Exhibit 12.1
Voya Financial, Inc.
Ratio of Earnings to Fixed Charges
Year Ended December 31, | Years Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
($ in millions) | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 528 | $ | 10 | $ | 476 | $ | 635 | $ | 1,559 | ||||||||||
Less: Undistributed income (loss) from investees | 62 | 19 | 2 | 8 | 25 | |||||||||||||||
Less: Net income (loss) attributed to noncontrolling interest that have not incurred fixed charges | 37 | 6 | 91 | 132 | 64 | |||||||||||||||
Adjusted earnings before fixed charges(1) | 429 | (15 | ) | 383 | 495 | 1,470 | ||||||||||||||
Add: Fixed charges | ||||||||||||||||||||
Interest and debt issuance costs(2)(3) | 260 | 285 | 459 | 400 | 366 | |||||||||||||||
Estimated interest component of rent expense | 9 | 9 | 9 | 10 | 12 | |||||||||||||||
Total fixed charges excluding interest credited to contract owner account balances | 269 | 294 | 468 | 410 | 378 | |||||||||||||||
Interest credited to contract owner account balances | 1,606 | 1,604 | 1,537 | 1,570 | 1,625 | |||||||||||||||
Total fixed charges | $ | 1,875 | $ | 1,898 | $ | 2,005 | $ | 1,980 | $ | 2,003 | ||||||||||
Total earnings and fixed charges | $ | 2,304 | $ | 1,883 | $ | 2,388 | $ | 2,475 | $ | 3,473 | ||||||||||
Ratio of earnings to fixed charges(1) | 1.23 | NM | 1.19 | 1.25 | 1.73 | |||||||||||||||
Total earnings and fixed charges excluding interest credited to contract owner account balances | $ | 698 | $ | 279 | $ | 851 | $ | 905 | $ | 1,848 | ||||||||||
Ratio of earnings to fixed charges excluding interest credited to contract owner account balances(1) | 2.59 | NM | 1.82 | 2.21 | 4.89 |
(1) Earnings were insufficient to cover fixed charges at a 1:1 ratio by $15 million for the year ended December 31, 2016. These ratios are presented as "NM" or not meaningful.
(2) Interest and debt issuance costs include interest costs related to variable interest entities of $80 million, $102 million, $272 million, $210 million, and $181 million for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively. Excluding these costs, as well as the earnings of the variable interest entities, would result in a ratio of earnings to fixed charges of 1.15, NM, 1.20, 1.22 and 1.74 for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively. Excluding these costs, as well as the earnings of the variable interest entities, would result in a ratio of earnings to fixed charges excluding interest credited to contract owner account balances of 2.41, NM, 2.75, 2.94 and 7.83 for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively.
(3) | Interest and debt issuance costs exclude loss related to the early extinguishment of debt of $4 million for the years ended December 31, 2017 and $105 million and $10 million for the years ended December 31, 2016 and 2015, respectively. |