24		(18		)	815			(1		)
Equity securities, available-for-sale	48			—			—			2		—			—		—			—		—			50			—
Derivatives:
Guaranteed benefit derivatives:
Stabilizer and MCGs(2)	(151		)	21			—			—		(1		)	—		—			—		—			(131		)	—
FIA(2)	(23		)	(1		)	—			—		—			—		1			—		—			(23		)	—
Assets held in separate accounts(5)	6			—			—			5		—			—		—			2		—			13			—
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.
(4) For financial instruments still held as of March 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(5) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.

For the three months ended March 31, 2018 and 2017, the transfers in and out of Level 3 for fixed maturities and separate accounts were due to the variation in inputs relied upon for valuation each quarter. Securities that are primarily valued using independent broker quotes when prices are not available from one of the commercial pricing services are reflected as transfers into Level 3. When securities are valued using more widely available information, the securities are transferred out of Level 3 and into Level 1 or 2, as appropriate.

Significant Unobservable Inputs

The Company's Level 3 fair value measurements of its fixed maturities, equity securities and equity and credit derivative contracts are primarily based on broker quotes for which the quantitative detail of the unobservable inputs is neither provided nor reasonably corroborated, thus negating the ability to perform a sensitivity analysis. The Company performs a review of broker quotes by performing a monthly price variance comparison and back tests broker quotes to recent trade prices.

Quantitative information about the significant unobservable inputs used in the Company's Level 3 fair value measurements of its guaranteed benefit derivatives is presented in the following sections and table.

Significant unobservable inputs used in the fair value measurements of FIAs include nonperformance risk and policyholder behavior assumptions, such as lapses and partial withdrawals. Such inputs are monitored quarterly.

The significant unobservable inputs used in the fair value measurement of the Stabilizer embedded derivatives and MCG derivative are interest rate implied volatility, nonperformance risk, lapses and policyholder deposits. Such inputs are monitored quarterly.

Following is a description of selected inputs:

Interest Rate Volatility: A term-structure model is used to approximate implied volatility for the swap rates for the Stabilizer and MCG fair value measurements. Where no implied volatility is readily available in the market, an alternative approach is applied based on historical volatility.

Nonperformance Risk: For the estimate of the fair value of embedded derivatives associated with the Company's product guarantees, the Company uses a blend of observable, similarly rated peer company credit default swap spreads, adjusted to reflect the credit quality of the Company and the priority of policyholder claims.

Actuarial Assumptions: Management regularly reviews actuarial assumptions, which are based on the Company's experience and periodically reviewed against industry standards. Industry standards and Company experience may be limited on certain products.

The following table presents the unobservable inputs for Level 3 fair value measurements as of March 31, 2018:

	Range(1)
Unobservable Input	FIA		Stabilizer / MCG
Interest rate implied volatility	—		0.1% to 6.5%
Nonperformance risk	0.07% to 1.1%		0.07% to 1.1%
Actuarial Assumptions:
Partial Withdrawals	0% to 7%		—
Lapses	0% to 42%	(2)	0% to 50%	(3)
Policyholder Deposits(4)	—		0% to 50%	(3)

⁽¹⁾ Represents the range of reasonable assumptions that management has used in its fair value calculations.

⁽²⁾ Lapse rates tend to be lower during the contractual surrender charge period and higher after the surrender charge period ends; the highest lapse rates occur in the year immediately after the end of the surrender charge period.

⁽³⁾ Stabilizer contracts with recordkeeping agreements have different range of lapse and policyholder deposit assumptions from Stabilizer (Investment only) and MCG contracts as shown below:

	Percentage of Plans		Overall Range of Lapse Rates	Range of Lapse Rates for 85% of Plans	Overall Range of Policyholder Deposits	Range of Policyholder Deposits for 85% of Plans
Stabilizer (Investment Only) and MCG Contracts	92	%	0-25%	0-15%	0-30%	0-15%
Stabilizer with Recordkeeping Agreements	8	%	0-50%	0-30%	0-50%	0-25%
Aggregate of all plans	100	%	0-50%	0-30%	0-50%	0-25%

⁽⁴⁾ Measured as a percentage of assets under management or assets under administration.

The following table presents the unobservable inputs for Level 3 fair value measurements as of December 31, 2017:

	Range(1)
Unobservable Input	FIA		Stabilizer / MCG
Interest rate implied volatility	—		0.1% to 6.3%
Nonperformance risk	0.02% to 1.1%		0.02% to 1.1%
Actuarial Assumptions:
Partial Withdrawals	0.5% to 7%		—
Lapses	0% to 42%	(2)	0% to 50%	(3)
Policyholder Deposits(4)	—		0% to 50%	(3)

⁽¹⁾ Represents the range of reasonable assumptions that management has used in its fair value calculations.

⁽²⁾ Lapse rates tend to be lower during the contractual surrender charge period and higher after the surrender charge period ends; the highest lapse rates occur in the year immediately after the end of the surrender charge period.

⁽³⁾ Stabilizer contracts with recordkeeping agreements have different range of lapse and policyholder deposit assumptions from Stabilizer (Investment only) and MCG contracts as shown below:

	Percentage of Plans		Overall Range of Lapse Rates	Range of Lapse Rates for 85% of Plans	Overall Range of Policyholder Deposits	Range of Policyholder Deposits for 85% of Plans
Stabilizer (Investment Only) and MCG Contracts	92	%	0-25%	0-15%	0-30%	0-15%
Stabilizer with Recordkeeping Agreements	8	%	0-50%	0-30%	0-50%	0-25%
Aggregate of all plans	100	%	0-50%	0-30%	0-50%	0-25%

⁽⁴⁾ Measured as a percentage of assets under management or assets under administration.

Generally, the following will cause an increase (decrease) in the FIA embedded derivative fair value liability:

• A decrease (increase) in nonperformance risk

• A decrease (increase) in lapses

Generally, the following will cause an increase (decrease) in the derivative and embedded derivative fair value liabilities related to Stabilizer and MCG contracts:

• An increase (decrease) in interest rate implied volatility

• A decrease (increase) in nonperformance risk

• A decrease (increase) in lapses

• A decrease (increase) in policyholder deposits

The Company notes the following interrelationships:

• Generally, an increase (decrease) in interest rate volatility will increase (decrease) lapses of Stabilizer and MCG contracts due to dynamic participant behavior.

Other Financial Instruments

The following disclosures are made in accordance with the requirements of ASC Topic 825 which requires disclosure of fair value information about financial instruments, whether or not recognized at fair value on the Condensed Consolidated Balance Sheets.

ASC Topic 825 excludes certain financial instruments, including insurance contracts and all nonfinancial instruments from its disclosure requirements.  Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

The carrying values and estimated fair values of the Company’s financial instruments as of the dates indicated:

	March 31, 2018						December 31, 2017
	Carrying Value			Fair Value			Carrying Value			Fair Value
Assets:
Fixed maturities, including securities pledged	$	24,678		$	24,678		$	25,042		$	25,042
Equity securities	58			58			60			60
Mortgage loans on real estate	4,891			4,885			4,910			4,924
Policy loans	212			212			214			214
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,010			1,010			1,078			1,078
Derivatives	148			148			136			136
Notes receivable from affiliate	175			215			175			222
Short-term loan to affiliate	—			—			80			80
Other Investments	22			22			—			—
Assets held in separate accounts	73,489			73,489			73,036			73,036
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities(1)	25,599			28,720			25,314			29,431
Funding agreements with fixed maturities	225			230			—			—
Supplementary contracts, immediate annuities and other	357			403			365			418
Deposit liabilities	77			122			135			198
Derivatives:
Guaranteed benefit derivatives:
FIA	18			18			20			20
Stabilizer and MCGs	77			77			97			97
Other derivatives	102			102			85			85
Long-term debt	4			4			5			5
Embedded derivatives on reinsurance	(51		)	(51		)	(21		)	(21		)

⁽¹⁾ Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Guaranteed benefit derivatives section of the table above.

The following table presents the classification of financial instruments which are not carried at fair value on the Condensed Consolidated Balance Sheets:

Financial Instrument	Classification
Mortgage loans on real estate	Level 3
Policy loans	Level 2
Notes receivable from affiliates	Level 2
Short-term loan to affiliate	Level 2
Other investments	Level 2
Funding agreements without fixed maturities and deferred annuities	Level 3
Funding agreements with fixed maturities	Level 2
Supplementary contracts, immediate annuities and other	Level 3
Deposit liabilities	Level 3
Long-term debt	Level 2

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Deferred Policy Acquisition Costs and Value of Business Acquired

3 Months Ended

Mar. 31, 2018

Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract]

Deferred Policy Acquisition Costs and Value of Business Acquired

Deferred Policy Acquisition Costs and Value of Business Acquired

The following tables present a rollforward of DAC and VOBA for the periods indicated:

	2018
	DAC			VOBA				Total
Balance as of January 1, 2018	$	385		$	367			$	752
Deferrals of commissions and expenses	15			2				17
Amortization:
Amortization, excluding unlocking	(18		)	(20		)		(38		)
Unlocking (1)	(29		)	(17		)		(46		)
Interest accrued	9			10			(2)	19
Net amortization included in the Condensed Consolidated Statements of Operations	(38		)	(27		)		(65		)
Change due to unrealized capital gains/losses on available-for-sale securities	85			108				193
Balance as of March 31, 2018	$	447		$	450			$	897

	2017
	DAC			VOBA				Total
Balance as of January 1, 2017	$	476		$	537			$	1,013
Deferrals of commissions and expenses	21			1				22
Amortization:
Amortization, excluding unlocking	(17		)	(20		)		(37		)
Unlocking (1)	1			13				14
Interest accrued	9			12			(2)	21
Net amortization included in the Condensed Consolidated Statements of Operations	(7		)	5				(2		)
Change due to unrealized capital gains/losses on available-for-sale securities	(14		)	(19		)		(33		)
Balance as of March 31, 2017	$	476		$	524			$	1,000

⁽¹⁾ DAC/VOBA unlocking includes the impacts of annual review of assumptions which typically occurs in the third quarter; and retrospective and prospective unlocking.Additionally, the 2018 amounts include unfavorable unlocking of DAC and VOBA of $43, associated with an update to assumptions related to customer consents of changes to guaranteed minimum interest rate provisions.

⁽²⁾ Interest accrued at the following rates for VOBA: 5.5% to 7.0%during 2018 and2017.

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Shareholder’s equity included the following components of AOCI as of the dates indicated:

	March 31,
	2018			2017
Fixed maturities, net of OTTI	$	786		$	997
Equity securities	—			16
Derivatives	93			185
DAC/VOBA and Sales inducements adjustment on available-for-sale securities	(240		)	(357		)
Premium deficiency reserve adjustment	(82		)	(94		)
Other	—			—
Unrealized capital gains (losses), before tax	557			747
Deferred income tax asset (liability)	(123		)	(139		)
Unrealized capital gains (losses), after tax	434			608
Pension and other postretirement benefits liability, net of tax	4			5
AOCI	$	438		$	613

Changes in AOCI, including the reclassification adjustments recognized in the Condensed Consolidated Statements of Operations were as follows for the periods indicated:

	Three Months Ended March 31, 2018
	Before-Tax Amount				Income Tax				After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	(687	)		$	153		(4)	$	(534	)
Equity securities	—			(3)	—				—
Other	(5		)		1				(4		)
OTTI	7				(1		)		6
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	14				(3		)		11
DAC/VOBA and Sales inducements	194			(1)	(41		)		153
Premium deficiency reserve adjustment	33				(7		)		26
Change in unrealized gains/losses on available-for-sale securities	(444		)		102				(342		)
Derivatives:
Derivatives	(25		)	(2)	5				(20		)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(6		)		1				(5		)
Change in unrealized gains/losses on derivatives	(31		)		6				(25		)
Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(1		)		—				(1		)
Change in pension and other postretirement benefits liability	(1		)		—				(1		)
Change in Other comprehensive income (loss)	$	(476	)		$	108			$	(368	)

⁽¹⁾ See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

⁽²⁾ See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.

⁽³⁾ Balance reclassified to Retained earnings due to adoption of ASU 2016-01.

⁽⁴⁾ Amount includes $11 valuation allowance. See the Income Taxes Note to these Condensed Consolidated Financial Statements for additional information.

	Three Months Ended March 31, 2017
	Before-Tax Amount				Income Tax			After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	113			$	(39	)	$	74
Equity securities	—				—			—
Other	—				—			—
OTTI	2				(1		)	1
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	19				(7		)	12
DAC/VOBA and Sales inducements	(33		)	(1)	12			(21		)
Premium deficiency reserve adjustment	(5		)		2			(3		)
Change in unrealized gains/losses on available-for-sale securities	96				(33		)	63
Derivatives:
Derivatives	(9		)	(2)	3			(6		)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(6		)		2			(4		)
Change in unrealized gains/losses on derivatives	(15		)		5			(10		)
Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	—				—			—
Change in pension and other postretirement benefits liability	—				—			—
Change in Other comprehensive income (loss)	$	81			$	(28	)	$	53

⁽¹⁾ See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

⁽²⁾ See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.

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Income Taxes

3 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act ("Tax Reform"). Tax Reform makes broad changes to U.S. federal tax law, including, but not limited to (1) reducing the U.S. federal corporate tax rate from 35% to 21%; (2) changing the computations of the dividends received deduction, tax reserves, and deferred acquisition costs; (3) changing how alternative minimum tax credits can be realized; and (4) eliminating the net operating loss (“NOL”) carryback and limiting the NOL carryforward deduction to 80% of taxable income for losses arising in taxable years beginning after December 31, 2017.

The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address situations where a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting under ASC Topic 740 for certain income tax effects of Tax Reform for the reporting period of enactment. SAB 118 allows the Company to provide a provisional estimate of the impacts of Tax Reform during a measurement period similar to the measurement period used when accounting for business combinations. Adjustments to provisional estimates and additional impacts from Tax Reform must be recorded as they are identified during the measurement period as provided for in SAB 118.

In reliance on SAB 118 in 2017, the Company provisionally remeasured its deferred tax assets and liabilities based on the 21% tax rate at which they are expected to reverse in the future. For the three months ended March 31, 2018, the Company adjusted its provisional estimate related to its calculation of tax reserves. The Company continues to analyze the effects of Tax Reform and will record adjustments and additional impacts from Tax Reform as they are identified during the measurement period as provided for in SAB 118.

The Company's effective tax rate for the three months ended March 31, 2018 was 22.0%. The effective tax rate differed from the statutory rate of 21% for the three months ended March 31, 2018 primarily due to the intraperiod tax allocation of the valuation allowance related to realized capital losses, partially offset by the benefit of the dividends received deduction ("DRD").

The Company's effective tax rate for the three months ended March 31, 2017 was 25.2%. The effective tax rate differed from the statutory rate of 35% for the three months ended March 31, 2017 primarily due to the effect of the DRD.

Tax Sharing Agreement

The results of the Company's operations are included in the consolidated tax return of Voya Financial, Inc. Generally, the Company's consolidated financial statements recognize the current and deferred income tax consequences that result from the Company's activities during the current and preceding periods pursuant to the provisions of Income Taxes (ASC Topic 740) as if the Company were a separate taxpayer rather than a member of Voya Financial, Inc.'s consolidated income tax return group with the exception of any net operating loss carryforwards and capital loss carryforwards, which are recorded pursuant to the tax sharing agreement. If the Company instead were to follow a separate taxpayer approach without any exceptions, there would be no impact to income tax expense (benefit) for the periods indicated above. Also, any current tax benefit related to the Company's tax attributes realized by virtue of its inclusion in the consolidated tax return of Voya Financial, Inc. would have been recorded directly to equity rather than income. Under the tax sharing agreement, Voya Financial, Inc. will pay the Company 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.

Tax Regulatory Matters

Voya Financial, Inc. (including the Company) is currently under audit by the IRS, and it is expected that the examination of tax year 2016 will be finalized within the next twelve months. Voya Financial, Inc. (including the Company) and the IRS have agreed to participate in the Compliance Assurance Process for the tax years 2016 through 2018.

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Financing Agreements

3 Months Ended

Mar. 31, 2018

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 this agreement, which became effective in June 2001 and expires on 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 incurred immaterial interest expense and earned immaterial interest income for the three months ended March 31, 2018 and 2017. As of March 31, 2018, the Company did not have an outstanding receivable/payable from/to Voya Financial, Inc. under the reciprocal loan agreement. As of December 31, 2017, the Company had an outstanding receivable of $80 and no outstanding payable.

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.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Commitments

Through the normal course of investment operations, the Company commits to either purchase or sell securities, mortgage loans, or money market instruments, at a specified future date and at a specified price or yield. The inability of counterparties to honor these commitments may result in either a higher or lower replacement cost. Also, there is likely to be a change in the value of the securities underlying the commitments. As of March 31, 2018, the Company had off-balance sheet commitments to acquire mortgage loans of $129 and purchase limited partnerships and private placement investments of $590.

Restricted Assets

The Company is required to maintain assets on deposit with various regulatory authorities to support its insurance operations. The Company may also post collateral in connection with certain securities lending, repurchase agreements, funding agreements, letter of credit ("LOC") and derivative transactions as described further in this note. The components of the fair value of the restricted assets were as follows as of the dates indicated:

	March 31, 2018		December 31, 2017
Fixed maturity collateral pledged to FHLB(1)	$	272	$	—
FHLB restricted stock(2)	23		—
Other fixed maturities-state deposits	13		13
Cash and cash equivalents	5		5
Securities pledged(3)	833		960
Total restricted assets	$	1,146	$	978

⁽¹⁾ Included in Fixed maturities, available for sale, at fair value on the Condensed Consolidated Balance Sheets.

⁽²⁾ Included in Other investments on the Condensed Consolidated Balance Sheets.

⁽³⁾ Includes the fair value of loaned securities of $646and $799 as of March 31, 2018 and December 31, 2017, respectively. In addition, as of March 31, 2018 and December 31, 2017, the Company delivered securities as collateral of $187 and $161, respectively. Loaned securities and securities delivered as collateral are included in Securities pledged on the Condensed Consolidated Balance Sheets.

Federal Home Loan Bank Funding

On January 18, 2018, the Company became a member of the Federal Home Loan Bank of Boston (“FHLB”). The Company is required to pledge collateral to back funding agreements issued to the FHLB. As of March 31, 2018, the Company had $225 in non-putable funding agreements, which are included in Future policy benefits and contract owner account balances on the Condensed Consolidated Balance Sheets. As of March 31, 2018 assets with a market value of approximately $272 collateralized the FHLB funding agreements. Assets pledged to the FHLB are included in Fixed maturities, available-for-sale, at fair value on the Condensed Consolidated Balance Sheets.

Subsequent to March 31, 2018, the Company issued an additional $275 of funding agreements to the FHLB and pledged assets as required collateral.

Litigation, Regulatory Matters and Loss Contingencies

Litigation, regulatory and other loss contingencies arise in connection with the Company's activities as a diversified financial services firm. The Company is a defendant in a number of litigation matters arising from the conduct of its business, both in the ordinary course and otherwise. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek or they may be required only to state an amount sufficient to meet a court's jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim. Litigation against the Company includes a variety of claims including negligence, breach of contract, fraud, violation of regulation or statute, breach of fiduciary duty, negligent misrepresentation, failure to supervise, elder abuse and other torts.

As with other financial services companies, the Company periodically receives informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. It is the practice of the Company to cooperate fully in these matters. Regulatory investigations, exams, inquiries and audits could result in regulatory action against the Company. The potential outcome of such action is difficult to predict but could subject the Company to adverse consequences, including, but not limited to, settlement payments, additional payments to beneficiaries, and additional escheatment of funds deemed abandoned under state laws. They may also result in fines and penalties and changes to the Company's procedures for the identification and escheatment of abandoned property or the correction of processing errors and other financial liability.

The outcome of a litigation or regulatory matter is difficult to predict and the amount or range of potential losses associated with these or other loss contingencies, requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation, and other loss contingencies. While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company's financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company's litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company's results of operations or cash flows in a particular quarterly or annual period.

For some matters, the Company is able to estimate a possible range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company, however, believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of March 31, 2018, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, is not material to the Company.

For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company's accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews.

Litigation includes Dezelan v. Voya Retirement Insurance and Annuity Company (USDC District of Connecticut, No. 3:16-cv-1251)(filed July 26, 2016), a putative class action in which plaintiff, a participant in a 403(b) Plan, seeks to represent a class of plans whose assets are invested in VRIAC “Group Annuity Contract Stable Value Funds.”  Plaintiff alleges that VRIAC has violated the Employee Retirement Income Security Act of 1974 by charging unreasonable fees and setting its own compensation in connection with stable value products.  Plaintiff seeks declaratory and injunctive relief, disgorgement of profits, damages and attorney’s fees. The Company denies the allegations, which it believes are without merit, and intends to defend the case vigorously. On July 19, 2017, the district court granted the Company's motion to dismiss, but permitted the plaintiff to file an amended complaint. The plaintiff has filed a first amended complaint, and the Company has moved to dismiss that complaint.

Litigation also includes Goetz v. Voya Financial and Voya Retirement Insurance and Annuity Company (USDC District of Delaware, No. 1:17-cv-1289) (filed September 8, 2017), a putative class action in which plaintiff, a participant in a 401(k) plan, seeks to represent other participants in the plan as well as a class of similarly situated plans that “contract with [Voya] for recordkeeping and other services.” Plaintiff alleges that “Voya” breached its fiduciary duty to the plan and other plan participants by charging unreasonable and excessive recordkeeping fees, and that “Voya” distributed materially false and misleading 404a-5 administrative and fund fee disclosures to conceal its excessive fees. The Company denies the allegations, which it believes are without merit, and intends to defend the case vigorously. Plaintiff filed an amended complaint on January 4, 2018, and the Company filed a motion to dismiss the amended complaint of February 8, 2018.

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Related Party Transactions

3 Months Ended

Mar. 31, 2018

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Operating Agreements

Prior to May 1, 2017, DSL was the investment adviser to certain U.S. registered investment companies that are investment options under certain of the Company’s variable insurance products. Consequently, DSL was party to various intercompany management and revenue sharing agreements, whereby DSL earned revenues and incurred expenses associated with these intercompany agreements. Effective May 1, 2017, Voya Investments, LLC, ("VIL") an affiliate, was appointed as investment adviser to these U.S. registered investment companies and DSL no longer provides these advisory and certain other related services to its affiliates. While this change has an impact on the Company’s and DSL’s total revenues and total expenses, the net impact on the Company’s Net income (loss) is expected to be insignificant.

For the three months ended March 31, 2018 and 2017, revenues with affiliated entities related to the operating agreements disclosed in the Related Party Transactions Note in the Consolidated Financial Statements in Part II, Item 8. in the Company's Annual Report on Form 10-K and reflecting changes to certain of these operating agreements described above were $86 and $148, respectively. For the three months ended March 31, 2018 and 2017, expenses with affiliated entities related to the aforementioned operating agreements, as amended, were $210 and $201, respectively.

Reinsurance Agreements

Effective January 1, 2018, the Company recaptured its coinsurance agreement with Langhorne I, LLC (“Langhorne”) to manage the reserve and capital requirements in connection with a portion of its Stabilizer and Managed Custody Guarantee, which resulted in the Company recording a $74 pre-tax gain on recapture of reinsured business that was reported in Operating expenses in the Condensed Consolidated Statement of Operations. This agreement was accounted for under the deposit method.

As of March 31, 2018 and December 31, 2017, the Company had deposit assets of $37 and $63, respectively, and deposit liabilities of $77 and $135, respectively. Deposit assets and liabilities are included in Other assets and Other liabilities, respectively, on the Condensed Consolidated Balance Sheets. For further information, see the Related Party Transactions Note in the Consolidated Financial Statements in Part II, Item 8. in the Company's Annual Report on Form 10-K.

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Business, Basis of Presentation and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and are unaudited. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates.

The Condensed Consolidated Financial Statements include the accounts of VRIAC and its wholly owned subsidiaries, Voya Financial Partners, LLC ("VFP") and Directed Services LLC ("DSL"). Intercompany transactions and balances have been eliminated.

The accompanying Condensed Consolidated Financial Statements reflect adjustments (including normal, recurring adjustments) necessary to present fairly the financial position of the Company as of March 31, 2018, its results of operations, comprehensive income, changes in shareholder's equity and statements of cash flows for the three months ended March 31, 2018 and 2017, in conformity with U.S. GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2017 Consolidated Balance Sheet is from the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K, filed with the SEC. Therefore, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K.

Adoption of New Pronouncements

Adoption of New Pronouncements

Derecognition of Nonfinancial Assets

In February 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-05, “Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (ASC Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance & Accounting for Partial Sales of Nonfinancial Assets” (“ASU 2017-05”), which requires entities to apply certain recognition and measurement principles in ASU 2014-09, “Revenue from Contracts with Customers (ASC Topic 606)” (see Revenue from Contracts with Customers below) when they derecognize nonfinancial assets and in substance nonfinancial assets through sale or transfer, and the counterparty is not a customer.

The provisions of ASU 2017-05 were adopted January 1, 2018 using the modified retrospective approach. The adoption had no effect on the Company’s financial condition, results of operations, or cash flows.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (ASC Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), which addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  The amendments provide guidance on eight specific cash flow issues.

The provisions of ASU 2016-15 were adopted on January 1, 2018 using the retrospective approach. The adoption had no effect on the Company’s financial condition, results of operations, or cash flows.

Share-Based Compensation

In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (ASC Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), which simplifies the accounting for share-based payment award transactions with respect to:

• The income tax consequences of awards,

• The impact of forfeitures on the recognition of expense for awards,

• Classification of awards as either equity or liabilities, and

• Classification on the statement of cash flows.

The provisions of ASU 2016-09 were adopted by the Company on January 1, 2017 using the transition method prescribed for each applicable provision:

• On a prospective basis, all excess tax benefits and tax deficiencies related to share-based compensation will be reported in Net income (loss), rather than Additional paid-in capital.  Prior year excess tax benefits will remain in Additional paid-in capital. 

• The Company elected to retrospectively adopt the requirement to present cash inflows related to excess tax benefits as operating activities. For the three months ended March 31, 2017, the Company had no excess tax benefits. 

The adoption of the remaining provisions of ASU 2016-09 had no effect on the Company's financial condition, results of operations, or cash flows.

Financial Instruments - Recognition and Measurement

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments-Overall (ASC Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which requires:

• Equity investments (except those consolidated or accounted for under the equity method) to be measured at fair value with changes in fair value recognized in net income.

• Elimination of the disclosure of methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost.

• The use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes.

• Separate presentation in other comprehensive income of the portion of the total change in fair value of a liability resulting from a change in own credit risk if the liability is measured at fair value under the fair value option.

• Separate presentation on the balance sheet or financial statement notes of financial assets and financial liabilities by measurement category and form of financial asset.

The Company adopted the provisions of ASU 2016-01 on January 1, 2018 using a modified retrospective approach, except for certain provisions that are required to be applied prospectively. The impact to the January 1, 2018 Condensed Consolidated Balance Sheets was a $12 increase, net of tax, to Retained earnings (deficit) with a corresponding decrease of $12, net of tax, to AOCI to recognize the unrealized gain associated with Equity securities. The provisions that required prospective adoption had no effect on the Company's financial condition, results of operations, or cash flows. Under previous guidance, prior to January 1, 2018, Equity securities were classified as available for sale with changes in fair value recognized in Other comprehensive income (loss).

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Revenue is recognized when, or as, the entity satisfies a performance obligation under the contract. ASU 2014-09 also updated the accounting for certain costs associated with obtaining and fulfilling contracts with customers and requires disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In addition, the FASB issued various amendments during 2016 to clarify the provisions and implementation guidance of ASU 2014-09. Revenue recognition for insurance contracts and financial instruments is explicitly scoped out of the guidance.

The Company adopted the provisions of ASU 2014-09 on January 1, 2018, using the modified retrospective approach. The adoption had no impact on revenue recognition. However, the adoption resulted in a $90 increase in Other assets to capitalize costs to obtain and fulfill certain financial services contracts. This adjustment was offset by a related $18 decrease in Deferred income taxes, resulting in a net $72 increase to Retained earnings (deficit) on the Condensed Consolidated Balance Sheet as of January 1, 2018. In addition, disclosures have been updated to reflect accounting policy changes made as a result of the implementation of ASU 2014-09. (See the Significant Accounting Policies section above.)

Comparative information has not been adjusted and continues to be reported under previous revenue recognition guidance. The following tables summarize the impacts of adopting the provisions of ASU 2014-09 for the three months ended March 31, 2018. For the three months ended March 31, 2018, adopting the provisions of ASU 2014-09 had no impact on Net cash provided by operating activities.

Condensed Consolidated Balance Sheet
March 31, 2018
	As reported		Adjustments			Balance without adoption of ASU 2014-09
Assets
Other assets	$	173	$	(91	)	$	82
Total assets	$	108,106	$	(91	)	$	108,015
Liabilities and Shareholder's Equity
Deferred income taxes	$	117	$	(19	)	$	98
Total liabilities	104,734		(19		)	104,715
Shareholder's equity:
Retained earnings (deficit)	201		(72		)	129
Total shareholder's equity	3,372		(72		)	3,300
Total liabilities and shareholder's equity	$	108,106	$	(91	)	$	108,015

Condensed Consolidated Statement of Operations
For the Three Months Ended March 31, 2018
	As reported		Adjustments				Balance without adoption of ASU 2014-09
Benefits and expenses:
Operating expenses	$	108	$	1			$	109
Total benefits and expenses	412		1				413
Income (loss) before income taxes	112		(1		)		111
Income tax expense (benefit)	25		—			*	25
Net income (loss)	$	87	$	(1	)		$	86

*Less than $1.

Future Adoption of Accounting Pronouncements

Reclassification of Certain Tax Effects

In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (ASC Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted Tax Cuts and Jobs Act of 2017 ("Tax Reform"). Stranded tax effects arise because U.S. GAAP requires that the impact of a change in tax laws or rates on deferred tax liabilities and assets be reported in net income, even if related to items recognized within accumulated other comprehensive income. The amount of the reclassification would be based on the difference between the historical corporate income tax rate and the newly enacted 21% corporate income tax rate, applied to deferred tax liabilities and assets reported within accumulated other comprehensive income.

The provisions of ASU 2018-02 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Initial adoption of ASU 2018-02 may be reported either in the period of adoption or on a retrospective basis in each period in which the effect of the change in the U.S. federal corporate income tax rate resulting from Tax Reform is recognized. The Company is currently evaluating the provisions of ASU 2018-02.

Derivatives & Hedging

In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic ASC 815): Targeted Improvements to Accounting for Hedging Activities " ("ASU 2017-12"), which enables entities to better portray risk management activities in their financial statements, as follows:

• Expands an entity's ability to hedge nonfinancial and financial risk components and reduces complexity in accounting for fair value hedges of interest rate risk,

• Eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item,

• Eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness, and

• Modifies required disclosures.

The provisions of ASU 2017-12 are effective for fiscal years beginning after December 15, 2018, including interim periods, with early adoption permitted. Initial adoption of ASU 2017-12 is required to be reported using a modified retrospective approach, with the exception of the presentation and disclosure requirements which are required to be applied prospectively. The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2017-12.

Debt Securities

In March 2017, the FASB issued ASU 2017-08, "Receivables-Nonrefundable Fees and Other Costs (ASC Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities" ("ASU 2017-08"), which shortens the amortization period for certain callable debt securities held at a premium by requiring the premium to be amortized to the earliest call date.

The provisions of ASU 2017-08 are effective for fiscal years beginning after December 15, 2018, including interim periods, with early adoption permitted. Initial adoption of ASU 2017-08 is required to be reported using a modified retrospective approach. The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2017-08.

Financial Instruments - Credit Losses

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which:

• Introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments,

• Modifies the impairment model for available-for-sale debt securities, and

• Provides a simplified accounting model for purchased financial assets with credit deterioration since their origination.

The provisions of ASU 2016-13 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted for fiscal years beginning after December 15, 2018. Initial adoption of ASU 2016-13 is required to be reported on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, except for certain provisions that are required to be applied prospectively. The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2016-13.

Investments

The Company's securities lending activities are conducted on an overnight basis, and all securities loaned can be recalled at any time. The Company does not offset assets and liabilities associated with its securities lending program.

Variable Interest Entities ("VIEs")

The Company holds certain VIEs for investment purposes. VIEs may be in the form of private placement securities, structured securities, securitization transactions or limited partnerships. The Company has reviewed each of its holdings and determined that consolidation of these investments in the Company’s financial statements is not required, as the Company is not the primary beneficiary, because the Company does not have both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation or right to potentially significant losses or benefits, for any of its investments in VIEs. The Company did not provide any non-contractual financial support and its carrying value represents the Company’s exposure to loss. The carrying value of the investments in VIEs was $425 and $411 as of March 31, 2018 and December 31, 2017, respectively; these investments are included in Limited partnerships/corporations on the Condensed Consolidated Balance Sheets. Income and losses recognized on these investments are reported in Net investment income in the Condensed Consolidated Statements of Operations.

Securitizations

The Company invests in various tranches of securitization entities, including Residential mortgage-backed securities ("RMBS"), Commercial mortgage-backed securities ("CMBS") and ABS. Through its investments, the Company is not obligated to provide any financial or other support to these entities. Each of the RMBS, CMBS and ABS entities are thinly capitalized by design and considered VIEs. The Company's involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer or investment manager, which are generally viewed to have the power to direct the activities that most significantly impact the securitization entities' economic performance, in any of these entities, nor does the Company function in any of these roles. The Company, through its investments or other arrangements, does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity. Therefore, the Company is not the primary beneficiary and does not consolidate any of the RMBS, CMBS and ABS entities in which it holds investments. These investments are accounted for as investments available-for-sale as described in the Fair Value Measurements Note to these Condensed Consolidated Financial Statements and unrealized capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS that are accounted for under the FVO, for which changes in fair value are reflected in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. The Company’s maximum exposure to loss on these structured investments is limited to the amount of its investment.

Fixed Maturities and Equity Securities:

The Company's fixed maturities are currently designated as available-for-sale, except those accounted for using the FVO. Prior to the adoption of ASU 2016-01 as of January 1, 2018, equity securities were also designated as available-for-sale. Available-for-sale securities are reported at fair value and unrealized capital gains (losses) on these securities are recorded directly in AOCI and presented net of related changes in Deferred policy acquisition costs ("DAC"), Value of business acquired ("VOBA") and Deferred income taxes. In addition, certain fixed maturities have embedded derivatives, which are reported with the host contract on the Condensed Consolidated Balance Sheets.

The Company has elected the FVO for certain of its fixed maturities to better match the measurement of assets and liabilities in the Condensed Consolidated Statements of Operations. Certain collateralized mortgage obligations ("CMOs"), primarily interest-only and principal-only strips, are accounted for as hybrid instruments and reported at fair value with changes in the fair value recorded in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

The Company invests in various categories of CMOs, including CMOs that are not agency-backed, that are subject to different degrees of risk from changes in interest rates and defaults. The principal risks inherent in holding CMOs are prepayment and extension risks related to significant decreases and increases in interest rates resulting in the prepayment of principal from the underlying mortgages, either earlier or later than originally anticipated. As of March 31, 2018 and December 31, 2017, approximately 50.5% and 52.1%, respectively, of the Company’s CMO holdings, were invested in the above mentioned types of CMOs such as interest-only or principal-only strips, that are subject to more prepayment and extension risk than traditional CMOs.

Public corporate fixed maturity securities are distinguished from private corporate fixed maturity securities based upon the manner in which they are transacted. Public corporate fixed maturity securities are issued initially through market intermediaries on a registered basis or pursuant to Rule 144A under the Securities Act of 1933 (the "Securities Act") and are traded on the secondary market through brokers acting as principal. Private corporate fixed maturity securities are originally issued by borrowers directly to investors pursuant to Section 4(a)(2) of the Securities Act, and are traded in the secondary market directly with counterparties, either without the participation of a broker or in agency transactions.

Repurchase Agreements

As of March 31, 2018 and December 31, 2017, the Company did not have any securities pledged in dollar rolls, repurchase agreement transactions or reverse repurchase agreements.

Securities Lending

The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions, through a lending agent, for short periods of time. The Company has the right to approve any institution with whom the lending agent transacts on its behalf. Initial collateral is required at a rate of 102% of the market value of the loaned securities. The lending agent retains the collateral and invests it in high quality liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. The lending agent indemnifies the Company against losses resulting from the failure of a counterparty to return securities pledged where collateral is insufficient to cover the loss. As of March 31, 2018 and December 31, 2017, the fair value of loaned securities was $646 and $799, respectively, and is included in Securities pledged on the Condensed Consolidated Balance Sheets.

If cash is received as collateral, the lending agent retains the cash collateral and invests it in short-term liquid assets on behalf of the Company. As of March 31, 2018 and December 31, 2017, cash collateral retained by the lending agent and invested in short-term liquid assets on the Company's behalf was $581 and $744, respectively, and is recorded in Short-term investments under securities loan agreements, including collateral delivered on the Condensed Consolidated Balance Sheets. As of March 31, 2018 and December 31, 2017, liabilities to return collateral of $581 and $744, respectively, are included in Payables under securities loan agreements, including collateral held, on the Condensed Consolidated Balance Sheets.

Derivatives

Based on the notional amounts, a substantial portion of the Company’s derivative positions was not designated or did not qualify for hedge accounting as part of a hedging relationship as of March 31, 2018 and December 31, 2017. The Company utilizes derivative contracts mainly to hedge exposure to variability in cash flows, interest rate risk, credit risk, foreign exchange risk and equity market risk. The majority of derivatives used by the Company are designated as product hedges, which hedge the exposure arising from insurance liabilities or guarantees embedded in the contracts the Company offers through various product lines. These derivatives do not qualify for hedge accounting as they do not meet the criteria of being "highly effective" as outlined in ASC Topic 815, but do provide an economic hedge, which is in line with the Company’s risk management objectives. The Company also uses derivatives contracts to hedge its exposure to various risks associated with the investment portfolio. The Company does not seek hedge accounting treatment for certain of these derivatives as they generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules outlined in ASC Topic 815. The Company also uses credit default swaps coupled with other investments in order to produce the investment characteristics of otherwise permissible investments that do not qualify as effective accounting hedges under ASC Topic 815.

Derivative Financial Instruments

The Company enters into the following types of derivatives:

Interest rate caps: The Company uses interest rate cap contracts to hedge the interest rate exposure arising from duration mismatches between assets and liabilities. Interest rate caps are also used to hedge interest rate exposure if rates rise above a specified level. Such increases in rates will require the Company to incur additional expenses. The future payout from the interest rate caps fund this increased exposure. The Company pays an upfront premium to purchase these caps. The Company utilizes these contracts in non-qualifying hedging relationships.

Interest rate swaps: Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Credit default swaps: Credit default swaps are used to reduce credit loss exposure with respect to certain assets that the Company owns, or to assume credit exposure on certain assets that the Company does not own. Payments are made to, or received from, the counterparty at specified intervals. In the event of a default on the underlying credit exposure, the Company will either receive a payment (purchased credit protection) or will be required to make a payment (sold credit protection) equal to the par minus recovery value of the swap contract. The Company utilizes these contracts in non-qualifying hedging relationships.

Currency forwards: The Company utilizes currency forward contracts to hedge currency exposure related to invested assets. The Company utilizes these contracts in non-qualifying hedging relationships.

Futures: Futures contracts are used to hedge against a decrease in certain equity indices. Such decreases may correlate to a decrease in variable annuity account values which would increase the possibility of the Company incurring an expense for guaranteed benefits in excess of account values. The Company also uses interest rate futures contracts to hedge its exposure to market risks due to changes in interest rates. The Company enters into exchange traded futures with regulated futures commissions that are members of the exchange. The Company also posts initial and variation margins, with the exchange, on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships. The Company may also use futures contracts as a hedge against an increase in certain equity indices. Such increases may result in increased payments to the holders of fixed index annuity ("FIA") contracts.

Swaptions: A swaption is an option to enter into a swap with a forward starting effective date. The Company uses swaptions to hedge the interest rate exposure associated with the minimum crediting rate and book value guarantees embedded in the retirement products that the Company offers. Increases in interest rates will generate losses on assets that are backing such liabilities. In certain instances, the Company locks in the economic impact of existing purchased swaptions by entering into offsetting written swaptions. The Company pays a premium when it purchases the swaption. The Company utilizes these contracts in non-qualifying hedging relationships.

Options: The Company uses equity options to hedge against an increase in various equity indices. Such increases may result in increased payments to the holders of the FIA contracts. The Company pays an upfront premium to purchase these options. The Company utilizes these options in non-qualifying hedging relationships.

Managed custody guarantees ("MCGs"): The Company issues certain credited rate guarantees on variable fixed income portfolios that represent stand-alone derivatives. The market value is partially determined by, among other things, levels of or changes in interest rates, prepayment rates and credit ratings/spreads.

Embedded derivatives: The Company also invests in certain fixed maturity instruments and has issued certain products that contain embedded derivatives for which market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates, or credit ratings/spreads. In addition, the Company has entered into coinsurance with funds withheld arrangements, which contain embedded derivatives.

The Company's use of derivatives is limited mainly to economic hedging to reduce the Company's exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and equity market risk. It is the Company's policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement, which provides the Company with the legal right of offset. However, in accordance with the Chicago Mercantile Exchange ("CME") rule changes related to the variation margin payments, effective the first quarter of 2017, the Company is required to adjust the derivative balances with the variation margin payments related to our cleared derivatives executed through CME.

Fair Value Measurement

Valuation of Financial Assets and Liabilities at Fair Value

Certain assets and liabilities are measured at estimated fair value on the Company's Condensed Consolidated Balance Sheets. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The exit price and the transaction (or entry) price will be the same at initial recognition in many circumstances. However, in certain cases, the transaction price may not represent fair value. The fair value of a liability is based on the amount that would be paid to transfer a liability to a third-party with an equal credit standing. Fair value is required to be a market-based measurement that is determined based on a hypothetical transaction at the measurement date, from a market participant's perspective. The Company considers three broad valuation approaches when a quoted price is unavailable: (i) the market approach, (ii) the income approach and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given the instrument being measured and the availability of sufficient inputs. The Company prioritizes the inputs to fair valuation approaches and allows for the use of unobservable inputs to the extent that observable inputs are not available.

The Company utilizes a number of valuation methodologies to determine the fair values of its financial assets and liabilities in conformity with the concepts of exit price and the fair value hierarchy as prescribed in ASC Topic 820. Valuations are obtained from third-party commercial pricing services, brokers and industry-standard, vendor-provided software that models the value based on market observable inputs. The valuations obtained from third-party commercial pricing services are non-binding. The Company reviews the assumptions and inputs used by third-party commercial pricing services for each reporting period in order to determine an appropriate fair value hierarchy level. The documentation and analysis obtained from third-party commercial pricing services are reviewed by the Company, including in-depth validation procedures confirming the observability of inputs. The valuations are reviewed and validated monthly through the internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes.

Fixed maturities: The fair values for actively traded marketable bonds are determined based upon the quoted market prices and are classified as Level 1 assets. Assets in this category primarily include certain U.S. Treasury securities.

For fixed maturities classified as Level 2 assets, fair values are determined using a matrix-based market approach, based on prices obtained from third-party commercial pricing services and the Company’s matrix and analytics-based pricing models, which in each case incorporate a variety of market observable information as valuation inputs. The market observable inputs used for these fair value measurements, by fixed maturity asset class, are as follows:

U.S. Treasuries: Fair value is determined using third-party commercial pricing services, with the primary inputs being stripped interest and principal U.S. Treasury yield curves that represent a U.S. Treasury zero-coupon curve.

U.S. government agencies and authorities, State, municipalities and political subdivisions: Fair value is determined using third-party commercial pricing services, with the primary inputs being U.S. Treasury yield curves, trades of comparable securities, credit spreads off benchmark yields and issuer ratings.

U.S. corporate public securities, Foreign corporate public securities and foreign governments: Fair value is determined using third-party commercial pricing services, with the primary inputs being benchmark yields, trades of comparable securities, issuer ratings, bids and credit spreads off benchmark yields.

U.S. corporate private securities and Foreign corporate private securities: Fair values are determined using a matrix and analytics-based pricing model. The model incorporates the current level of risk-free interest rates, current corporate credit spreads, credit quality of the issuer and cash flow characteristics of the security. The model also considers a liquidity spread, the value of any collateral, the capital structure of the issuer, the presence of guarantees, and prices and quotes for comparably rated publicly traded securities.

RMBS, CMBS and ABS: Fair value is determined using third-party commercial pricing services, with the primary inputs being credit spreads off benchmark yields, prepayment speed assumptions, current and forecasted loss severity, debt service coverage ratios, collateral type, payment priority within tranche and the vintage of the loans underlying the security.

Generally, the Company does not obtain more than one vendor price from pricing services per instrument. The Company uses a hierarchy process in which prices are obtained from a primary vendor and, if that vendor is unable to provide the price, the next vendor in the hierarchy is contacted until a price is obtained or it is determined that a price cannot be obtained from a commercial pricing service. When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited.  Securities priced using independent broker quotes are classified as Level 3.

Broker quotes and prices obtained from pricing services are reviewed and validated through an internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes. After review, for those instruments where the price is determined to be appropriate, the unadjusted price provided is used for financial statement valuation. If it is determined that the price is questionable, another price may be requested from a different vendor. The internal valuation committee then reviews all prices for the instrument again, along with information from the review, to determine which price best represents exit price for the instrument.

Fair values of privately placed bonds are determined primarily using a matrix-based pricing model and are generally classified as Level 2 assets.  The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. Also considered are factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company's evaluation of the borrower's ability to compete in its relevant market.  Using this data, the model generates estimated market values which the Company considers reflective of the fair value of each privately placed bond.

Equity securities: Fair values of publicly traded equity securities are based upon quoted market price and are classified as Level 1 assets. Other equity securities, typically private equities or equity securities not traded on an exchange, are valued by other sources such as analytics or brokers and are classified as Level 2 or Level 3 assets.

Derivatives: Derivatives are carried at fair value, which is determined using the Company's derivative accounting system in conjunction with observable key financial data from third party sources, such as yield curves, exchange rates, S&P 500 Index prices, London Interbank Offered Rates ("LIBOR") and Overnight Index Swap ("OIS") rates. The Company uses OIS for valuations of collateralized interest rate derivatives, which are obtained from third-party sources. For those derivatives that are unable to be valued by the accounting system, the Company typically utilizes values established by third-party brokers. Counterparty credit risk is considered and incorporated in the Company's valuation process through counterparty credit rating requirements and monitoring of overall exposure.  It is the Company's policy to transact only with investment grade counterparties with a credit rating of A- or better. The Company's nonperformance risk is also considered and incorporated in the Company's valuation process. Valuations for the Company's futures and interest rate forward contracts are based on unadjusted quoted prices from an active exchange and, therefore, are classified as Level 1. The Company also has certain credit default swaps and options that are priced by third party vendors or by using models that primarily use market observable inputs, but contain inputs that are not observable to market participants, which have been classified as Level 3. The remaining derivative instruments are valued based on market observable inputs and are classified as Level 2.

Cash and cash equivalents, Short-term investments and Short-term investments under securities loan agreement: The carrying amounts for cash reflect the assets' fair values. The fair values for cash equivalents and most short-term investments are determined based on quoted market prices. These assets are classified as Level 1. Other short-term investments are valued and classified in the fair value hierarchy consistent with the policies described herein, depending on investment type.

Assets held in separate accounts: Assets held in separate accounts are reported at the quoted fair values of the underlying investments in the separate accounts.  The underlying investments include mutual funds, short-term investments and cash, the valuations of which are based upon a quoted market price and are included in Level 1.  Fixed maturity valuations are obtained from third-party commercial pricing services and brokers and are classified in the fair value hierarchy consistent with the policy described above for fixed maturities.

Guaranteed benefit derivatives: The index-crediting feature in the Company's FIA contract is an embedded derivative that is required to be accounted for separately from the host contract. The fair value of the obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by market implied assumptions. These derivatives are classified as Level 3 liabilities in the fair value hierarchy.

The Company records reserves for Stabilizer and MCG contracts containing guaranteed credited rates. The guarantee is treated as an embedded derivative or a stand-alone derivative (depending on the underlying product) and is required to be reported at fair value. The estimated fair value is determined based on the present value of projected future claims, minus the present value of future guaranteed premiums. At inception of the contract, the Company projects a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using relevant actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by using stochastic techniques under a variety of risk neutral scenarios and other market implied assumptions. These derivatives are classified as Level 3 liabilities.

The discount rate used to determine the fair value of the embedded derivatives and stand-alone derivative includes an adjustment for nonperformance risk. The nonperformance risk adjustment incorporates a blend of observable, similarly rated peer holding company credit default swap spreads, adjusted to reflect the credit quality of the Company, the issuer of the guarantee, as well as an adjustment to reflect the priority of policyholder claims.

The Company's valuation actuaries are responsible for the policies and procedures for valuing the embedded derivatives, reflecting the capital markets and actuarial valuation inputs and nonperformance risk in the estimate of the fair value of the embedded derivatives. The actuarial and capital market assumptions for each liability are approved by each product's Chief Risk Officer ("CRO"), including an independent annual review by the CRO. Models used to value the embedded derivatives must comply with the Company's governance policies.

Quarterly, an attribution analysis is performed to quantify changes in fair value measurements and a sensitivity analysis is used to analyze the changes. The changes in fair value measurements are also compared to corresponding movements in the hedge target to assess the validity of the attributions. The results of the attribution analysis are reviewed by the valuation actuaries, responsible CFOs, Controllers, CROs and/or others as nominated by management.

Embedded derivatives on reinsurance: The carrying value of embedded derivatives is estimated based upon the change in the fair value of the assets supporting the funds withheld payable under reinsurance agreements. The fair value of the embedded derivatives is based on market observable inputs and is classified as Level 2.

Transfers in and out of Level 1 and 2

There were no securities transferred between Level 1 and Level 2 for the three months ended March 31, 2018 and 2017. The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.

Level 3 Financial Instruments

The fair values of certain assets and liabilities are determined using prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (i.e., Level 3 as defined by ASC Topic 820), including but not limited to liquidity spreads for investments within markets deemed not currently active. These valuations, whether derived internally or obtained from a third-party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. In addition, the Company has determined, for certain financial instruments, an active market is such a significant input to determine fair value that the presence of an inactive market may lead to classification in Level 3. In light of the methodologies employed to obtain the fair values of financial assets and liabilities classified as Level 3, additional information is presented below.

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Business, Basis of Presentation and Significant Accounting Policies Business, Basis of Presentation and Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Prospective Adoption of New Accounting Pronouncements

Comparative information has not been adjusted and continues to be reported under previous revenue recognition guidance. The following tables summarize the impacts of adopting the provisions of ASU 2014-09 for the three months ended March 31, 2018. For the three months ended March 31, 2018, adopting the provisions of ASU 2014-09 had no impact on Net cash provided by operating activities.

Condensed Consolidated Balance Sheet
March 31, 2018
	As reported		Adjustments			Balance without adoption of ASU 2014-09
Assets
Other assets	$	173	$	(91	)	$	82
Total assets	$	108,106	$	(91	)	$	108,015
Liabilities and Shareholder's Equity
Deferred income taxes	$	117	$	(19	)	$	98
Total liabilities	104,734		(19		)	104,715
Shareholder's equity:
Retained earnings (deficit)	201		(72		)	129
Total shareholder's equity	3,372		(72		)	3,300
Total liabilities and shareholder's equity	$	108,106	$	(91	)	$	108,015

Condensed Consolidated Statement of Operations
For the Three Months Ended March 31, 2018
	As reported		Adjustments				Balance without adoption of ASU 2014-09
Benefits and expenses:
Operating expenses	$	108	$	1			$	109
Total benefits and expenses	412		1				413
Income (loss) before income taxes	112		(1		)		111
Income tax expense (benefit)	25		—			*	25
Net income (loss)	$	87	$	(1	)		$	86

*Less than $1.

Disaggregation of Revenue

Financial services revenue is disaggregated by type of service in the following table and represents approximately 13.7% of total revenue. For the three months ended March 31, 2018, a portion of the revenue recognized in the current period from distribution services is related to performance obligations satisfied in previous periods.

	Three Months Ended March 31, 2018
Service Line
Recordkeeping & administration	$	28
Distribution & shareholder servicing	44
Total financial services revenue	$	72

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Investments (Tables)

3 Months Ended

Mar. 31, 2018

Available-for-sale Securities Including Securities Pledged [Line Items]

Marketable Securities

Available-for-sale and fair value option ("FVO") fixed maturities were as follows as of March 31, 2018:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		OTTI(3)(4)
Fixed maturities:
U.S. Treasuries	$	463	$	90	$	1	$	—	$	552	$	—
U.S. Government agencies and authorities	—		—		—		—		—		—
State, municipalities and political subdivisions	841		26		8		—		859		—
U.S. corporate public securities	8,342		523		73		—		8,792		—
U.S. corporate private securities	3,387		86		78		—		3,395		—
Foreign corporate public securities and foreign governments(1)	2,601		126		31		—		2,696		—
Foreign corporate private securities(1)	3,223		101		48		—		3,276		—
Residential mortgage-backed securities:
Agency	1,876		54		32		5		1,903		—
Non-Agency	740		51		4		5		792		4
Total Residential mortgage-backed securities	2,616		105		36		10		2,695		4
Commercial mortgage-backed securities	1,570		18		21		—		1,567		—
Other asset-backed securities	839		9		2		—		846		1
Total fixed maturities, including securities pledged	23,882		1,084		298		10		24,678		5
Less: Securities pledged	776		66		9		—		833		—
Total fixed maturities	$	23,106	$	1,018	$	289	$	10	$	23,845	$	5

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾ Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

⁽³⁾ Represents Other-than-Temporary-Impairments ("OTTI") reported as a component of Other comprehensive income (loss).

⁽⁴⁾ Amount excludes $160 of net unrealized gains on impaired available-for-sale securities.

Available-for-sale and FVO fixed maturities and equity securities were as follows as of December 31, 2017:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		OTTI(3)(4)
Fixed maturities:
U.S. Treasuries	$	547	$	109	$	—	$	—	$	656	$	—
U.S. Government agencies and authorities	3		—		—		—		3		—
State, municipalities and political subdivisions	842		40		4		—		878		—
U.S. corporate public securities	8,476		786		26		—		9,236		—
U.S. corporate private securities	3,387		148		38		—		3,497		—
Foreign corporate public securities and foreign governments(1)	2,594		192		9		—		2,777		—
Foreign corporate private securities(1)	3,105		155		45		—		3,215		7
Residential mortgage-backed securities:
Agency	1,878		65		17		6		1,932		—
Non-Agency	639		54		2		6		697		4
Total Residential mortgage-backed securities	2,517		119		19		12		2,629		4
Commercial mortgage-backed securities	1,437		39		6		—		1,470		—
Other asset-backed securities	671		11		1		—		681		2
Total fixed maturities, including securities pledged	23,579		1,599		148		12		25,042		13
Less: Securities pledged	864		104		8		—		960		—
Total fixed maturities	22,715		1,495		140		12		24,082		13
Equity securities	45		15		—		—		60		—
Total fixed maturities and equity securities investments	$	22,760	$	1,510	$	140	$	12	$	24,142	$	13

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾ Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

⁽³⁾ Represents OTTI reported as a component of Other comprehensive income (loss).

⁽⁴⁾ Amount excludes $190 of net unrealized gains on impaired available-for-sale securities.

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of fixed maturities, including securities pledged, as of March 31, 2018, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. Mortgage-backed securities ("MBS") and Other asset-backed securities ("ABS") are shown separately because they are not due at a single maturity date.

	Amortized Cost		Fair Value
Due to mature:
One year or less	$	566	$	572
After one year through five years	4,392		4,498
After five years through ten years	6,029		6,072
After ten years	7,870		8,428
Mortgage-backed securities	4,186		4,262
Other asset-backed securities	839		846
Fixed maturities, including securities pledged	$	23,882	$	24,678

U.S. and Foreign Corporate Securities by Industry

The following tables set forth the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Fair Value
March 31, 2018
Communications	$	1,184	$	82	$	8	$	1,258
Financial	2,717		117		22		2,812
Industrial and other companies	7,856		335		109		8,082
Energy	1,974		113		44		2,043
Utilities	2,775		142		35		2,882
Transportation	715		33		8		740
Total	$	17,221	$	822	$	226	$	17,817
December 31, 2017
Communications	$	1,145	$	114	$	1	$	1,258
Financial	2,750		185		4		2,931
Industrial and other companies	7,953		532		65		8,420
Energy	1,970		159		33		2,096
Utilities	2,725		216		11		2,930
Transportation	697		52		2		747
Total	$	17,240	$	1,258	$	116	$	18,382

Schedule of Securities Borrowed Under Securities Lending Transactions

The following table presents borrowings under securities lending transactions by class of collateral pledged for the dates indicated:

	March 31, 2018 (1)(2)		December 31, 2017 (1)(2)
U.S. Treasuries	$	80	$	177
U.S. corporate public securities	445		460
Foreign corporate public securities and foreign governments	141		168
Payables under securities loan agreements	$	666	$	805

⁽¹⁾ As of March 31, 2018 and December 31, 2017, borrowings under securities lending transactions include cash collateral of $581 and $744, respectively.

Schedule of Unrealized Loss on Investments

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of March 31, 2018:

	Six Months or Less Below Amortized Cost				More Than Six Months and Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost				Total
	Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	15	$	—	$	—	$	—	$	12	$	1	$	27	$	1
State, municipalities and political subdivisions	183		2		17		1		89		5		289		8
U.S. corporate public securities	1,904		38		184		13		228		22		2,316		73
U.S. corporate private securities	932		17		146		8		475		53		1,553		78
Foreign corporate public securities and foreign governments	766		18		40		3		83		10		889		31
Foreign corporate private securities	711		13		70		21		166		14		947		48
Residential mortgage-backed	334		7		147		8		418		21		899		36
Commercial mortgage-backed	573		10		240		9		37		2		850		21
Other asset-backed	145		1		45		1		16		—		206		2
Total	$	5,563	$	106	$	889	$	64	$	1,524	$	128	$	7,976	$	298

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2017:

	Six Months or Less Below Amortized Cost				More Than Six Months and Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost				Total
	Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	18	$	—	$	—	$	—	$	12	$	—	$	30	$	—
State, municipalities and political subdivisions	34		—		1		—		91		4		126		4
U.S. corporate public securities	504		11		—		—		304		15		808		26
U.S. corporate private securities	226		2		46		2		499		34		771		38
Foreign corporate public securities and foreign governments	148		1		5		—		99		8		252		9
Foreign corporate private securities	135		38		13		—		161		7		309		45
Residential mortgage-backed	263		5		26		1		438		13		727		19
Commercial mortgage-backed	436		5		19		—		50		1		505		6
Other asset-backed	95		1		9		—		38		—		142		1
Total	$	1,859	$	63	$	119	$	3	$	1,692	$	82	$	3,670	$	148

Schedule of Mortgage Loans Real Estate and Valuation Allowance

The following table summarizes the Company's investment in mortgage loans as of the dates indicated:

	March 31, 2018								December 31, 2017
	Impaired		Non Impaired			Total			Impaired		Non Impaired			Total
Commercial mortgage loans	$	4	$	4,888		$	4,892		$	4	$	4,907		$	4,911
Collective valuation allowance for losses	—		(1		)	(1		)	N/A		(1		)	(1		)
Total net commercial mortgage loans	$	4	$	4,887		$	4,891		$	4	$	4,906		$	4,910
N/A- Not Applicable

Allowance for Credit Losses on Financing Receivables

The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated:

	March 31, 2018		December 31, 2017
Collective valuation allowance for losses, balance at January 1	$	1	$	1
Addition to (reduction of) allowance for losses	—		—
Collective valuation allowance for losses, end of period	$	1	$	1

Impaired Financing Receivables

The carrying values and unpaid principal balances of impaired mortgage loans were as follows as of the dates indicated:

	March 31, 2018		December 31, 2017
Impaired loans without allowances for losses	$	4	$	4
Less: Allowances for losses on impaired loans	—		—
Impaired loans, net	$	4	$	4
Unpaid principal balance of impaired loans	$	6	$	6

The following table presents information on the average investment during the period in impaired loans and interest income recognized on impaired and troubled debt restructured loans for the periods indicated:

	Three Months Ended March 31,
	2018		2017
Impaired loans, average investment during the period (amortized cost)(1)	$	4	$	5
Interest income recognized on impaired loans, on an accrual basis(1)	—		—
Interest income recognized on impaired loans, on a cash basis(1)	—		—
Interest income recognized on troubled debt restructured loans, on an accrual basis	—		—
(1)Includes amounts for Troubled debt restructured loans.

Loans Receivable, Grouped by Loan to Value and Debt Service Coverage Ratio

The following table presents the LTV ratios as of the dates indicated:

	March 31, 2018 (1)		December 31, 2017 (1)
Loan-to-Value Ratio:
0% - 50%	$	343	$	341
>50% - 60%	1,291		1,256
>60% - 70%	2,971		3,042
>70% - 80%	276		262
>80% and above	11		10
Total Commercial mortgage loans	$	4,892	$	4,911

⁽¹⁾ Balances do not include collective valuation allowance for losses.

The following table presents the DSC ratios as of the dates indicated:

	March 31, 2018 (1)		December 31, 2017 (1)
Debt Service Coverage Ratio:
Greater than 1.5x	$	3,793	$	3,902
>1.25x - 1.5x	355		340
>1.0x - 1.25x	645		600
Less than 1.0x	82		54
Commercial mortgage loans secured by land or construction loans	17		15
Total Commercial mortgage loans	$	4,892	$	4,911

⁽¹⁾ Balances do not include collective valuation allowance for losses.

Mortgage Loans by Geographic Location of Collateral

Properties collateralizing mortgage loans are geographically dispersed throughout the United States, as well as diversified by property type, as reflected in the following tables as of the dates indicated:

	March 31, 2018 (1)				December 31, 2017 (1)
	Gross Carrying Value		% of Total		Gross Carrying Value		% of Total
Commercial Mortgage Loans by U.S. Region:
Pacific	$	987	20.2	%	$	985	20.1	%
South Atlantic	996		20.3	%	982		20.0	%
Middle Atlantic	1,101		22.4	%	1,097		22.4	%
West South Central	544		11.1	%	552		11.2	%
Mountain	463		9.5	%	457		9.3	%
East North Central	454		9.3	%	468		9.5	%
New England	76		1.6	%	77		1.6	%
West North Central	229		4.7	%	243		4.9	%
East South Central	42		0.9	%	50		1.0	%
Total Commercial mortgage loans	$	4,892	100.0	%	$	4,911	100.0	%

⁽¹⁾ Balances do not include collective valuation allowance for losses.

Mortgage Loans by Property Type of Collateral

	March 31, 2018 (1)				December 31, 2017 (1)
	Gross Carrying Value		% of Total		Gross Carrying Value		% of Total
Commercial Mortgage Loans by Property Type:
Retail	$	1,383	28.3	%	$	1,383	28.1	%
Industrial	1,273		26.1	%	1,326		27.0	%
Apartments	951		19.4	%	948		19.3	%
Office	842		17.2	%	829		16.9	%
Hotel/Motel	178		3.6	%	177		3.6	%
Mixed Use	51		1.0	%	52		1.1	%
Other	214		4.4	%	196		4.0	%
Total Commercial mortgage loans	$	4,892	100.0	%	$	4,911	100.0	%

⁽¹⁾ Balances do not include collective valuation allowance for losses.

Mortgage Loans by Year of Origination

The following table presents mortgages by year of origination as of the dates indicated:

	March 31, 2018 (1)		December 31, 2017 (1)
Year of Origination:
2018	$	137	$	—
2017	1,073		1,086
2016	857		867
2015	700		703
2014	523		538
2013	638		644
2012 and prior	964		1,073
Total Commercial mortgage loans	$	4,892	$	4,911

⁽¹⁾ Balances do not include collective valuation allowance for losses.

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following table presents the amount of credit impairments on fixed maturities for which a portion of the OTTI loss was recognized in Other comprehensive income (loss) and the corresponding changes in such amounts for the periods indicated:

	Three Months Ended March 31,
	2018		2017
Balance at January 1	$	16	$	9
Additional credit impairments:
On securities previously impaired	—		—
Reductions:
Increase in cash flows	—		—
Securities sold, matured, prepaid or paid down	10		1
Balance at March 31	$	6	$	8

The following tables identify the Company's credit-related and intent-related impairments included in the Condensed Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated:

	Three Months Ended March 31,
	2018				2017
	Impairment			No. of Securities	Impairment			No. of Securities
Foreign corporate private securities(1)	$	9		1	$	—		—
Residential mortgage-backed	—		*	6	—		*	8
Total	$	9		7	$	—	*	8
(1) Primarily U.S. dollar denominated.
*Less than $1.

Net Investment Income

The following table summarizes Net investment income for the periods indicated:

	Three Months Ended March 31,
	2018		2017
Fixed maturities	$	323	$	326
Equity securities	1		1
Mortgage loans on real estate	53		51
Policy loans	2		3
Short-term investments and cash equivalents	1		—
Other	19		15
Gross investment income	399		396
Less: Investment expenses	17		17
Net investment income	$	382	$	379

Realized Gain (Loss) on Investments

Net realized capital gains (losses) were as follows for the periods indicated:

	Three Months Ended March 31,
	2018			2017
Fixed maturities, available-for-sale, including securities pledged	$	(14	)	$	(19	)
Fixed maturities, at fair value option	(99		)	(59		)
Equity securities	(2		)	—
Derivatives	5			4
Embedded derivatives - fixed maturities	(2		)	(1		)
Guaranteed benefit derivatives	20			20
Other investments	5			—
Net realized capital gains (losses)	$	(87	)	$	(55	)
After-tax net realized capital gains (losses)	$	(79	)	$	(36	)

Gain (Loss) on Investments

Proceeds from the sale of fixed maturities and equity securities, available-for-sale and the related gross realized gains and losses, before tax, were as follows for the periods indicated:

	Three Months Ended March 31,
	2018		2017
Proceeds on sales	$	660	$	1,077
Gross gains	4		5
Gross losses	7		18

Duration

Available-for-sale Securities Including Securities Pledged [Line Items]

Schedule of Unrealized Loss on Investments

Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, for instances in which fair value declined below amortized cost by greater than or less than 20% for consecutive months as indicated in the tables below, were as follows as of the dates indicated:

	Amortized Cost				Unrealized Capital Losses				Number of Securities
	< 20%		> 20%		< 20%		> 20%		< 20%	> 20%
March 31, 2018
Six months or less below amortized cost	$	5,668	$	89	$	107	$	28	1,139	9
More than six months and twelve months or less below amortized cost	901		1		44		—		181	1
More than twelve months below amortized cost	1,536		79		95		24		324	6
Total	$	8,105	$	169	$	246	$	52	1,644	16
December 31, 2017
Six months or less below amortized cost	$	1,883	$	67	$	30	$	38	433	7
More than six months and twelve months or less below amortized cost	128		7		4		2		37	1
More than twelve months below amortized cost	1,661		72		53		21		335	7
Total	$	3,672	$	146	$	87	$	61	805	15

Market Sector (Type of Security)

Available-for-sale Securities Including Securities Pledged [Line Items]

Schedule of Unrealized Loss on Investments

Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, by market sector for instances in which fair value declined below amortized cost by greater than or less than 20% were as follows as of the dates indicated:

	Amortized Cost				Unrealized Capital Losses				Number of Securities
	< 20%		> 20%		< 20%		> 20%		< 20%	> 20%
March 31, 2018
U.S. Treasuries	$	28	$	—	$	1	$	—	6	—
State, municipalities and political subdivisions	297		—		8		—		167	—
U.S. corporate public securities	2,356		33		65		8		513	3
U.S. corporate private securities	1,564		67		57		21		176	2
Foreign corporate public securities and foreign governments	908		12		28		3		197	2
Foreign corporate private securities	939		56		28		20		101	5
Residential mortgage-backed	935		—		36		—		233	2
Commercial mortgage-backed	871		—		21		—		185	—
Other asset-backed	207		1		2		—		66	2
Total	$	8,105	$	169	$	246	$	52	1,644	16
December 31, 2017
U.S. Treasuries	$	30	$	—	$	—	$	—	6	—
State, municipalities and political subdivisions	130		—		4		—		96	—
U.S. corporate public securities	828		6		24		2		167	2
U.S. corporate private securities	743		66		18		20		71	2
Foreign corporate public securities and foreign governments	254		7		7		2		61	1
Foreign corporate private securities	288		66		8		37		35	6
Residential mortgage-backed	746		—		19		—		194	3
Commercial mortgage-backed	511		—		6		—		131	—
Other asset-backed	142		1		1		—		44	1
Total	$	3,672	$	146	$	87	$	61	805	15

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The notional amounts and fair values of derivatives were as follows as of the dates indicated:

	March 31, 2018							December 31, 2017
	Notional Amount		Asset Fair Value		Liability Fair Value			Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives: Qualifying for hedge accounting(1)
Cash flow hedges:
Interest rate contracts	$	35	$	—	$	—		$	35	$	—	$	—
Foreign exchange contracts	569		1		77			533		—		52
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts	17,188		133		16			18,769		117		20
Foreign exchange contracts	11		—		—			26		—		—
Equity contracts	144		6		5			154		9		7
Credit contracts	681		8		4			771		10		6
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	N/A		10		—			N/A		12		—
Within products	N/A		—		95			N/A		—		117
Within reinsurance agreements	N/A		—		(51		)	N/A		—		(21		)
Total			$	158	$	146				$	148	$	181

⁽¹⁾ Open derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value.

N/A - Not Applicable

Offsetting Assets and Liabilities

Although the Company has not elected to net its derivative exposures, the notional amounts and fair values of Over-The-Counter ("OTC") and cleared derivatives excluding exchange traded contracts and forward contracts (To Be Announced mortgage-backed securities) are presented in the tables below as of the dates indicated:

	March 31, 2018
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	681	$	8		$	4
Equity contracts	144		6			5
Foreign exchange contracts	580		1			77
Interest rate contracts	14,755		133			16
			148			102
Counterparty netting(1)			(38		)	(38		)
Cash collateral netting(1)			(106		)	—
Securities collateral netting(1)			—			(64		)
Net receivables/payables			$	4		$	—

⁽¹⁾ Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements.

	December 31, 2017
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	771	$	10		$	6
Equity contracts	154		9			7
Foreign exchange contracts	559		—			52
Interest rate contracts	17,286		117			20
			136			85
Counterparty netting(1)			(50		)	(50		)
Cash collateral netting(1)			(84		)	—
Securities collateral netting(1)			—			(30		)
Net receivables/payables			$	2		$	5

⁽¹⁾ Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

Net realized gains (losses) on derivatives were as follows for the periods indicated:

	Three Months Ended March 31,
	2018			2017
Derivatives: Qualifying for hedge accounting(1)
Cash flow hedges:
Interest rate contracts	$	—		$	—
Foreign exchange contracts	1			7
Derivatives: Non-qualifying for hedge accounting(2)
Interest rate contracts	5			(3		)
Foreign exchange contracts	(1		)	(2		)
Equity contracts	—			1
Credit contracts	—			1
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments(2)	(2		)	(2		)
Within products(2)	20			20
Within reinsurance agreements(3)	29			(2		)
Total	$	52		$	20

⁽¹⁾ Changes in value for effective fair value hedges are recorded in Other net realized capital gains (losses). Changes in fair value upon disposal for effective cash flow hedges are amortized through Net investment income and the ineffective portion is recorded in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. For the three months ended March 31, 2018 and 2017, ineffective amounts were immaterial.

⁽²⁾ Changes in value are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

⁽³⁾ Changes in value are included in Interest credited and other benefits to contract owners/policyholders in the Condensed Consolidated Statements of Operations.

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of March 31, 2018:

	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	494		$	58		$	—		$	552
U.S. Government agencies and authorities	—			—			—			—
State, municipalities and political subdivisions	—			859			—			859
U.S. corporate public securities	—			8,777			15			8,792
U.S. corporate private securities	—			2,744			651			3,395
Foreign corporate public securities and foreign governments(1)	—			2,696			—			2,696
Foreign corporate private securities (1)	—			3,175			101			3,276
Residential mortgage-backed securities	—			2,622			73			2,695
Commercial mortgage-backed securities	—			1,567			—			1,567
Other asset-backed securities	—			720			126			846
Total fixed maturities, including securities pledged	494			23,218			966			24,678
Equity securities	10			—			48			58
Derivatives:
Interest rate contracts	—			133			—			133
Foreign exchange contracts	—			1			—			1
Equity contracts	—			6			—			6
Credit contracts	—			8			—			8
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,010			—			—			1,010
Assets held in separate accounts	68,387			5,091			11			73,489
Total assets	$	69,901		$	28,457		$	1,025		$	99,383
Percentage of Level to Total	70		%	29		%	1		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	18		$	18
Stabilizer and MCGs	—			—			77			77
Other derivatives:
Interest rate contracts	—			16			—			16
Foreign exchange contracts	—			77			—			77
Equity contracts	—			5			—			5
Credit contracts	—			4			—			4
Embedded derivative on reinsurance	—			(51		)	—			(51		)
Total liabilities	$	—		$	51		$	95		$	146

⁽¹⁾ Primarily U.S. dollar denominated.

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2017:

	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	597		$	59		$	—		$	656
U.S. Government agencies and authorities	—			3			—			3
State, municipalities and political subdivisions	—			878			—			878
U.S. corporate public securities	—			9,210			26			9,236
U.S. corporate private securities	—			2,855			642			3,497
Foreign corporate public securities and foreign governments(1)	—			2,777			—			2,777
Foreign corporate private securities (1)	—			3,123			92			3,215
Residential mortgage-backed securities	—			2,608			21			2,629
Commercial mortgage-backed securities	—			1,463			7			1,470
Other asset-backed securities	—			638			43			681
Total fixed maturities, including securities pledged	597			23,614			831			25,042
Equity securities, available-for-sale	10			—			50			60
Derivatives:
Interest rate contracts	—			117			—			117
Foreign exchange contracts	—			—			—			—
Equity contracts	—			9			—			9
Credit contracts	—			10			—			10
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,078			—			—			1,078
Assets held in separate accounts	67,966			5,059			11			73,036
Total assets	$	69,651		$	28,809		$	892		$	99,352
Percentage of Level to total	70		%	29		%	1		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	20		$	20
Stabilizer and MCGs	—			—			97			97
Other derivatives:
Interest rate contracts	—			20			—			20
Foreign exchange contracts	—			52			—			52
Equity contracts	—			7			—			7
Credit contracts	—			6			—			6
Embedded derivative on reinsurance	—			(21		)	—			(21		)
Total liabilities	$	—		$	64		$	117		$	181

⁽¹⁾ Primarily U.S. dollar denominated.

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table summarizes the change in fair value of the Company’s Level 3 assets and liabilities and transfers in and out of Level 3 for the period indicated:

	Three Months Ended March 31, 2018
	Fair Value as of January 1			Total Realized/Unrealized Gains (Losses) Included in:						Purchases		Issuances			Sales			Settlements			Transfers into Level 3(3)		Transfers out of Level 3(3)			Fair Value as of March 31			Change in Unrealized Gains (Losses) Included in Earnings(4)
				Net Income			OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities	$	26		$	—		$	—		$	—	$	—		$	(11	)	$	—		$	—	$	—		$	15		$	—
U.S. Corporate private securities	642			—			(15		)	12		—			—			(2		)	14		—			651			—
Foreign corporate private securities(1)	92			(9		)	18			—		—			—			—			—		—			101			(9		)
Residential mortgage-backed securities	21			(1		)	—			58		—			—			—			—		(5		)	73			(2		)
Commercial mortgage-backed securities	7			—			—			—		—			—			—			—		(7		)	—			—
Other asset-backed securities	43			—			—			100		—			—			(1		)	—		(16		)	126			—
Total fixed maturities, including securities pledged	831			(10		)	3			170		—			(11		)	(3		)	14		(28		)	966			(11		)
Equity securities	50			(2		)	—			—		—			—			—			—		—			48			(2		)
Derivatives:
Guaranteed benefit derivatives:
Stabilizer and MCGs(2)	(97		)	21			—			—		(1		)	—			—			—		—			(77		)	—
FIA(2)	(20		)	(1		)	—			—		1			—			2			—		—			(18		)	—
Assets held in separate accounts(5)	11			—			—			—		—			—			—			—		—			11			—
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.
(4) For financial instruments still held as of March 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(5) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.

The following tables summarize the change in fair value of the Company’s Level 3 assets and liabilities and transfers in and out of Level 3 for the periods indicated:

	Three Months Ended March 31, 2017
	Fair Value as of January 1			Total Realized/Unrealized Gains (Losses) Included in:						Purchases		Issuances			Sales		Settlements			Transfers into Level 3(3)		Transfers out of Level 3(3)			Fair Value as of March 31			Change in Unrealized Gains (Losses) Included in Earnings(4)
				Net Income			OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities	$	7		$	—		$	—		$	5	$	—		$	—	$	(1	)	$	19	$	—		$	30		$	—
U.S. Corporate private securities	525			—			—			37		—			—		(1		)	4		—			565			—
Foreign corporate private securities(1)	154			—			(1		)	18		—			—		(10		)	—		—			161			—
Residential mortgage-backed securities	21			(1		)	(1		)	10		—			—		—			1		—			30			(1		)
Commercial mortgage-backed securities	10			—			—			—		—			—		(1		)	—		(3		)	6			—
Other asset-backed securities	27			—			1			10		—			—		—			—		(15		)	23			—
Total fixed maturities, including securities pledged	744			(1		)	(1		)	80		—			—		(13		)	24		(18		)	815			(1		)
Equity securities, available-for-sale	48			—			—			2		—			—		—			—		—			50			—
Derivatives:
Guaranteed benefit derivatives:
Stabilizer and MCGs(2)	(151		)	21			—			—		(1		)	—		—			—		—			(131		)	—
FIA(2)	(23		)	(1		)	—			—		—			—		1			—		—			(23		)	—
Assets held in separate accounts(5)	6			—			—			5		—			—		—			2		—			13			—
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(3) The Company’s policy is to recognize transfers in and transfers out as of the beginning of the reporting period.
(4) For financial instruments still held as of March 31, amounts are included in Net investment income and Total net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.
(5) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.

Fair Value Inputs, Liabilities, Quantitative Information

The following table presents the unobservable inputs for Level 3 fair value measurements as of March 31, 2018:

	Range(1)
Unobservable Input	FIA		Stabilizer / MCG
Interest rate implied volatility	—		0.1% to 6.5%
Nonperformance risk	0.07% to 1.1%		0.07% to 1.1%
Actuarial Assumptions:
Partial Withdrawals	0% to 7%		—
Lapses	0% to 42%	(2)	0% to 50%	(3)
Policyholder Deposits(4)	—		0% to 50%	(3)

⁽¹⁾ Represents the range of reasonable assumptions that management has used in its fair value calculations.

⁽²⁾ Lapse rates tend to be lower during the contractual surrender charge period and higher after the surrender charge period ends; the highest lapse rates occur in the year immediately after the end of the surrender charge period.

⁽³⁾ Stabilizer contracts with recordkeeping agreements have different range of lapse and policyholder deposit assumptions from Stabilizer (Investment only) and MCG contracts as shown below:

	Percentage of Plans		Overall Range of Lapse Rates	Range of Lapse Rates for 85% of Plans	Overall Range of Policyholder Deposits	Range of Policyholder Deposits for 85% of Plans
Stabilizer (Investment Only) and MCG Contracts	92	%	0-25%	0-15%	0-30%	0-15%
Stabilizer with Recordkeeping Agreements	8	%	0-50%	0-30%	0-50%	0-25%
Aggregate of all plans	100	%	0-50%	0-30%	0-50%	0-25%

⁽⁴⁾ Measured as a percentage of assets under management or assets under administration.

The following table presents the unobservable inputs for Level 3 fair value measurements as of December 31, 2017:

	Range(1)
Unobservable Input	FIA		Stabilizer / MCG
Interest rate implied volatility	—		0.1% to 6.3%
Nonperformance risk	0.02% to 1.1%		0.02% to 1.1%
Actuarial Assumptions:
Partial Withdrawals	0.5% to 7%		—
Lapses	0% to 42%	(2)	0% to 50%	(3)
Policyholder Deposits(4)	—		0% to 50%	(3)

⁽¹⁾ Represents the range of reasonable assumptions that management has used in its fair value calculations.

⁽²⁾ Lapse rates tend to be lower during the contractual surrender charge period and higher after the surrender charge period ends; the highest lapse rates occur in the year immediately after the end of the surrender charge period.

⁽³⁾ Stabilizer contracts with recordkeeping agreements have different range of lapse and policyholder deposit assumptions from Stabilizer (Investment only) and MCG contracts as shown below:

	Percentage of Plans		Overall Range of Lapse Rates	Range of Lapse Rates for 85% of Plans	Overall Range of Policyholder Deposits	Range of Policyholder Deposits for 85% of Plans
Stabilizer (Investment Only) and MCG Contracts	92	%	0-25%	0-15%	0-30%	0-15%
Stabilizer with Recordkeeping Agreements	8	%	0-50%	0-30%	0-50%	0-25%
Aggregate of all plans	100	%	0-50%	0-30%	0-50%	0-25%

⁽⁴⁾ Measured as a percentage of assets under management or assets under administration.

Fair Value, by Balance Sheet Grouping

The carrying values and estimated fair values of the Company’s financial instruments as of the dates indicated:

	March 31, 2018						December 31, 2017
	Carrying Value			Fair Value			Carrying Value			Fair Value
Assets:
Fixed maturities, including securities pledged	$	24,678		$	24,678		$	25,042		$	25,042
Equity securities	58			58			60			60
Mortgage loans on real estate	4,891			4,885			4,910			4,924
Policy loans	212			212			214			214
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,010			1,010			1,078			1,078
Derivatives	148			148			136			136
Notes receivable from affiliate	175			215			175			222
Short-term loan to affiliate	—			—			80			80
Other Investments	22			22			—			—
Assets held in separate accounts	73,489			73,489			73,036			73,036
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities(1)	25,599			28,720			25,314			29,431
Funding agreements with fixed maturities	225			230			—			—
Supplementary contracts, immediate annuities and other	357			403			365			418
Deposit liabilities	77			122			135			198
Derivatives:
Guaranteed benefit derivatives:
FIA	18			18			20			20
Stabilizer and MCGs	77			77			97			97
Other derivatives	102			102			85			85
Long-term debt	4			4			5			5
Embedded derivatives on reinsurance	(51		)	(51		)	(21		)	(21		)

⁽¹⁾ Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Guaranteed benefit derivatives section of the table above.

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Deferred Policy Acquisition Costs and Value of Business Acquired (Tables)

3 Months Ended

Mar. 31, 2018

Deferred Policy Acquisition Costs and Present Value of Future Insurance Profits, Net [Abstract]

Deferred Policy Acquisition Costs and Value of Business Acquired

The following tables present a rollforward of DAC and VOBA for the periods indicated:

	2018
	DAC			VOBA				Total
Balance as of January 1, 2018	$	385		$	367			$	752
Deferrals of commissions and expenses	15			2				17
Amortization:
Amortization, excluding unlocking	(18		)	(20		)		(38		)
Unlocking (1)	(29		)	(17		)		(46		)
Interest accrued	9			10			(2)	19
Net amortization included in the Condensed Consolidated Statements of Operations	(38		)	(27		)		(65		)
Change due to unrealized capital gains/losses on available-for-sale securities	85			108				193
Balance as of March 31, 2018	$	447		$	450			$	897

	2017
	DAC			VOBA				Total
Balance as of January 1, 2017	$	476		$	537			$	1,013
Deferrals of commissions and expenses	21			1				22
Amortization:
Amortization, excluding unlocking	(17		)	(20		)		(37		)
Unlocking (1)	1			13				14
Interest accrued	9			12			(2)	21
Net amortization included in the Condensed Consolidated Statements of Operations	(7		)	5				(2		)
Change due to unrealized capital gains/losses on available-for-sale securities	(14		)	(19		)		(33		)
Balance as of March 31, 2017	$	476		$	524			$	1,000

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2018

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Shareholder’s equity included the following components of AOCI as of the dates indicated:

	March 31,
	2018			2017
Fixed maturities, net of OTTI	$	786		$	997
Equity securities	—			16
Derivatives	93			185
DAC/VOBA and Sales inducements adjustment on available-for-sale securities	(240		)	(357		)
Premium deficiency reserve adjustment	(82		)	(94		)
Other	—			—
Unrealized capital gains (losses), before tax	557			747
Deferred income tax asset (liability)	(123		)	(139		)
Unrealized capital gains (losses), after tax	434			608
Pension and other postretirement benefits liability, net of tax	4			5
AOCI	$	438		$	613

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Changes in AOCI, including the reclassification adjustments recognized in the Condensed Consolidated Statements of Operations were as follows for the periods indicated:

	Three Months Ended March 31, 2018
	Before-Tax Amount				Income Tax				After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	(687	)		$	153		(4)	$	(534	)
Equity securities	—			(3)	—				—
Other	(5		)		1				(4		)
OTTI	7				(1		)		6
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	14				(3		)		11
DAC/VOBA and Sales inducements	194			(1)	(41		)		153
Premium deficiency reserve adjustment	33				(7		)		26
Change in unrealized gains/losses on available-for-sale securities	(444		)		102				(342		)
Derivatives:
Derivatives	(25		)	(2)	5				(20		)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(6		)		1				(5		)
Change in unrealized gains/losses on derivatives	(31		)		6				(25		)
Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(1		)		—				(1		)
Change in pension and other postretirement benefits liability	(1		)		—				(1		)
Change in Other comprehensive income (loss)	$	(476	)		$	108			$	(368	)

⁽¹⁾ See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

⁽²⁾ See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.

⁽³⁾ Balance reclassified to Retained earnings due to adoption of ASU 2016-01.

⁽⁴⁾ Amount includes $11 valuation allowance. See the Income Taxes Note to these Condensed Consolidated Financial Statements for additional information.

	Three Months Ended March 31, 2017
	Before-Tax Amount				Income Tax			After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	113			$	(39	)	$	74
Equity securities	—				—			—
Other	—				—			—
OTTI	2				(1		)	1
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	19				(7		)	12
DAC/VOBA and Sales inducements	(33		)	(1)	12			(21		)
Premium deficiency reserve adjustment	(5		)		2			(3		)
Change in unrealized gains/losses on available-for-sale securities	96				(33		)	63
Derivatives:
Derivatives	(9		)	(2)	3			(6		)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(6		)		2			(4		)
Change in unrealized gains/losses on derivatives	(15		)		5			(10		)
Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	—				—			—
Change in pension and other postretirement benefits liability	—				—			—
Change in Other comprehensive income (loss)	$	81			$	(28	)	$	53

⁽¹⁾ See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

⁽²⁾ See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Restricted Assets

The components of the fair value of the restricted assets were as follows as of the dates indicated:

	March 31, 2018		December 31, 2017
Fixed maturity collateral pledged to FHLB(1)	$	272	$	—
FHLB restricted stock(2)	23		—
Other fixed maturities-state deposits	13		13
Cash and cash equivalents	5		5
Securities pledged(3)	833		960
Total restricted assets	$	1,146	$	978

⁽¹⁾ Included in Fixed maturities, available for sale, at fair value on the Condensed Consolidated Balance Sheets.

⁽²⁾ Included in Other investments on the Condensed Consolidated Balance Sheets.

⁽³⁾ Includes the fair value of loaned securities of $646and $799 as of March 31, 2018 and December 31, 2017, respectively. In addition, as of March 31, 2018 and December 31, 2017, the Company delivered securities as collateral of $187 and $161, respectively. Loaned securities and securities delivered as collateral are included in Securities pledged on the Condensed Consolidated Balance Sheets.

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Business, Basis of Presentation and Significant Accounting Policies (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 segment	Dec. 31, 2017 USD ($)
Schedule of Equity Transactions [Line Items]
Number of non-insurance subsidiaries	2
Number of Operating Segments | segment	1
Accounting Standards Update 2016-01
Schedule of Equity Transactions [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ 0
Retained Earnings (Deficit) | Accounting Standards Update 2016-01
Schedule of Equity Transactions [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		12
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01
Schedule of Equity Transactions [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ (12)

XML

Business, Basis of Presentation and Significant Accounting Policies Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of Revenue [Line Items]
Revenue from contract with customer excluding assessed tax percentage	13.70%
Revenue from Contract with Customer, Excluding Assessed Tax	$ 72
Capitalized Contract Cost, Net	91
Capitalized Contract Cost, Amortization	5
Capitalized Contract Cost, Impairment Loss	0
Other assets	173			$ 140
Total assets	108,106			107,972
Deferred income taxes	117			187
Total liabilities	104,734			104,391
Retained earnings (deficit)	201			30
Total shareholder's equity	3,372	$ 3,484		3,581	$ 3,377
Total liabilities and shareholder's equity	108,106			107,972
Operating expenses	108	220
Total benefits and expenses	412	501
Income (loss) before income taxes	112	72
Income tax expense (benefit)	25	18
Net income (loss)	87	54
Net cash provided by operating activities	320	$ 133
Recordkeeping & administration
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	28
Distribution & shareholder servicing
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	44
Accounting Standards Update 2014-09 [Member]
Disaggregation of Revenue [Line Items]
Accounts Receivable, Net	$ 26
Cumulative Effect of New Accounting Principle in Period of Adoption				$ 72
Minimum
Disaggregation of Revenue [Line Items]
Finite-Lived Intangible Asset, Useful Life	5 years
Maximum
Disaggregation of Revenue [Line Items]
Finite-Lived Intangible Asset, Useful Life	15 years
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 [Member]
Disaggregation of Revenue [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption			$ 72
Other assets	$ (91)		90
Deferred Income Tax Liabilities, Net			$ 18
Total assets	(91)
Deferred income taxes	(19)
Total liabilities	(19)
Retained earnings (deficit)	(72)
Total shareholder's equity	(72)
Total liabilities and shareholder's equity	(91)
Operating expenses	1
Total benefits and expenses	1
Income (loss) before income taxes	(1)
Income tax expense (benefit)	0
Net income (loss)	(1)
Net cash provided by operating activities	0
Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09 [Member]
Disaggregation of Revenue [Line Items]
Other assets	82
Total assets	108,015
Deferred income taxes	98
Total liabilities	104,715
Retained earnings (deficit)	129
Total shareholder's equity	3,300
Total liabilities and shareholder's equity	108,015
Operating expenses	109
Total benefits and expenses	413
Income (loss) before income taxes	111
Income tax expense (benefit)	25
Net income (loss)	$ 86

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Investments - Fixed Maturities and Equity Securities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Available-for-sale Securities Including Securities Pledged [Line Items]
Embedded Derivatives			$ 12
OTTI			13
Securities pledged, Amortized Cost	$ 776		864
Total equity securities, Amortized Cost	45		45
Total fixed maturities and equity securities, Amortized Cost			22,760
Total fixed maturities and equity securities, Gross Unrealized Capital Gains			1,510
Total fixed maturities and equity securities, Gross Unrealized Capital Losses			140
Total fixed maturities and equity securities, Fair Value			24,142
Impaired available-for-sale securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Net unrealized gains on impaired available-for-sale securities	160	$ 190
U.S. Treasuries
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	463		547
Fixed maturities, Gross Unrealized Capital Gains	90		109
Fixed maturities, Gross Unrealized Capital Losses	1		0
Embedded Derivatives	0		0
Fixed maturities, including securities pledged, Fair Value	552		656
OTTI	0		0
U.S. government agencies and authorities
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	0		3
Fixed maturities, Gross Unrealized Capital Gains	0		0
Fixed maturities, Gross Unrealized Capital Losses	0		0
Embedded Derivatives	0		0
Fixed maturities, including securities pledged, Fair Value	0		3
OTTI	0		0
State, municipalities and political subdivisions
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	841		842
Fixed maturities, Gross Unrealized Capital Gains	26		40
Fixed maturities, Gross Unrealized Capital Losses	8		4
Embedded Derivatives	0		0
Fixed maturities, including securities pledged, Fair Value	859		878
OTTI	0		0
U.S. corporate public securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	8,342		8,476
Fixed maturities, Gross Unrealized Capital Gains	523		786
Fixed maturities, Gross Unrealized Capital Losses	73		26
Embedded Derivatives	0		0
Fixed maturities, including securities pledged, Fair Value	8,792		9,236
OTTI	0		0
U.S. corporate private securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	3,387		3,387
Fixed maturities, Gross Unrealized Capital Gains	86		148
Fixed maturities, Gross Unrealized Capital Losses	78		38
Embedded Derivatives	0		0
Fixed maturities, including securities pledged, Fair Value	3,395		3,497
OTTI	0		0
Foreign corporate public securities and foreign governments
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	2,601		2,594
Fixed maturities, Gross Unrealized Capital Gains	126		192
Fixed maturities, Gross Unrealized Capital Losses	31		9
Embedded Derivatives	0		0
Fixed maturities, including securities pledged, Fair Value	2,696		2,777
OTTI	0		0
Foreign corporate private securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	3,223		3,105
Fixed maturities, Gross Unrealized Capital Gains	101		155
Fixed maturities, Gross Unrealized Capital Losses	48		45
Embedded Derivatives	0		0
Fixed maturities, including securities pledged, Fair Value	3,276		3,215
OTTI	0		7
Residential mortgage-backed
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	2,616		2,517
Fixed maturities, Gross Unrealized Capital Gains	105		119
Fixed maturities, Gross Unrealized Capital Losses	36		19
Embedded Derivatives	10		12
Fixed maturities, including securities pledged, Fair Value	2,695		2,629
OTTI	4		4
Agency
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	1,876		1,878
Fixed maturities, Gross Unrealized Capital Gains	54		65
Fixed maturities, Gross Unrealized Capital Losses	32		17
Embedded Derivatives	5		6
Fixed maturities, including securities pledged, Fair Value	1,903		1,932
OTTI	0		0
Non-Agency
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	740		639
Fixed maturities, Gross Unrealized Capital Gains	51		54
Fixed maturities, Gross Unrealized Capital Losses	4		2
Embedded Derivatives	5		6
Fixed maturities, including securities pledged, Fair Value	792		697
OTTI	4		4
Commercial mortgage-backed
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	1,570		1,437
Fixed maturities, Gross Unrealized Capital Gains	18		39
Fixed maturities, Gross Unrealized Capital Losses	21		6
Embedded Derivatives	0		0
Fixed maturities, including securities pledged, Fair Value	1,567		1,470
OTTI	0		0
Other asset-backed securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	839		671
Fixed maturities, Gross Unrealized Capital Gains	9		11
Fixed maturities, Gross Unrealized Capital Losses	2		1
Embedded Derivatives	0		0
Fixed maturities, including securities pledged, Fair Value	846		681
OTTI	1		2
Fixed maturities
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	23,882		23,579
Fixed maturities, Gross Unrealized Capital Gains	1,084		1,599
Fixed maturities, Gross Unrealized Capital Losses	298		148
Embedded Derivatives	10		12
Fixed maturities, including securities pledged, Fair Value	24,678		25,042
OTTI	5		13
Securities pledged, Amortized Cost	776		864
Securities pledged, Gross Unrealized Capital Gains	66		104
Securities pledged, Gross Unrealized Capital Losses	9		8
Securities pledged	833		960
Total fixed maturities, less securities pledged, Amortized Cost	23,106		22,715
Total fixed maturities, less securities pledged, Gross Unrealized Capital Gains	1,018		1,495
Total fixed maturities, less securities pledged, Gross Unrealized Capital Losses	289		140
Total fixed maturities, less securities pledged, Fair Value	$ 23,845		24,082
Equity securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Embedded Derivatives			0
OTTI			0
Total equity securities, Amortized Cost			45
Equity securities, Gross Unrealized Capital Gains			15
Equity securities, Gross Unrealized Capital Losses			0
Equity securities			$ 60

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Investments - Debt Maturities (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Fixed maturities
Available-for-sale Securities Including Securities Pledged [Line Items]
One year or less, Amortized Cost	$ 566
One year or less, Fair Value	572
After one year through five years, Amortized Cost	4,392
After one year through five years, Fair Value	4,498
After five years through ten years, Amortized Cost	6,029
After five years through ten years, Fair Value	6,072
After ten years, Amortized Cost	7,870
After ten years, Fair Value	8,428
Fixed maturities, including securities pledged, Amortized Cost	23,882	$ 23,579
Fixed maturities, including securities pledged, Fair Value	24,678	$ 25,042
Mortgage-backed securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Without single maturity date, Amortized Cost	4,186
Without single maturity date, Fair Value	$ 4,262
Percentage collateralized of mortgage backed securities including interest-only strip or principal-only strip	50.50%	52.10%
Other asset-backed securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Without single maturity date, Amortized Cost	$ 839
Without single maturity date, Fair Value	846
Fixed maturities, including securities pledged, Amortized Cost	839	$ 671
Fixed maturities, including securities pledged, Fair Value	$ 846	$ 681

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Investments - Composition of US and Foreign Corporate Securities (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Communications
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	$ 1,184	$ 1,145
U.S. and foreign corporate securities, Gross Unrealized Capital Gains	82	114
U.S. and foreign corporate securities, Gross Unrealized Capital Losses	8	1
Fixed maturities, including securities pledged, Fair Value	1,258	1,258
Financial
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	2,717	2,750
U.S. and foreign corporate securities, Gross Unrealized Capital Gains	117	185
U.S. and foreign corporate securities, Gross Unrealized Capital Losses	22	4
Fixed maturities, including securities pledged, Fair Value	2,812	2,931
Industrial and other companies
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	7,856	7,953
U.S. and foreign corporate securities, Gross Unrealized Capital Gains	335	532
U.S. and foreign corporate securities, Gross Unrealized Capital Losses	109	65
Fixed maturities, including securities pledged, Fair Value	8,082	8,420
Energy
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	1,974	1,970
U.S. and foreign corporate securities, Gross Unrealized Capital Gains	113	159
U.S. and foreign corporate securities, Gross Unrealized Capital Losses	44	33
Fixed maturities, including securities pledged, Fair Value	2,043	2,096
Utilities
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	2,775	2,725
U.S. and foreign corporate securities, Gross Unrealized Capital Gains	142	216
U.S. and foreign corporate securities, Gross Unrealized Capital Losses	35	11
Fixed maturities, including securities pledged, Fair Value	2,882	2,930
Transportation
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	715	697
U.S. and foreign corporate securities, Gross Unrealized Capital Gains	33	52
U.S. and foreign corporate securities, Gross Unrealized Capital Losses	8	2
Fixed maturities, including securities pledged, Fair Value	740	747
U.S. and Foreign Corporate Securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Fixed maturities, including securities pledged, Amortized Cost	17,221	17,240
U.S. and foreign corporate securities, Gross Unrealized Capital Gains	822	1,258
U.S. and foreign corporate securities, Gross Unrealized Capital Losses	226	116
Fixed maturities, including securities pledged, Fair Value	$ 17,817	$ 18,382

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Investments - Repurchase Agreement, Securities Lending, VIEs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Available-for-sale Securities Including Securities Pledged [Line Items]
Required collateral percentage of market value of loaned securities	102.00%
Securities received as collateral	$ 85	$ 61
Payables under securities loan agreements, including collateral held	694	845
Collateralized loan obligations | Not a primary beneficiary of the VIE
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract]
Carrying value of VIE	425	411
Securities pledged as collateral
Available-for-sale Securities Including Securities Pledged [Line Items]
Fair value of loaned securities	646	799
Short-term Investments
Available-for-sale Securities Including Securities Pledged [Line Items]
Securities received as collateral	581	744
Payables under securities loan agreement, including collateral held
Available-for-sale Securities Including Securities Pledged [Line Items]
Payables under securities loan agreements, including collateral held	581	744
U.S. Treasuries
Available-for-sale Securities Including Securities Pledged [Line Items]
Payables under securities loan agreements, including collateral held	80	177
U.S. corporate public securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Payables under securities loan agreements, including collateral held	445	460
Foreign corporate public securities and foreign governments
Available-for-sale Securities Including Securities Pledged [Line Items]
Payables under securities loan agreements, including collateral held	141	168
Payables under securities loan agreements
Available-for-sale Securities Including Securities Pledged [Line Items]
Payables under securities loan agreements, including collateral held	$ 666	$ 805

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Investments - Unrealized Capital Losses (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Available-for-sale Securities Including Securities Pledged [Line Items]
Six Months or Less Below Amortized Cost, Fair Value	$ 5,563	$ 1,859
Six Months or Less Below Amortized Cost, Unrealized Capital Loss	106	63
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value	889	119
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss	64	3
More Than Twelve Months Below Amortized Cost, Fair Value	1,524	1,692
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss	128	82
Total, Fair Value	7,976	3,670
Total Unrealized Capital Losses	$ 298	$ 148
Average market value of fixed maturities with unrealized capital losses aged more than twelve months	92.30%	95.40%
U.S. Treasuries
Available-for-sale Securities Including Securities Pledged [Line Items]
Six Months or Less Below Amortized Cost, Fair Value	$ 15	$ 18
Six Months or Less Below Amortized Cost, Unrealized Capital Loss	0	0
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value	0	0
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss	0	0
More Than Twelve Months Below Amortized Cost, Fair Value	12	12
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss	1	0
Total, Fair Value	27	30
Total Unrealized Capital Losses	1	0
State, municipalities and political subdivisions
Available-for-sale Securities Including Securities Pledged [Line Items]
Six Months or Less Below Amortized Cost, Fair Value	183	34
Six Months or Less Below Amortized Cost, Unrealized Capital Loss	2	0
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value	17	1
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss	1	0
More Than Twelve Months Below Amortized Cost, Fair Value	89	91
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss	5	4
Total, Fair Value	289	126
Total Unrealized Capital Losses	8	4
U.S. corporate public securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Six Months or Less Below Amortized Cost, Fair Value	1,904	504
Six Months or Less Below Amortized Cost, Unrealized Capital Loss	38	11
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value	184	0
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss	13	0
More Than Twelve Months Below Amortized Cost, Fair Value	228	304
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss	22	15
Total, Fair Value	2,316	808
Total Unrealized Capital Losses	73	26
U.S. corporate private securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Six Months or Less Below Amortized Cost, Fair Value	932	226
Six Months or Less Below Amortized Cost, Unrealized Capital Loss	17	2
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value	146	46
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss	8	2
More Than Twelve Months Below Amortized Cost, Fair Value	475	499
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss	53	34
Total, Fair Value	1,553	771
Total Unrealized Capital Losses	78	38
Foreign corporate public securities and foreign governments
Available-for-sale Securities Including Securities Pledged [Line Items]
Six Months or Less Below Amortized Cost, Fair Value	766	148
Six Months or Less Below Amortized Cost, Unrealized Capital Loss	18	1
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value	40	5
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss	3	0
More Than Twelve Months Below Amortized Cost, Fair Value	83	99
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss	10	8
Total, Fair Value	889	252
Total Unrealized Capital Losses	31	9
Foreign corporate private securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Six Months or Less Below Amortized Cost, Fair Value	711	135
Six Months or Less Below Amortized Cost, Unrealized Capital Loss	13	38
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value	70	13
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss	21	0
More Than Twelve Months Below Amortized Cost, Fair Value	166	161
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss	14	7
Total, Fair Value	947	309
Total Unrealized Capital Losses	48	45
Residential mortgage-backed
Available-for-sale Securities Including Securities Pledged [Line Items]
Six Months or Less Below Amortized Cost, Fair Value	334	263
Six Months or Less Below Amortized Cost, Unrealized Capital Loss	7	5
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value	147	26
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss	8	1
More Than Twelve Months Below Amortized Cost, Fair Value	418	438
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss	21	13
Total, Fair Value	899	727
Total Unrealized Capital Losses	36	19
Commercial mortgage-backed
Available-for-sale Securities Including Securities Pledged [Line Items]
Six Months or Less Below Amortized Cost, Fair Value	573	436
Six Months or Less Below Amortized Cost, Unrealized Capital Loss	10	5
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value	240	19
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss	9	0
More Than Twelve Months Below Amortized Cost, Fair Value	37	50
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss	2	1
Total, Fair Value	850	505
Total Unrealized Capital Losses	21	6
Other asset-backed securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Six Months or Less Below Amortized Cost, Fair Value	145	95
Six Months or Less Below Amortized Cost, Unrealized Capital Loss	1	1
More Than Six Months and Twelve Months or Less Below Amortized Cost, Fair Value	45	9
More Than Six Months and Twelve Months or Less Below Amortized Cost, Unrealized Capital Loss	1	0
More Than Twelve Months Below Amortized Cost, Fair Value	16	38
More Than Twelve Months Below Amortized Cost, Unrealized Capital Loss	0	0
Total, Fair Value	206	142
Total Unrealized Capital Losses	$ 2	$ 1

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Investments - Unrealized Capital Losses 1 (Details) $ in Millions	Mar. 31, 2018 USD ($) securities	Dec. 31, 2017 USD ($) securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Six months or less below amortized cost, Unrealized Capital Loss	$ 106	$ 63
More than six months and twelve months or less below amortized cost, Unrealized Capital Loss	64	3
More than twelve months below amortized cost, Unrealized Capital Loss	128	82
Total Unrealized Capital Losses	298	148
Fair value decline below amortized cost less than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Six months or less below amortized cost, Amortized Cost	5,668	1,883
Six months or less below amortized cost, Unrealized Capital Loss	$ 107	$ 30
Six months or less below amortized cost, Number of Securities | securities	1,139	433
More than six months and twelve months or less below amortized cost, Amortized Cost	$ 901	$ 128
More than six months and twelve months or less below amortized cost, Unrealized Capital Loss	$ 44	$ 4
More than six months and twelve months or less below amortized cost, Number of Securities | securities	181	37
More than twelve months below amortized cost, Amortized Cost	$ 1,536	$ 1,661
More than twelve months below amortized cost, Unrealized Capital Loss	$ 95	$ 53
More than twelve months below amortized cost, Number of Securities | securities	324	335
Total Amortized Cost	$ 8,105	$ 3,672
Total Unrealized Capital Losses	$ 246	$ 87
Total Number of Securities | securities	1,644	805
Fair value decline below amortized cost greater than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Six months or less below amortized cost, Amortized Cost	$ 89	$ 67
Six months or less below amortized cost, Unrealized Capital Loss	$ 28	$ 38
Six months or less below amortized cost, Number of Securities | securities	9	7
More than six months and twelve months or less below amortized cost, Amortized Cost	$ 1	$ 7
More than six months and twelve months or less below amortized cost, Unrealized Capital Loss	$ 0	$ 2
More than six months and twelve months or less below amortized cost, Number of Securities | securities	1	1
More than twelve months below amortized cost, Amortized Cost	$ 79	$ 72
More than twelve months below amortized cost, Unrealized Capital Loss	$ 24	$ 21
More than twelve months below amortized cost, Number of Securities | securities	6	7
Total Amortized Cost	$ 169	$ 146
Total Unrealized Capital Losses	$ 52	$ 61
Total Number of Securities | securities	16	15
U.S. Treasuries
Available-for-sale Securities Including Securities Pledged [Line Items]
Six months or less below amortized cost, Unrealized Capital Loss	$ 0	$ 0
More than six months and twelve months or less below amortized cost, Unrealized Capital Loss	0	0
More than twelve months below amortized cost, Unrealized Capital Loss	1	0
Total Unrealized Capital Losses	1	0
U.S. Treasuries | Fair value decline below amortized cost less than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	28	30
Total Unrealized Capital Losses	$ 1	$ 0
Total Number of Securities | securities	6	6
U.S. Treasuries | Fair value decline below amortized cost greater than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	$ 0	$ 0
Total Unrealized Capital Losses	$ 0	$ 0
Total Number of Securities | securities	0	0
State, municipalities and political subdivisions
Available-for-sale Securities Including Securities Pledged [Line Items]
Six months or less below amortized cost, Unrealized Capital Loss	$ 2	$ 0
More than six months and twelve months or less below amortized cost, Unrealized Capital Loss	1	0
More than twelve months below amortized cost, Unrealized Capital Loss	5	4
Total Unrealized Capital Losses	8	4
State, municipalities and political subdivisions | Fair value decline below amortized cost less than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	297	130
Total Unrealized Capital Losses	$ 8	$ 4
Total Number of Securities | securities	167	96
State, municipalities and political subdivisions | Fair value decline below amortized cost greater than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	$ 0	$ 0
Total Unrealized Capital Losses	$ 0	$ 0
Total Number of Securities | securities	0	0
U.S. corporate public securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Six months or less below amortized cost, Unrealized Capital Loss	$ 38	$ 11
More than six months and twelve months or less below amortized cost, Unrealized Capital Loss	13	0
More than twelve months below amortized cost, Unrealized Capital Loss	22	15
Total Unrealized Capital Losses	73	26
U.S. corporate public securities | Fair value decline below amortized cost less than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	2,356	828
Total Unrealized Capital Losses	$ 65	$ 24
Total Number of Securities | securities	513	167
U.S. corporate public securities | Fair value decline below amortized cost greater than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	$ 33	$ 6
Total Unrealized Capital Losses	$ 8	$ 2
Total Number of Securities | securities	3	2
U.S. corporate private securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Six months or less below amortized cost, Unrealized Capital Loss	$ 17	$ 2
More than six months and twelve months or less below amortized cost, Unrealized Capital Loss	8	2
More than twelve months below amortized cost, Unrealized Capital Loss	53	34
Total Unrealized Capital Losses	78	38
U.S. corporate private securities | Fair value decline below amortized cost less than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	1,564	743
Total Unrealized Capital Losses	$ 57	$ 18
Total Number of Securities | securities	176	71
U.S. corporate private securities | Fair value decline below amortized cost greater than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	$ 67	$ 66
Total Unrealized Capital Losses	$ 21	$ 20
Total Number of Securities | securities	2	2
Foreign corporate public securities and foreign governments
Available-for-sale Securities Including Securities Pledged [Line Items]
Six months or less below amortized cost, Unrealized Capital Loss	$ 18	$ 1
More than six months and twelve months or less below amortized cost, Unrealized Capital Loss	3	0
More than twelve months below amortized cost, Unrealized Capital Loss	10	8
Total Unrealized Capital Losses	31	9
Foreign corporate public securities and foreign governments | Fair value decline below amortized cost less than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	908	254
Total Unrealized Capital Losses	$ 28	$ 7
Total Number of Securities | securities	197	61
Foreign corporate public securities and foreign governments | Fair value decline below amortized cost greater than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	$ 12	$ 7
Total Unrealized Capital Losses	$ 3	$ 2
Total Number of Securities | securities	2	1
Foreign corporate private securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Six months or less below amortized cost, Unrealized Capital Loss	$ 13	$ 38
More than six months and twelve months or less below amortized cost, Unrealized Capital Loss	21	0
More than twelve months below amortized cost, Unrealized Capital Loss	14	7
Total Unrealized Capital Losses	48	45
Foreign corporate private securities | Fair value decline below amortized cost less than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	939	288
Total Unrealized Capital Losses	$ 28	$ 8
Total Number of Securities | securities	101	35
Foreign corporate private securities | Fair value decline below amortized cost greater than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	$ 56	$ 66
Total Unrealized Capital Losses	$ 20	$ 37
Total Number of Securities | securities	5	6
Residential mortgage-backed
Available-for-sale Securities Including Securities Pledged [Line Items]
Six months or less below amortized cost, Unrealized Capital Loss	$ 7	$ 5
More than six months and twelve months or less below amortized cost, Unrealized Capital Loss	8	1
More than twelve months below amortized cost, Unrealized Capital Loss	21	13
Total Unrealized Capital Losses	36	19
Residential mortgage-backed | Fair value decline below amortized cost less than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	935	746
Total Unrealized Capital Losses	$ 36	$ 19
Total Number of Securities | securities	233	194
Residential mortgage-backed | Fair value decline below amortized cost greater than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	$ 0	$ 0
Total Unrealized Capital Losses	$ 0	$ 0
Total Number of Securities | securities	2	3
Commercial mortgage-backed
Available-for-sale Securities Including Securities Pledged [Line Items]
Six months or less below amortized cost, Unrealized Capital Loss	$ 10	$ 5
More than six months and twelve months or less below amortized cost, Unrealized Capital Loss	9	0
More than twelve months below amortized cost, Unrealized Capital Loss	2	1
Total Unrealized Capital Losses	21	6
Commercial mortgage-backed | Fair value decline below amortized cost less than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	871	511
Total Unrealized Capital Losses	$ 21	$ 6
Total Number of Securities | securities	185	131
Commercial mortgage-backed | Fair value decline below amortized cost greater than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	$ 0	$ 0
Total Unrealized Capital Losses	$ 0	$ 0
Total Number of Securities | securities	0	0
Other asset-backed securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Six months or less below amortized cost, Unrealized Capital Loss	$ 1	$ 1
More than six months and twelve months or less below amortized cost, Unrealized Capital Loss	1	0
More than twelve months below amortized cost, Unrealized Capital Loss	0	0
Total Unrealized Capital Losses	2	1
Other asset-backed securities | Fair value decline below amortized cost less than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	207	142
Total Unrealized Capital Losses	$ 2	$ 1
Total Number of Securities | securities	66	44
Other asset-backed securities | Fair value decline below amortized cost greater than 20%
Available-for-sale Securities Including Securities Pledged [Line Items]
Total Amortized Cost	$ 1	$ 1
Total Unrealized Capital Losses	$ 0	$ 0
Total Number of Securities | securities	2	1

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Investments - Troubled Debt Restructuring (Details) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018 USD ($) loan	Mar. 31, 2017 loan	Dec. 31, 2017 USD ($) loan
Financing Receivable, Modifications [Line Items]
Troubled debt restructured loans, subsequent payment default, number	0	0
Private placement debt
Financing Receivable, Modifications [Line Items]
Troubled debt restructured loans, number		0	0
Pre-modification carrying value | $			$ 3.0
Post-modification carrying value | $	$ 3.3
Commercial mortgage
Financing Receivable, Modifications [Line Items]
Troubled debt restructured loans, number	0	1

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Investments - Mortgage Loans (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Maximum loan to value ratio generally allowed	75.00%
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total commercial mortgage loans	$ 4,892,000,000		$ 4,911,000,000
Collective valuation allowance for losses	(1,000,000)		(1,000,000)
Total net commercial mortgage loans	4,891,000,000		4,910,000,000
Impairment of Real Estate	0	$ 0
Mortgage loans in process of foreclosure	0		0
30 days or less in arrears
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans in arrears	0		0
Impaired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total commercial mortgage loans	4,000,000		4,000,000
Total net commercial mortgage loans	4,000,000		4,000,000
Non Impaired
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total commercial mortgage loans	4,888,000,000		4,907,000,000
Collective valuation allowance for losses	(1,000,000)		(1,000,000)
Total net commercial mortgage loans	$ 4,887,000,000		$ 4,906,000,000

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Investments - Allowance for Loan Losses (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Collective valuation allowance for losses, beginning of period	$ 1	$ 1
Addition to (reduction of) allowance for losses	0	0
Collective valuation allowance for losses, end of period	$ 1	$ 1

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Investments - Impaired Loans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Impaired loans without valuation allowances	$ 4		$ 4
Less: Allowances for losses on impaired loans	0		0
Impaired loans, net	4		4
Unpaid principal balance of impaired loans	6		$ 6
Impaired loans, average investment during the period (amortized cost)	4	$ 5
Interest income recognized on impaired loans, on an accrual basis	0	0
Interest income recognized on impaired loans, on a cash basis	0	0
Interest income recognized on troubled debt restructured loans, on an accrual basis	$ 0	$ 0

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Investments - Loans by Loan to Value (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Schedule of Loans by Loan to Value Ratio [Line Items]
Benchmark loan to value ratio, greater than indicates unpaid loan amount exceeds underlying collateral	100.00%	100.00%
Total commercial mortgage loans	$ 4,892		$ 4,911
0% - 50%
Schedule of Loans by Loan to Value Ratio [Line Items]
Loan to Value Ratio, minimum	0.00%	0.00%
Loan to Value Ratio, maximum	50.00%	50.00%
Commercial mortgage loans	$ 343		341
50% - 60%
Schedule of Loans by Loan to Value Ratio [Line Items]
Loan to Value Ratio, minimum	50.00%	50.00%
Loan to Value Ratio, maximum	60.00%	60.00%
Commercial mortgage loans	$ 1,291		1,256
60% - 70%
Schedule of Loans by Loan to Value Ratio [Line Items]
Loan to Value Ratio, minimum	60.00%	60.00%
Loan to Value Ratio, maximum	70.00%	70.00%
Commercial mortgage loans	$ 2,971		3,042
70% - 80%
Schedule of Loans by Loan to Value Ratio [Line Items]
Loan to Value Ratio, minimum	70.00%	70.00%
Loan to Value Ratio, maximum	80.00%	80.00%
Commercial mortgage loans	$ 276		262
80% and above
Schedule of Loans by Loan to Value Ratio [Line Items]
Loan to Value Ratio, minimum	80.00%	80.00%
Commercial mortgage loans	$ 11		$ 10

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Investments - Loans by Debt Service Coverage Ratio (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Schedule of Loans by Debt Service Coverage Ratio [Line Items]
Benchmark debt service coverage ratio, less than indicates property's operations income is less than debt payments	100.00%	100.00%
Loans Receivable, Gross, Commercial, Development	$ 17		$ 15
Total commercial mortgage loans	$ 4,892		4,911
Greater than 1.5x
Schedule of Loans by Debt Service Coverage Ratio [Line Items]
Debt Service Coverage Ratio, minimum	150.00%	150.00%
Commercial mortgage loans	$ 3,793		3,902
1.25x - 1.5x
Schedule of Loans by Debt Service Coverage Ratio [Line Items]
Debt Service Coverage Ratio, minimum	125.00%	125.00%
Debt Service Coverage Ratio, maximum	150.00%	150.00%
Commercial mortgage loans	$ 355		340
1.0x - 1.25x
Schedule of Loans by Debt Service Coverage Ratio [Line Items]
Debt Service Coverage Ratio, minimum	100.00%	100.00%
Debt Service Coverage Ratio, maximum	125.00%	125.00%
Commercial mortgage loans	$ 645		600
Less than 1.0x
Schedule of Loans by Debt Service Coverage Ratio [Line Items]
Debt Service Coverage Ratio, minimum	0.00%	0.00%
Debt Service Coverage Ratio, maximum	100.00%	100.00%
Commercial mortgage loans	$ 82		$ 54

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Investments - Loans by U.S. Region (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Open Option Contracts Written [Line Items]
Total commercial mortgage loans	$ 4,892	$ 4,911
Loans by region percentage of total loans	100.00%	100.00%
Pacific
Open Option Contracts Written [Line Items]
Total commercial mortgage loans	$ 987	$ 985
Loans by region percentage of total loans	20.20%	20.10%
South Atlantic
Open Option Contracts Written [Line Items]
Total commercial mortgage loans	$ 996	$ 982
Loans by region percentage of total loans	20.30%	20.00%
West South Central
Open Option Contracts Written [Line Items]
Total commercial mortgage loans	$ 544	$ 552
Loans by region percentage of total loans	11.10%	11.20%
Middle Atlantic
Open Option Contracts Written [Line Items]
Total commercial mortgage loans	$ 1,101	$ 1,097
Loans by region percentage of total loans	22.40%	22.40%
East North Central
Open Option Contracts Written [Line Items]
Total commercial mortgage loans	$ 454	$ 468
Loans by region percentage of total loans	9.30%	9.50%
Mountain
Open Option Contracts Written [Line Items]
Total commercial mortgage loans	$ 463	$ 457
Loans by region percentage of total loans	9.50%	9.30%
West North Central
Open Option Contracts Written [Line Items]
Total commercial mortgage loans	$ 229	$ 243
Loans by region percentage of total loans	4.70%	4.90%
East South Central
Open Option Contracts Written [Line Items]
Total commercial mortgage loans	$ 42	$ 50
Loans by region percentage of total loans	0.90%	1.00%
New England
Open Option Contracts Written [Line Items]
Total commercial mortgage loans	$ 76	$ 77
Loans by region percentage of total loans	1.60%	1.60%

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Investments - Loans by Property Type (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Investment Holdings [Line Items]
Total commercial mortgage loans	$ 4,892	$ 4,911
Loans by property type percentage of total loans	100.00%	100.00%
Retail
Investment Holdings [Line Items]
Total commercial mortgage loans	$ 1,383	$ 1,383
Loans by property type percentage of total loans	28.30%	28.10%
Industrial
Investment Holdings [Line Items]
Total commercial mortgage loans	$ 1,273	$ 1,326
Loans by property type percentage of total loans	26.10%	27.00%
Apartments
Investment Holdings [Line Items]
Total commercial mortgage loans	$ 951	$ 948
Loans by property type percentage of total loans	19.40%	19.30%
Office
Investment Holdings [Line Items]
Total commercial mortgage loans	$ 842	$ 829
Loans by property type percentage of total loans	17.20%	16.90%
Hotel/Motel
Investment Holdings [Line Items]
Total commercial mortgage loans	$ 178	$ 177
Loans by property type percentage of total loans	3.60%	3.60%
Mixed Use
Investment Holdings [Line Items]
Total commercial mortgage loans	$ 51	$ 52
Loans by property type percentage of total loans	1.00%	1.10%
Other
Investment Holdings [Line Items]
Total commercial mortgage loans	$ 214	$ 196
Loans by property type percentage of total loans	4.40%	4.00%

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Investments - Mortgages by Year of Origination (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Investment [Line Items]
Total commercial mortgage loans	$ 4,892	$ 4,911
Year of Origination 2018
Investment [Line Items]
Total commercial mortgage loans	137	0
Year of Origination 2017
Investment [Line Items]
Total commercial mortgage loans	1,073	1,086
Year of Origination 2016
Investment [Line Items]
Total commercial mortgage loans	857	867
Year of Origination 2015
Investment [Line Items]
Total commercial mortgage loans	700	703
Year of Origination 2014
Investment [Line Items]
Total commercial mortgage loans	523	538
Year of Origination 2013
Investment [Line Items]
Total commercial mortgage loans	638	644
Year of Origination 2012 and prior
Investment [Line Items]
Total commercial mortgage loans	$ 964	$ 1,073

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Investments - OTTI (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018 USD ($) securities	Mar. 31, 2017 USD ($) securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Impairment	$ 9.0	$ 0.0
No. of Securities | securities	7	8
Write-downs related to credit impairments	$ 9.0
Impairment, Intent impairments	0.0
Foreign corporate private securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Impairment	$ 9.0	$ 0.0
No. of Securities | securities	1	0
Residential mortgage-backed
Available-for-sale Securities Including Securities Pledged [Line Items]
Impairment	$ 0.0	$ 0.0
No. of Securities | securities	6	8

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Investments - OTTI OCI (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other than Temporary Impairment, Recognized in Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning	$ 16	$ 9
Additional Credit Impairments [Abstract]
On securities previously impaired	0	0
Reductions [Abstract]
Increase in cash flows	0	0
Securities sold, matured, prepaid, or paid down	10	1
Balance, ending	$ 6	$ 8

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Investments - Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	$ 399	$ 396
Less: investment expense	17	17
Net investment income	382	379
Fixed maturities
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	323	326
Investments in fixed maturities that did not produce net income	1		$ 3
Equity securities
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	1	1
Mortgage loans on real estate
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	53	51
Policy loans
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	2	3
Short-term investments and cash equivalents
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	1	0
Other
Schedule of Investment Income, Reported Amounts, by Category [Line Items]
Gross investment income	$ 19	$ 15

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Investments - Net Realized Capital Gains (Losses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Available-for-sale Securities Including Securities Pledged [Line Items]
Equity Securities, Securities Still Held, Change in Fair Value Recognized through the Income Statement	$ (2)
Realized capital gains (losses)	(87)	$ (55)
After-tax net realized capital gains (losses), after tax	(79)	(36)
Proceeds from sale of investments
Proceeds on sales	660	1,077
Gross gains	4	5
Gross losses	7	18
Derivatives
Available-for-sale Securities Including Securities Pledged [Line Items]
Realized capital gains (losses)	5	4
Other investments
Available-for-sale Securities Including Securities Pledged [Line Items]
Realized capital gains (losses)	5	0
Fixed Maturities, Available-for-sale, Including Securities Pledged
Available-for-sale Securities Including Securities Pledged [Line Items]
Realized capital gains (losses)	(14)	(19)
Fixed maturities, at fair value using the fair value option
Available-for-sale Securities Including Securities Pledged [Line Items]
Realized capital gains (losses)	(99)	(59)
Equity securities
Available-for-sale Securities Including Securities Pledged [Line Items]
Realized capital gains (losses)	(2)	0
Embedded derivatives - fixed maturities
Available-for-sale Securities Including Securities Pledged [Line Items]
Realized capital gains (losses)	(2)	(1)
Guaranteed benefit derivatives
Available-for-sale Securities Including Securities Pledged [Line Items]
Realized capital gains (losses)	$ 20	$ 20

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Derivative Financial Instruments - Notional and Fair Values (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Derivatives, Asset Fair Value	$ 158	$ 148
Derivatives, Liability Fair Value	146	181
Credit contracts
Derivatives, Fair Value [Line Items]
Derivatives, Notional Amount	681	771
Interest rate contracts
Derivatives, Fair Value [Line Items]
Derivatives, Notional Amount	14,755	17,286
Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Derivatives, Notional Amount	580	559
Equity contract
Derivatives, Fair Value [Line Items]
Derivatives, Notional Amount	144	154
Designated as Hedging Instrument | Cash flow hedges | Interest rate contracts
Derivatives, Fair Value [Line Items]
Derivatives, Notional Amount	35	35
Designated as Hedging Instrument | Cash flow hedges | Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Derivatives, Notional Amount	569	533
Designated as Hedging Instrument | Cash flow hedges | Derivatives | Interest rate contracts
Derivatives, Fair Value [Line Items]
Derivatives, Asset Fair Value	0	0
Derivatives, Liability Fair Value	0	0
Designated as Hedging Instrument | Cash flow hedges | Derivatives | Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Derivatives, Asset Fair Value	1	0
Derivatives, Liability Fair Value	77	52
Not Designated as Hedging Instrument | Credit contracts
Derivatives, Fair Value [Line Items]
Derivatives, Notional Amount	681	771
Not Designated as Hedging Instrument | Interest rate contracts
Derivatives, Fair Value [Line Items]
Derivatives, Notional Amount	17,188	18,769
Not Designated as Hedging Instrument | Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Derivatives, Notional Amount	11	26
Not Designated as Hedging Instrument | Equity contract
Derivatives, Fair Value [Line Items]
Derivatives, Notional Amount	144	154
Not Designated as Hedging Instrument | Fixed maturities
Derivatives, Fair Value [Line Items]
Derivatives, Asset Fair Value	10	12
Derivatives, Liability Fair Value	0	0
Not Designated as Hedging Instrument | Within products
Derivatives, Fair Value [Line Items]
Derivatives, Asset Fair Value	0	0
Derivatives, Liability Fair Value	95	117
Not Designated as Hedging Instrument | Reinsurance agreements
Derivatives, Fair Value [Line Items]
Derivatives, Asset Fair Value	0	0
Derivatives, Liability Fair Value	(51)	(21)
Not Designated as Hedging Instrument | Derivatives | Credit contracts
Derivatives, Fair Value [Line Items]
Derivatives, Asset Fair Value	8	10
Derivatives, Liability Fair Value	4	6
Not Designated as Hedging Instrument | Derivatives | Interest rate contracts
Derivatives, Fair Value [Line Items]
Derivatives, Asset Fair Value	133	117
Derivatives, Liability Fair Value	16	20
Not Designated as Hedging Instrument | Derivatives | Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Derivatives, Asset Fair Value	0	0
Derivatives, Liability Fair Value	0	0
Not Designated as Hedging Instrument | Derivatives | Equity contract
Derivatives, Fair Value [Line Items]
Derivatives, Asset Fair Value	6	9
Derivatives, Liability Fair Value	$ 5	$ 7

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Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Offsetting Assets and liabilities [Line Items]
Asset Fair Value	$ 148	$ 136
Liability Fair Value	102	85
Counterparty netting, Assets	(38)	(50)
Counterparty netting, Liabilities	(38)	(50)
Cash collateral netting, Assets	(106)	(84)
Cash collateral netting, Liabilities	0	0
Securities collateral netting, Assets	0	0
Securities collateral netting, Liabilities	(64)	(30)
Net receivables	4	2
Net payables	0	5
Credit contracts
Offsetting Assets and liabilities [Line Items]
Notional Amount	681	771
Asset Fair Value	8	10
Liability Fair Value	4	6
Equity contract
Offsetting Assets and liabilities [Line Items]
Notional Amount	144	154
Asset Fair Value	6	9
Liability Fair Value	5	7
Foreign exchange contracts
Offsetting Assets and liabilities [Line Items]
Notional Amount	580	559
Asset Fair Value	1	0
Liability Fair Value	77	52
Interest rate contracts
Offsetting Assets and liabilities [Line Items]
Notional Amount	14,755	17,286
Asset Fair Value	133	117
Liability Fair Value	$ 16	$ 20

XML

Derivative Financial Instruments - Net Realized Gains (Losses) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Derivatives, Fair Value [Line Items]
Net realized gains (losses) on derivatives	$ 52	$ 20
Other Net Realized Capital Gains (Losses) | Fixed maturities
Derivatives, Fair Value [Line Items]
Net realized gains (losses) on derivatives	(2)	(2)
Other Net Realized Capital Gains (Losses) | Within products
Derivatives, Fair Value [Line Items]
Net realized gains (losses) on derivatives	20	20
Interest Credited and Other Benefits to Contract Owners | Reinsurance agreements
Derivatives, Fair Value [Line Items]
Net realized gains (losses) on derivatives	29	(2)
Designated as Hedging Instrument | Cash flow hedges | Other Net Realized Capital Gains (Losses) | Interest rate contracts
Derivatives, Fair Value [Line Items]
Net realized gains (losses) on derivatives	0	0
Designated as Hedging Instrument | Cash flow hedges | Other Net Realized Capital Gains (Losses) | Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Net realized gains (losses) on derivatives	1	7
Not Designated as Hedging Instrument | Other Net Realized Capital Gains (Losses) | Credit contracts
Derivatives, Fair Value [Line Items]
Net realized gains (losses) on derivatives	0	1
Not Designated as Hedging Instrument | Other Net Realized Capital Gains (Losses) | Interest rate contracts
Derivatives, Fair Value [Line Items]
Net realized gains (losses) on derivatives	5	(3)
Not Designated as Hedging Instrument | Other Net Realized Capital Gains (Losses) | Foreign exchange contracts
Derivatives, Fair Value [Line Items]
Net realized gains (losses) on derivatives	(1)	(2)
Not Designated as Hedging Instrument | Other Net Realized Capital Gains (Losses) | Equity contract
Derivatives, Fair Value [Line Items]
Net realized gains (losses) on derivatives	$ 0	$ 1

XML

Derivative Financial Instruments - Collateral and Credit Default Swaps (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Derivatives, Fair Value [Line Items]
Derivative assets	$ 158		$ 148
Derivatives liabilities	146		181
Not Designated as Hedging Instrument | Credit contracts
Derivatives, Fair Value [Line Items]
Maximum potential future net exposure on sale of credit default swaps	$ 422		497
Maturity period of derivative	5 years	5 years
Payables under securities loan agreement, including collateral held | Over the Counter [Member]
Derivatives, Fair Value [Line Items]
Cash collateral held for securities loan agreement	$ 6		11
Payables under securities loan agreement, including collateral held | Exchange Cleared [Member]
Derivatives, Fair Value [Line Items]
Cash collateral held for securities loan agreement	101		74
Securities pledged as collateral
Derivatives, Fair Value [Line Items]
Cash collateral held for securities loan agreement	0		0
Securities delivered as collateral	187		161
Derivatives | Not Designated as Hedging Instrument | Credit contracts
Derivatives, Fair Value [Line Items]
Derivative assets	8		10
Derivatives liabilities	$ 4		$ 6

XML

Fair Value Measurements - Fair Value Measurement (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Assets:
Derivatives	$ 148	$ 136
Assets held in separate accounts	73,489	73,036
Liabilities:
Derivatives	102	85
Fixed maturities
Assets:
Fixed maturities, including securities pledged	24,678	25,042
U.S. Treasuries
Assets:
Fixed maturities, including securities pledged	552	656
U.S. government agencies and authorities
Assets:
Fixed maturities, including securities pledged	0	3
State, municipalities and political subdivisions
Assets:
Fixed maturities, including securities pledged	859	878
U.S. corporate public securities
Assets:
Fixed maturities, including securities pledged	8,792	9,236
U.S. corporate private securities
Assets:
Fixed maturities, including securities pledged	3,395	3,497
Foreign corporate public securities and foreign governments
Assets:
Fixed maturities, including securities pledged	2,696	2,777
Foreign corporate private securities
Assets:
Fixed maturities, including securities pledged	3,276	3,215
Residential mortgage-backed
Assets:
Fixed maturities, including securities pledged	2,695	2,629
Commercial mortgage-backed
Assets:
Fixed maturities, including securities pledged	1,567	1,470
Other asset-backed securities
Assets:
Fixed maturities, including securities pledged	846	681
Equity securities
Assets:
Equity securities		60
Assets measured on recurring basis
Assets:
Fixed maturities, including securities pledged	24,678	25,042
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreement	1,010	1,078
Assets held in separate accounts	73,489	73,036
Total assets, fair value	$ 99,383	$ 99,352
Percentage of Level to total assets	100.00%	100.00%
Liabilities:
Total liabilities, fair value	$ 146	$ 181
Assets measured on recurring basis | FIA
Liabilities:
Product guarantees	18	20
Assets measured on recurring basis | Stabilizer and MCGs
Liabilities:
Product guarantees	77	97
Assets measured on recurring basis | Credit contracts
Assets:
Derivatives	8	10
Liabilities:
Derivatives	4	6
Assets measured on recurring basis | Interest rate contracts
Assets:
Derivatives	133	117
Liabilities:
Derivatives	16	20
Assets measured on recurring basis | Foreign exchange contracts
Assets:
Derivatives	1	0
Liabilities:
Derivatives	77	52
Assets measured on recurring basis | Equity contract
Assets:
Derivatives	6	9
Liabilities:
Derivatives	5	7
Assets measured on recurring basis | Embedded derivative on reinsurance
Liabilities:
Embedded derivative on reinsurance	(51)	(21)
Assets measured on recurring basis | U.S. Treasuries
Assets:
Fixed maturities, including securities pledged	552	656
Assets measured on recurring basis | U.S. government agencies and authorities
Assets:
Fixed maturities, including securities pledged	0	3
Assets measured on recurring basis | State, municipalities and political subdivisions
Assets:
Fixed maturities, including securities pledged	859	878
Assets measured on recurring basis | U.S. corporate public securities
Assets:
Fixed maturities, including securities pledged	8,792	9,236
Assets measured on recurring basis | U.S. corporate private securities
Assets:
Fixed maturities, including securities pledged	3,395	3,497
Assets measured on recurring basis | Foreign corporate public securities and foreign governments
Assets:
Fixed maturities, including securities pledged	2,696	2,777
Assets measured on recurring basis | Foreign corporate private securities
Assets:
Fixed maturities, including securities pledged	3,276	3,215
Assets measured on recurring basis | Residential mortgage-backed
Assets:
Fixed maturities, including securities pledged	2,695	2,629
Assets measured on recurring basis | Commercial mortgage-backed
Assets:
Fixed maturities, including securities pledged	1,567	1,470
Assets measured on recurring basis | Other asset-backed securities
Assets:
Fixed maturities, including securities pledged	846	681
Assets measured on recurring basis | Equity securities
Assets:
Equity securities	58	60
Assets measured on recurring basis | Level 1
Assets:
Fixed maturities, including securities pledged	494	597
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreement	1,010	1,078
Assets held in separate accounts	68,387	67,966
Total assets, fair value	$ 69,901	$ 69,651
Percentage of Level to total assets	70.00%	70.00%
Liabilities:
Total liabilities, fair value	$ 0	$ 0
Assets measured on recurring basis | Level 1 | FIA
Liabilities:
Product guarantees	0	0
Assets measured on recurring basis | Level 1 | Stabilizer and MCGs
Liabilities:
Product guarantees	0	0
Assets measured on recurring basis | Level 1 | Credit contracts
Assets:
Derivatives	0	0
Liabilities:
Derivatives	0	0
Assets measured on recurring basis | Level 1 | Interest rate contracts
Assets:
Derivatives	0	0
Liabilities:
Derivatives	0	0
Assets measured on recurring basis | Level 1 | Foreign exchange contracts
Assets:
Derivatives	0	0
Liabilities:
Derivatives	0	0
Assets measured on recurring basis | Level 1 | Equity contract
Assets:
Derivatives	0	0
Liabilities:
Derivatives	0	0
Assets measured on recurring basis | Level 1 | Embedded derivative on reinsurance
Liabilities:
Embedded derivative on reinsurance	0	0
Assets measured on recurring basis | Level 1 | U.S. Treasuries
Assets:
Fixed maturities, including securities pledged	494	597
Assets measured on recurring basis | Level 1 | U.S. government agencies and authorities
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 1 | State, municipalities and political subdivisions
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 1 | U.S. corporate public securities
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 1 | U.S. corporate private securities
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 1 | Foreign corporate public securities and foreign governments
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 1 | Foreign corporate private securities
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 1 | Residential mortgage-backed
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 1 | Commercial mortgage-backed
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 1 | Other asset-backed securities
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 1 | Equity securities
Assets:
Equity securities	10	10
Assets measured on recurring basis | Level 2
Assets:
Fixed maturities, including securities pledged	23,218	23,614
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreement	0	0
Assets held in separate accounts	5,091	5,059
Total assets, fair value	$ 28,457	$ 28,809
Percentage of Level to total assets	29.00%	29.00%
Liabilities:
Total liabilities, fair value	$ 51	$ 64
Assets measured on recurring basis | Level 2 | FIA
Liabilities:
Product guarantees	0	0
Assets measured on recurring basis | Level 2 | Stabilizer and MCGs
Liabilities:
Product guarantees	0	0
Assets measured on recurring basis | Level 2 | Credit contracts
Assets:
Derivatives	8	10
Liabilities:
Derivatives	4	6
Assets measured on recurring basis | Level 2 | Interest rate contracts
Assets:
Derivatives	133	117
Liabilities:
Derivatives	16	20
Assets measured on recurring basis | Level 2 | Foreign exchange contracts
Assets:
Derivatives	1	0
Liabilities:
Derivatives	77	52
Assets measured on recurring basis | Level 2 | Equity contract
Assets:
Derivatives	6	9
Liabilities:
Derivatives	5	7
Assets measured on recurring basis | Level 2 | Embedded derivative on reinsurance
Liabilities:
Embedded derivative on reinsurance	(51)	(21)
Assets measured on recurring basis | Level 2 | U.S. Treasuries
Assets:
Fixed maturities, including securities pledged	58	59
Assets measured on recurring basis | Level 2 | U.S. government agencies and authorities
Assets:
Fixed maturities, including securities pledged	0	3
Assets measured on recurring basis | Level 2 | State, municipalities and political subdivisions
Assets:
Fixed maturities, including securities pledged	859	878
Assets measured on recurring basis | Level 2 | U.S. corporate public securities
Assets:
Fixed maturities, including securities pledged	8,777	9,210
Assets measured on recurring basis | Level 2 | U.S. corporate private securities
Assets:
Fixed maturities, including securities pledged	2,744	2,855
Assets measured on recurring basis | Level 2 | Foreign corporate public securities and foreign governments
Assets:
Fixed maturities, including securities pledged	2,696	2,777
Assets measured on recurring basis | Level 2 | Foreign corporate private securities
Assets:
Fixed maturities, including securities pledged	3,175	3,123
Assets measured on recurring basis | Level 2 | Residential mortgage-backed
Assets:
Fixed maturities, including securities pledged	2,622	2,608
Assets measured on recurring basis | Level 2 | Commercial mortgage-backed
Assets:
Fixed maturities, including securities pledged	1,567	1,463
Assets measured on recurring basis | Level 2 | Other asset-backed securities
Assets:
Fixed maturities, including securities pledged	720	638
Assets measured on recurring basis | Level 2 | Equity securities
Assets:
Equity securities	0	0
Assets measured on recurring basis | Level 3
Assets:
Fixed maturities, including securities pledged	966	831
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreement	0	0
Assets held in separate accounts	11	11
Total assets, fair value	$ 1,025	$ 892
Percentage of Level to total assets	1.00%	1.00%
Liabilities:
Total liabilities, fair value	$ 95	$ 117
Assets measured on recurring basis | Level 3 | FIA
Liabilities:
Product guarantees	18	20
Assets measured on recurring basis | Level 3 | Stabilizer and MCGs
Liabilities:
Product guarantees	77	97
Assets measured on recurring basis | Level 3 | Credit contracts
Assets:
Derivatives	0	0
Liabilities:
Derivatives	0	0
Assets measured on recurring basis | Level 3 | Interest rate contracts
Assets:
Derivatives	0	0
Liabilities:
Derivatives	0	0
Assets measured on recurring basis | Level 3 | Foreign exchange contracts
Assets:
Derivatives	0	0
Liabilities:
Derivatives	0	0
Assets measured on recurring basis | Level 3 | Equity contract
Assets:
Derivatives	0	0
Liabilities:
Derivatives	0	0
Assets measured on recurring basis | Level 3 | Embedded derivative on reinsurance
Liabilities:
Embedded derivative on reinsurance	0	0
Assets measured on recurring basis | Level 3 | U.S. Treasuries
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 3 | U.S. government agencies and authorities
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 3 | State, municipalities and political subdivisions
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 3 | U.S. corporate public securities
Assets:
Fixed maturities, including securities pledged	15	26
Assets measured on recurring basis | Level 3 | U.S. corporate private securities
Assets:
Fixed maturities, including securities pledged	651	642
Assets measured on recurring basis | Level 3 | Foreign corporate public securities and foreign governments
Assets:
Fixed maturities, including securities pledged	0	0
Assets measured on recurring basis | Level 3 | Foreign corporate private securities
Assets:
Fixed maturities, including securities pledged	101	92
Assets measured on recurring basis | Level 3 | Residential mortgage-backed
Assets:
Fixed maturities, including securities pledged	73	21
Assets measured on recurring basis | Level 3 | Commercial mortgage-backed
Assets:
Fixed maturities, including securities pledged	0	7
Assets measured on recurring basis | Level 3 | Other asset-backed securities
Assets:
Fixed maturities, including securities pledged	126	43
Assets measured on recurring basis | Level 3 | Equity securities
Assets:
Equity securities	$ 48	$ 50

XML

Fair Value Measurements - Level 3 Financial Instruments (Details) - Level 3 - Assets measured on recurring basis - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Assets held in separate accounts
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, assets, beginning balance	$ 11	$ 6
Total Realized/Unrealized Gains (Losses) Included in Net Income	0	0
Total Realized/Unrealized Gains (Losses) Included in OCI	0	0
Purchases	0	5
Issuances	0	0
Sales	0	0
Settlements	0	0
Transfers in to Level 3	0	2
Transfers out of Level 3	0	0
Fair Value, assets, ending balance	11	13
Change in Unrealized Gains (Losses) Included in Earnings	0	0
Stabilizer (Investment Only) and MCG Contracts
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Derivatives, beginning balance	(97)	(151)
Total Realized/Unrealized Gains (Losses) Included in Net Income	21	21
Total Realized/Unrealized Gains (Losses) Included in OCI	0	0
Purchases	0	0
Issues	(1)	(1)
Sales	0	0
Settlements	0	0
Transfers in to Level 3	0	0
Transfers out of Level 3	0	0
Fair Value, Derivatives, ending balance	(77)	(131)
Change In Unrealized Gains (Losses) Included in Earnings	0	0
FIA
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Fair Value, Derivatives, beginning balance	(20)	(23)
Total Realized/Unrealized Gains (Losses) Included in Net Income	(1)	(1)
Total Realized/Unrealized Gains (Losses) Included in OCI	0	0
Purchases	0	0
Issues	1	0
Sales	0	0
Settlements	2	1
Transfers in to Level 3	0	0
Transfers out of Level 3	0	0
Fair Value, Derivatives, ending balance	(18)	(23)
Change In Unrealized Gains (Losses) Included in Earnings	0	0
U.S. corporate public securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, assets, beginning balance	26	7
Total Realized/Unrealized Gains (Losses) Included in Net Income	0	0
Total Realized/Unrealized Gains (Losses) Included in OCI	0	0
Purchases	0	5
Issuances	0	0
Sales	(11)	0
Settlements	0	(1)
Transfers in to Level 3	0	19
Transfers out of Level 3	0	0
Fair Value, assets, ending balance	15	30
Change in Unrealized Gains (Losses) Included in Earnings	0	0
U.S. corporate private securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, assets, beginning balance	642	525
Total Realized/Unrealized Gains (Losses) Included in Net Income	0	0
Total Realized/Unrealized Gains (Losses) Included in OCI	(15)	0
Purchases	12	37
Issuances	0	0
Sales	0	0
Settlements	(2)	(1)
Transfers in to Level 3	14	4
Transfers out of Level 3	0	0
Fair Value, assets, ending balance	651	565
Change in Unrealized Gains (Losses) Included in Earnings	0	0
Foreign corporate private securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, assets, beginning balance	92	154
Total Realized/Unrealized Gains (Losses) Included in Net Income	(9)	0
Total Realized/Unrealized Gains (Losses) Included in OCI	18	(1)
Purchases	0	18
Issuances	0	0
Sales	0	0
Settlements	0	(10)
Transfers in to Level 3	0	0
Transfers out of Level 3	0	0
Fair Value, assets, ending balance	101	161
Change in Unrealized Gains (Losses) Included in Earnings	(9)	0
Residential mortgage-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, assets, beginning balance	21	21
Total Realized/Unrealized Gains (Losses) Included in Net Income	(1)	(1)
Total Realized/Unrealized Gains (Losses) Included in OCI	0	(1)
Purchases	58	10
Issuances	0	0
Sales	0	0
Settlements	0	0
Transfers in to Level 3	0	1
Transfers out of Level 3	(5)	0
Fair Value, assets, ending balance	73	30
Change in Unrealized Gains (Losses) Included in Earnings	(2)	(1)
Commercial mortgage-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, assets, beginning balance	7	10
Total Realized/Unrealized Gains (Losses) Included in Net Income	0	0
Total Realized/Unrealized Gains (Losses) Included in OCI	0	0
Purchases	0	0
Issuances	0	0
Sales	0	0
Settlements	0	(1)
Transfers in to Level 3	0	0
Transfers out of Level 3	(7)	(3)
Fair Value, assets, ending balance	0	6
Change in Unrealized Gains (Losses) Included in Earnings	0	0
Other asset-backed securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, assets, beginning balance	43	27
Total Realized/Unrealized Gains (Losses) Included in Net Income	0	0
Total Realized/Unrealized Gains (Losses) Included in OCI	0	1
Purchases	100	10
Issuances	0	0
Sales	0	0
Settlements	(1)	0
Transfers in to Level 3	0	0
Transfers out of Level 3	(16)	(15)
Fair Value, assets, ending balance	126	23
Change in Unrealized Gains (Losses) Included in Earnings	0	0
Fixed maturities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, assets, beginning balance	831	744
Total Realized/Unrealized Gains (Losses) Included in Net Income	(10)	(1)
Total Realized/Unrealized Gains (Losses) Included in OCI	3	(1)
Purchases	170	80
Issuances	0	0
Sales	(11)	0
Settlements	(3)	(13)
Transfers in to Level 3	14	24
Transfers out of Level 3	(28)	(18)
Fair Value, assets, ending balance	966	815
Change in Unrealized Gains (Losses) Included in Earnings	(11)	(1)
Equity securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, assets, beginning balance	50	48
Total Realized/Unrealized Gains (Losses) Included in Net Income	(2)	0
Total Realized/Unrealized Gains (Losses) Included in OCI	0	0
Purchases	0	2
Issuances	0	0
Sales	0	0
Settlements	0	0
Transfers in to Level 3	0	0
Transfers out of Level 3	0	0
Fair Value, assets, ending balance	48	50
Change in Unrealized Gains (Losses) Included in Earnings	$ (2)	$ 0

XML

Fair Value Measurements - Significant Unobservable Inputs (Details)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Actuarial Assumptions, Lapses, threshold percentage	92.00%	92.00%
Actuarial Assumptions, Policyholder Deposits, threshold percentage	8.00%	8.00%
Stabilizer Products and Managed Custody Guarantee (MCG) Products [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Percentage of Plans	100.00%		100.00%
Stabilizer (Investment Only) and MCG Contracts
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Percentage of Plans	92.00%		92.00%
Stabilizer with Recordkeeping Agreements
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Percentage of Plans	8.00%		8.00%
Derivative Financial Instruments, Liabilities | FIA | Market Approach Valuation Technique | Minimum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Interest Rate Implied Volatility	0.00%	0.00%
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits	0.00%	0.00%
Derivative Financial Instruments, Liabilities | FIA | Market Approach Valuation Technique | Maximum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Interest Rate Implied Volatility	0.00%	0.00%
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits	0.00%	0.00%
Derivative Financial Instruments, Liabilities | Stabilizer Products and Managed Custody Guarantee (MCG) Products [Member] | Market Approach Valuation Technique | Minimum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Interest Rate Implied Volatility	0.10%	0.10%
Fair Value Inputs, Nonperformance Risk	0.24%	0.02%
Fair Value Input, Actual Assumption, Partial Withdrawal	0.00%	0.00%
Fair Value Inputs, Actuarial Assumptions, Lapses	0.00%	0.00%
Actuarial Assumptions, Lapses under percent threshold	0.00%	0.00%
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits	0.00%	0.00%
Actuarial Assumptions, Policyholder Deposits under percent threshold	0.00%	0.00%
Derivative Financial Instruments, Liabilities | Stabilizer Products and Managed Custody Guarantee (MCG) Products [Member] | Market Approach Valuation Technique | Maximum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Interest Rate Implied Volatility	6.60%	6.30%
Fair Value Inputs, Nonperformance Risk	1.30%	1.10%
Fair Value Input, Actual Assumption, Partial Withdrawal	0.00%	0.00%
Fair Value Inputs, Actuarial Assumptions, Lapses	50.00%	50.00%
Actuarial Assumptions, Lapses under percent threshold	30.00%	30.00%
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits	50.00%	50.00%
Actuarial Assumptions, Policyholder Deposits under percent threshold	25.00%	25.00%
Derivative Financial Instruments, Liabilities | Stabilizer (Investment Only) and MCG Contracts | Market Approach Valuation Technique | Minimum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Actuarial Assumptions, Lapses	0.00%	0.00%
Actuarial Assumptions, Lapses under percent threshold	0.00%	0.00%
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits	0.00%	0.00%
Actuarial Assumptions, Policyholder Deposits under percent threshold	0.00%	0.00%
Derivative Financial Instruments, Liabilities | Stabilizer (Investment Only) and MCG Contracts | Market Approach Valuation Technique | Maximum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Actuarial Assumptions, Lapses	25.00%	25.00%
Actuarial Assumptions, Lapses under percent threshold	15.00%	15.00%
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits	30.00%	30.00%
Actuarial Assumptions, Policyholder Deposits under percent threshold	15.00%	15.00%
Derivative Financial Instruments, Liabilities | Stabilizer with Recordkeeping Agreements | Market Approach Valuation Technique | Minimum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Actuarial Assumptions, Lapses	0.00%	0.00%
Actuarial Assumptions, Lapses under percent threshold	0.00%	0.00%
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits	0.00%	0.00%
Actuarial Assumptions, Policyholder Deposits under percent threshold	0.00%	0.00%
Derivative Financial Instruments, Liabilities | Stabilizer with Recordkeeping Agreements | Market Approach Valuation Technique | Maximum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Actuarial Assumptions, Lapses	50.00%	50.00%
Actuarial Assumptions, Lapses under percent threshold	30.00%	30.00%
Fair Value Inputs, Actuarial Assumptions, Policyholder Deposits	50.00%	50.00%
Actuarial Assumptions, Policyholder Deposits under percent threshold	25.00%	25.00%
Investment Contracts | FIA | Market Approach Valuation Technique | Minimum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Nonperformance Risk	0.24%	0.02%
Fair Value Input, Actual Assumption, Partial Withdrawal	0.00%	0.50%
Fair Value Inputs, Actuarial Assumptions, Lapses	0.00%	0.00%
Investment Contracts | FIA | Market Approach Valuation Technique | Maximum
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair Value Inputs, Nonperformance Risk	1.30%	1.10%
Fair Value Input, Actual Assumption, Partial Withdrawal	7.00%	7.00%
Fair Value Inputs, Actuarial Assumptions, Lapses	42.00%	42.00%

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Fair Value Measurements - Other Financial Instruments (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	$ 148	$ 136
Short-term loan affiliate	0	80
Other investments	22	0
Assets held in separate accounts	73,489	73,036
Derivatives liabilities	102	85
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, including securities pledged	24,678	25,042
Equity securities	58	60
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreement	1,010	1,078
Derivative assets	148	136
Notes receivable from affiliates	175	175
Short-term loan affiliate	0	80
Other investments	22	0
Assets held in separate accounts	73,489	73,036
Deposit liabilities	77	135
Derivatives liabilities	102	85
Long-term debt, fair value	4	5
Carrying Value | Embedded derivative on reinsurance
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Embedded derivative on reinsurance	(51)	(21)
Carrying Value | Funding agreements without fixed maturities and deferred annuities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	25,599	25,314
Carrying Value | Funding agreements with fixed maturities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	225	0
Carrying Value | Supplementary contracts, immediate annuities and other
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	357	365
Carrying Value | FIA
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	18	20
Carrying Value | Stabilizer and MCGs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	77	97
Carrying Value | Mortgage loans on real estate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans	4,891	4,910
Carrying Value | Policy loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans	212	214
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed maturities, including securities pledged	24,678	25,042
Equity securities	58	60
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreement	1,010	1,078
Derivative assets	148	136
Notes receivable from affiliates	215	222
Short-term loan affiliate	0	80
Other investments	22	0
Assets held in separate accounts	73,489	73,036
Deposit liabilities	122	198
Derivatives liabilities	102	85
Long-term debt, fair value	4	5
Fair Value | Embedded derivative on reinsurance
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Embedded derivative on reinsurance	(51)	(21)
Fair Value | Funding agreements without fixed maturities and deferred annuities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	28,720	29,431
Fair Value | Funding agreements with fixed maturities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	230	0
Fair Value | Supplementary contracts, immediate annuities and other
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	403	418
Fair Value | FIA
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	18	20
Fair Value | Stabilizer and MCGs
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	77	97
Fair Value | Mortgage loans on real estate
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans	4,885	4,924
Fair Value | Policy loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans	$ 212	$ 214

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Deferred Policy Acquisition Costs and Value of Business Acquired (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward]
Beginning balance	$ 385	$ 476
Deferrals of commissions and expenses	15	21
Amortization:
Amortization, excluding unlocking	(18)	(17)
Unlocking (1)	(29)	1
Interest accrued	9	9
Net amortization included in the Condensed Consolidated Statements of Operations	(38)	(7)
Change due to unrealized capital gains/losses on available-for-sale securities	85	(14)
Ending balance	447	476
Movement Analysis Of Value of Business Acquired VOBA [Roll Forward]
Beginning balance	367	537
Deferrals of commissions and expenses	2	1
Amortization, excluding unlocking	(20)	(20)
Unlocking (1)	(17)	13
Interest accrued	10	12
Net amortization included in the Condensed Consolidated Statements of Operations	(27)	5
Change due to unrealized capital gains/losses on available-for-sale securities	108	(19)
Ending balance	450	524
Movement Analysis of Deferred Policy Acquisition Costs and Value of Business Acquired (VOBA) [Roll Forward]
Beginning balance	752	1,013
Deferrals of commissions and expenses	17	22
Amortization, excluding unlocking	(38)	(37)
Unlocking (1)	(46)	14
Interest accrued	19	21
Net amortization included in the Condensed Consolidated Statements of Operations	(65)	(2)
Change due to unrealized capital gains/losses on available-for-sale securities	193	(33)
Ending balance	$ 897	$ 1,000
Minimum
Movement Analysis of Deferred Policy Acquisition Costs and Value of Business Acquired (VOBA) [Roll Forward]
Value of Business Acquired (VOBA), Interest accrued percentage	5.50%	5.50%
Maximum
Movement Analysis of Deferred Policy Acquisition Costs and Value of Business Acquired (VOBA) [Roll Forward]
Value of Business Acquired (VOBA), Interest accrued percentage	7.00%	7.00%
Guaranteed minimum interest rates
Movement Analysis of Deferred Policy Acquisition Costs and Value of Business Acquired (VOBA) [Roll Forward]
Unlocking (1)	$ (43)

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Accumulated Other Comprehensive Income (Loss) - Components of AOCI (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Derivatives	$ 93		$ 185
DAC/VOBA and Sales inducements adjustment on available-for-sale securities	(240)		(357)
Premium deficiency reserve adjustment	(82)		(94)
Other	0		0
Unrealized capital gains (losses), before tax	557		747
Deferred income tax asset (liability)	(123)		(139)
Unrealized capital gains (losses), after tax	434		608
Pension and other postretirement benefits liability, net of tax	4		5
AOCI	438	$ 818	613
Fixed maturities
Schedule of Available-for-sale Securities [Line Items]
Fixed maturities, net of OTTI	786		997
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Equity securities	$ 0		$ 16

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Accumulated Other Comprehensive Income (Loss) - Changes in AOCI, including Reclassification Adjustments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Available-for-sale securities, Before-Tax Amount:
Other	$ (5)	$ 0
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	14	19
DAC/VOBA and Sales inducements	194	(33)
Premium deficiency reserve adjustment	33	(5)
Change in unrealized gains/losses on available-for-sale securities	(444)	96
Available-for-sale securities, Income Tax:
Other	1	0
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	(3)	(7)
DAC/VOBA and Sales inducements	(41)	12
Premium deficiency reserve adjustment	(7)	2
Change in unrealized gains/losses on available-for-sale securities	102	(33)
Available-for-sale securities, After-Tax Amount:
Other	(4)	0
Adjustments for amounts recognized in Net realized capital gains (losses) in the Condensed Consolidated Statements of Operations	11	12
DAC/VOBA and Sales inducements	153	(21)
Premium deficiency reserve adjustment	26	(3)
Change in unrealized gains/losses on available-for-sale securities	(342)	63
OTTI:
Other-than-temporary impairments	7	2
OTTI	(1)	(1)
OTTI	6	1
Derivatives, Before-Tax Amount:
Derivatives	(25)	(9)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(6)	(6)
Change in unrealized gains/losses on derivatives	(31)	(15)
Derivatives, Income Tax:
Derivatives	5	3
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	1	2
Change in unrealized gains/losses on derivatives	6	5
Derivatives, After-Tax Amount:
Derivatives	(20)	(6)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(5)	(4)
Change in unrealized gains/losses on derivatives	(25)	(10)
Pension and other post-employment benefit liability, Before-Tax Amount:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(1)	0
Change in pension and other postretirement benefits liability	(1)	0
Other comprehensive income (loss), before tax	(476)	81
Pension and other post-employment benefit liability, Income Tax:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	0	0
Change in pension and other postretirement benefits liability	0	0
Change in Other comprehensive income (loss)	108	(28)
Pension and other post-employment benefit liability, After-Tax Amount:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(1)	0
Change in pension and other postretirement benefits liability	(1)	0
Other comprehensive income (loss), after tax	(368)	53
Income Tax Valuation Allowance	11	0
Fixed maturities
Available-for-sale securities, Before-Tax Amount:
Fixed maturities	(687)	113
Available-for-sale securities, Income Tax:
Fixed maturities	153	(39)
Available-for-sale securities, After-Tax Amount:
Fixed maturities	(534)	74
Equity securities
Available-for-sale securities, Before-Tax Amount:
Fixed maturities	0	0
Available-for-sale securities, Income Tax:
Fixed maturities	0	0
Available-for-sale securities, After-Tax Amount:
Fixed maturities	$ 0	$ 0

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Income Taxes (Details)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Effective tax rate	22.00%	25.20%
Statutory tax rate	21.00%	35.00%

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Financing Agreements (Details) - Voya Financial, Inc. - Affiliated Entity - Reciprocal Loan Agreement - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Percentage of Statutory admitted assets that can be borrowed under Reciprocal Loan Agreement	3.00%
Due from Related Parties	$ 0	$ 80,000,000
Due to Affiliate	$ 0	$ 0

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Commitments and Contingencies (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	May 10, 2018	Dec. 31, 2017
Loss Contingencies [Line Items]
Fair value of assets pledged as collateral	$ 272		$ 0
Acquisition of mortgage loans
Loss Contingencies [Line Items]
Amount of purchase commitment	129
Purchase of limited partnerships and private placement investments
Loss Contingencies [Line Items]
Amount of purchase commitment	590
Federal Home Loan Bank of Boston | Line of Credit
Loss Contingencies [Line Items]
Non-putable funding agreements issued to FHLB	225
Fair value of assets pledged as collateral	$ 272
Federal Home Loan Bank of Boston | Subsequent Event [Member] | Line of Credit
Loss Contingencies [Line Items]
Non-putable funding agreements issued to FHLB		$ 275

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Commitments and Contingencies - Restricted Assets (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Loss Contingencies [Line Items]
Fixed maturity collateral pledged to FHLB	$ 272	$ 0
FHLB restricted stock	23	0
Other fixed maturities-state deposits	13	13
Restricted Cash and Cash Equivalents	5	5
Securities pledged	833	960
Total restricted assets	1,146	978
Securities pledged as collateral
Loss Contingencies [Line Items]
Fair value of loaned securities	646	799
Fair value of securities delivered as collateral	$ 187	$ 161

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Related Party Transactions (Details) - USD ($) $ in Millions		3 Months Ended
	Jan. 01, 2018	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Other Affiliates
Related Party Transaction [Line Items]
Revenue with affiliated entities		$ 86	$ 148
Expenses with affiliated entities		210	$ 201
Affiliated Entity
Related Party Transaction [Line Items]
Pre-tax gain on recapture	$ 74
Deposit assets		37		$ 63
Deposit liabilities		$ 77		$ 135