Results

Voya Retirement Insurance and Annuity Co.

11/07/2024 | Press release | Distributed by Public on 11/07/2024 10:47

Quarterly Report for Quarter Ending September 30, 2024 (Form 10-Q)

vriac-20240930
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------
FORM 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 033-23376
VOYA RETIREMENT INSURANCE & ANNUITY CO
(Exact name of registrant as specified in its charter)
Connecticut 71-0294708
(State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.)
One Orange Way Windsor, Connecticut 06095-4774
(860) 580-4646
(Address of principal executive offices) (Zip Code) (Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. ý Yes o No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ý Yes o No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐ Accelerated filer ☐
Non-accelerated filer x Smaller reporting company ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ý No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ☐ Yes ☐ No
APPLICABLE ONLY TO CORPORATE ISSUERS:
As of November 1, 2024, 55,000 shares of Common Stock, $50 par value were outstanding, all of which were directly owned by Voya Holdings Inc.
NOTE: WHEREAS VOYA RETIREMENT INSURANCE AND ANNUITY COMPANY MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q, THIS FORM IS BEING FILED WITH THE REDUCED DISCLOSURE FORMAT PURSUANT TO GENERAL INSTRUCTION H(2).
1
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Form 10-Q for the period ended September 30, 2024
INDEX
PAGE
PART I. FINANCIAL INFORMATION (UNAUDITED)
Item 1. Financial Statements:
Condensed Consolidated Balance Sheets
4
Condensed Consolidated Statements of Operations
6
Condensed Consolidated Statements of Comprehensive Income
7
Condensed Consolidated Statements of Changes in Shareholder's Equity
8
Condensed Consolidated Statements of Cash Flows
10
Notes to Condensed Consolidated Financial Statements:
11
1. Business, Basis of Presentation and Significant Accounting Policies
11
2. Investments
13
3. Derivative Financial Instruments
23
4. Fair Value Measurements
28
5. Deferred Policy Acquisition Costs and Value of Business Acquired
37
6. Reserves for Contract Owner Account Balances
38
7. Reinsurance
39
8. Separate Accounts
40
9. Accumulated Other Comprehensive Income (Loss)
41
10. Revenue from Contracts with Customers
44
11. Income Taxes
44
12. Financing Agreements
45
13. Commitments and Contingencies
45
14. Related Party Transactions
47
Item 2.
Management's Narrative Analysis of the Results of Operations and Financial Condition
48
Item 4.
Controls and Procedures
53
PART II. OTHER INFORMATION
Item 1.
Legal Proceedings
53
Item 1A.
Risk Factors
53
Item 6.
Exhibits
53
Exhibit Index
54
Signature
55
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Table of Contents
NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q, including "Risk Factors" and "Management's Narrative Analysis of the Results of Operations and Financial Condition" contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements relating to future developments in our business or expectations for our future financial performance and any statement not involving a historical fact. Forward-looking statements use words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. Actual results, performance or events may differ materially from those projected in any forward-looking statement due to, among other things, (i) global market risks, including general economic conditions, our ability to manage such risks and interest rates; (ii) liquidity and credit risks, including financial strength or credit ratings downgrades, requirements to post collateral, and availability of funds through lending programs; (iii) strategic and business risks, including our ability to maintain market share or otherwise manage our third party relationships; (iv) investment risks, including the ability to achieve desired returns or liquidate certain assets; (v) operational risks, including cybersecurity and privacy failures and our dependence on third parties; and (vi) tax, regulatory and legal risks, including limits on our ability to use deferred tax assets, changes in law, regulation or accounting standards, and our ability to comply with regulations. Factors that may cause actual results to differ from those in any forward-looking statement also include those described under "Risk Factors" and "Management's Narrative Analysis of the Results of Operations and Financial Condition" in the Annual Report on Form 10-Kand in this Quarterly Report on Form 10-Q.
The risks included here are not exhaustive. Current reports on Form 8-K and other documents filed with the Securities and Exchange Commission ("SEC") include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.
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Table of Contents
PART I. FINANCIAL INFORMATION (UNAUDITED)
Item 1. Financial Statements
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Condensed Consolidated Balance Sheets
September 30, 2024 (Unaudited) and December 31, 2023
(In millions, except share and per share data)
September 30,
2024 		December 31,
2023
Assets
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost of $19,687 and $20,496 as of 2024 and 2023, respectively; net of allowance for credit losses of $24 and $14 as of 2024 and 2023, respectively)
$ 18,431 $ 18,713
Fixed maturities, at fair value using the fair value option 1,305 1,328
Equity securities, at fair value
69 65
Short-term investments 1 86
Mortgage loans on real estate (net of allowance for credit losses of $20 and $22 as of 2024 and 2023, respectively)
3,722 4,026
Policy loans 163 161
Limited partnerships/corporations 1,144 1,046
Derivatives 161 213
Securities pledged (amortized cost of $1,102 and $855 as of 2024 and 2023, respectively)
1,027 798
Other investments 95 88
Total investments 26,118 26,524
Cash and cash equivalents 436 186
Short-term investments under securities loan agreements, including collateral delivered 1,007 789
Accrued investment income 289 283
Premium receivable and reinsurance recoverable (net of allowance for credit losses of $0 as of 2024 and 2023)
2,690 2,899
Deferred policy acquisition costs and Value of business acquired 910 920
Deferred income taxes 512 633
Other assets (net of allowance for credit loss of $0 as of 2024 and 2023)
1,479 1,726
Assets held in separate accounts 100,422 90,282
Total assets $ 133,863 $ 124,242
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
4
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Condensed Consolidated Balance Sheets
September 30, 2024 (Unaudited) and December 31, 2023
(In millions, except share and per share data)
September 30,
2024 		December 31,
2023
Liabilities:
Future policy benefits and contract owner account balances $ 29,587 $ 30,577
Payables under securities loan and repurchase agreements, including collateral held
904 692
Due to affiliates 104 173
Derivatives 293 299
Other liabilities 661 679
Liabilities related to separate accounts 100,422 90,282
Total liabilities $ 131,971 $ 122,702
Commitments and Contingencies (Note 13)
Shareholder's equity:
Common stock ($50 par value per share, 100,000 shares authorized, 55,000 issued and outstanding as of 2024 and 2023)
3 3
Additional paid-in capital 2,754 2,770
Accumulated other comprehensive income (loss) (1,125) (1,531)
Retained earnings (deficit) 260 298
Total shareholder's equity 1,892 1,540
Total liabilities and shareholder's equity $ 133,863 $ 124,242
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
5
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Condensed Consolidated Statements of Operations
For the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited)
(In millions)
Three Months Ended September 30,
Nine Months Ended September 30,
2024 2023 2024 2023
Revenues:
Net investment income $ 361 $ 384 $ 1,110 $ 1,155
Fee income 289 254 841 738
Premiums 6 15 4 24
Net gains (losses) (26) (64) (22) (142)
Other revenue 19 2 47 12
Total revenues 649 591 1,980 1,787
Benefits and expenses:
Interest credited and other benefits to contract owners/policyholders 208 261 584 623
Operating expenses 290 269 875 851
Net amortization of Deferred policy acquisition costs and Value of business acquired 18 19 55 58
Interest expense - 1 1 2
Total benefits and expenses 516 550 1,515 1,534
Income (loss) before income taxes 133 41 465 253
Income tax expense (benefit) 15 (29) 46 (7)
Net income (loss) $ 118 $ 70 $ 419 $ 260
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
6
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Condensed Consolidated Statements of Comprehensive Income
For the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited)
(In millions)
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Net income (loss) $ 118 $ 70 $ 419 $ 260
Other comprehensive income (loss), before tax:
Change in current discount rate 4 4 21 15
Unrealized gains (losses) on securities 728 (686) 493 (446)
Other comprehensive income (loss), before tax 732 (682) 514 (431)
Income tax expense (benefit) related to items of other comprehensive income (loss) 153 (144) 108 (91)
Other comprehensive income (loss), after tax 579 (538) 406 (340)
Comprehensive income (loss) $ 697 $ (468) $ 825 $ (80)
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
7
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Condensed Consolidated Statements of Changes in Shareholder's Equity
For the Three Months Ended September 30, 2024 and 2023 (Unaudited)
(In millions)
Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Deficit) Total Shareholder's Equity
Balance as of July 1, 2024 $ 3 $ 2,754 $ (1,704) $ 142 $ 1,195
Comprehensive income (loss):
Net income (loss) - - - 118 118
Other comprehensive income (loss), after tax - - 579 - 579
Total comprehensive income (loss) 697
Balance as of September 30, 2024 $ 3 $ 2,754 $ (1,125) $ 260 $ 1,892
Balance as of July 1, 2023 $ 3 $ 2,770 $ (1,869) $ 101 $ 1,005
Comprehensive income (loss):
Net income (loss) - - - 70 70
Other comprehensive income (loss), after tax - - (538) - (538)
Total comprehensive income (loss) (468)
Balance as of September 30, 2023 $ 3 $ 2,770 $ (2,407) $ 171 $ 537
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
8
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Condensed Consolidated Statements of Changes in Shareholder's Equity
For the Nine Months Ended September 30, 2024 and 2023 (Unaudited)
(In millions)
Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Deficit) Total Shareholder's Equity
Balance as of January 1, 2024 $ 3 $ 2,770 $ (1,531) $ 298 $ 1,540
Comprehensive income (loss):
Net income (loss) - - - 419 419
Other comprehensive income (loss), after tax - - 406 - 406
Total comprehensive income (loss) 825
Dividends paid and distributions of capital
- (16) - (457) (473)
Balance as of September 30, 2024 $ 3 $ 2,754 $ (1,125) $ 260 $ 1,892
Balance as of January 1, 2023 $ 3 $ 2,778 $ (2,067) $ 213 $ 927
Comprehensive income (loss):
Net income (loss) - - - 260 260
Other comprehensive income (loss), after tax - - (340) - (340)
Total comprehensive income (loss) (80)
Dividends paid and distributions of capital
- (8) - (302) (310)
Balance as of September 30, 2023 $ 3 $ 2,770 $ (2,407) $ 171 $ 537
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
9
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Condensed Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2024 and 2023 (Unaudited)
(In millions)
Nine Months Ended September 30,
2024 2023
Cash Flows from Operating Activities:
Net cash provided by operating activities $ 995 $ 931
Cash Flows from Investing Activities:
Proceeds from the sale, maturity, disposal or redemption of:
Fixed maturities 2,910 3,829
Equity securities - 4
Mortgage loans on real estate 470 340
Limited partnerships/corporations 61 38
Acquisition of:
Fixed maturities (2,355) (2,690)
Mortgage loans on real estate (196) (267)
Limited partnerships/corporations (131) (84)
Short-term investments, net 85 62
Derivatives, net 33 42
Short-term loan to affiliate, net 140 (161)
Receipts on deposit asset contracts 165 196
Other, net (10) 50
Net cash provided by (used in) investing activities 1,172 1,359
Cash Flows from Financing Activities:
Deposits received for investment contracts 1,534 1,159
Maturities and withdrawals from investment contracts (2,997) (3,254)
Dividends paid and distributions of capital (473) (310)
Other, net 19 49
Net cash provided by (used in) financing activities (1,917) (2,356)
Net increase (decrease) in cash and cash equivalents 250 (66)
Cash and cash equivalents, beginning of period 186 220
Cash and cash equivalents, end of period $ 436 $ 154
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
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Table of Contents
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
1. Business, Basis of Presentation and Significant Accounting Policies
Business
Voya Retirement Insurance and Annuity Company ("VRIAC") is a stock life insurance company domiciled in the State of Connecticut. VRIAC, together with its wholly owned subsidiaries (collectively, the "Company"), provide financial products and services in the United States. VRIAC is authorized to conduct its insurance business in all states and in the District of Columbia, Guam, Puerto Rico and the Virgin Islands.
VRIAC is a direct, wholly owned subsidiary of Voya Holdings Inc. ("Parent"), which is a direct, wholly owned subsidiary of Voya Financial, Inc. ("Voya Financial").
The Company derives its revenue mainly from (a) Investment income earned on investments, (b) Fee income generated from separate account assets supporting variable options under variable annuity contract investments, as designated by contract owners, (c) Premiums, (d) Net gains (losses) on investments and changes in fair value of embedded derivatives on product guarantees, and (e) Other revenue which includes certain other fees. The Company's benefits and expenses primarily consist of (a) Interest credited and other benefits to contract owners/policyholders, (b) Operating expenses, which include expenses related to the selling and servicing of the various products offered by the Company and other general business expenses, and (c) Amortization of Deferred acquisition costs ("DAC") and Value of business acquired ("VOBA"). In addition, the Company collects broker-dealer commission revenues through Voya Financial Partners, LLC ("VFP"), which are, in turn, paid to broker-dealers and expensed.
The Company offers qualified and non-qualified annuity contracts that include a variety of funding and payout options for individuals and employer-sponsored retirement plans qualified under Internal Revenue Code Sections 401, 403, 408, 457 and 501, as well as non-qualified deferred compensation plans and related services. The Company's products are offered primarily to public and private school systems, higher education institutions, hospitals and healthcare facilities, not-for-profit organizations, state and local governments, small to mid-sized corporations and individuals. The Company also provides stable value investment options, including separate account guaranteed investment contracts ("GICs") and synthetic GICs, to institutional clients. The Company's products are generally distributed through independent brokers and advisors, third-party administrators and consultants.
Products offered by the Company include deferred and immediate (i.e., payout) annuity contracts. The Company's products also include programs offered to qualified plans and non-qualified deferred compensation plans that package administrative and record-keeping services, participant education, and retirement readiness planning tools along with a variety of investment options, including proprietary and non-proprietary mutual funds and variable and fixed investment options. In addition, the Company offers wrapper agreements entered into with retirement plans, which contain certain benefit responsive guarantees (i.e., guarantees of principal and previously accrued interest for benefits paid under the terms of the plan) with respect to portfolios of plan-owned assets not invested with the Company. Stable value products are also provided to institutional plan sponsors where the Company may or may not be providing other employer sponsored products and services.
The Company has one operating segment.
On September 11, 2024, VRIAC's ultimate parent, Voya Financial, announced a definitive agreement to acquire the full-service retirement plan business of OneAmerica Financial. This acquisition will be accomplished through the purchase of legal entities and an indemnity reinsurance agreement through which VRIAC will administer group annuity contracts on behalf of American United Life Insurance Company, an affiliate of OneAmerica Financial. The transaction, subject to customary closing conditions, is expected to close on January 1, 2025.
Basis of Presentation
The accompanying Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and are unaudited. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
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, and the differences may be material to the Condensed Consolidated Financial Statements.
The Condensed Consolidated Financial Statements include the accounts of VRIAC and its wholly owned subsidiaries, VFP, Voya Institutional Plan Services, LLC ("VIPS"), and Voya Retirement Advisors, LLC ("VRA"). Intercompany transactions and balances have been eliminated.
The accompanying Condensed Consolidated Financial Statements are unaudited and reflect adjustments (including normal, recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows for the interim periods presented, in conformity with U.S. GAAP. Interim results are not necessarily indicative of full year performance. These
unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial
Statements and related notes included in the Company's Annual Report on Form 10-Kfor the year ended December 31, 2023.
Adoption of New Pronouncements
Equity Securities Subject to Contractual Sale Restrictions
In June 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-03, "Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions" ("ASU 2022-03"), which clarifies that contractual restrictions on equity security sales are not considered part of the security unit of account and, therefore, are not considered in measuring the fair value. In addition, the restrictions cannot be recognized and measured as separate units of account. Disclosures on such restrictions are also required.
The provisions of ASU 2022-03 were adopted prospectively on January 1, 2024. The adoption did not have an impact on the Company's financial condition, results of operations, or cash flows.
Future Adoption of Accounting Pronouncements
Income Tax Disclosures
In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which requires:
•A tabular rate reconciliation of (1) reported income tax expense/benefit from continuing operations, to (2) the product of the income/loss from continuing operations before income taxes and the statutory federal income tax rate, using specific categories, as well as disclosure of certain reconciling items based on a 5% threshold.
•Year-to-date net income taxes paid, disaggregated by federal, state, and foreign, as well as disaggregated information on net income taxes paid to an individual jurisdiction based on a 5% threshold.
The amendments are effective for annual periods beginning after December 15, 2024 and should be applied prospectively, with retrospective application permitted. Early adoption is also permitted. The Company is currently in the process of determining the disclosures that may be required by the adoption of the provisions of ASU 2023-09.
Segment Disclosures
In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which requires all current annual disclosures about segment profit/loss and assets to be reported in interim periods, as well as enhanced disclosures about significant segment expenses.
The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024, and are required to be applied retrospectively. Restated prior period disclosures should be based on the significant segment expense categories disclosed in the period of adoption. The Company is currently in the process of determining the disclosures that may be required by the adoption of the provisions of ASU 2023-07.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Climate Related Disclosures
In March 2024, the SEC adopted a final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors, to enhance and standardize climate-related disclosures. The rule will require companies to disclose material Scope 1 and Scope 2 greenhouse gas emissions; climate-related risks, governance, and oversight; and the financial effects of severe weather events and other natural conditions. These disclosures will be phased in beginning with the Company's annual report for the year ending December 31, 2025. While the implementation of this rule is pending the outcome of legal challenges, the Company is currently assessing the disclosures that may be required by the adoption in the event that the stay is lifted.
2. Investments
Fixed Maturities
Available-for-sale and fair value option ("FVO") fixed maturities were as follows as of September 30, 2024:
Amortized
Cost 		Gross
Unrealized
Capital
Gains 		Gross
Unrealized
Capital
Losses
Embedded Derivatives(2)
Allowance for credit losses Fair
Value
Fixed maturities:
U.S. Treasuries $ 298 $ 3 $ 24 $ - $ - $ 277
U.S. Government agencies and authorities 29 1 1 - - 29
State, municipalities and political subdivisions 507 - 57 - - 450
U.S. corporate public securities 5,922 94 659 - - 5,357
U.S. corporate private securities 3,928 52 190 - 3 3,787
Foreign corporate public securities and foreign governments(1)
2,029 42 166 - 1 1,904
Foreign corporate private securities(1)
2,217 33 79 - 1 2,170
Residential mortgage-backed securities 2,811 30 93 1 - 2,749
Commercial mortgage-backed securities 2,612 2 300 - 17 2,297
Other asset-backed securities 1,741 24 20 - 2 1,743
Total fixed maturities, including securities pledged 22,094 281 1,589 1 24 20,763
Less: Securities pledged 1,102 - 75 - - 1,027
Total fixed maturities $ 20,992 $ 281 $ 1,514 $ 1 $ 24 $ 19,736
(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 Net gains (losses) in the Condensed Consolidated Statements of Operations.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Available-for-sale and FVO fixed maturities were as follows as of December 31, 2023:
Amortized
Cost 		Gross
Unrealized
Capital
Gains 		Gross
Unrealized
Capital
Losses
Embedded Derivatives(2)
Allowance
for credit
losses 		Fair
Value
Fixed maturities:
U.S. Treasuries $ 297 $ 3 $ 25 $ - $ - $ 275
U.S. Government agencies and authorities 32 - 2 - - 30
State, municipalities and political subdivisions 623 1 70 - - 554
U.S. corporate public securities 6,291 73 759 - - 5,605
U.S. corporate private securities 3,861 31 256 - - 3,636
Foreign corporate public securities and foreign governments(1)
2,214 27 216 - 3 2,022
Foreign corporate private securities(1)
2,385 20 105 - 1 2,299
Residential mortgage-backed securities 2,631 24 124 1 - 2,532
Commercial mortgage-backed securities 2,781 1 415 - 9 2,358
Other asset-backed securities 1,564 8 43 - 1 1,528
Total fixed maturities, including securities pledged 22,679 188 2,015 1 14 20,839
Less: Securities pledged 855 - 57 - - 798
Total fixed maturities $ 21,824 $ 188 $ 1,958 $ 1 $ 14 $ 20,041
(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 Net gains (losses) in the Condensed Consolidated Statements of Operations.
The amortized cost and fair value of fixed maturities, including securities pledged, as of September 30, 2024, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. Mortgage-backed securities ("MBS") and Other asset-backed securities ("ABS") are shown separately because they are not due at a single maturity date.
Amortized
Cost 		Fair
Value
Due to mature:
One year or less $ 497 $ 484
After one year through five years 3,022 2,980
After five years through ten years 2,797 2,750
After ten years 8,614 7,760
Mortgage-backed securities 5,423 5,046
Other asset-backed securities 1,741 1,743
Fixed maturities, including securities pledged $ 22,094 $ 20,763
As of September 30, 2024 and December 31, 2023, 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.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Repurchase Agreements and Securities Pledged
As of September 30, 2024 and December 31, 2023, the Company did not have any securities pledged in dollar rolls or reverse repurchase agreements.
The Company engages in securities lending whereby the initial collateral is required at a rate of at least 102% of the market value of the loaned securities. The lending agent retains the collateral and invests it in high quality liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. The lending agent indemnifies the Company against losses resulting from the failure of a counterparty to return securities pledged where collateral is insufficient to cover the loss.
In the normal course of business, the Company receives cash collateral and non-cash collateral in the form of securities. 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. Securities retained as collateral by the lending agent may not be sold or re-pledged, except in the event of default, and are not reflected on the Company's Condensed Consolidated Balance Sheets. This collateral generally consists of U.S. Treasury, U.S. Government agency securities and MBS pools.
The following table presents Securities pledged as of the dates indicated:
September 30, 2024 December 31, 2023
Securities pledged/obligations under repurchase agreements(1)
$ 26 $ -
Securities loaned to lending agent(2)
864 645
Securities pledged as collateral(2)(3)
137 153
Total
$ 1,027 $ 798
(1) Comprised of other asset-backed securities and included in Securities pledged and Payables under securities loan and repurchase agreements, including collateral held on the Condensed Consolidated Balance Sheets.
(2) Included in Securities pledged on the Condensed Consolidated Balance Sheets.
(3) See Collateralwithin the Derivatives Financial InstrumentsNote to these Condensed Consolidated Financial Statements for more information.
The following table presents collateral held by asset class that the Company pledged under securities lending as of the dates indicated:
September 30, 2024 December 31, 2023
U.S. Treasuries $ 10 $ 12
U.S. corporate public securities 508 438
Short-term Investments 145 31
Foreign corporate public securities and foreign governments 231 189
Total(1)
$ 894 $ 670
(1) As of September 30, 2024 and December 31, 2023, liabilities to return cash collateral were $727 and $499, respectively, and included in Payables under securities loan agreements, including collateral held on the Condensed Consolidated Balance Sheets.
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.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Allowance for credit losses
The following tables present a rollforward of the allowance for credit losses on available-for-sale fixed maturity securities for the period presented:
Nine Months Ended September 30, 2024
U.S. corporate private securities Commercial mortgage-backed securities Foreign corporate public securities and foreign governments Foreign corporate private securities Other asset-backed securities Total
Balance as of January 1, 2024 $ - $ 9 $ 3 $ 1 $ 1 $ 14
Credit losses on securities for which credit losses were not previously recorded 3 9 - - - 12
Reductions for securities sold during the period - - (2) - - (2)
Increase (decrease) on securities with allowance recorded in previous period - (1) - - 1 -
Balance as of September 30, 2024 $ 3 $ 17 $ 1 $ 1 $ 2 $ 24
Year Ended December 31, 2023
U.S. Corporate private securities Commercial mortgage-backed securities Foreign corporate public securities and foreign governments Foreign corporate private securities Other asset-backed securities Total
Balance as of January 1, 2023 $ - $ - $ 6 $ 1 $ - $ 7
Credit losses on securities for which credit losses were not previously recorded - 9 - - 1 10
Reductions for securities sold during the period - - (2) - - (2)
Increase (decrease) on securities with allowance recorded in previous period - - (1) - - (1)
Balance as of December 31, 2023
$ - $ 9 $ 3 $ 1 $ 1 $ 14
For additional information about the Company's methodology and significant inputs used in determining whether a credit loss exists, see the Business, Basis of Presentation and Significant Accounting Policies Note to the Consolidated Financial Statements in Part II, Item 8. of the Annual Report on Form 10-K.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Unrealized Capital Losses
The following tables present available-for-sale fixed maturities, including securities pledged, for which an allowance for credit losses has not been recorded by investment category and duration as of the dates indicated:
As of September 30, 2024
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 $ 52 $ 1 $ 137 $ 23 $ 189 $ 24
U.S. Government, agencies and authorities - - 15 1 15 1
State, municipalities and political subdivisions - - 446 57 446 57
U.S. corporate public securities 88 6 3,871 653 3,959 659
U.S. corporate private securities 136 2 2,429 188 2,565 190
Foreign corporate public securities and foreign governments 31 1 1,104 165 1,135 166
Foreign corporate private securities 5 - 1,316 79 1,321 79
Residential mortgage-backed 16 - 754 93 770 93
Commercial mortgage-backed 18 - 2,138 300 2,156 300
Other asset-backed 4 - 227 20 231 20
Total $ 350 $ 10 $ 12,437 $ 1,579 $ 12,787 $ 1,589
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
As of December 31, 2023
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 $ 60 $ 2 $ 105 $ 23 $ 165 $ 25
U.S. Government, agencies and authorities - - 17 2 17 2
State, municipalities and political subdivisions 16 - 528 70 544 70
U.S. corporate public securities 215 13 4,233 746 4,448 759
U.S. corporate private securities 128 5 2,653 251 2,781 256
Foreign corporate public securities and foreign governments 70 1 1,385 215 1,455 216
Foreign corporate private securities 151 4 1,744 101 1,895 105
Residential mortgage-backed 74 2 803 122 877 124
Commercial mortgage-backed 52 3 2,252 412 2,304 415
Other asset-backed 97 3 744 40 841 43
Total $ 863 $ 33 $ 14,464 $ 1,982 $ 15,327 $ 2,015
As of September 30, 2024, the average duration of our fixed maturities portfolio, including securities pledged, is between 6 and 6.5 years.
As of September 30, 2024 and December 31, 2023, the Company concluded that an allowance for credit losses was not warranted for the securities above because the unrealized losses are interest rate related. 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.
Evaluating Securities for 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 impaired.
Intent impairments were $1 and $5 for the three and nine months ended September 30, 2024, respectively, and $15 and $21 for the three and nine months ended September 30, 2023, respectively.
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.
Debt Modifications
The Company evaluates all debt modifications to determine whether a modification results in a new loan or a continuation of an existing loan. Disclosures are required for loan modifications with borrowers experiencing financial difficulty. For the three and nine months ended September 30, 2024 and 2023, the Company had no material debt modifications that require such disclosure.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
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 performance, 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.
Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of mortgage loans. These ratios are utilized as part of the review process described above.
The following tables present commercial mortgage loans by year of origination and LTV ratio as of the dates indicated. The information is updated as of September 30, 2024 and December 31, 2023, respectively.
As of September 30, 2024
Loan-to-Value Ratios
Year of Origination
0% - 50%
>50% - 60%
>60% - 70%
>70% - 80%
>80% and above
Total
2024 $ 102 $ 71 $ 11 $ - $ - $ 184
2023 90 151 28 - - 269
2022 195 251 104 - - 550
2021 187 162 106 - - 455
2020 150 73 - - - 223
Prior
1,881 153 11 - 16 2,061
Total $ 2,605 $ 861 $ 260 $ - $ 16 $ 3,742
As of December 31, 2023
Loan-to-Value Ratios
Year of Origination
0% - 50%
>50% - 60%
>60% - 70%
>70% - 80%
>80% and above
Total
2023 $ 113 $ 152 $ - $ - $ - $ 265
2022 215 282 73 - - 570
2021 191 181 197 - - 569
2020 137 93 - 10 11 251
2019 173 54 20 - - 247
Prior
1,878 246 3 - 19 2,146
Total $ 2,707 $ 1,008 $ 293 $ 10 $ 30 $ 4,048
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
The following tables present commercial mortgage loans by year of origination and DSC ratio as of the dates indicated. The information is updated as of September 30, 2024 and December 31, 2023, respectively.
As of September 30, 2024
Debt Service Coverage Ratios
Year of Origination
>1.5x
>1.25x - 1.5x
>1.0x - 1.25x
<1.0x
Total*
2024 $ 82 $ 68 $ 27 $ 7 $ 184
2023 90 41 129 9 269
2022 235 68 68 179 550
2021 204 10 69 172 455
2020 171 17 20 15 223
Prior
1,530 170 284 77 2,061
Total $ 2,312 $ 374 $ 597 $ 459 $ 3,742
*No commercial mortgage loans were secured by land or construction loans
As of December 31, 2023
Debt Service Coverage Ratios
Year of Origination
>1.5x
>1.25x - 1.5x
>1.0x - 1.25x
<1.0x
Total*
2023 $ 133 $ 83 $ 49 $ - $ 265
2022 173 54 172 171 570
2021 205 12 51 301 569
2020 175 20 16 40 251
2019 151 19 62 15 247
Prior
1,619 197 212 118 2,146
Total $ 2,456 $ 385 $ 562 $ 645 $ 4,048
*No commercial mortgage loans were secured by land or construction loans
The following tables present the commercial mortgage loans by year of origination and U.S. region as of the dates indicated. The information is updated as of September 30, 2024 and December 31, 2023, respectively.
As of September 30, 2024
U.S. Region
Year of Origination Pacific South Atlantic Middle Atlantic West South Central Mountain East North Central New England West North Central East South Central Total
2024 $ 24 $ 60 $ 27 $ 39 $ 17 $ - $ 7 $ 2 $ 8 $ 184
2023 50 66 10 75 16 28 2 20 2 269
2022 114 118 47 88 82 80 1 - 20 550
2021 77 33 97 88 83 32 9 36 - 455
2020 52 114 13 8 8 10 - 6 12 223
Prior
456 494 546 132 169 113 44 87 20 2,061
Total $ 773 $ 885 $ 740 $ 430 $ 375 $ 263 $ 63 $ 151 $ 62 $ 3,742
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
As of December 31, 2023
U.S. Region
Year of Origination Pacific South Atlantic Middle Atlantic West South Central Mountain East North Central New England West North Central East South Central Total
2023 $ 51 $ 61 $ 9 $ 75 $ 16 $ 29 $ 2 $ 20 $ 2 $ 265
2022 114 118 46 89 100 81 1 1 20 570
2021 76 44 103 143 96 60 10 36 1 569
2020 53 130 14 8 8 20 - 6 12 251
2019 43 69 6 52 34 4 13 10 16 247
Prior
456 456 616 158 162 140 33 114 11 2,146
Total $ 793 $ 878 $ 794 $ 525 $ 416 $ 334 $ 59 $ 187 $ 62 $ 4,048
The following tables present the commercial mortgage loans by year of origination and property type as of the dates indicated. The information is updated as of September 30, 2024 and December 31, 2023, respectively.
As of September 30, 2024
Property Type
Year of Origination Retail Industrial Apartments Office Hotel/Motel Other Mixed Use Total
2024 $ 18 $ 102 $ 54 $ 10 $ - $ - $ - $ 184
2023 81 128 24 12 24 - - 269
2022 72 231 205 26 10 6 - 550
2021 21 112 220 87 - 7 8 455
2020 49 36 59 79 - - - 223
Prior
482 592 452 327 49 123 36 2,061
Total $ 723 $ 1,201 $ 1,014 $ 541 $ 83 $ 136 $ 44 $ 3,742
As of December 31, 2023
Property Type
Year of Origination Retail Industrial Apartments Office Hotel/Motel Other Mixed Use Total
2023 $ 82 $ 122 $ 24 $ 13 $ 24 $ - $ - $ 265
2022 72 233 224 25 10 6 - 570
2021 22 122 310 99 - 8 8 569
2020 49 37 60 105 - - - 251
2019 29 56 124 29 9 - - 247
Prior
559 625 414 342 42 127 37 2,146
Total $ 813 $ 1,195 $ 1,156 $ 613 $ 85 $ 141 $ 45 $ 4,048
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated:
September 30, 2024 December 31, 2023
Allowance for credit losses, beginning of the period $ 22 $ 14
Credit losses on mortgage loans for which credit losses were not previously recorded - 2
Increase (decrease) on mortgage loans with an allowance recorded in a previous period
1 8
Provision for expected credit losses 23 24
Write-offs (3) (2)
Allowance for credit losses, end of period $ 20 $ 22
The following table presents the payment status of commercial mortgage loans as of the dates indicated:
September 30, 2024 December 31, 2023
Current $ 3,707 $ 4,037
30-59 days past due - -
60-89 days past due 11 -
Greater than 90 days past due 24 11
Total $ 3,742 $ 4,048
Commercial mortgage loans are placed on non-accrual status when 90 days in arrears, when the Company has concerns regarding the collectability of future payments, or when a loan has matured without being paid off or extended. As of September 30, 2024 and December 31, 2023, the Company had $35 and $11, respectively, of commercial mortgage loans in non-accrual status. The amount of interest income recognized on loans in non-accrual status for the nine months ended September 30, 2024 and the year ended December 31, 2023 was immaterial.
Net Investment Income
The following table summarizes Net investment income by investment type for the periods indicated:
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Fixed maturities $ 305 $ 319 $ 912 $ 970
Equity securities 2 2 5 8
Mortgage loans on real estate 45 50 140 147
Policy loans 2 2 6 6
Short-term investments and cash equivalents 3 3 8 7
Limited partnerships and other 22 25 89 69
Gross investment income 379 401 1,160 1,207
Less: Investment expenses 18 17 50 52
Net investment income $ 361 $ 384 $ 1,110 $ 1,155
As of September 30, 2024 and December 31, 2023, the Company had $5 and $7, 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.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Net Gains (Losses)
Net gains (losses) were as follows for the periods indicated:
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Fixed maturities, available-for-sale, including securities pledged $ 18 $ (12) $ (7) $ (36)
Fixed maturities, at fair value option 62 (90) (23) (190)
Equity securities, at fair value 2 (1) 4 (7)
Derivatives (106) 66 4 123
Embedded derivatives - fixed maturities 2 (3) 1 (3)
Other derivatives
- 1 1 1
Managed custody guarantees 6 (15) 6 (12)
Stabilizers
(6) (9) (7) (9)
Mortgage loans (4) (1) (1) (9)
Net gains (losses) $ (26) $ (64) $ (22) $ (142)
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:
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Proceeds on sales $ 504 $ 584 $ 1,514 $ 2,716
Gross gains 18 9 32 38
Gross losses 2 5 28 44
3. Derivative Financial Instruments
The Company primarily enters into the following types of derivatives:
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.
Futures:The Company 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.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Embedded derivatives:The Company also invests in certain fixed maturity instruments and has issued certain products that contain embedded derivatives for which market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates, or credit ratings/spreads. In addition, the Company has entered into coinsurance with funds withheld arrangements, which contain embedded derivatives.
The Company 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. The Company also uses derivatives contracts to hedge its exposure to various risks associated with the investment portfolio. The Company also uses credit default swaps coupled with other investments in order to produce the investment characteristics of otherwise permissible investments. 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 outlined in ASC Topic 815 as of September 30, 2024 and December 31, 2023.
The notional amounts and fair values of derivatives were as follows as of the dates indicated:
September 30, 2024 December 31, 2023
Notional
Amount 		Asset
Fair Value 		Liability
Fair Value 		Notional
Amount 		Asset
Fair Value 		Liability
Fair Value
Derivatives: Qualifying for hedge accounting(1)
Fair value hedges:
Interest rate contracts $ 200 $ - $ 7 $ - $ - $ -
Cash flow hedges:
Interest rate contracts 10 - - 10 - -
Foreign exchange contracts 527 17 10 597 27 6
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts 11,250 144 273 11,125 186 290
Foreign exchange contracts 43 - 2 66 - 2
Credit contracts 96 - 1 101 - 1
Embedded derivatives and Managed custody guarantees ("MCGs"):
Within fixed maturity investments(2)
N/A 1 - N/A 1 -
MCGs(3)
N/A - 2 N/A - 8
Stabilizers(3)
N/A - 8 N/A - 1
Total $ 162 $ 303 $ 214 $ 308
(1)Open derivative contracts are reported as Derivatives assets or liabilities at fair value on the Condensed Consolidated Balance Sheets.
(2)Included in Fixed maturities, available-for-sale, at fair value on the Condensed Consolidated Balance Sheets.
(3)Included in Future policy benefits and contract owner account balances on the Condensed Consolidated Balance Sheets.
N/A - Not Applicable
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
The Company does not offset any derivative assets and liabilities in the Condensed Consolidated Balance Sheets. The disclosures set out in the table below include the fair values of Over-The-Counter ("OTC") and cleared derivatives excluding exchange traded contracts subject to master netting agreements or similar agreements as of the dates indicated:
Gross Amount Recognized(1)
Counterparty Netting(2)
Cash Collateral Netting(2)
Securities Collateral Netting(2)
Net Receivables/ Payables
September 30, 2024
Derivative assets $ 160 $ (148) $ (9) $ (2) $ 1
Derivative liabilities 293 (148) (138) (5) 2
December 31, 2023
Derivative assets 213 (184) (17) (8) 4
Derivative liabilities 299 (184) (111) (3) 1
(1) As of September 30, 2024, gross amounts exclude asset and liability exchange traded contracts of $1 and $0, respectively. As of December 31, 2023, gross amounts exclude asset and liability exchange traded contracts of $0 and $0, respectively.
(2) Represents the netting of receivable with payable balances, net of collateral, for the same counterparty under eligible netting agreements.
Collateral
Under the terms of the OTC Derivative International Swaps and Derivatives Association, Inc. ("ISDA") agreements, the Company may receive from, or deliver to, counterparties, collateral to assure that terms of the ISDA agreements will be met with regard to the Credit Support Annex ("CSA"). The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate. To the extent cash collateral is received and delivered, it is included in Payables under securities loan agreements, including collateral held and Short-term investments under securities loan agreements, including collateral delivered, respectively, on the Condensed Consolidated Balance Sheets and is reinvested in short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by the Company are the source of noncash collateral posted, which is reported in Securities pledged on the Condensed Consolidated Balance Sheets.
As of September 30, 2024, the Company held $11 and pledged $138 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2023, the Company held $17 and delivered $112 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. In addition, as of September 30, 2024, the Company delivered $137 of securities and held $3 of securities as collateral. As of December 31, 2023, the Company delivered $153 of securities and held $10 securities as collateral.
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Table of Contents
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
The location and effect of derivatives qualifying for hedge accounting on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income are as follows for the periods indicated:
2024 2023
Interest Rate Contracts Foreign Exchange Contracts Interest Rate Contracts Foreign Exchange Contracts
Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Net investment income
Net investment income and Net gains (losses)
Net investment income
Net investment income and Net gains (losses)
Three Months Ended September 30,
Amount of Gain or (Loss) Recognized in Other Comprehensive Income $ - $ (23) $ - $ 6
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income - 4 - 3
Nine Months Ended September 30,
Amount of Gain or (Loss) Recognized in Other Comprehensive Income $ - $ (14) $ - $ (9)
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income - 9 - 7
The location and amount of gain (loss) recognized in the Condensed Consolidated Statements of Operations for derivatives qualifying for hedge accounting are as follows for the periods indicated:
2024 2023
Net investment income
Net gains (losses)
Net investment income
Net gains (losses)
Three Months Ended September 30,
Total amounts of line items presented in the statements of operations in which the effects of fair value or cash flow hedges are recorded $ 361 $ (26) $ 384 $ (64)
Fair value hedges:
Interest rate contracts:
Hedged items - 7 - -
Derivatives designated as hedging instruments - (7) - -
Cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income
2 2 3 -
Nine Months Ended September 30,
Total amounts of line items presented in the statements of operations in which the effects of fair value or cash flow hedges are recorded $ 1,110 $ (22) $ 1,155 $ (142)
Fair value hedges:
Interest rate contracts:
Hedged items - 8 - -
Derivatives designated as hedging instruments - (8) - -
Cash flow hedges:
Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income
6 3 7 -
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Table of Contents
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
The location and effect of derivatives not designated as hedging instruments on the Condensed Consolidated Statements of Operations are as follows for the periods indicated:
Location of Gain (Loss) Recognized on Derivative Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts Net gains (losses) $ (101) $ 64 $ 10 $ 121
Foreign exchange contracts Net gains (losses) (2) 2 (2) 2
Credit contracts Net gains (losses) 1 - 1 -
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments Net gains (losses) 2 (3) 1 (3)
MCGs
Net gains (losses) 6 (15) 6 (12)
Stabilizers
Net gains (losses) (6) (9) (7) (9)
Total $ (100) $ 39 $ 9 $ 99
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Table of Contents
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
4. Fair Value Measurements
Fair Value Measurement
The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of September 30, 2024:
Level 1 Level 2 Level 3 Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries $ 222 $ 55 $ - $ 277
U.S. Government agencies and authorities - 29 - 29
State, municipalities and political subdivisions - 450 - 450
U.S. corporate public securities - 5,349 8 5,357
U.S. corporate private securities - 2,669 1,118 3,787
Foreign corporate public securities and foreign governments(1)
- 1,896 8 1,904
Foreign corporate private securities (1)
- 1,791 379 2,170
Residential mortgage-backed securities - 2,694 55 2,749
Commercial mortgage-backed securities - 2,297 - 2,297
Other asset-backed securities - 1,725 18 1,743
Total fixed maturities, including securities pledged 222 18,955 1,586 20,763
Equity securities 11 - 58 69
Derivatives:
Interest rate contracts 2 142 - 144
Foreign exchange contracts - 17 - 17
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements 1,443 1 - 1,444
Assets held in separate accounts 94,262 5,812 348 100,422
Total assets $ 95,940 $ 24,927 $ 1,992 $ 122,859
Liabilities:
Stabilizer and MCGs $ - $ - $ 10 $ 10
Derivatives:
Interest rate contracts 1 279 - 280
Foreign exchange contracts - 12 - 12
Credit contracts - 1 - 1
Total liabilities $ 1 $ 292 $ 10 $ 303
(1) Primarily U.S. dollar denominated.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2023:
Level 1 Level 2 Level 3 Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries $ 221 $ 54 $ - $ 275
U.S. Government agencies and authorities - 30 - 30
State, municipalities and political subdivisions - 554 - 554
U.S. corporate public securities - 5,592 13 5,605
U.S. corporate private securities - 2,451 1,185 3,636
Foreign corporate public securities and foreign governments(1)
- 2,022 - 2,022
Foreign corporate private securities (1)
- 1,945 354 2,299
Residential mortgage-backed securities - 2,484 48 2,532
Commercial mortgage-backed securities - 2,358 - 2,358
Other asset-backed securities - 1,491 37 1,528
Total fixed maturities, including securities pledged 221 18,981 1,637 20,839
Equity securities 11 - 54 65
Derivatives:
Interest rate contracts 6 180 - 186
Foreign exchange contracts - 27 - 27
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements 1,061 - - 1,061
Assets held in separate accounts 84,329 5,605 348 90,282
Total assets $ 85,628 $ 24,793 $ 2,039 $ 112,460
Liabilities:
Stabilizer and MCGs $ - $ - $ 9 $ 9
Derivatives:
Interest rate contracts - 290 - 290
Foreign exchange contracts - 8 - 8
Credit contracts - 1 - 1
Total liabilities $ - $ 299 $ 9 $ 308
(1) Primarily U.S. dollar denominated.
Valuation of Financial Assets and Liabilities at Fair Value
Certain assets and liabilities are measured at estimated fair value on the Company's Condensed Consolidated Balance Sheets. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The exit price and the transaction (or entry) price will be the same at initial recognition in many circumstances. However, in certain cases, the transaction price may not represent fair value. The fair value of a liability is based on the amount that would be paid to transfer a liability to a third-party with an equal credit standing. Fair value is required to be a market-based measurement that is determined based on a hypothetical transaction at the measurement date, from a market participant's perspective. The Company considers three broad valuation approaches when a quoted price is unavailable: (i) the market approach, (ii) the income approach and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given the instrument being measured and the availability of sufficient inputs. The Company prioritizes the
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Table of Contents
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
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.
When available, the fair value of the Company's financial assets and liabilities are based on quoted prices of identical assets in active markets and therefore, reflected in Level 1. 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.
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
30
Table of Contents
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
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"), Overnight Index Swap ("OIS") rates, and Secured Overnight Financing Rate ("SOFR"). The Company uses SOFR discounting for valuations of interest rate derivatives; however, certain legacy positions may continue to be discounted on OIS. 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.
Stabilizer and MCGs: 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 projected under multiple capital market scenarios using observable risk-free rates and other best estimate assumptions. These derivatives are classified as Level 3 liabilities.
The discount rate used to determine the fair value of the Company's Stabilizer embedded derivative and MCG stand-alone derivative 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.
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.
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.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
The following tables summarize the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the periods indicated:
Three Months Ended September 30, 2024
Fair Value as of
July 1 		Realized/Unrealized
Gains (Losses) Included in: 		Purchases Issuances Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of
September 30
Change In Unrealized Gains (Losses) Included in Earnings(3)
Change in Unrealized Gains (Losses) Included in OCI(3)
Net Income OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities $ 9 $ - $ (1) $ - $ - $ - $ - $ - $ - $ 8 $ - $ (1)
U.S. Corporate private securities 1,144 (2) 44 86 - (1) (64) - (89) 1,118 - 41
Foreign corporate public securities and foreign governments(1)
12 - - 8 - (12) - - - 8 - -
Foreign corporate private securities(1)
363 1 1 16 - - (2) - - 379 1 2
Residential mortgage-backed securities 39 4 - 12 - - - - - 55 4 -
Other asset-backed securities 17 - - 3 - - (2) - - 18 - -
Total fixed maturities, including securities pledged 1,584 3 44 125 - (13) (68) - (89) 1,586 5 42
Equity securities, at fair value 56 2 - - - - - - - 58 2 -
Stabilizers and MCGs(2)
(10) - - - - - - - - (10) - -
Assets held in separate accounts(4)
363 11 - 12 - (9) - - (29) 348 - -
(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 Net gains (losses) in the Condensed Consolidated Statements of Operations.
(3)For financial instruments still held as of September 30, amounts are included in Net investment income and Net gains (losses) in the Condensed Consolidated Statements of Operations or Unrealized gains (losses) on securities in the Condensed Consolidated Statements of Comprehensive Income.
(4)The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Nine Months Ended September 30, 2024
Fair Value
as of
January 1 		Realized/Unrealized
Gains (Losses) Included in: 		Purchases Issuances Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of
September 30
Change in Unrealized Gains (Losses) Included in Earnings(3)
Change in Unrealized Gains (Losses) Included in OCI(3)
Net Income OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities $ 13 $ - $ - $ - $ - $ - $ (5) $ - $ - $ 8 $ - $ (1)
U.S. Corporate private securities 1,185 (1) 27 186 - (10) (162) - (107) 1,118 1 21
Foreign corporate public securities and foreign governments(1)
- - - 8 - - - - - 8 - -
Foreign corporate private securities(1)
354 1 (8) 32 - (8) (36) 44 - 379 1 (8)
Residential mortgage-backed securities 48 - - 11 - - - - (4) 55 - -
Other asset-backed securities 37 - - 3 - - (5) - (17) 18 - -
Total fixed maturities, including securities pledged 1,637 - 19 240 - (18) (208) 44 (128) 1,586 2 12
Equity securities, at fair value 54 4 - - - - - - - 58 4 -
Stabilizer and MCGs(2)
(9) - - - (1) - - - - (10) - -
Assets held in separate accounts(4)
348 12 - 47 - (24) - 5 (40) 348 - -
(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 Net gains (losses) in the Condensed Consolidated Statements of Operations.
(3)For financial instruments still held as of September 30, amounts are included in Net investment income and Net gains (losses) in the Condensed Consolidated Statements of Operations or Unrealized gains (losses) on securities in the Condensed Consolidated Statements of Comprehensive Income.
(4)The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Three Months Ended September 30, 2023
Fair Value as of
July 1 		Realized/Unrealized
Gains (Losses) Included in: 		Purchases Issuances Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of
September 30
Change In Unrealized Gains (Losses) Included in Earnings(3)
Change in Unrealized Gains (Losses) Included in OCI(3)
Net Income OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities $ 13 $ - $ - $ - $ - $ - $ - $ - $ - $ 13 $ - $ -
U.S. Corporate private securities 1,305 - (36) 17 - - (36) 47 (172) 1,125 - (37)
Foreign corporate private securities(1)
333 (1) (7) 41 - - (17) 43 (16) 376 (1) (7)
Residential mortgage-backed securities 49 (3) - 3 - - - 5 - 54 (3) -
Other asset-backed securities 32 - - 10 - - (1) - (2) 39 - -
Total fixed maturities, including securities pledged 1,732 (4) (43) 71 - - (54) 95 (190) 1,607 (4) (44)
Equity securities, at fair value 114 (1) - - - - - - - 113 1 -
Stabilizer and MCGs(2)
(3) (23) - - (1) - - - - (27) - -
Assets held in separate accounts(4)
344 (5) - 1 - (4) - 6 (1) 341 - -
(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 Net gains (losses) in the Condensed Consolidated Statements of Operations.
(3)For financial instruments still held as of September 30, amounts are included in Net investment income and Net gains (losses) in the Condensed Consolidated Statements of Operations.
(4)The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.
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Table of Contents
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Nine Months Ended September 30, 2023
Fair Value
as of
January 1 		Realized/Unrealized
Gains (Losses) Included in: 		Purchases Issuances Sales Settlements Transfers into Level 3 Transfers out of Level 3 Fair Value as of
September 30
Change in Unrealized Gains (Losses) Included in Earnings(3)
Change in
Unrealized
Gains
(Losses)
Included
in OCI(3)
Net Income OCI
Fixed maturities, including securities pledged:
U.S. Corporate public securities $ 13 $ - $ - $ - $ - $ - $ - $ - $ - $ 13 $ - $ -
U.S. Corporate private securities 1,356 - (34) 79 - (3) (113) 32 (192) 1,125 - (36)
Foreign corporate public securities and foreign governments(1)
2 - - - - - - - (2) - - -
Foreign corporate private securities(1)
339 1 (1) 89 - - (145) 95 (2) 376 1 (2)
Residential mortgage-backed securities 20 (5) - 37 - - - 2 - 54 (5) -
Other asset-backed securities 52 - (1) 10 - - (2) - (20) 39 - -
Total fixed maturities, including securities pledged 1,782 (4) (36) 215 - (3) (260) 129 (216) 1,607 (4) (38)
Equity securities, at fair value 117 (7) - - - - - 3 - 113 (7) -
Stabilizers and MCGs(2)
(6) (20) - - (1) - - - - (27) - -
Assets held in separate accounts(4)
347 (9) - 8 - (13) - 9 (1) 341 - -
(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 Net gains (losses) in the Condensed Consolidated Statements of Operations.
(3)For financial instruments still held as of September 30, amounts are included in Net investment income and Net gains (losses) in the Condensed Consolidated Statements of Operations.
(4)The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.
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Table of Contents
Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
For the three and nine months ended September 30, 2024 and 2023, 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.
Other Financial Instruments
The following disclosures are made in accordance with the requirements of ASC Topic 825 which requires disclosure of fair value information about financial instruments, whether or not recognized at fair value on the Condensed Consolidated Balance Sheets.
ASC Topic 825 excludes certain financial instruments, including insurance contracts and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.
The carrying values and estimated fair values of the Company's financial instruments as of the dates indicated:
September 30, 2024 December 31, 2023
Carrying
Value 		Fair
Value 		Carrying
Value 		Fair
Value
Assets:
Fixed maturities, including securities pledged $ 20,763 $ 20,763 $ 20,839 $ 20,839
Equity securities 69 69 65 65
Mortgage loans on real estate 3,742 3,627 4,048 3,829
Policy loans 163 163 161 161
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements 1,444 1,444 1,061 1,061
Derivatives 161 161 213 213
Short-term loan to affiliate(2)
155 155 295 295
Other investments 95 95 88 88
Assets held in separate accounts 100,422 100,422 90,282 90,282
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities(1)
$ 25,962 $ 29,051 $ 26,867 $ 28,954
Funding agreements with fixed maturities 723 701 671 672
Supplementary contracts, immediate annuities and other 220 188 231 192
Stabilizer and MCGs 10 10 9 9
Derivatives 293 293 299 299
Short-term debt(3)
51 51 31 31
Long-term debt(3)
1 1 1 1
(1)Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Stabilizer and MCGs section of the table above.
(2) Included in Other Assets on the Condensed Consolidated Balance Sheets.
(3)Included in Other Liabilities on the Condensed Consolidated Balance Sheets.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
The following table presents the classification of financial instruments which are not carried at fair value on the Condensed Consolidated Balance Sheets:
Financial Instrument Classification
Mortgage loans on real estate Level 3
Policy loans Level 2
Short-term loan to affiliate Level 2
Other investments Level 2
Funding agreements without fixed maturities and deferred annuities Level 3
Funding agreements with fixed maturities Level 2
Supplementary contracts, immediate annuities and other Level 3
Short-term debt and Long-term debt Level 2
5. 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(1)
Wealth Solutions Deferred and Individual Annuities
Balance as of January 1, 2023 $ 578 $ 348
Deferrals of commissions and expenses 56 3
Amortization expense (45) (30)
Balance as of December 31, 2023 $ 589 $ 321
Deferrals of commissions and expenses 42 2
Amortization expense (34) (20)
Balance as of September 30, 2024 $ 597 $ 303
(1) There was no loss recognition for VOBA during the periods presented.
The following table shows a reconciliation of DAC and VOBA balances to the Condensed Consolidated Balance Sheets for the periods indicated:
September 30, 2024 December 31, 2023
DAC:
Wealth Solutions Deferred and Individual Annuities $ 597 $ 589
Other 10 10
VOBA 303 321
Total $ 910 $ 920
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
6. Reserves for Contract Owner Account Balances
The following table presents a rollforward of Contract owner account balances for the periods indicated:
Wealth Solutions Deferred Group and Individual Annuity
September 30, 2024 December 31, 2023
Balance at January 1 $ 25,991 $ 27,951
Deposits 1,784 2,223
Fee income (36) (9)
Surrenders, withdrawals and benefits (3,181) (4,900)
Net transfers (from) to the general account(2)
103 (9)
Interest credited 532 735
Ending Balance $ 25,193 $ 25,991
Weighted-average crediting rate 2.8 % 2.7 %
Net amount at risk(1)
$ 92 $ 116
Cash surrender value $ 24,830 $ 25,631
(1) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date and is calculated at a contract level. Where a contract has both a living and a death benefit, the Company calculates NAR at a contract level and aggregates the higher of the two values together.
(2)Net transfers (from) to the general account includes transfers of $(867) and $(524) for 2024 and 2023, respectively, related to VRIAC-managed institutional/mutual fund plan assets in trust that are not reflected on the Condensed Consolidated Balance Sheets.
The following table shows a reconciliation of the Contract owner account balances for deferred group and individual annuities to the Future policy benefits and contract owner accounts balances on the Condensed Consolidated Balance Sheets for the periods indicated:
September 30, 2024 December 31, 2023
Wealth Solutions Deferred group and individual annuity (Contract owner account balances) $ 25,193 $ 25,991
Non-puttable funding agreements 723 671
Other (Future policy benefits and Contract owner account balances)(1)
3,671 3,915
Ending balance $ 29,587 $ 30,577
(1)Primarily related to reinsured business
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
The following table summarizes detail on the differences between the interest rate being credited to contract holders as of the periods indicated, and the respective guaranteed minimum interest rates ("GMIRs"):
Account Value(1)
Excess of crediting rate over GMIR
At GMIR Up to .50% Above GMIR 0.51% - 1.00%
Above GMIR 		1.01% - 1.50% Above GMIR 1.51% - 2.00% Above GMIR More than 2.00% Above GMIR Total
As of September 30, 2024
Up to 1.00% $ 9 $ 4,161 $ 3,664 $ 1,716 $ 1,467 $ 867 $ 11,884
1.01% - 2.00% 113 68 40 4 - - 225
2.01% - 3.00% 5,844 33 1 - - - 5,878
3.01% - 4.00% 7,399 - - - - - 7,399
4.01% and Above 4 - - - - - 4
Renewable beyond 12 months (MYGA)(2)
352 - - - 2 - 354
Total discretionary rate setting products $ 13,721 $ 4,262 $ 3,705 $ 1,720 $ 1,469 $ 867 $ 25,744
As of December 31, 2023
Up to 1.00% $ 11 $ 4,663 $ 3,451 $ 2,204 $ 858 $ 797 $ 11,984
1.01% - 2.00% 141 73 44 6 - 1 265
2.01% - 3.00% 6,275 36 1 - - - 6,312
3.01% - 4.00% 7,708 - - - - - 7,708
4.01% and Above 4 - - - - - 4
Renewable beyond 12 months (MYGA)(2)
398 - - - 3 - 401
Total discretionary rate setting products $ 14,537 $ 4,772 $ 3,496 $ 2,210 $ 861 $ 798 $ 26,674
(1) Includes only the account values for investment spread products with GMIRs and discretionary crediting rates, net of policy loans. Excludes Stabilizer products, which are fee based.
(2) Represents multi year guaranteed annuity ("MYGA") contracts with renewal dates after September 30, 2024 and December 31, 2023 on which we are required to credit interest above the contractual GMIR for at least the next twelve months.
7. Reinsurance
As of September 30, 2024, the Company has reinsurance treaties with three unaffiliated reinsurers covering a significant portion of the mortality risks and guaranteed death benefits under its variable contracts.
Premiums receivable and reinsurance recoverable were comprised of the following as of the dates indicated:
September 30 December 31,
2024 2023
Premiums receivable $ (1) $ -
Reinsurance recoverable, net of allowance for credit losses 2,691 2,899
Total $ 2,690 $ 2,899
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Information regarding the effect of reinsurance on the Condensed Consolidated Statements of Operations is as follows for the periods indicated:
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Premiums:
Direct premiums $ 6 $ 16 $ 4 $ 26
Reinsurance ceded - (1) - (2)
Net premiums $ 6 $ 15 $ 4 $ 24
Interest credited and other benefits to contract owners / policyholders:
Direct interest credited and other benefits to contract owners / policyholders $ 247 $ 256 $ 658 $ 699
Reinsurance assumed 1 1 3 3
Reinsurance ceded (40) 4 (77) (79)
Net interest credited and other benefits to contract owners / policyholders $ 208 $ 261 $ 584 $ 623
If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. As of September 30, 2024 and December 31, 2023, the Company had a deposit asset net of the allowance for credit losses of $0.9 billion and $1.0 billion, respectively, which is reported in Other assets on the Condensed Consolidated Balance Sheets.
8. Separate Accounts
The following tables present a rollforward of Separate account liabilities for the Wealth Solutions stabilizer and deferred annuity business, including a reconciliation to the Condensed Consolidated Balance Sheets, for the periods indicated:
September 30, 2024 December 31, 2023
Wealth Solutions
Stabilizer
Deferred Annuity
Total
Stabilizer
Deferred Annuity
Total
Balance at January 1 $ 7,175 $ 81,440 $ 88,615 $ 7,196 $ 68,373 $ 75,569
Deposits 702 7,498 8,200 940 10,036 10,976
Fee income (25) (348) (373) (34) (414) (448)
Surrenders, withdrawals and benefits (1,019) (8,909) (9,928) (1,342) (9,545) (10,887)
Net transfers (from) to separate accounts - (970) (970) - (515) (515)
Investment performance 384 12,697 13,081 415 13,505 13,920
Balance at end of period $ 7,217 $ 91,408 $ 98,625 $ 7,175 $ 81,440 $ 88,615
Reconciliation to Condensed Consolidated Balance Sheets:
Other 1,797 1,667
Total Separate Accounts liabilities $ 100,422 $ 90,282
Stabilizer products 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.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Cash surrender value represents the amount of the contract holders' account balances distributable at the balance sheet date, less certain surrender charges. The cash surrender value for Wealth Solutions deferred annuity products was $91,387 and $81,420 as of September 30, 2024 and December 31, 2023, respectively.
The aggregate fair value of assets, by major investment asset category, supporting separate accounts were as follows for the periods indicated:
September 30, 2024 September 30, 2023
US Treasury securities and obligations of US government corporations and agencies
$ 886 $ 1,015
Corporate and foreign debt securities 2,756 2,528
Mortgage-backed securities 3,191 3,231
Equity securities (including mutual funds) 93,147 83,065
Cash, cash equivalents and short-term investments 300 399
Receivable for securities and accruals 142 44
Total $ 100,422 $ 90,282
9. Accumulated Other Comprehensive Income (Loss)
Shareholder's equity included the following components of Accumulated other comprehensive income ("AOCI") as of the dates indicated:
September 30, 2024 September 30, 2023
Fixed maturities, net of impairment $ (1,308) $ (2,965)
Derivatives(1)
31 88
Change in current discount rate (312) (334)
Deferred income tax asset (liability)(2)
462 803
Total (1,127) (2,408)
Pension and other postretirement benefits liability, net of tax 2 1
AOCI $ (1,125) $ (2,407)
(1) Gains and losses reported in 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 September 30, 2024, the portion of the AOCI that is expected to be reclassified into earnings within the next twelve months is $12.
(2) The Company uses the portfolio method to determine when stranded tax benefits (or detriments) are released from AOCI.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Changes in AOCI, including the reclassification adjustments recognized in the Condensed Consolidated Statements of Operations were as follows for the periods indicated:
Three Months Ended September 30, 2024
Before-Tax Amount
Income Tax (Benefit)
After-Tax Amount
Available-for-sale securities:
Fixed maturities $ 775 $ (164) $ 611
Adjustments for amounts recognized in Net gains (losses) in the Condensed Consolidated Statements of Operations (20) 5 (15)
Change in unrealized gains (losses) on available-for-sale securities 755 (159) 596
Derivatives:
Derivatives (23)
(1)
5 (18)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations (4) 1 (3)
Change in unrealized gains (losses) on derivatives (27) 6 (21)
Change in current discount rate 4 - 4
Change in Accumulated other comprehensive income (loss) $ 732 $ (153) $ 579
(1)See the Derivative Financial InstrumentsNote to these Condensed Consolidated Financial Statements for additional information.
Nine Months Ended September 30, 2024
Before-Tax Amount
Income Tax (Benefit)
After-Tax Amount
Available-for-sale securities:
Fixed maturities $ 522 $ (111) $ 411
Adjustments for amounts recognized in Net gains (losses) in the Condensed Consolidated Statements of Operations (3) 1 (2)
Change in unrealized gains (losses) on available-for-sale securities 519 (110) 409
Derivatives:
Derivatives (14)
(1)
3 (11)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations (12) 3 (9)
Change in unrealized gains (losses) on derivatives (26) 6 (20)
Change in current discount rate 21 (4) 17
Change in Accumulated other comprehensive income (loss) $ 514 $ (108) $ 406
(1)See the Derivative Financial InstrumentsNote to these Condensed Consolidated Financial Statements for additional information.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Three Months Ended September 30, 2023
Before-Tax Amount
Income Tax (Benefit)
After-Tax Amount
Available-for-sale securities:
Fixed maturities $ (697) $ 147 $ (550)
Adjustments for amounts recognized in Net gains (losses) in the Condensed Consolidated Statements of Operations 10 (2) 8
Change in unrealized gains (losses) on available-for-sale securities (687) 145 (542)
Derivatives:
Derivatives 6
(1)
(1) 5
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations (5) 1 (4)
Change in unrealized gains (losses) on derivatives 1 - 1
Change in current discount rate 4 (1) 3
Change in Accumulated other comprehensive income (loss) $ (682) $ 144 $ (538)
(1) See the Derivative Financial InstrumentsNote to these Condensed Consolidated Financial Statements for additional information.
Nine Months Ended September 30, 2023
Before-Tax Amount
Income Tax (Benefit)
After-Tax Amount
Available-for-sale securities:
Fixed maturities $ (451) $ 95 $ (356)
Adjustments for amounts recognized in Net gains (losses) in the Condensed Consolidated Statements of Operations 29 (6) 23
Change in unrealized gains (losses) on available-for-sale securities (422) 89 (333)
Derivatives:
Derivatives (9)
(1)
2 (7)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations (15) 3 (12)
Change in unrealized gains (losses) on derivatives (24) 5 (19)
Change in current discount rate 15 (3) 12
Change in Accumulated other comprehensive income (loss) $ (431) $ 91 $ (340)
(1) See the Derivative Financial InstrumentsNote to these Condensed Consolidated Financial Statements for additional information.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
10. Revenue from Contracts with Customers
Financial services revenue is disaggregated by type of service in the following table:
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Advisory and recordkeeping & administration $ 148 $ 115 $ 424 $ 341
Distribution and shareholder servicing 20 19 59 55
Total financial services revenue 168 134 483 396
Revenue from other sources(1)
140 122 405 354
Total Fee income and Other revenue $ 308 $ 256 $ 888 $ 750
(1) Primarily consists of revenue from insurance contracts and financial instruments.
Receivables of $98 and $94 are included in Other assets on the Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023, respectively.
11. Income Taxes
The Company's effective tax rate for the three months ended September 30, 2024 was 11.3%. The effective tax rate differed from the statutory rate of 21% primarily due to the effect of the dividends received deduction ("DRD") and tax credits.
The Company's effective tax rate for the nine months ended September 30, 2024 was 9.9%. The effective tax rate differed from the statutory rate of 21% primarily due to the effect of the DRD, the Security Life of Denver Company capital loss carryback as discussed below and tax credits.
The Company's effective tax rates for the three and nine months ended September 30, 2023 were (70.7)% and (2.8)%, respectively. The effective tax rates differed from the statutory rate of 21% primarily due to the effect of the DRD, the Security Life of Denver Company capital loss carryback and tax credits.
On January 4, 2021, Voya Financial completed a series of transactions pursuant to a Master Transaction Agreement with Resolution Life U.S. Holdings Inc. ("Resolution Life US"). As a part of these transactions, Resolution Life US acquired Voya Financial's wholly owned subsidiary, Security Life of Denver Company ("SLD"). SLD generated capital losses in the 2023 and 2022 tax years, which are included in a carryback claim for Voya Financial. The Company recorded a $13 and $23 tax benefit in 2024 and 2023, respectively, resulting in a decrease to the effective tax rate.
Valuation allowances are provided when it is considered more likely than not that some portion or all of the deferred tax assets ("DTAs") will not be realized. The Company reviews all available positive and negative evidence to determine if a valuation allowance is recorded, including historical and projected pre-tax book income, tax planning strategies and reversals of temporary differences. As of September 30, 2024, the Company had year-to-date gains on securities of $493 in Other comprehensive income reducing the related DTA. Additionally, income before income taxes remained positive for the period and was largely consistent with the 2023 year-end valuation allowance analysis. After evaluating the positive and negative evidence, the Company did not change its judgement regarding the realization of DTAs and did not establish a valuation allowance. For more information related to the valuation allowance, refer to the Income TaxesNote to the Consolidated Financial Statements included in Part II, Item 8 of the Annual Report on Form 10-K.
Tax Sharing Agreement
The results of the Company's operations are included in the consolidated tax return of Voya Financial. Generally, the Company's consolidated financial statements recognize the current and deferred income tax consequences that result from the Company's activities during the current and preceding periods pursuant to the provisions of Income Taxes (ASC Topic 740) as if the Company were a separate taxpayer rather than a member of Voya Financial's consolidated income tax return group with the exception of any net operating loss carryforwards and capital loss carryforwards, which are recorded pursuant to the tax
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
sharing agreement. If the Company instead were to follow a separate taxpayer approach without any exceptions, there would be no impact to income tax expense (benefit) for the periods indicated above. Also, any current tax benefit related to the Company's tax attributes realized by virtue of its inclusion in the consolidated tax return of Voya Financial would have been recorded directly to equity rather than income. Under the tax sharing agreement, Voya Financial will pay the Company for the tax benefits of ordinary and capital losses only in the event that the consolidated tax group actually uses the tax benefit of losses generated.
Tax Regulatory Matters
For the tax years 2022 through 2024, the Company participates in the Internal Revenue Service ("IRS") Compliance Assurance Process ("CAP"), which is a continuous audit program provided by the IRS. For the 2023 tax year, the Company is in the Compliance Maintenance Bridge ("Bridge") phase of CAP. In the Bridge phase, the IRS did not conduct any review or provide any letters of assurance for that tax year. For the 2024 tax year, the Company is in the Compliance Maintenance Bridge Plus ("Bridge Plus") phase of CAP. In the Bridge Plus phase, the IRS will review the tax return and issue either a full or partial acceptance letter upon completion of review.
Tax Legislative Matters
In August 2022, the Inflation Reduction Act was signed into law creating the corporate alternative minimum tax ("CAMT"). In September 2024, the Department of Treasury issued proposed regulations providing additional guidance on the CAMT. Based on the proposed regulations, the Company does not expect to be subject to the CAMT for 2024.
12. Financing Agreements
Reciprocal Loan Agreement
The Company maintains a reciprocal loan agreement with Voya Financial, an affiliate, to facilitate the handling of unanticipated short-term cash requirements that arise in the ordinary course of business. Under this agreement, which expires on April 1, 2026, either party can borrow from the other up to 3.0% of the Company's statutory admitted assets as of the preceding December 31. Interest on any borrowing by either the Company or Voya Financial is charged at a rate based on the prevailing market rate for similar third-party borrowings or securities.
Under this agreement, the Company incurred $1 interest expense for the three months and nine months ended September 30, 2024, and $1 and $2 interest expense for the three and nine months ended September 30, 2023, respectively. The Company earned $5 and $18 of interest income for the three and nine months ended September 30, 2024, respectively, and $3 and $14 of interest income for the three and nine months ended September 30, 2023, respectively.
As of September 30, 2024, the Company had $155 outstanding receivables and VIPS had an outstanding payable of $50 under the reciprocal loan agreement. As of December 31, 2023, the Company had $295 outstanding receivables and VIPS had a $31 outstanding payable under the reciprocal loan agreement.
13. Commitments and Contingencies
Commitments
Through the normal course of investment operations, the Company commits to either purchase or sell securities, mortgage loans, or money market instruments, at a specified future date and at a specified price or yield. The inability of counterparties to honor these commitments may result in either a higher or lower replacement cost. Also, there is likely to be a change in the value of the securities underlying the commitments. As of September 30, 2024, the Company had off-balance sheet commitments to acquire mortgage loans of $101 and purchase limited partnerships and private placement investments of $796.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
Restricted Assets
The Company is required to maintain assets on deposit with various regulatory authorities to support its insurance operations. The Company may also post collateral in connection with certain securities lending, repurchase agreements, funding agreements, letter of credit ("LOC") and derivative transactions as described further in this note.
The components of the fair value of the restricted assets were as follows as of the dates indicated:
September 30, 2024 December 31, 2023
Fixed maturity collateral pledged to FHLB(1)
$ 1,292 $ 1,205
FHLB restricted stock(2)
34 33
Other fixed maturities-state deposits 12 11
Cash and cash equivalents 1 2
Securities pledged(3)
1,027 798
Total restricted assets $ 2,366 $ 2,049
(1)Included in Fixed maturities, available for sale, at fair value on the Condensed Consolidated Balance Sheets.
(2)Included in Other investments on the Condensed Consolidated Balance Sheets.
(3)Includes the fair value of loaned securities of $864 and $645 as of September 30, 2024 and December 31, 2023, respectively. In addition, as of September 30, 2024 and December 31, 2023, the Company delivered securities as collateral of $137 and $153, respectively, and repurchase agreements of $26 and $0, respectively. Loaned securities and securities delivered as collateral are included in Securities pledged on the Condensed Consolidated Balance Sheets.
Federal Home Loan Bank Funding
The Company is a member of the Federal Home Loan Bank of Boston ("FHLB") and is required to pledge collateral to back funding agreements issued to the FHLB. As of September 30, 2024 and December 31, 2023, the Company had $723 and $671, respectively, in non-putable funding agreements, which are included in Future policy benefits and contract owner account balances on the Condensed Consolidated Balance Sheets. As of September 30, 2024 and December 31, 2023, assets with a market value of approximately $1,292 and $1,205, respectively, collateralized the FHLB funding agreements. Assets pledged to the FHLB are included in Fixed maturities, available-for-sale, at fair value on the Condensed Consolidated Balance Sheets.
Litigation, Regulatory Matters and 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.
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.
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Voya Retirement Insurance and Annuity Company
(A wholly owned subsidiary of Voya Holdings Inc.)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
(Dollar amounts in millions, unless otherwise stated)
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 September 30, 2024, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, as not material to the Company.
For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company's accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews.
Litigation includes Ravarino, et al. v. Voya Financial, Inc., et al. (USDC District of Connecticut, No. 3:21-cv-01658)(filed December 14, 2021). In this putative class action, the plaintiffs allege that the named defendants, which include the Company, breached their fiduciary duties of prudence and loyalty in the administration of the Voya 401(k) Savings Plan. The plaintiffs claim that the named defendants did not exercise proper prudence in their management of allegedly poorly performing investment options, including proprietary funds, and passed excessive investment-management and other administrative fees for proprietary and non-proprietary funds onto plan participants. The plaintiffs also allege that the defendants engaged in self-dealing through the inclusion of the Voya Stable Value Option into the plan offerings and by setting the "crediting rate" for participants' investment in the Stable Value Fund artificially low in relation to Voya's general account investment returns in order to maximize the spread and Voya's profits at the participants' expense. The complaint seeks disgorgement of unjust profits as well as costs incurred. On June 13, 2023, the Court issued a ruling granting in part and denying in part Voya's motion to dismiss. The court largely dismissed the claims for breach of fiduciary duty. The remaining claims concern allegations of breaches of the ERISA prohibited transactions rule and a claim for failure to monitor the Voya Small Cap Growth fund. The Company denies the allegations, which it believes are without merit, and intends to defend the case vigorously.
14. Related Party Transactions
Operating Agreements
The Company has operating agreements whereby the Company provides or receives services from affiliated entities. For the three and nine months ended September 30, 2024, revenues with affiliated entities related to these agreements were $21 and $63, respectively. For the three and nine months ended September 30, 2023, revenues with affiliated entities related to these agreements were $19 and $58, respectively.
For the three and nine months ended September 30, 2024, expenses with affiliated entities related to the aforementioned operating agreements were $143 and $431, respectively. For the three and nine months ended September 30, 2023, expenses with affiliated entities related to the aforementioned operating agreements were $143 and $448, respectively.
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Item 2. Management's Narrative Analysis of the Results of Operations and Financial Condition
For the purposes of this discussion, the terms "VRIAC", "the Company", "we", "our", and "us" refer to Voya Retirement Insurance and Annuity Company and its subsidiaries. We are a direct, wholly owned subsidiary of Voya Holdings Inc., which is a direct, wholly owned subsidiary of Voya Financial, Inc. ("Voya Financial" or "Parent").
The following discussion and analysis presents a review of our results of operations for the three and nine months ended September 30, 2024 and 2023 and financial condition as of September 30, 2024 and December 31, 2023. This item should be read in its entirety and in conjunction with the Condensed Consolidated Financial Statements and related notes contained in Part I., Item 1. of this Quarterly Report on Form 10-Q, as well as "Management's Narrative Analysis of the Results of Operations and Financial Condition" section contained in our Annual Report on Form 10-K.
In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. See Note Concerning Forward-Looking Statements.
Overview
VRIAC is a stock life insurance company domiciled in the State of Connecticut. VRIAC and its wholly owned subsidiaries (collectively, the "Company") provide financial products and services in the United States. VRIAC is authorized to conduct its insurance business in all states and in the District of Columbia, Guam, Puerto Rico and the Virgin Islands.
On September 11, 2024, VRIAC's ultimate parent, Voya Financial, announced a definitive agreement to acquire the full-service retirement plan business of OneAmerica Financial. This acquisition will be accomplished through the purchase of legal entities and an indemnity reinsurance agreement through which VRIAC will administer group annuity contracts on behalf of American United Life Insurance Company, an affiliate of OneAmerica Financial. The transaction, subject to customary closing conditions, is expected to close on January 1, 2025.
Results of Operations
($ in millions)
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 Change 2024 2023 Change
Revenues:
Net investment income $ 361 $ 384 $ (23) $ 1,110 $ 1,155 $ (45)
Fee income 289 254 35 841 738 103
Premiums 6 15 (9) 4 24 (20)
Net gains (losses) (26) (64) 38 (22) (142) 120
Other revenue 19 2 17 47 12 35
Total revenues 649 591 58 1,980 1,787 193
Benefits and expenses:
Interest credited and other benefits to contract owners/policyholders 208 261 (53) 584 623 (39)
Operating expenses 290 269 21 875 851 24
Net amortization of Deferred policy acquisition costs and Value of business acquired 18 19 (1) 55 58 (3)
Interest expense - 1 (1) 1 2 (1)
Total benefits and expenses 516 550 (34) 1,515 1,534 (19)
Income (loss) before income taxes 133 41 92 465 253 212
Income tax expense (benefit) 15 (29) 44 46 (7) 53
Net income (loss) $ 118 $ 70 $ 48 $ 419 $ 260 $ 159
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Three Months Ended September 30, 2024 compared to Three Months Ended September 30, 2023
Revenues
Fee income increased $35 million from $254 million to $289 million primarily due to:
•an increase in fee-based assets primarily due to higher average equity markets.
Premiums decreased $9 million from $15 million to $6 million primarily due to:
•lower amortization of the deferred profit liability associated with businesses exited due to assumption updates in the current period.
Net gains (losses) improved $38 million from a loss of $64 million to a loss of $26 million primarily due to:
•a favorable change in mark-to-market adjustments on securities subject to fair value option accounting primarily due to interest rate movements; and
•higher impairments incurred in the prior period.
The change was partially offset by:
•net unfavorable changes in derivative valuations due to interest rate movements.
Other revenue increased $17 million from $2 million to $19 million primarily due to:
•an increase in float earnings attributable to higher average equity markets.
Benefits and Expenses
Interest credited and other benefits to contract owners/policyholders decreased by $53 million from $261 million to $208 million primarily due to:
•interest accretion on the deposit asset associated with Businesses exited due to assumption updates in the current period.
Income Tax Expense
Income tax expense/(benefit) changed $44 million from a benefit of $29 million to an expense of $15 million primarily due to:
•the Security Life of Denver Company capital loss carryback recorded in 2023. For more details, see the Income Taxes Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q; and
•an increase in income before income taxes
Nine Months Ended September 30, 2024 compared to Nine Months Ended September 30, 2023
Revenues
Fee income increased by $103 million from $738 million to $841 million primarily due to:
•an increase in fee-based assets primarily due to higher average equity markets.
Premiumsdecreased $20 million from $24 million to $4 million primarily due to:
•lower amortization of the deferred profit liability associated with businesses exited due to assumption updates in the current period.
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Net gains (losses)improved by $120 million from a loss of $142 million to a loss of $22 million primarily due to:
•a favorable change in mark-to-market adjustments on securities subject to fair value option accounting primarily due to interest rate movements; and
•higher impairments incurred in the prior period.
The change was partially offset by:
•net unfavorable changes in derivative valuations due to interest rate movements.
Other revenue increased $35 million from $12 million to $47 million primarily due to:
•an increase in float earnings attributable to higher average equity markets.
Income Tax Expense
Income tax expense/(benefit) changed $53 million from a benefit of $7 million to an expense of $46 million primarily due to:
•an increase in income before income taxes; and
•the difference in the Security Life of Denver Company capital loss carrybacks. For more details, see the Income Taxes Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.
Liquidity and Capital Resources
Liquidity refers to our ability to access sufficient sources of cash to meet the requirements of our operating, investing and financing activities. Capital refers to our long-term financial resources available to support business operations and future growth. Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of the businesses, timing of cash flows on investments and products, general economic conditions and access to the capital markets and the other sources of liquidity and capital described herein.
The following discussion presents a review of our sources and uses of liquidity and capital and should be read in its entirety and in conjunction with the Off-Balance Sheet Arrangements discussion further below.
Liquidity Management
Our principal available sources of liquidity are product charges, investment income, proceeds from maturity and sale of investments, proceeds from debt issuance and borrowing facilities, repurchase agreements, contract deposits, securities lending and capital contributions. Primary uses of these funds are payments of commissions and operating expenses, interest credits, investment purchases and contract maturities, withdrawals and surrenders and payment of dividends.
Our liquidity position is managed by maintaining adequate levels of liquid assets, such as cash, cash equivalents and short-term investments. As part of the liquidity management process, different scenarios are modeled to determine whether existing assets are adequate to meet projected cash flows. Key variables in the modeling process include interest rates, equity market movements, quantity and type of interest and equity market hedges, anticipated contract owner behavior, market value of the general account assets, variable separate account performance and implications of rating agency actions.
The fixed account liabilities are supported by a general account portfolio, principally composed of fixed rate investments with matching duration characteristics that can generate predictable, steady rates of return. The portfolio management strategy for the fixed account considers the assets available-for-sale. This strategy enables us to respond to changes in market interest rates, prepayment risk, relative values of asset sectors and individual securities and loans, credit quality outlook and other relevant factors. The objective of portfolio management is to maximize returns, taking into account interest rate and credit risk, as well as other risks. Our asset/liability management discipline includes strategies to minimize exposure to loss as interest rates and economic and market conditions change. In executing this strategy, we use derivative instruments to manage these risks. Our derivative counterparties are of high credit quality.
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Liquidity and Capital Resources
Additional sources of liquidity include borrowing facilities to meet short-term cash requirements that arise in the ordinary course of business. For information regarding our reciprocal loan agreement with Voya Financial, see the Financing Agreements Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.
We hold approximately 47.8% of our assets in marketable securities. These assets include cash, U.S. Treasuries, Agencies, Corporate Bonds, ABS, CMBS and collateralized mortgage obligations ("CMO") and Equity securities. In the event of a temporary liquidity need, cash may be raised by entering into repurchase agreements, dollar rolls and/or security lending agreements by temporarily lending securities and receiving cash collateral. Under our Liquidity Plan, up to 12% of our general account statutory admitted assets may be allocated to repurchase, securities lending and dollar roll programs. At the time a temporary cash need arises, the actual percentage of admitted assets available for repurchase transactions will depend upon outstanding allocations to the three programs. As of September 30, 2024, VRIAC had securities lending collateral assets of $727 million, which represents approximately 0.6% of its general account statutory admitted assets. As of December 31, 2023, VRIAC had securities lending collateral assets of $499 million, which represents approximately 0.4% of its general account statutory admitted assets.
Management believes that our sources of liquidity are adequate to meet our short-term cash obligations.
Capital Contributions and Dividends
During the nine months ended September 30, 2024 and 2023, VRIAC did not receive any capital contribution from its Parent. During the nine months ended September 30, 2024 and 2023, VRIAC paid ordinary dividends to its Parent of $473 million and $310 million, respectively.
Ratings
Our access to funding and our related cost of borrowing, collateral requirements for derivative instruments and the attractiveness of certain of our products to customers are affected by our credit ratings and insurance financial strength ratings, which are periodically reviewed by the rating agencies. Financial strength ratings and credit ratings are important factors affecting public confidence in an insurer and its competitive position in marketing products. Credit ratings are also important to our ability to raise capital through the issuance of debt and for the cost of such financing.
A downgrade in our credit ratings or the credit or financial strength ratings of our Parent or rated affiliates could have a material adverse effect on our results of operations and financial condition. SeeA downgrade or a potential downgrade in our financial strength or credit ratings may result in a loss of business and adversely affect our results of operations and financial condition in Risk Factors in Part I, Item 1A. of our Annual Report on Form 10-K.
Financial strength ratings represent the opinions of rating agencies regarding the financial ability of an insurance company to meet its obligations under an insurance policy. Credit ratings represent the opinions of rating agencies regarding an entity's ability to repay its indebtedness. These ratings are not a recommendation to buy or hold any of our securities and they may be revised or revoked at any time at the sole discretion of the rating organization.
Rating agencies use an "outlook" statement for both industry sectors and individual companies. For an industry sector, a stable outlook generally implies that over the next 12 to 18 months the rating agency expects ratings to remain unchanged among companies in the sector. For a particular company, an outlook generally indicates a medium or long-term trend in credit fundamentals, which if continued, may lead to a rating change.
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Our financial strength rating as of the date of this Quarterly Report on Form 10-Q are summarized in the following table.
Rating Agency
Fitch, Inc. Moody's Investors Service, Inc. Standard & Poor's
Company
("Fitch")(1)
("Moody's")(2)
("S&P")(3)
Voya Retirement Insurance and Annuity Company
Financial Strength Rating
A+
A2 A+
(1)Fitch's financial strength rating for insurance companies range from "AAA (exceptionally strong)" to "C (distressed). " Long-term credit ratings range from "AAA (highest credit quality)," which denotes exceptionally strong capacity for timely payment of financial commitments, to "D (default)."
(2)Moody's financial strength ratings for insurance companies range from "Aaa (exceptional)" to "C (lowest)." Numeric modifiers are used to refer to the ranking within the group- with 1 being the highest and 3 being the lowest. These modifiers are used to indicate relative strength within a category. Long-term credit ratings range from "Aaa (highest)" to "C (default)."
(3) S&P's financial strength ratings for insurance companies range from "AAA (extremely strong)" to "D (default)." Long-term credit ratings range from "AAA (extremely strong)" to "D (default)."
On September 18, 2024, Fitch upgraded Voya Retirement Insurance and Annuity Company's Financial Strength to A+ from A. In conjunction with the upgrade, Fitch revised its outlook to Stable.
In December 2023, Moody's affirmed its outlook for the U.S. life insurance sector as stable. Also, in November 2023, Fitch changed its outlook from neutral to improving for the North American life insurance sector.
Off-Balance Sheet Arrangements
We have obligations for the return of non-cash collateral under an amendment to our securities lending program. Non-cash collateral received in connection with the securities lending program may not be sold or re-pledged by our lending agent, except in the event of default, and is not reflected on our Condensed Consolidated Balance Sheets. For information regarding obligations under this program, see the InvestmentsNote in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.
For changes in commitments related to the acquisition of mortgage loans and the purchase of limited partnerships and private placement investments, see the Commitments and ContingenciesNote in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.
Critical Accounting Judgments and Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates and assumptions are evaluated on an on-going basis based on historical developments, market conditions, industry trends and other information that is reasonable under the circumstances. There can be no assurance that actual results will conform to estimates and assumptions and that reported results of operations will not be materially affected by the need to make future accounting adjustments to reflect changes in these estimates and assumptions from time to time. Those estimates are inherently subject to change and actual results could differ from those estimates, and the differences may be material to the accompanying Condensed Consolidated Financial Statements.
We have identified the following accounting judgments and estimates as critical in that they involve a higher degree of judgment and are subject to a significant degree of variability:
•Valuation of investments and derivatives;
•Investment impairments;
•Income taxes; and
•Contingencies
In developing these accounting estimates, we make subjective and complex judgments that are inherently uncertain and subject to material changes as facts and circumstances develop. Although variability is inherent in these estimates, we believe that the amounts provided are appropriate based on the facts available upon preparation of the Condensed Consolidated Financial Statements.
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The above critical accounting estimates are described in the Business, Basis of Presentation and Significant Accounting PoliciesNote in our Consolidated Financial Statements in Part II, Item 8. of our Annual Report on Form 10-K.
Income Taxes
In August 2022, President Biden signed into law the Inflation Reduction Act of 2022, which includes a 15% corporate alternative minimum tax ("CAMT"). The CAMT is effective in taxable years beginning after December 31, 2022. In September 2024, the Department of Treasury issued proposed regulations providing additional guidance on the CAMT. Based on the proposed regulations, we do not expect to be subject to the CAMT for 2024.
See the Income TaxesNote to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for more information on income taxes.
Item 4. Controls and Procedures
Disclosure Controls and Procedures
The Company carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended ("Exchange Act")) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the Company's current disclosure controls and procedures are effective in ensuring that material information relating to the Company required to be disclosed in the Company's periodic SEC filings is made known to them in a timely manner.
Changes in Internal Control Over Financial Reporting
There were no changes to the Company's internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the quarter ended September 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
See the Commitments and ContingenciesNote in our Condensed Consolidated Financial Statements in Part I., Item 1. of this Quarterly Report on Form 10-Q.
Item 1A. Risk Factors
For a discussion of the Company's potential risks and uncertainties, see Risk Factors in Part I, Item 1A. of our Annual Report on Form 10-K.
Item 6. Exhibits
See Exhibit Index on the following page.
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Voya Retirement Insurance and Annuity Company
Exhibit Index
Exhibit No.
Description of Exhibit
31.1+
Certificate of Michael R. Katz pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2+
Certificate of Robert L. Grubka pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1+
Certificate of Michael R. Katz pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2+
Certificate of Robert L. Grubka pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH+
Inline XBRL Taxonomy Extension Schema
101.CAL+
Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF+
Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB+
Inline XBRL Taxonomy Extension Label Linkbase
101.PRE+
Inline XBRL Taxonomy Extension Presentation Linkbase
104 Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101).
+Filed herewith.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
November 7, 2024 Voya Retirement Insurance and Annuity Company
(Date) (Registrant)
By: /s/
Michael R. Katz
Michael R. Katz
Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)
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