Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2019	Feb. 14, 2020	Jun. 30, 2019
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	001-35897
Entity Registrant Name	Voya Financial, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	52-1222820
Entity Address, Address Line One	230 Park Avenue
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10169
City Area Code	212
Local Phone Number	309-8200
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 7.7
Entity Common Stock, Shares Outstanding		132,335,898
Documents Incorporated by Reference	Portions of Voya Financial, Inc.'s Proxy Statement for its 2020 Annual Meeting of Shareholders are incorporated by reference in the Annual Report on Form 10-K in response to Part III, Items 10, 11, 12, 13 and 14.
Entity Central Index Key	0001535929
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Common Stock, $.01 par value
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, $.01 Par Value
Trading Symbol	VOYA
Security Exchange Name	NYSE
Depositary Shares
Entity Information [Line Items]
Title of 12(b) Security	Depositary Shares, each representing a 1/40
Trading Symbol	VOYAPrB
Security Exchange Name	NYSE

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Investments:
Fixed maturities, available-for-sale, at fair value	$ 39,663.0	$ 36,897.0
Fixed maturities, at fair value using the fair value option	2,707.0	2,233.0
Equity securities, at fair value (cost of $196 as of 2019 and $247 as of 2018)	196.0	247.0
Short-term investments	68.0	126.0
Mortgage loans on real estate, net of valuation allowance of $1 as of 2019 and $2 as of 2018	6,878.0	7,281.0
Policy loans	776.0	814.0
Limited partnerships/corporations	1,290.0	982.0
Derivatives	316.0	194.0
Other investments	385.0	379.0
Total investments	53,687.0	50,615.0
Cash and cash equivalents	1,181.0	1,237.0
Short-term investments under securities loan agreements, including collateral delivered	1,395.0	1,293.0
Accrued investment income	505.0	529.0
Premium receivable and reinsurance recoverable	3,732.0	3,843.0
Deferred policy acquisition costs, Value of business acquired	2,226.0	2,973.0
Current income taxes	0.0	17.0
Deferred income taxes	1,458.0	1,610.0
Other assets	902.0	1,027.0
Assets related to consolidated investment entities:
Assets held in consolidated investment entities	2,226.0	2,310.0
Assets held in separate accounts	81,670.0	69,931.0
Assets held for sale	20,069.0	20,045.0
Total assets	169,051.0	155,430.0
Liabilities and Shareholders' Equity:
Future policy benefits	9,945.0	9,587.0
Contract owner account balances	40,923.0	41,183.0
Payables under securities loan agreement, including collateral held	1,373.0	1,366.0
Short-term debt	1.0	1.0
Long-term debt	3,042.0	3,136.0
Derivatives	403.0	164.0
Pension and other post-employment provisions	468.0	551.0
Current income taxes	27.0	0.0
Other liabilities	1,345.0	1,375.0
Liabilities related to consolidated investment entities:
Collateralized loan obligations notes, at fair value using the fair value option	474.0	540.0
Other liabilities	652.0	688.0
Liabilities related to separate accounts	81,670.0	69,931.0
Liabilities held for sale	18,498.0	17,903.0
Total liabilities	158,821.0	146,425.0
Commitments and Contingencies (Note 19)
Shareholders' equity:
Preferred stock ($0.01 par value per share; $625 and $325 aggregate liquidation preference as of 2019 and 2018, respectively)	0.0	0.0
Common stock ($0.01 par value per share; 900,000,000 shares authorized; 140,726,677 and 272,431,745 shares issued as of 2019 and 2018, respectively; 132,325,790 and 150,978,184 shares outstanding as of 2019 and 2018, respectively)	2.0	3.0
Treasury stock (at cost; 8,400,887 and 121,453,561 shares as of 2019 and 2018, respectively)	(460.0)	(4,981.0)
Additional paid-in capital	11,184.0	24,316.0
Accumulated other comprehensive income (loss)	3,331.0	607.0
Retained earnings (deficit):
Appropriated-consolidated investment entities	0.0	0.0
Unappropriated	(4,649.0)	(11,732.0)
Total Voya Financial, Inc. shareholders' equity	9,408.0	8,213.0
Noncontrolling interest	822.0	792.0
Total shareholder's equity	10,230.0	9,005.0
Total liabilities and shareholder's equity	169,051.0	155,430.0
Limited partnerships/corporations, at fair value
Assets related to consolidated investment entities:
Assets held in consolidated investment entities	1,632.0	1,421.0
Cash and cash equivalents
Assets related to consolidated investment entities:
Assets held in consolidated investment entities	68.0	331.0
Corporate loans, at fair value using the fair value option
Assets related to consolidated investment entities:
Assets held in consolidated investment entities	513.0	542.0
Other assets
Assets related to consolidated investment entities:
Assets held in consolidated investment entities	13.0	16.0
Collateral pledged
Investments:
Securities pledged (amortized cost of $1,264 as of 2019 and $1,436 as of 2018)	$ 1,408.0	$ 1,462.0

Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Fixed maturities, amortized cost	$ 35,836	$ 36,268
Equity securities, cost	196	247
Mortgage loans on real estate valuation allowance	1	2
Securities pledged, amortized costs	1,264	1,436
Preferred stock, aggregate liquidation preference	$ 625	$ 325
Preferred stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	900,000,000	900,000,000
Common stock, shares issued	140,726,677	272,431,745
Common stock, shares outstanding	132,325,790	150,978,184	172,000,000.0	194,600,000
Treasury stock	8,400,887	121,453,561
Common stock, par value	$ 0.01	$ 0.01

Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Net investment income									$ 2,792.0	$ 2,669.0	$ 2,641.0
Fee income									1,969.0	1,982.0	1,889.0
Premiums									2,273.0	2,132.0	2,097.0
Net realized gains (losses):
Total other-than-temporary impairments									(65.0)	(27.0)	(29.0)
Less: Portion of other-than-temporary impairments recognized in Other comprehensive income (loss)									(1.0)	1.0	(9.0)
Net other-than-temporary impairments recognized in earnings									(64.0)	(28.0)	(20.0)
Other net realized capital gains (losses)									(102.0)	(327.0)	(189.0)
Total net realized capital gains (losses)									(166.0)	(355.0)	(209.0)
Other revenue									465.0	443.0	379.0
Net investment income									143.0	292.0	432.0
Total revenues	$ 1,810.0	$ 1,875.0	$ 1,969.0	$ 1,822.0	$ 1,851.0	$ 1,890.0	$ 1,761.0	$ 1,661.0	7,476.0	7,163.0	7,229.0
Benefits and expenses:
Policyholder benefits									2,583.0	2,364.0	2,422.0
Interest credited to contract owner account balances									1,167.0	1,162.0	1,236.0
Operating expenses									2,746.0	2,606.0	2,562.0
Net amortization of Deferred policy acquisition costs and Value of business acquired									199.0	233.0	353.0
Interest expense									176.0	221.0	184.0
Interest expense									38.0	41.0	80.0
Other expense									7.0	8.0	7.0
Total benefits and expenses	1,744.0	1,726.0	1,726.0	1,720.0	1,725.0	1,661.0	1,596.0	1,653.0	6,916.0	6,635.0	6,844.0
Income (loss) from continuing operations before income taxes	66.0	149.0	243.0	102.0	126.0	229.0	165.0	8.0	560.0	528.0	385.0
Income tax expense (benefit)									(205.0)	37.0	687.0
Income (loss) from continuing operations									765.0	491.0	(302.0)
Income (loss) from discontinued operations, net of tax	(1,084.0)	(4.0)	42.0	(20.0)	29.0	(32.0)	92.0	440.0	(1,066.0)	529.0	(2,473.0)
Net income (loss)	(766.0)	140.0	252.0	73.0	177.0	168.0	229.0	446.0	(301.0)	1,020.0	(2,775.0)
Less: Net income (loss) attributable to noncontrolling interest	6.0	19.0	26.0	(1.0)	57.0	26.0	62.0	0.0	50.0	145.0	217.0
Net income (loss) available to Voya Financial, Inc.	(772.0)	121.0	226.0	74.0	120.0	142.0	167.0	446.0	(351.0)	875.0	(2,992.0)
Less: Preferred stock dividends	4.0	14.0	0.0	10.0	0.0	0.0	0.0	0.0	28.0	0.0	0.0
Net income (loss) available to Voya Financial, Inc.'s common shareholders	$ (776.0)	$ 107.0	$ 226.0	$ 64.0	$ 120.0	$ 142.0	$ 167.0	$ 446.0	$ (379.0)	$ 875.0	$ (2,992.0)
Net income (loss) per common share:
Income (loss) from continuing operations available to Voya Financial, Inc.'s common shareholders	$ 2.29	$ 0.80	$ 1.27	$ 0.57	$ 0.60	$ 1.09	$ 0.45	$ 0.03	$ 4.88	$ 2.12	$ (2.82)
Income (loss) available to Voya Financial, Inc.'s common shareholders	(5.76)	0.77	1.57	0.44	0.78	0.89	1.00	2.59	(2.69)	5.36	(16.25)
Income (loss) from continuing operations available to Voya Financial, Inc.'s common shareholders	2.17	0.77	1.22	0.56	0.58	1.06	0.43	0.03	4.68	2.05	(2.82)
Income (loss) available to Voya Financial, Inc.'s common shareholders	$ (5.45)	$ 0.74	$ 1.51	$ 0.42	$ 0.76	$ 0.87	$ 0.96	$ 2.50	$ (2.58)	$ 5.20	$ (16.25)

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (766)	$ 140	$ 252	$ 73	$ 177	$ 168	$ 229	$ 446	$ (301)	$ 1,020	$ (2,775)
Other comprehensive income (loss), before tax:
Unrealized gains (losses) on securities									3,013	(2,810)	1,191
Other-than-temporary impairments									3	32	(2)
Pension and other postretirement benefits liability									(4)	(11)	(15)
Other comprehensive income (loss), before tax									3,012	(2,789)	1,174
Income tax expense (benefit) related to items of other comprehensive income (loss)									631	(693)	364
Other comprehensive income (loss), after tax									2,381	(2,096)	810
Comprehensive income (loss)									2,080	(1,076)	(1,965)
Less: Comprehensive income (loss) attributable to noncontrolling interest									50	145	217
Comprehensive income (loss) attributable to Voya Financial, Inc.									$ 2,030	$ (1,221)	$ (2,182)

Consolidated Statements of Changes in Shareholder's Equity - USD ($) $ in Millions	Total	Total Voya Financial, Inc. Shareholders' Equity	Preferred Stock	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Appropriated	Unappropriated	Noncontrolling Interest	Previously Reported	Previously Reported Total Voya Financial, Inc. Shareholders' Equity	Previously Reported Preferred Stock	Previously Reported Common Stock	Previously Reported Treasury Stock	Previously Reported Additional Paid-In Capital	Previously Reported Accumulated Other Comprehensive Income (Loss)	Previously Reported Appropriated	Previously Reported Unappropriated	Previously Reported Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity
Adjustment for adoption of ASU \| Accounting Standards Update 2016-09	$ 15.0	$ 15.0	$ 0.0	$ 0.0	$ 0.0	$ 0.0	$ 0.0	$ 0.0	$ 15.0	$ 0.0
Balance- As adjusted	14,083.0	13,010.0	0.0	3.0	(2,796.0)	23,609.0	1,921.0	0.0	(9,727.0)	1,073.0
Balance at Dec. 31, 2016											$ 14,068.0	$ 12,995.0	$ 0.0	$ 3.0	$ (2,796.0)	$ 23,609.0	$ 1,921.0	$ 0.0	$ (9,742.0)	$ 1,073.0
Comprehensive income (loss)
Net income (loss)	(2,775.0)	(2,992.0)	0.0	0.0	0.0	0.0	0.0	0.0	(2,992.0)	217.0
Other comprehensive income (loss), after tax	810.0	810.0	0.0	0.0	0.0	0.0	810.0	0.0	0.0	0.0
Less: Comprehensive income (loss) attributable to noncontrolling interest	217.0									217.0
Comprehensive income (loss)	(1,965.0)	(2,182.0)
Net consolidations (deconsolidations) of consolidated investment entities	38.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	38.0
Common stock issuance	3.0	3.0	0.0	0.0	0.0	3.0	0.0	0.0	0.0	0.0
Common stock acquired - Share repurchase	(923.0)	(923.0)	0.0	0.0	(1,023.0)	(100.0)	0.0	0.0	0.0	0.0
Treasury stock retirement									0.0
Dividends on common stock	(8.0)	(8.0)	0.0	0.0	0.0	(8.0)	0.0	0.0	0.0	0.0
Share-based compensation	109.0	109.0	0.0	0.0	(8.0)	117.0	0.0	0.0	0.0	0.0
Contributions from (Distributions to) noncontrolling interest, net	(206.0)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	(206.0)
Balance at Dec. 31, 2017											$ 11,131.0	$ 10,009.0	$ 0.0	$ 3.0	$ (3,827.0)	$ 23,821.0	$ 2,731.0	$ 0.0	$ (12,719.0)	$ 1,122.0
Increase (Decrease) in Stockholders' Equity
Adjustment for adoption of ASU \| Accounting Standards Update 2014-09	84.0	84.0	0.0	0.0	0.0	0.0	0.0	0.0	84.0	0.0
Adjustment for adoption of ASU \| Accounting Standards Update 2016-01	0.0	0.0	0.0	0.0	0.0	0.0	(28.0)	0.0	28.0	0.0
Balance- As adjusted	11,215.0	10,093.0	0.0	3.0	(3,827.0)	23,821.0	2,703.0	0.0	(12,607.0)	1,122.0
Comprehensive income (loss)
Net income (loss)	1,020.0	875.0	0.0	0.0	0.0	0.0	0.0	0.0	875.0	145.0
Reversal of Other Comprehensive Income (Loss) due to Sale of Annuity and CBVA	(79.0)	(79.0)	0.0	0.0	0.0	0.0	(79.0)	0.0	0.0	0.0
Other comprehensive income (loss), after tax	(2,017.0)	(2,017.0)	0.0	0.0	0.0	0.0	(2,017.0)	0.0	0.0	0.0
Other comprehensive income (loss), after tax	(2,096.0)
Less: Comprehensive income (loss) attributable to noncontrolling interest	145.0									145.0
Comprehensive income (loss)	(1,076.0)	(1,221.0)
Effect of transaction for entities under common control	(31.0)	(31.0)	0.0	0.0	0.0	(31.0)	0.0	0.0	0.0	0.0
Net consolidations (deconsolidations) of consolidated investment entities	(33.0)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	(33.0)
Preferred stock issuance	319.0	319.0	0.0	0.0	0.0	319.0	0.0	0.0	0.0	0.0
Common stock issuance	3.0	3.0	0.0	0.0	0.0	3.0	0.0	0.0	0.0	0.0
Common stock acquired - Share repurchase	(1,025.0)	(1,025.0)	0.0	0.0	(1,125.0)	100.0	0.0	0.0	0.0	0.0
Treasury stock retirement									0.0
Dividends on common stock	(6.0)	(6.0)	0.0	0.0	0.0	(6.0)	0.0	0.0	0.0	0.0
Share-based compensation	81.0	81.0	0.0	0.0	(29.0)	110.0	0.0	0.0	0.0	0.0
Contributions from (Distributions to) noncontrolling interest, net	(441.0)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	(442.0)
Balance at Dec. 31, 2018	9,005.0	8,213.0	0.0	3.0	(4,981.0)	24,316.0	607.0	0.0	(11,732.0)	792.0
Comprehensive income (loss)
Net income (loss)	(301.0)	(351.0)	0.0	0.0	0.0	0.0	0.0	0.0	(351.0)	50.0
Other comprehensive income (loss), after tax	2,381.0	2,381.0	0.0	0.0	0.0	0.0	2,381.0	0.0	0.0	0.0
Less: Comprehensive income (loss) attributable to noncontrolling interest	50.0									50.0
Comprehensive income (loss)	2,080.0	2,030.0
Preferred stock issuance	293.0	293.0	0.0	0.0	0.0	293.0	0.0	0.0	0.0	0.0
Common stock issuance	3.0	3.0	0.0	0.0	0.0	3.0	0.0	0.0	0.0	0.0
Common stock acquired - Share repurchase	(1,136.0)	(1,136.0)	0.0	0.0	(1,096.0)	(40.0)	0.0	0.0	0.0	0.0
Treasury stock retirement	0.0	0.0	0.0	(1.0)	5,666.0	(13,452.0)	0.0	0.0	7,787.0	0.0
Dividends on preferred stock	28.0	28.0	0.0	0.0	0.0	18.0	0.0	0.0	10.0	0.0
Dividends on common stock	(44.0)	(44.0)	0.0	0.0	0.0	(44.0)	0.0	0.0	0.0	0.0
Share-based compensation	77.0	77.0	0.0	0.0	(49.0)	126.0	0.0	0.0	0.0	0.0
Contributions from (Distributions to) noncontrolling interest, net	(20.0)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	(20.0)
Balance at Dec. 31, 2019	10,230.0	9,408.0	0.0	2.0	(460.0)	11,184.0	3,331.0	0.0	(4,649.0)	822.0
Increase (Decrease) in Stockholders' Equity
Adjustment for adoption of ASU \| Accounting Standards Update 2018-02	$ 0.0	$ 0.0	$ 0.0	$ 0.0	$ 0.0	$ 0.0	$ 343.0	$ 0.0	$ (343.0)	$ 0.0

Consolidated Statements of Cash Flows $ in Millions	12 Months Ended
Consolidated Statements of Cash Flows $ in Millions	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Cash Flows from Operating Activities:
Net income (loss)	$ (301)	$ 1,020	$ (2,775)
Adjustments to reconcile net income (loss) to net cash proviced by operating activities:
(Income) loss from discontinued operations, net of tax	1,066	(529)	2,473
Capitalization of deferred policy acquisition costs, value of business acquired and sales inducements	(110)	(109)	(133)
Net amortization of deferred policy acquisition costs, value of business acquired and sales inducements	205	235	358
Future policy benefits, claims reserves and interest credited	567	475	506
Deferred income tax expense (benefit)	(332)	(83)	814
Net realized capital losses	166	355	209
Share-based compensation	98	96	117
(Gains) losses on consolidated investment entities	(102)	(256)	(343)
(Gains) losses on limited partnerships/corporations	(93)	(45)	(26)
Change in:
Premiums receivable and reinsurance recoverable	111	178	185
Other receivables and assets accruals	254	(314)	281
Other payables and accruals	(71)	(164)	(60)
(Increase) decrease in cash held by consolidated investment entities	(57)	(305)	(557)
Other, net	11	262	22
Net cash provided by operating activities - discontinued operations	(102)	1,052	511
Net cash provided by operating activities	1,310	1,868	1,582
Proceeds from the sale, maturity, disposal or redemption of:
Fixed maturities	6,423	6,419	7,001
Equity securities	163	152	54
Mortgage loans on real estate	1,153	895	851
Limited partnerships/corporations	205	318	211
Acquisition of:
Fixed maturities	(6,455)	(7,513)	(6,445)
Equity securities, available-for-sale	(55)	(57)	(45)
Mortgage loans on real estate	(760)	(643)	(1,478)
Limited partnerships/corporations	(403)	(318)	(302)
Short-term investments, net	58	273	(28)
Derivatives, net	(29)	72	203
Sales from consolidated investment entities	586	1,365	2,047
Purchases within consolidated investment entities	(1,385)	(994)	(2,036)
Collateral received (delivered), net	(95)	(28)	(205)
Other, net	(35)	(9)	5
Net cash provided by (used in) investing activities - discontinued operations	(626)	(214)	(2,261)
Net cash used in investing activities	(1,255)	(282)	(2,428)
Cash Flows from Financing Activities:
Deposits received for investment contracts	4,383	4,884	3,593
Maturities and withdrawals from investment contracts	(5,180)	(4,799)	(4,763)
Settlements on deposit contracts	(8)	(10)	0
Proceeds from issuance of debt with maturities of more than three months	0	288	338
Repayment of debt with maturities of more than three months	(113)	(677)	(461)
Debt issuance costs	0	(6)	(3)
Borrowings of consolidated investment entities	1,106	773	967
Repayments of borrowings of consolidated investment entities	(903)	(656)	(804)
Contributions from (distributions to) participants in consolidated investment entities	715	(166)	449
Proceeds from issuance of common stock, net	3	3	3
Proceeds from issuance of preferred stock, net	293	319	0
Share-based compensation	(22)	(14)	(8)
Common stock acquired - Share repurchase	(1,136)	(1,025)	(923)
Dividends paid on common stock	(44)	(6)	(8)
Dividends paid on preferred stock	(28)	0	0
Net cash provided by financing activities - discontinued operations	813	(672)	1,271
Net cash used in financing activities	(121)	(1,764)	(349)
Net increase (decrease) in cash and cash equivalents	(66)	(178)	(1,195)
Cash and cash equivalents, beginning of period	1,538	1,716	2,911
Cash and cash equivalents, end of period	1,472	1,538	1,716
Less: Cash and cash equivalents of discontinued operations, end of period	291	301	862
Cash and cash equivalents of continuing operations, end of period	1,181	1,237	854
Supplemental cash flow information:
Income taxes (received) paid, net	(127)	1	(154)
Interest paid	159	180	174
Non-cash investing and financing activities:
Leased assets in exchange for finance lease liabilities	68	0	0
Treasury stock retirement	0
Accounting Standards Update 2016-02
Non-cash investing and financing activities:
Initial recognition of operating leases upon adoption of ASU 2016-02	146	0	0
Unappropriated
Cash Flows from Operating Activities:
Net income (loss)	(351)	875	(2,992)
Non-cash investing and financing activities:
Treasury stock retirement	$ 7,787	$ 0	$ 0

Business, Basis of Presentation and Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Business, Basis of Presentation and Significant Accounting Policies

Business

Voya Financial, Inc. and its subsidiaries (collectively the "Company") is a financial services organization in the United States that offers a broad range of retirement services, investment management services, mutual funds, group insurance and supplemental health products.

On December 18, 2019, the Company entered into a Master Transaction Agreement (the “Resolution MTA”) with Resolution Life U.S. Holdings Inc., a Delaware corporation (“Resolution Life US”), pursuant to which Resolution Life US will acquire all of the shares of the capital stock of Security Life of Denver Company ("SLD") and Security Life of Denver International Limited ("SLDI"), including the capital stock of several subsidiaries of SLD and SLDI. The transaction is expected to close by September 30, 2020 and is subject to conditions specified in the Resolution MTA, including the receipt of required regulatory approvals. The assets and liabilities related to the businesses to be sold have been classified as held for sale in the accompanying Consolidated Balance Sheets and as discontinued operations in the accompanying Consolidated Statements of Operations and Consolidated Statements of Cash Flows and are reported separately for all periods presented. See the Business Held for Sale and Discontinued Operations Note to these Consolidated Financial Statements.

Concurrently with the sale, SLD will enter into reinsurance agreements with insurance subsidiaries of the Company. Pursuant to these agreements, the Company's subsidiaries will reinsure to SLD certain individual life insurance and annuities businesses. The sale of SLD, SLDI and several of their subsidiaries along with the aforementioned reinsurance transactions are referred to herein as the "Individual Life Transaction". The Individual Life Transaction will result in the disposition of substantially all of our life insurance and legacy non-retirement annuity businesses and related assets. As such, the Company will no longer report its Individual Life business as an operating segment.

On June 1, 2018, the Company consummated a series of transactions (collectively, the " 2018 Transaction") pursuant to a Master Transaction Agreement dated December 20, 2017 (the "2018 MTA") with VA Capital Company LLC ("VA Capital") and Athene Holding Ltd. ("Athene"). As part of the Transaction, Venerable Holdings, Inc. ("Venerable"), a wholly owned subsidiary of VA Capital, acquired two of the Company's subsidiaries, Voya Insurance and Annuity Company ("VIAC") and Directed Services, LLC ("DSL"), and VIAC and other Voya subsidiaries reinsured to Athene substantially all of their fixed and fixed indexed annuities business. In connection with the 2018 Transaction, VIAC and another Voya subsidiary engaged in a series of reinsurance arrangements pursuant to which Voya and its subsidiaries other than VIAC retained VIAC’s businesses other than variable annuities and fixed and fixed indexed annuities. The Transaction resulted in the disposition of substantially all of the Company's Closed Block Variable Annuity ("CBVA") and Annuities businesses.

The Company provides its principal products and services through three segments: Retirement, Investment Management and Employee Benefits. In addition, the Company includes in Corporate activities that are not directly related to its segments and certain run-off activities that are not meaningful to the Company's business strategy. See the Segments Note to these Consolidated Financial Statements.

Prior to May 2013, 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 ("IPO") 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.

Basis of Presentation

The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP").

The Consolidated Financial Statements include the accounts of Voya Financial, Inc. and its subsidiaries, as well as other (voting interest entities ("VOEs")) and variable interest entities ("VIEs") in which the Company has a controlling financial interest. See the Consolidated Investment Entities Note to these Consolidated Financial Statements. Intercompany transactions and balances have been eliminated.

Significant Accounting Policies

Estimates and Assumptions

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 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 Company has identified the following accounts and policies as the most significant in that they involve a higher degree of judgment, are subject to a significant degree of variability and/or contain significant accounting estimates:


•	Reserves for future policy benefits;


•	Deferred policy acquisition costs ("DAC"), value of business acquired ("VOBA") and other intangibles (collectively, "DAC/VOBA and other intangibles");


•	Valuation of investments and derivatives;


•	Impairments;


•	Income taxes;


•	Contingencies; and


•	Employee benefit plans.

Fair Value Measurement

The Company measures the fair value of its financial assets and liabilities based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset, or nonperformance risk, including the Company's own credit risk. The estimate of fair value is the price that would be received to sell an asset or transfer a liability ("exit price") in an orderly transaction between market participants in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability. The Company uses a number of valuation sources to determine the fair values of its financial assets and liabilities, including quoted market prices, third-party commercial pricing services, third-party brokers, industry-standard, vendor-provided software that models the value based on market observable inputs, and other internal modeling techniques based on projected cash flows.

Investments

The accounting policies for the Company's principal investments are as follows:

Fixed Maturities and Equity Securities: 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").

The Company's fixed maturities are currently designated as available-for-sale, except those accounted for using the fair value option ("FVO"). 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 DAC/VOBA and other intangibles and Deferred income taxes. In addition, certain fixed maturities have embedded derivatives, which are reported with the host contract on the 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 Consolidated Statements of Operations. Certain collateralized mortgage obligations ("CMOs"), primarily interest-only and principal-only strips, are accounted for as hybrid instruments and valued at fair value with changes in the fair value recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations.

Purchases and sales of fixed maturities and equity securities, excluding private placements, are recorded on the trade date. Purchases and sales of private placements and mortgage loans are recorded on the closing date. Investment gains and losses on sales of securities are generally determined on a first-in-first-out ("FIFO") basis.

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

Included within fixed maturities are loan-backed securities, including residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS") and asset-backed securities ("ABS"). Amortization of the premium or discount from the purchase of these securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single-class and multi-class mortgage-backed securities ("MBS") and ABS are estimated by management using inputs obtained from third-party specialists, including broker-dealers, and based on management's knowledge of the current market. For prepayment-sensitive securities such as interest-only and principal-only strips, inverse floaters and credit-sensitive MBS and ABS securities, which represent beneficial interests in securitized financial assets that are not of high credit quality or that have been credit impaired, the effective yield is recalculated on a prospective basis. For all other MBS and ABS, the effective yield is recalculated on a retrospective basis.

Short-term Investments: Short-term investments include investments with remaining maturities of one year or less, but greater than three months, at the time of purchase. These investments are stated at fair value.

Assets Held in Separate Accounts: Assets held in separate accounts are reported at the fair values of the underlying investments in the separate accounts. The underlying investments include mutual funds, short-term investments, cash and fixed maturities.

Mortgage Loans on Real Estate: The Company's mortgage loans on real estate are all commercial mortgage loans, which are reported at amortized cost, less impairment write-downs and allowance for losses. If a mortgage loan is determined to be impaired (i.e., when it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement), the carrying value of the mortgage loan is reduced to the lower of either the present value of expected cash flows from the loan, discounted at the loan's original purchase yield, 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 a permanent write-down recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Property obtained from foreclosed mortgage loans is recorded in Other investments on the Consolidated Balance Sheets.

Mortgage loans are evaluated by the Company's investment professionals, including an appraisal of loan-specific credit quality, property characteristics and market trends. Loan performance is continuously monitored on a loan-specific basis throughout the year. The Company's review includes submitted appraisals, operating statements, rent revenues and annual inspection reports, among other items. This review evaluates whether the properties are performing at a consistent and acceptable level to secure the debt.

Mortgages are rated for the purpose of quantifying the level of risk. Those loans with higher risk are placed on a watch list and are closely monitored for collateral deficiency or other credit events that may lead to a potential loss of principal or interest. The Company defines delinquent mortgage loans consistent with industry practice as 60 days past due.

Commercial mortgage loans are placed on non-accrual status when 90 days in arrears if the Company has concerns regarding the collectability of future payments, or if a loan has matured without being paid off or extended. Factors considered may include conversations with the borrower, loss of major tenant, bankruptcy of borrower or major tenant, decreased property cash flow, number of days past due, or various other circumstances. Based on an assessment as to the collectability of the principal, a determination is made either to apply against the book value or apply according to the contractual terms of the loan. Funds recovered in excess of book value would then be applied to recover expenses, impairments, and then interest. Accrual of interest resumes after factors resulting in doubts about collectability have improved.

The Company records an allowance for probable losses incurred on non-impaired loans on an aggregate basis, rather than specifically identified probable losses incurred by individual loan.

Policy Loans: Policy loans are carried at an amount equal to the unpaid balance. Interest income on such loans is recorded as earned in Net investment income using the contractually agreed upon interest rate. Generally, interest is capitalized on the policy's anniversary date. Valuation allowances are not established for policy loans, as these loans are collateralized by the cash surrender value of the associated insurance contracts. Any unpaid principal or interest on the loan is deducted from the account value or the death benefit prior to settlement of the policy.

Limited Partnerships/Corporations: The Company uses the equity method of accounting for investments in limited partnership interests that are not consolidated, which primarily consist of investments in private equity funds, hedge funds and other VIEs for which the Company is not the primary beneficiary. Generally, the Company records its share of earnings using a lag methodology, relying on the most recent financial information available, generally not to exceed three months. The Company's earnings from limited partnership interests accounted for under the equity method are recorded in Net investment income.

Other Investments: Other investments are comprised primarily of Federal Home Loan Bank ("FHLB") stock and property obtained from foreclosed mortgage loans, as well as other miscellaneous investments. The Company is a member of the FHLB system and is required to own a certain amount of FHLB stock based on the level of borrowings and other factors. FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value.

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, primarily cash, 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 short-term 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.

Impairments

The Company evaluates its available-for-sale investments quarterly to determine whether there has been an other-than-temporary decline in fair value below the amortized cost basis. This evaluation process entails considerable judgment and estimation. Factors considered in this analysis include, but are not limited to, the length of time and the extent to which the fair value has been less than amortized cost, the issuer's financial condition and near-term prospects, future economic conditions and market forecasts, interest rate changes and changes in ratings of the security. An extended and severe unrealized loss position on a fixed maturity may not have any impact on: (a) the ability of the issuer to service all scheduled interest and principal payments and (b) the evaluation of recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected.

When assessing the Company's intent to sell a security, or if it is more likely than not it will be required to sell a security before recovery of its amortized cost basis, management evaluates facts and circumstances such as, but not limited to, decisions to rebalance the investment portfolio and sales of investments to meet cash flow or capital needs.

When the Company has determined it has the intent to sell, or if it is more likely than not that the Company will be required to sell a security before recovery of its amortized cost basis, and the fair value has declined below amortized cost ("intent impairment"), the individual security is written down from amortized cost to fair value, and a corresponding charge is recorded in Net realized capital gains (losses) in the Consolidated Statements of Operations as an other-than-temporary impairment ("OTTI"). If the Company does not intend to sell the security, and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, but the Company has determined that there has been an other-than-temporary decline in fair value below the amortized cost basis, the OTTI is bifurcated into the amount representing the present value of the decrease in cash flows expected to be collected ("credit impairment") and the amount related to other factors ("noncredit impairment"). The credit impairment is recorded in Net realized capital gains (losses) in the Consolidated Statements of Operations. The noncredit impairment is recorded in Other comprehensive income (loss).

The Company uses the following methodology and significant inputs to determine the amount of the OTTI credit loss:

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When determining collectability and the period over which the value is expected to recover for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the Company applies the same considerations utilized in its overall impairment evaluation process, which incorporates information regarding the specific security, the industry and geographic area in which the issuer operates and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from the Company's best estimates of likely scenario-based outcomes, after giving consideration to a variety of variables that includes, but is not limited to: general payment terms of the security; the likelihood that the issuer can service the scheduled interest and principal payments; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies.

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Additional considerations are made when assessing the unique features that apply to certain structured securities, such as subprime, Alt-A, non-agency RMBS, CMBS and ABS. These additional factors for structured securities include, but are not limited to: the quality of underlying collateral; expected prepayment speeds; loan-to-value ratios; debt service coverage ratios; current and forecasted loss severity; consideration of the payment terms of the underlying assets backing a particular security; and the payment priority within the tranche structure of the security.

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When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the Company considers the estimated fair value as the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, the Company considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process, which incorporates available information and the Company's best estimate of scenario-based outcomes regarding the specific security and issuer; possible corporate restructurings or asset sales by the issuer; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; fundamentals of the industry and geographic area in which the security issuer operates; and the overall macroeconomic conditions.


•	The Company performs a discounted cash flow analysis comparing the current amortized cost of a security to the present value of future cash flows expected to be received, including estimated defaults and prepayments. The discount rate is generally the effective interest rate of the fixed maturity prior to impairment.

In periods subsequent to the recognition of the credit related impairment components of OTTI on a fixed maturity, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted into Net investment income over the remaining term of the fixed maturity in a prospective manner based on the amount and timing of estimated future cash flows.

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 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.

The Company enters 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. The Company also utilizes options and futures on equity indices to reduce and manage risks associated with its universal life-type and annuity products. Derivative contracts are reported as Derivatives assets or liabilities on the Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations.

To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge as either (a) a hedge of the exposure to changes in the estimated fair value of a recognized asset or liability or an identified portion thereof that is attributable to a particular risk ("fair value hedge") or (b) a hedge of a forecasted transaction or of the variability of cash flows that is attributable to interest rate risk to be received or paid related to a recognized asset or liability ("cash flow hedge"). In this documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth

the method that will be used to retrospectively and prospectively assess the hedging instrument's effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship.


•	Fair Value Hedge: For derivative instruments that are designated and qualify as a fair value hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in the same line item in the Consolidated Statements of Operations as impacted by the hedged item.

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Cash Flow Hedge: For derivative instruments that are designated and qualify as a cash flow hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is reported as a component of AOCI. Those amounts are subsequently reclassified to earnings when the hedged item affects earnings, and are reported in the same line item in the Consolidated Statements of Operations as impacted by the hedged item.

When hedge accounting is discontinued because it is determined that the derivative is no longer expected to be highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the Consolidated Balance Sheets at its estimated fair value, with subsequent changes in estimated fair value recognized currently in Other net realized capital gains (losses). The carrying value of the hedged asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in Other comprehensive income (loss) related to discontinued cash flow hedges are released into the Consolidated Statements of Operations when the Company's earnings are affected by the variability in cash flows of the hedged item.

When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date, or within two months of that date, the derivative continues to be carried on the Consolidated Balance Sheets at its estimated fair value, with changes in estimated fair value recognized currently in Other net realized capital gains (losses). Derivative gains and losses recorded in Other comprehensive income (loss) pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in Other net realized capital gains (losses).

The Company also has investments in certain fixed maturities and has issued certain universal life-type and 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 Consolidated Balance Sheets, and changes in the fair value of the embedded derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations. Embedded derivatives within certain universal life-type and annuity products are included in Future policy benefits on the Consolidated Balance Sheets, and changes in the fair value of the embedded derivatives are recorded in Other net realized capital gains (losses) in the Consolidated Statements of Operations.

In addition, the Company has entered into coinsurance with funds withheld and modified coinsurance reinsurance arrangements that contain embedded derivatives, 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 coinsurance with funds withheld reinsurance arrangements and modified coinsurance reinsurance arrangements are reported with the host contract in Other liabilities and Premium receivables and reinsurance recoverable, respectively, on the Consolidated Balance Sheets.Changes in the fair value of embedded derivatives are recorded in Policyholder benefits in the Consolidated Statements of Operations.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, amounts due from banks and other highly liquid investments, such as money market instruments and debt instruments with maturities of three months or less at the time of purchase. Cash and cash equivalents are stated at fair value. Cash and cash equivalents of VIEs and VOEs are not available for general use by the Company.

Deferred Policy Acquisition Costs, Value of Business Acquired and Other Intangibles

DAC represents policy acquisition costs that have been capitalized and are subject to amortization and interest. Capitalized costs are incremental, direct costs of contract acquisition and certain other costs related directly to successful acquisition activities. Such costs consist principally of commissions, underwriting, sales and contract issuance and processing expenses directly related to the successful acquisition of new and renewal business. Indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expense as incurred. VOBA represents the outstanding value of in-force business acquired and is subject to amortization and interest. The value is based on the present value of estimated net cash flows embedded in the insurance contracts at the time of the acquisition and increased for subsequent deferrable expenses on purchased policies.

Collectively, the Company refers to DAC, VOBA, deferred sales inducements ("DSI") and unearned revenue ("URR") as "DAC/VOBA and other intangibles." (See " Insurance Revenue and Related Benefits" section below). DAC/VOBA and other intangibles are adjusted for the impact of unrealized capital gains (losses) on investments, as if such gains (losses) have been realized, with corresponding adjustments included in AOCI.

Amortization Methodologies

The Company amortizes DAC and VOBA related to certain traditional life insurance contracts and certain accident and health insurance contracts over the premium payment period in proportion to the present value of expected gross premiums. Assumptions as to mortality, morbidity, persistency and interest rates, which include provisions for adverse deviation, are consistent with the assumptions used to calculate reserves for future policy benefits.

These assumptions are "locked-in" at issue and not revised unless the DAC or VOBA balance is deemed to be unrecoverable from future expected profits. Recoverability testing is performed for current issue year products to determine if gross premiums are sufficient to cover DAC or VOBA, estimated benefits and related expenses. In subsequent periods, the recoverability of DAC or VOBA is determined by assessing whether future gross premiums are sufficient to amortize DAC or VOBA, as well as provide for expected future benefits and related expenses. If a premium deficiency is deemed to be present, charges will be applied against the DAC and VOBA balances before an additional reserve is established. Absent such a premium deficiency, variability in amortization after policy issuance or acquisition relates only to variability in premium volumes.

The Company amortizes DAC and VOBA related to universal life-type contracts and fixed and variable deferred annuity contracts over the estimated lives of the contracts in relation to the emergence of estimated gross profits. Assumptions as to mortality, persistency, interest crediting rates, fee income, returns associated with separate account performance, impact of hedge performance, expenses to administer the business and certain economic variables, such as inflation, are based on the Company's experience and overall capital markets. At each valuation date, estimated gross profits are updated with actual gross profits, and the assumptions underlying future estimated gross profits are evaluated for continued reasonableness. Adjustments to estimated gross profits require that amortization rates be revised retroactively to the date of the contract issuance ("unlocking"). As of December 31, 2019, $1,478 of DAC/VOBA is amortized in relation to the emergence of estimated gross profits of which $904 and $574 are reported in Deferred policy acquisition costs and Value of business acquired, and Assets held for sale, respectively, on the consolidated balance sheets.

For universal life-type contracts and fixed and variable deferred annuity contracts, recoverability testing is performed for current issue year products to determine if gross profits are sufficient to cover DAC/VOBA and other intangibles, estimated benefits and related expenses. In subsequent years, the Company performs testing to assess the recoverability of DAC/VOBA and other intangibles on an annual basis, or more frequently if circumstances indicate a potential loss recognition issue exists. If DAC/VOBA or other intangibles are not deemed recoverable from future gross profits, charges will be applied against the DAC/VOBA or other intangible balances before an additional reserve is established.

Internal Replacements

Contract owners may periodically exchange one contract for another, or make modifications to an existing contract. These transactions are identified as internal replacements. Internal replacements that are determined to result in substantially unchanged contracts are accounted for as continuations of the replaced contracts. Any costs associated with the issuance of the new contracts are considered maintenance costs and expensed as incurred. Unamortized DAC/VOBA and other intangibles related to the replaced contracts continue to be deferred and amortized in connection with the new contracts. Internal replacements that are determined to result in contracts that are substantially changed are accounted for as extinguishments of the replaced contracts, and any unamortized DAC/VOBA and other intangibles related to the replaced contracts are written off to the same account in which amortization is reported in the Consolidated Statements of Operations.

Assumptions

Changes in assumptions can have a significant impact on DAC/VOBA and other intangible balances, amortization rates, reserve levels, and results of operations. Assumptions are management’s best estimate of future outcome.

Several assumptions are considered significant in the estimation of gross profits associated with the Company's variable products. One significant assumption is the assumed return associated with the variable account performance. To reflect the volatility in the equity markets, this assumption involves a combination of near-term expectations and long-term assumptions regarding market performance. The overall return on the variable account is dependent on multiple factors, including the relative mix of the underlying sub-accounts among bond funds and equity funds, as well as equity sector weightings. The Company uses a reversion to the mean approach, which assumes that the market returns over the entire mean reversion period are consistent with a long-term level of equity market appreciation. The Company monitors market events and only changes the assumption when sustained deviations are expected. This methodology incorporates a 9% long-term equity return assumption, a 14% cap and a five-year look-forward period.

Other significant assumptions used in the estimation of gross profits include mortality, and for products with credited rates include interest rate spreads and credit losses. Estimated gross profits of variable annuity contracts are sensitive to mortality and estimated policyholder behavior assumptions, such as surrender, lapse and annuitization rates.

Contract Costs Associated with Certain Financial Services Contracts

Contract cost assets represent costs incurred to obtain or fulfill a non-insurance financial services 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. 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.

Capitalized contract costs are included in Other assets on the Consolidated Balance Sheets, and costs expensed as incurred are included in Operating expenses in the Consolidated Statements of Operations.

As of December 31, 2019 and 2018, contract cost assets were $111 and $108, respectively. For the years ended December 31, 2019 and 2018, amortization expense of $25 and $24, respectively, was recorded in Operating expenses in the Consolidated Statement of Operations. There was no impairment loss in relation to the contract costs capitalized.

Future Policy Benefits and Contract Owner Account Balances

Future Policy Benefits

The Company establishes and carries actuarially-determined reserves that are calculated to meet its future obligations, including estimates of unpaid claims and claims that the Company believes have been incurred but have not yet been reported as of the balance sheet date. The principal assumptions used to establish liabilities for future policy benefits are based on Company experience and periodically reviewed against industry standards. These assumptions include mortality, morbidity, policy lapse, contract renewal, payment of subsequent premiums or deposits by the contract owner, retirement, investment returns, inflation, benefit utilization and expenses. Changes in, or deviations from, the assumptions used can significantly affect the Company's reserve levels and related results of operations.

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Reserves for traditional life insurance contracts (term insurance, participating and non-participating whole life insurance and traditional group life insurance) and accident and health insurance represent the present value of future benefits to be paid to or on behalf of contract owners and related expenses, less the present value of future net premiums. Assumptions as to interest rates, mortality, expenses and persistency are based on the Company's estimates of anticipated experience at the period the policy is sold or acquired, including a provision for adverse deviation. Interest rates used to calculate the present value of these reserves ranged from 2.3% to 7.7%.


•	Reserves for payout contracts with life contingencies are equal to the present value of expected future payments. Assumptions as to interest rates, mortality and expenses are based on the Company's estimates of anticipated experience at the period the policy is sold or acquired, including a provision for adverse deviation. Such assumptions generally vary

by annuity plan type, year of issue and policy duration. Interest rates used to calculate the present value of future benefits ranged from 2.7% to 8.3%.

Although assumptions are "locked-in" upon the issuance of traditional life insurance contracts, certain accident and health insurance contracts and payout contracts with life contingencies, significant changes in experience or assumptions may require the Company to provide for expected future losses on a product by establishing premium deficiency reserves. Premium deficiency reserves are determined based on best estimate assumptions that exist at the time the premium deficiency reserve is established and do not include a provision for adverse deviation.

During the year ended December 31, 2017, as a result of the 2018 Transaction and the sale of substantially all of the Annuities and CBVA businesses discussed above, the Company has evaluated and redefined its contract groupings for loss recognition testing in those businesses. This has resulted in the establishment of premium deficiency reserves of $43 as of December 31, 2017 for the contracts that were not part of the 2018 Transaction. Of that amount, $18 is recorded as an increase in Policyholder benefits in the Consolidated Statement of Operations, with a corresponding increase to Future policy benefits on the Consolidated Balance Sheet, and $25 is reported in Income (loss) from discontinued operations, net of tax in the Consolidated Statement of Operations, with a corresponding amount in Liabilities held for sale on the Consolidated Balance Sheet.

Contract Owner Account Balances

Contract owner account balances relate to universal life-type and investment-type contracts, as follows:


•	Account balances for funding agreements with fixed maturities are calculated using the amount deposited with the Company, less withdrawals, plus interest accrued to the ending valuation date. Interest on these contracts is accrued by a predetermined index, plus a spread or a fixed rate, established at the issue date of the contract.


•	Account balances for universal life-type contracts, including variable universal life ("VUL") contracts, are equal to cumulative deposits, less charges, withdrawals and account values released upon death, plus credited interest thereon.

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Account balances for fixed annuities and payout contracts without life contingencies are equal to cumulative deposits, less charges and withdrawals, plus credited interest thereon. Credited interest rates vary by product and ranged up to 7.5% for the years 2019, 2018 and 2017. Account balances for group immediate annuities without life contingent payouts are equal to the discounted value of the payment at the implied break-even rate.


•	For fixed-indexed annuity ("FIA") and indexed universal life ("IUL") contracts, the aggregate initial liability is equal to the deposit received, plus a bonus, if applicable, and is split into a host component and an embedded derivative component. Thereafter, the host liability accumulates at a set interest rate, and the embedded derivative liability is recognized at fair value.

Product Guarantees and Additional Reserves

The Company calculates additional reserve liabilities for certain universal life-type products, certain variable annuity guaranteed benefits and variable funding products. The Company periodically evaluates its estimates and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. Changes in, or deviations from, the assumptions used can significantly affect the Company's reserve levels and related results of operations.

Universal and Variable Life: Reserves for universal life ("UL") and VUL secondary guarantees and paid-up guarantees are calculated by estimating the expected value of death benefits payable and recognizing those benefits ratably over the accumulation period based on total expected assessments. The reserve for such products recognizes the portion of contract assessments received in early years used to compensate the Company for benefits provided in later years. Assumptions used, such as the interest rate, lapse rate and mortality, are consistent with assumptions used in estimating gross profits for purposes of amortizing DAC. Reserves for UL and VUL secondary guarantees and paid-up guarantees are recorded in Future policy benefits on the Consolidated Balance Sheets.

The Company also calculates a benefit ratio for each block of business that meets the requirements for additional reserves and calculates an additional reserve by accumulating amounts equal to the benefit ratio multiplied by the assessments for each period, reduced by excess benefits during the period. The additional reserve is accumulated at interest rates consistent with the DAC model for the period. The calculated reserve includes provisions for UL contracts that produce expected gains from the insurance benefit function followed by losses from that function in later years. Additional reserves are recorded in Future policy benefits on the Consolidated Balance Sheets.

URR relates to UL and VUL products and represents policy charges for benefits or services to be provided in future periods (see "Recognition of Insurance Revenue and Related Benefits" below). The URR balance is recorded in Contract owner account balances on the Consolidated Balance Sheets.

GMDB and GMIB: Reserves for annuity guaranteed minimum death benefits ("GMDB") and guaranteed minimum income benefits ("GMIB") are determined by estimating the value of expected benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. Expected experience is based on a range of scenarios. Assumptions used, such as the long-term equity market return, lapse rate and mortality, are consistent with assumptions used in estimating gross revenues for the purpose of amortizing DAC. The assumptions of investment performance and volatility are consistent with the historical experience of the appropriate underlying equity index, such as the Standard & Poor's ("S&P") 500 Index. In addition, the reserve for the GMIB incorporates assumptions for the likelihood and timing of the potential annuitizations that may be elected by the contract owner. In general, the Company assumes that GMIB annuitization rates will be higher for policies with more valuable ("in the money") guarantees, where the notional benefit amount is in excess of the account value. Reserves for GMDB and GMIB are recorded in Future policy benefits. Changes in reserves for GMDB and GMIB are reported in Policyholder benefits.

GMWBL, GMWB, FIA and IUL: The Company has in force contracts that contain embedded derivatives that are measured at estimated fair value separately from the host contracts. These products include deferred variable annuity contracts containing guaranteed minimum withdrawal benefits with life payouts ("GMWBL") and guaranteed minimum withdrawal benefits without life contingencies ("GMWB") features and FIA and IUL contracts. Embedded derivatives associated with GMWB and GMWBL are recorded in Future policy benefits. Embedded derivatives associated with FIA and IUL contracts are recorded in Contract owner account balances. Changes in estimated fair value, that are not related to attributed fees or premiums collected or payments made, are reported in Other net realized capital gains (losses).

At inception of the contracts containing the GMWBL and GMWB features, the Company projects a fee to be attributed to the embedded derivative portion of the guarantee equal to the present value of projected future guaranteed benefits. After inception, the estimated fair value of the GMWBL and GMWB embedded derivatives is determined based on the present value of projected future guaranteed benefits, minus the present value of projected attributed fees. A risk neutral valuation methodology is used under which the cash flows from the guarantees are projected under multiple capital market scenarios using observable risk free rates. The projection of future guaranteed benefits and future attributed fees requires the use of assumptions for capital markets (e.g., implied volatilities, correlation among indices, risk-free swap curve, etc.) and policyholder behavior (e.g., lapse, benefit utilization, mortality, etc.).

The estimated fair value of the embedded derivative in the FIA contracts is based on the present value of the excess of interest payments to the contract owners over the growth in the minimum guaranteed contract value. The excess interest payments are determined as the excess of projected index driven benefits over the projected guaranteed benefits. The projection horizon is over the anticipated life of the related contracts, which takes into account best estimate actuarial assumptions, such as partial withdrawals, full surrenders, deaths, annuitizations and maturities.

The estimated fair value of the embedded derivative in the IUL contracts is based on the present value of the excess of interest payments to the contract owners over the growth in the minimum guaranteed account value. The excess interest payments are determined as the excess of projected index driven benefits over the projected guaranteed benefits. The projection horizon is over the current index term of the related contracts, which takes into account best estimate actuarial assumptions, such as partial withdrawals, full surrenders, deaths and maturities.

Stabilizer and MCG: Guaranteed credited rates give rise to an embedded derivative in the Stabilizer products and a stand-alone derivative for managed custody guarantee products ("MCG"). These derivatives are measured at estimated fair value and recorded in Contract owner account balances on the Consolidated Balance Sheets. Changes in estimated fair value, that are not related to attributed fees collected or payments made, are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations.

The estimated fair value of the Stabilizer embedded derivative and MCG stand-alone derivative 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 actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are projected under multiple capital market scenarios using observable risk-free rates and other best estimate assumptions.

The liabilities for the GMWBL, GMWB, FIA, IUL and Stabilizer embedded derivatives and the MCG stand-alone derivative (collectively, "guaranteed benefit derivatives") include a risk margin to capture uncertainties related to policyholder behavior assumptions. The margin represents additional compensation a market participant would require to assume these risks.

The discount rate used to determine the fair value of the liabilities for the GMWBL, GMWB, FIA, IUL and Stabilizer embedded derivatives and the MCG stand-alone derivative includes an adjustment to reflect the risk that these obligations will not be fulfilled ("nonperformance risk").

Separate Accounts

Separate account assets and liabilities generally represent funds maintained to meet specific investment objectives of contract owners or participants who bear the investment risk, subject, in limited cases, to minimum guaranteed rates. Investment income and investment gains and losses generally accrue directly to such contract owners. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of the Company.

Separate account assets supporting variable options under variable annuity contracts are invested, as designated by the contract owner or participant under a contract, in shares of mutual funds that are managed by the Company or in other selected mutual funds not managed by the Company.

The Company reports separately, as assets and liabilities, investments held in the separate accounts and liabilities of separate accounts if:


•	Such separate accounts are legally recognized;


•	Assets supporting the contract liabilities are legally insulated from the Company's general account liabilities;


•	Investments are directed by the contract owner or participant; and


•	All investment performance, net of contract fees and assessments, is passed through to the contract owner.

The Company reports separate account assets that meet the above criteria at fair value on the Consolidated Balance Sheets based on the fair value of the underlying investments. Separate account liabilities equal separate account assets. Investment income and net realized and unrealized capital gains (losses) of the separate accounts, however, are not reflected in the Consolidated Statements of Operations, and the Consolidated Statements of Cash Flows do not reflect investment activity of the separate accounts.

Short-term and Long-term Debt

Short-term and long-term debt are carried on the Consolidated Balance Sheets at an amount equal to the unpaid principal balance, net of any remaining unamortized discount or premium and any direct and incremental costs attributable to issuance. Discounts, premiums and direct and incremental costs are amortized as a component of Interest expense in the Consolidated Statements of Operations over the life of the debt using the effective interest method of amortization.

Repurchase Agreements

The Company engages in dollar repurchase agreements with MBS ("dollar rolls") and repurchase agreements with other collateral types to increase its return on investments and improve liquidity. Such arrangements meet the requirements to be accounted for as financing arrangements.

The Company enters into dollar roll transactions by selling existing MBS and concurrently entering into an agreement to repurchase similar securities within a short time frame at a lower price. Under repurchase agreements, the Company borrows cash from a counterparty at an agreed upon interest rate for an agreed upon time frame and pledges collateral in the form of securities. At the end of the agreement, the counterparty returns the collateral to the Company, and the Company, in turn, repays the loan amount along with the additional agreed upon interest.

The Company's policy requires that at all times during the term of the dollar roll and repurchase agreements that cash or other collateral types obtained is sufficient to allow the Company to fund substantially all of the cost of purchasing replacement assets. Cash received is generally invested in Short-term investments, with the offsetting obligation to repay the loan included within Payables under securities loan and repurchase agreements, including collateral held on the Consolidated Balance Sheets. The carrying value of the securities pledged in dollar rolls and repurchase agreement transactions is included in Securities pledged on the Consolidated Balance Sheets.

The primary risk associated with short-term collateralized borrowings is that the counterparty will be unable to perform under the terms of the contract. The Company's exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments. The Company believes the counterparties to the dollar rolls and repurchase agreements are financially responsible and that the counterparty risk is minimal.

Recognition of Revenue

Insurance Revenue and Related Benefits

Premiums related to traditional life insurance contracts and payout contracts with life contingencies are recognized in Premiums in the Consolidated Statements of Operations when due from the contract owner. When premiums are due over a significantly shorter period than the period over which benefits are provided, any gross premium in excess of the net premium (i.e., the portion of the gross premium required to provide for expected future benefits and expenses) is deferred and recognized into revenue in a constant relationship to insurance in force. Benefits are recorded in Policyholder benefits in the Consolidated Statements of Operations when incurred.

Amounts received as payment for investment-type, universal life-type, fixed annuities, payout contracts without life contingencies and FIA contracts are reported as deposits to contract owner account balances. Revenues from these contracts consist primarily of fees assessed against the contract owner account balance for mortality and policy administration charges and are reported in Fee income. Surrender charges are reported in Other revenue. In addition, the Company earns investment income from the investment of contract deposits in the Company's general account portfolio, which is reported in Net investment income in the Consolidated Statements of Operations. Fees assessed that represent compensation to the Company for services to be provided in future periods and certain other fees are established as a URR liability and amortized into revenue over the expected life of the related contracts in proportion to estimated gross profits in a manner consistent with DAC for these contracts. URR is reported in Contract owner account balances and amortized into Fee income. Benefits and expenses for these products include claims in excess of related account balances, expenses of contract administration and interest credited to contract owner account balances.

Performance-based Capital Allocations on Private Equity Funds

Under asset management arrangements for certain of its sponsored private equity funds, the Company, as General Partner, is entitled to receive performance-based capital allocations ("carried interest") when the return on assets under management for such funds exceeds prescribed investment return hurdles or other performance targets. Carried interest is accrued quarterly based on measuring cumulative fund performance against the stated performance hurdle, as if the fund was liquidated at its estimated fair value as of the applicable balance sheet date.

Carried interest is subject to adjustment to the extent that subsequent fund performance causes the fund’s cumulative investment return to fall below specified investment return hurdles. In such a circumstance, some or all of the previously accrued carried interest is reversed to the extent that the Company is no longer entitled to the performance-based capital allocation and, if such allocations have been distributed to the Company but are subject to recoupment by the fund, a liability is established for the potential repayment obligation.

Financial Services Revenue

Revenue for various financial services is measured based on consideration specified in a contract with a customer and is recognized when the Company has satisfied a performance obligation. For advisory, asset management, and recordkeeping and administration services of $1,423 and $1,426 for the years ended December 31, 2019 and 2018, respectively, the Company recognizes revenue as services are provided, generally over time. For distribution and shareholder servicing revenue of $438 and $469 for the years ended December 31, 2019 and 2018, respectively, the Company recognizes revenue as related consideration is received and provides distribution services at a point in time and shareholder services over time. Contract terms are typically less than one year, and consideration is variable.

For a description of principal activities by reportable segment from which the Company generates revenue, see the Segments Note in these Consolidated Financial Statements for further information.

For the year ended December 31, 2019, such revenue represents approximately 27.4% of total Retirement revenue, all of Investment Management revenue, and 3.6% of Corporate revenue. For the year ended December 31, 2018, such revenue represents approximately 28.4% of total Retirement revenue, all of Investment Management revenue, and 17.3% of Corporate revenue. Such revenue is immaterial for the Employee Benefits segment. For the years ended December 31, 2019 and 2018, a portion of the revenue recognized in the current period from distribution services is related to performance obligations satisfied in previous periods. Revenue for various financial services is recorded in Fee income or Other revenue in the Consolidated Statements of Operations. Receivables of $249 and $237 are included in Other assets on the Consolidated Balance Sheet as of December 31, 2019 and 2018, respectively.

Income Taxes

The Company files a consolidated federal income tax return, which includes many of its subsidiaries, in accordance with the Internal Revenue Code of 1986, as amended.

Items required by tax regulations to be included in the tax return may differ from the items reflected in the financial statements. As a result, the effective tax rate reflected in the financial statements may be different than the actual rate applied on the tax return. Some of these differences are permanent, such as the dividends received deduction which is estimated using information from the prior period and current year results. Other differences are temporary, reversing over time, such as the valuation of insurance reserves, and create deferred tax assets and liabilities.

The Company's deferred tax assets and liabilities resulting from temporary differences between financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse.

Deferred tax assets represent the tax benefit of future deductible temporary differences, net operating loss carryforwards and tax credit carryforwards. The Company evaluates and tests the recoverability of its 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. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, the Company considers many factors, including:


•	The nature, frequency and severity of book income or losses in recent years;


•	The nature and character of the deferred tax assets and liabilities;


•	The nature and character of income by life and non-life subgroups;


•	The recent cumulative book income (loss) position after adjustment for permanent differences;


•	Taxable income in prior carryback years;


•	Projected future taxable income, exclusive of reversing temporary differences and carryforwards;


•	Projected future reversals of existing temporary differences;


•	The length of time carryforwards can be utilized;


•	Prudent and feasible tax planning strategies the Company would employ to avoid a tax benefit from expiring unused; and


•	Tax rules that would impact the utilization of the deferred tax assets.

In establishing unrecognized tax benefits, the Company determines whether a tax position is more likely than not to be sustained under examination by the appropriate taxing authority. The Company also considers positions that have been reviewed and agreed to as part of an examination by the appropriate taxing authority. Tax positions that do not meet the more likely than not standard are not recognized in the Consolidated Financial Statements. Tax positions that meet this standard are recognized in the Consolidated Financial Statements. The Company measures the tax position as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate resolution with the tax authority that has full knowledge of all relevant information.

Reinsurance

The Company utilizes reinsurance agreements in most aspects of its insurance business to reduce its exposure to large losses. Such reinsurance permits recovery of a portion of losses from reinsurers, although it does not discharge the primary liability of the Company as direct insurer of the risks reinsured.

For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability relating to insurance risk. The Company reviews contractual features, particularly those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. The assumptions used to account for both long and short-duration reinsurance agreements are consistent with those used for the underlying contracts. Ceded Future policy benefits and Contract owner account balances are reported gross on the Consolidated Balance Sheets.

Long-duration: For reinsurance of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid and benefits received related to the underlying contracts is included in the expected net cost of reinsurance, which is recorded as a component of the reinsurance asset or liability. Any difference between actual and expected net cost of reinsurance is recognized in the current period and included as a component of profits used to amortize DAC.

Short-duration: For prospective reinsurance of short-duration contracts that meet the criteria for reinsurance accounting, amounts paid are recorded as ceded premiums and ceded unearned premiums and are reflected as a component of Premiums in the Consolidated Statements of Operations and Other assets on the Consolidated Balance Sheets, respectively. Ceded unearned premiums are amortized through premiums over the remaining contract period in proportion to the amount of protection provided.

For retroactive reinsurance of short-duration contracts that meet the criteria for reinsurance accounting, amounts paid in excess of the related insurance liabilities ceded are recognized immediately as a loss. Any gains on such retroactive agreements are deferred in Other liabilities and amortized over the remaining life of the underlying contracts.

Accounting for reinsurance requires use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance. The Company also evaluates the financial strength of potential reinsurers and continually monitors the financial condition of reinsurers. The S&P ratings for the Company's reinsurers with the largest reinsurance recoverable balances are A-rated or better, including Lincoln National Corporation ("Lincoln") and various subsidiaries of Reinsurance Group of America Incorporated (collectively, "RGA").

Only those reinsurance recoverable balances deemed probable of recovery are recognized as assets on the Company's Consolidated Balance Sheets and are stated net of allowances for uncollectible reinsurance. Amounts currently recoverable and payable under reinsurance agreements are included in Premium receivable and reinsurance recoverable. Such assets and liabilities relating to reinsurance agreements with the same reinsurer are recorded net on the Consolidated Balance Sheets if a right of offset exists within the reinsurance agreement. Premiums, Fee income and Policyholder benefits are reported net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in Other revenue.

The Company has entered into coinsurance funds withheld reinsurance arrangements that contain embedded derivatives for which carrying value is estimated based on the change in the fair value of the assets supporting the funds withheld payable under the agreements.

Employee Benefits Plans

The Company sponsors and/or administers various plans that provide defined benefit pension and other postretirement benefit plans covering eligible employees, sales representatives and other individuals. The plans are generally funded through payments, determined by periodic actuarial calculations, to trustee-administered funds.

A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive upon retirement, usually dependent on one or more factors such as age, years of service and compensation. The liability recognized in respect of defined benefit pension plans is the present value of the projected pension benefit obligation ("PBO") at the balance sheet date, less the fair value of plan assets, together with adjustments for unrecognized past service costs. This liability is included in Pension and other postretirement provisions on the Consolidated Balance Sheets. The PBO is defined as the actuarially calculated present value of vested and non-vested pension benefits accrued based on future salary levels. The Company recognizes the funded status of the PBO for pension plans and the accumulated postretirement benefit obligation ("APBO") for other postretirement plans on the Consolidated Balance Sheets.

Net periodic benefit cost is determined using management estimates and actuarial assumptions to derive service cost, interest cost and expected return on plan assets for a particular year. The obligations and expenses associated with these plans require use of assumptions, such as discount rate, expected rate of return on plan assets, rate of future compensation increases and healthcare cost trend rates, as well as assumptions regarding participant demographics, such as age of retirements, withdrawal rates and mortality. Management determines these assumptions based on a variety of factors, such as historical performance of the plan and its assets, currently available market and industry data and expected benefit payout streams. Actual results could vary significantly from assumptions based on changes, such as economic and market conditions, demographics of participants in the plans and amendments to benefits provided under the plans. These differences may have a significant effect on the Company's Consolidated Financial Statements and liquidity. Differences between the expected return and the actual return on plan assets and actuarial gains (losses) are immediately recognized in Operating expenses in the Consolidated Statements of Operations.

For postretirement healthcare and other benefits to retirees, the entitlement to these benefits is usually conditional on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued in Pension and other postretirement provisions over the period of employment using an accounting methodology similar to that for defined benefit pension plans. Actuarial gains (losses) are immediately recognized in Operating expenses in the Consolidated Statements of Operations.

Share-based Compensation

The Company grants certain employees and directors share-based compensation awards under various plans. Share-based compensation plans are subject to certain vesting conditions. The Company measures the cost of its share-based awards at their grant date fair value, which in the case of restricted stock units ("RSUs ") and performance share units ("PSUs"), is based upon the market value of the Company's common stock on the date of grant. The Company grants certain PSU awards, which are subject to attainment of specified total shareholder return ("TSR") targets relative to a specified peer group. The number of TSR-based PSU awards expected to be earned, based on achievement of the market condition, is factored into the grant date Monte Carlo valuation for the award. Fair value of stock options is determined using a Black-Scholes options valuation methodology. Compensation expense is principally related to the granting of performance share units, restricted stock units and stock options and is recognized in Operating expenses in the Consolidated Statements of Operations over the requisite service period. The majority of awards granted are provided in the first quarter of each year. The Company includes estimated forfeitures in the calculation of share-based compensation expense.

The liability related to cash-settled awards is recorded within Other liabilities on the Consolidated Balance Sheets. Unlike equity-settled awards, which have a fixed grant-date fair value, the fair value of unvested cash-settled awards is remeasured at the end of each reporting period until the awards vest.

All excess tax benefits and tax deficiencies related to share-based compensation are reported in Net income (loss).

Earnings per Common Share

Basic earnings per common share ("EPS") is computed by dividing earnings available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed assuming the issuance of nonvested shares, restricted stock units, stock options, performance share units and warrants using the treasury stock method. Basic and diluted earnings per share are calculated using unrounded, actual amounts. Under the treasury stock method, the Company utilizes the average market price to determine the amount of cash that would be available to repurchase shares if the common shares vested. The net incremental share count issued represents the potential dilutive or anti-dilutive securities.

For any period where a loss from continuing operations available to common shareholders is experienced, shares used in the diluted EPS calculation represent basic shares, as using diluted shares would be anti-dilutive to the calculation.

Treasury Stock

All amounts paid to repurchase common stock are recorded as Treasury stock on the Consolidated Balance Sheets. When Treasury stock is retired and the purchase price is greater than par, an excess of purchase price over par is allocated between additional paid-in capital and retained earnings (deficit). Shares that are retired are determined on a FIFO basis.

Consolidation and Noncontrolling Interests

In the normal course of business, the Company invests in, provides investment management services to, and has transactions with, various CLO entities, private equity funds, real estate funds, funds-of-hedge funds, single strategy hedge funds, insurance entities, securitizations and other investment entities. In certain instances, the Company serves as the investment manager, making day-to-day investment decisions concerning the assets of these entities. These entities are considered to be either VIEs or VOEs, and the consolidation guidance requires an assessment involving judgments and analysis to determine (a) whether an entity in which the Company holds a variable interest is a VIE and (b) whether the Company's involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (e.g., management and performance related fees), would give it a controlling financial interest.

The Company consolidates entities in which it, directly or indirectly, is determined to have a controlling financial interest. Consolidation conclusions are reviewed quarterly to identify whether any reconsideration events have occurred.

VIEs: The Company consolidates VIEs for which it is the primary beneficiary at the time it becomes involved with a VIE. An entity is a VIE if it has equity investors who, as a group, lack the characteristics of a controlling financial interest or it does not have sufficient equity at risk to finance its expected activities without additional subordinated financial support from other parties. The primary beneficiary (a) has the power to direct the activities of the entity that most significantly impact the entity's economic performance and (b) has the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity.

VOEs: For entities determined not to be VIEs, the Company consolidates entities in which it holds greater than 50% of the voting interest, or, for limited partnerships, when the Company owns a majority of the limited partnership's kick-out rights through voting interests.

Noncontrolling interest represents the interests of shareholders, other than the Company, in consolidated entities. In the Consolidated Statements of Operations, Net income (loss) attributable to noncontrolling interest represents such shareholders' interests in the earnings and losses of those entities, or the attribution of results from consolidated VIEs or VOEs to which the Company is not economically entitled.

Contingencies

A loss contingency is an existing condition, situation or set of circumstances involving uncertainty as to possible loss that will ultimately be resolved when one or more future events occur or fail to occur. Examples of loss contingencies include pending or threatened adverse litigation, threat of expropriation of assets and actual or possible claims and assessments. Amounts related to loss contingencies are accrued and recorded in Other liabilities on the Consolidated Balance Sheets if it is probable that a loss has been incurred and the amount can be reasonably estimated, based on the Company's best estimate of the ultimate outcome.

Adoption of New Pronouncements

The following table provides a description of the Company's adoption of new Accounting Standard Updates ("ASUs") issued by the Financial Accounting Standards Board ("FASB") and the impact of the adoption on the Company's financial statements.



Standard	Description of Requirements	Effective Date and Method of Adoption	Effect on the Financial Statements or Other Significant Matters
ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income	This standard, issued in February 2018, permits a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for stranded tax effects resulting from the 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.	January 1, 2019, with the change reported in the period of adoption.	The impact to the January 1, 2019 Condensed Consolidated Balance Sheet was an increase to AOCI of $343, with a corresponding decrease to Retained earnings. The ASU did not have a material impact on the Company's results of operations, cash flows, or disclosures.
ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities	This standard, issued in August 2017, 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, and • Eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness, and modifies required disclosures. In October 2018, the FASB issued an amendment which expands the list of U.S. benchmark interest rates permitted in the application of hedge accounting.	January 1, 2019, using the modified retrospective method, with the exception of the presentation and disclosure requirements which were adopted prospectively.	The adoption had no effect on the Company's financial condition, results of operations, or cash flows. The adoption resulted in a change to the Company's significant accounting policy with respect to Derivatives, as follows: Fair Value Hedge: For derivative instruments that are designated and qualify as a fair value hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in the same line item in the Condensed Consolidated Statements of Operations as impacted by the hedged item. Cash Flow Hedge: For derivative instruments that are designated and qualify as a cash flow hedge, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is reported as a component of AOCI. Those amounts are subsequently reclassified to earnings when the hedged item affects earnings, and are reported in the same line item in the Condensed Consolidated Statements of Operations as impacted by the hedged item. Other required disclosure changes have been included in Note 4, Derivative Financial Instruments.



Standard	Description of Requirements	Effective Date and Method of Adoption	Effect on the Financial Statements or Other Significant Matters
ASU 2016-02, Leases	This standard, issued in February 2016, requires lessees to recognize a right-of-use asset and a lease liability for all leases with terms of more than 12 months. The lease liability will be measured as the present value of the lease payments, and the asset will be based on the liability. For income statement purposes, expense recognition will depend on the lessee's classification of the lease as either finance, with a front-loaded amortization expense pattern similar to current capital leases, or operating, with a straight-line expense pattern similar to current operating leases. Lessor accounting will be similar to the current model, and lessors will be required to classify leases as operating, direct financing, or sales-type. ASU 2016-02 also replaces the sale-leaseback guidance to align with the new revenue recognition standard, addresses statement of operation and statement of cash flow classification, and requires additional disclosures for all leases. In addition, the FASB issued various amendments during 2018 to clarify and simplify the provisions and implementation guidance of ASU 2016-02.	January 1, 2019, using the modified retrospective method.	Adoption of the ASU resulted in the establishment of a $146 lease liability for operating leases and a corresponding right-of-use asset, which are included in Other liabilities and Other assets, respectively. The Company elected the practical expedients at transition. The ASU did not impact the Company's Shareholders’ equity or results of operations, and did not materially impact cash flows or disclosures.
ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities	This standard, issued in January 2016, addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments, including requiring: • 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.	January 1, 2018 using the modified retrospective method, except for certain provisions that were required to be applied using the prospective method.	The impact to the January 1, 2018 Consolidated Balance Sheet was a $28 increase, net of tax, to Unappropriated retained earnings with a corresponding decrease of $28, net of tax, to Accumulated other comprehensive income 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.



Standard	Description of Requirements	Effective Date and Method of Adoption	Effect on the Financial Statements or Other Significant Matters
ASU 2014-09, Revenue from Contracts with Customers	This standard, issued in May 2014, 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.	January 1, 2018 using the modified retrospective method.	The adoption had no impact on revenue recognition. However, the adoption resulted in a $106 increase in Other assets to capitalize costs to obtain and fulfill certain financial services contracts in the Retirement segment and Corporate. This adjustment was offset by a related $22 decrease in Deferred income taxes, resulting in a net $84 increase to Retained earnings (deficit) on the 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.) Comparative information has not been adjusted and continues to be reported under previous revenue recognition guidance. As of December 31, 2018, the adoption of ASU 2014-09 resulted in a $108 increase in Other assets, reduced by a related $23 decrease in Deferred income taxes, resulting in a net $85 increase to Retained earnings (deficit) on the Consolidated Balance Sheet. For the year ended December 31, 2018, the adoption resulted in a $2 increase in Operating expenses on the Consolidated Statement of Operations and had no impact on Net cash provided by operating activities.

Future Adoption of Accounting Pronouncements

Long-Duration Contracts

In August 2018, the FASB issued ASU 2018-12, "Financial Services - Insurance (Topic 944) Targeted Improvements to the Accounting for Long-Duration Contracts" ("ASU 2018-12"), which changes the measurement and disclosures of insurance liabilities and deferred acquisition costs for long-duration contracts issued by insurers. In November 2019, the FASB issued ASU 2019-09 to amend the effective date of ASU 2018-12 for public business entities that are required to file with the SEC to fiscal years beginning after December 15, 2021, including interim periods, with early adoption permitted. The Company is currently in the process of evaluating the provisions of ASU 2018-12. While it is not possible to estimate the expected impact of adoption at this time, the Company believes there is a reasonable possibility that implementation of ASU 2018-12 may result in a significant impact on Shareholders’ equity and future earnings patterns.

In addition to requiring significantly expanded interim and annual disclosures regarding long-duration insurance contract assets and liabilities, ASU 2018-12's provisions include modifications to the accounting for such contracts in the following areas:



ASU 2018-12 Subject Area	Description of Requirements	Transition Provisions	Effect on the Financial Statements or Other Significant Matters
Assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited payment insurance contracts	Requires insurers to review and, if necessary, update cash flow assumptions at least annually. The effect of updating cash flow assumptions will be measured on a retrospective catch-up basis and presented in the Statement of Operations in the period in which the update is made. The rate used to discount the liability for future policy benefits will be required to be updated quarterly, with related changes in the liability recorded in AOCI. The discount rate will be based on an upper-medium grade fixed-income corporate instrument yield reflecting the duration characteristics of the relevant liabilities.	Initial adoption is required to be reported using either a full retrospective or modified retrospective approach. Under either method, upon adoption the liability for future policy benefits will be remeasured using current discount rates as of the beginning of the earliest period presented with the impact recorded as a cumulative effect adjustment to AOCI.	The application of periodic assumption updates for nonparticipating traditional and limited payment insurance contracts is significantly different from the current accounting approach for such liabilities, which is based on assumptions that are locked in at contract inception unless a premium deficiency occurs. Under the current accounting guidance, the liability discount rate is based on expected yields on the underlying investment portfolio held by the insurer. The implications of these requirements, including transition options, and related potential financial statement impacts are currently being evaluated.
Measurement of market risk benefits	Creates a new category of benefit features called market risk benefits, defined as features that protect contract holders from capital market risk and expose the insurers to that risk. Market risk benefits will be required to be measured at fair value, with changes in fair value recognized in the Statement of Operations, except for changes in fair value attributable to changes in the instrument-specific credit risk, which will be recorded in AOCI.	Full retrospective application is required. Upon adoption, any difference between the fair value and pre-adoption carrying value of market risk benefits not currently measured at fair value will be recorded to retained earnings. In addition, the cumulative effect of changes in instrument-specific credit risk will be reclassified from retained earnings to AOCI.	Under the current accounting guidance, certain features that are expected to meet the definition of market risk benefits are accounted for as either insurance liabilities or embedded derivatives. The implications of these requirements and related potential financial statement impacts are currently being evaluated.



ASU 2018-12 Subject Area	Description of Requirements	Transition Provisions	Effect on the Financial Statements or Other Significant Matters
Amortization of DAC and other balances	Requires DAC (and other balances that refer to the DAC model, such as deferred sales inducement costs and unearned revenue liabilities) for all long-duration contracts to be measured on a constant level basis over the expected life of the contract.	Initial adoption is required to be reported using either a full retrospective or modified retrospective approach. The method of transition applied for DAC and other balances must be consistent with the transition method selected for future policy benefit liabilities, as described above.	This approach is intended to approximate straight-line amortization and cannot be based on revenue or profits as it is under the current accounting model. Related amounts in AOCI will be eliminated upon adoption. ASU 2018-12 did not change the existing accounting guidance related to value of business acquired ("VOBA") and net cost of reinsurance, which allows, but does not require, insurers to amortize such balances on a basis consistent with DAC. The implications of these requirements, including transition options, and related potential financial statement impacts are currently being evaluated.

The following table provides a description of future adoptions of other new accounting standards that may have an impact on the Company's financial statements when adopted:



Standard	Description of Requirements	Effective Date and Transition Provisions	Effect on the Financial Statements or Other Significant Matters
ASU 2018-15, Implementation costs incurred in a cloud computing arrangement that is a service contract	This standard, issued in August 2018, requires a customer in a hosting arrangement that is a service contract to follow the guidance for internal-use software projects to determine which implementation costs to capitalize as an asset. Capitalized implementation costs are required to be expensed over the term of the hosting arrangement. In addition, a customer is required to apply the impairment and abandonment guidance for long-lived assets to the capitalized implementation costs. Balances related to capitalized implementation costs must be presented in the same financial statement line items as other hosting arrangement balances, and additional disclosures are required.	January 1, 2020 with early adoption permitted. Initial adoption of ASU 2018-15 may be reported either on a prospective or retrospective basis.	The Company intends to adopt ASU 2018-15 as of January 1, 2020 on a prospective basis. The Company does not expect ASU 2018-15 to have a material impact on the Company’s financial condition, results of operations, or cash flows.
ASU 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans	This standard, issued in August 2018, eliminates certain disclosure requirements that are no longer considered cost beneficial and requires new disclosures that are considered relevant.	January 1, 2021 with early adoption permitted. Initial adoption of ASU 2018-14 is required to be reported on a retrospective basis for all periods presented.	The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2018-14.
ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement	This standard, issued in August 2018, simplifies certain disclosure requirements for fair value measurement.	January 1, 2020, including interim periods, with early adoption permitted. The transition method varies by provision.	The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2018-13.
ASU 2016-13, Measurement of Credit Losses on Financial Instruments	This standard, issued in June 2016: • Introduces a new current expected credit loss ("CECL") model to measure impairment on certain types of financial instruments, • Requires an entity to estimate lifetime expected credit losses, under the new CECL model, based on relevant information about historical events, current conditions, and reasonable and supportable forecasts, • 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. In addition, the FASB issued various amendments during 2018 and 2019 to clarify the provisions of ASU 2016-13.	January 1, 2020, including interim periods, with early adoption permitted. 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 believes the adoption of this guidance will not have a material impact on the Company’s financial condition, results of operations or cash flows. The CECL requirements apply to financial assets held at amortized cost, the most significant of which, for the Company, are mortgage loans and reinsurance recoverable balances. Implementation efforts currently in progress include the finalization of CECL models and continuing analysis of model output, as well as development of related processes, controls, and disclosures.

Business Held for Sale and Discontinued Operations

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Business Held for Sale and Discontinued Operations

As noted in the Business, Basis of Presentation and Significant Accounting Policies Note, on December 18, 2019, the Company entered into the Resolution MTA with Resolution Life US to sell several of its subsidiaries and the related Individual Life and fixed and variable annuities businesses within these subsidiaries. Additionally, on June 1, 2018, the Company consummated a series of transactions pursuant to a Master Transaction Agreement (the "2018 MTA") to sell substantially all of its fixed and fixed indexed annuities businesses.

The following table presents summary information related to assets and liabilities classified as held for sale and income (loss) from discontinued operations for the periods presented:



	Year Ended December 31,
	2019		2018
Assets held for sale
Individual Life Transaction	$	20,069	$	20,045
2018 Transaction	—		—
Total	$	20,069	$	20,045

Liabilities held for sale
Individual Life Transaction	$	18,498	$	17,903
2018 Transaction	—		—
Total	$	18,498	$	17,903



	Year Ended December 31,
	2019			2018		2017
Income (loss) from discontinued operations, net of tax
Individual Life Transaction	$	(984	)	$	72	$	107
2018 Transaction	(82		)	457		(2,580		)
Total	$	(1,066	)	$	529	$	(2,473	)

The following table presents summary information related to cash flows from discontinued operations for the periods presented:



	Year Ended December 31,
	2019			2018			2017
Net cash provided by operating activities - discontinued operations
Individual Life Transaction	$	(102	)	$	(410	)	$	100
2018 Transaction	—			1,462			411
Total	$	(102	)	$	1,052		$	511

Net cash provided by investing activities - discontinued operations
Individual Life Transaction	$	(498	)	$	(248	)	$	(1,000	)
2018 Transaction	(128		)	34			(1,261		)
Total	$	(626	)	$	(214	)	$	(2,261	)

Net cash provided by financing activities - discontinued operations
Individual Life Transaction	$	813		$	537		$	887
2018 Transaction	—			(1,209		)	384
Total	$	813		$	(672	)	$	1,271

The Individual Life Transaction

Sale of legal entities

Pursuant to the the Company executing the Resolution MTA and upon closing of the Individual Life Transaction, the Company will sell five of its legal subsidiaries, SLD, SLDI, Roaring River II ("RRII"), Midwestern United Life Insurance Company ("MUL") and Voya American Equities, Inc. ("VAE") to Resolution Life US. Resolution Life US is an insurance holding company newly formed by Resolution Life Group Holdings, L.P., a Bermuda-based limited partnership (“RLGH”). The Individual Life Transaction is expected to close by September 30, 2020 and is subject to conditions specified in the Resolution MTA, including the receipt of required regulatory approvals.

The purchase price in the transaction is approximately $1.25 billion, with an adjustment based on the adjusted capital and surplus of SLD, SLDI and RRII at closing. The purchase price includes cash consideration of approximately $902, a $225 equity interest in RLGH, and $123 principal amount in surplus notes issued by SLD that will be retained by the Company under modified terms. The receivable for the surplus notes and SLD's corresponding liability outstanding as of December 31, 2019 and 2018 are included in Other investments and Liabilities held for sale, respectively, on the Company's Consolidated Balance Sheets. In the summary of major categories of assets and liabilities held for sale below, SLD's corresponding liability for the surplus notes is included in Notes payable.

The Individual Life Transaction is subject to a $100 reverse termination fee that would be payable by Resolution Life US to the Company if the Resolution MTA is terminated in prescribed circumstances related to the failure by Resolution Life US’s reserve financing provider to provide a committed financing facility. A separate $20 termination fee would be payable by Resolution Life US to the Company in prescribed circumstances where the Resolution MTA is terminated due to a failure to obtain certain approvals or consents.

Concurrent with the execution of the Resolution MTA, RLGH provided the Company with a limited guarantee to guarantee its financial obligations for an amount not to exceed $1.3 billion, including the termination fees and subject to the terms and conditions in the Resolution MTA.

The Company has determined that these entities to be disposed of meet the criteria to be classified as held for sale and that the sale represents a strategic shift that will have a major effect on the Company’s operations. Accordingly, the results of operations of the entities to be sold have been presented as discontinued operations in the accompanying Consolidated Statements of Operations and Consolidated Statements of Cash Flows, and the assets and liabilities of the businesses have been classified as held for sale and segregated for all periods presented in the Consolidated Balance Sheets. A business classified as held for sale is recorded at the lower of its carrying value or estimated fair value less cost to sell. If the carrying value exceeds its estimated fair value less cost to sell, a loss is recognized. Transactions between the businesses held for sale and businesses in continuing operations that are expected to continue to exist after the disposal are not eliminated to appropriately reflect the continuing operations and the assets, liabilities and results of the businesses held for sale.

The results of discontinued operations are reported in "Income (loss) from discontinued operations, net of tax" in the accompanying Consolidated Statements of Operations for all periods presented. In addition, Income (loss) from discontinued operations, net of tax, for the year ended December 31, 2019 includes the estimated loss on sale, net of tax of $1,108 to write down the carrying value of the businesses held for sale to estimated fair value, which is based on the estimated sales price of the transaction, less cost to sell and other adjustments in accordance with the Resolution MTA. Additionally, the estimated loss on sale is based on assumptions that are subject to change due to fluctuations in market conditions and other variables that may occur prior to the closing date.

The following table summarizes the major categories of assets and liabilities classified as held for sale related to the Individual Life Transaction in the accompanying Consolidated Balance Sheets as of December 31, 2019 and 2018:



	As of December 31,
	2019			2018
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value	$	11,483		$	9,401
Fixed maturities, at fair value using the fair value option	752			722
Mortgage loans on real estate, net of valuation allowance	1,319			1,395
Policy loans	1,005			1,019
Derivatives	304			131
Other investments⁽¹⁾	430			333
Securities pledged	235			405
Total investments	15,528			13,406
Cash and cash equivalents	291			301
Short-term investments under securities loan agreements, including collateral delivered	216			391
Premium receivable and reinsurance recoverable	3,101			3,309
Deferred policy acquisition costs and Value of business acquired	607			1,143
Current income taxes	136			220
Deferred income taxes	(757		)	(452		)
Other assets⁽²⁾	570			430
Assets held in separate accounts	1,485			1,297
Write-down of businesses held for sale to fair value less cost to sell	(1,108		)	—
Total assets held for sale	$	20,069		$	20,045

Liabilities:
Future policy benefits and contract owner account balances	$	15,472		$	15,008
Payables under securities loan and repurchase agreements, including collateral held	428			455
Derivatives	77			53
Notes payable	252			222
Other liabilities	784			868
Liabilities related to separate accounts	1,485			1,297
Total liabilities held for sale	$	18,498		$	17,903

⁽¹⁾ Includes Other investments, Equity securities, Limited Partnerships/corporations and Short-term investments.

⁽²⁾ Includes Other assets and Accrued investment income.

The following table summarizes the components of Income (loss) from discontinued operations, net of tax related to the Individual Life Transaction for the years ended December 31, 2019, 2018 and 2017:



	Year Ended December 31,
	2019			2018			2017
Revenues:
Net investment income	$	665		$	649		$	672
Fee income	750			743			754
Premiums	27			27			24
Total net realized capital gains (losses)	45			(44		)	(18		)
Other revenue	(21		)	4			(8		)
Total revenues	1,466			1,379			1,424
Benefits and expenses:
Interest credited and other benefits to contract owners/policyholders	1,065			1,050			978
Operating expenses	83			96			102
Net amortization of Deferred policy acquisition costs and Value of business acquired	153			135			176
Interest expense	10			9			8
Total benefits and expenses	1,311			1,290			1,264
Income (loss) from discontinued operations before income taxes	155			89			160
Income tax expense (benefit)	31			17			53
Loss on sale, net of tax	(1,108		)	—			—
Income (loss) from discontinued operations, net of tax	$	(984	)	$	72		$	107

The estimated purchase price and estimated carrying value of the legal entities to be sold as of the future date of closing, and therefore the estimated loss on sale related to the Individual Life Transaction, are subject to adjustment in future quarters until closing, and may be influenced by, but not limited to, the following factors:


•	The performance of the businesses held for sale, including the impact of mortality, reinsurance rates and financing costs;


•	Changes in the terms of the Transaction, including as the result of subsequent negotiations or as necessary to obtain regulatory approval; and


•	Other changes in the terms of the Transaction due to unanticipated developments.

The Company is required to remeasure the estimated fair value and loss on sale at the end of each quarter until closing of the Transaction. Changes in the estimated loss on sale that occur prior to closing of the Transaction will be reported as an adjustment to Income (loss) from discontinued operations, net of tax, in future quarters prior to closing.

Reinsurance

Concurrently with the sale, SLD will enter into reinsurance agreements with Reliastar Life Insurance Company ("RLI"), ReliaStar Life Insurance Company of New York ("RLNY"), and Voya Retirement Insurance and Annuity Company ("VRIAC"), each of which is a direct or indirect wholly owned subsidiary of the Company. Pursuant to these agreements, RLI and VRIAC will reinsure to SLD a 100% quota share, and RLNY will reinsure to SLD a 75% quota share, of their respective individual life insurance and annuities businesses. RLI, RLNY, and VRIAC will remain subsidiaries of the Company. The Company currently expects that these reinsurance transactions will be carried out on a coinsurance basis, with SLD’s reinsurance obligations collateralized by assets in trust. Based on values as of December 31, 2019, U.S GAAP reserves to be ceded under the Individual Life Transaction (defined below) are expected to be approximately $11.0 billion and are subject to change until closing. The reinsurance agreements along with the sale of the legal entities noted above will result in the disposition of substantially all of the Company's life insurance and legacy non-retirement annuity businesses and related assets. The revenues and net results of the Individual Life and Annuities

businesses that will be disposed of via reinsurance are reported in businesses exited or to be exited through reinsurance or divestment which is an adjustment to the Company's U.S. GAAP revenues and earnings measures to calculate Adjusted operating revenues and Adjusted operating earnings before income taxes, respectively. In connection with the reinsurance agreements mentioned above, the Company may incur charges associated with the termination or recapture of existing reinsurance arrangements with its reinsurers.

The 2018 Transaction

On June 1, 2018, the Company consummated a series of transactions (collectively, the "2018 Transaction") pursuant to a Master Transaction Agreement dated December 20, 2017 (the "2018 MTA") with VA Capital Company LLC ("VA Capital") and Athene Holding Ltd. ("Athene"). As part of the 2018 Transaction, Venerable Holdings, Inc. ("Venerable"), a wholly owned subsidiary of VA Capital, acquired two of the Company's subsidiaries, Voya Insurance and Annuity Company ("VIAC") and Directed Services, LLC ("DSL"), and VIAC and other Voya subsidiaries reinsured to Athene substantially all of their fixed and fixed indexed annuities business. The Company has determined that the CBVA and Annuities businesses disposed of in the 2018 Transaction meet the criteria to be classified as discontinued operations and that the sale represents a strategic shift that has a major effect on the Company’s operations. Accordingly, the results of operations of the businesses sold have been presented as discontinued operations in the accompanying Consolidated Statements of Operations and Consolidated Statements of Cash Flows for all periods presented.

Pursuant to the terms of the 2018 MTA and prior to the closing of the Transaction, VIAC undertook certain restructuring transactions, including reinsurance, with several affiliates in order to transfer business and assets into and out of VIAC from and to the Company's affiliates. See the Reinsurance Note to the Consolidated Financial Statements for further information.

The purchase price for VIAC was $169 and was equal to the difference between the Required Adjusted Book Value (as defined in the 2018 MTA) and the Statutory capital in VIAC at closing, after giving effect to certain agreed upon adjustments. Following the closing of the Transaction, the Company, through its other insurance subsidiaries, continued to own surplus notes issued by VIAC in an aggregate principal amount of $350 and acquired a 9.99% equity interest in VA Capital. The investment in surplus notes was reported in Fixed maturities, available-for-sale on the Company's Consolidated Balance Sheet as of December, 31, 2018. Final loss on sale related to the 2018 Transaction was $2,000 which included transaction costs of $33 and the loss of $460 of deferred tax assets and was recorded in the Company's Consolidated Statements of Operations as presented in the Income (loss) from discontinued operations table below. The final loss on sale included the outstanding purchase price true-up amounts with VA Capital of $82 which was settled during the year ended December 31, 2019.

Upon execution of the Individual Life Transaction including the reinsurance arrangements disclosed in the Individual Life Transaction section above, the Company will continue to hold an insignificant number of Individual Life, Annuities and CBVA policies. These policies are referred to in this Annual Report on Form 10-K as "Residual Runoff Business".

The following table summarizes the components of Income (loss) from discontinued operations, net of tax related to the 2018 Transaction for the years ended December 31, 2019, 2018 and 2017:



	Year Ended December 31,
	2019			2018			2017
Revenues:
Net investment income	$	—		$	510		$	1,266
Fee income	—			295			801
Premiums	—			(50		)	190
Total net realized capital losses	—			(345		)	(1,234		)
Other revenue	—			10			19
Total revenues	—			420			1,042
Benefits and expenses:
Interest credited and other benefits to contract owners/policyholders	—			442			978
Operating expenses	—			(14		)	250
Net amortization of Deferred policy acquisition costs and Value of business acquired	—			49			127
Interest expense	—			10			22
Total benefits and expenses	—			487			1,377
Income (loss) from discontinued operations before income taxes	—			(67		)	(335		)
Income tax expense (benefit)	—			(19		)	(178		)
Loss on sale, net of tax	(82		)	505			(2,423		)
Income (loss) from discontinued operations, net of tax	$	(82	)	$	457		$	(2,580	)

Investments (excluding Consolidated Investment Entities)

12 Months Ended

Dec. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Investments (excluding Consolidated Investment Entities)

Fixed Maturities

Available-for-sale and FVO fixed maturities were as follows as of December 31, 2019:



	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives⁽²⁾		Fair Value		OTTI⁽³⁾⁽⁴⁾
Fixed maturities:
U.S. Treasuries	$	1,074	$	308	$	—	$	—	$	1,382	$	—
U.S. Government agencies and authorities	74		21		—		—		95		—
State, municipalities and political subdivisions	1,220		103		—		—		1,323		—
U.S. corporate public securities	12,980		1,977		19		—		14,938		—
U.S. corporate private securities	5,568		488		21		—		6,035		—
Foreign corporate public securities and foreign governments⁽¹⁾	3,887		460		6		—		4,341		—
Foreign corporate private securities⁽¹⁾	4,545		288		2		—		4,831		—
Residential mortgage-backed securities	4,999		200		14		19		5,204		5
Commercial mortgage-backed securities	3,402		176		4		—		3,574		—
Other asset-backed securities	2,058		22		25		—		2,055		1
Total fixed maturities, including securities pledged	39,807		4,043		91		19		43,778		6
Less: Securities pledged	1,264		154		10		—		1,408		—
Total fixed maturities	$	38,543	$	3,889	$	81	$	19	$	42,370	$	6

⁽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 Consolidated Statements of Operations.

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

⁽⁴⁾ Amount excludes $336 of net unrealized gains on impaired available-for-sale securities.

Available-for-sale and FVO fixed maturities were as follows as of December 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	$	1,228	$	196	$	1	$	—	$	1,423	$	—
U.S. Government agencies and authorities	62		12		—		—		74		—
State, municipalities and political subdivisions	1,241		25		16		—		1,250		—
U.S. corporate public securities	14,455		721		300		—		14,876		—
U.S. corporate private securities	5,499		134		142		—		5,491		—
Foreign corporate public securities and foreign governments⁽¹⁾	4,139		125		129		—		4,135		—
Foreign corporate private securities⁽¹⁾	4,705		66		131		—		4,640		—
Residential mortgage-backed securities	4,143		170		47		16		4,282		7
Commercial mortgage-backed securities	2,777		27		41		—		2,763		—
Other asset-backed securities	1,688		10		40		—		1,658		2
Total fixed maturities, including securities pledged	39,937		1,486		847		16		40,592		9
Less: Securities pledged	1,436		75		49		—		1,462		—
Total fixed maturities	$	38,501	$	1,411	$	798	$	16	$	39,130	$	9

⁽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 Consolidated Statements of Operations.

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

⁽⁴⁾ Amount excludes $234 of net unrealized gains on impaired available-for-sale securities.

The amortized cost and fair value of fixed maturities, including securities pledged, as of December 31, 2019, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. MBS and Other 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	$	1,105	$	1,120
After one year through five years	5,391		5,638
After five years through ten years	8,014		8,667
After ten years	14,838		17,520
Mortgage-backed securities	8,401		8,778
Other asset-backed securities	2,058		2,055
Fixed maturities, including securities pledged	$	39,807	$	43,778

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 December 31, 2019 and 2018, 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 shareholders' equity.

The following tables present 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
December 31, 2019
Communications	$	1,694	$	295	$	—	$	1,989
Financial	4,067		535		1		4,601
Industrial and other companies	11,669		1,274		16		12,927
Energy	2,819		368		27		3,160
Utilities	4,895		561		1		5,455
Transportation	1,206		116		2		1,320
Total	$	26,350	$	3,149	$	47	$	29,452

December 31, 2018
Communications	$	1,952	$	107	$	29	$	2,030
Financial	4,131		199		70		4,260
Industrial and other companies	12,707		371		330		12,748
Energy	3,180		138		117		3,201
Utilities	5,120		189		114		5,195
Transportation	1,039		27		25		1,041
Total	$	28,129	$	1,031	$	685	$	28,475

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 December 31, 2019 and 2018, approximately 43.4% and 46.0%, 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 December 31, 2019 and 2018, the Company did not have any securities pledged in dollar rolls or reverse repurchase agreements. As of December 31, 2019, the carrying value of securities pledged and obligation to repay loans related to repurchase agreement transactions was $66, and included in Securities pledged and Payables under securities loan and repurchase agreements, including collateral held, respectively, on the Consolidated Balance Sheets. As of December 31, 2018, the carrying value of securities pledged and obligation to repay loans related to repurchase agreement transaction was $45. Securities pledged related to repurchase agreements are comprised of other asset-backed securities.

Securities Lending

As of December 31, 2019 and 2018, the fair value of loaned securities was $1,159 and $1,237, respectively, and is included in Securities pledged on the 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 December 31, 2019 and 2018, cash collateral retained by the lending agent and invested in short-term liquid assets on the Company's behalf was $1,055 and $1,190, respectively, and is recorded in Short-term investments under securities loan agreements, including collateral delivered on the Consolidated Balance Sheets. As of December 31, 2019 and 2018, liabilities to return collateral of $1,055 and $1,190, respectively, are included in Payables under securities loan and repurchase agreements, including collateral held on the 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 Consolidated Balance Sheets. This collateral generally consists of U.S. Treasury, U.S. Government agency securities and MBS pools. As of December 31, 2019 and 2018, the fair value of securities retained as collateral by the lending agent on the Company's behalf was $146 and $91, respectively.

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



	December 31, 2019 ⁽¹⁾⁽²⁾		December 31, 2018 ⁽¹⁾⁽²⁾
U.S. Treasuries	$	213	$	180
U.S. Government agencies and authorities	15		7
U.S. corporate public securities	684		813
Equity securities	—		1
Foreign corporate public securities and foreign governments	289		280
Payables under securities loan agreements	$	1,201	$	1,281

⁽¹⁾ As of December 31, 2019 and 2018, borrowings under securities lending transactions include cash collateral of $1,055 and $1,190, respectively.

⁽²⁾ As of December 31, 2019 and 2018, borrowings under securities lending transactions include non-cash collateral of $146 and $91, 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.

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 December 31, 2019:



	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
U.S. Treasuries	$	2	$	—	*	$	21	$	—	*	$	23	$	—	*
State, municipalities and political subdivisions	25		—		*	1		—		*	26		—		*
U.S. corporate public securities	122		3			199		16			321		19
U.S. corporate private securities	113		1			195		20			308		21
Foreign corporate public securities and foreign governments	15		—		*	103		6			118		6
Foreign corporate private securities	36		—		*	78		2			114		2
Residential mortgage-backed	730		8			194		6			924		14
Commercial mortgage-backed	472		4			18		—		*	490		4
Other asset-backed	308		5			641		20			949		25
Total	$	1,823	$	21		$	1,450	$	70		$	3,273	$	91
Total number of securities in an unrealized loss position	334					338					672

*Less than $1.

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, 2018:



	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
U.S. Treasuries	$	—	$	—	$	40	$	1	$	40	$	1
State, municipalities and political subdivisions	363		7		178		9		541		16
U.S. corporate public securities	5,010		220		742		80		5,752		300
U.S. corporate private securities	2,031		56		744		86		2,775		142
Foreign corporate public securities and foreign governments	1,849		88		253		41		2,102		129
Foreign corporate private securities	1,969		101		327		30		2,296		131
Residential mortgage-backed	795		17		531		30		1,326		47
Commercial mortgage-backed	1,206		22		484		19		1,690		41
Other asset-backed	1,163		38		76		2		1,239		40
Total	$	14,386	$	549	$	3,375	$	298	$	17,761	$	847
Total number of securities in an unrealized loss position	2,177				686				2,863

Based on the Company's quarterly evaluation of its securities in a unrealized loss position, described below, the Company concluded that these securities were not other-than-temporarily impaired as of December 31, 2019. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases.

On a quarterly basis, the Company evaluates its available-for-sale investment portfolio to determine whether there has been an other-than-temporary decline in fair value below the amortized cost basis. All available-for-sale securities with fair values less than amortized cost are included in the Company's evaluation. Generally, for non-structured securities, management considers the estimated fair value as the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same consideration utilized in its overall impairment evaluation process, which incorporates available information and the Company’s best estimate of scenario based outcomes regarding the specific security and issuer. The Company also considers quality and amount of any credit enhancement; the security's position within the capital structure of the issuer; fundamentals of the industry and geographic area in which the security issuer operates; and the overall macroeconomic conditions. For structured securities, such as non-agency RMBS, CMBS, and ABS, the Company evaluates other-than-temporary impairments based on actual and projected cash flows, after considering the quality and updated loan-to-value ratios, reflecting current home prices of the underlying collateral, forecasted loss severity, the payment priority in the tranche and any credit enhancement within the structure. In assessing credit impairment, the Company performs discounted cash flow analysis comparing the current amortized cost of a security to the present value of the expected future cash flows, including estimated defaults, and prepayments. The discount rate is generally the effective interest rate of the fixed maturity prior to the impairment.

See the Business, Basis of Presentation and Significant Accounting Policies Note to our Consolidated Financial Statements for the policy used to evaluate whether the investments are other-than-temporarily impaired.

Gross unrealized capital losses on fixed maturities, including securities pledged, decreased $756 from $847 to $91 for the year ended December 31, 2019. The decrease in gross unrealized capital losses was primarily due to declining interest rates and tightening credit spreads.

As of December 31, 2019, $12 of the total $91 of gross unrealized losses were from 8 available-for-sale fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for 12 months or greater.

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 table identifies the Company's impairments included in the Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated:



	Year Ended December 31,
	2019				2018				2017
	Impairment			No. of Securities	Impairment			No. of Securities	Impairment			No. of Securities
State, municipalities and political subdivisions	$	—	*	8	$	—		—	$	—	*	2
U.S. corporate public securities	18			38	6			2	1			3
U.S. corporate private securities	1			18	—			—	—			—
Foreign corporate public securities and foreign governments⁽¹⁾	5			22	2			3	2			3
Foreign corporate private securities⁽¹⁾	26			12	15			1	15			2
Residential mortgage-backed	5			89	5			61	1			40
Other	5			128	—		*	2	1			3
Total	$	60		315	$	28		69	$	20		53
Credit Impairments	$	28			$	19			$	18
Intent Impairments	$	32			$	9			$	2

⁽¹⁾ Primarily U.S. dollar denominated.

* Less than $1

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:



	Year Ended December 31,
	2019		2018		2017
Balance at January 1	$	11	$	21	$	21
Additional credit impairments:
On securities not previously impaired	—		—		8
Reductions:
Securities sold, matured, prepaid or paid down	3		10		8
Balance at December 31	$	8	$	11	$	21

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. For the year ended December 31, 2019, the Company had one new commercial mortgage loan troubled debt restructuring with a pre-modification carrying value of $3 and post-modification carrying value of $2. For the year ended December 31, 2019, the Company had one new private placement troubled debt restructuring with a pre-modification cost basis of $107 and post-modification carrying value of $54. For the year ended December 31, 2018, the Company did not have any new commercial mortgage loan or private placement troubled debt restructuring.

As of December 31, 2019 and 2018, the Company did not have any private placements modified in a troubled debt restructuring with a subsequent payment default. As of December 31, 2019, the Company had one commercial mortgage loan modified in a troubled debt restructuring with a subsequent payment default. As of December 31, 2018, the Company did not have any commercial mortgage loans modified in a troubled debt restructuring with a subsequent payment default.

Mortgage Loans on Real Estate

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:



	December 31, 2019								December 31, 2018
	Impaired		Non Impaired			Total			Impaired		Non Impaired			Total
Commercial mortgage loans	$	4	$	6,875		$	6,879		$	4	$	7,279		$	7,283
Collective valuation allowance for losses	N/A		(1		)	(1		)	N/A		(2		)	(2		)
Total net commercial mortgage loans	$	4	$	6,874		$	6,878		$	4	$	7,277		$	7,281

N/A - Not Applicable

There were two impairments of $4 on the mortgage loan portfolio for the year ended December 31, 2019. There were no impairments on the mortgage loan portfolio for the year ended December 31, 2018.

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



	December 31, 2019			December 31, 2018
Collective valuation allowance for losses, balance at January 1	$	2		$	3
Addition to (reduction of) allowance for losses	(1		)	(1		)
Collective valuation allowance for losses, end of period	$	1		$	2

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



	December 31, 2019		December 31, 2018
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	$	5	$	5

For the years ended December 31, 2019 and 2018, the Company did not have any impaired loans with allowances for losses.

Commercial mortgage loans are placed on non-accrual status when 90 days in arrears if the Company has concerns regarding the collectability of future payments, or if a loan has matured without being paid off or extended.

As of December 31, 2019 and 2018, the Company had no loans greater than 60 days in arrears and there were no mortgage loans in the Company's portfolio in process of foreclosure. The Company foreclosed on two loans during the year ended December 31, 2019 with a carrying value of $7.

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:



	Year Ended December 31,
	2019		2018		2017
Impaired loans, average investment during the period (amortized cost)⁽¹⁾	$	11	$	4	$	4
Interest income recognized on impaired loans, on an accrual basis⁽¹⁾	1		—		—
Interest income recognized on impaired loans, on a cash basis⁽¹⁾	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 and DSC ratios as of the dates indicated:



	Recorded Investment
	Debt Service Coverage Ratios
	> 1.5x		>1.25x - 1.5x		>1.0x - 1.25x		< 1.0x		Commercial mortgage loans secured by land or construction loans		Total		% of Total
December 31, 2019⁽¹⁾
Loan-to-Value Ratios:
0% - 50%	$	650	$	24	$	11	$	2	$	—	$	687	10.0	%
>50% - 60%	1,597		53		36		37		—		1,723		25.0	%
>60% - 70%	2,669		581		329		131		—		3,710		53.9	%
>70% - 80%	384		119		121		79		—		703		10.2	%
>80% and above	33		16		—		7		—		56		0.9	%
Total	$	5,333	$	793	$	497	$	256	$	—	$	6,879	100.0	%

	Recorded Investment
	Debt Service Coverage Ratios
	> 1.5x		>1.25x - 1.5x		>1.0x - 1.25x		< 1.0x		Commercial mortgage loans secured by land or construction loans		Total		% of Total
December 31, 2018⁽¹⁾
Loan-to-Value Ratios:
0% - 50%	$	553	$	39	$	26	$	2	$	—	$	620	8.5	%
>50% - 60%	1,653		57		37		6		—		1,753		24.1	%
>60% - 70%	3,106		463		631		53		32		4,285		58.8	%
>70% - 80%	324		124		93		23		4		568		7.8	%
>80% and above	18		6		10		—		23		57		0.8	%
Total	$	5,654	$	689	$	797	$	84	$	59	$	7,283	100.0	%

⁽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:



	December 31, 2019			December 31, 2018
	Gross Carrying Value		% of Total	Gross Carrying Value		% of Total
Commercial Mortgage Loans by U.S. Region:
Pacific	$	1,627	23.6	$	1,699	23.3	%
South Atlantic	1,462		21.3	1,519		20.9	%
Middle Atlantic	1,326		19.3	1,351		18.6	%
West South Central	719		10.5	817		11.2	%
Mountain	670		9.7	706		9.7	%
East North Central	571		8.3	666		9.1	%
New England	117		1.7	109		1.5	%
West North Central	283		4.1	338		4.6	%
East South Central	104		1.5	78		1.1	%
Total Commercial mortgage loans	$	6,879	100.0	$	7,283	100.0	%



	December 31, 2019			December 31, 2018
	Gross Carrying Value		% of Total	Gross Carrying Value		% of Total
Commercial Mortgage Loans by Property Type:
Retail	$	1,873	27.3	$	2,067	28.3	%
Industrial	1,636		23.8	1,803		24.8	%
Apartments	1,797		26.1	1,696		23.3	%
Office	999		14.5	1,144		15.7	%
Hotel/Motel	188		2.7	162		2.2	%
Other	324		4.7	347		4.8	%
Mixed Use	62		0.9	64		0.9	%
Total Commercial mortgage loans	$	6,879	100.0	$	7,283	100.0	%

Net Investment Income

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



	Year Ended December 31,
	2019		2018		2017
Fixed maturities	$	2,241	$	2,181	$	2,138
Equity securities	11		12		8
Mortgage loans on real estate	334		335		333
Policy loans	42		47		48
Short-term investments and cash equivalents	12		14		10
Other	222		146		144
Gross investment income	2,862		2,735		2,681
Less: investment expenses	70		66		40
Net investment income	$	2,792	$	2,669	$	2,641

As of December 31, 2019 and 2018, the Company had $1 and $5, 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 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. Net realized capital gains (losses) also include changes in fair value of equity securities.The cost of the investments on disposal is generally determined based on FIFO methodology.

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



	Year Ended December 31,
	2019			2018			2017
Fixed maturities, available-for-sale, including securities pledged	$	(21	)	$	(88	)	$	(13	)
Fixed maturities, at fair value option	40			(357		)	(238		)
Equity securities	(16		)	(9		)	(1		)
Derivatives	(164		)	(16		)	(2		)
Embedded derivatives - fixed maturities	3			(6		)	(10		)
Guaranteed benefit derivatives	(6		)	92			65
Other investments	(2		)	29			(10		)
Net realized capital gains (losses)	$	(166	)	$	(355	)	$	(209	)

For the years ended December 31, 2019 and 2018, the change in the fair value of equity securities still held as of December 31, 2019 and 2018 was $(16) and $(8), respectively.

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



	Year Ended December 31,
	2019		2018		2017
Proceeds on sales	$	4,105	$	4,162	$	4,164
Gross gains	63		29		67
Gross losses	54		82		50

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

The Company enters into the following types of derivatives:

Interest rate caps and floors: 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. The Company uses interest rate floor contracts to hedge interest rate exposure if rates decrease below a specified level. The Company pays an upfront premium to purchase these caps and floors. 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.

Total return swaps: The Company uses total return swaps as a hedge against a decrease in variable annuity account values, which are invested in certain indices. Total return swaps are also used as a hedge of other corporate liabilities. Using total return swaps, the Company agrees with another party to exchange, at specified intervals, the difference between the economic risk and reward of assets or a market index and the LIBOR rate, calculated by reference to an agreed upon notional principal amount. No cash is exchanged at the onset of the contracts. Cash is paid and received over the life of the contract based upon the terms of the swaps. The Company utilizes these contracts in non-qualifying hedging relationships.

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

Forwards: The Company uses forward contracts to hedge certain invested assets against movement in interest rates, particularly mortgage rates. The Company uses To Be Announced mortgage-backed securities as an economic hedge against rate movements. The Company utilizes forward 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.

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 and IUL contracts. The Company pays an upfront premium to purchase these options. The Company utilizes these options in non-qualifying hedging relationships.

Currency Options: The Company uses currency option contracts to hedge currency exposure related to its invested assets. The Company utilizes these contracts 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 and modified coinsurance 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") rules related to the variation margin payments, the Company is required to adjust the derivative balances with the variation margin payments related to its cleared derivatives executed through CME.

The notional amounts and fair values of derivatives from continuing operations, including amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction, were as follows as of the dates indicated:



	December 31, 2019						December 31, 2018
	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	$	30	$	—	$	—	$	42	$	—	$	—
Foreign exchange contracts	771		12		21		731		13		22
Derivatives: Non-qualifying for hedge accounting⁽¹⁾
Interest rate contracts	25,027		294		371		26,011		179		137
Foreign exchange contracts	92		—		1		21		—		—
Equity contracts	400		10		8		329		2		2
Credit contracts	237		—		2		280		—		3
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	N/A		19		—		N/A		16		—
Within products	N/A		—		60		N/A		—		44
Within reinsurance agreements	N/A		—		100		N/A		—		(5		)
Total			$	335	$	563			$	210	$	203

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

N/A - Not Applicable

The notional amounts and fair values of derivatives for businesses held for sale were as follows as of the dates indicated:



	December 31, 2019						December 31, 2018
	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	$	1	$	—	$	—	$	1	$	—	$	—
Foreign exchange contracts	19		1		1		13		1		—
Derivatives: Non-qualifying for hedge accounting⁽¹⁾
Interest rate contracts	2,227		49		56		2,151		39		51
Foreign exchange contracts	18		—		—		9		—		—
Equity contracts	1,753		254		20		1,427		91		2
Credit contracts	—		—		—		1		—		—
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	N/A		8		—		N/A		9		—
Within products	N/A		—		217		N/A		—		82
Within reinsurance agreements	N/A		—		75		N/A		—		26
Total			$	312	$	369			$	140	$	161

⁽¹⁾ Open derivative contracts are reported as Derivatives assets or liabilities on the 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 December 31, 2019 and 2018. 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 for continuing operations and businesses held for sale are presented in the tables below as of the dates indicated:



	December 31, 2019
Continuing operations:⁽¹⁾
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	237	$	—		$	2
Equity contracts	293		9			7
Foreign exchange contracts	863		12			22
Interest rate contracts	23,634		295			371
			316			402
Counterparty netting⁽²⁾			(290		)	(290		)
Cash collateral netting⁽²⁾			(25		)	(100		)
Securities collateral netting⁽²⁾			—			(5		)
Net receivables/payables			$	1		$	7

⁽¹⁾ Includes amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction,

⁽²⁾Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements.



	December 31, 2019
Businesses held for sale:
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	—	$	—		$	—
Equity contracts	1,753		254			20
Foreign exchange contracts	37		1			1
Interest rate contracts	2,228		49			56
			304			77
Counterparty netting⁽¹⁾			(76		)	(76		)
Cash collateral netting⁽¹⁾			(206		)	—
Securities collateral netting⁽¹⁾			(17		)	—
Net receivables/payables			$	5		$	1

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



	December 31, 2018
Continuing operations:⁽¹⁾
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	280	$	—		$	3
Equity contracts	189		3			1
Foreign exchange contracts	752		13			22
Interest rate contracts	23,518		179			137
			195			163
Counterparty netting⁽²⁾			(141		)	(141		)
Cash collateral netting⁽²⁾			(49		)	(8		)
Securities collateral netting⁽²⁾			—			(13		)
Net receivables/payables			$	5		$	1

⁽¹⁾ Includes amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction,

⁽²⁾Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements.



	December 31, 2018
Businesses held for sale:
	Notional Amount		Asset Fair Value			Liability Fair Value
Credit contracts	$	1	$	—		$	—
Equity contracts	1,427		91			2
Foreign exchange contracts	22		1			—
Interest rate contracts	2,134		39			51
			131			53
Counterparty netting⁽¹⁾			(50		)	(50		)
Cash collateral netting⁽¹⁾			(62		)	—
Securities collateral netting⁽¹⁾			(11		)	(3		)
Net receivables/payables			$	8		$	—

⁽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 and repurchase agreements, including collateral held and Short-term investments under securities loan agreements, including collateral delivered, respectively, on the 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 Consolidated Balance Sheets.

Continuing operations: As of December 31, 2019, the Company held $9 and pledged $82 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2018, the Company held $27 and $16 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. In addition, as of December 31, 2019, the Company delivered $183 of securities and held no securities as collateral. As of December 31, 2018, the Company delivered $180 of securities and held no securities as collateral.

Businesses held for sale: As of December 31, 2019, the Company held $213 and no net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2018, the Company held $64 and

no net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. In addition, as of December 31, 2019, the Company delivered $2 of securities and held $18 of securities as collateral. As of December 31, 2018, the Company delivered $6 of securities and held $11 of securities as collateral.

The location and effect of derivatives qualifying for hedge accounting from continuing operations, including amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction, on the Consolidated Statements of Operations and Consolidated Statements of Comprehensive Income are as follows for the period indicated:



	Interest Rate Contracts		Foreign Exchange Contracts
Derivatives: Qualifying for hedge accounting
Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Net investment income		Net investment income
Year Ended December 31, 2019
Amount of Gain or (Loss) Recognized in Other Comprehensive Income	$	1	$	—
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income	—		11

The location and amount of gain (loss) recognized from continuing operations, including amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction, in the Consolidated Statements of Operations for derivatives qualifying for hedge accounting are as follows for the period indicated:



	Year Ended December 31,
	2019
	Net Investment Income		Other net realized capital gains/(losses)
Total amounts of line items presented in the statement of operations in which the effects of cash flow hedges are recorded	$	2,792	$	(102	)
Derivatives: Qualifying for hedge accounting
Cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	11		—

The location and effect of derivatives not designated as hedging instruments from continuing operations, including amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction, on the Consolidated Statements of Operations are as follows for the periods indicated:



	Location of Gain or (Loss) Recognized in Income on Derivative	Year Ended December 31,
		2019			2018			2017
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Other net realized capital gains (losses)	$	(136	)	$	(38	)	$	1
Foreign exchange contracts	Other net realized capital gains (losses)	2			4			(7		)
Equity contracts	Other net realized capital gains (losses)	(32		)	10			(31		)
Credit contracts	Other net realized capital gains (losses)	2			(2		)	13
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Other net realized capital gains (losses)	3			(6		)	(10		)
Within products	Other net realized capital gains (losses)	(6		)	92			65
Within reinsurance agreements	Policyholder benefits	(111		)	81			(52		)
Total		$	(278	)	$	141		$	(21	)

The location and effect of derivatives not designated as hedging instruments from discontinued operations on the Consolidated Statements of Operations are as follows for the periods indicated:



	Location of Gain or (Loss) Recognized in Income on Derivative	Year Ended December 31,
		2019			2018			2017
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Income (loss) from discontinued operations, net of tax	$	—		$	4		$	1
Foreign exchange contracts	Income (loss) from discontinued operations, net of tax	—			—			(1		)
Equity contracts	Income (loss) from discontinued operations, net of tax	139			(75		)	93
Credit contracts	Income (loss) from discontinued operations, net of tax	1			(1		)	4
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Income (loss) from discontinued operations, net of tax	(1		)	(6		)	(8		)
Within products	Income (loss) from discontinued operations, net of tax	(134		)	69			(87		)
Within reinsurance agreements	Income (loss) from discontinued operations, net of tax	(49		)	35			(5		)
Total		$	(44	)	$	26		$	(3	)

Fair Value Measurements (excluding Consolidated Investment Entities)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements (excluding Consolidated Investment Entities)

Fair Value Measurement

The following table presents the Company's hierarchy for its assets and liabilities from continuing operations, including amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction, measured at fair value on a recurring basis as of December 31, 2019:



	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	1,083		$	299		$	—		$	1,382
U.S. Government agencies and authorities	—			95			—			95
State, municipalities and political subdivisions	—			1,323			—			1,323
U.S. corporate public securities	—			14,864			74			14,938
U.S. corporate private securities	—			4,578			1,457			6,035
Foreign corporate public securities and foreign governments⁽¹⁾	—			4,341			—			4,341
Foreign corporate private securities⁽¹⁾	—			4,503			328			4,831
Residential mortgage-backed securities	—			5,181			23			5,204
Commercial mortgage-backed securities	—			3,574			—			3,574
Other asset-backed securities	—			1,977			78			2,055
Total fixed maturities, including securities pledged	1,083			40,735			1,960			43,778
Equity securities	68			—			128			196
Derivatives:
Interest rate contracts	2			243			49			294
Foreign exchange contracts	—			12			—			12
Equity contracts	—			10			—			10
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	2,613			31			—			2,644
Assets held in separate accounts	75,405			6,149			116			81,670
Total assets	$	79,171		$	47,180		$	2,253		$	128,604
Percentage of Level to total	61		%	37		%	2		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives⁽²⁾	—			—			60			60
Other derivatives:
Interest rate contracts	—			322			49			371
Foreign exchange contracts	—			22			—			22
Equity contracts	—			8			—			8
Credit contracts	—			2			—			2
Embedded derivative on reinsurance	—			100			—			100
Total liabilities	$	—		$	454		$	109		$	563

⁽¹⁾Primarily U.S. dollar denominated.

⁽²⁾Includes GMWBL, GMWB,FIA, Stabilizer and MCGs.

The following table presents the Company's hierarchy for its assets and liabilities related to businesses held for sale measured at fair value on a recurring basis as of December 31, 2019:



	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	472		$	314		$	—		$	786
U.S. Government agencies and authorities	—			161			—			161
State, municipalities and political subdivisions	—			439			—			439
U.S. corporate public securities	—			5,949			32			5,981
U.S. corporate private securities	—			596			316			912
Foreign corporate public securities and foreign governments⁽¹⁾	—			1,490			7			1,497
Foreign corporate private securities⁽¹⁾	—			438			80			518
Residential mortgage-backed securities	—			588			—			588
Commercial mortgage-backed securities	—			995			—			995
Other asset-backed securities	—			587			6			593
Total fixed maturities, including securities pledged	472			11,557			441			12,470
Equity securities	2			—			33			35
Derivatives:
Interest rate contracts	—			—			49			49
Foreign exchange contracts	—			1			—			1
Equity contracts	—			52			202			254
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	533			—			—			533
Assets held in separate accounts	1,485			—			—			1,485
Total assets	$	2,492		$	11,610		$	725		$	14,827
Percentage of Level to total	17		%	78		%	5		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives - IUL	$	—		$	—		$	217		$	217
Other derivatives:
Interest rate contracts	—			7			49			56
Foreign exchange contracts	—			1			—			1
Equity contracts	—			20			—			20
Embedded derivative on reinsurance	—			75			—			75
Total liabilities	$	—		$	103		$	266		$	369

⁽¹⁾Primarily U.S. dollar denominated.

The following table presents the Company's hierarchy for its assets and liabilities from continuing operations, including amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction, measured at fair value on a recurring basis as of December 31, 2018:



	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	1,236		$	187		$	—		$	1,423
U.S. Government agencies and authorities	—			74			—			74
State, municipalities and political subdivisions	—			1,250			—			1,250
U.S. corporate public securities	—			14,842			34			14,876
U.S. corporate private securities	—			4,357			1,134			5,491
Foreign corporate public securities and foreign governments⁽¹⁾	—			4,135			—			4,135
Foreign corporate private securities⁽¹⁾	—			4,423			217			4,640
Residential mortgage-backed securities	—			4,254			28			4,282
Commercial mortgage-backed securities	—			2,749			14			2,763
Other asset-backed securities	—			1,531			127			1,658
Total fixed maturities, including securities pledged	1,236			37,802			1,554			40,592
Equity securities	144			—			103			247
Derivatives:
Interest rate contracts	—			140			39			179
Foreign exchange contracts	—			13			—			13
Equity contracts	—			2			—			2
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	2,628			28			—			2,656
Assets held in separate accounts	64,064			5,805			62			69,931
Total assets	$	68,072		$	43,790		$	1,758		$	113,620
Percentage of Level to total	60		%	38		%	2		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives⁽²⁾	$	—		$	—		$	44		$	44
Other derivatives:
Interest rate contracts	1			97			39			137
Foreign exchange contracts	—			22			—			22
Equity contracts	1			1			—			2
Credit contracts	—			3			—			3
Embedded derivative on reinsurance	—			(5		)	—			(5		)
Total liabilities	$	2		$	118		$	83		$	203

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾Includes GMWBL, GMWB, FIA. Stabilizer and MCGs.

The following table presents the Company's hierarchy for its assets and liabilities related to businesses held for sale measured at fair value on a recurring basis as of December 31, 2018:



	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	518		$	355		$	—		$	873
U.S. Government agencies and authorities	—			167			—			167
State, municipalities and political subdivisions	—			408			—			408
U.S. corporate public securities	—			4,962			10			4,972
U.S. corporate private securities	—			482			259			741
Foreign corporate public securities and foreign governments⁽¹⁾	—			1,310			11			1,321
Foreign corporate private securities⁽¹⁾	—			421			34			455
Residential mortgage-backed securities	—			521			—			521
Commercial mortgage-backed securities	—			653			—			653
Other asset-backed securities	—			407			11			418
Total fixed maturities, including securities pledged	518			9,686			325			10,529
Equity securities	—			—			25			25
Derivatives:
Interest rate contracts	—			—			39			39
Foreign exchange contracts	—			1			—			1
Equity contracts	—			8			83			91
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	734			—			—			734
Assets held in separate accounts	1,297			—			—			1,297
Total assets	$	2,549		$	9,695		$	472		$	12,716
Percentage of Level to total	20		%	76		%	4		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives - IUL	$	—		$	—		$	82		$	82
Other derivatives:
Interest rate contracts	—			12			39			51
Foreign exchange contracts	—			—			—			—
Equity contracts	—			2			—			2
Embedded derivative on reinsurance	—			26			—			26
Total liabilities	$	—		$	40		$	121		$	161

⁽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 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.

The valuation approaches and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy are presented below.

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.

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: Level 2 and Level 3 equity securities, typically private equities or equity securities not traded on an exchange, are valued by other sources such as analytics or brokers.

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. 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.

Guaranteed benefit derivatives: The Company records reserves for annuity contracts containing GMWBL and GMWB riders. The guarantee is an embedded derivative and is required to be accounted for separately from the host variable annuity 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 using stochastic techniques under a variety of market return scenarios and other market implied assumptions. These derivatives are classified as Level 3 liabilities in the fair value hierarchy.

The index-crediting feature in the Company's FIA and IUL contracts 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 for FIAs and over the current indexed term for IULs. 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 Company's GMWBL, GMWB, FIA, IUL and Stabilizer embedded derivative liabilities and the stand-alone derivative for MCG includes an adjustment to reflect the risk that these obligations will not be fulfilled ("nonperformance risk"). The nonperformance risk adjustment incorporates a blend of observable, similarly rated

peer holding company credit spreads, adjusted to reflect the credit quality of the individual insurance subsidiary that issued the guarantee, as well as an adjustment to reflect the non-default spreads and the priority and recovery rates 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 derivative 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 years ended December 31, 2019 and 2018. 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 from continuing operations, including amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction, and transfers in and out of Level 3 for the period indicated:



	Year Ended December 31, 2019
	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 December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
	Fair Value as of January 1			Net Income			OCI		Purchases		Issuances			Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
Fixed maturities, including securities pledged:
U.S. corporate public securities	$	34		$	(1	)	$	5	$	5	$	—		$	—		$	(7	)	$	38	$	—		$	74		$	(1	)
U.S. corporate private securities	1,134			—			90		342		—			(23		)	(86		)	11		(11		)	1,457			—
Foreign corporate private securities⁽¹⁾	217			(24		)	46		169		—			(80		)	—			—		—			328			2
Residential mortgage-backed securities	28			(11		)	1		13		—			(6		)	—			—		(2		)	23			(7		)
Commercial mortgage-backed securities	14			—			—		—		—			—			—			—		(14		)	—			—
Other asset-backed securities	127			—			1		8		—			—			(3		)	—		(55		)	78			—
Total fixed maturities including securities pledged	1,554			(36		)	143		537		—			(109		)	(96		)	49		(82		)	1,960			(6		)
Equity securities	103			(17		)	—		42		—			—			—			—		—			128			(17		)
Derivatives:
Guaranteed benefit derivatives⁽²⁾⁽⁶⁾	(44		)	(6		)	—		—		(9		)	—			(1		)	—		—			(60		)	—
Assets held in separate accounts⁽⁵⁾	62			4			—		78		—			(1		)	—			3		(30		)	116			—

⁽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 gains (losses) in the 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 December 31 amounts are included in Net investment income and Total net realized capital gains (losses) in the Consolidated Statements of Operations.

⁽⁵⁾ The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income 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.

⁽⁶⁾ Includes GMWBL, GMWB, FIA, Stabilizer and MCGs.

The following table summarizes the change in fair value of the Company's Level 3 assets and liabilities related to businesses held for sale and transfers in and out of Level 3 for the period indicated:



	Year Ended December 31, 2019
	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 December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
	Fair Value as of January 1			Net Income			OCI			Purchases		Issuances			Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
Fixed maturities, including securities pledged:
U.S. corporate public securities	$	10		$	—		$	2		$	—	$	—		$	—		$	(1	)	$	22	$	(1	)	$	32		$	—
U.S. corporate private securities	259			—			23			50		—			(2		)	(15		)	1		—			316			—
Foreign corporate public securities and foreign governments⁽¹⁾	11			—			(4		)	—		—			—			—			—		—			7			—
Foreign corporate private securities⁽¹⁾	34			(4		)	11			52		—			(13		)	—			—		—			80			—
Residential mortgage-backed securities	—			—			—			—		—			—			—			—		—			—			—
Commercial mortgage-backed securities	—			—			—			—		—			—			—			—		—			—			—
Other asset-backed securities	11			—			—			—		—			—			—			—		(5		)	6			—
Total fixed maturities including securities pledged	325			(4		)	32			102		—			(15		)	(16		)	23		(6		)	441			—
Equity securities	25			1			—			7		—			—			—			—		—			33			1
Derivatives:
Guaranteed benefit derivatives - IUL⁽²⁾	(82		)	(134		)	—			—		(56		)	—			55			—		—			(217		)	—
Other derivatives, net	83			111			—			45		—			—			(37		)	—		—			202			119

⁽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.

⁽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 December 31 amounts are included in Income (loss) from discontinued operations, net of tax in the Consolidated Statements of Operations.

⁽⁵⁾ The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income 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 table summarizes the change in fair value of the Company's Level 3 assets and liabilities from continuing operations, including amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction, and transfers in and out of Level 3 for the period indicated:



	Year Ended December 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 December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
	Fair Value as of January 1			Net Income			OCI			Purchases		Issuances			Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
Fixed maturities, including securities pledged:
U.S. corporate public securities	$	48		$	—		$	(1	)	$	26	$	—		$	(13	)	$	—		$	—	$	(26	)	$	34		$	—
U.S. corporate private securities	942			5			(48		)	319		—			(20		)	(84		)	31		(11		)	1,134			—
Foreign corporate private securities⁽¹⁾	162			(6		)	6			134		—			(57		)	(22		)	—		—			217			(13		)
Residential mortgage-backed securities	31			(9		)	—			15		—			—			—			—		(9		)	28			(9		)
Commercial mortgage-backed securities	7			—			—			14		—			—			—			—		(7		)	14			—
Other asset-backed securities	64			—			(3		)	67		—			—			(5		)	29		(25		)	127			—
Total fixed maturities including securities pledged	1,254			(10		)	(46		)	575		—			(90		)	(111		)	60		(78		)	1,554			(22		)
Equity securities	87			(7		)	—			25		—			(2		)	—			—		—			103			(8		)
Derivatives:
Guaranteed benefit derivatives⁽²⁾⁽⁶⁾	(147		)	92			—			—		(5		)	—			16			—		—			(44		)	—
Other derivatives, net	5			—			—			—		—			—			(5		)	—		—			—			(5		)
Assets held in separate accounts⁽⁵⁾	11			1			—			67		—			(6		)	—			—		(11		)	62			—

⁽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 gains (losses) in the 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 December 31 amounts are included in Net investment income and Total net realized capital gains (losses) in the Consolidated Statements of Operations.

⁽⁵⁾ The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income 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.

⁽⁶⁾ Includes GMWBL, GMWB, FIA, Stabilizer, and MCGs.

The following table summarizes the change in fair value of the Company's Level 3 assets and liabilities related to businesses held for sale and transfers in and out of Level 3 for the period indicated:



	Year Ended December 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 December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
	Fair Value as of January 1			Net Income			OCI			Purchases		Issuances			Sales			Settlements			Transfers into Level 3⁽³⁾		Transfers out of Level 3⁽³⁾			Fair Value as of December 31			Change In Unrealized Gains (Losses) Included in Earnings⁽⁴⁾
Fixed maturities, including securities pledged:
U.S. corporate public securities	$	9		$	—		$	(1	)	$	5	$	—		$	(3	)	$	—		$	—	$	—		$	10		$	—
U.S. corporate private securities	185			2			(11		)	85		—			—			(9		)	8		(1		)	259			—
Foreign corporate public securities and foreign governments⁽¹⁾	11			—			—			—		—			—			—			—		—			11			—
Foreign corporate private securities⁽¹⁾	7			—			2			39		—			(13		)	(1		)	—		—			34			—
Residential mortgage-backed securities	11			—			—			—		—			(11		)	—			—		—			—			—
Commercial mortgage-backed securities	10			—			—			—		—			—			—			—		(10		)	—			—
Other asset-backed securities	27			—			(1		)	—		—			—			—			6		(21		)	11			—
Total fixed maturities including securities pledged	260			2			(11		)	129		—			(27		)	(10		)	14		(32		)	325			—
Equity securities	14			(1		)	—			12		—			—			—			—		—			25			(1		)
Derivatives:
Guaranteed benefit derivatives - IUL⁽²⁾	(159		)	69			—			—		(53		)	—			61			—		—			(82		)	—
Other derivatives, net	153			(65		)	—			42		—			—			(47		)	—		—			83			(70		)

⁽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.

⁽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 December 31 amounts are included in Income (loss) from discontinued operations, net of tax in the Consolidated Statements of Operations.

⁽⁵⁾ The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income 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 years ended December 31, 2019 and 2018, the transfers in and out of Level 3 for fixed maturities 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 IULs include nonperformance risk and policyholder behavior assumptions, such as lapses.

Following is a description of selected inputs:

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 holding company credit spreads, adjusted to reflect the credit quality of the individual insurance company subsidiary that issued the guarantee as well as an adjustment to reflect the non-default spreads and the priority and recovery rates 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 IUL for businesses held for sale as of the dates indicated:



	Range⁽¹⁾
Unobservable Input	December 31, 2019		December 31, 2018
Nonperformance risk	0.22% to 0.42%		0.38% to 0.84%
Actuarial Assumptions:
Lapses	2% to 10%		2% to 10%
Mortality	—	(2)	—	(2)


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

⁽²⁾The mortality rate is derived based on similarly underwritten business.

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


•	A decrease (increase) in nonperformance risk


•	A decrease (increase) in lapses

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 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 from continuing operations, including amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction, as of the dates indicated:



	December 31, 2019				December 31, 2018
	Carrying Value		Fair Value		Carrying Value			Fair Value
Assets:
Fixed maturities, including securities pledged	$	43,778	$	43,778	$	40,592		$	40,592
Equity securities	196		196		247			247
Mortgage loans on real estate	6,878		7,262		7,281			7,391
Policy loans	776		776		814			814
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements	2,644		2,644		2,656			2,656
Derivatives	316		316		194			194
Other investments	320		456		287			369
Assets held in separate accounts	81,670		81,670		69,931			69,931
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities⁽²⁾	$	33,916	$	41,035	$	34,053		$	37,052
Funding agreements with fixed maturities	877		877		657			652
Supplementary contracts, immediate annuities and other	821		872		870			854
Derivatives:
Guaranteed benefit derivatives⁽²⁾	60		60		44			44
Other derivatives	403		403		164			164
Short-term debt	1		1		1			1
Long-term debt	3,042		3,418		3,136			3,112
Embedded derivative on reinsurance	100		100		(5		)	(5		)

⁽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.

⁽²⁾Includes GMWBL, GMWB, FIA, Stabilizer and MCG.

The carrying values and estimated fair values of the Company's financial instruments related to businesses held for sale as of the dates indicated:



	December 31, 2019				December 31, 2018
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturities, including securities pledged	$	12,470	$	12,470	$	10,529	$	10,529
Equity securities	35		35		25		25
Mortgage loans on real estate	1,319		1,405		1,395		1,420
Policy loans	1,005		1,005		1,019		1,019
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements	533		533		734		734
Derivatives	305		305		131		131
Other investments	42		42		25		25
Assets held in separate accounts	1,485		1,485		1,297		1,297
Liabilities:
Investment contract liabilities:
Funding agreements with fixed maturities	$	927	$	923	$	551	$	545
Supplementary contracts, immediate annuities and other	97		104		106		106
Notes Payable	252		320		222		302
Derivatives:
Guaranteed benefit derivatives - IUL	217		217		82		82
Embedded derivative on reinsurance	75		75		26		26

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



Financial Instrument	Classification
Mortgage loans on real estate	Level 3
Policy loans	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 and immediate annuities	Level 3
Short-term debt and Long-term debt	Level 2
Notes Payable	Level 2

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Deferred Policy Acquisition Costs and Value of Business Acquired

12 Months Ended

Dec. 31, 2019

Insurance [Abstract]

Deferred Policy Acquisition Costs and Value of Business Acquired

The following table presents a rollforward of DAC and VOBA for the periods indicated:



	DAC			VOBA				Total
Balance at January 1, 2017	$	2,077		$	811			$	2,888
Deferrals of commissions and expenses	126			8				134
Amortization:
Amortization, excluding unlocking	(235		)	(152		)		(387		)
Unlocking⁽¹⁾	(71		)	(89		)		(160		)
Interest accrued	129			65			⁽²⁾	194
Net amortization included in Consolidated Statements of Operations	(177		)	(176		)		(353		)
Change in unrealized capital gains/losses on available-for-sale securities	(91		)	(87		)		(178		)
Balance at December 31, 2017	1,935			556				2,491
Deferrals of commissions and expenses	97			9				106
Amortization:
Amortization, excluding unlocking	(241		)	(103		)		(344		)
Unlocking⁽¹⁾	(62		)	(10		)		(72		)
Interest accrued	125			58			⁽²⁾	183
Net amortization included in Consolidated Statements of Operations	(178		)	(55		)		(233		)
Change in unrealized capital gains/losses on available-for-sale securities	301			308				609
Balance as of December 31, 2018	2,155			818				2,973
Deferrals of commissions and expenses	102			8				110
Amortization:
Amortization, excluding unlocking	(303		)	(134		)		(437		)
Unlocking⁽¹⁾	12			48				60
Interest accrued	122			56			⁽²⁾	178
Net amortization included in Consolidated Statements of Operations	(169		)	(30		)		(199		)
Change in unrealized capital gains/losses on available-for-sale securities	(326		)	(332		)		(658		)
Balance as of December 31, 2019	$	1,762		$	464			$	2,226


⁽¹⁾	There was no loss recognition for DAC and VOBA during 2019, 2018 and 2017. Unlocking for 2018 and 2017 includes unfavorable amounts associated with an update to assumptions related to customer consents of changes to guaranteed minimum interest rate provisions. The 2018 amounts were $25 and $26 for DAC and VOBA, respectively and the 2017 amounts were $80 and $140 for DAC and VOBA, respectively.


⁽²⁾	Interest accrued at the following rates for VOBA: 3.5% to 7.4% during 2019 and 2018, and 4.0% to 7.4% during 2017.

The estimated amount of VOBA amortization expense, net of interest, during the next five years is presented in the following table. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results and/or changes in best estimates of future results.



Year	Amount
2020	$	50
2021	48
2022	45
2023	44
2024	43

Reserves for Future Policy Benefits and Contract Owner Account Balances

12 Months Ended

Dec. 31, 2019

Insurance [Abstract]

Reserves for Future Policy Benefits and Contract Owner Account Balances

Future policy benefits and contract owner account balances were as follows as of December 31, 2019 and 2018:



	2019		2018
Future policy benefits:
Individual and group life insurance contracts	$	2,982	$	3,341
Product guarantees on universal life and deferred annuity contracts, and payout contracts with life contingencies	6,141		5,435
Accident and health	822		811
Total	$	9,945	$	9,587

Contract owner account balances:
Universal life-type contracts	$	5,300	$	5,563
Fixed annuities and payout contracts without life contingencies	34,746		34,962
Funding agreements and other	877		658
Total	$	40,923	$	41,183

Guaranteed Benefit Features

12 Months Ended

Dec. 31, 2019

Insurance [Abstract]

Guaranteed Benefit Features

The Company issued UL and VUL contracts where the Company contractually guaranteed to the contract owner a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse ("no lapse guarantee"), and other provisions that would produce expected gains from the insurance benefit function followed by losses from that function in later years.

In addition, the Company’s Stabilizer and MCG products have guaranteed credited rates. Credited rates are set either quarterly or annually. Most contracts have a zero percent minimum credited rate guarantee, although some contracts have minimum credited rate guarantees up to 3% and allow the contract holder to select either the market value of the account or the book value of the account at termination. The book value of the account is equal to deposits plus interest, less any withdrawals. The fair value is estimated using the income approach.

We have a small number of variable annuity policies that contain living benefit riders such as GMWB/GMWBL and GMIB and death benefit riders such as GMDB. These products include separate account options and guarantee the contract owner a return or withdrawal amount payable in conjunction with a specified event (ex. death, annuitization).

The Company’s major source of income from guaranteed benefit features is the base contract mortality, expense and guaranteed death and living benefit rider fees charged to the contract owner, less the costs of administering the product and providing for the guaranteed death and living benefits.

The liabilities for UL contracts are recorded in the general account. The liabilities for VUL contracts are recorded in separate account liabilities. The separate account liabilities may include more than one type of guarantee. These liabilities are subject to the requirements for additional reserve liabilities under ASC Topic 944, which are recorded on the Consolidated Balance Sheets in Future policy benefits and Contract owner account balances. The paid and incurred amounts were as follows for the years ended December 31, 2019, 2018 and 2017:



	Continuing Operations ⁽⁶⁾									Business Held for Sale
	UL and VUL⁽¹⁾			Stabilizer and MCGs⁽³⁾			Other⁽⁴⁾			UL and VUL⁽²⁾			Other⁽⁵⁾
Separate account liability at December 31, 2019	$	295		$	39,235		$	1,486		$	203		$	10
Separate account liability at December 31, 2018	$	261		$	37,155		$	1,854		$	174		$	8
Additional liability balance:
Balance at January 1, 2017	$	467		$	150		73			848			3,365
Incurred guaranteed benefits	(34		)	(53		)	(28		)	135			(998		)
Paid guaranteed benefits	(121		)	—			(1		)	(114		)	(190		)
Balance at December 31, 2017	312			97			44			869			2,177
Incurred guaranteed benefits	193			(92		)	2			259			—
Paid guaranteed benefits	(157		)	—			(2		)	(137		)	—
Adjustment for the close of The 2018 Transaction	—			—			—			—			(2,177		)
Balance at December 31, 2018	348			5			44			991			—
Incurred guaranteed benefits	209			17			(9		)	177			—
Paid guaranteed benefits	(163		)	—			—			(155		)	—
Balance at December 31, 2019	$	394		$	22		$	35		$	1,013		$	—

⁽¹⁾The additional liability balances as of December 31, 2019, 2018, 2017 and as of January 1, 2017 are presented net of reinsurance of $1,005, $899, $906 and 671, respectively.

⁽²⁾The additional liability balances as of December 31, 2019, 2018, 2017 and as of January 1, 2017 are presented net of reinsurance of 569, 552, 603 and 521, respectively.

⁽³⁾The Separate account liability at December 31, 2019 and 2018 includes $31.9 billion and $29.0 billion, respectively, of externally managed assets, which are not reported on the Company's Consolidated Balance Sheets.

⁽⁴⁾ Includes GMDB/GMWBL/GMIB.

⁽⁵⁾ Separate Account liability relates to the Individual Life Transaction. Additional liability balance relates to the 2018 Transaction.

⁽⁶⁾Includes amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction.

The net amount at risk for the secondary guarantees is equal to the current death benefit in excess of the account values. The general and separate account values, net amount at risk, net of reinsurance and the weighted average attained age of contract owners by type of minimum guaranteed benefit for UL and VUL contracts were as follows as of December 31, 2019 and 2018:



	December 31, 2019				December 31, 2018
Continuing Operations:⁽¹⁾	Secondary Guarantees		Paid-up Guarantees		Secondary Guarantees		Paid-up Guarantees
UL and VUL Contracts:
Account value (general and separate account)	$	1,397	$	—	$	1,432	$	—
Net amount at risk, net of reinsurance	3,978		—		4,144		—
Weighted average attained age	72		—		72		—

⁽¹⁾ Includes amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction.



	December 31, 2019				December 31, 2018
Business held for sale:	Secondary Guarantees		Paid-up Guarantees		Secondary Guarantees		Paid-up Guarantees
UL and VUL Contracts:
Account value (general and separate account)	$	1,697	$	—	$	1,701	$	—
Net amount at risk, net of reinsurance	11,018		—		11,317		—
Weighted average attained age	63		—		63		—

Account balances of contracts with guarantees invested in variable separate accounts were as follows as of December 31, 2019 and 2018:



	Continuing Operations ⁽¹⁾				Business Held for Sale
	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Equity securities (including mutual funds):
Equity funds	$	1,904	$	1,723	$	150	$	127
Bond funds	184		185		18		16
Balanced funds	329		302		37		31
Money market funds	46		49		5		4
Other	10		9		3		3
Total	$	2,473	$	2,268	$	213	$	181

⁽¹⁾Includes amounts related to businesses to be exited via reinsurance associated with the Individual Life Transaction.

In addition, the aggregate fair value of fixed income securities supporting separate accounts with Stabilizer benefits as of December 31, 2019 and 2018 was $7.4 billion and $8.0 billion, respectively.

Reinsurance

12 Months Ended

Dec. 31, 2019

Insurance [Abstract]

Reinsurance

The Company reinsures its business through a diversified group of reinsurers. However, the Company remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements. The Company monitors trends in arbitration and any litigation outcomes with its reinsurers. Collectability of reinsurance balances are evaluated by monitoring ratings and evaluating the financial strength of its reinsurers. Large reinsurance recoverable balances with offshore or other non-accredited reinsurers are secured through various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit ("LOC").

Information regarding the effect of reinsurance on the Consolidated Balance Sheets is as follows as of the periods indicated:



	December 31, 2019
	Direct			Assumed		Ceded			Total, Net of Reinsurance
Assets
Premiums receivable	$	125		$	12	$	(87	)	$	50
Reinsurance recoverable	—			—		3,682			3,682
Total	$	125		$	12	$	3,595		$	3,732

Liabilities
Future policy benefits and contract owner account balances	$	49,757		$	1,111	$	(3,682	)	$	47,186
Liability for funds withheld under reinsurance agreements	88			—		—			88
Total	$	49,845		$	1,111	$	(3,682	)	$	47,274

	December 31, 2018
	Direct			Assumed		Ceded			Total, Net of Reinsurance
Assets
Premiums receivable	$	121		$	11	$	(85	)	$	47
Reinsurance recoverable	—			—		3,796			3,796
Total	$	121		$	11	$	3,711		$	3,843

Liabilities
Future policy benefits and contract owner account balances	$	49,568		$	1,202	$	(3,796	)	$	46,974
Liability for funds withheld under reinsurance agreements	(5		)	—		—			(5		)
Total	$	49,563		$	1,202	$	(3,796	)	$	46,969

Information regarding the effect of reinsurance on the Consolidated Statement of Operations is as follows for the periods indicated:



	Year ended December 31,
	2019			2018			2017
Premiums:
Direct premiums	$	2,759		$	2,602		$	2,597
Reinsurance assumed	827			956			1,152
Reinsurance ceded	(1,313		)	(1,426		)	(1,652		)
Net premiums	$	2,273		$	2,132		$	2,097

Fee income:
Gross fee income	$	1,970		$	1,983		$	1,890
Reinsurance ceded	(1		)	(1		)	(1		)
Net fee income	$	1,969		$	1,982		$	1,889

Interest credited and other benefits to contract owners / policyholders:
Direct interest credited and other benefits to contract owners / policyholders	$	4,186		$	3,912		$	4,090
Reinsurance assumed	9			554			23
Reinsurance ceded⁽¹⁾	(445		)	(940		)	(455		)
Net interest credited and other benefits to contract owners / policyholders	$	3,750		$	3,526		$	3,658

⁽¹⁾ Includes $232, $216 and $219 for amounts paid to reinsurers in connection with the Company's UL contracts for the years ended December 31, 2019, 2018 and 2017, respectively.

Effective October 1, 1998, the Company disposed of a block of its individual life insurance business under an indemnity reinsurance arrangement with a subsidiary of Lincoln National Corporation ("Lincoln") for $1.0 billion. Under the agreement, Lincoln contractually assumed from the Company certain policyholder liabilities and obligations, although the Company remains obligated to contract owners. The Lincoln subsidiary established a trust to secure its obligations to the Company under the reinsurance transaction. Of the Premium receivable and reinsurance recoverable on the Consolidated Balance Sheets, $1.3 billion and $1.4 billion as of December 31, 2019 and 2018, respectively, is related to the reinsurance recoverable from the subsidiary of Lincoln under this reinsurance agreement.

Pursuant to the terms of the 2018 MTA disclosed in the Business, Basis of Presentation and Significant Accounting Policies Note to the accompanying Consolidated Financial Statements and prior to the closing of the Transaction, the Company entered into the following reinsurance transactions:


•	VIAC recaptured from the Company the CBVA business previously assumed by Roaring River II, Inc., a subsidiary of the Company.

•

The Company, through one of its subsidiaries ceded, under modified coinsurance agreements, as amended, fixed and fixed indexed annuity reserves of $451 to Athene Life Re, Ltd. ("ALRe"). Under the terms of the agreements, ALRe contractually assumed from the Company the policyholder liabilities and obligations related to the policies, although the Company remains obligated to the policyholders. Upon the consummation of the agreements, the Company recognized no gain or loss in the Consolidated Statements of Operations.

•

The Company, through one of its subsidiaries, assumed, under coinsurance and modified coinsurance agreements, certain individual life and deferred annuity policies from VIAC. Upon the consummation of the agreements, the Company recognized no gain or loss in the Consolidated Statements of Operations. As of December 31, 2019 and 2018, assumed reserves related to these agreements were $782 and $837, respectively.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill

Goodwill is the excess of cost over the estimated fair value of net assets acquired. As of December 31, 2019 and 2018, the Company had $48 in goodwill which was related to the Investment Management and Retirement segments. There is no accumulated impairment balance associated with goodwill. The Company performs a goodwill impairment analysis annually as of October 1 and more frequently if facts and circumstances indicate that goodwill may be impaired.

Other Intangible Assets

The following table presents other intangible assets as of the dates indicated:



	Weighted Average Amortization Lives	December 31, 2019						December 31, 2018
	Weighted Average Amortization Lives	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Management contract rights	20 years	$	550	$	532	$	18	$	550	$	504	$	46
Customer relationship lists	20 years	120		91		29		120		83		37
Computer software	3 years	410		370		40		404		366		38
Total intangible assets		$	1,080	$	993	$	87	$	1,074	$	953	$	121

Amortization expense related to intangible assets was $60, $61 and $62 for the years ended December 31, 2019, 2018 and 2017, respectively.

The estimated amortization of intangible assets are as follows:



Year	Amount
2020	$	46
2021	21
2022	9
2023	4
2024	3

Amortization of intangible assets is included in the Consolidated Statements of Operations in Operating expenses.

The Company does not have any indefinite-lived intangibles other than goodwill.

Share-based Incentive Compensation Plans

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Share-based Incentive Compensation Plans

ING U.S., Inc. 2013 Omnibus Employee Incentive Plan, Voya Financial, Inc. 2014 Omnibus Employee Incentive Plan and 2019 Omnibus Employee Incentive Plan

The Company has provided equity-based compensation awards to its employees under the ING U.S., Inc. 2013 Omnibus Employee Incentive Plan (the "2013 Omnibus Plan") and the Voya Financial, Inc. 2014 Omnibus Employee Incentive Plan (the "2014 Omnibus Plan"). At inception of the 2013 Omnibus Plan, a total of 7,650,000 shares of Company common stock were reserved and available for issuance under the plan. As of December 31, 2019, common stock reserved and available for issuance under the 2013 Omnibus Plan was 347,663 shares. The 2013 Omnibus Plan is no longer actively used for new grants of equity-based compensation awards.

The 2014 Omnibus Plan was adopted by the Company's Board of Directors and approved by shareholders in 2014, and has substantially the same terms as the 2013 Omnibus Plan, except for certain changes intended to allow certain performance-based compensation awards to comply with the criteria for tax deductibility set forth in Section 162(m) of the Internal Revenue Code. The 2014 Omnibus Plan provides for 17,800,000 shares of common stock to be available for issuance as equity-based compensation awards. As of December 31, 2019, common stock reserved and available for issuance under the 2014 Omnibus Plan was 3,519,189 shares.

On March 27, 2019, the Company's Board of Directors adopted, subject to shareholder approval, the Voya Financial, Inc. 2019 Omnibus Employee Incentive Plan (the "2019 Omnibus Plan"). Shareholder approval for the 2019 Omnibus Plan was subsequently obtained at the Annual Meeting of Shareholders held on May 23, 2019. The 2019 Omnibus Plan provides for 11,700,000 shares of common stock to be available for issuance as equity-based compensation awards, subject to other provisions of the plan for replacement of shares and adjustments. As of December 31, 2019, common stock reserved and available for issuance under the 2019 Omnibus Plan was 11,802,649 shares.

The 2013 Omnibus Plan, the 2014 Omnibus Plan and the 2019 Omnibus Plan (together, the "Omnibus Plans") each permit the granting of a wide range of equity-based awards, including RSUs, which represent the right to receive a number of shares of Company common stock upon vesting; restricted stock, which are shares of Company stock that are issued subject to sale and transfer restrictions until the vesting conditions are met; PSUs, which are RSUs subject to certain performance-based vesting conditions, and under which the number of shares of common stock delivered upon vesting varies with the level of achievement of performance criteria; and stock options. Grants of equity-based awards under the Omnibus Plans are approved in advance by the Compensation and Benefits Committee (the "Committee") of the Board of Directors of the Company, and are subject to such terms and conditions as the Committee may determine, including in respect of vesting and forfeiture, subject to certain limitations provided in the Omnibus Plans. Equity-based awards under the Omnibus Plans may carry dividend equivalent rights, pursuant to which notional dividends accumulate on unvested equity awards and are paid, in cash, upon vesting. Except for stock option awards made during 2015 and 2019, awards made under the Omnibus Plans, to date, have included dividend equivalent rights. Dividend equivalents are credited to the recipient and are paid only to the extent the applicable performance criteria and service conditions are met.

During each of the years ended December 31, 2019, 2018 and 2017 the Company awarded RSUs and PSUs to its employees under the Omnibus Plans. The PSU awards entitle recipients to receive, upon vesting, a number of shares of common stock that ranges from 0% to 150% of the number of PSUs awarded, depending on the level of achievement of the specified performance conditions. The establishment and the achievement of performance objectives are determined and approved by the Committee. Except under certain termination conditions, RSUs and PSUs generally vest no earlier than one year from the date of the award and no later than three years from the date of the award. In the case of retirement (eligibility for which is based on the employee's age and years of service as provided in the relevant award agreement), awards vest in full, but subject to the satisfaction of any applicable performance criteria.

In December 2015, the Company also awarded contingent stock options ("2015 Stock Options") under the 2014 Omnibus Plan. These options are subject to vesting conditions based on the achievement of specified performance measures, and generally become exercisable one year following satisfaction of the relevant vesting condition. The options have a term of ten years from the grant date.

In February 2019, the Company awarded contingent stock options ("2019 Stock Options") under the 2014 Omnibus Plan. These options are subject to vesting conditions based on the achievement of specified performance measures, and generally become exercisable one year following satisfaction of the relevant vesting condition. The options have a term of ten years from the grant date.

If an award under the Omnibus Plans is forfeited, expired, terminated or otherwise lapses, the shares of Company common stock underlying that award will again become available for issuance. Shares withheld by the Company to pay employee taxes, or which are withheld by or tendered to the Company to pay the exercise price of stock options (or are repurchased from an option holder by the Company with proceeds from the exercise of stock options) are not available for reissuance.

Voya Financial, Inc. 2013 Omnibus Non-Employee Director Incentive Plan

The Company offers equity-based awards to Voya Financial, Inc. non-employee directors under the Voya Financial, Inc. 2013 Omnibus Non-Employee Director Incentive Plan ("2013 Director Plan”), which the Company adopted in connection with the IPO. A total of 288,000 shares of Company common stock may be issued under the 2013 Director Plan. The material terms of the 2013 Director Plan are substantially consistent with the material terms of the 2013 Omnibus Plan described above.

During the years ended December 31, 2019, 2018, and 2017, the Company granted 18,571, 22,637 and 27,261 RSUs, respectively, to certain of its non-employee directors. The awards granted vest in full on the first anniversary of the grant date, however, no shares are delivered in connection with the RSUs until such time as the director's service on the Board is terminated.

Compensation Cost

The fair value of stock options was estimated using the Black-Scholes option pricing model. The following is a summary of the assumptions used in this model for the stock options granted in 2015 and 2019:



	2015 Stock Options			2019 Stock Options
Expected volatility	28.6		%	26.5		%
Expected term (in years)	6.02			5.99
Strike price	$	37.60		$	50.03
Risk-free interest rate	2.1		%	2.7		%
Expected dividend yield	0.11		%	1.00		%
Weighted average estimated fair value	$	11.89		$	13.78

During the year ended December 31, 2017, all outstanding 2015 Stock Options vested as the necessary performance conditions were satisfied. The Company utilized the simplified method for the expected term calculations. At the time of grant, the Company did not have historical exercises on which to base its own estimate. Additionally, exercise data relating to employees of comparable companies was not easily obtainable. Furthermore, because the Company did not have historical stock prices for a period at least equal to the expected term, the Company estimated Expected volatilities were based on the Company's life-to-date historical volatility using a weighted-average consisting 70% of historical peer group volatility and 30% of the historical volatility of the Company common stock. The contractual term for exercising the options is ten years.

The vesting of the 2019 Stock Options was contingent on the satisfaction of performance conditions on or before December 31, 2020; the Company assumed for purposes of the award's fair value that such conditions would be met in full on or prior to such date. The Company utilized the simplified method for the expected term calculations. At the time of grant, the Company did not have historical exercises on which to base its own estimate. Additionally, exercise data relating to employees of comparable companies was not easily obtainable. Expected volatilities were based on the Company's life-to-date historical volatility. The contractual term for exercising the options is ten years.

The fair value of the TSR component of the PSU awards was estimated using a Monte Carlo simulation. The following is a summary of the significant assumptions used to calculate the fair value of the TSR component of the PSU awards granted during the periods indicated:



	2019		2018		2017
Expected volatility of the Company's common stock	28.29	%	28.58	%	26.67	%
Average expected volatility of peer companies	25.15	%	26.76	%	27.43	%
Expected term (in years)	2.86		2.86		2.86
Risk-free interest rate	2.48	%	2.40	%	1.45	%
Expected dividend yield	—	%	—	%	—	%
Average correlation coefficient of peer companies	63	%	67	%	68	%

The following table summarizes share-based compensation expense, which includes expenses related to awards granted under the Omnibus Plans and Director Plan for the periods indicated:



	Year Ended December 31,
	2019		2018		2017
RSUs	$	45	$	49	$	57
PSU awards	44		43		44
Stock options	8		5		16
Other ⁽¹⁾	—		—		1
Total	97		97		118
Income tax benefit	29		18		39
Share-based compensation	$	68	$	79	$	79

⁽¹⁾ Includes compensation cost for legacy plans, under which no new awards are being issued.

The following table summarizes the unrecognized compensation cost and expected remaining weighted-average period of expense recognition as of December 31, 2019 :



	RSUs		PSU Awards		Stock Options
Unrecognized compensation cost	$	22	$	32	$	6
Expected remaining weighted-average period of expense recognition (in years)	1.7		1.6		1.4

Awards Outstanding

The following table summarizes RSU and PSU awards activity under the Omnibus Plans for the periods indicated:



	RSU Awards				PSU Awards
_{(awards in millions)}	Number of Awards		Weighted Average Grant Date Fair Value		Number of Awards		Weighted Average Grant Date Fair Value
Outstanding at January 1, 2019	2.4		$	43.36	2.5		$	40.21
Adjusted for PSU performance factor	N/A		N/A		0.3		31.35
Granted	0.9		50.15		0.7		51.64
Vested	(1.3	)	39.93		(1.2	)	29.25
Forfeited	(0.1	)	48.73		(0.1	)	49.16
Outstanding at December 31, 2019	1.9		$	48.56	2.2		$	48.85

Awards expected to vest as of December 31, 2019	1.9		$	48.56	2.2		$	48.85

The weighted-average grant date fair value for RSU awards granted during the year ended December 31, 2019, 2018 and 2017 was $50.15, $50.55 and $42.30, respectively. The weighted-average grant date fair value for PSU awards granted during the years ended December 31, 2019, 2018 and 2017 was $51.64, $53.21 and $42.32, respectively.

The total fair value of shares vested for the years ended December 31, 2019, 2018, and 2017 was $124, $99 and $102, respectively.

The following table summarizes the number of options under the Omnibus Plans for the periods indicated:



	Stock Options
_{(awards in millions)}	Number of Awards			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding as of January 1, 2019	2.6			$	37.60	6.96	$	6.6
Granted	1.0			50.03
Exercised	(0.7	)		37.60
Forfeited	—		*	45.56
Outstanding as of December 31, 2019	2.9			$	41.93	7.07	$	53.5
Vested, exercisable, as of December 31, 2019	1.9			37.60		5.96	42.8

* Less than 0.1.

The total intrinsic value of options exercised during the years ended December 31, 2019 and 2018 was $12 and $5. No options were exercised in 2017.

Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Shareholders' Equity

Common Shares

The following table presents the rollforward of common shares used in calculating the weighted average shares utilized in the basic earnings per common share calculation for the periods indicated:



	Common Shares
_{(shares in millions)}	Issued			Held in Treasury		Outstanding
Balance, January 1, 2017	268.0			73.4		194.6
Common Shares issued	—		*	—		—		*
Common Shares acquired - share repurchase	—			24.4		(24.4	)
Share-based compensation programs	2.0			0.2		1.8
Balance, December 31, 2017	270.0			98.0		172.0
Common Shares issued	—			—		—
Common Shares acquired - share repurchase	—			22.8		(22.8	)
Share-based compensation programs	2.4			0.6		1.8
Balance, December 31, 2018	272.4			121.4		151.0
Common Shares issued	0.1			—		0.1
Common Shares acquired - share repurchase	—			21.1		(21.1	)
Share-based compensation programs	3.2			0.9		2.3
Treasury Stock retirement	(135.0	)		(135.0	)	—
Balance, December 31, 2019	140.7			8.4		132.3

* Less than 0.1.

Dividends declared per share of Common Stock were as follows for the periods indicated:



	Year Ended December 31,
	2019		2018		2017
Dividends declared per share of Common Stock	$	0.32	$	0.04	$	0.04

Share Repurchase Program

From time to time, the Company's Board of Directors authorizes the Company to repurchase shares of its common stock. These authorizations permit stock repurchases up to a prescribed dollar amount and generally may be accomplished through various means, including, without limitation, open market transactions, privately negotiated transactions, forward, derivative, or accelerated repurchase, or automatic repurchase transactions, including 10b5-1 plans, or tender offers. Share repurchase authorizations typically expire if unused by a prescribed date.

On May 2, 2019, the Board of Directors provided share repurchase authorization, increasing the aggregate of the Company's common stock authorized for repurchase by $500. On October 31, 2019, the Board of Directors provided its most recent share repurchase authorization, increasing the aggregate amount of the Company's common stock authorized for repurchase by $800. The additional share repurchase authorization expires on December 21, 2020 (unless extended), and does not obligate the Company to purchase any shares. The authorization for the share repurchase program may be terminated, increased or decreased by the Board of Directors at any time.

The following table presents repurchases of the Company's common stock through share repurchase agreements with third-party financial institutions for the year ended December 31, 2019 and December 31, 2017. The Company did not enter into any share repurchase agreements in 2018.



2019
Execution Date	Payment		Initial Shares Delivered	Closing Date	Additional Shares Delivered	Total Shares Repurchased
January 3, 2019	$	250	5,059,449	April 4, 2019	290,765	5,350,214
April 9, 2019	$	236	3,593,453	June 4, 2019	879,199	4,472,652
June 19, 2019	$	200	2,963,512	August 6, 2019	695,566	3,659,078
December 19, 2019	$	200	2,591,093	⁽¹⁾	⁽¹⁾	⁽¹⁾
⁽¹⁾This arrangement is scheduled to terminate no later than the end of first quarter of 2020, at which time the Company will settle any outstanding positive or negative share balances based on the daily volume-weighted average price of the Company's common stock.

2017
Execution Date	Payment		Initial Shares Delivered	Closing Date	Additional Shares Delivered	Total Shares Repurchased
March 9, 2017	$	150	—	April 12, 2017	3,986,647	3,986,647
December 26, 2017	$	500	7,821,666	March 26, 2018	1,947,413	9,769,079

The following table presents repurchases of our common stock through open market repurchases for the periods indicated:



($ in millions)	Year Ended December 31,
	2019		2018		2017
Shares of common stock	4,926,775		20,843,047		7,437,994
Payment	$	250	$	1,025	$	273

Warrants

On May 7, 2013, the Company issued to ING Group warrants to purchase up to 26,050,846 shares of the Company's common stock equal in the aggregate to 9.99% of the issued and outstanding shares of common stock at that date. The exercise price of the warrants at the time of issuance was $48.75 per share of common stock, subject to adjustments, including for stock dividends, cash dividends in excess of $0.01 per share a quarter, subdivisions, combinations, reclassifications and non-cash distributions. The warrants also provide for, upon the occurrence of certain change of control events affecting the Company, an increase in the number of shares to which a warrant holder will be entitled upon payment of the aggregate exercise price of the warrant. The warrants became exercisable to ING Group and its affiliates on January 1, 2017 and to all other holders starting on the first anniversary of the completion of the IPO (May 7, 2014). The warrants expire on the tenth anniversary of the completion of the IPO (May 7, 2023). The warrants are net share settled, which means that no cash will be payable by a warrant holder in respect of the exercise price of a warrant upon exercise, and are classified as permanent equity. They have been recorded at their fair value determined on the issuance date of May 7, 2013 in the amount of $94 as an addition and reduction to Additional-paid-in-capital. Warrant holders are not entitled to receive dividends. On March 12, 2018, ING Group sold its remaining interests in the warrants and no longer owns any warrants.

On December 27, 2019, the Company paid a quarterly dividend of $0.15 per share on its common stock. As a consequence, the exercise price of the warrants to purchase shares of common stock was adjusted to $48.49 per share of common stock and the number of shares of common stock for which each warrant is exercisable has been adjusted to 1.002430429. As of December 31, 2019, no warrants have been exercised.

Preferred Stock

On June 11, 2019, the Company issued 300,000 shares of 5.35% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B ("the Series B preferred stock"), with a $0.01 par value per share and a liquidation preference of $1,000 per share, for aggregate net proceeds of $293. The Company deposited the Series B preferred stock under a deposit agreement with a depositary, which issued interests in fractional shares of the Series B preferred stock in the form of depositary shares ("Depositary Shares") evidenced by depositary receipts; each Depositary Share representing 1/40th interest in a share of the Series B preferred stock.

On September 12, 2018, the Company issued 325,000 shares of 6.125% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A, with a $0.01 par value per share and a liquidation preference of $1,000 per share, for aggregate net proceeds of $319.

The ability of the Company to declare or pay dividends on, or purchase, redeem or otherwise acquire, shares of its common stock will be substantially restricted in the event that the Company does not declare and pay (or set aside) dividends on the Series A and Series B Preferred Stock for the last preceding dividend period.

The Series A and Series B preferred stock are not subject to any mandatory redemption, sinking fund, retirement fund, purchase fund or similar provisions. The Company may, at its option, redeem the Series A preferred stock, (a) in whole but not in part, at any time, within 90 days after the occurrence of a "rating agency event," at a redemption price equal to $1,020 per share, plus an amount equal to any dividends per share of preferred stock that have accrued but not been declared and paid for the then-current dividend period to, but excluding, the redemption date and (b) (i) in whole but not in part, at any time within 90 days after the occurrence of a "regulatory capital event" or (ii) in whole or in part, from time to time, on September 15, 2023 or any subsequent "reset date," in each case, at a redemption price equal to $1,000 per share of preferred stock, plus an amount equal to any dividends per share of preferred stock that have accrued but not been declared and paid for the then-current dividend period to, but excluding, such redemption date. The Company may, at its option, redeem the Series B preferred stock, (a) in whole but not in part, at any time, within 90 days after the occurrence of a "rating agency event," at a redemption price equal to $1,020 per share (equivalent to $25.50 per Depositary Share), plus an amount equal to any accrued and unpaid dividends per share that have accrued but not been declared and paid for the then-current dividend period, but excluding, such redemption date and (b) (i) in whole but not in part , at any time, within 90 days after the occurrence of a "regulatory capital event," or (ii) in whole or in part, from time to time, on September 15, 2029 or any reset date, in each case, at a redemption price equal to $1,000 per share of the Series B preferred stock (equivalent to $25.00 per Depositary Share), plus an amount equal to any accrued and unpaid dividends per share that have accrued but not been declared and paid for the then-current dividend period to, but excluding, such redemption date.

A "rating agency event" means that any nationally recognized statistical rating organization that then publishes a rating for the Company amends, clarifies or changes the criteria it uses to assign equity credit to securities like the preferred stock, which results in the lowering of the equity credit assigned to the preferred stock, as applicable, or shortens the length of time that the preferred stock is assigned a particular level of equity credit.

A "regulatory capital event" means that the Company becomes subject to capital adequacy supervision by a capital regulator and the capital adequacy guidelines that apply to the Company as a result of being so subject set forth criteria pursuant to which the preferred stock would not qualify as capital under such capital adequacy guidelines, as the Company may determine at any time, in its sole discretion.

As of December 31, 2019 and December 31, 2018, there were 100,000,000 shares of preferred stock authorized. Preferred stock issued and outstanding are as follows:



	December 31, 2019		December 31, 2018
Series	Issued	Outstanding	Issued	Outstanding
6.125% Non-cumulative Preferred Stock, Series A	325,000	325,000	325,000	325,000
5.35% Non-cumulative Preferred Stock, Series B	300,000	300,000	—	—
Total	625,000	625,000	325,000	325,000

As of December 31, 2019, there were no preferred stock dividends in arrears.

Earnings per Common Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings per Common Share

The following table presents a reconciliation of Net income (loss) and shares used in calculating basic and diluted net income (loss) per common share for the periods indicated:



_{(in millions, except for per share data)}	Year Ended December 31,
Earnings	2019			2018		2017
Net income (loss) available to common shareholders
Income (loss) from continuing operations	$	765		$	491	$	(302	)
Less: Preferred stock dividends	28			—		—
Less: Net income (loss) attributable to noncontrolling interest	50			145		217
Income (loss) from continuing operations available to common shareholders	687			346		(519		)
Income (loss) from discontinued operations, net of tax	(1,066		)	529		(2,473		)
Net income (loss) available to common shareholders	$	(379	)	$	875	$	(2,992	)

Weighted-average common shares outstanding
Basic	141.0			163.2		184.1
Dilutive Effects:⁽¹⁾
Warrants⁽²⁾	2.1			0.8		—
RSUs⁽³⁾	1.4			1.7		—
PSU awards⁽³⁾	1.9			1.9		—
Stock Options⁽⁴⁾	0.6			0.6		—
Diluted	147.0			168.2		184.1

Basic⁽⁵⁾
Income (loss) from continuing operations available to Voya Financial, Inc.'s common shareholders	$	4.88		$	2.12	$	(2.82	)
Income (loss) from discontinued operations, net of taxes available to Voya Financial, Inc.'s common shareholders	$	(7.57	)	$	3.24	$	(13.43	)
Income (loss) available to Voya Financial, Inc.'s common shareholders	$	(2.69	)	$	5.36	$	(16.25	)
Diluted⁽⁵⁾
Income (loss) from continuing operations available to Voya Financial, Inc.'s common shareholders	$	4.68		$	2.05	$	(2.82	)
Income (loss) from discontinued operations, net of taxes available to Voya Financial, Inc.'s common shareholders	$	(7.26	)	$	3.14	$	(13.43	)
Income (loss) available to Voya Financial, Inc.'s common shareholders	$	(2.58	)	$	5.20	$	(16.25	)

⁽¹⁾For the years ended December 31, 2019 and December 31, 2017, weighted average shares used for calculating earnings per share excludes the impact of forward contracts related to the share repurchase agreements entered into on December 19, 2019 and December 26, 2017, respectively, as the inclusion of these instruments would be antidilutive to the earnings per share calculation. For more information on the share repurchase agreements, see the Shareholders' Equity Note to these Consolidated Financial Statements.

⁽²⁾ For the year ended December 31, 2017, weighted average shares used for calculating earnings per share excludes the impact of warrants, as the inclusion of this equity instrument would be antidilutive to the earnings per share calculation due to "out of the moneyness" in the period presented. For more information on warrants, see the Shareholders' Equity Note to these Consolidated Financial Statements.

⁽³⁾ For the year ended December 31, 2017, weighted average shares used for calculating basic and diluted earnings per share are the same, as the inclusion of 1.9 and 0.8 shares for stock compensation plans of RSU and PSU awards, respectively, would be antidilutive to the earnings per share calculation due to the net loss from continuing operations during the period.

⁽⁴⁾ For the year ended December 31, 2017, weighted average shares used for calculating basic and diluted earnings per share excludes the dilutive impact of stock options, as the inclusion of this equity instrument would be antidilutive to the earnings per share calculation due to the average share price for the period presented. For more information on stock options, see the Share-based Incentive Compensation Plans Note to these Consolidated Financial Statements.

⁽⁵⁾ Basic and diluted earnings per share are calculated using unrounded, actual amounts. Therefore, the components of earnings per share may not sum to its corresponding total.

Insurance Subsidiaries

12 Months Ended

Dec. 31, 2019

Insurance [Abstract]

Insurance Subsidiaries

Principal Insurance Subsidiaries Statutory Equity and Income

Each of Voya Financial, Inc.'s three principal insurance subsidiaries (the "Principal Insurance Subsidiaries") is subject to minimum risk-based capital ("RBC") requirements established by the insurance departments of their respective states of domicile. The formulas for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital ("TAC"), as defined by the National Association of Insurance Commissioners ("NAIC"), to authorized control level RBC, as defined by the NAIC. Each of the Company's Principal Insurance Subsidiaries exceeded the minimum RBC requirements that would require any regulatory or corrective action for all periods presented herein.

The Company's Principal Insurance Subsidiaries are each required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of its respective state of domicile. Such statutory accounting practices primarily differ from U.S. GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities and contract owner account balances using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis. Certain assets that are not admitted under statutory accounting principles are charged directly to surplus. Depending on the regulations of the insurance department of an insurance company's state of domicile, the entire amount or a portion of an insurance company's asset balance can be non-admitted based on the specific rules regarding admissibility. For the years ended December 31, 2019, 2018 and 2017, the Principal Insurance Subsidiaries have no prescribed or permitted practices that materially impact total capital and surplus.

Statutory Net income (loss) for the years ended December 31, 2019, 2018 and 2017 and statutory capital and surplus as of December 31, 2019 and 2018 of the Company's Principal Insurance Subsidiaries (and for 2017, VIAC, which the Company sold in connection with the 2018 Transaction) are as follows:



	Statutory Net Income (Loss)								Statutory Capital and Surplus
	2019			2018			2017		2019		2018
Subsidiary Name (State of Domicile):
Voya Retirement Insurance and Annuity Company ("VRIAC") (CT)	$	325		$	377		$	195	$	2,005	$	2,000
Security Life of Denver Insurance Company (CO)	(226		)	(62		)	58		881		965
ReliaStar Life Insurance Company ("RLI") (MN)	35			101			234		1,536		1,633
Voya Insurance and Annuity Company ("VIAC") (IA)⁽¹⁾	N/A			N/A			514		N/A		N/A

⁽¹⁾On June 1, 2018, VIAC was sold as part of the 2018 Transaction.

N/A - Not Applicable

All of the Company's Principal Insurance Subsidiaries have capital and surplus levels that exceed their respective regulatory minimum requirements.

As of December 31, 2019, SLD had the following surplus notes outstanding to its affiliate SLDI Georgia Holdings, Inc. "(Georgia Holdings").



Issuance Date	Maturity	2019		2018
12/21/1994	4/15/2021	$	40	$	60
12/19/2000	4/15/2021	26		39
4/15/2017	4/15/2042	61		61
4/15/2018	4/15/2043	62		62
4/15/2019	4/15/2044	63		—

Upon the closing of the Resolution MTA, Voya Financial, Inc., through one of its affiliates, will retain surplus notes issued by SLD in the amount of $123 under modified terms.

Insurance Subsidiaries Dividend Restrictions

The states in which the insurance subsidiaries of Voya Financial, Inc. are domiciled impose certain restrictions on the subsidiaries' ability to pay dividends to their parent. These restrictions are based in part on the prior year's statutory income and surplus. In general, dividends up to specified levels are considered ordinary and may be paid without prior approval. Dividends in larger amounts, or "extraordinary" dividends, are subject to approval by the insurance commissioner of the state of domicile of the insurance subsidiary proposing to pay the dividend.

Under the insurance laws applicable to Voya Financial, Inc.'s insurance subsidiaries domiciled in Connecticut and Minnesota, an "extraordinary" dividend or distribution is defined as a dividend or distribution that, together with other dividends and distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer's policyholder surplus as of the preceding December 31, or (ii) the insurer's net gain from operations for the twelve-month period ending the preceding December 31, in each case determined in accordance with statutory accounting principles. Under Colorado insurance law, an "extraordinary dividend" or distribution is defined as a dividend or distribution that, together with other dividends and distributions made within the preceding twelve months, exceeds the lesser of (i) 10% of the insurer's policyholder surplus as of the preceding December 31, or (ii) the insurer's net gain from operations for the twelve-month period ending the preceding December 31, in each case determined in accordance with statutory accounting principles. In addition, under the insurance laws of Connecticut and Minnesota, no dividend or other distribution exceeding an amount equal to a domestic insurance company's earned surplus may be paid without the domiciliary insurance regulator's prior approval. The Company also has special purpose life reinsurance captive insurance company subsidiaries domiciled in Missouri that are collectively referred to as the Company's "Missouri captives" as well as captive reinsurance subsidiaries domiciled in Arizona that provide reinsurance to the Company's insurance subsidiaries for specific blocks of business. The Company's captive reinsurance subsidiaries domiciled in Arizona are referred to as the Company's "Arizona captives." The Company refers to its Missouri captives and its Arizona captives collectively as the Company's "captive reinsurance subsidiaries." The Company's Principal Insurance Subsidiary domiciled in Connecticut has ordinary dividend capacity for 2019. However, as a result of the extraordinary dividends it paid in 2015, 2016 and 2017, together with statutory losses incurred in connection with the recapture and cession to one of the Company's Arizona captives of certain term life insurance business in the fourth quarter of 2016, the Company's Principal Insurance Subsidiary domiciled in Minnesota currently has negative earned surplus. In addition, primarily as a result of statutory losses incurred in connection with the retrocession of the Company's Principal Insurance Subsidiary domiciled in Minnesota of certain life insurance business in the fourth quarter of 2018, the Company's principal insurance subsidiary domiciled in Colorado has a net loss from operations for the twelve-month period ending the preceding December 31. Therefore, neither the Company's Minnesota nor Colorado Principal Insurance Subsidiaries have the capacity at this time to make ordinary dividend payments to Voya Holdings Inc. ("Voya Holdings"), a wholly owned subsidiary of Voya Financial, Inc., and cannot make an extraordinary dividend payment without domiciliary insurance regulatory approval, which can be granted or withheld at the discretion of the regulator.

Principal Insurance Subsidiaries - Dividends and Return of Capital

The following table summarizes dividends permitted to be paid by the Company's Principal Insurance Subsidiaries to Voya Financial, Inc. or Voya Holdings without the need for insurance regulatory approval and dividends and extraordinary distributions paid by each of the Company's Principal Insurance Subsidiaries to its parent for the periods indicated:



	Dividends Permitted without Approval				Dividends Paid				Extraordinary Distributions Paid
					Year Ended December 31,				Year Ended December 31,
	2020		2019		2019		2018		2019		2018
Subsidiary Name (State of domicile):
Voya Retirement Insurance and Annuity Company (CT)	$	295	$	396	$	396	$	126	$	—	$	—
Security Life of Denver Insurance Company (CO)	—		—		—		52		—		—
ReliaStar Life Insurance Company (MN)	—		—		—		—		360		—

Captive Reinsurance Subsidiaries

Voya Financial, Inc.'s captive reinsurance subsidiaries, provide reinsurance to the Company's insurance subsidiaries in order to facilitate the financing of statutory reserves including those associated with NAIC Model Regulation XXX or Actuarial Guideline 38 ("AG38") and to fund certain statutory annuity reserve requirements. Each of the Company's Missouri captives is subjected to specific minimum capital requirements set forth in the insurance statutes of Missouri, and is required to prepare statutory financial statements in accordance with statutory accounting practices prescribed in the Missouri insurance statutes or permitted by the Missouri insurance department. There are no prescribed practices material to the Missouri captive reinsurance subsidiaries, except that certain of these subsidiaries have included the value of LOCs and trust notes as admitted assets supporting the statutory reserves ceded to such subsidiaries. The effect of these prescribed practices was to increase statutory capital and surplus by $749 and $676 as of December 31, 2019 and 2018, respectively. The aggregate statutory capital and surplus, including the aforementioned prescribed practices, was $172 and $156 as of December 31, 2019 and 2018, respectively.

The Company's Arizona captives, SLDI and its wholly owned subsidiary RRII, provide reinsurance to the Company's insurance subsidiaries in order to facilitate the financing of statutory reserves including those associated with NAIC Model Regulation XXX or AG38 and to fund certain statutory annuity reserve requirements. Prior to the 2018 Transaction disclosed in the Business Held for Sale and Discontinued Operations Note to these Consolidated Financial Statements, this included reinsurance to RRII of the living benefit guarantees under the Company's CBVA business. In conjunction with the 2018 Transaction, the reinsurance treaty assumed by RRII was recaptured in 2018. Arizona state insurance statutes and regulations require the Company's Arizona captives to file financial statements with the Arizona Department of Insurance ("ADOI") and allow the filing of such financial statements on a U.S. GAAP basis modified for certain prescribed practices outlined in the Arizona insurance statutes that are applicable to U.S. GAAP filers. These prescribed practices had no impact on the Arizona captives Shareholder's equity as of December 31, 2019 and 2018. In addition, the Arizona captives have obtained approval from the ADOI for certain permitted practices, including, for SLDI, taking reinsurance credit for certain ceded reserves where the assets backing the liabilities are held by a wholly owned Principal Insurance Subsidiary of Voya Financial, Inc. SLDI has recorded a receivable for these assets. The effect of the permitted practice was to increase SLDI's Shareholder's equity by $440 and $431 as of December 31, 2019 and 2018, respectively, but has no effect on the Company's consolidated Total shareholders' equity. In the unlikely event that the permitted practice is suspended in the future, the Company has various alternatives which could be executed to allow the reinsurance credit for these ceded reserves. At consummation of the Individual Life Transaction, the Arizona captives will be sold to Resolution Life.

The Missouri captives may not declare or pay any dividends other than in accordance with their respective insurance reserve financing transaction agreements and their respective governing licensing orders. Likewise, the Company's Arizona captives may not declare or pay dividends other than in accordance with their annual capital and dividend plans as approved by the ADOI, which include minimum capital requirements. During 2019, RRII paid a dividend of $154 to SLDI and SLDI paid a dividend of $228 to the Company.

Employee Benefit Arrangements

12 Months Ended

Dec. 31, 2019

Retirement Benefits [Abstract]

Employee Benefit Arrangements

Pension, Other Postretirement Benefit Plans and Other Benefit Plans

Voya Financial, Inc.'s subsidiaries maintain both qualified and non-qualified defined benefit pension plans (the "Plans"). These plans generally cover all employees and certain sales representatives who meet specified eligibility requirements. Pension benefits are based on a formula using compensation and length of service. Annual contributions are paid to the Plans at a rate necessary to adequately fund the accrued liabilities of the Plans calculated in accordance with legal requirements. The Plans comply with applicable regulations concerning investments and funding levels.

The Voya Retirement Plan (the "Retirement Plan") is a tax qualified defined benefit plan, the benefits of which are guaranteed (within certain specified legal limits) by the Pension Benefit Guaranty Corporation ("PBGC"). Beginning January 1, 2012, the Retirement Plan adopted a cash balance pension formula instead of a final average pay ("FAP") formula, allowing all eligible employees to participate in the Retirement Plan. Participants earn an annual credit equal to 4% of eligible compensation. Interest is credited monthly based on a 30-year U.S. Treasury securities bond rate published by the Internal Revenue Service in the preceding August of each year. The accrued vested cash pension balance benefit is portable; participants can take it if they leave the Company.

In addition to providing qualified retirement benefit plans, the Company provides certain supplemental retirement benefits to eligible employees, non-qualified pension plans for insurance sales representatives who have entered into a career agent agreement and certain other individuals. These plans are non-qualified defined benefit plans, which means all benefits are payable from the general assets of the sponsoring company.

The Company also offers deferred compensation plans for eligible employees, including eligible career agents and certain other individuals who meet the eligibility criteria. The Company’s deferred compensation commitment for employees is recorded on the Consolidated Balance Sheets in Other liabilities and totaled $314 and $278 as of December 31, 2019 and 2018, respectively.

Voya Financial, Inc.'s subsidiaries also provide other postretirement and post-employment benefits to certain employees. These are primarily postretirement healthcare and life insurance benefits to retired employees and other eligible dependents and post-employment/pre-retirement plans provided to employees and former employees. The Company's other postretirement benefit obligation and unfunded status totaled $18 and $16 as of December 31, 2019 and 2018, respectively. Additionally, net periodic benefit for other postretirement benefits totaled $2, $6 and $2 for the years ended December 31, 2019, 2018 and 2017, respectively.

Obligations, Funded Status and Net Periodic Benefit Costs

The Company's Retirement Plan was fully funded in compliance with Employee Retirement Income Security Act ("ERISA") guidelines as of December 31, 2018, which is tested annually subsequent to this filing. The following tables summarize a reconciliation of beginning and ending balances of the benefit obligation and fair value of plan assets, as well as the funded status of the Company's Plans for the years ended December 31, 2019 and 2018:



	2019			2018
Change in benefit obligation:
Benefit obligations, January 1	$	2,140		$	2,294
Service cost	24			25
Interest cost	92			86
Net actuarial (gains) losses	259			(157		)
Benefits paid	(106		)	(108		)
(Gain) loss recognized due to curtailment	1			—
Benefit obligations, December 31	2,410			2,140

Change in plan assets:
Fair value of plan net assets, January 1	1,605			1,764
Actual return on plan assets	376			(78		)
Employer contributions	85			27
Benefits paid	(106		)	(108		)
Fair value of plan net assets, December 31	1,960			1,605
Unfunded status at end of year ⁽¹⁾	$	(450	)	$	(535	)

⁽¹⁾ Funded status is not indicative of the Company's ability to pay ongoing pension benefits or of its obligation to fund retirement trusts. Required pension funding for qualified plans is determined in accordance with ERISA regulations.

The following table summarizes amounts related to the Plans recognized on the Consolidated Balance Sheets and in AOCI as of December 31, 2019 and 2018:



	2019			2018
Amounts recognized in the Consolidated Balance Sheets consist of:
Accrued benefit cost	$	(450	)	$	(535	)
Net amount recognized	$	(450	)	$	(535	)

Accumulated other comprehensive (income) loss:
Prior service cost (credit)	$	—		$	(1	)
Tax effect	—			—
Accumulated other comprehensive (income) loss, net of tax	$	—		$	(1	)

The following table summarizes information for the Plans with a projected benefit obligation and an accumulated benefit obligation in excess of plan assets as of December 31, 2019 and 2018:



	2019		2018
Projected benefit obligation	$	2,410	$	2,140
Accumulated benefit obligation	2,404		2,134
Fair value of plan assets	1,960		1,605

Components of Periodic Net Benefit Cost

Net periodic pension cost and net periodic other postretirement benefit plan cost consist of the following:


▪	Service Cost: Service cost represents the increase in the projected benefit obligation as a result of benefits payable to employees on service rendered during the current year.


▪	Interest Cost (on the Liability): Interest cost represents the increase in the amount of projected benefit obligation at the end of each year due to the time value adjustment.


▪	Expected Return on Plan Assets: Expected return on plan assets represents the anticipated return earned by the pension fund assets in a given year.


▪	Net Loss (Gain) Recognition: Actuarial gains and losses occur as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period. The Company immediately recognizes actuarial losses (gains) on the qualified and nonqualified retirement plans as well as the other postretirement benefit plans.

▪

Amortization of Prior Service Cost: This cost represents the recognition of increases or decreases in Pension and other postretirement provisions on the Consolidated Balance Sheets as a result of changes in plans or initiation of new plans. The increases or decreases in obligation are recognized in AOCI at the time of the particular amendment. The costs are then amortized to Operating expenses in the Consolidated Statements of Operations over the expected service years of the covered employees.


▪	(Gain) Loss Recognized due to Curtailment: Curtailment gains and losses occur as a result of events that significantly reduce the expected years of future service of present employees or eliminates for a significant number of employees the accrual of defined benefits for some or all of their future services.

The components of net periodic benefit costs recognized in Operating expenses in the Consolidated Statements of Operations and other changes in plan assets and benefit obligations recognized in Other comprehensive income (loss) related to the Plans were as follows for the years ended December 31, 2019, 2018 and 2017:



	2019			2018			2017
Net Periodic (Benefit) Costs Recognized in Consolidated Statements of Operations:
Service cost	$	24		$	25		$	24
Interest cost	92			86			93
Expected return on plan assets	(113		)	(129		)	(115		)
Amortization of prior service cost (credit)	—			(9		)	(10		)
(Gain) loss recognized due to curtailment	1			—			1
Net (gain) loss recognition	(4		)	50			14
Net periodic (benefit) costs	—			23			7

Other Changes in Plan Assets and Benefit Obligations Recognized in AOCI:
Amortization of prior service (credit) cost	—			9			10
(Credit) cost recognized due to curtailment	(1		)	—			2
Total recognized in AOCI	(1		)	9			12
Total recognized in net periodic (benefit) costs and AOCI	$	(1	)	$	32		$	19

The table below summarizes the components of the net actuarial (gains) losses related to the Plans reported within Operating expenses in the Consolidated Statements of Operations for the periods presented:



(Gain)/Loss Recognized	2019			2018			2017
Discount Rate	$	292		$	(160	)	$	196
Asset Returns	(263		)	207			(142		)
Mortality Table Assumptions	(22		)	(6		)	(14		)
Demographic Data and other	(11		)	9			(25		)
Total Net Actuarial (Gain)/Loss Recognized	$	(4	)	$	50		$	14

The Company does not expect any prior service cost to be amortized from AOCI into net periodic (benefit) cost in 2020.

Assumptions

The discount rates used in determining pension benefit obligations as of December 31, 2019 and 2018 were as follows:



	2019		2018
Discount rate	3.36	%	4.46	%

In determining the discount rate assumption, the Company utilizes current market information provided by its plan actuaries including discounted cash flow analyses of the Company’s pension and general movements in the current market environment. The discount rate modeling process involves selecting a portfolio of high quality, noncallable bonds that will match the cash flows of the pension plans.

The weighted-average assumptions used in determining net benefit cost of the Plans for the years ended December 31, 2019, 2018 and 2017 were as follows:



	2019		2018		2017
Discount rate	4.37	%	3.85	%	4.55	%
Expected rate of return on plan assets	6.75	%	7.50	%	7.50	%

The expected return on plan assets is updated at least annually using the calculated value approach, taking into consideration the Retirement Plan’s asset allocation, historical returns on the types of assets held in the Retirement Plan's portfolio of assets ("the Fund") and the current economic environment. Based on these factors, it is expected that the Fund’s assets will earn an average percentage per year over the long term. This estimation is based on an active return on a compound basis, with a reduction for administrative expenses and non-Voya investment manager fees paid from the Fund. For estimation purposes, it is assumed the long-term asset mix will be consistent with the current mix. Changes in the asset mix could impact the amount of recorded pension income or expense, the funded status of the Plan, and the need for future cash contributions.

Plan Assets

The Retirement Plan is the only defined benefit plan with plan assets in a trust. The primary financial objective of the Retirement Plan is to secure participant retirement benefits. As such, the key objective in the Retirement Plan’s financial management is to promote stability and, to the extent appropriate, growth in funded status (i.e. the ratio of market value of assets to liabilities). The investment strategy for the Fund balances the requirement to generate returns with the need to control risk. The asset mix is recognized as the primary mechanism to influence the reward and risk structure of the Fund in an effort to accomplish the Retirement Plan’s funding objectives. Desirable target allocations amongst identified asset classes are set and, within each asset class, careful consideration is given to balancing the portfolio among industry sectors, geographies, interest rate sensitivity, economic growth, currency and other factors affecting investment returns. The assets are managed by professional investment firms. They are bound by mandates and are measured against benchmarks. Consideration is given to balancing security concentration, investment style and reliance on particular active investment strategies, among other factors. The Company reviews its asset mix of the Fund on a regular basis. Generally, the pension committee of the Company will rebalance the Fund's asset mix to the target mix as individual

portfolios approach their minimum or maximum levels. However, the Company has the discretion to deviate from these ranges or to manage investment performance using different criteria.

Derivative contracts may be used for hedging purposes to reduce the Retirement Plan’s exposure to interest rate risk. Treasury futures are used to manage the interest rate risk in the Retirement Plan’s fixed maturity portfolio. The derivatives do not qualify for hedge accounting.

The following table summarizes the Company's pension plan’s target allocation range and actual asset allocation by asset category as of December 31, 2019 and 2018:



	Actual Asset Allocation
	2019		2018
Equity securities:
Target allocation range	14%-40%		37%-65%
Large-cap domestic	18.3	%	23.0	%
Small/Mid-cap domestic	5.9	%	6.1	%
International commingled funds	12.0	%	11.7	%
Limited Partnerships	1.3	%	1.8	%
Total equity securities	37.5	%	42.6	%
Fixed maturities:
Target allocation range	54%-82%		30%-50%
U.S. Treasuries, short term investments, cash and futures	5.4	%	3.0	%
U.S. Government agencies and authorities	5.0	%	8.2	%
U.S. corporate, state and municipalities	40.8	%	31.6	%
Foreign securities	3.3	%	4.1	%
Other fixed maturities	—	%	—	%
Total fixed maturities	54.5	%	46.9	%
Other investments:
Target allocation range	6%-14%		6%-14%
Hedge funds	3.9	%	4.8	%
Real estate	4.1	%	5.7	%
Total other investments	8.0	%	10.5	%
Total	100.0	%	100.0	%

The following table summarizes the fair values of the pension plan assets by asset class as of December 31, 2019:



	Level 1		Level 2		Level 3		NAV		Total
Assets
Fixed maturities, short-term investments and cash:
Cash and cash equivalents	$	14	$	—	$	—	$	—	$	14
Short-term investment fund⁽¹⁾	—		—		—		98		98
U.S. Government securities	97		—		—		—		97
U.S. corporate, state and municipalities	—		782		14		—		796
Foreign securities	—		64		—		—		64
Other fixed maturities	—		1		—		—		1
Total fixed maturities	111		847		14		98		1,070

Equity securities:
Large-cap domestic	—		358		—		—		358
Small/Mid-cap domestic	115		—		—		—		115
International commingled funds⁽²⁾	—		—		—		235		235
Limited partnerships⁽³⁾	—		—		—		25		25
Total equity securities	115		358		—		260		733

Other investments:
Real estate⁽⁴⁾	—		—		—		80		80
Limited partnerships⁽⁵⁾	—		—		—		81		81
Total other investments	—		—		—		161		161
Total Assets	$	226	$	1,205	$	14	$	519	$	1,964

Liabilities
Derivatives	$	4	$	—	$	—	$	—	$	4
Total Liabilities	$	4	$	—	$	—	$	—	$	4

Net, total pension assets	$	222	$	1,205	$	14	$	519	$	1,960

⁽¹⁾ This category includes common collective trust funds invested in the EB Temporary Investment Fund of The Bank of New York Mellon ("Short-term Investment Fund"). The Short-term Investment Fund is designed to provide a rate of return by investing in a full range of high-quality, short-term money market securities. Participant's redemptions in the Short-term Investment Fund may be requested by 2 p.m. eastern standard time and are processed by the following day.

⁽²⁾

International Commingled funds are comprised of two assets that use NAV to calculate fair value. Baillie Gifford Funds has a balance of $125 and uses a bottom up approach to stock picking. In determining the potential of a company, the fund manager analyzes industry background, competitive advantage, management attitudes and financial strength and valuation. There are no redemption restrictions in the Baillie Gifford Funds. Silchester has a fund balance of $110 that has an investment objective to achieve long-term growth primarily by investing in a diversified portfolio of equity securities of companies located in any country other than the United States. Silchester clients may contribute to and redeem monies from the funds on a monthly basis as of the last business day of each month. Clients must notify Silchester at least six business days before the month-end to make a redemption request. Baillie Gifford and Silchester, as a normal course of business, enter into contracts (commitments) that contain indemnifications or warranties. The funds' maximum exposure under these arrangements is unknown, as this would involve future claims that have not yet occurred. Baillie Gifford and Silchester have no unfunded commitments.

⁽³⁾ Limited partnerships are comprised of two assets that use NAV to calculate fair value. Pantheon Europe has a balance of $3 and Pantheon USA has a balance of $22. Their strategy is to create a portfolio of high quality private equity funds, operating across Europe and diversified by stage, sector, geography, manager and vintage year. As of December 31, 2019, Pantheon Europe and Pantheon USA have unfunded commitments of $1 and $5, respectively, and there were no significant redemption restrictions.

⁽⁴⁾UBS Trumbull Property Fund ("UBS") uses NAV to calculate fair value. UBS has a balance of $80 and is an actively managed core portfolio of equity real estate. The Fund has both relative and real return objectives. Its relative performance objective is to outperform the National Council of Real Estate investment Fiduciaries Open-End Diversified Core ("NFI_ODCE") index over any given three-to-five-year period. The Fund's real return performance objective is to achieve at least a 5.0% real rate of return (i.e., inflation-adjusted return), before advisory fees, over any given three-to-five-year period. Investors may request redemptions of all or a portion of their units as of the end of a calendar quarter by delivering written notice to the Fund at least sixty days prior to the end of the quarter.

⁽⁵⁾Magnitude Institutional, Ltd. ("MIL") has a balance of $81 and is designed to realize appreciation in value primarily through the allocation of capital directly and indirectly among investment funds and accounts. There are significant redemption restrictions in the MIL fund.

The following table summarizes the fair values of the pension plan assets by asset class as of December 31, 2018:



	Level 1		Level 2		Level 3		NAV		Total
Assets
Fixed maturities, short term investments and cash:
Cash and cash equivalents	$	—	$	—	$	—	$	—	$	—
Short-term investment fund⁽¹⁾	—		—		—		48		48
U.S. Government securities	131		—		—		—		131
U.S. corporate, state and municipalities	1		498		7		—		506
Foreign securities	—		66		—		—		66
Other fixed maturities	—		1		—		—		1
Total fixed maturities	132		565		7		48		752

Equity securities:
Large-cap domestic	369		—		—		—		369
Small/Mid-cap domestic	98		—		—		—		98
International commingled funds⁽²⁾	—		—		—		188		188
Limited partnerships⁽³⁾	—		—		—		29		29
Total equity securities	467		—		—		217		684

Other investments:
Real estate⁽⁴⁾	—		—		—		92		92
Limited partnerships⁽⁵⁾	—		—		—		75		75
Other	2		—		—		—		2
Total other investments	2		—		—		167		169
Net, total pension assets	$	601	$	565	$	7	$	432	$	1,605

⁽¹⁾ This category includes common collective trust funds invested in the Short-term Investment Fund. The Short-term Investment Fund is designed to provide a rate of return by investing in a full range of high-quality, short-term money market securities. Participant's redemptions in the Short-term Investment Fund may be requested by 2 p.m. eastern standard time and are processed by the following day.

⁽²⁾ International Commingled funds are comprised of two assets that use NAV to calculate fair value. Baillie Gifford Funds has a balance of $94 and uses a bottom up approach to stock picking. In determining the potential of a company, the fund manager analyzes industry background, competitive advantage, management attitudes and financial strength and valuation. There are no redemption restrictions in the Baillie Gifford Funds. Silchester has a fund balance of $94 that has an investment objective to achieve long-term growth primarily by investing in a diversified portfolio of equity securities of companies located in any country other than the United States. Silchester clients may contribute to and redeem moneys from the funds on a monthly basis as of the last business day of each month. Clients must notify Silchester at least six business days before the month-end to make a redemption request. Baillie Gifford and Silchester, as a normal course of business, enter into contracts (commitments) that contain indemnifications or warranties. The funds' maximum exposure under these arrangements is unknown, as this would involve future claims that have not yet occurred. Baillie Gifford and Silchester have no unfunded commitments.

⁽³⁾ Limited partnerships are comprised of two assets that use NAV to calculate fair value. Pantheon Europe has a balance of $4 and Pantheon USA has a balance of $25. Their strategy is to create a portfolio of high quality private equity funds, operating across Europe and diversified by stage, sector, geography, manager and vintage year. As of December 31, 2018, Pantheon Europe and Pantheon USA have unfunded commitments of $1 and $5, respectively, and there were no significant redemption restrictions.

⁽⁴⁾UBS uses NAV to calculate fair value. UBS has a balance of $92 and is an actively managed core portfolio of equity real estate. The Fund has both relative and real return objectives. Its relative performance objective is to outperform the NFI_ODCE index over any given three-to-five-year period. The Fund's real return performance objective is to achieve at least a 5.0% real rate of return (i.e., inflation-adjusted return), before advisory fees, over any given three-to-five-year period. Investors may request redemptions of all or a portion of their units as of the end of a calendar quarter by delivering written notice to the Fund at least sixty days prior to the end of the quarter.

⁽⁵⁾MIL has a balance of $75 and is designed to realize appreciation in value primarily through the allocation of capital directly and indirectly among investment funds and accounts. There are significant redemption restrictions in the MIL fund.

As described in the Fair Value Measurements (excluding Consolidated Investment Entities) Note to these Consolidated Financial Statements, pension plan assets are categorized into a three-level fair value hierarchy based upon the inputs available in evaluating each of the assets. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (Level 1) and the lowest priority to unobservable inputs (Level 3). Certain investments are measured at fair value using the NAV per share as a practical expedient and have not been classified in the fair value hierarchy. The leveling hierarchy is applied to the pension plans assets as follows:

Cash and cash equivalents: The carrying amounts for cash and cash equivalents reflect the assets' fair value. The fair values for cash and cash equivalents are determined based on quoted market prices. These assets are classified as Level 1.

Short-term Investment Funds: Short term investment funds are estimated at NAV. See subscript (1) in Fair Value Hierarchy table footnotes for a description of the fund's redemption policies.

U.S. Government securities, corporate bonds and notes and foreign securities: Fair values for actively traded marketable bonds are determined based upon quoted market prices and are classified as Level 1 assets. Corporate bonds, ABS, U.S. agency bonds, and foreign securities use observable pricing method such as matrix pricing, market corroborated pricing or inputs such as yield curves and indices. These investments are classified as Level 2.

International Commingled Funds: Commingled funds are estimated at NAV per share. See subscript (2) in Fair Value Hierarchy table footnotes for description of the fund's redemption policies.

Equity securities: Fair values for actively traded equity securities are based upon a quoted market price determined in an active market and are included in Level 1. Collective trust use observable pricing method such as matrix pricing, market corroborated pricing or inputs such as yield curves and indices. These investments are classified as Level 2.

Real estate: Real estate is estimated at NAV. See subscript (4) in Fair Value Hierarchy table footnotes for more information on real estate.

Limited partnerships: Limited partnerships are estimated at NAV. See subscripts (3) and (5) in Fair Value Hierarchy table footnotes for more information on limited partnerships.

Expected Future Contributions and Benefit Payments

The following table summarizes the expected benefit payments for the Company's pension plans to be paid for the years indicated:



2020	$	125
2021	122
2022	126
2023	130
2024	130
2025-2029	682

The Company expects that it will make a cash contribution of approximately $86 to the Plans in 2020.

Defined Contribution Plans

Certain of the Company’s subsidiaries sponsor defined contribution plans. The largest defined contribution plan is the Voya 401(k) Savings Plan (the "Savings Plan"). The assets of the Savings Plan are held in independently administered funds. Substantially all employees of the Company are eligible to participate, other than the Company’s agents. The Savings Plan is a tax qualified defined contribution plan. Savings Plan benefits are not guaranteed by the PBGC. The Savings Plan allows eligible participants to defer into the Savings Plan a specified percentage of eligible compensation on a pretax basis. The Company matches such pretax contributions, up to a maximum of 6% of eligible compensation, subject to IRS limits. Matching contributions are subject to a 4-year graded vesting schedule. Contributions made to the Savings Plan are subject to certain limits imposed by applicable law.

These plans do not give rise to balance sheet provisions, other than relating to short-term timing differences included in Other liabilities. The amount of cost recognized for the defined contribution pension plans for the years ended December 31, 2019, 2018 and 2017 was $35, $35 and $39, respectively, and is recorded in Operating expenses in the Consolidated Statements of Operations.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Shareholders' equity included the following components of Accumulated Other Comprehensive Income ("AOCI") as of the dates indicated:



	December 31,
	2019			2018			2017
Fixed maturities, net of OTTI	$	5,546		$	1,074		$	5,351
Equity securities	—			—			35
Derivatives⁽¹⁾	145			170			127
DAC/VOBA adjustment on available-for-sale securities	(1,498		)	(380		)	(1,471		)
Premium deficiency reserve	(249		)	(57		)	(190		)
Sales inducements and other intangibles adjustment on available-for-sale securities	(185		)	(64		)	(278		)
Other	—			—			(18		)
Unrealized capital gains (losses), before tax	3,759			743			3,556
Deferred income tax asset (liability)	(435		)	(143		)	(840		)
Net unrealized capital gains (losses)	3,324			600			2,716
Pension and other postretirement benefits liability, net of tax	7			7			15
AOCI	$	3,331		$	607		$	2,731

⁽¹⁾Gains and losses reported in Accumulated Other Comprehensive Income (AOCI) from hedge transactions that resulted in the acquisition of an identified asset are reclassified into earnings in the same period or periods during which the asset acquired affects earnings. As of December 31, 2019, the portion of the AOCI that is expected to be reclassified into earnings within the next 12 months is $25.

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



	December 31, 2019
	Before-Tax Amount				Income Tax			After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	4,448			$	(935	)	$	3,513
Equity securities	—			⁽¹⁾	—			—
Other	—				—			—
OTTI	3				(1		)	2
Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations	21				(4		)	17
DAC/VOBA	(1,118		)	⁽²⁾	235			(883		)
Premium deficiency reserve	(192		)		40			(152		)
Sales inducements and other intangibles	(121		)		25			(96		)
Change in unrealized gains/losses on available-for-sale securities	3,041				(640		)	2,401

Derivatives:
Derivatives	—			⁽³⁾	—			—
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations	(25		)		5			(20		)
Change in unrealized gains/losses on derivatives	(25		)		5			(20		)

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations	(4		)	⁽⁴⁾	4			—
Change in pension and other postretirement benefits liability	(4		)		4			—
Change in Accumulated other comprehensive income (loss)	$	3,012			$	(631	)	$	2,381

⁽¹⁾Balance reclassified to Retained earnings due to adoption of ASU 2016-01.

⁽²⁾ See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Consolidated Financial Statements for additional information.

⁽³⁾ See the Derivative Financial Instruments Note to these Consolidated Financial Statements for additional information.

⁽⁴⁾ See the Employee Benefit Arrangements Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs.



	December 31, 2018
	Before-Tax Amount				Income Tax			After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	(4,379	)		$	1,079		$	(3,300	)
Equity securities	—			⁽¹⁾	—			—
Other	18				(8		)	10
OTTI	32				(9		)	23
Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations	70				(18		)	52
DAC/VOBA	1,091			⁽²⁾	(255		)	836
Premium deficiency reserve	133				(28		)	105
Sales inducements	214				(59		)	155
Change in unrealized gains/losses on available-for-sale securities	(2,821		)		702			(2,119		)

Derivatives:
Derivatives	69			⁽³⁾	(19		)	50
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations	(26		)		7			(19		)
Change in unrealized gains/losses on derivatives	43				(12		)	31

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations	(11		)	⁽⁴⁾	3			(8		)
Change in pension and other postretirement benefits liability	(11		)		3			(8		)
Change in Accumulated other comprehensive income (loss)	$	(2,789	)		$	693		$	(2,096	)

⁽¹⁾ Balance reclassified to Retained earnings due to adoption of ASU 2016-01.

⁽²⁾See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Consolidated Financial Statements for additional information.

⁽³⁾ See the Derivative Financial Instruments Note to these Consolidated Financial Statements for additional information.

⁽⁴⁾ See the Employee Benefit Arrangements Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs.



	December 31, 2017
	Before-Tax Amount				Income Tax			After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	1,943			$	(647	)	$	1,296
Equity securities	2				(1		)	1
Other	13				(5		)	8
OTTI	(2		)		1			(1		)
Adjustments for amounts recognized in Net realized capital gains (losses) in the Consolidated Statements of Operations	(3		)		1			(2		)
DAC/VOBA	(388		)	⁽¹⁾	150			(238		)
Premium deficiency reserve	(136		)		48			(88		)
Sales inducements	(109		)		39			(70		)
Change in unrealized gains/losses on available-for-sale securities	1,320				(414		)	906

Derivatives:
Derivatives	(106		)	⁽²⁾	37			(69		)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Consolidated Statements of Operations	(25		)		9			(16		)
Change in unrealized gains/losses on derivatives	(131		)		46			(85		)

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Consolidated Statements of Operations	(15		)	⁽³⁾	4			(11		)
Change in pension and other postretirement benefits liability	(15		)		4			(11		)
Change in Accumulated other comprehensive income (loss)	$	1,174			$	(364	)	$	810

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

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

⁽³⁾ See the Employee Benefit Arrangements Note to these Consolidated Financial Statements for amounts reported in Net Periodic (Benefit) Costs.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income tax expense (benefit) consisted of the following for the periods indicated:



	Year Ended December 31,
	2019			2018			2017
Current tax expense (benefit):
Federal	$	126		$	123		$	(128	)
State	1			(2		)	—
Total current tax expense (benefit)	127			121			(128		)
Deferred tax expense (benefit):
Federal	(335		)	(84		)	812
State	3			—			3
Total deferred tax expense (benefit)	(332		)	(84		)	815
Total income tax expense (benefit)	$	(205	)	$	37		$	687

Income taxes were different from the amount computed by applying the federal income tax rate to Income (loss) before income taxes for the following reasons for the periods indicated:



	Year Ended December 31,
	2019			2018			2017
Income (loss) before income taxes	$	560		$	528		$	385
Tax Rate	21.0		%	21.0		%	35.0		%
Income tax expense (benefit) at federal statutory rate	118			111			135
Tax effect of:
Valuation allowance	(250		)	(15		)	(28		)
Dividend received deduction	(37		)	(49		)	(40		)
Audit settlement	—			—			—
State tax expense (benefit)	1			10			4
Noncontrolling interest	(10		)	(30		)	(76		)
Tax credits	(33		)	—			14
Nondeductible expenses	1			4			2
Expirations of federal tax capital loss carryforward	—			—			2
Effect of Tax Reform	—			8			679			*
Other	5			(2		)	(5		)
Income tax expense (benefit)	$	(205	)	$	37		$	687
Effective tax rate	(36.6		)%	7.0		%	178.4		%

*Effect of Tax Reform includes a tax benefit of $283 related to change in valuation allowance

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 made 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) further limiting deductibility of executive compensation; (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; and (5) changing how alternative minimum tax (AMT) credits can be realized. Tax Reform eliminated the corporate AMT and allows the AMT credit carryforward to be refunded over the next 4 years. Any refundable corporate AMT credit is not subject to the sequestration requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

Temporary Differences

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities were as follows as of the dates indicated:



	December 31,
	2019			2018
Deferred tax assets
Federal and state loss carryforwards	$	2,147		$	2,051
Investments	189			246
Insurance reserves	—			187
Compensation and benefits	269			295
Other assets	132			124
Total gross assets before valuation allowance	2,737			2,903
Less: Valuation allowance	388			638
Assets, net of valuation allowance	2,349			2,265

Deferred tax liabilities
Net unrealized investment gains	(769		)	(145		)
Insurance reserves	(45		)	—
Deferred policy acquisition costs	(66		)	(493		)
Other liabilities	(11		)	(17		)
Total gross liabilities	(891		)	(655		)
Net deferred income tax asset (liability)	$	1,458		$	1,610

The following table sets forth the federal, state and capital loss carryforwards for tax purposes as of the dates indicated:



	December 31,
	2019			2018
Federal net operating loss carryforward	$	9,591	⁽¹⁾	$	9,319
State net operating loss carryforward	2,849		⁽²⁾	2,244
Federal tax capital loss carryforward	17		⁽³⁾	—
Credit carryforward	73		⁽⁴⁾	34

⁽¹⁾Approximately $5,882 of the net operating losses carryforwards ("NOL") not subject to expiration. Remaining NOLs expire between 2020 and 2037.

⁽²⁾ Approximately $362 of the NOLs not subject to expiration. Remaining NOLs expire between 2020 and 2040.

⁽³⁾ Expires in 2024.

⁽⁴⁾ Expires between 2020 and 2039.

Valuation allowances are provided when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. As of December 31, 2019 and 2018, the Company had a total valuation allowance of $388 and $638, respectively. As of December 31, 2019 and 2018, $742 and $992, respectively, of this valuation allowance was allocated to continuing operations, and $(354) and $(354) allocated to Other comprehensive income (loss) related to realized and unrealized capital losses, respectively.

In our assessment of the valuation allowance for the year ended December 31, 2019, we determined that it is more likely than not that $250 of additional deferred tax asset will be realized. As a result, we recorded a valuation allowance release of $250, all of which was allocated to continuing operations.

For the year ended December 31, 2018, the decrease in the valuation allowance was $15, all of which was allocated to continuing operations. The net decrease in the valuation allowance was a result of the utilization of certain capital losses subject to a valuation allowance as well as state apportionment changes for certain state deferred tax assets subject to a valuation allowance.

For the year ended December 31, 2017, the decrease in the valuation allowance was $311, all of which was allocated to continuing operations.The net decrease in the valuation allowance was primarily related to the reduction in the U.S. federal corporate tax rate from 35% to 21%, and expiration of foreign tax credits subject to a valuation allowance.

Unrecognized Tax Benefits

Reconciliations of the change in the unrecognized income tax benefits were as follows for the periods indicated:



	Year Ended December 31,
	2019			2018			2017
Balance at beginning of period	$	33		$	37		$	36
Additions for tax positions related to current year	1			2			2
Additions for tax positions related to prior years	—			1			—
Reductions for tax positions related to prior years	(2		)	(1		)	—
Reductions for settlements with taxing authorities	—			(6		)	—
Reductions for expiring statutes	—			—			(1		)
Balance at end of period	$	32		$	33		$	37

The Company had $1, $1, and $8 of unrecognized tax benefits as of December 31, 2019, 2018 and 2017, respectively, which would affect the Company's effective rate if recognized.

Interest and Penalties

The Company recognizes interest expense and penalties, if applicable, related to unrecognized tax benefits in tax expense net of federal income tax. The total amounts of gross accrued interest and penalties on the Company's Consolidated Balance Sheets as of December 31, 2019 and 2018 were immaterial. The Company recognized no gross interest (benefit) related to unrecognized tax in its Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017.

The timing of the payment of the remaining accrued interest and penalties cannot be reasonably estimated.

Tax Regulatory Matters

For the tax years 2017 through 2020, Voya Financial, Inc. participates in the IRS Compliance Assurance Process (CAP), which is a continuous audit program provided by the IRS. The IRS finalized the audit of Voya Financial, Inc. for the periods ended December 31, 2017 and December 31, 2018. For the periods ended December 31, 2019 and December 31, 2020, the IRS has determined that Voya Financial, Inc. would be in the Compliance Maintenance Bridge (Bridge) phase of CAP. In the Bridge phase, the IRS does not intend to conduct any review or provide any letters of assurance for the tax year.

Financing Agreements

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Financing Agreements

Short-term Debt

As of December 31, 2019 and 2018, the Company had $1, respectively, of short-term borrowings outstanding consisting entirely of the current portion of long-term debt.

Long-term Debt

The following table summarizes the carrying value of the Company’s long-term debt securities issued and outstanding as of December 31, 2019 and 2018:



	Issuer	Maturity	2019		2018
5.5% Senior Notes, due 2022⁽²⁾⁽³⁾	Voya Financial, Inc.	07/15/2022	$	—	$	96
3.125% Senior Notes, due 2024⁽²⁾⁽³⁾	Voya Financial, Inc.	07/15/2024	397		396
3.65% Senior Notes, due 2026⁽²⁾⁽³⁾	Voya Financial, Inc.	06/15/2026	496		496
5.7% Senior Notes, due 2043⁽²⁾⁽³⁾	Voya Financial, Inc.	07/15/2043	395		395
4.8% Senior Notes, due 2046⁽²⁾⁽³⁾	Voya Financial, Inc.	06/15/2046	297		297
4.7% Fixed-to-Floating Rate Junior Subordinated Notes, due 2048⁽⁴⁾	Voya Financial, Inc.	01/23/2048	345		344
5.65% Fixed-to-Floating Rate Junior Subordinated Notes, due 2053⁽⁴⁾	Voya Financial, Inc.	05/15/2053	739		739
7.25% Voya Holdings Inc. debentures, due 2023⁽¹⁾	Voya Holdings Inc.	08/15/2023	139		138
7.63% Voya Holdings Inc. debentures, due 2026⁽¹⁾	Voya Holdings Inc.	08/15/2026	138		138
6.97% Voya Holdings Inc. debentures, due 2036⁽¹⁾	Voya Holdings Inc.	08/15/2036	79		79
8.42% Equitable of Iowa Companies Capital Trust II Notes, due 2027	Equitable of Iowa Capital Trust II	04/01/2027	14		14
1.00% Windsor Property Loan	Voya Retirement Insurance and Annuity Company	06/14/2027	4		5
Subtotal			3,043		3,137
Less: Current portion of long-term debt			1		1
Total			$	3,042	$	3,136

⁽¹⁾ Guaranteed by ING Group.

⁽²⁾Interest is paid semi-annually in arrears.

⁽³⁾Guaranteed by Voya Holdings.

⁽⁴⁾See the Junior Subordinated Notes section below.

Unsecured senior debt, which consists of senior fixed rate notes and guarantees of fixed rate notes, ranks highest in priority, followed by subordinated debt, which consists of junior subordinated debt securities.

The aggregate amounts of future principal payments of long-term debt issued by the Company at December 31, 2019 for the next five years and thereafter are $1 in 2020, $1 in 2021, $1 in 2022, $1 in 2023, $140 in 2024 and $2,932 thereafter.

The aggregate amounts of future principal payments of long-term debt issued by Voya Financial, Inc. at December 31, 2019 for the next five years and thereafter are $0 in 2020, $0 in 2021, $0 in 2022, $0 in 2023, $0 in 2024 and $2,700 thereafter.

Loss on Debt Extinguishment

The Company incurred a loss on debt extinguishment of $9, $40 and $4 for the years ended December 31, 2019, 2018 and 2017, respectively, which was recorded in Interest expense in the Consolidated Statements of Operations.

Senior Notes

On July 5, 2017, Voya Financial, Inc. issued $400 of unsecured 3.125% Senior Notes due July 15, 2024 (the "2024 Notes") in a registered public offering. The 2024 Notes are guaranteed by Voya Holdings. Interest is paid semi-annually, in arrears on each January 15 and July 15.

During the year ended December 31, 2019, the Company completed the redemption of the remaining $97 aggregate principal amount of 5.5% Senior Notes due 2022 (the "2022 Notes"). During the year ended December 31, 2018, Voya Financial, Inc. repurchased $141 and redeemed $125 in aggregate principal amounts of the outstanding 2.9% Senior Notes due 2018.

Junior Subordinated Notes

Outstanding junior subordinated notes were as follows as of December 31, 2019:

Issuer

Issue Date

Interest Rate⁽¹⁾

Scheduled Redemption Date

Interest Rate Subsequent to Scheduled Redemption Date⁽²⁾

Final Maturity Date

Face Value

Voya Financial, Inc.

05/16/2013

5.65

%

05/15/2023

LIBOR

+

3.58%

05/15/2053

(3)

$

750

Voya Financial, Inc.

01/23/2018

4.70

%

01/23/2028

LIBOR

+

2.084%

01/23/2048

(4)

$

350

⁽¹⁾ Prior to the scheduled redemption date, interest is paid semi-annually, in arrears.

⁽²⁾ In the event the securities are not redeemed on or before the scheduled redemption date, interest will accrue after such date at an annual rate of three month LIBOR plus the indicated margin, payable quarterly in arrears.

⁽³⁾ The 5.65% Fixed-to-Floating Rate Junior Subordinated Notes due 2053 (the "2053 Notes") are guaranteed on a junior subordinated basis by Voya Holdings.

⁽⁴⁾ The 4.70% Fixed-to-Floating Rate Junior Subordinated Notes due 2048 (the "2048 Notes") are guaranteed on an unsecured, junior subordinated basis by Voya Holdings.

The Company has the right to defer interest payments on the Junior Subordinated Notes for one or more consecutive interest periods for up to five years, without resulting in a default, during which time interest will be compounded. On or after the optional redemption dates, Voya Financial, Inc. may redeem the Junior Subordinated Notes in whole or in part for the principal amount being redeemed plus accrued and unpaid interest. Prior to the optional redemption dates, the Company may elect to redeem the Junior Subordinated Notes for the principal amount being redeemed upon the occurrence of certain events as defined in the indentures governing the Junior Subordinated Notes, plus accrued and unpaid interest.

At any time following notice of the Company's plan to defer interest and during the period interest is deferred, the Company and its subsidiaries generally, with certain exceptions, may not make payments on or redeem or purchase any shares of the Company's common or preferred stock or any of the debt securities or guarantees that rank in liquidation on a parity with or are junior to the Junior Subordinated Notes.

Aetna Notes

ING Group guarantees various debentures of Voya Holdings that were assumed by Voya Holdings in connection with the Company’s acquisition of Aetna’s life insurance and related businesses in 2000 (the "Aetna Notes"). Concurrent with the completion of the Company’s IPO, the Company entered into a shareholder agreement with ING Group that governs certain aspects of the Company’s continuing relationship. Pursuant to that agreement, the Company is obligated to reduce the aggregate outstanding principal amount of Aetna Notes to no more than zero as of December 31, 2019 or otherwise to make provision for ING Group's guarantee of any outstanding Aetna Notes in excess of such amounts.

The Company's obligation to ING Group with respect to the Aetna Notes can be met, at the Company’s option, through redemptions, repurchases or by posting collateral with a third-party collateral agent, for the benefit of ING Group.

If the Company fails to meet these obligations to ING Group, the Company has agreed to pay a prescribed quarterly fee (1.25% per quarter for 2019) to ING Group based on the outstanding principal amount of Aetna Notes for which provision has not been made, in excess of the limits set forth above.

As of December 31, 2019 and 2018, the outstanding principal amounts of the Aetna Notes were $358, respectively. As of December 31, 2019 and 2018, the amounts of collateral required to avoid the payment of a fee to ING Group were $358 and $258, respectively. During the years ended December 31, 2019 and 2018, the Company deposited $105 and $36 of collateral, respectively, increasing the remaining collateral balance to $372 and $267, respectively.

Windsor Property Loan

On June 16, 2007, the State of Connecticut acting on behalf of the Department of Economic and Community Development ("DECD") loaned VRIAC $10 (the "DECD Loan") in connection with the development of a corporate office facility located at One Orange Way, Windsor, Connecticut that serves as the principal executive offices of the Company (the "Windsor Property"). As of December 31, 2019 and 2018, the amount of the loan outstanding was $4, which is reflected in Long-term debt on the Consolidated Balance Sheets.

In August 2017 the loan agreement between VRIAC and the DECD was amended and $5 in cash was transferred into the cash deposit account as cash collateral. VRIAC’s monthly payments of principal and interest are processed out of the cash deposit account.

Put Option Agreement for Senior Debt Issuance

During 2015, the Company entered into an off-balance sheet 10-year put option agreement with a Delaware trust formed by the Company, in connection with the sale by the trust of pre-capitalized trust securities ("P-Caps"), that provides Voya Financial, Inc. the right, at any time over a 10-year period, to issue up to $500 principal amount of its 3.976% Senior Notes due 2025 ("3.976% Senior Notes") to the trust and receive in exchange a corresponding principal amount of U.S. Treasury securities that are held by the trust. The 3.976% Senior Notes will not be issued unless and until the put option is exercised. In return, the Company pays a semi-annual put premium to the trust at a rate of 1.875% per annum applied to the unexercised portion of the put option, and reimburses the trust for its expenses. The put premium and expense reimbursements are recorded in Operating expenses in the Consolidated Statements of Operations. If and when issued, the 3.976% Senior Notes will be guaranteed by Voya Holdings.

Upon an event of default, the put option will be exercised automatically in full. The Company has a one-time right to unwind a prior voluntary exercise of the put option by repurchasing all of the 3.976% Senior Notes then held by the trust for U.S. Treasury securities. If the put option has been fully exercised, the 3.976% Senior Notes issued may be redeemed by the Company prior to their maturity at par or, if greater, at a make-whole redemption price, in each case plus accrued and unpaid interest to the date of redemption. The P-Caps are to be redeemed by the trust on February 15, 2025 or upon any early redemption of the 3.976% Senior Notes.

Credit Facilities

The Company uses credit facilities to provide collateral required primarily under its affiliated reinsurance transactions with captive insurance subsidiaries. Total fees associated with credit facilities for the years ended 2019, 2018 and 2017 were $34, $34 and $50, respectively.

The following table outlines the Company's credit facilities as of December 31, 2019:



	Secured/ Unsecured	Committed/ Uncommitted	Expiration	Capacity		Utilization		Unused Commitment
Obligor / Applicant
Voya Financial, Inc.	Unsecured	Committed	11/01/2024	$	500	$	—	$	500
Voya Financial, Inc. / Security Life of Denver International Limited	Unsecured	Committed	03/20/2022	250		242		8
Security Life of Denver International Limited	Unsecured	Committed	10/29/2023	61		51		10
Voya Financial, Inc. / Security Life of Denver International Limited	Unsecured	Committed	12/31/2025	475		475		—
Voya Financial, Inc. / Security Life of Denver International Limited	Unsecured	Committed	07/01/2037	1,725		1,606		119
Voya Financial, Inc.	Unsecured	Committed	02/11/2022	300		300		—
Voya Financial, Inc.	Secured	Uncommitted	Various	10		1		—
Voya Financial, Inc. / Roaring River LLC	Unsecured	Committed	10/01/2025	425		392		33
Voya Financial, Inc. / Roaring River IV, LLC	Unsecured	Committed	12/31/2028	565		357		208
Voya Financial, Inc. / Security Life of Denver International Limited	Unsecured	Uncommitted	12/31/2020	300		58		—
Voya Financial, Inc.	Unsecured	Committed	12/09/2024	300		250		50
Voya Financial, Inc.	Unsecured	Uncommitted	04/27/2021	125		125		—
Total				$	5,036	$	3,857	$	928

Senior Unsecured Credit Facility

As of December 31, 2019, the Company had a $500 senior unsecured credit facility with a syndicate of banks which expires November 1, 2024. The facility provides $500 of committed capacity for issuing letters of credit and the full $500 may be utilized for direct borrowings. As of December 31, 2019, there were no amounts outstanding as revolving credit borrowings and no amounts of LOCs outstanding under the senior unsecured credit facility. Under the terms of the facility, the Company is required to maintain a minimum net worth of $6.15 billion, which may increase upon any future equity issuances by the Company.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Leases

The Company leases its office space and certain equipment under operating leases, the longest term of which expires in 2030. The Company also has currently one finance lease associated with a service contract.

For the years ended December 31, 2019, 2018 and 2017, rent expense for leases was $30, $29 and $34, respectively. Payments under the finance leases were $4. The future net minimum payments under non-cancelable leases are as follows as of December 31, 2019:



	Operating Leases			Finance Leases
2020	$	31		$	21
2021	28			21
2022	28			21
2023	23			2
2024	18			—
Thereafter	17			—
Total undiscounted lease payments	145			65
Less: Imputed interest	(26		)	(3		)
Total Lease liabilities	$	119		$	62

During 2019, the Company entered into a lease agreement, which has a commencement date in 2020 and a commitment of $38. This agreement is excluded from the table above.

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 December 31, 2019, the Company had off-balance sheet commitments to acquire mortgage loans of $107 and purchase limited partnerships and private placement investments of $909, of which $255 related to consolidated investment entities.

Insurance Company Guaranty Fund Assessments

Insurance companies are assessed on the costs of funding the insolvencies of other insurance companies by the various state guaranty associations, generally based on the amount of premiums companies collect in that state.

The Company accrues the cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations and the amount of premiums written in each state. The Company has estimated this undiscounted liability, which is included in Other liabilities on the Consolidated Balance Sheets, to be $1 and $2 as of December 31, 2019 and 2018, respectively. The Company has also recorded an asset, in Other assets on the Consolidated Balance Sheets of $14 and $15 as of December 31, 2019 and 2018, respectively, for future credits to premium taxes. The Company estimates its liabilities for future assessments under state insurance guaranty association laws. The Company believes the reserves established are adequate for future assessments relating to insurance companies that are currently subject to insolvency proceedings.

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, credit facilities and derivative transactions. The components of the fair value of the restricted assets were as follows as of December 31, 2019 and 2018:



	2019		2018
Fixed maturity collateral pledged to FHLB⁽¹⁾	$	1,211	$	771
FHLB restricted stock⁽²⁾	55		50
Other fixed maturities-state deposits	48		99
Cash & cash equivalents	12		13
Securities pledged⁽³⁾	1,408		1,462
Total restricted assets	$	2,734	$	2,395

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

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

⁽³⁾Includes the fair value of loaned securities of $1,159 and $1,237 as of December 31, 2019 and 2018, respectively. In addition, as of December 31, 2019 and 2018, the Company delivered securities as collateral of $183 and $180 and repurchase agreements of $66 and $45, respectively. Loaned securities and securities delivered as collateral are included in Securities pledged on the Consolidated Balance Sheets.

Federal Home Loan Bank Funding Agreements

The Company is a member of the FHLB of Des Moines and the FHLB of Boston, and is required to pledge collateral to back funding agreements issued to the FHLB. As of December 31, 2019 and 2018, the Company had $877 and $657, respectively, in non-putable funding agreements, which are included in Contract owner account balances on the Consolidated Balance Sheets. As of December 31, 2019 and 2018, assets with a market value of approximately $1,211 and $771, respectively, collateralized the FHLB funding agreements. Assets pledged to the FHLB are included in Fixed maturities, available-for-sale, at fair value on the Consolidated Balance Sheets. Additionally, SLD is currently a member of FHLB of Topeka. The related non-puttable funding agreements and the assets pledged are reflected in Liabilities and Assets held for sale, respectively on the Consolidated Balance Sheets.

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.

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 December 31, 2019, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, to be up to approximately $50.

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 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.

Litigation also includes Henkel of America v. ReliaStar Life Insurance Company (USDC District of Connecticut, No. 1:18-cv-00965) (filed June 8, 2018). Plaintiff alleges that ReliaStar breached the terms of a stop loss policy it issued to Plaintiff by refusing to reimburse Plaintiff for more than $47 in claims incurred by participants in prior years and submitted for coverage under the stop loss policy. Plaintiff alleges a breach of contract claim or, in the alternative, that the stop loss policy be declared to cover the submitted claims, and also asserts that ReliaStar engaged in unfair trade practices and unfair insurance practices in violation of state statutes, and did so willfully and intentionally to warrant an award of punitive damages under state law. The Company denies the allegations, which it believes are without merit, and intends to defend the case vigorously.

Lastly, litigation includes Zhou v. Voya Financial, Inc. and Security Life of Denver (USDC District of Colorado, No. 1:19-cv-02781)(filed September 27, 2019), a putative class action in which the plaintiff alleges that the Company did not properly administer certain universal life insurance policies. The plaintiff claims that the Company did not timely credit interest earned on the payment of her premiums and incorrectly calculated the amount of interest that the Company credited to her account. In addition to the class allegations, the lawsuit alleges breach of contract and conversion and seeks declaratory and injunctive relief. The Company denies the allegations, which it believes are without merit, and intends to defend the case vigorously.

Finally, industry wide, life insurers continue to be exposed to class action litigation related to the cost of insurance rates and periodic deductions from cash value. Common allegations include that insurance companies have breached the terms of their universal life insurance policies by establishing or increasing the cost of insurance rates using cost factors not permitted by the contract, thereby unjustly enriching themselves. This litigation is generally known as cost of insurance litigation.

Cost of insurance litigation for the Company includes Barnes v. Security Life of Denver (USDC District of Colorado, No. 1:18-cv-00718) (filed March 27, 2018), a putative class action in which the plaintiff alleges that his insurance policy only permitted the Company to rely upon his expected future mortality experience to establish and increase his cost of insurance, but the Company instead relied upon other, non-disclosed factors to do so. Plaintiff alleges breach of contract and conversion claims against the

Company and also seeks declaratory relief. The Company denies the allegations in the complaint, believes the complaint to be without merit, and intends to defend the matter vigorously.

Cost of insurance litigation for the Company also includes Advance Trust & Life Escrow Services, LTA v. Security Life of Denver (USDC District of Colorado, No. 1:18-cv-01897) (filed July 26, 2018), a putative class action in which Plaintiff alleges that two specific types of universal life insurance policies only permitted the Company to rely upon the policyholder’s expected future mortality experience to establish and increase the cost of insurance, but the Company instead relied upon other, non-disclosed factors not only in the administration of the policies over time, but also in the decision to increase insurance costs beginning in approximately October 2015. Plaintiff alleges a breach of contract and seeks class certification. The Company denies the allegations in the complaint, believes the complaint to be without merit, and intends to defend the lawsuit vigorously.

Finally, cost of insurance litigation includes Advance Trust & Life Escrow Services, LTA v. ReliaStar Life Insurance Company (USDC District of Minnesota, No. 1:18-cv-02863) (filed October 5, 2018), a putative class action in which Plaintiff alleges that the Company’s universal life insurance policies only permitted the Company to rely upon the policyholders’ expected future mortality experience to establish the cost of insurance, and that as projected mortality experience improved, the policy language required the Company to decrease the cost of insurance. Plaintiff alleges that the Company did not decrease the cost of insurance as required, thereby breaching its contract with its policyholders, and seeks class certification. The Company denies the allegations in the complaint, believes the complaint to be without merit, and will defend the lawsuit vigorously.

Contingencies related to Performance-based Capital Allocations on Private Equity Funds

Certain performance-based capital allocations related to sponsored private equity funds ("carried interest") are not final until the conclusion of an investment term specified in the relevant asset management contract. As a result, such carried interest, if accrued or paid to the Company during such term, is subject to later adjustment based on subsequent fund performance. If the fund’s cumulative investment return falls below specified investment return hurdles, some or all of the previously accrued carried interest is reversed to the extent that the Company is no longer entitled to the performance-based capital allocation. Should the fund’s cumulative investment return subsequently increase above specified investment return hurdles in future periods, previous reversals could be fully or partially recovered.

As of December 31, 2019, approximately $79 of previously accrued carried interest would be subject to full or partial reversal in future periods if cumulative fund performance hurdles are not maintained throughout the remaining life of the affected funds.

Consolidated Investment Entities

12 Months Ended

Dec. 31, 2019

Consolidated Investment Entities [Abstract]

Consolidated Investment Entities

In the normal course of business, the Company provides investment management services to, invests in and has transactions with, various types of investment entities which may be considered VIEs or VOEs. The Company evaluates its involvement with each entity to determine whether consolidation is required.

The Company holds variable interests in certain investment entities in the form of debt or equity investments, as well as the right to receive management fees, performance fees, and carried interest. The Company consolidates certain entities under the VIE guidance when it is determined that the Company is the primary beneficiary. Alternatively, certain entities are consolidated under the VOE guidance when control is obtained through voting rights.

The Company has no right to the benefits from, nor does it bear the risks associated with consolidated investment entities beyond the Company’s direct equity and debt investments in and management fees generated from these entities. Such direct investments amounted to approximately $279 and $290 on a continuing basis as of December 31, 2019 and 2018, respectively. If the Company were to liquidate, the assets held by consolidated investment entities would not be available to the general creditors of the Company as a result of the liquidation.

Consolidated VIEs and VOEs

Collateral Loan Obligations Entities ("CLOs")

The Company is involved in the design, creation, and the ongoing management of CLOs. These entities are created for the purpose of acquiring diversified portfolios of senior secured floating rate leveraged loans, and securitizing these assets by issuing multiple

tranches of collateralized debt; thereby providing investors with a broad array of risk and return profiles. Also known as collateralized financing entities under Topic 810, CLOs are variable interest entities by definition.

In return for providing collateral management services, the Company earns investment management fees and contingent performance fees. In addition to earning fee income, the Company often holds an investment in certain of the CLOs it manages, generally within the unrated and most subordinated tranche of each CLO. The fee income earned and investments held are included in the Company's ongoing consolidation assessment for each CLO. The Company was the primary beneficiary of 3 and 2 CLOs as of December 31, 2019 and 2018, respectively.

Limited Partnerships ("LPs")

The Company invests in and manages various limited partnerships, including private equity funds and hedge funds. These entities have been evaluated by the Company and are determined to be VIEs due to the equity holders, as a group, lacking the characteristics of a controlling financial interest.

In return for serving as the general partner of and providing investment management services to these entities, the Company earns management fees and carried interest in the normal course of business. Additionally, the Company often holds an investment in each limited partnership it manages, generally in the form of general partner and limited partner interests. The fee income, carried interest, and investments held are included in the Company’s ongoing consolidation analysis for each limited partnership. The Company consolidated 12 funds, which were structured as partnerships, as of December 31, 2019 and 2018, respectively.

Registered Investment Companies

The Company consolidated one sponsored investment fund accounted for as a VOE as of December 31, 2019 and 2018, because it is the majority investor in the fund, and as such, has a controlling financial interest in the fund.

The following table summarizes the components of the consolidated investment entities as of the dates indicated:



	December 31, 2019		December 31, 2018
Assets of Consolidated Investment Entities
VIEs
Cash and cash equivalents	$	68	$	331
Corporate loans, at fair value using the fair value option	513		542
Limited partnerships/corporations, at fair value	1,470		1,313
Other assets	12		15
Total VIE assets	2,063		2,201
VOEs
Limited partnerships/corporations, at fair value	162		108
Other assets	1		1
Total VOE assets	163		109
Total assets of consolidated investment entities	$	2,226	$	2,310

Liabilities of Consolidated Investment Entities
VIEs
CLO notes, at fair value using the fair value option	$	474	$	540
Other liabilities	650		681
Total VIE liabilities	1,124		1,221
VOEs
Other liabilities	2		7
Total VOE liabilities	2		7
Total liabilities of consolidated investment entities	$	1,126	$	1,228

The following tables summarize the impact of consolidation of investment entities into the Consolidated Balance Sheets as of the dates indicated:



	Before Consolidation⁽¹⁾		CLOs		LPs and VOEs		CLOs Adjustments⁽²⁾			LPs and VOEs Adjustments⁽²⁾			Total
December 31, 2019
Total investments and cash	$	55,146	$	—	$	—	$	(32	)	$	(246	)	$	54,868
Other assets	10,219		—		—		—			(1		)	10,218
Assets held in consolidated investment entities	—		551		1,675		—			—			2,226
Assets held in separate accounts	81,670		—		—		—			—			81,670
Assets held for sale	20,069		—		—		—			—			20,069
Total assets	$	167,104	$	551	$	1,675	$	(32	)	$	(247	)	$	169,051

Future policy benefits and contract owner account balances	$	50,868	$	—	$	—	$	—		$	—		$	50,868
Other liabilities	6,659		—		—		—			—			6,659
Liabilities held in consolidated investment entities	1		551		607		(32		)	(1		)	1,126
Liabilities related to separate accounts	81,670		—		—		—			—			81,670
Liabilities held for sale	18,498		—		—		—			—			18,498
Total liabilities	157,696		551		607		(32		)	(1		)	158,821
Equity attributable to common shareholders	9,408		—		1,068		—			(1,068		)	9,408
Equity attributable to noncontrolling interest in consolidated investment entities	—		—		—		—			822			822
Total liabilities and equity	$	167,104	$	551	$	1,675	$	(32	)	$	(247	)	$	169,051

⁽¹⁾ The Before Consolidation column includes the Company's direct investments in CIEs prior to consolidation,which are accounted for using the equity method or fair value option.

⁽²⁾Adjustments include the elimination of intercompany transactions between the Company and CIEs. This consists primarily of the Company’s direct investments in CIEs, but may also contain intercompany receivables or payables. The Company’s direct investments are eliminated against CIE liabilities in the case of CLOs, or the net assets of consolidated private equity and other funds.



	Before Consolidation⁽¹⁾		CLOs		LPs and VOEs		CLOs Adjustments⁽²⁾			LPs and VOEs Adjustments⁽²⁾			Total
December 31, 2018
Total investments and cash	$	52,142	$	—	$	—	$	(7	)	$	(283	)	$	51,852
Other assets	11,293		—		—		—			(1		)	11,292
Assets held in consolidated investment entities	—		589		1,721		—			—			2,310
Assets held in separate accounts	69,931		—		—		—			—			69,931
Assets held for sale	20,045		—		—		—			—			20,045
Total assets	$	153,411	$	589	$	1,721	$	(7	)	$	(284	)	$	155,430

Future policy benefits and contract owner account balances	$	50,770	$	—	$	—	$	—		$	—		$	50,770
Other liabilities	6,593		—		—		—			—			6,593
Liabilities held in consolidated investment entities	1		589		646		(7		)	(1		)	1,228
Liabilities related to separate accounts	69,931		—		—		—			—			69,931
Liabilities held for sale	17,903		—		—		—			—			17,903
Total liabilities	145,198		589		646		(7		)	(1		)	146,425
Equity attributable to common shareholders	8,213		—		1,075		—			(1,075		)	8,213
Equity attributable to noncontrolling interest in consolidated investment entities	—		—		—		—			792			792
Total liabilities and equity	$	153,411	$	589	$	1,721	$	(7	)	$	(284	)	$	155,430

⁽¹⁾ The Before Consolidation column includes the Company's direct investments in CIEs prior to consolidation, which are accounted for using the equity method or fair value option.

⁽²⁾Adjustments include the elimination of intercompany transactions between the Company and CIEs. This consists primarily of the Company’s direct investments in CIEs, but may also contain intercompany receivables or payables. The Company’s direct investments are eliminated against CIE liabilities in the case of CLOs, or the net assets of consolidated private equity and other funds.

The following tables summarize the impact of consolidation of investment entities into the Consolidated Statements of Operations for the periods indicated:



	Before Consolidation⁽¹⁾			CLOs		LPs and VOEs		CLOs Adjustments⁽²⁾			LPs and VOEs Adjustments⁽²⁾			Total
December 31, 2019
Revenues:
Net investment income	$	2,801		$	—	$	—	$	(1	)	$	(8	)	$	2,792
Fee income	2,008			—		—		(2		)	(37		)	1,969
Premiums	2,273			—		—		—			—			2,273
Net realized capital losses	(166		)	—		—		—			—			(166		)
Other income	465			—		—		—			—			465
Income related to consolidated investment entities	(1		)	23		121		—			—			143
Total revenues	7,380			23		121		(3		)	(45		)	7,476
Benefits and expenses:
Policyholder benefits and Interest credited and other benefits to contract owners	3,750			—		—		—			—			3,750
Other expense	3,121			—		—		—			—			3,121
Operating expenses related to consolidated investment entities	(1		)	23		64		(3		)	(38		)	45
Total benefits and expenses	6,870			23		64		(3		)	(38		)	6,916
Income (loss) before income taxes	510			—		57		—			(7		)	560
Income tax expense (benefit)	(205		)	—		—		—			—			(205		)
Income (loss) from continuing operations	715			—		57		—			(7		)	765
Income (loss) from discontinued operations, net of tax	(1,066		)	—		—		—			—			(1,066		)
Net income (loss)	(351		)	—		57		—			(7		)	(301		)
Less: Net income (loss) attributable to noncontrolling interest	—			—		—		—			50			50
Net income (loss) available to Voya Financial, Inc.	(351		)	—		57		—			(57		)	(351		)
Less: Preferred stock dividends	28			—		—		—			—			28
Net income (loss) available to Voya Financial, Inc.'s common shareholders	$	(379	)	$	—	$	57	$	—		$	(57	)	$	(379	)

⁽¹⁾The Before Consolidation column includes the net investment income and fee income earned from CIEs prior to consolidation.

⁽²⁾Adjustments include the elimination of intercompany transactions between the Company and CIE's, primarily the elimination of management fees expensed by the funds and recorded as fee income by the Company prior to consolidation.



	Before Consolidation⁽¹⁾			CLOs		LPs and VOEs		CLOs Adjustments⁽²⁾			LPs and VOEs Adjustments⁽²⁾			Total
December 31, 2018
Revenues:
Net investment income	$	2,716		$	—	$	—	$	(1	)	$	(46	)	$	2,669
Fee income	2,033			—		—		(3		)	(48		)	1,982
Premiums	2,132			—		—		—			—			2,132
Net realized capital losses	(355		)	—		—		—			—			(355		)
Other income	443			—		—		—			—			443
Income related to consolidated investment entities	—			28		264		—			—			292
Total revenues	6,969			28		264		(4		)	(94		)	7,163
Benefits and expenses:
Policyholder benefits and Interest credited and other benefits to contract owners	3,526			—		—		—			—			3,526
Other expense	3,060			—		—		—			—			3,060
Operating expenses related to consolidated investment entities	—			28		73		(4		)	(48		)	49
Total benefits and expenses	6,586			28		73		(4		)	(48		)	6,635
Income (loss) before income taxes	383			—		191		—			(46		)	528
Income tax expense (benefit)	37			—		—		—			—			37
Income (loss) from continuing operations	346			—		191		—			(46		)	491
Income (loss) from discontinued operations, net of tax	529			—		—		—			—			529
Net income (loss)	875			—		191		—			(46		)	1,020
Less: Net income (loss) attributable to noncontrolling interest	—			—		—		—			145			145
Net income (loss) available to Voya Financial, Inc.	875			—		191		—			(191		)	875
Less: Preferred stock dividends	—			—		—		—			—			—
Net income (loss) available to Voya Financial, Inc.'s common shareholders	$	875		$	—	$	191	$	—		$	(191	)	$	875

⁽¹⁾The Before Consolidation column includes the net investment income and fee income earned from CIEs prior to consolidation.

⁽²⁾Adjustments include the elimination of intercompany transactions between the Company and CIE's, primarily the elimination of management fees expensed by the funds and recorded as fee income by the Company prior to consolidation.



	Before Consolidation⁽¹⁾			CLOs		LPs and VOEs		CLOs Adjustments⁽²⁾			LPs and VOEs Adjustments⁽²⁾			Total
December 31, 2017
Revenues:
Net investment income	$	2,721		$	—	$	—	$	(2	)	$	(78	)	$	2,641
Fee income	1,937			—		—		(9		)	(39		)	1,889
Premiums	2,097			—		—		—			—			2,097
Net realized capital losses	(209		)	—		—		—			—			(209		)
Other income	379			—		—		—			—			379
Income related to consolidated investment entities	—			82		350		—			—			432
Total revenues	6,925			82		350		(11		)	(117		)	7,229
Benefits and expenses:
Policyholder benefits and Interest credited and other benefits to contract owners	3,658			—		—		—			—			3,658
Other expense	3,099			—		—		—			—			3,099
Operating expenses related to consolidated investment entities	—			82		55		(11		)	(39		)	87
Total benefits and expenses	6,757			82		55		(11		)	(39		)	6,844
Income (loss) before income taxes	168			—		295		—			(78		)	385
Income tax expense (benefit)	687			—		—		—			—			687
Income (loss) from continuing operations	(519		)	—		295		—			(78		)	(302		)
Income (loss) from discontinued operations, net of tax	(2,473		)	—		—		—			—			(2,473		)
Net income (loss)	(2,992		)	—		295		—			(78		)	(2,775		)
Less: Net income (loss) attributable to noncontrolling interest	—			—		—		—			217			217
Net income (loss) available to Voya Financial, Inc.	(2,992		)	—		295		—			(295		)	(2,992		)
Less: Preferred stock dividends	—			—		—		—			—			—
Net income (loss) available to Voya Financial, Inc.'s common shareholders	$	(2,992	)	$	—	$	295	$	—		$	(295	)	$	(2,992	)

⁽¹⁾The Before Consolidation column includes the net investment income and fee income earned from CIEs prior to consolidation.

⁽²⁾Adjustments include the elimination of intercompany transactions between the Company and CIE's, primarily the elimination of management fees expensed by the funds and recorded as fee income by the Company prior to consolidation.

Fair Value Measurement

Upon consolidation, the Company elected to apply the FVO for financial assets and financial liabilities held by CLOs and continued to measure these assets (primarily corporate loans) and liabilities (debt obligations issued by CLOs) at fair value in subsequent periods. The Company has elected the FVO to more closely align its accounting with the economics of its transactions and allows the Company to more effectively align changes in the fair value of CLO assets with a commensurate change in the fair value of CLO liabilities.

Investments held by consolidated private equity funds are measured and reported at fair value in the Company's Consolidated Financial Statements. Changes in the fair value of consolidated investment entities are recorded as a separate line item within Income (loss) related to consolidated investment entities in the Company's Consolidated Statements of Operations.

The methodology for measuring the fair value of financial assets and liabilities of consolidated investment entities, and the classification of these measurements in the fair value hierarchy is consistent with the methodology and classification applied by the Company to its investment portfolio.

As discussed in more detail below, the Company utilizes valuations obtained from third-party commercial pricing services, brokers and investment sponsors or third-party administrators that supply NAV (or its equivalent) per share used as a practical expedient. The valuations obtained from brokers and third-party commercial pricing services are non-binding. These valuations are reviewed on a monthly or quarterly basis depending on the entity and its underlying investments. Procedures include, but are not limited to, a review of underlying fund investor reports, review of top and worst performing funds requiring further scrutiny, review of variance from prior periods and review of variance from benchmarks, where applicable. In addition, the Company considers both macro and fund specific events that may impact the latest NAV supplied and determines if further adjustments of value should be made. Such changes, if any, are subject to senior management review.

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.

Cash and Cash Equivalents

The carrying amounts for cash reflect the assets’ fair values. The fair value for cash equivalents is determined based on quoted market prices. These assets are classified as Level 1.

CLOs

Corporate loans: Corporate loan investments, which comprise the majority of consolidated CLO portfolio collateral, are senior secured corporate loans maturing at various dates between 2020 and 2028, paying interest at LIBOR , EURIBOR or PRIME plus a spread of up to 10.0%. As of December 31, 2019 and 2018, the unpaid principal balance exceeded the fair value of the corporate loans by approximately $18 and $13, respectively. Less than 1.0% of the collateral assets were in default as of December 31, 2019 and 2018.

The fair values for corporate loans are determined using independent commercial pricing services. Fair value measurement based on pricing services may be classified in Level 2 or Level 3 depending on the type, complexity, observability and liquidity of the asset being measured. The inputs used by independent commercial pricing services, such as benchmark yields and credit risk adjustments, are those that are derived principally from, or corroborated by, observable market data. Hence, the fair value measurement of corporate loans priced by independent pricing service providers is classified within Level 2 of the fair value hierarchy. In addition, there are assets held with CLO portfolios that represent senior level debt of other third party CLOs. These CLO investments are classified within Level 3 of the fair value hierarchy. See description of fair value process for CLO notes below.

CLO notes: The CLO notes are backed by a diversified loan portfolio consisting primarily of senior secured floating rate leveraged loans. Repayment risk is segmented into tranches with credit ratings of these tranches reflecting both the credit quality of underlying collateral as well as how much protection a given tranche is afforded by tranches that are subordinate to it. The most subordinated tranche bears the first loss and receives the residual payments, if any. The interest rates are generally variable rates based on LIBOR plus a pre-defined spread, which varies from 0.7% for the more senior tranches to 5.4% for the more subordinated tranches. CLO notes mature in 2026 and have a weighted average maturity of 6.6 years as of December 31, 2019. The investors in this debt are not affiliated with the Company and have no recourse to the general credit of the Company for this debt.

The fair values of the CLO notes are measured based on the fair value of the CLO's corporate loans, as the Company uses the measurement alternative available under ASU 2014-13 and determined that the inputs for measuring financial assets are more observable. The CLO notes are classified within Level 2 of the fair value hierarchy, consistent with the classification of the majority of the CLO financial assets.

The Company reviews the detailed prices, including comparisons to prior periods, for reasonableness. The Company utilizes a formal pricing challenge process to request a review of any price during which time the vendor examines its assumptions and relevant market inputs to determine if a price change is warranted.

The following narrative indicates the sensitivity of inputs:


•	Default Rate: An increase (decrease) in the expected default rate would likely increase (decrease) the discount margin (increase risk premium) used to value the CLO investments and CLO notes and, as a result, would potentially decrease the value of the CLO investments and CLO notes.


•	Recovery Rate: A decrease (increase) in the expected recovery of defaulted assets would potentially decrease (increase) the valuation of CLO investments and CLO notes.


•	Prepayment Rate: A decrease (increase) in the expected rate of collateral prepayments would potentially decrease (increase) the valuation of CLO investments and CLO notes as the expected weighted average life ("WAL") would increase (decrease).


•	Discount Margin (spread over LIBOR): An increase (decrease) in the discount margin used to value the CLO investments and CLO notes and would decrease (increase) the value of the CLO investments and CLO notes.

Private Equity Funds

As prescribed in ASC Topic 820, the unit of account for these investments is the interest in the investee fund. The Company owns an undivided interest in the fund portfolio and does not have the ability to dispose of individual assets and liabilities in the fund portfolio. Rather, the Company would be required to redeem or dispose of its entire interest in the investee fund. There is no current active market for interests in underlying private equity funds.

Valuation is generally based on the valuations provided by the fund's general partner or investment manager. The valuations typically reflect the fair value of the Company's capital account balance of each fund investment, including unrealized capital gains (losses), as reported in the financial statements of the respective investee fund as of the respective year end or the latest available date. In circumstances where fair values are not provided, the Company seeks to determine the fair value of fund investments based upon other information provided by the fund's general partner or investment manager or from other sources.

The fair value of securities received in-kind from fund investments is determined based on the restrictions around the securities.


•	Unrestricted, publicly traded securities are valued at the closing public market price on the reporting date;


•	Restricted, publicly traded securities may be valued at a discount from the closing public market price on the reporting date, depending on the circumstances; and


•	Privately held securities are valued by the directors/general partner of the investee fund, based on a variety of factors, including the price of recent transactions in the company's securities and the company's earnings, revenue and book value.

In the case of direct investments or co-investments in private equity companies, the Company initially recognizes investments at cost and subsequently adjusts investments to fair value. On a quarterly basis, the Company reviews the general partner or lead investor's valuation of the investee company, taking into account other available information, such as indications of a market value through subsequent issues of capital or transactions between third parties, performance of the investee company during the period and public, comparable companies' analysis, where appropriate.

Investments in these funds typically may not be fully redeemed at NAV within 90 days because of inherent restriction on near term redemptions.

As of December 31, 2019 and 2018, certain private equity funds maintained term loans and revolving lines of credit of $669 and $753, respectively. The term loans renew every three years and the revolving lines of credit renew annually; all loans bear interest at LIBOR/EURIBOR plus 150 - 200 bps. The lines of credit are used for funding transactions before capital is called from investors, as well as for the financing of certain purchases. As of December 31, 2019 and 2018, outstanding borrowings amount to $602 and $584, respectively.

On February 1, 2018, Pomona Investment Fund entered into a three-year revolving credit agreement with Credit Suisse. The size of the facility is $25; the loan bears interest at LIBOR plus 325 bps and has a commitment fee of 160 bps. There was $3 of outstanding borrowing as of December 31, 2019.

The borrowings are reflected in Liabilities related to consolidated investment entities - other liabilities on the Company's Consolidated Balance Sheets. The borrowings are carried at an amount equal to the unpaid principal balance.

The following table summarizes the fair value hierarchy levels of consolidated investment entities as of December 31, 2019:



	Level 1		Level 2		Level 3		NAV		Total
Assets
VIEs
Cash and cash equivalents	$	68	$	—	$	—	$	—	$	68
Corporate loans, at fair value using the fair value option	—		513		—		—		513
Limited partnerships/corporations, at fair value	—		—		—		1,470		1,470
VOEs
Limited partnerships/corporations, at fair value	—		—		—		162		162
Total assets, at fair value	$	68	$	513	$	—	$	1,632	$	2,213
Liabilities
VIEs
CLO notes, at fair value using the fair value option	$	—	$	474	$	—	$	—	$	474
Total liabilities, at fair value	$	—	$	474	$	—	$	—	$	474

The following table summarizes the fair value hierarchy levels of consolidated investment entities as of December 31, 2018:



	Level 1		Level 2		Level 3		NAV		Total
Assets
VIEs
Cash and cash equivalents	$	331	$	—	$	—	$	—	$	331
Corporate loans, at fair value using the fair value option	—		542		—		—		542
Limited partnerships/corporations, at fair value	—		—		—		1,313		1,313
VOEs
Limited partnerships/corporations, at fair value	—		—		—		108		108
Total assets, at fair value	$	331	$	542	$	—	$	1,421	$	2,294
Liabilities
VIEs
CLO notes, at fair value using the fair value option	$	—	$	540	$	—	$	—	$	540
Total liabilities, at fair value	$	—	$	540	$	—	$	—	$	540

Transfers of investments out of Level 3 and into Level 2 or Level 1, if any, are recorded as of the beginning of the period in which the transfer occurred. For the years ended December 31, 2019 and 2018, there were no transfers in or out of Level 3 or transfers between Level 1 and Level 2.

Deconsolidation of Certain Investment Entities

The Company determined it was no longer the primary beneficiary of previously consolidated CLOs due to a reduction in the Company’s investment in relation to the CLOs' equity. This caused a reduction in the Company's obligation to absorb losses and rights to receive benefits of the CLO that could potentially be significant to the CLO. As a result of this determination, the Company deconsolidated one and three investment entities during the years ended December 31, 2019 and December 31, 2018, respectively.

Nonconsolidated VIEs

CLOs

In addition to the consolidated CLOs, the Company also holds variable interest in certain CLOs that are not consolidated as it has been determined that the Company is not the primary beneficiary. With these CLOs , the Company serves as the investment manager and receives investment management fees and contingent performance fees. Generally, the Company does not hold any interest in the nonconsolidated CLOs but if it does, such ownership has been deemed to be insignificant. The Company has not provided, and is not obligated to provide, any financial or other support to these entities.

The Company reviews its assumptions on a periodic basis to determine if conditions have changed such that the projection of these contingent fees becomes significant enough to reconsider the Company's consolidation status as variable interest holder. As of December 31, 2019 and 2018, the Company held $377 and $468 ownership interests, respectively, in unconsolidated CLOs on a continuing basis.

Limited Partnerships

The Company manages or holds investments in certain private equity funds and hedge funds. With these entities, the Company serves as the investment manager and is entitled to receive at-market investment management fees and at-market contingent performance fees. The Company does not consolidate any of these investment funds for which it is not considered to be the primary beneficiary.

In addition, the Company does not consolidate the funds in which its involvement takes a form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner's interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with power to direct the activities of the fund.

The following table presents the carrying amounts on a continuing basis of the variable interests in VIEs in which the Company concluded that it holds a variable interest, but is not the primary beneficiary as of the dates indicated. The Company determines its maximum exposure to loss to be: (i) the amount invested in the debt or equity of the VIE and (ii) other commitments and guarantees to the VIE.



Variable Interests on the Consolidated Balance Sheet
	December 31, 2019				December 31, 2018
	Carrying Amount		Maximum exposure to loss		Carrying Amount		Maximum exposure to loss
Fixed maturities, available for sale	$	377	$	377	$	466	$	466
Limited partnership/corporations	1,290		1,290		982		982

Securitizations

The Company invests in various tranches of securitization entities, including RMBS, 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 (excluding Consolidated Investment Entities) Note to these Consolidated Financial Statements and unrealized capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS which are accounted for under the FVO whose change in fair value is reflected in Other net realized gains (losses) in the Consolidated Statements of Operations. The Company’s maximum exposure to loss on these structured investments is limited to the amount of its investment. Refer to the Investments (excluding Consolidated Investment Entities) Note to these Consolidated Financial Statements for details regarding the carrying amounts and classifications of these assets.

Restructuring

12 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring

Organizational Restructuring

As a result of the closing of the 2018 Transaction, the decision to cease new sales following the strategic review of the Company’s Individual Life business and the additional cost savings targets announced in November 2018, the Company has undertaken restructuring efforts to execute the 2018 Transaction, reduce stranded expenses, as well as improve operational efficiency, strengthen technology capabilities and centralize certain sales, operations and investment management activities ("Organizational Restructuring"). The initiatives associated with the closing of the 2018 Transaction and the decision to cease new sales following the strategic review of the Company’s Individual Life business concluded during 2019.

These activities have resulted in recognition of severance and organizational transition costs and are reflected in Operating expenses in the Consolidated Statements of Operations, but excluded from Adjusted operating earnings before income taxes. These expenses are classified as a component of Other adjustments to Income (loss) from continuing operations before income taxes and consequently are not included in the adjusted operating results of the Company's segments. For the years ended December 31, 2019 and 2018, the Company incurred Organizational Restructuring expenses of $201 and $49 and associated with continuing operations.

The summary below presents Organizational Restructuring expenses, pre-tax, by type of costs incurred, for the periods indicated:



	Years Ended December 31,						Cumulative Amounts Incurred to Date
	2019		2018		2017		Cumulative Amounts Incurred to Date
Severance benefits	$	39	$	15	$	4	$	58
Organizational transition costs	162		40		—		202
Total restructuring expenses	$	201	$	55	$	4	$	260

Including the expense of $201 for the year ended December 31, 2019, the aggregate amount of additional Organizational Restructuring expenses expected is in the range of $250 to $300. The Company anticipates that these costs, which will include severance, organizational transition costs incurred to reorganize operations and other costs such as contract terminations and asset write-offs, will occur at least through the end of 2020.

The following table presents the accrued liability associated with Organizational Restructuring expenses as of December 31, 2019:



	Severance Benefits			Organizational Transition Costs			Total
Accrued liability as of January 1, 2019	$	12		$	9		$	21
Provision	39			162			201
Payments	(21		)	(146		)	(167		)
Accrued liability as of December 31, 2019	$	30		$	25		$	55

Pursuant to the Individual Life Transaction, the Company will divest or dissolve five regulated insurance entities, including its life companies domiciled in Colorado and Indiana, and captive entities domiciled in Arizona and Missouri. The Company will also divest Voya America Equities LLC, a regulated broker-dealer, and transfer or cease usage of a substantial number of administrative systems. The Company will undertake further restructuring efforts to reduce stranded expenses associated with its Individual Life business as well as its corporate and shared services functions. Through the closing of the Individual Life Transaction, the Company anticipates incurring additional restructuring expenses directly related to the disposition. These collective costs, which include severance, transition and other costs, cannot currently be estimated but could be material. Refer to the Business Held for Sale and Discontinued Operation Note to these Consolidated Financial statement for further information.

2016 Restructuring

In 2016, the Company began implementing a series of initiatives designed to make it a simpler, more agile company able to deliver an enhanced customer experience ("2016 Restructuring"). These initiatives include an increasing emphasis on less capital-intensive products and the achievement of operational synergies. Substantially all of the initiatives associated with the 2016 Restructuring program concluded at the end of 2018.

Total 2016 Restructuring expenses are reflected in Operating expenses in the Consolidated Statements of Operations, but excluded from Adjusted operating earnings before income taxes. These expenses are classified as a component of Other adjustments to Income (loss) from continuing operations before income taxes and consequently are not included in the adjusted operating results of the Company's segments.

The summary below presents 2016 Restructuring expense, pre-tax, by type of costs incurred, for the periods indicated:



	Years Ended December 31,						Cumulative Amounts Incurred to Date⁽¹⁾
	2019		2018		2017		Cumulative Amounts Incurred to Date⁽¹⁾
Severance benefits	$	—	$	9	$	34	$	69
Asset write-off costs	—		1		16		17
Transition costs	—		7		17		24
Other costs	8		13		15		44
Total restructuring expenses	$	8	$	30	$	82	$	154

⁽¹⁾Cumulative amounts incurred to date include $26 of severance benefits and $8 of other costs incurred during the year ended December 31, 2016.

The following table presents the accrued liability associated with 2016 Restructuring expenses as of December 31, 2019:



	Severance Benefits			Transition Costs			Other Costs			Total
Accrued liability as of January 1, 2019	$	8		$	14		$	2		$	24
Provision	—			—			8			8
Payments	(4		)	(6		)	(10		)	(20		)
Accrued liability as of December 31, 2019	$	4		$	8		$	—		$	12

Segments

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Segments

On December 18, 2019, the Company entered into the Resolution MTA with Resolution Life US to sell several of its subsidiaries and the related Individual Life and fixed and variable annuities businesses within these subsidiaries. Additionally, on June 1, 2018, the Company consummated a series of transactions pursuant to a MTA (the "2018 MTA") to sell substantially all of its fixed and fixed indexed annuities businesses. See the Business Held for Sale and Discontinued Operations Note to these Consolidated Financial Statements. As such, the Company will no longer report its Life Insurance business as a segment. The Company revised prior period information to conform to current period presentation.

The Company provides its principal products and services through three segments: Retirement, Investment Management and Employee Benefits. These segments reflect the manner by which the Company’s chief operating decision maker views and manages the business. A brief description of these segments follows.

The Retirement segment provides tax-deferred, employer-sponsored retirement savings plans and administrative services to corporate, education, healthcare, other non-profit and government entities, and stable value products to institutional clients where the Company may or may not be providing defined contribution products and services, as well as individual retirement accounts ("IRAs"), other retail financial products and comprehensive financial services to individual customers.

The Investment Management segment provides investment products and retirement solutions across a broad range of geographies, market sectors, investment styles and capitalization spectrums. Products and services are offered to institutional clients, including public, corporate and union retirement plans, endowments and foundations and insurance companies, as well as individual investors and general accounts of the Company's insurance subsidiaries and are distributed through the Company's direct sales force, consultant channel and intermediary partners (such as banks, broker-dealers and independent financial advisers).

The Employee Benefits segment provides stop loss, group life, voluntary employee-paid and disability products to mid-sized and large businesses.

The Company includes in Corporate the following corporate and business activities:

•

corporate operations, corporate level assets and financial obligations; financing and interest expenses; dividend payments made to preferred shareholders; stranded costs and other items not allocated or directly related to the Company's segments, including items such as expenses of its Organizational Restructuring and 2016 Restructuring programs described in the Restructuring Note of these Consolidated Financial Statements, certain expenses and liabilities of employee benefit plans, certain adjustments to short-term and long-term incentive accruals and intercompany eliminations;


•	investment income on assets backing surplus in excess of amounts held at the segment level;


•	revenues and expenses related to a run-off block of guaranteed investment contracts ("GICs") and funding agreements as well as Residual Runoff Business.

Measurement

Adjusted operating earnings before income taxes. The Company believes that Adjusted operating earnings before income taxes provides a meaningful measure of its business and segment performance and enhances the understanding of the Company’s financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions or other factors. The Company uses the same accounting policies and procedures to measure segment Adjusted operating earnings before income taxes as it does for the directly comparable U.S. GAAP measure, which is Income (loss) from continuing operations before income taxes. Adjusted operating earnings before income taxes does not replace Income (loss) from continuing operations before income taxes as a measure of the Company’s consolidated results of operations. Therefore, the Company believes that it is useful to evaluate both Income (loss) from continuing operations before income taxes and Adjusted operating earnings before income taxes when reviewing the Company’s financial and operating performance. Each segment’s Adjusted operating earnings before income taxes is calculated by adjusting Income (loss) from continuing operations before income taxes for the following items:

•

Net investment gains (losses), net of related amortization of DAC, VOBA, sales inducements and unearned revenue, which are significantly influenced by economic and market conditions, including interest rates and credit spreads, and are not indicative of normal operations. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the FVO unrelated to the implied loan-backed security income recognition for certain mortgage-backed obligations and changes in the fair value of derivative instruments, excluding realized gains (losses) associated with swap settlements and accrued interest;

•

Net guaranteed benefit hedging gains (losses), which are significantly influenced by economic and market conditions and are not indicative of normal operations, include changes in the fair value of derivatives related to guaranteed benefits, net of related reserve increases (decreases) and net of related amortization of DAC, VOBA and sales inducements, less the estimated cost of these benefits. The estimated cost, which is reflected in adjusted operating earnings, reflects the expected cost of these benefits if markets perform in line with the Company's long-term expectations and includes the cost of hedging. Other derivative and reserve changes related to guaranteed benefits are excluded from adjusted operating earnings, including the impacts related to changes in the Company's nonperformance spread;

•

Income (loss) related to businesses exited or to be exited through reinsurance or divestment, which includes gains and (losses) associated with transactions to exit blocks of business within continuing operations (including net investment gains (losses) on securities sold and expenses directly related to these transactions) and residual run-off activity (including an insignificant number of Individual Life, Annuities and CBVA policies that were not part of the Individual Life and 2018 Transactions). Excluding this activity, which also includes amortization of intangible assets related to businesses exited or to be exited, better reveals trends in the Company's core business and more closely aligns Adjusted operating earnings before income taxes with how the Company manages its segments;

•

Income (loss) attributable to noncontrolling interest represents the interest of shareholders, other than those of the Company, in consolidated entities. Income (loss) attributable to noncontrolling interest represents such shareholders' interests in the gains and (losses) of those entities, or the attribution of results from consolidated VIEs or VOEs to which the Company is not economically entitled;


•	Dividend payments made to preferred shareholders are included as reductions to reflect the Adjusted operating earnings

that is available to common shareholders;


•	Income (loss) related to early extinguishment of debt, which includes losses incurred as a result of transactions where the Company repurchases outstanding principal amounts of debt; these losses are excluded from Adjusted operating earnings before income taxes since the outcome of decisions to restructure debt are not indicative of normal operations;


•	Impairment of goodwill, value of management contract rights and value of customer relationships acquired, which includes losses as a result of impairment analysis; these represent losses related to infrequent events and do not reflect normal, cash-settled expenses;

•

Immediate recognition of net actuarial gains (losses) related to the Company's pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period. The Company immediately recognizes actuarial gains and (losses) related to pension and other postretirement benefit obligations and gains and losses from plan adjustments and curtailments. These amounts do not reflect normal, cash-settled expenses and are not indicative of current Operating expense fundamentals; and

•

Other items not indicative of normal operations or performance of the Company's segments or related to events such as capital or organizational restructurings undertaken to achieve long-term economic benefits, including certain costs related to debt and equity offerings, acquisition / merger integration expenses, severance and other expenses associated with such activities. These items vary widely in timing, scope and frequency between periods as well as between companies to which the Company is compared. Accordingly, the Company adjusts for these items as management believes that these items distort the ability to make a meaningful evaluation of the current and future performance of the Company's segments.

The summary below reconciles Adjusted operating earnings before income taxes for the segments to Income (loss) from continuing operations before income taxes for the periods indicated:



	Year Ended December 31,
	2019			2018			2017
Income (loss) from continuing operations before income taxes	$	560		$	528		$	385
Less Adjustments:
Net investment gains (losses) and related charges and adjustments	25			(124		)	(112		)
Net guaranteed benefit hedging gains (losses) and related charges and adjustments	(14		)	62			46
Income (loss) related to businesses exited or to be exited through reinsurance or divestment	98			(40		)	59
Income (loss) attributable to noncontrolling interest	50			145			217
Income (loss) related to early extinguishment of debt	(12		)	(40		)	(4		)
Immediate recognition of net actuarial gains (losses) related to pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments	3			(47		)	(16		)
Dividend payments made to preferred shareholders	28			—			—
Other adjustments	(209		)	(79		)	(97		)
Total adjustments to income (loss) from continuing operations	(31		)	(123		)	93

Adjusted operating earnings before income taxes by segment:
Retirement	$	588		$	701		$	456
Investment Management	180			205			248
Employee Benefits	199			160			127
Corporate	(376		)	(415		)	(539		)
Total	$	591		$	651		$	292

Adjusted operating revenues is a measure of the Company's segment revenues. Each segment's Adjusted operating revenues are calculated by adjusting Total revenues to exclude the following items:

•

Net investment gains (losses) and related charges and adjustments, which are significantly influenced by economic and market conditions, including interest rates and credit spreads, and are not indicative of normal operations. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the FVO unrelated to the implied loan-backed security income recognition for certain mortgage-backed obligations and changes in the fair value of derivative instruments, excluding realized gains (losses) associated with swap settlements and accrued interest. These are net of related amortization of unearned revenue;

•

Gain (loss) on change in fair value of derivatives related to guaranteed benefits, which is significantly influenced by economic and market conditions and not indicative of normal operations, includes changes in the fair value of derivatives related to guaranteed benefits, less the estimated cost of these benefits. The estimated cost, which is reflected in Adjusted operating revenues, reflects the expected cost of these benefits if markets perform in line with the Company's long-term expectations and includes the cost of hedging. Other derivative and reserve changes related to guaranteed benefits are excluded from Adjusted operating revenues, including the impacts related to changes in the Company's nonperformance spread;

•

Revenues related to businesses exited or to be exited through reinsurance or divestment, which includes revenues associated with transactions to exit blocks of business within continuing operations (including net investment gains (losses) on securities sold related to these transactions) and residual run-off activity (including an insignificant number of Individual Life, Annuities and CBVA policies that were not part of the Individual Life and 2018 Transactions). Excluding this activity better reveals trends in the Company's core business and more closely aligns Adjusted operating revenues with how the Company manages its segments;


•	Revenues attributable to noncontrolling interest represents the interests of shareholders, other than those of the Company, in consolidated entities. Revenues attributable to noncontrolling interest represents such shareholders' interests in the revenues of those entities, or the attribution of results from consolidated VIEs or VOEs to which the Company is not economically entitled; and


•	Other adjustments to Total revenues primarily reflect fee income earned by the Company's broker-dealers for sales of non-proprietary products, which are reflected net of commission expense in the Company's segments’ operating revenues, other items where the income is passed on to third parties and the elimination of intercompany investment expenses included in operating revenues.

The summary below reconciles Adjusted operating revenues for the segments to Total revenues for the periods indicated:



	Year Ended December 31,
	2019			2018			2017
Total revenues	$	7,476		$	7,163		$	7,229

Adjustments:
Net realized investment gains (losses) and related charges and adjustments	18			(148		)	(132		)
Gain (loss) on change in fair value of derivatives related to guaranteed benefits	(13		)	63			46
Revenues related to businesses exited or to be exited through reinsurance or divestment	1,531			1,446			1,618
Revenues attributable to noncontrolling interest	109			214			321
Other adjustments	321			238			193
Total adjustments to revenues	1,966			1,813			2,046

Adjusted operating revenues by segment:
Retirement	$	2,712		$	2,727		$	2,538
Investment Management	675			683			731
Employee Benefits	2,026			1,849			1,767
Corporate	97			91			147
Total	$	5,510		$	5,350		$	5,183

Other Segment Information

The Investment Management segment revenues include the following intersegment revenues, primarily consisting of asset-based management and administration fees for the periods indicated:



	Year Ended December 31,
	2019		2018		2017
Investment management intersegment revenues	$	104	$	101	$	103

The summary below presents Total assets for the Company’s segments as of the dates indicated:



	December 31, 2019		December 31, 2018
Retirement	$	118,024	$	104,995
Investment Management	745		690
Employee Benefits	3,117		2,560
Corporate	25,206		25,185
Total assets, before consolidation⁽¹⁾	147,092		133,430
Consolidation of investment entities	1,890		1,955
Total assets, excluding assets held for sale	148,982		135,385
Assets held for sale	20,069		20,045
Total assets	$	169,051	$	155,430

⁽¹⁾Total assets, before consolidation includes the Company's direct investments in CIEs prior to consolidation, which are accounted for using the equity method or fair value option.

Condensed Consolidating Financial Information

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Financial Information

The accompanying condensed consolidating financial information has been prepared and presented pursuant to SEC Regulation S-X, Rule 3-10, "Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered" ("Rule 3-10"). The condensed consolidating financial information presents the financial position of Voya Financial, Inc. ("Parent Issuer"), Voya Holdings ("Subsidiary Guarantor") and all other subsidiaries ("Non-Guarantor Subsidiaries") of the Company as of December 31, 2019 and 2018, and their results of operations, comprehensive income and cash flows for the years ended December 31, 2019, 2018 and 2017.

The 5.7% senior notes due 2043, the 3.65% senior notes due 2026, the 4.8% senior notes due 2046, the 3.125% senior notes due 2024 (collectively, the "Senior Notes"), the 5.65% fixed-to-floating rate junior subordinated notes due 2053 and the 4.7% fixed-to-floating junior subordinated notes due 2048 (collectively, the "Junior Subordinated Notes"), each issued by Parent Issuer, are fully and unconditionally guaranteed by Subsidiary Guarantor, a 100% owned subsidiary of Parent Issuer. No other subsidiary of Parent Issuer guarantees the Senior Notes or the Junior Subordinated Notes. Rule 3-10(h) provides that a guarantee is full and unconditional if, when the issuer of a guaranteed security has failed to make a scheduled payment, the guarantor is obligated to make the scheduled payment immediately and, if it does not, any holder of the guaranteed security may immediately bring suit directly against the guarantor for payment of amounts due and payable. In the event that Parent Issuer does not fulfill the guaranteed obligations, any holder of the Senior Notes or the Junior Subordinated Notes may immediately bring a claim against Subsidiary Guarantor for amounts due and payable.

The following condensed consolidating financial information is presented in conformance with the components of the Consolidated Financial Statements. Investments in subsidiaries are accounted for using the equity method for purposes of illustrating the consolidating presentation. Equity in the subsidiaries is therefore reflected in the Parent Issuer's and Subsidiary Guarantor's Investment in subsidiaries and Equity in earnings of subsidiaries. Non-Guarantor Subsidiaries represent all other subsidiaries on a combined basis. The consolidating adjustments presented herein eliminate investments in subsidiaries and intercompany balances and transactions.

Condensed Consolidating Balance Sheet

December 31, 2019



	Parent Issuer		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value	$	5	$	—	$	39,673	$	(15	)	$	39,663
Fixed maturities, at fair value using the fair value option	—		—		2,707		—			2,707
Equity securities, at fair value	—		—		196		—			196
Short-term investments	—		—		68		—			68
Mortgage loans on real estate, net of valuation allowance	—		—		6,878		—			6,878
Policy loans	—		—		776		—			776
Limited partnerships/corporations	4		—		1,286		—			1,290
Derivatives	49		—		267		—			316
Investments in subsidiaries	11,003		8,493		—		(19,496		)	—
Other investments	—		—		385		—			385
Securities pledged	—		—		1,408		—			1,408
Total investments	11,061		8,493		53,644		(19,511		)	53,687
Cash and cash equivalents	212		—		969		—			1,181
Short-term investments under securities loan agreements, including collateral delivered	11		—		1,384		—			1,395
Accrued investment income	—		—		505		—			505
Premium receivable and reinsurance recoverable	—		—		3,732		—			3,732
Deferred policy acquisition costs and Value of business acquired	—		—		2,226		—			2,226
Deferred income taxes	816		39		603		—			1,458
Loans to subsidiaries and affiliates	164		—		69		(233		)	—
Due from subsidiaries and affiliates	2		—		6		(8		)	—
Other assets	7		—		895		—			902
Assets related to consolidated investment entities:
Limited partnerships/corporations, at fair value	—		—		1,632		—			1,632
Cash and cash equivalents	—		—		68		—			68
Corporate loans, at fair value using the fair value option	—		—		513		—			513
Other assets	—		—		13		—			13
Assets held in separate accounts	—		—		81,670		—			81,670
Assets held for sale	—		—		20,069		—			20,069
Total assets	$	12,273	$	8,532	$	167,998	$	(19,752	)	$	169,051

Condensed Consolidating Balance Sheet (Continued)

December 31, 2019



	Parent Issuer		Subsidiary Guarantor			Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Liabilities and Shareholders' Equity:
Future policy benefits	$	—	$	—		$	9,945	$	—		$	9,945
Contract owner account balances	—		—			40,923		—			40,923
Payables under securities loan and repurchase agreements, including collateral held	—		—			1,373		—			1,373
Short-term debt	69		87			78		(233		)	1
Long-term debt	2,669		371			17		(15		)	3,042
Derivatives	50		—			353		—			403
Pension and other postretirement provisions	—		—			468		—			468
Current income taxes	28		(17		)	16		—			27
Due to subsidiaries and affiliates	4		—			2		(6		)	—
Other liabilities	45		10			1,292		(2		)	1,345
Liabilities related to consolidated investment entities:
Collateralized loan obligations notes, at fair value using the fair value option	—		—			474		—			474
Other liabilities	—		—			652		—			652
Liabilities related to separate accounts	—		—			81,670		—			81,670
Liabilities held for sale	—		—			18,498		—			18,498
Total liabilities	2,865		451			155,761		(256		)	158,821
Shareholders' equity:
Total Voya Financial, Inc. shareholders' equity	9,408		8,081			11,415		(19,496		)	9,408
Noncontrolling interest	—		—			822		—			822
Total shareholders' equity	9,408		8,081			12,237		(19,496		)	10,230
Total liabilities and shareholders' equity	$	12,273	$	8,532		$	167,998	$	(19,752	)	$	169,051

Condensed Consolidating Balance Sheet

December 31, 2018



	Parent Issuer			Subsidiary Guarantor		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Assets:
Investments:
Fixed maturities, available-for-sale, at fair value	$	—		$	—	$	36,912	$	(15	)	$	36,897
Fixed maturities, at fair value using the fair value option	—			—		2,233		—			2,233
Equity securities, at fair value	99			—		148		—			247
Short-term investments	—			—		126		—			126
Mortgage loans on real estate, net of valuation allowance	—			—		7,281		—			7,281
Policy loans	—			—		814		—			814
Limited partnerships/corporations	—			—		982		—			982
Derivatives	39			—		155		—			194
Investments in subsidiaries	10,099			7,060		—		(17,159		)	—
Other investments	—			—		379		—			379
Securities pledged	—			—		1,462		—			1,462
Total investments	10,237			7,060		50,492		(17,174		)	50,615
Cash and cash equivalents	209			2		1,026		—			1,237
Short-term investments under securities loan agreements, including collateral delivered	11			—		1,282		—			1,293
Accrued investment income	—			—		529		—			529
Premium receivable and reinsurance recoverable	—			—		3,843		—			3,843
Deferred policy acquisition costs and Value of business acquired	—			—		2,973		—			2,973
Current income taxes	(37		)	26		28		—			17
Deferred income taxes	553			22		1,035		—			1,610
Loans to subsidiaries and affiliates	79			—		4		(83		)	—
Due from subsidiaries and affiliates	2			—		3		(5		)	—
Other assets	13			—		1,014		—			1,027
Assets related to consolidated investment entities:
Limited partnerships/corporations, at fair value	—			—		1,421		—			1,421
Cash and cash equivalents	—			—		331		—			331
Corporate loans, at fair value using the fair value option	—			—		542		—			542
Other assets	—			—		16		—			16
Assets held in separate accounts	—			—		69,931		—			69,931
Assets held for sale	—			—		20,045		—			20,045
Total assets	$	11,067		$	7,110	$	154,515	$	(17,262	)	$	155,430

Condensed Consolidating Balance Sheet (Continued)

December 31, 2018



	Parent Issuer		Subsidiary Guarantor		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Liabilities and Shareholders' Equity:
Future policy benefits	$	—	$	—	$	9,587	$	—		$	9,587
Contract owner account balances	—		—		41,183		—			41,183
Payables under securities loan and repurchase agreements, including collateral held	—		—		1,366		—			1,366
Short-term debt	4		—		80		(83		)	1
Long-term debt	2,763		371		17		(15		)	3,136
Derivatives	39		—		125		—			164
Pension and other postretirement provisions	—		—		551		—			551
Due to subsidiaries and affiliates	1		—		2		(3		)	—
Other liabilities	47		55		1,275		(2		)	1,375
Liabilities related to consolidated investment entities:
Collateralized loan obligations notes, at fair value using the fair value option	—		—		540		—			540
Other liabilities	—		—		688		—			688
Liabilities related to separate accounts	—		—		69,931		—			69,931
Liabilities held for sale	—		—		17,903		—			17,903
Total liabilities	2,854		426		143,248		(103		)	146,425
Shareholders' equity:
Total Voya Financial, Inc. shareholders' equity	8,213		6,684		10,475		(17,159		)	8,213
Noncontrolling interest	—		—		792		—			792
Total shareholders' equity	8,213		6,684		11,267		(17,159		)	9,005
Total liabilities and shareholders' equity	$	11,067	$	7,110	$	154,515	$	(17,262	)	$	155,430

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2019



	Parent Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenues:
Net investment income	$	39		$	—		$	2,765		$	(12	)	$	2,792
Fee income	—			—			1,969			—			1,969
Premiums	—			—			2,273			—			2,273
Net realized capital gains (losses):
Total other-than-temporary impairments	—			—			(65		)	—			(65		)
Less: Portion of other-than-temporary impairments recognized in Other comprehensive income (loss)	—			—			(1		)	—			(1		)
Net other-than-temporary impairments recognized in earnings	—			—			(64		)	—			(64		)
Other net realized capital gains (losses)	(1		)	—			(101		)	—			(102		)
Total net realized capital gains (losses)	(1		)	—			(165		)	—			(166		)
Other revenue	—			—			465			—			465
Income (loss) related to consolidated investment entities:
Net investment income	—			—			143			—			143
Total revenues	38			—			7,450			(12		)	7,476
Benefits and expenses:
Policyholder benefits	—			—			2,583			—			2,583
Interest credited to contract owner account balances	—			—			1,167			—			1,167
Operating expenses	12			—			2,734			—			2,746
Net amortization of Deferred policy acquisition costs and Value of business acquired	—			—			199			—			199
Interest expense	151			29			8			(12		)	176
Operating expenses related to consolidated investment entities:
Interest expense	—			—			38			—			38
Other expense	—			—			7			—			7
Total benefits and expenses	163			29			6,736			(12		)	6,916
Income (loss) from continuing operations before income taxes	(125		)	(29		)	714			—			560
Income tax expense (benefit)	(277		)	(27		)	99			—			(205		)
Income (loss) from continuing operations	152			(2		)	615			—			765
Income (loss) from discontinued operations, net of tax	—			(83		)	(983		)	—			(1,066		)
Net income (loss) before equity in earnings (losses) of unconsolidated affiliates	152			(85		)	(368		)	—			(301		)
Equity in earnings (losses) of subsidiaries, net of tax	(503		)	431			—			72			—
Net income (loss)	(351		)	346			(368		)	72			(301		)
Less: Net income (loss) attributable to noncontrolling interest	—			—			50			—			50
Net income (loss) available to Voya Financial, Inc.	(351		)	346			(418		)	72			(351		)
Less: Preferred stock dividends	28			—			—			—			28
Net income (loss) available to Voya Financial, Inc.'s common shareholders	$	(379	)	$	346		$	(418	)	$	72		$	(379	)

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2018



	Parent Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenues:
Net investment income	$	1		$	1		$	2,676		$	(9	)	$	2,669
Fee income	—			—			1,982			—			1,982
Premiums	—			—			2,132			—			2,132
Net realized capital gains (losses):
Total other-than-temporary impairments	—			—			(27		)	—			(27		)
Less: Portion of other-than-temporary impairments recognized in Other comprehensive income (loss)	—			—			1			—			1
Net other-than-temporary impairments recognized in earnings	—			—			(28		)	—			(28		)
Other net realized capital gains (losses)	—			—			(327		)	—			(327		)
Total net realized capital gains (losses)	—			—			(355		)	—			(355		)
Other revenue	(5		)	—			448			—			443
Income (loss) related to consolidated investment entities:
Net investment income	—			—			292			—			292
Total revenues	(4		)	1			7,175			(9		)	7,163
Benefits and expenses:
Policyholder benefits	—			—			2,364			—			2,364
Interest credited to contract owner account balances	—			—			1,162			—			1,162
Operating expenses	11			—			2,595			—			2,606
Net amortization of Deferred policy acquisition costs and Value of business acquired	—			—			233			—			233
Interest expense	175			53			2			(9		)	221
Operating expenses related to consolidated investment entities:
Interest expense	—			—			41			—			41
Other expense	—			—			8			—			8
Total benefits and expenses	186			53			6,405			(9		)	6,635
Income (loss) from continuing operations before income taxes	(190		)	(52		)	770			—			528
Income tax expense (benefit)	—			(24		)	400			(339		)	37
Income (loss) from continuing operations	(190		)	(28		)	370			339			491
Income (loss) from discontinued operations, net of tax	—			—			529			—			529
Net income (loss) before equity in earnings (losses) of unconsolidated affiliates	(190		)	(28		)	899			339			1,020
Equity in earnings (losses) of subsidiaries, net of tax	1,065			1,615			—			(2,680		)	—
Net income (loss)	875			1,587			899			(2,341		)	1,020
Less: Net income (loss) attributable to noncontrolling interest	—			—			145			—			145
Net income (loss) available to Voya Financial, Inc.	875			1,587			754			(2,341		)	875
Less: Preferred stock dividends	—			—			—			—			—
Net income (loss) available to Voya Financial, Inc.'s common shareholders	$	875		$	1,587		$	754		$	(2,341	)	$	875

Condensed Consolidating Statement of Operations

For the Year Ended December 31, 2017



	Parent Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Revenues:
Net investment income	$	33		$	—		$	2,621		$	(13	)	$	2,641
Fee income	—			—			1,889			—			1,889
Premiums	—			—			2,097			—			2,097
Net realized capital gains (losses):
Total other-than-temporary impairments	—			—			(29		)	—			(29		)
Less: Portion of other-than-temporary impairments recognized in Other comprehensive income (loss)	—			—			(9		)	—			(9		)
Net other-than-temporary impairments recognized in earnings	—			—			(20		)	—			(20		)
Other net realized capital gains (losses)	—			—			(189		)	—			(189		)
Total net realized capital gains (losses)	—			—			(209		)	—			(209		)
Other revenue	8			1			370			—			379
Income (loss) related to consolidated investment entities:
Net investment income	—			—			432			—			432
Total revenues	41			1			7,200			(13		)	7,229
Benefits and expenses:
Policyholder benefits	—			—			2,422			—			2,422
Interest credited to contract owner account balances	—			—			1,236			—			1,236
Operating expenses	9			—			2,553			—			2,562
Net amortization of Deferred policy acquisition costs and Value of business acquired	—			—			353			—			353
Interest expense	155			37			5			(13		)	184
Operating expenses related to consolidated investment entities:
Interest expense	—			—			80			—			80
Other expense	—			—			7			—			7
Total benefits and expenses	164			37			6,656			(13		)	6,844
Income (loss) from continuing operations before income taxes	(123		)	(36		)	544			—			385
Income tax expense (benefit)	113			3			571			—			687
Income (loss) from continuing operations	(236		)	(39		)	(27		)	—			(302		)
Income (loss) from discontinued operations, net of tax	—			—			(2,473		)	—			(2,473		)
Net income (loss) before equity in earnings (losses) of unconsolidated affiliates	(236		)	(39		)	(2,500		)	—			(2,775		)
Equity in earnings (losses) of subsidiaries, net of tax	(2,756		)	(2,623		)	—			5,379			—
Net income (loss)	(2,992		)	(2,662		)	(2,500		)	5,379			(2,775		)
Less: Net income (loss) attributable to noncontrolling interest	—			—			217			—			217
Net income (loss) available to Voya Financial, Inc.	(2,992		)	(2,662		)	(2,717		)	5,379			(2,992		)
Less: Preferred stock dividends	—			—			—			—			—
Net income (loss) available to Voya Financial, Inc.'s common shareholders	$	(2,992	)	$	(2,662	)	$	(2,717	)	$	5,379		$	(2,992	)

Condensed Consolidating Statement of Comprehensive Income

For the Year Ended December 31, 2019



	Parent Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income (loss)	$	(351	)	$	346		$	(368	)	$	72		$	(301	)
Other comprehensive income (loss), before tax:
Unrealized gains (losses) on securities	3,013			2,290			3,013			(5,303		)	3,013
Other-than-temporary impairments	3			2			3			(5		)	3
Pension and other postretirement benefits liability	(4		)	(2		)	(4		)	6			(4		)
Other comprehensive income (loss), before tax	3,012			2,290			3,012			(5,302		)	3,012
Income tax expense (benefit) related to items of other comprehensive income (loss)	631			479			631			(1,110		)	631
Other comprehensive income (loss), after tax	2,381			1,811			2,381			(4,192		)	2,381
Comprehensive income (loss)	2,030			2,157			2,013			(4,120		)	2,080
Less: Comprehensive income (loss) attributable to noncontrolling interest	—			—			50			—			50
Comprehensive income (loss) attributable to Voya Financial, Inc.	$	2,030		$	2,157		$	1,963		$	(4,120	)	$	2,030

Condensed Consolidating Statement of Comprehensive Income

For the Year Ended December 31, 2018



	Parent Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income (loss)	$	875		$	1,587		$	899		$	(2,341	)	$	1,020
Other comprehensive income (loss), before tax:
Unrealized gains (losses) on securities	(2,810		)	(2,143		)	(2,810		)	4,953			(2,810		)
Other-than-temporary impairments	32			30			32			(62		)	32
Pension and other postretirement benefits liability	(11		)	(2		)	(11		)	13			(11		)
Other comprehensive income (loss), before tax	(2,789		)	(2,115		)	(2,789		)	4,904			(2,789		)
Income tax expense (benefit) related to items of other comprehensive income (loss)	(693		)	(412		)	(694		)	1,106			(693		)
Other comprehensive income (loss), after tax	(2,096		)	(1,703		)	(2,095		)	3,798			(2,096		)
Comprehensive income (loss)	(1,221		)	(116		)	(1,196		)	1,457			(1,076		)
Less: Comprehensive income (loss) attributable to noncontrolling interest	—			—			145			—			145
Comprehensive income (loss) attributable to Voya Financial, Inc.	$	(1,221	)	$	(116	)	$	(1,341	)	$	1,457		$	(1,221	)

Condensed Consolidating Statement of Comprehensive Income

For the Year Ended December 31, 2017



	Parent Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net income (loss)	$	(2,992	)	$	(2,662	)	$	(2,500	)	$	5,379		$	(2,775	)
Other comprehensive income (loss), before tax:
Unrealized gains (losses) on securities	1,191			813			1,191			(2,004		)	1,191
Other-than-temporary impairments	(2		)	(5		)	(2		)	7			(2		)
Pension and other postretirement benefits liability	(15		)	(3		)	(15		)	18			(15		)
Other comprehensive income (loss), before tax	1,174			805			1,174			(1,979		)	1,174
Income tax expense (benefit) related to items of other comprehensive income (loss)	364			258			364			(622		)	364
Other comprehensive income (loss), after tax	810			547			810			(1,357		)	810
Comprehensive income (loss)	(2,182		)	(2,115		)	(1,690		)	4,022			(1,965		)
Less: Comprehensive income (loss) attributable to noncontrolling interest	—			—			217			—			217
Comprehensive income (loss) attributable to Voya Financial, Inc.	$	(2,182	)	$	(2,115	)	$	(1,907	)	$	4,022		$	(2,182	)

Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2019

	Parent Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net cash (used in) provided by operating activities	$	(110	)	$	445		$	1,430		$	(455	)	$	1,310
Cash Flows from Investing Activities:
Proceeds from the sale, maturity, disposal or redemption of:
Fixed maturities	—			—			6,423			—			6,423
Equity securities	156			—			7			—			163
Mortgage loans on real estate	—			—			1,153			—			1,153
Limited partnerships/corporations	—			—			205			—			205
Acquisition of:
Fixed maturities	(5		)	—			(6,450		)	—			(6,455		)
Equity securities	(35		)	—			(20		)	—			(55		)
Mortgage loans on real estate	—			—			(760		)	—			(760		)
Limited partnerships/corporations	(4		)	—			(399		)	—			(403		)
Short-term investments, net	—			—			58			—			58
Derivatives, net	—			—			(29		)	—			(29		)
Sales from consolidated investment entities	—			—			586			—			586
Purchases within consolidated investment entities	—			—			(1,385		)	—			(1,385		)
Maturity (issuance) of short-term intercompany loans, net	(85		)	—			(65		)	150			—
Return of capital contributions and dividends from subsidiaries	1,064			437			—			(1,501		)	—
Capital contributions to subsidiaries	(3		)	(57		)	—			60			—
Collateral received (delivered), net	—			—			(95		)	—			(95		)
Other, net	—			—			(35		)	—			(35		)
Net cash used in investing activities - discontinued operations	—			(128		)	(498		)	—			(626		)
Net cash provided by (used in) investing activities	1,088			252			(1,304		)	(1,291		)	(1,255		)

Condensed Consolidating Statement of Cash Flows (Continued) For the Year Ended December 31, 2019

	Parent Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash Flows from Financing Activities:
Deposits received for investment contracts	—			—			4,383			—			4,383
Maturities and withdrawals from investment contracts	—			—			(5,180		)	—			(5,180		)
Settlements on deposit contracts	—			—			(8		)	—			(8		)
Repayment of debt with maturities of more than three months	(106		)	—			(7		)	—			(113		)
Net (repayments of) proceeds from short-term intercompany loans	65			87			(1		)	(151		)	—
Return of capital contributions and dividends to parent	—			(786		)	(1,171		)	1,957			—
Contributions of capital from parent	—			—			60			(60		)	—
Borrowings of consolidated investment entities	—			—			1,106			—			1,106
Repayments of borrowings of consolidated investment entities	—			—			(903		)	—			(903		)
Contributions from (distributions to) participants in consolidated investment entities	—			—			715			—			715
Proceeds from issuance of common stock, net	3			—			—			—			3
Proceeds from issuance of preferred stock, net	293			—			—			—			293
Share-based compensation	(22		)	—			—			—			(22		)
Common stock acquired - Share repurchase	(1,136		)	—			—			—			(1,136		)
Dividends paid on common stock	(44		)	—			—			—			(44		)
Dividends paid on preferred stock	(28		)	—			—			—			(28		)
Net cash provided by financing activities - discontinued operations	—			—			813			—			813
Net cash (used in) provided by financing activities	(975		)	(699		)	(193		)	1,746			(121		)
Net increase (decrease) in cash and cash equivalents	3			(2		)	(67		)	—			(66		)
Cash and cash equivalents, beginning of period	209			2			1,327			—			1,538
Cash and cash equivalents, end of period	212			—			1,260			—			1,472
Less: Cash and cash equivalents of discontinued operations, end of period	—			—			291			—			291
Cash and cash equivalents of continuing operations, end of period	$	212		$	—		$	969		$	—		$	1,181

Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2018

	Parent Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net cash (used in) provided by operating activities	$	(27	)	$	311		$	1,978		$	(394	)	$	1,868
Cash Flows from Investing Activities:
Proceeds from the sale, maturity, disposal or redemption of:
Fixed maturities	—			—			6,419			—			6,419
Equity securities, available-for-sale	34			—			118			—			152
Mortgage loans on real estate	—			—			895			—			895
Limited partnerships/corporations	—			—			318			—			318
Acquisition of:
Fixed maturities	—			—			(7,513		)	—			(7,513		)
Equity securities, available-for-sale	(36		)	—			(21		)	—			(57		)
Mortgage loans on real estate	—			—			(643		)	—			(643		)
Limited partnerships/corporations	—			—			(318		)	—			(318		)
Short-term investments, net	212			—			61			—			273
Derivatives, net	—			—			72			—			72
Sales from consolidated investments entities	—			—			1,365			—			1,365
Purchases within consolidated investment entities	—			—			(994		)	—			(994		)
Maturity (issuance) of short-term intercompany loans, net	111			—			414			(525		)	—
Return of capital contributions and dividends from subsidiaries	1,155			151			—			(1,306		)	—
Capital contributions to subsidiaries	(55		)	(55		)	—			110			—
Collateral (delivered) received, net	—			—			(28		)	—			(28		)
Other, net	(13		)	1			3			—			(9		)
Net cash provided by (used in) investing activities - discontinued operations	—			331			(545		)	—			(214		)
Net cash provided by (used in) investing activities	1,408			428			(397		)	(1,721		)	(282		)

Condensed Consolidating Statement of Cash Flows (Continued) For the Year Ended December 31, 2018

	Parent Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated

Cash Flows from Financing Activities:
Deposits received for investment contracts	—			—			4,884			—			4,884
Maturities and withdrawals from investment contracts	—			—			(4,799		)	—			(4,799		)
Settlements on deposit contracts	—			—			(10		)	—			(10		)
Proceeds from issuance of debt with maturities of more than three months	350			—			(62		)	—			288
Repayment of debt with maturities of more than three months	(623		)	(87		)	33			—			(677		)
Debt issuance costs	(6		)	—			—			—			(6		)
Net (repayments of) proceeds from short-term intercompany loans	(414		)	(68		)	(43		)	525			—
Return of capital contributions and dividends to parent	—			(638		)	(1,062		)	1,700			—
Contributions of capital from parent	—			55			55			(110		)	—
Borrowings of consolidated investment entities	—			—			773			—			773
Repayments of borrowings of consolidated investment entities	—			—			(656		)	—			(656		)
Contributions from (distributions to) participants in consolidated investment entities	—			—			(166		)	—			(166		)
Proceeds from issuance of common stock, net	3			—			—			—			3
Proceeds from issuance of preferred stock, net	319			—			—			—			319
Share-based compensation	(14		)	—			—			—			(14		)
Common stock acquired - Share repurchase	(1,025		)	—			—			—			(1,025		)
Dividends paid on common stock	(6		)	—			—			—			(6		)
Net cash used in financing activities - discontinued operations	—			—			(672		)	—			(672		)
Net cash (used in) provided by financing activities	(1,416		)	(738		)	(1,725		)	2,115			(1,764		)
Net (decrease) increase in cash and cash equivalents	(35		)	1			(144		)	—			(178		)
Cash and cash equivalents, beginning of period	244			1			1,471			—			1,716
Cash and cash equivalents, end of period	209			2			1,327			—			1,538
Less: Cash and cash equivalents of discontinued operations, end of period	—			—			301			—			301
Cash and cash equivalents of continuing operations, end of period	$	209		$	2		$	1,026		$	—		$	1,237

Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2017

	Parent Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Net cash (used in) provided by operating activities	$	(18	)	$	138		$	1,694		$	(232	)	$	1,582
Cash Flows from Investing Activities:
Proceeds from the sale, maturity, disposal or redemption of:
Fixed maturities	—			—			7,001			—			7,001
Equity securities, available-for-sale	25			—			29			—			54
Mortgage loans on real estate	—			—			851			—			851
Limited partnerships/corporations	—			—			211			—			211
Acquisition of:
Fixed maturities	—			—			(6,445		)	—			(6,445		)
Equity securities, available-for-sale	(34		)	—			(11		)	—			(45		)
Mortgage loans on real estate	—			—			(1,478		)	—			(1,478		)
Limited partnerships/corporations	—			—			(302		)	—			(302		)
Short-term investments, net	—			—			(28		)	—			(28		)
Derivatives, net	—			—			203			—			203
Sales from consolidated investments entities	—			—			2,047			—			2,047
Purchases within consolidated investment entities	—			—			(2,036		)	—			(2,036		)
Issuance of intercompany loans with maturities more than three months	(34		)	—			—			34			—
Maturity of intercompany loans with maturities more than three months	34			—			—			(34		)	—
Maturity (issuance) of short-term intercompany loans, net	87			—			(408		)	321			—
Return of capital contributions and dividends from subsidiaries	1,020			1,024			—			(2,044		)	—
Capital contributions to subsidiaries	(467		)	(47		)	—			514			—
Collateral (delivered) received, net	—			—			(205		)	—			(205		)
Other, net	—			—			5			—			5
Net cash used in investing activities - discontinued operations	—			—			(2,261		)	—			(2,261		)
Net cash provided by (used in) investing activities	631			977			(2,827		)	(1,209		)	(2,428		)

Condensed Consolidating Statement of Cash Flows (Continued) For the Year Ended December 31, 2017

	Parent Issuer			Subsidiary Guarantor			Non-Guarantor Subsidiaries			Consolidating Adjustments			Consolidated
Cash Flows from Financing Activities:
Deposits received for investment contracts	—			—			3,593			—			3,593
Maturities and withdrawals from investment contracts	—			—			(4,763		)	—			(4,763		)
Proceeds from issuance of debt with maturities of more than three months	399			—			(61		)	—			338
Repayment of debt with maturities of more than three months	(494		)	—			33			—			(461		)
Debt issuance costs	(3		)	—			—			—			(3		)
Repayments of intercompany loans with maturities of more than three months	—			—			(34		)	34			—
Proceeds of intercompany loans with maturities of more than three months	—			—			34			(34		)	—
Net proceeds from (repayments of) short-term intercompany loans	408			(143		)	56			(321		)	—
Return of capital contributions and dividends to parent	—			(1,020		)	(1,256		)	2,276			—
Contributions of capital from parent	—			47			467			(514		)	—
Borrowings of consolidated investment entities	—			—			967			—			967
Repayments of borrowings of consolidated investment entities	—			—			(804		)	—			(804		)
Contributions from (distributions to) participants in consolidated investment entities	—			—			449			—			449
Proceeds from issuance of common stock, net	3			—			—			—			3
Share-based compensation	(8		)	—			—			—			(8		)
Common stock acquired - Share repurchase	(923		)	—			—			—			(923		)
Dividends paid on common stock	(8		)	—			—			—			(8		)
Net cash provided by financing activities - discontinued operations	—			—			1,271			—			1,271
Net cash (used in) provided by financing activities	(626		)	(1,116		)	(48		)	1,441			(349		)
Net decrease in cash and cash equivalents	(13		)	(1		)	(1,181		)	—			(1,195		)
Cash and cash equivalents, beginning of period	257			2			2,652			—			2,911
Cash and cash equivalents, end of period	244			1			1,471			—			1,716
Less: Cash and cash equivalents of discontinued operations, end of period	—			—			862			—			862
Cash and cash equivalents of continuing operations, end of period	$	244		$	1		$	609		$	—		$	854

Selected Consolidated Unaudited Quarterly Financial Data

12 Months Ended

Dec. 31, 2019

Quarterly Financial Information Disclosure [Abstract]

Selected Consolidated Unaudited Quarterly Financial Data

The unaudited quarterly results of operations for 2019 and 2018 are summarized in the table below:



	Three Months Ended,
	March 31,			June 30,		September 30,			December 31,
	($ in millions, except per share amounts)
2019
Total revenues	$	1,822		$	1,969	$	1,875		$	1,810
Total benefits and expenses	1,720			1,726		1,726			1,744
Income (loss) from continuing operations before income taxes	102			243		149			66
Income (loss) from discontinued operations, net of tax	(20		)	42		(4		)	(1,084		)
Net income (loss)	73			252		140			(766		)
Less: Net income (loss) attributable to noncontrolling interest	(1		)	26		19			6
Net income (loss) available to Voya Financial, Inc.	74			226		121			(772		)
Less: Preferred stock dividends	10			—		14			4
Net income (loss) available to Voya Financial, Inc.'s common shareholders	64			226		107			(776		)
Earnings Per Share
Basic
Income (loss) from continuing operations available to Voya Financial, Inc.'s common shareholders	$	0.57		$	1.27	$	0.80		$	2.29
Income (loss) from discontinued operations, net of taxes available to Voya Financial, Inc.'s common shareholders	$	(0.14	)	$	0.29	$	(0.03	)	$	(8.06	)
Income (loss) available to Voya Financial, Inc.'s common shareholders	$	0.44		$	1.57	$	0.77		$	(5.76	)
Diluted
Income (loss) from continuing operations available to Voya Financial, Inc.'s common shareholders	$	0.56		$	1.22	$	0.77		$	2.17
Income (loss) from discontinued operations, net of taxes available to Voya Financial, Inc.'s common shareholders	$	(0.13	)	$	0.28	$	(0.03	)	$	(7.62	)
Income (loss) available to Voya Financial, Inc.'s common shareholders	$	0.42		$	1.51	$	0.74		$	(5.45	)



	Three Months Ended,
	March 31,		June 30,		September 30,			December 31,
	($ in millions, except per share amounts)
2018
Total revenues	$	1,661	$	1,761	$	1,890		$	1,851
Total benefits and expenses	1,653		1,596		1,661			1,725
Income (loss) from continuing operations before income taxes	8		165		229			126
Income (loss) from discontinued operations, net of tax	440		92		(32		)	29
Net income (loss)	446		229		168			177
Less: Net income (loss) attributable to noncontrolling interest	—		62		26			57
Net income (loss) available to Voya Financial, Inc.	446		167		142			120
Less: Preferred stock dividends	—		—		—			—
Net income (loss) available to Voya Financial, Inc.'s common shareholders	446		167		142			120
Earnings Per Share
Basic
Income (loss) from continuing operations available to Voya Financial, Inc.'s common shareholders	$	0.03	$	0.45	$	1.09		$	0.60
Income (loss) from discontinued operations, net of taxes available to Voya Financial, Inc.'s common shareholders	$	2.56	$	0.55	$	(0.20	)	$	0.18
Income (loss) available to Voya Financial, Inc.'s common shareholders	$	2.59	$	1.00	$	0.89		$	0.78
Diluted
Income (loss) from continuing operations available to Voya Financial, Inc.'s common shareholders	$	0.03	$	0.43	$	1.06		$	0.58
Income (loss) from discontinued operations, net of taxes available to Voya Financial, Inc.'s common shareholders	$	2.47	$	0.53	$	(0.19	)	$	0.18
Income (loss) available to Voya Financial, Inc.'s common shareholders	$	2.50	$	0.96	$	0.87		$	0.76

Schedule I - Summary of Investments Other than Investments in Affiliates

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract]

Schedule I - Summary of Investments Other than Investments in Affiliates

Voya Financial, Inc.

Schedule I

Summary of Investments Other than Investments in Affiliates

As of December 31, 2019

(In millions)



Type of Investments	Cost		Fair Value		Amount Shown on Consolidated Balance Sheet
Fixed maturities:
U.S. Treasuries	$	1,074	$	1,382	$	1,382
U.S. Government agencies and authorities	74		95		95
State, municipalities, and political subdivisions	1,220		1,323		1,323
U.S. corporate public securities	12,980		14,938		14,938
U.S. corporate private securities	5,568		6,035		6,035
Foreign corporate public securities and foreign governments⁽¹⁾	3,887		4,341		4,341
Foreign corporate private securities⁽¹⁾	4,545		4,831		4,831
Residential mortgage-backed securities	4,999		5,204		5,204
Commercial mortgage-backed securities	3,402		3,574		3,574
Other asset-backed securities	2,058		2,055		2,055
Total fixed maturities, including securities pledged	39,807		43,778		43,778
Equity securities, available-for-sale	196		196		196
Short-term investments	68		68		68
Mortgage loans on real estate	6,878		7,262		6,878
Policy loans	776		776		776
Limited partnerships/corporations	1,290		1,290		1,290
Derivatives	34		316		316
Other investments	385		456		385
Total investments	$	49,434	$	54,142	$	53,687

⁽¹⁾ Primarily U.S. dollar denominated.

Schedule II - Condensed Financial Information of Parent

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule II - Condensed Financial Information of Parent

Schedule II

Condensed Financial Information of Parent

Balance Sheets

December 31, 2019 and 2018

(In millions, except share and per share data)



	As of December 31,
	2019			2018
Assets
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost of $5 as of 2019 and $0 as of 2018	$	5		$	—
Equity securities, at fair value (amortized cost of $0 as of 2019 and $99 as of 2018)	—			99
Limited partnerships/corporations	4			—
Derivatives	49			39
Investments in subsidiaries	11,003			10,099
Total investments	11,061			10,237
Cash and cash equivalents	212			209
Short-term investments under securities loan agreements, including collateral delivered	11			11
Loans to subsidiaries and affiliates	164			79
Due from subsidiaries and affiliates	2			2
Deferred income taxes	816			553
Other assets	7			13
Total assets	$	12,273		$	11,104

Liabilities and Shareholders' Equity
Short-term debt	$	69		$	4
Long-term debt	2,669			2,763
Derivatives	50			39
Due to subsidiaries and affiliates	4			1
Current income taxes	28			37
Other liabilities	45			47
Total liabilities	2,865			2,891

Shareholders' equity:
Preferred stock ($0.01 par value per share; $625 and $325 aggregate liquidation preference as of 2019 and 2018, respectively)	—			—
Common stock ($0.01 par value per share; 900,000,000 shares authorized; 140,726,677 and 272,431,745 shares issued as of 2019 and 2018, respectively; 132,325,790 and 150,978,184 shares outstanding as of 2019 and 2018, respectively)	2			3
Treasury stock (at cost; 8,400,887 and 121,453,561 shares as of 2019 and 2018, respectively)	(460		)	(4,981		)
Additional paid-in capital	11,184			24,316
Accumulated other comprehensive income (loss)	3,331			607
Retained earnings (deficit):
Unappropriated	(4,649		)	(11,732		)
Total Voya Financial, Inc. shareholders' equity	9,408			8,213
Total liabilities and shareholders' equity	$	12,273		$	11,104

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

Voya Financial, Inc.

Schedule II

Condensed Financial Information of Parent

Statements of Operations

For the Years Ended December 31, 2019, 2018 and 2017

(In millions)



	Year Ended December 31,
	2019			2018			2017
Revenues:
Net investment income	$	39		$	1		$	33
Net realized capital gains (losses)	(1		)	—			—
Other revenue	—			(5		)	8
Total revenues	38			(4		)	41

Expenses:
Interest expense	151			175			155
Other expenses	12			11			9
Total expenses	163			186			164
Income (loss) before income taxes and equity in earnings (losses) of subsidiaries	(125		)	(190		)	(123		)
Income tax expense (benefit)	(277		)	—			113
Net income (loss) before equity in earnings (losses) of subsidiaries	152			(190		)	(236		)
Equity in earnings (losses) of subsidiaries, net of tax	(503		)	1,065			(2,756		)
Net income (loss) available to Voya Financial, Inc.	(351		)	875			(2,992		)
Less: Preferred stock dividends	28			—			—
Net income (loss) available to Voya Financial, Inc.'s common shareholders	$	(379	)	$	875		$	(2,992	)

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

Voya Financial, Inc.

Schedule II

Condensed Financial Information of Parent

Statements of Comprehensive Income

For the Years Ended December 31, 2019, 2018 and 2017

(In millions)



	Year Ended December 31,
	2019			2018			2017
Net income (loss) available to Voya Financial, Inc.	$	(351	)	$	875		$	(2,992	)
Other comprehensive income (loss), after tax	2,381			(2,096		)	810
Comprehensive income (loss) attributable to Voya Financial, Inc.	$	2,030		$	(1,221	)	$	(2,182	)

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

Voya Financial, Inc.

Schedule II

Condensed Financial Information of Parent

Statements of Cash Flows

For the Years Ended December 31, 2019, 2018 and 2017

(In millions)



	Year Ended December 31,
	2019			2018			2017
Cash Flows from Operating Activities:
Net income (loss) available to Voya Financial, Inc.	$	(351	)	$	875		$	(2,992	)
Adjustments to reconcile Net income (loss) available to Voya Financial, Inc. to Net cash used in operating activities:
Equity in (earnings) losses of subsidiaries	503			(1,065		)	2,756
Dividends from subsidiaries	—			52			73
Deferred income tax expense (benefit)	(263		)	25			131
Net realized capital losses	1			—			—
Share-based compensation	12			3			—
Change in:
Other receivables and asset accruals	(10		)	40			32
Due from subsidiaries and affiliates	—			—			1
Due to subsidiaries and affiliates	3			—			1
Other payables and accruals	(24		)	(3		)	(18		)
Other, net	19			46			(2		)
Net cash used in operating activities	(110		)	(27		)	(18		)

Cash Flows from Investing Activities:
Proceeds from the sale, maturity, disposal or redemption of equity securities	156			34			25
Acquisition of:
Fixed maturities	(5		)	—			—
Equity securities	(35		)	(36		)	(34		)
Limited partnerships/corporations	(4		)	—			—
Short-term investments, net	—			212			—
Issuance of intercompany loans with maturities more than three months	—			—			(34		)
Maturity of intercompany loans issued to subsidiaries with maturities more than three months	—			—			34
Maturity (issuance) of short-term intercompany loans, net	(85		)	111			87
Return of capital contributions and dividends from subsidiaries	1,064			1,155			1,020
Capital contributions to subsidiaries	(3		)	(55		)	(467		)
Other, net	—			(13		)	—
Net cash provided by investing activities	1,088			1,408			631

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

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

	Year Ended December 31,
	2019			2018			2017
Cash Flows from Financing Activities:
Proceeds from issuance of debt with maturities of more than three months	—			350			399
Repayment of debt with maturities of more than three months	(106		)	(623		)	(494		)
Debt issuance costs	—			(6		)	(3		)
Net proceeds from (repayments of) short-term loans to subsidiaries	65			(414		)	408
Proceeds from issuance of common stock, net	3			3			3
Proceeds from issuance of preferred stock, net	293			319			—
Share-based compensation	(22		)	(14		)	(8		)
Common stock acquired - Share repurchase	(1,136		)	(1,025		)	(923		)
Dividends paid on common stock	(44		)	(6		)	(8		)
Dividends paid on preferred stock	(28		)	—			—
Net cash used in financing activities	(975		)	(1,416		)	(626		)
Net increase (decrease) in cash and cash equivalents	3			(35		)	(13		)
Cash and cash equivalents, beginning of period	209			244			257
Cash and cash equivalents, end of period	$	212		$	209		$	244

Supplemental cash flow information:
Income taxes paid (received), net	$	(128	)	$	1		$	(154	)
Interest paid	136			152			138

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

1. Business and Basis of Presentation

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

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

2. Loans to Subsidiaries

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

The following table summarizes the carrying value of Voya Financial, Inc.'s loans to subsidiaries for the periods indicated:



				As of December 31,
Subsidiaries	Rate		Maturity Date	2019		2018
Voya Alternative Asset Management LLC	0.02	%	12/30/2019	$	—	$	2
Voya Custom Investments LLC	2.80	%	01/30/2020	1		—
Voya Capital	2.60	%	01/07/2020	9		4
Voya Investment Management, LLC	2.80	%	01/24/2020	53		51
Voya Payroll Management, Inc.	2.53	%	01/02/2020	7		6
Voya Holdings Inc.	2.68	%	01/10/2020	30		—
Voya Holdings Inc.	2.78	%	01/30/2020	57		—
Security Life of Denver International Limited	2.53	%	01/02/2020	—		16
Voya Services Company	2.53	%	01/02/2020	7		—
Total				$	164	$	79

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

3. Financing Agreements

Debt Securities

The following table summarizes Voya Financial, Inc.'s short-term debt borrowings for the periods indicated:



	As of December 31,
	2019		2018
Intercompany financing - Subsidiaries	$	69	$	4
Total	$	69	$	4

Intercompany financing

Under the reciprocal loan agreements with subsidiaries, interest is charged at the prevailing market interest rate for similar third-party borrowings for securities.

As of December 31, 2019 and 2018, Voya Financial, Inc. was in compliance with its debt covenants.

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

Credit Facilities

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

Guarantees

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

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

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

•

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

•

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


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

•

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

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

4. Returns of Capital and Dividends

Voya Financial, Inc. received returns of capital and dividends from the following subsidiaries for the periods indicated:



	Years Ended December 31,
	2019		2018		2017
Voya Holdings Inc.⁽¹⁾	$	786	$	708	$	1,020
Security Life of Denver International Ltd	228		425		—
Security Life of Denver Insurance Company	—		52		73
Voya Financial Products Company, Inc.	—		12		—
Voya Services Company⁽²⁾	50		85		—
Total	$	1,064	$	1,282	$	1,093

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

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

5. Income Taxes

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

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

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

Tax Sharing Agreement

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

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

Schedule III - Supplementary Insurance Information

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract]

Schedule III - Supplementary Insurance Information

Voya Financial, Inc.

Schedule III

Supplementary Insurance Information

As of December 31, 2019 and 2018

(In millions)



Segment	DAC and VOBA		Future Policy Benefits and Contract Owner Account Balances		Unearned Premiums⁽¹⁾
2019
Retirement	$	667	$	34,008	$	—
Investment Management	—		—		—
Employee Benefits	117		2,133		(1		)
Corporate	1,442		14,727		—
Total	$	2,226	$	50,868	$	(1	)

2018
Retirement	$	1,271	$	34,064	$	—
Investment Management	1		—		—
Employee Benefits	99		2,109		(1		)
Corporate	1,602		14,597		—
Total	$	2,973	$	50,770	$	(1	)

⁽¹⁾ Represents unearned premiums associated with short-duration products of the Company's accident and health business.

Voya Financial, Inc.

Schedule III

Supplementary Insurance Information

Years Ended December 31, 2019, 2018 and 2017

(In millions)



Segment	Net Investment Income ⁽¹⁾⁽²⁾			Premiums and Fee Income⁽¹⁾⁽²⁾		Interest Credited and Other Benefits to Contract Owners		Amortization of DAC and VOBA		Other Operating Expenses⁽¹⁾⁽²⁾		Premiums Written (Excluding Life)
2019
Retirement	$	2,029		$	881	$	1,067	$	96	$	1,373	$	—
Investment Management	12			641		—		4		565		—
Employee Benefits	112			1,920		1,405		16		406		1,361
Corporate	639			800		1,278		83		402		—
Total	$	2,792		$	4,242	$	3,750	$	199	$	2,746	$	1,361
2018
Retirement	$	1,971		$	879	$	908	$	117	$	1,284	$	—
Investment Management	(27		)	663		—		3		555		—
Employee Benefits	113			1,741		1,317		17		356		1,187
Corporate	612			831		1,301		96		411		—
Total	$	2,669		$	4,114	$	3,526	$	233	$	2,606	$	1,187
2017
Retirement	$	1,918		$	750	$	1,043	$	238	$	1,140	$	—
Investment Management	(33		)	675		—		3		558		—
Employee Benefits	108			1,663		1,293		11		336		1,155
Corporate	648			898		1,322		101		528		—
Total	$	2,641		$	3,986	$	3,658	$	353	$	2,562	$	1,155

⁽¹⁾Includes the elimination of certain intersegment revenues and expenses, primarily consisting of asset-based management and administration fees, which have been charged by Investment Management and eliminated in Corporate.

⁽²⁾Includes the elimination of intercompany transactions between the Company and its consolidated investment entities, primarily the elimination of the Company's management fees expensed by the funds, recorded as operating revenues before the Company's consolidation of its consolidated investment entities and eliminated in the Investment Management segment.

Schedule IV - Reinsurance

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract]

Schedule IV - Reinsurance

Voya Financial, Inc.

Schedule IV

Reinsurance

Years Ended December 31, 2019, 2018 and 2017

(In millions)



	Gross		Ceded		Assumed		Net		Percentage of Assumed to Net
2019
Life insurance in force	$	648,765	$	245,164	$	8,377	$	411,978	2.0	%

Premiums:
Life insurance	$	1,246	$	1,151	$	826	$	921	89.7	%
Accident and health insurance	1,452		162		1		1,291		0.1	%
Annuity contracts	61		—		—		61		—	%
Total premiums	$	2,759	$	1,313	$	827	$	2,273	36.4	%

2018
Life insurance in force	$	686,814	$	256,619	$	9,034	$	439,229	2.1	%

Premiums:
Life insurance	$	1,262	$	1,288	$	955	$	929	102.8	%
Accident and health insurance	1,275		138		1		1,138		0.1	%
Annuity contracts	65		—		—		65		—	%
Total premiums	$	2,602	$	1,426	$	956	$	2,132	44.8	%

2017
Life insurance in force	$	690,790	$	258,456	$	7,750	$	440,084	1.8	%

Premiums:
Life insurance	$	1,271	$	1,510	$	1,151	$	912	126.2	%
Accident and health insurance	1,051		142		1		910		0.1	%
Annuity contracts	275		—		—		275		—	%
Total premiums	$	2,597	$	1,652	$	1,152	$	2,097	54.9	%

*Less than $1.

Schedule V - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2019

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule V - Valuation and Qualifying Accounts

Voya Financial, Inc.

Schedule V

Valuation and Qualifying Accounts

Years Ended December 31, 2019, 2018 and 2017

(In millions)



	Balance at January 1,		Charged to Costs and Expenses				Write-offs/ Payments/ Other		Balance at December 31,
2019
Valuation allowance on deferred tax assets	$	638	$	(250	)	⁽¹⁾	$	—	$	388
Allowance for losses on commercial mortgage loans	2		(1		)		—		1
2018
Valuation allowance on deferred tax assets	$	653	$	(15	)		$	—	$	638
Allowance for losses on commercial mortgage loans	3		(1		)		—		2
2017
Valuation allowance on deferred tax assets	$	964	$	(311	)	⁽¹⁾	$	—	$	653
Allowance for losses on commercial mortgage loans	3		—				—		3

(1) Refer to the Income Taxes Note to the accompanying Consolidated Financial Statements for more information.

Business, Basis of Presentation and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP").

The Consolidated Financial Statements include the accounts of Voya Financial, Inc. and its subsidiaries, as well as other (voting interest entities ("VOEs")) and variable interest entities ("VIEs") in which the Company has a controlling financial interest. See the Consolidated Investment Entities Note to these Consolidated Financial Statements. Intercompany transactions and balances have been eliminated.

Estimates and Assumptions

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 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 Company has identified the following accounts and policies as the most significant in that they involve a higher degree of judgment, are subject to a significant degree of variability and/or contain significant accounting estimates:


•	Reserves for future policy benefits;


•	Deferred policy acquisition costs ("DAC"), value of business acquired ("VOBA") and other intangibles (collectively, "DAC/VOBA and other intangibles");


•	Valuation of investments and derivatives;


•	Impairments;


•	Income taxes;


•	Contingencies; and

•

Employee benefit plans

Fair Value Measurement

The Company measures the fair value of its financial assets and liabilities based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset, or nonperformance risk, including the Company's own credit risk. The estimate of fair value is the price that would be received to sell an asset or transfer a liability ("exit price") in an orderly transaction between market participants in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability. The Company uses a number of valuation sources to determine the fair values of its financial assets and liabilities, including quoted market prices, third-party commercial pricing services, third-party brokers, industry-standard, vendor-provided software that models the value based on market observable inputs, and other internal modeling techniques based on projected cash flows.

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



Financial Instrument	Classification
Mortgage loans on real estate	Level 3
Policy loans	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 and immediate annuities	Level 3
Short-term debt and Long-term debt	Level 2
Notes Payable	Level 2