...Strong Statutory Capital: The statutory capitalization of the primary life insurance operating companies of Voya Financial, Inc. (Voya) remains supportive of the ratings. Fitch Ratings expects reported RBC to remain in the 425%-450% range over the intermediate term, driven by improved statutory operating performance offset by distributions to the holding company. Reduced Financial Leverage: Financial leverage was approximately 23% at June 30, 2014, down significantly from 56% at year-end 2010. Improved Debt-Servicing Capacity: GAAP-adjusted operating earnings-based interest coverage was 7.4x through the first half of 2014 and statutory interest coverage was 4.5x. Cash at the holding company was $879 million at June 30, 2014, in excess of management's target of 24 months liquidity, or roughly $450 million. Volatility from Variable Annuities (VA): Voya's $44 billion closed-block VA has generated capital and earnings volatility. However, Fitch believes the actions Voya has taken to contain...
