Voya Financial and Milliman Enter Into Agreement For Closed Block Variable Annuity Segment Services
June 2, 2014 by Voya Financial, Inc.
NEW YORK, June 2, 2014 /PRNewswire/ — Voya Financial, Inc. (NYSE: VOYA) announced today that it has entered into an agreement with Milliman, Inc. whereby Voya Financial will outsource the actuarial valuation, modeling and hedging functions for its Closed Block Variable Annuity (CBVA) segment to Milliman.
Under the agreement, Milliman will perform the calculation of financial reporting and risk metrics, along with the analytics used to determine hedge positions. Voya Financial will continue to oversee and manage the CBVA segment and also retain full accountability for assumptions and methodologies, as well as the setting of hedge objectives and execution of hedge positions.
“Following our move to cease offering variable annuities with guarantee features in 2010, and having also completed significant work to ensure the CBVA segment is appropriately managed to protect regulatory and rating agency capital, we are now taking an appropriate next step by outsourcing certain functions for this run-off block,” said Michael Smith, chief executive officer, Insurance Solutions and the executive with management oversight of Voya Financial’s CBVA segment. “Our agreement with Milliman allows us to create a more streamlined framework for the CBVA segment and achieve a more variable cost structure for this run-off block.”
“By working with Milliman, we will benefit from their talent, hedging expertise, controls and state-of-the-art variable annuity modeling solutions,” said Christine Dugan, head of the CBVA segment, Voya Financial. “We will work closely with Milliman to ensure a smooth transition of these functions as well as the continuation of a secure and stable control environment. Importantly, Voya Financial will maintain overall control and oversight of the block.”
“We are delighted to have the opportunity to work with Voya Financial on their CBVA segment,” said Bruce Winterhof, Milliman’s Life Insurance Practice Director. “We believe that the breadth of our actuarial and hedging expertise and systems solutions will provide Voya Financial with the necessary tools to manage the block using industry leading techniques on a long-term basis and as the environment continues to evolve.”
Voya Financial, which has had a long-term relationship with Milliman, will complete parallel financial closing actions with Milliman prior to final implementation. The transition is expected to be completed in 2015.
In 2010, Voya Financial stopped actively writing new retail variable annuity products with substantial guarantee features and separated its CBVA segment from its Ongoing Businesses.
Accordingly, this run-off segment is classified as a closed block and is managed separately from Voya Financial’s Ongoing Businesses – Retirement Solutions, Investment Management and Insurance Solutions.
| Media Contacts: | Investor Contact: |
| Christopher Breslin | Darin Arita |
| Voya Financial | Voya Financial |
| (212) 309-8941 | (212) 309-8999 |
| Christopher.Breslin@voya.com | IR@voya.com |
| Jeremy Engdahl-Johnson | |
| Milliman, Inc. | |
| (646) 473-3021 | |
| jeremy.engdahl-johnson@milliman.com |
About Voya Financial
Voya Financial, Inc. (NYSE: VOYA), which has rebranded from ING U.S., is composed of premier retirement, investment and insurance companies serving the financial needs of approximately 13 million individual and institutional customers in the United States. The company’s vision is to be America’s Retirement CompanyTM and its guiding principle is centered on solving the most daunting financial challenge facing Americans today — retirement readiness. Working directly with clients and through a broad group of financial intermediaries, independent producers, affiliated advisors and dedicated sales specialists, Voya provides a comprehensive portfolio of asset accumulation, asset protection and asset distribution products and services. With a dedicated workforce of approximately 7,000 employees, Voya is grounded in a clear mission to make a secure financial future possible — one person, one family, one institution at a time. For more information, visit voya.com. Follow Voya Financial on Facebook and Twitter @Voya.
About Milliman
Milliman is among the world’s largest providers of actuarial and related products and services. The firm has consulting practices in life insurance and financial services, healthcare, property & casualty insurance, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit www.milliman.com.
SOURCE Voya Financial, Inc.
