Financing Agreements

9 Months Ended

Sep. 30, 2020

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 for the three and nine months ended September 30, 2020. The Company earned $1 and $4 interest income for the three and nine months ended September 30, 2020. The Company incurred immaterial interest expense for the three and nine months ended September 30, 2019. The Company earned immaterial income for the three months ended September 30, 2019 and earned $2 for the nine months ended September 30, 2019. As of September 30, 2020, VRIAC had an outstanding receivable of $431, and VIPS had an outstanding payable of $73. As of December 31, 2019, the Company had an outstanding receivable of $69 and no outstanding payable from/to Voya Financial, Inc. under the reciprocal loan agreement.