...Strong Statutory Capital: The statutory capitalization of the primary life insurance operating companies of ING U.S., Inc. (ING U.S.) remains supportive of the ratings. Fitch Ratings expects reported RBC to remain in a range of 425%-450% over the intermediate term, driven by improved statutory operating performance offset by distributions to the holding company. Reduced Financial Leverage: At Dec. 31, 2013, financial leverage was approximately 24%, down significantly from 56% at year-end 2010. Improved Debt-Servicing Capacity: Statutory interest coverage will improve in 2014 because ING U.S. has been able to transfer amounts out of paid-in capital into unassigned funds, thereby creating a positive earned surplus account and ordinary statutory dividend capacity. Volatility from Variable Annuities (VA): ING U.S.'s closed block VA amounted to $45 billion at year-end 2013. This block generated capital and earnings volatility and it accounted for losses in recent years. However, Fitch believes...
