Retirement
Our Retirement segment is focused on meeting the needs of individuals in preparing
for and sustaining a secure retirement through employer-sponsored plans and
services, as well as through individual account rollover plans and comprehensive
financial product offerings and planning and advisory services.
Our Institutional Retirement Plans business offers tax-deferred employer-sponsored
retirement savings plan and administrative services to corporations of all sizes,
public and private school systems, higher education institutions, state and
local governments, hospitals and healthcare facilities and not-for-profit organizations.
We also offer stable value products and pension risk transfer solutions to institutional
plan sponsors where we may or may not be providing defined contribution products
and services. This broad-based institutional business crosses many sectors of
the economy, which provides diversification that helps insulate us from downturns
in particular industries.
Institutional Retirement Plans
Products and Services
We are one of only a few providers that offer tax-deferred institutional retirement
savings plans (utilizing U.S. tax-advantaged savings vehicles for tax-advantaged
retirement savings), services and support to the full spectrum of businesses,
ranging from small to mega-sized plans and across all markets. These plans may
either be offered as full service or recordkeeping only service products. We
also offer stable value investment options and pension risk transfer solutions
to institutional clients.
Full-service retirement products provide recordkeeping and plan administration
services, tailored award-winning participant communications and education programs,
innovative myOrangeMoney™ digital capabilities for sponsors and plan participants
(plus mobile capabilities for participants), trustee services and institutional
and retail investments. These include a wide variety of investment and administrative
products for defined contribution plans for tax-advantaged retirement savings,
as well as nonqualified executive benefit plans and employer stock option plans.
Plan sponsors may select from a variety of investment structures and products,
such as general account, separate account, mutual funds, stable value or collective
investment trusts and a variety of underlying asset types (including their own
employer stock) to best meet the needs of their employees. A broad selection
of funds is available for our products in all asset categories from over 100
fund companies, including the Voya family of mutual funds managed by our Investment
Management segment. Our full-service retirement plan offerings are also supported
by financial planning and investment advisory services offered through our Retail
Wealth Management business or through third parties (e.g., Morningstar) to help
prepare individuals for retirement through customer-focused personalized and
objective investment advice.
Recordkeeping only service products provide administration support for plan
sponsors seeking integrated recordkeeping services for defined contribution,
defined benefit and non-qualified plans. Our plan sponsor base spans the entire
range of corporate plan sponsors as well as state and local governments. Our
recordkeeping retirement plan offerings are also supported by award-winning
participant communications and education programs, innovative myOrangeMoney™
digital capabilities for sponsors and plan participants (plus mobile capabilities
for participants), as well as investment advisory services offered through our
Retail Wealth Management business.
Retail Wealth Management
Our Retail Wealth Management business offers simple, easy-to-understand products,
along with holistic advice and guidance delivered through affiliated brokers
and by online capabilities. Our current investment solutions include a variety
of mutual fund custodial IRA products and managed accounts and advisory programs,
plus brokerage accounts.
The primary focus of our Retirement segment is to serve approximately 4.5 million
defined contribution plan participant accounts (as of December 31, 2015). We
also seek to capitalize on our access to these individuals through our Institutional
Retirement Plans business by developing long-term relationships and providing
individual retail solutions. We believe that our ability to offer a seamless
and integrated approach to an individual customer’s entire financial picture,
while saving for or living in retirement, presents a compelling reason for our
Institutional Retirement Plans participants to use us as their principal investment
and retirement plan provider. Through our broad range of advisory programs,
our financial advisers have access to a wide set of solutions for our customers
for building investment portfolios, including stocks, bonds and mutual funds,
as well as managed accounts. These experienced advisers work with customers
to select a program to meet their financial needs that takes into consideration
each individual’s time horizon, goals and attitudes towards risk.
Annuities
Our Annuities segment product offerings include immediate and deferred fixed
annuities designed to address customer needs for tax-advantaged savings and
retirement income and their wealth-protection concerns. New sales comprise primarily
FIAs and tax-qualified mutual fund custodial accounts.
FIAs. FIAs are marketed principally based on underlying interest-crediting
guarantee features coupled with the potential for increased returns based on
the performance of market indices. For an FIA, the principal amount of the annuity
is guaranteed to be no less than a minimum value based on non-forfeiture regulations
that vary by state. Interest on FIAs is credited based on allocations selected
by a customer in one or more of the strategies we offer and upon policy parameters
that we set. The strategies include a fixed interest rate option, as well as
several options based upon performance of various external financial market
indices. Such indices may include equity indices, such as Standard & Poor’s
500 Index (the "S&P 500"), or an interest rate benchmark, such
as the change in London Interbank Offered Rates ("LIBOR"). The parameters
(such as "caps," "participation rates," and "spreads")
are periodically declared by us for both initial and following periods. Our
existing FIAs contain death benefits as required by non-forfeiture regulations.
Some FIAs contain guaranteed withdrawal benefit features at an additional cost.
These living benefits guarantee a minimum annual withdrawal amount for life.
The amount of the guaranteed annual withdrawal may vary by age at first withdrawal.
Investment Management
Investment Management delivers products and services that are manufactured
by traditional and specialty investment platforms. The traditional platforms
are fixed income, equities and MASS. The specialty investment platforms are
senior bank loans and alternatives.
Fixed Income. Investment Management’s fixed income platform manages assets
for our general account, as well as for domestic and international institutional
and retail investors. Through the fixed income platform clients have access
to money market funds, investment-grade corporate debt, government bonds, residential
mortgage-backed securities ("RMBS"), commercial mortgage-backed securities
("CMBS"), asset-backed securities ("ABS"), high yield bonds,
private and syndicated debt instruments, commercial mortgages and preferred
securities. Each sector within the platform is managed by seasoned investment
professionals supported by significant credit, quantitative and macro research
and risk management capabilities.
Insurance Solutions
Our Insurance Solutions business comprises two reporting segments: Individual
Life and Employee Benefits. Our strategy is based on a broad and effective distribution
model, fueled by a manufacturing capability that provides a stream of competitive
product solutions, all supported by an efficient operations and underwriting
model.
Our Individual Life segment currently offers products that include UL, IUL, variable
universal life and term life, insurance. These offerings are designed to address
customer needs for death benefit protection, tax-advantaged wealth transfer and
accumulation, premium financing, business planning, executive benefits and supplemental
retirement income. We believe that our combination of product solutions is well-suited
for the middle-market through the mass-affluent and makes us a full service provider
to our independent distribution partners.
UL. Accumulation-focused universal life products feature the opportunity to
build tax-deferred cash value that can be accessed by customers via loans and
withdrawals for future needs. This money grows income tax-deferred, meaning
no federal or state income taxes apply while it accumulates. The compounding
tax-deferred interest can be an attractive feature to policyholders. These products
help policyholders meet longer-range goals like college funding, supplemental
retirement income and leaving a legacy for heirs. Other features include flexible
premium payments that can change to meet policyholders’ evolving financial
needs.
Employee Benefits
Our Employee Benefits segment offers stop loss insurance, group life, voluntary
benefits, and group disability products. These offerings are designed to meet
the financial needs of both employers and employees by helping employers attract
and retain employees and control costs, as well as provide ease of administration
and valuable protection for employees.
Stop Loss. Our stop loss insurance provides coverage for mid-sized to large
employers that self-insure their medical claims. These employers provide a health
plan to their employees and generally pay all plan-related claims and administrative
expenses. Our stop loss product helps these employers contain their health expenses
by reimbursing specified claim amounts above certain deductibles and by reimbursing
claims that exceed a specified limit. We offer this product via two types of
protection—individual stop loss insurance and aggregate stop loss insurance.
The primary difference between these two types is a varying deductible; both
coverages are re-priced and renewable annually.