vriac-20220630

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

——————————————————————

FORM 10-Q


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 033-23376

VOYA RETIREMENT INSURANCE & ANNUITY CO

(Exact name of registrant as specified in its charter)


Connecticut			71-0294708
(State or other jurisdiction of incorporation or organization)			(IRS Employer Identification No.)


One Orange Way
Windsor	Connecticut	06095-4774
(Address of principal executive offices)		(Zip Code)

(860) 580-4646

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. ý Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ý Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	x	Smaller reporting company	☐
		Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ý No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ☐ Yes ☐ No

APPLICABLE ONLY TO CORPORATE ISSUERS:

As of August 5, 2022, 55,000 shares of Common Stock, $50 par value were outstanding, all of which were directly owned by Voya Holdings Inc.

NOTE: WHEREAS VOYA RETIREMENT INSURANCE AND ANNUITY COMPANY MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q, THIS FORM IS BEING FILED WITH THE REDUCED DISCLOSURE FORMAT PURSUANT TO GENERAL INSTRUCTION H(2).


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Form 10-Q for the period ended June 30, 2022

INDEX


		PAGE
PART I.	FINANCIAL INFORMATION (UNAUDITED)


Item 1.	Financial Statements:
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Comprehensive Income	7
	Condensed Consolidated Statements of Changes in Shareholder's Equity	8
	Condensed Consolidated Statements of Cash Flows	10
	Notes to Condensed Consolidated Financial Statements:	11
	1. Business, Basis of Presentation and Significant Accounting Policies	11
	2. Investments	15
	3. Derivative Financial Instruments	27
	4. Fair Value Measurements	33
	5. Deferred Policy Acquisition Costs and Value of Business Acquired	44
	6. Reinsurance	44
	7. Accumulated Other Comprehensive Income (Loss)	46
	8. Income Taxes	49
	9. Financing Agreements	50
	10. Commitments and Contingencies	50
	11. Related Party Transactions	52

Item 2.	Management's Narrative Analysis of the Results of Operations and Financial Condition	53

Item 4.	Controls and Procedures	69


PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	69

Item 1A.	Risk Factors	69



Item 6.	Exhibits	69

Exhibit Index		70

Signature		71


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Table of Contents

As used in this Quarterly Report on Form 10-Q, "VRIAC" refers to Voya Retirement Insurance and Annuity Company and the "Company," "we," "our" and "us" refer to VRIAC and its wholly owned subsidiaries.

NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including "Risk Factors" and "Management’s Narrative Analysis of the Results of Operations and Financial Condition" contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements relating to future developments in our business or expectations for our future financial performance and any statement not involving a historical fact. Forward-looking statements use words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. Actual results, performance or events may differ materially from those projected in any forward-looking statement due to, among other things, (i) general economic conditions, particularly economic conditions in our core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) the effects of natural or man-made disasters, including pandemic events and specifically the current COVID-19 pandemic event, (v) mortality and morbidity levels, (vi) persistency and lapse levels, (vii) interest rates, (viii) currency exchange rates, (ix) general competitive factors, (x) changes in laws and regulations, including those relating to insurance regulatory reform initiatives applicable to captive reinsurance entities and those made pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act or the U.S. Department of Labor's final rules and exemptions pertaining to the fiduciary status of providers of investment advice, (xi) changes in the policies of governments and/or regulatory authorities, and (xii) our parent company, Voya Financial, Inc.'s ability to successfully manage the separation of the Individual Life business that closed on January 4, 2021, including the transition services on the expected timeline and economic terms. Factors that may cause actual results to differ from those in any forward-looking statement also include those described under "Risk Factors" and "Management’s Narrative Analysis of the Results of Operations and Financial Condition" in the Annual Report on Form 10-K for the year ended December 31, 2021 (File No. 033-23376) (the "Annual Report on Form 10-K").

The risks included here are not exhaustive. Current reports on Form 8-K and other documents filed with the Securities and Exchange Commission ("SEC") include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.


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Table of Contents

PART I. FINANCIAL INFORMATION (UNAUDITED)

Item 1. Financial Statements

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Balance Sheets

June 30, 2022 (Unaudited) and December 31, 2021

(In millions, except share and per share data)


	June 30, 2022		December 31, 2021
Assets
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost of $22,784 as of 2022 and $22,349 as of 2021; allowance for credit losses of $33 as of 2022 and $48 as of 2021)	$	21,239	$	24,360
Fixed maturities, at fair value using the fair value option	1,248		1,253

Equity securities, at fair value (cost of $144 as of 2022 and $141 as of 2021)	144		141

Mortgage loans on real estate	4,174		4,233
Less: Allowance for credit losses	10		11
Mortgage loans on real estate, net	4,164		4,222

Policy loans	163		171
Limited partnerships/corporations	1,051		980
Derivatives	240		149
Securities pledged (amortized cost of $849 as of 2022 and $725 as of 2021)	799		799
Other investments	142		143
Total investments	29,190		32,218
Cash and cash equivalents	282		436
Short-term investments under securities loan agreements, including collateral delivered	871		808
Accrued investment income	276		285


Premiums receivable and reinsurance recoverable	3,478		3,598
Less: Allowance for credit losses	9		—
Premiums receivable and reinsurance recoverable, net	3,469		3,598
Deferred policy acquisition costs, Value of business acquired and Sales inducements to contract owners	1,271		422

Short-term loan to affiliate	—		130
Current income tax recoverable	15		—
Deferred income taxes	370		—
Due from affiliates	63		70
Property and equipment	46		72
Other assets (net of allowance for credit loss of $3 as of 2022 and $0 as of 2021)	1,651		1,635
Assets held in separate accounts	77,421		96,964
Total assets	$	114,925	$	136,638


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Balance Sheets

June 30, 2022 (Unaudited) and December 31, 2021

(In millions, except share and per share data)


	June 30, 2022		December 31, 2021
Liabilities and Shareholder's Equity
Future policy benefits and contract owner account balances	$	33,739	$	32,926
Payable for securities purchased	79		—
Payables under securities loan agreements, including collateral held	853		811



Due to affiliates	91		110
Derivatives	261		144
Current income taxes	—		42
Deferred income taxes	—		227
Other liabilities	436		384
Liabilities related to separate accounts	77,421		96,964
Total liabilities	$	112,880	$	131,608

Commitments and Contingencies (Note 10)

Shareholder's equity:
Common stock (100,000 shares authorized, 55,000 issued and outstanding as of 2022 and 2021, respectively; $50 par value per share)	3		3
Additional paid-in capital	2,778		3,191
Accumulated other comprehensive income (loss)	(759)		1,423
Retained earnings (deficit)	23		413
Total shareholder's equity	2,045		5,030
Total liabilities and shareholder's equity	$	114,925	$	136,638


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Statements of Operations

For the Three and Six Months Ended June 30, 2022 and 2021 (Unaudited)

(In millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021

Revenues:
Net investment income	$	420	$	482	$	869	$	971
Fee income	246		271		509		530
Premiums	3		6		11		(2,441)
Broker-dealer commission revenue	1		—		1		1
Net gains (losses):
Total impairments	(2)		—		(7)		—


Other net gains (losses)	(134)		(35)		(311)		405
Total net gains (losses)	(136)		(35)		(318)		405
Other revenue	17		10		28		17
Total revenues	551		734		1,100		(517)
Benefits and expenses:
Interest credited and other benefits to contract owners/policyholders	196		176		393		(1,880)
Operating expenses	303		307		599		592
Broker-dealer commission expense	1		—		1		1
Net amortization of Deferred policy acquisition costs and Value of business acquired	37		29		68		78


Total benefits and expenses	537		512		1,061		(1,209)
Income (loss) before income taxes	14		222		39		692
Income tax expense (benefit)	(8)		36		(15)		123
Net income (loss)	$	22	$	186	$	54	$	569


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

			6

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Statements of Comprehensive Income

For the Three and Six Months Ended June 30, 2022 and 2021 (Unaudited)

(In millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income (loss)	$	22	$	186	$	54	$	569
Other comprehensive income (loss), before tax:
Unrealized gains (losses) on securities	(1,344)		446		(2,762)		(312)

Pension and other postretirement benefits liability	—		(1)		—		(1)
Other comprehensive income (loss), before tax	(1,344)		445		(2,762)		(313)
Income tax expense (benefit) related to items of other comprehensive income (loss)	(282)		93		(580)		(66)
Other comprehensive income (loss), after tax	(1,062)		352		(2,182)		(247)
Comprehensive income (loss)	$	(1,040)	$	538	$	(2,128)	$	322


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Statements of Changes in Shareholder’s Equity

For the Three Months Ended June 30, 2022 and 2021 (Unaudited)

(In millions)


	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings (Deficit)		Total Shareholder's Equity
Balance as of April 1, 2022	$	3	$	3,191	$	303	$	397	$	3,894






Comprehensive income (loss):
Net income (loss)	—		—		—		22		22
Other comprehensive income (loss), after tax	—		—		(1,062)		—		(1,062)
Total comprehensive income (loss)									(1,040)
Dividends paid and distributions of capital	—		(413)		—		(396)		(809)



Balance as of June 30, 2022	$	3	$	2,778	$	(759)	$	23	$	2,045


Balance as of April 1, 2021	$	3	$	3,196	$	1,283	$	444	$	4,926






Comprehensive income (loss):
Net income (loss)	—		—		—		186		186
Other comprehensive income (loss), after tax	—		—		352		—		352
Total comprehensive income (loss)									538
Dividends paid and distributions of capital	—		(5)		—		(474)		(479)



Balance as of June 30, 2021	$	3	$	3,191	$	1,635	$	156	$	4,985


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

			8

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Statements of Changes in Shareholder’s Equity

For the Six Months Ended June 30, 2022 and 2021 (Unaudited)

(In millions)



	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings (Deficit)		Total Shareholder's Equity
Balance as of January 1, 2022	$	3	$	3,191	$	1,423	$	413	$	5,030





Comprehensive income (loss):
Net income (loss)	—		—		—		54		54
Other comprehensive income (loss), after tax	—		—		(2,182)		—		(2,182)
Total comprehensive income (loss)									(2,128)
Dividends paid and distributions of capital	—		(413)		—		(444)		(857)



Balance as of June 30, 2022	$	3	$	2,778	$	(759)	$	23	$	2,045


Balance as of January 1, 2021	$	3	$	2,873	$	1,882	$	139	$	4,897





Comprehensive income (loss):
Net income (loss)	—		—		—		569		569
Other comprehensive income (loss), after tax	—		—		(247)		—		(247)
Total comprehensive income (loss)									322
Dividends paid and distributions of capital	—		(5)		—		(552)		(557)
Contribution of capital	—		323		—		—		323

Balance as of June 30, 2021	$	3	$	3,191	$	1,635	$	156	$	4,985


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2022 and 2021 (Unaudited)

(In millions)


	Six Months Ended June 30,
	2022		2021
Net cash provided by operating activities	$	661	$	477
Cash Flows from Investing Activities:
Proceeds from the sale, maturity, disposal or redemption of:
Fixed maturities	2,215		2,411

Equity securities	—		58
Mortgage loans on real estate	353		261
Limited partnerships/corporations	48		255
Acquisition of:
Fixed maturities	(3,125)		(2,669)
Fixed maturities, trading	—		(33)
Equity securities	—		(173)
Mortgage loans on real estate	(292)		(287)
Limited partnerships/corporations	(96)		(133)
Derivatives, net	100		(31)
Policy loans, net	8		8

Short-term loan to affiliate, net	130		653
Collateral received (delivered), net	(21)		(18)
Receipts on deposit asset contracts	57		26
Other, net	(3)		4
Net cash (used in) provided by investing activities	(626)		332
Cash Flows from Financing Activities:
Deposits received for investment contracts	2,851		2,083
Maturities and withdrawals from investment contracts	(2,244)		(2,477)



Proceeds from loans with affiliates, net	61		63


Dividends paid and distributions of capital	(857)		(552)
Capital contribution from parent	—		20
Net cash (used in) financing activities	(189)		(863)
Net increase (decrease) in cash and cash equivalents	(154)		(54)
Cash and cash equivalents, beginning of period	436		360
Cash and cash equivalents, end of period	$	282	$	306

Supplemental Cash flow information:
Noncash capital contribution from parent	$	—	$	298


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

1. Business, Basis of Presentation and Significant Accounting Policies

Business

Voya Retirement Insurance and Annuity Company ("VRIAC") is a stock life insurance company domiciled in the State of Connecticut. VRIAC and its wholly owned subsidiaries (collectively, the "Company") provide financial products and services in the United States. VRIAC is authorized to conduct its insurance business in all states and in the District of Columbia, Guam, Puerto Rico and the Virgin Islands.

VRIAC is a direct, wholly owned subsidiary of Voya Holdings Inc. ("Parent"), which is a direct, wholly owned subsidiary of Voya Financial, Inc. ("Voya Financial").

The Company derives its revenue mainly from (a) Investment income earned on investments, (b) Fee income generated from separate account assets supporting variable options under variable annuity contract investments, as designated by contract owners, (c) Premiums, (d) Net gains (losses) on investments and changes in fair value of embedded derivatives on product guarantees, and (e) Other revenue which includes certain other fees. The Company's benefits and expenses primarily consist of (a) Interest credited and other benefits to contract owners/policyholders, (b) Operating expenses, which include expenses related to the selling and servicing of the various products offered by us and other general business expenses, and (c) Amortization of Deferred acquisition costs ("DAC") and Value of business acquired ("VOBA"). In addition, the Company collects broker-dealer commission revenues through Voya Financial Partners, LLC ("VFP"), which are, in turn, paid to broker-dealers and expensed.

The Company offers qualified and non-qualified annuity contracts that include a variety of funding and payout options for individuals and employer-sponsored retirement plans qualified under Internal Revenue Code Sections 401, 403, 408, 457 and 501, as well as non-qualified deferred compensation plans and related services. The Company's products are offered primarily to public and private school systems, higher education institutions, hospitals and healthcare facilities, not-for-profit organizations, state and local governments, small to mid-sized corporations and individuals. The Company also provides stable value investment options, including separate account guaranteed investment contracts (e.g., GICs) and synthetic GICs, to institutional clients. Pension risk transfer group annuity solutions were previously offered to institutional plan sponsors who needed to transfer their defined benefit plan obligations to the Company. The Company discontinued sales of these solutions to better align business activities to the Company's priorities. This business was transferred as part of the Individual Life Transaction described below. The Company's products are generally distributed through independent brokers and advisors, third-party administrators and consultants.

Products offered by the Company include deferred and immediate (i.e., payout) annuity contracts. The Company's products also include programs offered to qualified plans and non-qualified deferred compensation plans that package administrative and record-keeping services, participant education, and retirement readiness planning tools along with a variety of investment options, including proprietary and non-proprietary mutual funds and variable and fixed investment options. In addition, the Company offers wrapper agreements entered into with retirement plans, which contain certain benefit responsive guarantees (i.e., guarantees of principal and previously accrued interest for benefits paid under the terms of the plan) with respect to portfolios of plan-owned assets not invested with the Company. Stable value products are also provided to institutional plan sponsors where the Company may or may not be providing other employer sponsored products and services.

The Company has one operating segment.

On January 4, 2021, VRIAC's ultimate parent, Voya Financial completed a series of transactions pursuant to a Master Transaction Agreement (the “Resolution MTA”) entered into on December 18, 2019 with Resolution Life U.S. Holdings Inc., a Delaware corporation (“Resolution Life US”), pursuant to which Resolution Life US acquired all of the shares of the capital stock of Security Life of Denver Company ("SLD") and Security Life of Denver International Limited ("SLDI"), including the capital stock of several subsidiaries of SLD and SLDI. Concurrently with the sale, SLD entered into reinsurance agreements with ReliaStar Life Insurance Company ("RLI"), ReliaStar Life Insurance Company of New York (“RLNY”), and VRIAC, each of which is a direct or indirect wholly owned subsidiary of Voya Financial. The reinsurance agreements along with the sale of the legal entities noted above (referred to as the "Individual Life Transaction") resulted in the disposition of substantially all of Voya Financial's life insurance and legacy non-retirement annuity businesses and related assets. See the Reinsurance Note in Part II, Item 8. of our Annual Report on Form 10-K for more information regarding the Individual Life Transaction.


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Effective as of March 1, 2021, VRIAC acquired 49.9% of the issued and outstanding common stock of Voya Special Investments, Inc. from Voya Financial. The investment has been accounted for as an equity method investment and recognized within Other investments in Condensed Consolidated Balance Sheets. Also, effective as of March 1, 2021, the Company acquired $80 of SLD issued surplus notes and $73 of Resolution (Life U.S. Intermediate Holdings Ltd.) issued preferred shares from affiliated entities, which were received in connection with the Individual Life Transaction.

On June 9, 2021, Voya Financial completed the sale of the independent financial planning channel of Voya Financial Advisors, Inc. ("VFA") to Cetera Financial Group, Inc. (“Cetera”), one of the nation’s largest networks of independently managed broker-dealers. VFA is one of the channels through which VRIAC distributes its products. In connection with this transaction, VFA transferred more than 800 independent financial professionals serving retail customers with approximately $38 billion in assets under advisement to Cetera, while retaining approximately 500 field and phone-based financial professionals who support our business.

Impairment of Long-lived Assets

The carrying value of long-lived assets is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An impairment loss is recognized whenever the carrying amount of an asset exceeds its estimated fair value. The amount of the impairment loss is calculated as the excess of the asset’s carrying value over its fair value. During the second quarter of 2022, the Company had a triggering event related to a decrease in the market price of its office building. Consequently, the Company determined its fair value, based on an appraisal, to be lower than its carrying value. As a result, the Company recognized an impairment loss of $32, which is included in Operating expenses in the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2022.

Basis of Presentation

The accompanying Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and are unaudited. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. The inputs into the Company's estimates and assumptions consider the economic implications of COVID-19 on the Company's critical and significant accounting estimates. Those estimates are inherently subject to change and actual results could differ from those estimates, and the differences may be material to the Condensed Consolidated Financial Statements.

The Condensed Consolidated Financial Statements include the accounts of VRIAC and its wholly owned subsidiaries, VFP, VIPS, and VRA. Intercompany transactions and balances have been eliminated.

The accompanying Condensed Consolidated Financial Statements reflect adjustments (including normal, recurring adjustments) necessary to present fairly the financial position of the Company as of June 30, 2022, and its results of operations, comprehensive income, and changes in shareholder's equity for the three and six months ended June 30, 2022 and 2021, and its statements of cash flows for the six months ended June 30, 2022 and 2021, in conformity with U.S. GAAP. Interim results are not necessarily indicative of full year performance.

The December 31, 2021 Consolidated Balance Sheet is from the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K, filed with the SEC. Therefore, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K.


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Future Adoption of Accounting Pronouncements

The following table provides a description of future adoptions of new accounting standards that may have an impact on the Company's financial statements when adopted:


Standard	Description of Requirements	Effective Date and Transition Provisions	Effect on the Financial Statements or Other Significant Matters
Accounting Standards Update (“ASU”) 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions	This standard, issued in June 2022, clarifies that contractual restrictions on equity security sales are not considered part of the security unit of account and, therefore, are not considered in measuring fair value. In addition, the restrictions cannot be recognized and measured as separate units of account. Disclosures on such restrictions are also required.	The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, and are required to be applied prospectively, with any adjustments from the adoption recognized in earnings and disclosed.	The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2022-03.
ASU 2022-02, Troubled Debt Restructurings ("TDRs") and Vintage Disclosures	This standard, issued in March 2022, eliminates the accounting guidance on troubled debt restructurings for creditors, requires enhanced disclosures for creditors about loan modifications when a borrower is experiencing financial difficulty, and requires public business entities to include current-period gross write-offs in the vintage disclosure tables.	The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Entities have the option to apply the amendments involving the recognition and measurement of TDRs using a modified retrospective transition method; the other amendments are required to be applied prospectively.	The Company is currently in the process of determining the impact of adoption of the provisions of ASU 2022-02.
ASU 2020-04, Reference Rate Reform	This standard, issued in March 2020, provides temporary optional expedients and exceptions for applying U.S. GAAP principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January, 2021 the Financial Accounting Standards Board ("FASB") issued ASU 2021-01 which clarified the scope of relief related to ASU 2020-04.	The amendments are effective as of March 12, 2020, the issuance date of the ASU. An entity may elect to apply the amendments prospectively through December 31, 2022.	The Company expects that it may elect to apply some of the expedients and exceptions provided in ASU 2020-04; however, the Company is still evaluating its options under this guidance as the reference rate reform adoption process continues. To date, the adoption of the ASU has not had an impact on the Company’s financial condition and results of operations. The Company will continue to evaluate the impacts of reference rate reform on contract modifications and hedging relationships as transition progresses.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)


Standard	Description of Requirements	Effective Date and Transition Provisions	Effect on the Financial Statements or Other Significant Matters
ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts	This standard, issued in August 2018, changes the measurement and disclosures of insurance liabilities and DAC for long-duration contracts issued by insurers. In addition to expanded disclosures, the standard’s requirements include: •Annual review and, if necessary, update of cash flow assumptions used to measure the liability for future policy benefits for nonparticipating traditional and limited payment insurance contracts. The effect of updating cash flow assumptions will be measured on a retrospective catch-up basis and presented in the Statement of Operations in the period in which the update is made. The rate used to discount these liabilities will be required to be updated quarterly, with related changes in the liability recorded in Accumulated other comprehensive income ("AOCI"). •Fair value measurement of contract guarantee features qualifying as Market Risk Benefits ("MRB"), with changes in fair value recognized in the Statement of Operations, except for changes in the instrument-specific credit risk, which will be recorded in AOCI. •Amortization of DAC on a constant level basis over the expected term of the contracts, without reference to revenue or profitability. Elimination of adjustments in AOCI related to DAC and balances amortized on a basis consistent with DAC. DAC will no longer be subjected to loss recognition testing.	The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Initial adoption for the liability for future policy benefits and DAC is required to be reported using either a full retrospective or modified retrospective approach. For market risk benefits, full retrospective application is required.	Evaluation of the implications of these requirements and related potential financial statement impacts is continuing, in accordance with an established governance framework and implementation plan, which includes design and testing of internal controls related to new processes. The Company does not plan to early adopt the ASU and expects to apply a modified retrospective transition method for the liability for future policy benefits and DAC. The Company expects the January 1, 2021 transition impact will increase Total shareholder’s equity by $0.5 billion to $0.7 billion, primarily driven by a positive impact to AOCI resulting from the reversal of DAC/VOBA adjustment balances of approximately $1.0 billion after tax, offset by an unfavorable impact to AOCI of between $0.2 billion and $0.4 billion after tax, resulting from the remeasurement of Future policy benefits and Reinsurance recoverables using January 1, 2021 discount rates. The expected transition effect on Total shareholder's equity will also include an unfavorable impact on Retained earnings (deficit) of approximately $0.1 billion after tax associated with the establishment of MRB liabilities related to guaranteed minimum benefits on certain deferred annuity contracts. The majority of the ASU 2018-12 transition impact of between $0.2 billion and $0.4 billion associated with Future policy benefits and Reinsurance recoverables and approximately 20% of the $0.1 billion transition impact associated with the establishment of MRB liabilities are related to business that was reinsured to Resolution Life US in January 2021. The ultimate effects the standard will have on the financial statements are highly dependent on policyholder behavior, actuarial assumptions and macroeconomic conditions, particularly interest rates and spreads, which may materially change ASU 2018-12-related equity impacts in periods subsequent to transition. The Company estimates the impact of ASU 2018-12 will shift to a reduction of Total shareholder’s equity as of June 30, 2022, primarily related to a negative impact in AOCI resulting from the reversal of DAC/VOBA adjustment balances, which have declined significantly since January 2021 due to increases in interest rates and spreads. While rising interest rates since January 1, 2021 will result in a less unfavorable impact on AOCI due to remeasurement of liability for Future policy benefits, this will be materially offset by the impact from remeasurement of Reinsurance recoverables.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

2. Investments

Fixed Maturities

Available-for-sale and fair value option ("FVO") fixed maturities were as follows as of June 30, 2022:


	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		Allowance for credit losses
Fixed maturities:
U.S. Treasuries	$	559	$	50	$	14	$	—	$	595	$	—
U.S. Government agencies and authorities	20		—		2		—		18		—
State, municipalities and political subdivisions	708		4		47		—		665		—
U.S. corporate public securities	7,337		124		776		—		6,684		1
U.S. corporate private securities	3,743		24		231		—		3,536		—
Foreign corporate public securities and foreign governments(1)	2,372		25		244		—		2,135		18
Foreign corporate private securities(1)	2,692		11		136		—		2,554		13




Residential mortgage-backed securities	3,154		36		107		3		3,086		—
Commercial mortgage-backed securities	2,937		7		200		—		2,743		1
Other asset-backed securities	1,359		1		90		—		1,270		—

Total fixed maturities, including securities pledged	24,881		282		1,847		3		23,286		33
Less: Securities pledged	849		14		64		—		799		—
Total fixed maturities	$	24,032	$	268	$	1,783	$	3	$	22,487	$	33

(1) Primarily U.S. dollar denominated.

(2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net gains (losses) in the Condensed Consolidated Statements of Operations.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Available-for-sale and FVO fixed maturities were as follows as of December 31, 2021:


	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		Allowance for credit losses
Fixed maturities:
U.S. Treasuries	$	554	$	137	$	—	$	—	$	691	$	—
U.S. Government agencies and authorities	20		—		—		—		20		—
State, municipalities and political subdivisions	716		88		1		—		803		—
U.S. corporate public securities	7,314		994		39		—		8,269		—
U.S. corporate private securities	3,620		334		15		—		3,939		—
Foreign corporate public securities and foreign governments(1)	2,352		253		14		—		2,591		—
Foreign corporate private securities(1)	2,563		188		1		—		2,703		47




Residential mortgage-backed securities	3,081		97		20		7		3,164		1
Commercial mortgage-backed securities	2,766		130		15		—		2,881		—
Other asset-backed securities	1,341		16		6		—		1,351		—

Total fixed maturities, including securities pledged	24,327		2,237		111		7		26,412		48
Less: Securities pledged	725		74		—		—		799		—
Total fixed maturities	$	23,602	$	2,163	$	111	$	7	$	25,613	$	48

(1) Primarily U.S. dollar denominated.

The amortized cost and fair value of fixed maturities, including securities pledged, as of June 30, 2022, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. Mortgage-backed securities ("MBS") and Other asset-backed securities ("ABS") are shown separately because they are not due at a single maturity date.


	Amortized Cost		Fair Value
Due to mature:
One year or less	$	510	$	493
After one year through five years	3,192		3,104
After five years through ten years	3,825		3,616
After ten years	9,904		8,974
Mortgage-backed securities	6,091		5,829
Other asset-backed securities	1,359		1,270
Fixed maturities, including securities pledged	$	24,881	$	23,286

The investment portfolio is monitored to maintain a diversified portfolio on an ongoing basis. Credit risk is mitigated by monitoring concentrations by issuer, sector and geographic stratification and limiting exposure to any one issuer.

As of June 30, 2022 and December 31, 2021, the Company did not have any investments in a single issuer, other than obligations of the U.S. Government and government agencies, with a carrying value in excess of 10% of the Company's Total Shareholder's Equity.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following tables present the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated:


	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Fair Value
June 30, 2022
Communications	$	941	$	23	$	77	$	887
Financial	3,035		32		301		2,766
Industrial and other companies	6,810		55		614		6,251
Energy	1,403		40		91		1,352
Utilities	2,692		27		193		2,526
Transportation	888		4		74		818
Total	$	15,769	$	181	$	1,350	$	14,600

December 31, 2021
Communications	$	883	$	154	$	2	$	1,035
Financial	2,713		275		13		2,975
Industrial and other companies	7,004		713		26		7,691
Energy	1,385		216		14		1,587
Utilities	2,658		310		10		2,958
Transportation	854		71		1		924
Total	$	15,497	$	1,739	$	66	$	17,170

The Company has elected the FVO for certain of its fixed maturities to better match the measurement of assets and liabilities in the Condensed Consolidated Statements of Operations. Certain collateralized mortgage obligations ("CMOs"), primarily interest-only and principal-only strips, are accounted for as hybrid instruments and reported at fair value with changes in the fair

value recorded in Other net gains (losses) in the Condensed Consolidated Statements of Operations.

The Company invests in various categories of CMOs, including CMOs that are not agency-backed, that are subject to different degrees of risk from changes in interest rates and defaults. The principal risks inherent in holding CMOs are prepayment and extension risks related to significant decreases and increases in interest rates resulting in the prepayment of principal from the underlying mortgages, either earlier or later than originally anticipated. As of June 30, 2022 and December 31, 2021, approximately 43.7% and 45.1%, respectively, of the Company’s CMO holdings, were invested in the above mentioned types of CMOs such as interest-only or principal-only strips, that are subject to more prepayment and extension risk than traditional CMOs.

Public corporate fixed maturity securities are distinguished from private corporate fixed maturity securities based upon the manner in which they are transacted. Public corporate fixed maturity securities are issued initially through market intermediaries on a registered basis or pursuant to Rule 144A under the Securities Act of 1933 (the "Securities Act") and are traded on the secondary market through brokers acting as principal. Private corporate fixed maturity securities are originally issued by borrowers directly to investors pursuant to Section 4(a)(2) of the Securities Act, and are traded in the secondary market directly with counterparties, either without the participation of a broker or in agency transactions.

Repurchase Agreements

As of June 30, 2022 and December 31, 2021, the Company did not have any securities pledged in dollar rolls, repurchase agreement transactions or reverse repurchase agreements.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Securities Lending

The Company engages in securities lending whereby the initial collateral is required at a rate of 102% of the market value of the loaned securities. The lending agent retains the collateral and invests it in high quality liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. The lending agent indemnifies the Company against losses resulting from the failure of a counterparty to return securities pledged where collateral is insufficient to cover the loss. As of June 30, 2022 and December 31, 2021, the fair value of loaned securities was $695 and $739, respectively, and is included in Securities pledged on the Condensed Consolidated Balance Sheets.

If cash is received as collateral, the lending agent retains the cash collateral and invests it in short-term liquid assets on behalf of the Company. As of June 30, 2022 and December 31, 2021, cash collateral retained by the lending agent and invested in short-term liquid assets on the Company's behalf was $619 and $677, respectively, and is recorded in Short-term investments under securities loan agreements, including collateral delivered on the Condensed Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, liabilities to return collateral of $619 and $677, respectively, are included in Payables under securities loan agreements, including collateral held, on the Condensed Consolidated Balance Sheets.

The Company accepts non-cash collateral in the form of securities. The securities retained as collateral by the lending agent may not be sold or re-pledged, except in the event of default, and are not reflected on the Company’s Condensed Consolidated Balance Sheets. This collateral generally consists of U.S. Treasury, U.S. Government agency securities and MBS pools. As of June 30, 2022 and December 31, 2021, the fair value of securities retained as collateral by the lending agent on the Company’s behalf was $105 and $87, respectively.

The following table presents borrowings under securities lending transactions by asset class pledged as of the dates indicated:


	June 30, 2022		December 31, 2021
U.S. Treasuries	$	37	$	42

U.S. corporate public securities	445		479

Foreign corporate public securities and foreign governments	243		243

Payables under securities loan agreements	$	725	$	764

The Company's securities lending activities are conducted on an overnight basis, and all securities loaned can be recalled at any time. The Company does not offset assets and liabilities associated with its securities lending program.

Variable Interest Entities ("VIEs")

The Company holds certain VIEs for investment purposes. VIEs may be in the form of private placement securities, structured securities, securitization transactions or limited partnerships. The Company has reviewed each of its holdings and determined that consolidation of these investments in the Company’s financial statements is not required, as the Company is not the primary beneficiary, because the Company does not have both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation or right to potentially significant losses or benefits, for any of its investments in VIEs. The Company did not provide any non-contractual financial support and its carrying value represents the Company’s exposure to loss. The carrying value and ownership interest of these investments are included in Limited partnerships/corporations on the Condensed Consolidated Balance Sheets. Income and losses recognized on these investments are reported in Net investment income in the Condensed Consolidated Statements of Operations.

Securitizations

The Company invests in various tranches of securitization entities, including Residential mortgage-backed securities ("RMBS"), Commercial mortgage-backed securities ("CMBS") and ABS. Through its investments, the Company is not obligated to provide any financial or other support to these entities. Each of the RMBS, CMBS and ABS entities are thinly capitalized by design and considered VIEs. The Company's involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer or investment manager, which are generally viewed to have the power to direct the activities that most significantly impact the securitization entities' economic performance, in any of these entities, nor does the Company function in any of these roles. The Company, through its


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

investments or other arrangements, does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity. Therefore, the Company is not the primary beneficiary and does not consolidate any of the RMBS, CMBS and ABS entities in which it holds investments. These investments are accounted for as investments available-for-sale as described in the Fair Value Measurements Note to these Condensed Consolidated Financial Statements and unrealized capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS that are accounted for under the FVO, for which changes in fair value are reflected in Other net gains (losses) in the Condensed Consolidated Statements of Operations. The Company’s maximum exposure to loss on these structured investments is limited to the amount of its investment.

Allowance for credit losses

The following table presents a rollforward of the allowance for credit losses on available-for-sale fixed maturity securities for the period presented:


	Six Months Ended June 30, 2022
	U.S. corporate private securities		Residential mortgage-backed securities		Commercial mortgage-backed securities		Foreign corporate public securities and foreign governments		Foreign corporate private securities		Other asset-backed securities		Total
Balance as of January 1, 2022	$	—	$	1	$	—	$	—	$	47	$	—	$	48
Credit losses on securities for which credit losses were not previously recorded	1		—		1		18		—		—		20
Initial allowance for credit losses recognized on financial assets accounted for as PCD	—		—		—		—		—		—		—
Reductions for securities sold during the period	—		—		—		—		(37)		—		(37)
Reductions for intent to sell or more likely than not will be required to sell securities prior to recovery of amortized cost	—		—		—		—		—		—		—
Increase (decrease) on securities with allowance recorded in previous period	—		(1)		—		—		3		—		2
Write-offs	—		—		—		—		—		—		—
Recoveries of amounts previously written-off	—		—		—		—		—		—		—
Balance at June 30, 2022	$	1	$	—	$	1	$	18	$	13	$	—	$	33


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)


	Year Ended December 31, 2021
	Residential mortgage-backed securities		Commercial mortgage-backed securities		Foreign corporate private securities		Other asset-backed securities		Total
Balance as of January 1, 2021	$	1	$	—	$	11	$	2	$	14
Credit losses on securities for which credit losses were not previously recorded	1		—		35		—		36
Initial allowance for credit losses recognized on financial assets accounted for as PCD	—		—		—		—		—
Reductions for securities sold during the period	—		—		—		—		—
Reductions for intent to sell or more likely than not will be required to sell securities prior to recovery of amortized cost	—		—		—		—		—
Increase (decrease) on securities with allowance recorded in previous period	(1)		—		1		(2)		(2)
Write-offs	—		—		—		—		—
Recoveries of amounts previously written-off	—		—		—		—		—
Balance as of December 31, 2021	$	1	$	—	$	47	$	—	$	48

Unrealized Capital Losses

The following table presents available-for-sale fixed maturities, including securities pledged, for which an allowance for credit losses has not been recorded by market sector and duration as of June 30, 2022:


	Twelve Months or Less Below Amortized Cost					More Than Twelve Months Below Amortized Cost						Total
		Fair Value		Unrealized Capital Losses		Number of securities	Fair Value		Unrealized Capital Losses			Number of securities	Fair Value		Unrealized Capital Losses		Number of securities
U.S. Treasuries		$	82	$	14	11	$	8	$	—	*	3	$	90	$	14	14
U.S. Government, agencies and authorities		18		2		2	—		—			—	18		2		2
State, municipalities and political subdivisions		519		47		250	—		—			—	519		47		250
U.S. corporate public securities		4,598		656		978	323		120			187	4,921		776		1,165
U.S. corporate private securities		2,702		213		309	81		18			8	2,783		231		317
Foreign corporate public securities and foreign governments		1,504		202		364	129		42			44	1,633		244		408
Foreign corporate private securities		1,990		134		186	11		2			3	2,001		136		189
Residential mortgage-backed		1,279		84		391	281		23			149	1,560		107		540
Commercial mortgage-backed		2,344		181		486	168		19			38	2,512		200		524
Other asset-backed		1,140		80		349	98		10			65	1,238		90		414
Total		$	16,176	$	1,613	3,326	$	1,099	$	234		497	$	17,275	$	1,847	3,823

*Less than $1


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The Company concluded that an allowance for credit losses was unnecessary for these securities because the unrealized losses are not credit related.


	Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost					Total
	Fair Value		Unrealized Capital Losses				Number of securities	Fair Value		Unrealized Capital Losses			Number of securities	Fair Value		Unrealized Capital Losses			Number of securities
U.S. Treasuries	$	7	$	—		*	4	$	7	$	—	*	2	$	14	$	—	*	6

State, municipalities and political subdivisions	33		1				21	—		—			—	33		1			21
U.S. corporate public securities	1,237		32				290	110		7			138	1,347		39			428
U.S. corporate private securities	325		2				35	94		13			8	419		15			43
Foreign corporate public securities and foreign governments	425		13				90	21		1			17	446		14			107
Foreign corporate private securities	54		1				7	10		—		*	1	64		1			8
Residential mortgage-backed	400		11				181	241		9			96	641		20			277
Commercial mortgage-backed	780		8				178	155		7			27	935		15			205
Other asset-backed	577		4				183	70		2			48	647		6			231
Total	$	3,838	$	72			989	$	708	$	39		337	$	4,546	$	111		1,326

*Less than $1

Based on the Company's quarterly evaluation of its securities in a unrealized loss position, described below, the Company concluded that these securities were not impaired as of June 30, 2022. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases.

Gross unrealized capital losses on fixed maturities, including securities pledged, increased $1,736 from $111 to $1,847 for the six months ended June 30, 2022. The increase in gross unrealized capital losses was driven primarily by materially higher interest rates across the curve and moderately wider credit spreads.

As of June 30, 2022, $4 of the total $1,847 of gross unrealized losses were from 5 available-for-sale fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for 12 months or greater.

Evaluating Securities for Impairments

The Company performs a regular evaluation, on a security-by-security basis, of its available-for-sale securities holdings, including fixed maturity securities in accordance with its impairment policy in order to evaluate whether such investments are impaired.


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table identifies the Company's intent impairments included in the Condensed Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated:


	Three Months Ended June 30,
	2022			2021
	Impairment		No. of Securities	Impairment			No. of Securities






Residential mortgage-backed	$	2	17	$	—	*	4
Commercial mortgage-backed	—		—	—			—




Total	$	2	17	$	—	*	4



*Less than $1
	Six Months Ended June 30,
	2022			2021
	Impairment		No. of Securities	Impairment			No. of Securities






Residential mortgage-backed	$	7	25	$	—	*	9
Commercial mortgage-backed	—		—	—		*	1




Total	$	7	25	$	—	*	10



*Less than $1

The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities. In certain situations, new factors, including changes in the business environment, can change the Company’s previous intent to continue holding a security. Accordingly, these factors may lead the Company to record additional intent related capital losses.

Troubled Debt Restructuring

The Company invests in high quality, well performing portfolios of commercial mortgage loans and private placements. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a troubled debt restructuring has occurred. A modification is a troubled debt restructuring when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific credit allowance recorded in connection with the troubled debt restructuring. A credit allowance may have been recorded prior to the quarter when the loan is modified in a troubled debt restructuring. Accordingly, the carrying value (net of the allowance) before and after modification through a troubled debt restructuring may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. For the three and six months ended June 30, 2022, the Company did not have any new commercial mortgage loan troubled debt restructurings. For the three months ended June 30, 2022, the Company had 3 new private placement troubled debt restructurings with a pre and post modification carrying value of $65 and $57, respectively. For the six months ended June 30, 2022, the Company had 6 new private placement troubled debt restructurings with a pre and post modification carrying value of $91 and $67, respectively. For the three and six months ended June 30, 2021, the Company did not have any new commercial mortgage loan troubled debt restructurings or new private placement troubled debt restructurings.

For the three and six months ended June 30, 2022 and June 30, 2021, the Company did not have any commercial mortgage loans or private placements modified in a troubled debt restructuring with a subsequent payment default.

Mortgage Loans on Real Estate

The Company diversifies its commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. The Company manages risk when originating commercial mortgage loans by generally lending only up to 75% of the estimated fair value of the underlying real estate. Subsequently, the Company continuously evaluates mortgage loans based on relevant current information including a review of loan-specific performance, property characteristics and


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

market trends. Loan performance is monitored on a loan specific basis through the review of submitted appraisals, operating statements, rent revenues and annual inspection reports, among other items. This review ensures properties are performing at a consistent and acceptable level to secure the debt. The components to evaluate debt service coverage are received and reviewed at least annually to determine the level of risk.

Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio, calculated at time of origination, is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.0 indicates that a property’s operations do not generate sufficient income to cover debt payments. These ratios are utilized as part of the review process described above.

The following tables present commercial mortgage loans by year of origination and LTV ratio as of the dates indicated:


	As of June 30, 2022
	Loan-to-Value Ratios
Year of Origination	0% - 50%		>50% - 60%		>60% - 70%		>70% - 80%		>80% and above		Total
2022	$	131	$	85	$	58	$	—	$	—	$	274
2021	195		270		190		10		—		665
2020	95		201		29		10		—		335
2019	145		132		55		—		—		332
2018	121		39		3		—		—		163
2017	538		191		3		—		—		732
2016 and prior	1,383		274		16		—		—		1,673
Total	$	2,608	$	1,192	$	354	$	20	$	—	$	4,174


	As of December 31, 2021
	Loan-to-Value Ratios
Year of Origination	0% - 50%		>50% - 60%		>60% - 70%		>70% - 80%		>80% and above		Total
2021	$	215	$	273	$	182	$	—	$	—	$	670
2020	114		202		69		—		—		385
2019	150		145		61		—		—		356
2018	127		43		3		—		—		173
2017	543		202		3		—		—		748
2016 and prior	1,451		434		16		—		—		1,901
Total	$	2,600	$	1,299	$	334	$	—	$	—	$	4,233


			23

Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following tables present commercial mortgage loans by year of origination and DSC ratio as of the dates indicated:


	As of June 30, 2022
	Debt Service Coverage Ratios
Year of Origination	>1.5x		>1.25x - 1.5x		>1.0x - 1.25x		<1.0x		Commercial mortgage loans secured by land or construction loans		Total
2022	$	274	$	—	$	—	$	—	$	—	$	274
2021	555		23		33		54		—		665
2020	271		23		22		19		—		335
2019	188		13		82		49		—		332
2018	93		5		48		17		—		163
2017	422		59		97		154		—		732
2016 and prior	1,255		212		141		65		—		1,673
Total	$	3,058	$	335	$	423	$	358	$	—	$	4,174


	As of December 31, 2021
	Debt Service Coverage Ratios
Year of Origination	>1.5x		>1.25x - 1.5x		>1.0x - 1.25x		<1.0x		Commercial mortgage loans secured by land or construction loans		Total
2021	$	556	$	23	$	34	$	57	$	—	$	670
2020	342		15		23		5		—		385
2019	206		43		84		23		—		356
2018	96		3		49		25		—		173
2017	355		139		93		161		—		748
2016 and prior	1,505		154		166		76		—		1,901
Total	$	3,060	$	377	$	449	$	347	$	—	$	4,233

The following tables present the commercial mortgage loans by year of origination and U.S. region as of the dates indicated:


	As of June 30, 2022
	U.S. Region
Year of Origination	Pacific		South Atlantic		Middle Atlantic		West South Central		Mountain		East North Central		New England		West North Central		East South Central		Total
2022	$	30	$	40	$	18	$	54	$	77	$	37	$	—	$	1	$	17	$	274
2021	79		52		116		135		96		120		9		36		22		665
2020	64		148		16		22		26		30		2		6		21		335
2019	47		105		10		86		34		8		14		11		17		332
2018	28		56		51		7		7		9		—		5		—		163
2017	86		82		300		127		43		54		4		36		—		732
2016 and prior	420		394		360		75		133		142		37		87		25		1,673
Total	$	754	$	877	$	871	$	506	$	416	$	400	$	66	$	182	$	102	$	4,174


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)


	As of December 31, 2021
	U.S. Region
Year of Origination	Pacific		South Atlantic		Middle Atlantic		West South Central		Mountain		East North Central		New England		West North Central		East South Central		Total
2021	$	79	$	58	$	120	$	132	$	96	$	118	$	9	$	36	$	22	$	670
2020	70		159		25		33		34		30		1		12		21		385
2019	48		106		10		103		34		12		15		11		17		356
2018	32		60		53		8		6		9		—		5		—		173
2017	87		82		311		129		44		55		4		36		—		748
2016 and prior	438		437		414		92		179		165		52		99		25		1,901
Total	$	754	$	902	$	933	$	497	$	393	$	389	$	81	$	199	$	85	$	4,233

The following tables present the commercial mortgage loans by year of origination and property type as of the dates indicated:


	As of June 30, 2022
	Property Type
Year of Origination	Retail		Industrial		Apartments		Office		Hotel/Motel		Other		Mixed Use		Total
2022	$	22	$	104	$	135	$	13	$	—	$	—	$	—	$	274
2021	23		148		374		104		—		8		8		665
2020	51		56		96		132		—		—		—		335
2019	29		65		162		56		20		—		—		332
2018	35		70		31		11		—		16		—		163
2017	90		343		182		114		3		—		—		732
2016 and prior	569		312		307		274		52		119		40		1,673
Total	$	819	$	1,098	$	1,287	$	704	$	75	$	143	$	48	$	4,174


	As of December 31, 2021
	Property Type
Year of Origination	Retail		Industrial		Apartments		Office		Hotel/Motel		Other		Mixed Use		Total
2021	$	24	$	159	$	368	$	104	$	—	$	7	$	8	$	670
2020	51		72		124		138		—		—		—		385
2019	30		66		173		67		20		—		—		356
2018	35		72		31		15		3		17		—		173
2017	90		355		184		116		3		—		—		748
2016 and prior	631		408		335		280		63		144		40		1,901
Total	$	861	$	1,132	$	1,215	$	720	$	89	$	168	$	48	$	4,233


			25

Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated:


	June 30, 2022		December 31, 2021
Allowance for credit losses, beginning of the period	$	11	$	67
Credit losses on mortgage loans for which credit losses were not previously recorded	1		1

Change in allowance due to transfer of loans from Voya Reinsurance portfolios to Resolution	—		(7)
Increase (decrease) on mortgage loans with allowance recorded in previous period	(2)		(50)
Provision for expected credit losses	10		11
Write-offs	—		—
Recoveries of amounts previously written off	—		—

Allowance for credit losses, end of period	$	10	$	11

The following table presents past due commercial mortgage loans as of the dates indicated:


	June 30, 2022		December 31, 2021
Delinquency:
Current	$	4,174	$	4,233
30-59 days past due	—		—
60-89 days past due	—		—
Greater than 90 days past due	—		—
Total	$	4,174	$	4,233

Commercial mortgage loans are placed on non-accrual status when 90 days in arrears if the Company has concerns regarding the collectability of future payments, or if a loan has matured without being paid off or extended. As of June 30, 2022 and December 31, 2021, the Company had no commercial mortgage loans in non-accrual status. There was no interest income recognized on loans in non-accrual status for the six months ended June 30, 2022 and year ended December 31, 2021.

Net Investment Income

The following table summarizes Net investment income for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Fixed maturities	$	360	$	361	$	709	$	737

Equity securities	3		4		5		7
Mortgage loans on real estate	45		46		89		90
Policy loans	2		3		4		4
Short-term investments and cash equivalents	—		1		1		2
Limited partnerships and other	28		84		96		166
Gross investment income	438		499		904		1,006
Less: Investment expenses	18		17		35		35
Net investment income	$	420	$	482	$	869	$	971

As of June 30, 2022, the Company had $21 investments in fixed maturities that did not produce net investment income. As of December 31, 2021, the Company had no investments in fixed maturities that did not produce net investment income. Fixed maturities are moved to a non-accrual status when the investment defaults.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to amortization of premiums and accretion of discounts. Such interest income is recorded in Net investment income in the Condensed Consolidated Statements of Operations.

Net Gains (Losses)

Net gains (losses) comprise the difference between the amortized cost of investments and proceeds from sale and redemption, as well as losses incurred due to the credit-related and intent-related impairment of investments. Realized investment gains and losses are also primarily generated from changes in fair value of embedded derivatives within products and fixed maturities, changes in fair value of fixed maturities recorded at FVO and changes in fair value including accruals on derivative instruments, except for effective cash flow hedges. Net gains (losses) also include changes in fair value of trading debt securities and changes in fair value of equity securities. The cost of the investments on disposal is generally determined based on first-in-first-out ("FIFO") methodology.

Net gains (losses) were as follows for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Fixed maturities, available-for-sale, including securities pledged	$	(3)	$	11	$	(62)	$	520
Fixed maturities, at fair value option	(133)		(145)		(308)		(287)

Equity securities, at fair value	(17)		4		(21)		7
Derivatives	5		(8)		57		(48)
Embedded derivatives - fixed maturities	(1)		—		(3)		(2)
Guaranteed benefit derivatives	12		(12)		16		37
Mortgage loans	1		21		4		84
Other investments	—		94		(1)		94
Net gains (losses)	$	(136)	$	(35)	$	(318)	$	405

On June 1, 2021, the Company fully disposed of a 9.99% equity interest in VA Capital which was originally acquired as part of a Master Transaction Agreement dated December 20, 2017, related to the sale of substantially all of our Closed Block Variable Annuity (CBVA) and Annuity business. The disposition resulted in a net realized gain of $95 reported as Other net gains (losses) in the Condensed Consolidated Statements of Operations.

Proceeds from the sale of fixed maturities, available-for-sale and trading, and equity securities and the related gross realized gains and losses, before tax, were as follows for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Proceeds on sales	$	574	$	420	$	1,444	$	3,862
Gross gains	8		9		18		501
Gross losses	8		1		33		2

3. Derivative Financial Instruments

The Company primarily enters into the following types of derivatives:

Interest rate swaps: Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating


			27

Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Futures: The Company uses interest rate futures contracts to hedge its exposure to market risks due to changes in interest rates. The Company enters into exchange traded futures with regulated futures commissions that are members of the exchange. The Company also posts initial and variation margins, with the exchange, on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships. The Company may also use futures contracts as a hedge against an increase in certain equity indices.

Embedded derivatives: The Company also invests in certain fixed maturity instruments and has issued certain products that contain embedded derivatives for which market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates, or credit ratings/spreads. In addition, the Company has entered into coinsurance with funds withheld arrangements, which contain embedded derivatives.

The notional amounts and fair values of derivatives were as follows as of the dates indicated:


	June 30, 2022						December 31, 2021
	Notional Amount		Asset Fair Value		Liability Fair Value		Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives: Qualifying for hedge accounting(1)
Cash flow hedges:
Interest rate contracts	$	18	$	—	$	—	$	18	$	—	$	—
Foreign exchange contracts	579		50		—		567		14		15
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts	13,758		187		259		10,514		135		129
Foreign exchange contracts	58		3		—		34		—		—

Credit contracts	146		—		2		110		—		—

Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	N/A		3		—		N/A		7		—
Within products	N/A		—		9		N/A		—		28

Managed custody guarantees	N/A		—		4		N/A		—		1
Total			$	243	$	274			$	156	$	173

(1) Open derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value.

N/A - Not Applicable

Based on the notional amounts, a substantial portion of the Company’s derivative positions was not designated or did not qualify for hedge accounting as part of a hedging relationship as of June 30, 2022 and December 31, 2021. The Company utilizes derivative contracts mainly to hedge exposure to variability in cash flows, interest rate risk, credit risk, foreign exchange risk and equity market risk. The majority of derivatives used by the Company are designated as product hedges, which hedge the exposure arising from insurance liabilities or guarantees embedded in the contracts the Company offers through various


			28

Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

product lines. These derivatives do not qualify for hedge accounting as they do not meet the criteria of being "highly effective" as outlined in ASC Topic 815, but do provide an economic hedge, which is in line with the Company’s risk management objectives. The Company also uses derivatives contracts to hedge its exposure to various risks associated with the investment portfolio. The Company does not seek hedge accounting treatment for certain of these derivatives as they generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules outlined in ASC Topic 815. The Company also uses credit default swaps coupled with other investments in order to produce the investment characteristics of otherwise permissible investments that do not qualify as effective accounting hedges under ASC Topic 815.

Although the Company has not elected to net its derivative exposures, the notional amounts and fair values of Over-The-Counter ("OTC") and cleared derivatives excluding exchange traded contracts are presented in the tables below as of the dates

indicated:


	June 30, 2022
	Notional Amount		Asset Fair Value		Liability Fair Value
Credit contracts	$	146	$	—	$	2

Foreign exchange contracts	637		53		—
Interest rate contracts	8,752		187		249
			240		251

Counterparty netting(1)			(187)		(187)
Cash collateral netting(1)			(46)		(63)
Securities collateral netting(1)			(6)		(1)
Net receivables/payables			$	1	$	—

(1) Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements.


	December 31, 2021
	Notional Amount		Asset Fair Value		Liability Fair Value
Credit contracts	$	110	$	—	$	—

Foreign exchange contracts	601		14		15
Interest rate contracts	9,576		135		129
			149		144

Counterparty netting(1)			(140)		(140)
Cash collateral netting(1)			(7)		(2)
Securities collateral netting(1)			(2)		(1)
Net receivables/payables			$	—	$	1

(1) Represents the netting of receivable balances with payable balances, net of collateral, for the same counterparty under eligible netting agreements.

Collateral

Under the terms of the OTC Derivative International Swaps and Derivatives Association, Inc. ("ISDA") agreements, the Company may receive from, or deliver to, counterparties, collateral to assure that terms of the ISDA agreements will be met with regard to the Credit Support Annex ("CSA"). The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate. To the extent cash collateral is received and delivered, it is included in Payables under securities loan agreements, including collateral held and Short-term investments under securities loan agreements, including collateral delivered, respectively, on the Condensed Consolidated Balance Sheets and is reinvested in short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by the Company are the source of noncash collateral posted, which is reported in Securities pledged on the Condensed Consolidated Balance Sheets.

As of June 30, 2022, the Company held $47 and pledged $63 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2021, the Company held $8 and delivered $2 of net cash


			29

Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

collateral related to OTC derivative contracts and cleared derivative contracts, respectively. In addition, as of June 30, 2022, the Company delivered $104 of securities and held $6 of securities as collateral. As of December 31, 2021, the Company delivered $60 of securities and held $2 securities as collateral.

The location and effect of derivatives qualifying for hedge accounting on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income are as follows for the periods indicated:


	Three Months Ended June 30,
	2022				2021
	Interest Rate Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Foreign Exchange Contracts
Derivatives: Qualifying for hedge accounting
Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Net investment income/(loss)		Net investment income and Other net gains/(losses)		Net investment income/(loss)		Net investment income and Other net gains/(losses)
Amount of Gain or (Loss) Recognized in Other Comprehensive Income	$	—	$	45	$	—	$	5
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income	—		3		—		2

	Six Months Ended June 30,
	2022				2021
	Interest Rate Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Foreign Exchange Contracts
Derivatives: Qualifying for hedge accounting
Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Net investment income/(loss)		Net investment income and Other net gains/(losses)		Net investment income/(loss)		Net investment income and Other net gains/(losses)
Amount of Gain or (Loss) Recognized in Other Comprehensive Income	$	(1)	$	51	$	(1)	$	10
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income	—		5		—		(1)


			30

Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The location and amount of gain (loss) recognized in the Condensed Consolidated Statements of Operations for derivatives qualifying for hedge accounting are as follows for the periods indicated:



	Three Months Ended June 30,
	2022				2021
	Net investment income/(loss)		Other net gains/(losses)		Net investment income/(loss)		Other net gains/(losses)
Total amounts of line items presented in the statement of operations in which the effects of cash flow hedges are recorded	$	420	$	(134)	$	482	$	(35)
Derivatives: Qualifying for hedge accounting
Cash flow hedges:




Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	3		—		2		—

	Six Months Ended June 30,
	2022				2021
	Net investment income/(loss)		Other net gains/(losses)		Net investment income/(loss)		Other net gains/(losses)
Total amounts of line items presented in the statement of operations in which the effects of cash flow hedges are recorded	$	869	$	(311)	$	971	$	405
Derivatives: Qualifying for hedge accounting

Cash flow hedges:




Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	5		—		4		(5)


			31

Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The location and effect of derivatives not designated as hedging instruments on the Condensed Consolidated Statements of Operations are as follows for the periods indicated:



	Location of Gain or (Loss) Recognized in Income on Derivative	Three Months Ended June 30,
		2022		2021
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Other net gains (losses)	$	6	$	(9)
Foreign exchange contracts	Other net gains (losses)	3		(1)

Credit contracts	Other net gains (losses)	(4)		1
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Other net gains (losses)	(1)		—
Within products	Other net gains (losses)	10		(12)

Managed custody guarantees	Other net gains (losses)	1		—
Total		$	15	$	(21)

	Location of Gain or (Loss) Recognized in Income on Derivative	Six Months Ended June 30,
		2022		2021
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Other net gains (losses)	$	57	$	(44)
Foreign exchange contracts	Other net gains (losses)	4		(1)

Credit contracts	Other net gains (losses)	(4)		1
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Other net gains (losses)	(3)		(2)
Within products	Other net gains (losses)	19		33

Managed custody guarantees	Other net gains (losses)	(2)		4
Total		$	71	$	(9)


			32

Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

4. Fair Value Measurements

Fair Value Measurement

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of June 30, 2022:


	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	433		$	162		$	—		$	595
U.S. Government agencies and authorities	—			18			—			18
State, municipalities and political subdivisions	—			665			—			665
U.S. corporate public securities	—			6,676			8			6,684
U.S. corporate private securities	—			2,213			1,323			3,536
Foreign corporate public securities and foreign governments(1)	—			2,131			4			2,135
Foreign corporate private securities (1)	—			2,251			303			2,554
Residential mortgage-backed securities	—			3,064			22			3,086
Commercial mortgage-backed securities	—			2,743			—			2,743
Other asset-backed securities	—			1,223			47			1,270
Total fixed maturities, including securities pledged	433			21,146			1,707			23,286

Equity securities	15			8			121			144
Derivatives:
Interest rate contracts	—			187			—			187
Foreign exchange contracts	—			53			—			53



Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,153			—			—			1,153
Assets held in separate accounts	71,548			5,524			349			77,421
Total assets	$	73,149		$	26,918		$	2,177		$	102,244
Percentage of Level to Total	72		%	26		%	2		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	9		$	9
Stabilizer and MCGs	—			—			4			4
Other derivatives:
Interest rate contracts	9			250			—			259


Credit contracts	—			2			—			2

Total liabilities	$	9		$	252		$	13		$	274

(1) Primarily U.S. dollar denominated.


			33

Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2021:


	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	510		$	181		$	—		$	691
U.S. Government agencies and authorities	—			20			—			20
State, municipalities and political subdivisions	—			803			—			803
U.S. corporate public securities	—			8,264			5			8,269
U.S. corporate private securities	—			2,560			1,379			3,939
Foreign corporate public securities and foreign governments(1)	—			2,591			—			2,591
Foreign corporate private securities (1)	—			2,431			272			2,703
Residential mortgage-backed securities	—			3,130			34			3,164
Commercial mortgage-backed securities	—			2,881			—			2,881
Other asset-backed securities	—			1,318			33			1,351
Total fixed maturities, including securities pledged	510			24,179			1,723			26,412
Equity securities	27			—			114			141
Derivatives:
Interest rate contracts	—			135			—			135
Foreign exchange contracts	—			14			—			14



Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,244			—			—			1,244
Assets held in separate accounts	91,474			5,174			316			96,964
Total assets	$	93,255		$	29,502		$	2,153		$	124,910
Percentage of Level to total	74		%	24		%	2		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	9		$	9
Stabilizer and MCGs	—			—			20			20
Other derivatives:
Interest rate contracts	—			129			—			129
Foreign exchange contracts	—			15			—			15



Total liabilities	$	—		$	144		$	29		$	173

(1) Primarily U.S. dollar denominated.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Valuation of Financial Assets and Liabilities at Fair Value

Certain assets and liabilities are measured at estimated fair value on the Company's Condensed Consolidated Balance Sheets. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The exit price and the transaction (or entry) price will be the same at initial recognition in many circumstances. However, in certain cases, the transaction price may not represent fair value. The fair value of a liability is based on the amount that would be paid to transfer a liability to a third-party with an equal credit standing. Fair value is required to be a market-based measurement that is determined based on a hypothetical transaction at the measurement date, from a market participant's perspective. The Company considers three broad valuation approaches when a quoted price is unavailable: (i) the market approach, (ii) the income approach and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given the instrument being measured and the availability of sufficient inputs. The Company prioritizes the inputs to fair valuation approaches and allows for the use of unobservable inputs to the extent that observable inputs are not available.

The Company utilizes a number of valuation methodologies to determine the fair values of its financial assets and liabilities in conformity with the concepts of exit price and the fair value hierarchy as prescribed in ASC Topic 820. Valuations are obtained from third-party commercial pricing services, brokers and industry-standard, vendor-provided software that models the value based on market observable inputs. The valuations obtained from third-party commercial pricing services are non-binding. The Company reviews the assumptions and inputs used by third-party commercial pricing services for each reporting period in order to determine an appropriate fair value hierarchy level. The documentation and analysis obtained from third-party commercial pricing services are reviewed by the Company, including in-depth validation procedures confirming the observability of inputs. The valuations are reviewed and validated monthly through the internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes.

The valuation approaches and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy are presented below.

For fixed maturities classified as Level 2 assets, fair values are determined using a matrix-based market approach, based on prices obtained from third-party commercial pricing services and the Company’s matrix and analytics-based pricing models, which in each case incorporate a variety of market observable information as valuation inputs. The market observable inputs used for these fair value measurements, by fixed maturity asset class, are as follows:

U.S. Treasuries: Fair value is determined using third-party commercial pricing services, with the primary inputs being stripped interest and principal U.S. Treasury yield curves that represent a U.S. Treasury zero-coupon curve.

U.S. government agencies and authorities, State, municipalities and political subdivisions: Fair value is determined using third-party commercial pricing services, with the primary inputs being U.S. Treasury yield curves, trades of comparable securities, credit spreads off benchmark yields and issuer ratings.

U.S. corporate public securities, Foreign corporate public securities and foreign governments: Fair value is determined using third-party commercial pricing services, with the primary inputs being benchmark yields, trades of comparable securities, issuer ratings, bids and credit spreads off benchmark yields.

U.S. corporate private securities and Foreign corporate private securities: Fair values are determined using a matrix and analytics-based pricing model. The model incorporates the current level of risk-free interest rates, current corporate credit spreads, credit quality of the issuer and cash flow characteristics of the security. The model also considers a liquidity spread, the value of any collateral, the capital structure of the issuer, the presence of guarantees, and prices and quotes for comparably rated publicly traded securities.

RMBS, CMBS and ABS: Fair value is determined using third-party commercial pricing services, with the primary inputs being credit spreads off benchmark yields, prepayment speed assumptions, current and forecasted loss severity, debt service coverage ratios, collateral type, payment priority within tranche and the vintage of the loans underlying the security.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Generally, the Company does not obtain more than one vendor price from pricing services per instrument. The Company uses a hierarchy process in which prices are obtained from a primary vendor and, if that vendor is unable to provide the price, the next vendor in the hierarchy is contacted until a price is obtained or it is determined that a price cannot be obtained from a commercial pricing service. When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited. Securities priced using independent broker quotes are classified as Level 3.

Fair values of privately placed bonds are determined primarily using a matrix-based pricing model and are generally classified as Level 2 assets. The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. Also considered are factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company's evaluation of the borrower's ability to compete in its relevant market. Using this data, the model generates estimated market values which the Company considers reflective of the fair value of each privately placed bond.

Equity securities: Level 2 and Level 3 equity securities, typically private equities or equity securities not traded on an exchange, are valued by other sources such as analytics or brokers.

Derivatives: Derivatives are carried at fair value, which is determined using the Company's derivative accounting system in conjunction with observable key financial data from third party sources, such as yield curves, exchange rates, S&P 500 Index prices, London Interbank Offered Rates ("LIBOR"), Overnight Index Swap ("OIS") rates, and Secured Overnight Financing Rate ("SOFR"). The Company uses SOFR discounting for valuations of interest rate derivatives; however, certain legacy positions may continue to be discounted on OIS. The Company uses OIS for valuations of collateralized interest rate derivatives, which are obtained from third-party sources. For those derivatives that are unable to be valued by the accounting system, the Company typically utilizes values established by third-party brokers. Counterparty credit risk is considered and incorporated in the Company's valuation process through counterparty credit rating requirements and monitoring of overall exposure. It is the Company's policy to transact only with investment grade counterparties with a credit rating of A- or better. The Company's nonperformance risk is also considered and incorporated in the Company's valuation process. The Company also has certain credit default swaps and options that are priced by third party vendors or by using models that primarily use market observable inputs, but contain inputs that are not observable to market participants, which have been classified as Level 3. The remaining derivative instruments are valued based on market observable inputs and are classified as Level 2.

Guaranteed benefit derivatives: The index-crediting feature in the Company's FIA contract is an embedded derivative that is required to be accounted for separately from the host contract. The fair value of the obligation is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by market implied assumptions. These derivatives are classified as Level 3 liabilities in the fair value hierarchy.

The Company records reserves for Stabilizer and MCG contracts containing guaranteed credited rates. The guarantee is treated as an embedded derivative or a stand-alone derivative (depending on the underlying product) and is required to be reported at fair value. The estimated fair value is determined based on the present value of projected future claims, minus the present value of future guaranteed premiums. At inception of the contract, the Company projects a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using relevant actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are produced by using stochastic techniques under a variety of risk neutral scenarios and other market implied assumptions. These derivatives are classified as Level 3 liabilities.

The discount rate used to determine the fair value of the embedded derivatives and stand-alone derivative includes an adjustment for nonperformance risk. The nonperformance risk adjustment incorporates a blend of observable, similarly rated peer holding company credit spreads, adjusted to reflect the credit quality of the Company, as well as an adjustment to reflect the non-default spreads and the priority and recovery rates of policyholder claims.

Embedded derivatives on reinsurance: The carrying value of embedded derivatives is estimated based upon the change in the fair value of the assets supporting the funds withheld payable under reinsurance agreements. The fair value of the embedded derivatives is based on market observable inputs and is classified as Level 2.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Level 3 Financial Instruments

The fair values of certain assets and liabilities are determined using prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (i.e., Level 3 as defined by ASC Topic 820), including but not limited to liquidity spreads for investments within markets deemed not currently active. These valuations, whether derived internally or obtained from a third-party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. In addition, the Company has determined, for certain financial instruments, an active market is such a significant input to determine fair value that the presence of an inactive market may lead to classification in Level 3. In light of the methodologies employed to obtain the fair values of financial assets and liabilities classified as Level 3, additional information is presented below.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following tables summarize the change in fair value of the Company’s Level 3 assets and liabilities and transfers in and out of Level 3 for the periods indicated:


	Three Months Ended June 30, 2022
	Fair Value as of April 1		Realized/Unrealized Gains (Losses) Included in:				Purchases		Issuances		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Fair Value as of June 30		Change In Unrealized Gains (Losses) Included in Earnings(3)		Change in Unrealized Gains (Losses) Included in OCI(3)
			Net Income		OCI
Fixed maturities, including securities pledged:

U.S. Corporate public securities	$	47	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	(39)	$	8	$	—	$	—
U.S. Corporate private securities	1,424		—		(98)		73		—		—		(42)		—		(34)		1,323		—		(98)

Foreign corporate public securities and foreign governments(1)	3		—		—		4		—		—		—		—		(3)		4		—		—
Foreign corporate private securities(1)	378		(3)		(5)		47		—		—		(7)		—		(107)		303		(3)		(5)
Residential mortgage-backed securities	37		(5)		—		—		—		—		(9)		1		(2)		22		(5)		—

Other asset-backed securities	36		—		(2)		26		—		—		(1)		—		(12)		47		—		(2)
Total fixed maturities, including securities pledged	1,925		(8)		(105)		150		—		—		(59)		1		(197)		1,707		(8)		(105)

Equity securities, at fair value	117		(12)		—		23		—		—		—		—		(7)		121		(12)		—
Derivatives:
Guaranteed benefit derivatives:
Stabilizer and MCGs(2)	(15)		11		—		—		—		—		—		—		—		(4)		—		—
FIA(2)	(9)		—		—		—		—		—		—		—		—		(9)		—		—
Cash and cash equivalents, short-term investments, and short-term investments under securities loan agreement	7		—		—		—		—		—		(7)		—		—		—		—		—

Assets held in separate accounts(4)	334		(12)		—		67		—		(3)		—		—		(37)		349		—		—
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net gains (losses) in the Condensed Consolidated Statements of Operations.
(3) For financial instruments still held as of June 30, amounts are included in Net investment income and Total net gains (losses) in the Condensed Consolidated Statements of Operations or Unrealized gains (losses) on securities in the Condensed Consolidated Statements of Comprehensive Income.
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)


	Six Months Ended June 30, 2022
	Fair Value as of January 1		Realized/Unrealized Gains (Losses) Included in:				Purchases		Issuances		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Fair Value as of June 30		Change in Unrealized Gains (Losses) Included in Earnings(3)		Change in Unrealized Gains (Losses) Included in OCI(3)
			Net Income		OCI
Fixed maturities, including securities pledged:

U.S. Corporate public securities	$	5	$	—	$	(1)	$	4	$	—	$	—	$	—	$	—	$	—	$	8	$	—	$	(1)
U.S. Corporate private securities	1,379		1		(210)		136		—		—		(83)		110		(10)		1,323		—		(210)

Foreign corporate public securities and foreign governments(1)	—		—		—		4		—		—		—		—		—		4		—		—
Foreign corporate private securities(1)	272		(20)		(24)		86		—		—		(17)		110		(104)		303		(3)		(24)
Residential mortgage-backed securities	34		(12)		—		—		—		—		—		1		(1)		22		(12)		—

Other asset-backed securities	33		—		(3)		29		—		(10)		(2)		—		—		47		—		(3)
Total fixed maturities, including securities pledged	1,723		(31)		(238)		259		—		(10)		(102)		221		(115)		1,707		(15)		(238)

Equity securities, at fair value	114		(16)		—		23		—		—		—		—		—		121		(16)		—
Derivatives:
Guaranteed benefit derivatives:
Stabilizer and MCGs(2)	(20)		17		—		—		(1)		—		—		—		—		(4)		—		—
FIA(2)	(9)		—		—		—		—		—		—		—		—		(9)		—		—
Cash and cash equivalents, short-term investments, and short-term investments under securities loan agreements	—		—		—		7		—		—		(7)		—		—		—		—		—
Assets held in separate accounts(4)	316		(26)		—		132		—		(4)		—		6		(75)		349		—		—
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net gains (losses) in the Condensed Consolidated Statements of Operations.
(3) For financial instruments still held as of June 30, amounts are included in Net investment income and Total net gains (losses) in the Condensed Consolidated Statements of Operations or Unrealized gains (losses) on securities in the Condensed Consolidated Statements of Comprehensive Income.
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following tables summarize the change in fair value of the Company’s Level 3 assets and liabilities and transfers in and out of Level 3 for the periods indicated:


	Three Months Ended June 30, 2021
	Fair Value as of April 1		Realized/Unrealized Gains (Losses) Included in:				Purchases		Issuances		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Fair Value as of June 30		Change In Unrealized Gains (Losses) Included in Earnings(3)		Change in Unrealized Gains (Losses) Included in OCI(3)
			Net Income		OCI
Fixed maturities, including securities pledged:

U.S. Corporate public securities	$	46	$	—	$	1	$	—	$	—	$	—	$	(1)	$	—	$	(28)	$	18	$	—	$	1
U.S. Corporate private securities	1,200		—		37		18		—		—		(62)		262		(42)		1,413		—		39

Foreign corporate public securities and foreign governments(1)	5		—		—		7		—		—		—		—		(5)		7		—		—
Foreign corporate private securities(1)	274		1		7		1		—		(17)		(2)		—		—		264		1		7
Residential mortgage-backed securities	33		(3)		—		5		—		—		—		3		(7)		31		(3)		—

Other asset-backed securities	47		—		—		10		—		—		(5)		—		—		52		—		—
Total fixed maturities, including securities pledged	1,605		(2)		45		41		—		(17)		(70)		265		(82)		1,785		(2)		47
Fixed maturities, trading, at fair value	—		—		—		33		—		—		—		—		—		33		—		—
Equity securities, at fair value	148		2		—		—		—		(5)		—		—		—		145		1		—
Derivatives:
Guaranteed benefit derivatives:
Stabilizer and MCGs(2)	(3)		(12)		—		—		—		—		—		—		—		(15)		—		—
FIA(2)	(10)		—		—		—		—		—		—		—		—		(10)		—		—


Assets held in separate accounts(4)	237		2		—		71		—		—		—		—		(17)		293		—		—
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net gains (losses) in the Condensed Consolidated Statements of Operations.
(3) For financial instruments still held as of June 30, amounts are included in Net investment income and Total net gains (losses) in the Condensed Consolidated Statements of Operations.
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)



	Six Months Ended June 30, 2021
	Fair Value as of January 1		Realized/Unrealized Gains (Losses) Included in:				Purchases		Issuances		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Fair Value as of June 30		Change in Unrealized Gains (Losses) Included in Earnings(3)		Change in Unrealized Gains (Losses) Included in OCI(3)
			Net Income		OCI
Fixed maturities, including securities pledged:


U.S. Corporate public securities	$	57	$	—	$	1	$	—	$	—	$	(9)	$	(1)	$	—	$	(30)	$	18	$	—	$	1
U.S. Corporate private securities	1,286		13		(32)		33		—		(88)		(88)		348		(59)		1,413		—		(21)
Foreign corporate public securities and foreign governments(1)	—		—		—		7		—		—		—		—		—		7		—		—
Foreign corporate private securities(1)	295		3		1		1		—		(22)		(14)		—		—		264		2		(1)
Residential mortgage-backed securities	33		(5)		—		8		—		(7)		—		2		—		31		(5)		—
Commercial mortgage-backed securities	—		—		—		—		—		(1)		(3)		4		—		—		—		—
Other asset-backed securities	37		—		(1)		15		—		—		(17)		18		—		52		—		(1)
Total fixed maturities, including securities pledged	1,708		11		(31)		64		—		(127)		(123)		372		(89)		1,785		(3)		(22)
Fixed maturities, trading, at fair value	—		—		—		33		—		—		—		—		—		33		—		—
Equity securities, at fair value	99		8		—		75		—		(30)		(7)		—		—		145		(1)		—
Derivatives:
Guaranteed benefit derivatives:
Stabilizer and MCGs(2)	(53)		37		—		—		—		—		1		—		—		(15)		—		—
FIA(2)	(10)		—		—		—		—		—		—		—		—		(10)		—		—

Assets held in separate accounts(4)	222		3		—		104		—		(1)		—		—		(35)		293		—		—
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net gains (losses) in the Condensed Consolidated Statements of Operations.

(3) For financial instruments still held as of June 30, amounts are included in Net investment income and Total net gains (losses) in the Condensed Consolidated Statements of Operations.
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

For the three and six months ended June 30, 2022 and 2021, the transfers in and out of Level 3 for fixed maturities and separate accounts were due to the variation in inputs relied upon for valuation each quarter. Securities that are primarily valued using independent broker quotes when prices are not available from one of the commercial pricing services are reflected as transfers into Level 3. When securities are valued using more widely available information, the securities are transferred out of Level 3 and into Level 1 or 2, as appropriate.

Significant Unobservable Inputs

The Company's Level 3 fair value measurements of its fixed maturities, equity securities and equity and credit derivative contracts are primarily based on broker quotes for which the quantitative detail of the unobservable inputs is neither provided nor reasonably corroborated, thus negating the ability to perform a sensitivity analysis. The Company performs a review of broker quotes by performing a monthly price variance comparison and back tests broker quotes to recent trade prices.

Other Financial Instruments

The following disclosures are made in accordance with the requirements of ASC Topic 825 which requires disclosure of fair value information about financial instruments, whether or not recognized at fair value on the Condensed Consolidated Balance Sheets.

ASC Topic 825 excludes certain financial instruments, including insurance contracts and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.


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Table of Contents

Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The carrying values and estimated fair values of the Company’s financial instruments as of the dates indicated:


	June 30, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturities, including securities pledged	$	23,286	$	23,286	$	26,412	$	26,412
Equity securities	144		144		141		141
Mortgage loans on real estate	4,174		4,034		4,233		4,495
Policy loans	163		163		171		171

Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,153		1,153		1,244		1,244

Derivatives	240		240		149		149

Short-term loan to affiliate	—		—		130		130
Other investments	142		142		143		143
Assets held in separate accounts	77,421		77,421		96,964		96,964
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities(1)	29,238		31,280		28,128		35,256
Funding agreements with fixed maturities	926		922		925		925
Supplementary contracts, immediate annuities and other	258		215		257		267

Derivatives:
Guaranteed benefit derivatives:
FIA	9		9		9		9
Stabilizer and MCGs	4		4		20		20
Other derivatives	261		261		144		144
Short-term debt(2)	80		80		19		19
Long-term debt(2)	2		2		2		2

(1) Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Guaranteed benefit derivatives section of the table above.
(2) Included in Other Liabilities on the Condensed Consolidated Balance Sheets.

The following table presents the classification of financial instruments which are not carried at fair value on the Condensed Consolidated Balance Sheets:


Financial Instrument			Classification
Mortgage loans on real estate			Level 3
Policy loans			Level 2



Other investments			Level 2
Funding agreements without fixed maturities and deferred annuities			Level 3
Funding agreements with fixed maturities			Level 2
Supplementary contracts, immediate annuities and other			Level 3

Short-term debt and Long-term debt			Level 2


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

5. Deferred Policy Acquisition Costs and Value of Business Acquired

The following tables present a rollforward of DAC and VOBA for the periods indicated:


	2022
	DAC		VOBA			Total
Balance as of January 1, 2022	$	270	$	139		$	409

Deferrals of commissions and expenses	28		2			30
Amortization:
Amortization, excluding unlocking(2)	(29)		(16)			(45)
Unlocking (1)	(22)		(31)			(53)
Interest accrued	17		13		(3)	30
Net amortization included in the Condensed Consolidated Statements of Operations	(34)		(34)			(68)
Change due to unrealized capital gains/losses on available-for-sale securities	504		384			888
Balance as of June 30, 2022	$	768	$	491		$	1,259


	2021
	DAC		VOBA			Total
Balance as of January 1, 2021	$	122	$	40		$	162

Deferrals of commissions and expenses	26		2			28
Amortization:
Amortization, excluding unlocking(2)	(57)		(63)			(120)
Unlocking (1)	3		10			13
Interest accrued	17		12		(3)	29
Net amortization included in the Condensed Consolidated Statements of Operations	(37)		(41)			(78)
Change due to unrealized capital gains/losses on available-for-sale securities	101		94			195
Balance as of June 30, 2021	$	212	$	95		$	307

(1) Includes the impacts of annual review of assumptions which typically occurs in the third quarter; and retrospective and prospective unlocking.

(2) There was no loss recognition during 2022. During the six months ended June 30, 2021 the Company recognized $2 of loss recognition related to DAC.

(3) Interest accrued at the following rates for VOBA: 7.0% during 2022 and 5.5% to 7.0% during 2021.

6. Reinsurance

As of June 30, 2022, the Company has reinsurance treaties with 3 unaffiliated reinsurers covering a significant portion of the mortality risks and guaranteed death benefits under its variable contracts. Premiums receivable and reinsurance recoverable were comprised of the following as of the dates indicated:


	June 30,		December 31,
	2022		2021
Premiums receivable	$	(2)	$	(3)
Reinsurance recoverable, net of allowance for credit losses	3,471		3,601


Total	$	3,469	$	3,598


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Information regarding the effect of reinsurance on the Condensed Consolidated Statement of Operations is as follows for the periods indicated:


	Three Months Ended June 30,
	2022		2021
Premiums:
Direct premiums	$	4	$	7
Reinsurance assumed	—		—
Reinsurance ceded	(1)		(1)
Net premiums	$	3	6

Interest credited and other benefits to contract owners / policyholders:
Direct interest credited and other benefits to contract owners / policyholders	$	221	$	226
Reinsurance assumed	1		2
Reinsurance ceded	(26)		(52)
Net interest credited and other benefits to contract owners / policyholders	$	196	$	176


	Six Months Ended June 30,
	2022		2021
Premiums:
Direct premiums	$	13	$	18
Reinsurance assumed	—		—
Reinsurance ceded	(2)		(2,459)
Net premiums	$	11	$	(2,441)

Interest credited and other benefits to contract owners / policyholders:
Direct interest credited and other benefits to contract owners / policyholders	$	449	$	673
Reinsurance assumed	3		6
Reinsurance ceded	(59)		(2,559)
Net interest credited and other benefits to contract owners / policyholders	$	393	$	(1,880)

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. As of June 30, 2022 and December 31, 2021, the Company had a deposit asset of $1.4 billion, which is reported in "Other assets" on the accompanying Condensed Consolidated Balance Sheets.


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

7. Accumulated Other Comprehensive Income (Loss)

Shareholder’s equity included the following components of AOCI as of the dates indicated:


	June 30,
	2022		2021
Fixed maturities, net of impairments	$	(1,565)	$	2,494

Derivatives(1)	117		66
DAC/VOBA adjustment on available-for-sale securities(2)	322		(657)

Other	—		1
Unrealized capital gains (losses), before tax	(1,126)		1,904
Deferred income tax asset (liability)	365		(271)
Net unrealized capital gains (losses)	(761)		1,633
Pension and other postretirement benefits liability, net of tax	2		2
AOCI	$	(759)	$	1,635

(1) Gains and losses reported in AOCI from hedge transactions that resulted in the acquisition of an identified asset are reclassified into earnings in the same period or periods during which the asset acquired affects earnings. As of June 30, 2022, the portion of the AOCI that is expected to be reclassified into earnings within the next twelve months is $20.

(2) Upon adoption of ASU 2018-12 on January 1, 2023, the DAC/VOBA adjustments on available-for-sale securities will be reversed as of the January 1, 2021 transition date and in subsequent periods.


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Changes in AOCI, including the reclassification adjustments recognized in the Condensed Consolidated Statements of Operations were as follows for the periods indicated:


	Three Months Ended June 30, 2022
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	(1,829)		$	384	$	(1,445)



Adjustments for amounts recognized in Net gains (losses) in the Condensed Consolidated Statements of Operations	17			(3)		14
DAC/VOBA and Sales inducements	427			(90)		337

Change in unrealized gains (losses) on available-for-sale securities	(1,385)			291		(1,094)

Derivatives:
Derivatives	45		(1)	(10)		35
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(4)			1		(3)
Change in unrealized gains (losses) on derivatives	41			(9)		32




Change in Accumulated other comprehensive income (loss)	$	(1,344)		$	282	$	(1,062)

(1) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.


	Six Months Ended June 30, 2022
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	(3,768)		$	791	$	(2,977)



Adjustments for amounts recognized in Net gains (losses) in the Condensed Consolidated Statements of Operations	77			(16)		61
DAC/VOBA and Sales inducements	889		(1)	(187)		702

Change in unrealized gains (losses) on available-for-sale securities	(2,802)			588		(2,214)

Derivatives:
Derivatives	49		(2)	(10)		39
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(9)			2		(7)
Change in unrealized gains (losses) on derivatives	40			(8)		32




Change in Accumulated other comprehensive income (loss)	$	(2,762)		$	580	$	(2,182)

(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

(2) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)


	Three Months Ended June 30, 2021
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	609		$	(128)	$	481

Other	(1)			—		(1)

Adjustments for amounts recognized in Net gains (losses) in the Condensed Consolidated Statements of Operations	(11)			3		(8)
DAC/VOBA and Sales inducements	(151)			32		(119)

Change in unrealized gains (losses) on available-for-sale securities	446			(93)		353

Derivatives:
Derivatives	5		(1)	(1)		4
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(5)			1		(4)
Change in unrealized gains (losses) on derivatives	—			—		—

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(1)			—		(1)
Change in pension and other postretirement benefits liability	(1)			—		(1)
Change in Accumulated other comprehensive income (loss)	$	445		$	(93)	$	352

(1) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)


	Six Months Ended June 30, 2021
	Before-Tax Amount			Income Tax		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	(419)		$	89	$	(330)

Other	(1)			—		(1)

Adjustments for amounts recognized in Net gains (losses) in the Condensed Consolidated Statements of Operations	(517)			109		(408)
DAC/VOBA and Sales inducements	198		(1)	(42)		156
Premium deficiency reserve adjustment	434			(91)		343
Change in unrealized gains (losses) on available-for-sale securities	(305)			65		(240)

Derivatives:
Derivatives	4		(2)	(1)		3
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(11)			2		(9)
Change in unrealized gains (losses) on derivatives	(7)			1		(6)

Pension and other postretirement benefits liability:
Amortization of prior service cost recognized in Operating expenses in the Condensed Consolidated Statements of Operations	(1)			—		(1)
Change in pension and other postretirement benefits liability	(1)			—		(1)
Change in Accumulated other comprehensive income (loss)	$	(313)		$	66	$	(247)

(1) See the Deferred Policy Acquisition Costs and Value of Business Acquired Note to these Condensed Consolidated Financial Statements for additional information.

(2) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.

8. Income Taxes

The Company's effective tax rates for the three and six months ended June 30, 2022 were (57.1)% and (38.5)%, respectively. The effective tax rates differed from the statutory rate of 21% primarily due to the effect of the dividends received deduction ("DRD") and tax credits.

The Company's effective tax rates for the three and six months ended June 30, 2021 were 16.2% and 17.8%, respectively. The effective tax rates differed from the statutory rate of 21% primarily due to the effect of the DRD and tax credits.

Valuation allowances are provided when it is considered more likely than not that some portion or all of the deferred tax assets ("DTAs") will not be realized. The Company reviews all available positive and negative evidence to determine if a valuation allowance is recorded, including historical and projected pre-tax book income, tax planning strategies and reversals of temporary differences. As of June 30, 2022, the Company had year-to-date losses on securities of $2,762 in Other comprehensive income primarily driven by increases in interest rates. The Company determined that the increase in unrealized losses on fixed income investments will be offset in future years by the ordinary income produced from these investments as they reach maturity. Additionally, operating income remained positive for the period and was largely consistent with the 2021 year-end valuation allowance analysis. After evaluating the positive and negative evidence, the Company did not change its judgement regarding the realization of DTAs and did not establish a valuation allowance. For more information related to the valuation allowance, refer to the Income Taxes Note to the Consolidated Financial Statements included in Part II, Item 8 of the Annual Report on form 10-K.


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Tax Sharing Agreement

The results of the Company's operations are included in the consolidated tax return of Voya Financial. Generally, the Company's consolidated financial statements recognize the current and deferred income tax consequences that result from the Company's activities during the current and preceding periods pursuant to the provisions of Income Taxes (ASC Topic 740) as if the Company were a separate taxpayer rather than a member of Voya Financial's consolidated income tax return group with the exception of any net operating loss carryforwards and capital loss carryforwards, which are recorded pursuant to the tax sharing agreement. If the Company instead were to follow a separate taxpayer approach without any exceptions, there would be no impact to income tax expense (benefit) for the periods indicated above. Also, any current tax benefit related to the Company's tax attributes realized by virtue of its inclusion in the consolidated tax return of Voya Financial would have been recorded directly to equity rather than income. Under the tax sharing agreement, Voya Financial will pay the Company for the tax benefits of ordinary and capital losses only in the event that the consolidated tax group actually uses the tax benefit of losses generated.

Tax Regulatory Matters

For the tax years 2020 through 2022, the Company participated in the Internal Revenue Service ("IRS") Compliance Assurance Process ("CAP"), which is a continuous audit program provided by the IRS. For the 2020 tax year, the Company was in the Compliance Maintenance Bridge ("Bridge") phase of CAP. In the Bridge phase, the IRS did not conduct any review or provide any letters of assurance for that tax year.

9. Financing Agreements

Reciprocal Loan Agreement

The Company maintains a reciprocal loan agreement with Voya Financial, an affiliate, to facilitate the handling of unanticipated short-term cash requirements that arise in the ordinary course of business. Under this agreement, which expires on April 1, 2026, either party can borrow from the other up to 3.0% of the Company’s statutory admitted assets as of the preceding December 31. Interest on any borrowing by either the Company or Voya Financial is charged at a rate based on the prevailing market rate for similar third-party borrowings or securities.

Under this agreement, the Company incurred immaterial interest expense for the three and six months ended June 30, 2022. The Company earned $2 and $3 of interest income for the three months and six months ended June 30, 2022, respectively. The Company incurred immaterial interest expense for the three and six months ended June 30, 2021. The Company earned $1 interest income for the three and six months ended June 30, 2021. As of June 30, 2022, VRIAC had no outstanding receivables and VIPS had an outstanding payable of $80. As of December 31, 2021, VRIAC had an outstanding receivable of $130 and VIPS had a $19 outstanding payable from/to Voya Financial under the reciprocal loan agreement.

10. Commitments and Contingencies

Commitments

Through the normal course of investment operations, the Company commits to either purchase or sell securities, mortgage loans, or money market instruments, at a specified future date and at a specified price or yield. The inability of counterparties to honor these commitments may result in either a higher or lower replacement cost. Also, there is likely to be a change in the value of the securities underlying the commitments. As of June 30, 2022, the Company had off-balance sheet commitments to acquire mortgage loans of $185 and purchase limited partnerships and private placement investments of $737.

Restricted Assets

The Company is required to maintain assets on deposit with various regulatory authorities to support its insurance operations. The Company may also post collateral in connection with certain securities lending, repurchase agreements, funding agreements, letter of credit ("LOC") and derivative transactions as described further in this note.


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The components of the fair value of the restricted assets were as follows as of the dates indicated:


	June 30, 2022		December 31, 2021
Fixed maturity collateral pledged to FHLB(1)	$	1,238	$	1,124
FHLB restricted stock(2)	43		47
Other fixed maturities-state deposits	13		14
Cash and cash equivalents	3		3
Securities pledged(3)	799		799
Total restricted assets	$	2,096	$	1,987

(1) Included in Fixed maturities, available for sale, at fair value on the Condensed Consolidated Balance Sheets.

(2) Included in Other investments on the Condensed Consolidated Balance Sheets.

(3) Includes the fair value of loaned securities of $695 and $739 as of June 30, 2022 and December 31, 2021, respectively. In addition, as of June 30, 2022 and December 31, 2021, the Company delivered securities as collateral of $104 and $60, respectively. Loaned securities and securities delivered as collateral are included in Securities pledged on the Condensed Consolidated Balance Sheets.

Federal Home Loan Bank Funding

The Company is a member of the Federal Home Loan Bank of Boston ("FHLB") and is required to pledge collateral to back funding agreements issued to the FHLB. As of June 30, 2022 and December 31, 2021, the Company had $926 and $925, respectively, in non-putable funding agreements, which are included in Future policy benefits and contract owner account balances on the Condensed Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, assets with a market value of approximately $1,238 and $1,124, respectively, collateralized the FHLB funding agreements. Assets pledged to the FHLB are included in Fixed maturities, available-for-sale, at fair value on the Condensed Consolidated Balance Sheets.

Litigation, Regulatory Matters and Loss Contingencies

Litigation, regulatory and other loss contingencies arise in connection with the Company's activities as a diversified financial services firm. The Company is a defendant in a number of litigation matters arising from the conduct of its business, both in the ordinary course and otherwise. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages and other relief. Claimants are not always required to specify the monetary damages they seek or they may be required only to state an amount sufficient to meet a court's jurisdictional requirements. Moreover, some jurisdictions allow claimants to allege monetary damages that far exceed any reasonably possible verdict. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim. Litigation against the Company includes a variety of claims including negligence, breach of contract, fraud, violation of regulation or statute, breach of fiduciary duty, negligent misrepresentation, failure to supervise, elder abuse and other torts.

As with other financial services companies, the Company periodically receives informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. It is the practice of the Company to cooperate fully in these matters.

The outcome of a litigation or regulatory matter is difficult to predict and the amount or range of potential losses associated with these or other loss contingencies requires significant management judgment. It is not possible to predict the ultimate outcome or to provide reasonably possible losses or ranges of losses for all pending regulatory matters, litigation and other loss contingencies.

While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company's financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters, nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company's litigation or regulatory matters, or liabilities arising from other


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Voya Retirement Insurance and Annuity Company and Subsidiaries

(A wholly owned subsidiary of Voya Holdings Inc.)

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

loss contingencies, could, from time to time, have a material adverse effect upon the Company's results of operations or cash flows in a particular quarterly or annual period.

For some matters, the Company is able to estimate a possible range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company, however, believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of June 30, 2022, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, as not material to the Company.

For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company's accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews.

Litigation includes Ravarino, et al. v. Voya Financial, Inc., et al. (USDC District of Connecticut, No. 3:21-cv-01658) (filed December 14, 2021). In this putative class action, the plaintiffs allege that the named defendants, which include the Company, breached their fiduciary duties of prudence and loyalty in the administration of the Voya 401(k) Savings Plan. The plaintiffs claim that the named defendants did not exercise proper prudence in their management of allegedly poorly performing investment options, including proprietary funds, and passed excessive investment-management and other administrative fees for proprietary and non-proprietary funds onto plan participants. The plaintiffs also allege that the defendants engaged in self-dealing through the inclusion of the Voya Stable Value Option into the plan offerings and by setting the “crediting rate” for participants’ investment in the Stable Value Fund artificially low in relation to Voya’s general account investment returns in order to maximize the spread and Voya’s profits at the participants’ expense. The complaint seeks disgorgement of unjust profits as well as costs incurred. The Company denies the allegations, which it believes are without merit, and intends to defend the case vigorously.

Finally, industry wide, life insurers continue to be exposed to class action litigation related to the cost of insurance rates and periodic deductions from cash value. Common allegations include that insurance companies have breached the terms of their universal life insurance policies by establishing or increasing the cost of insurance rates using cost factors not permitted by the contract, thereby unjustly enriching themselves. This litigation is generally known as cost of insurance litigation.

11. Related Party Transactions

Operating Agreements

The Company has operating agreements whereby the Company provides or receives services from affiliated entities. For the three and six months ended June 30, 2022, revenues with affiliated entities related to these agreements were $21 and $44. For the three and six months ended June 30, 2021, revenues with affiliated entities related to these agreements were $25 and $48. For the three and six months ended June 30, 2022, expenses with affiliated entities related to the aforementioned operating agreements, as amended, were $147 and $308. For the three and six months ended June 30, 2021, expenses with affiliated entities related to the aforementioned operating agreements, as amended, were $166 and $330


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Item 2. Management’s Narrative Analysis of the Results of Operations and Financial Condition

(Dollar amounts in millions, unless otherwise stated)

For the purposes of the discussion in this Quarterly Report on Form 10-Q, the term "VRIAC" refers to Voya Retirement Insurance and Annuity Company, and the terms "Company," "we," "our," "us" refer to Voya Retirement Insurance and Annuity Company and its subsidiaries. We are a direct, wholly owned subsidiary of Voya Holdings Inc., which is a direct, wholly owned subsidiary of Voya Financial, Inc.

The following discussion and analysis presents a review of our results of operations for the three and six months ended June 30, 2022 and 2021 and financial condition as of June 30, 2022 and December 31, 2021. This item should be read in its entirety and in conjunction with the Condensed Consolidated Financial Statements and related notes contained in Part I., Item 1. of this Quarterly Report on Form 10-Q, as well as "Management's Narrative Analysis of the Results of Operations and Financial Condition" section contained in our Annual Report on Form 10-K for the year ended December 31, 2021 ("Annual Report on Form 10-K").

In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. See Note Concerning Forward-Looking Statements.

Overview

VRIAC is a stock life insurance company domiciled in the State of Connecticut. VRIAC and its wholly owned subsidiaries (collectively, the "Company") provide financial products and services in the United States. VRIAC is authorized to conduct its insurance business in all states and in the District of Columbia, Guam, Puerto Rico and the Virgin Islands.

On January 4, 2021, VRIAC's ultimate parent, Voya Financial, completed a series of transactions pursuant to a Master Transaction Agreement (the “Resolution MTA”) entered into on December 18, 2019 with Resolution Life U.S. Holdings Inc., a Delaware corporation (“Resolution Life US”), pursuant to which Resolution Life US acquired all of the shares of the capital stock of Security Life of Denver Company ("SLD") and Security Life of Denver International Limited ("SLDI"), including the capital stock of several subsidiaries of SLD and SLDI. Concurrently with the sale, SLD entered into reinsurance agreements with ReliaStar Life Insurance Company ("RLI"), ReliaStar Life Insurance Company of New York (“RLNY”), and VRIAC, each of which is a direct or indirect wholly owned subsidiary of Voya Financial. The reinsurance agreements along with the sale of the legal entities noted above (referred to as the "Individual Life Transaction") resulted in the disposition of substantially all of Voya Financial's life insurance and legacy non-retirement annuity businesses and related assets. See the Reinsurance Note in Part II, Item 8. of our Annual Report on Form 10-K for more information regarding the Individual Life Transaction.

Effective as of March 1, 2021, Voya Retirement Insurance and Annuity Company acquired 49.9% of the issued and outstanding common stock of Voya Special Investments, Inc. from Voya Financial, Inc. The investment has been accounted for as an equity method investment and recognized within Other investments in the Condensed Consolidated Balance Sheets. Also, effective as of March 1, 2021, the Company acquired $80 million of SLD issued surplus notes and $73 million of Resolution (Life U.S. Intermediate Holdings Ltd.) issued preferred shares from affiliated entities, which were received in connection with the Individual Life Transaction.

On June 9, 2021, Voya Financial completed the sale of the independent financial planning channel of Voya Financial Advisors ("VFA") to Cetera Financial Group, Inc, ("Cetera"), one of the nation’s largest networks of independently managed broker-dealers. VFA is one of the channels through which VRIAC distributes its products. In connection with this transaction, VFA transferred more than 800 independent financial professionals serving retail customers with approximately $38 billion in assets under advisement to Cetera, while retaining approximately 500 field and phone-based financial professionals who support our business.


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Impact of New Accounting Pronouncements

For information regarding the impact of new accounting pronouncements, see the Business, Basis of Presentation and Significant Accounting Policies Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.

Critical Accounting Judgments and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("U.S. GAAP") requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates and assumptions are evaluated on an on-going basis based on historical developments, market conditions, industry trends and other information that is reasonable under the circumstances. There can be no assurance that actual results will conform to estimates and assumptions and that reported results of operations will not be materially affected by the need to make future accounting adjustments to reflect changes in these estimates and assumptions from time to time. The inputs into our estimates and assumptions consider the economic implications of COVID-19 on our critical and significant accounting estimates. Those estimates are inherently subject to change and actual results could differ from those estimates, and the differences may be material to the accompanying Condensed Consolidated Financial Statements.

We have identified the following accounting judgments and estimates as critical in that they involve a higher degree of judgment and are subject to a significant degree of variability:

•Reserves for future policy benefits;

•Deferred policy acquisition costs ("DAC") and value of business acquired ("VOBA");

•Valuation of investments and derivatives;

•Impairments;

•Income taxes; and

•Contingencies.

In developing these accounting estimates, we make subjective and complex judgments that are inherently uncertain and subject to material changes as facts and circumstances develop. Although variability is inherent in these estimates, we believe the amounts provided are appropriate based on the facts available upon preparation of the Condensed Consolidated Financial Statements.

The above critical accounting estimates are described in the Business, Basis of Presentation and Significant Accounting Policies Note in our Consolidated Financial Statements in Part II, Item 8. of our Annual Report on Form 10-K.

Assumptions and Periodic Review

Changes in assumptions can have a significant impact on DAC and VOBA balances, amortization rates, reserve levels and results of operations. Assumptions are management's best estimates of future outcome. We periodically review these assumptions against actual experience and, based on additional information that becomes available, update our assumptions. Deviation of emerging experience from our assumptions could have a significant effect on our DAC and VOBA, reserves and the related results of operations.

Income Taxes

See the Income Taxes Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for more information on income taxes.

Recent Developments

All statements in this section, other than statements of historical fact, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. For a discussion of factors that could cause actual results, performance, or events to differ from those discussed in any forward-looking statement, including in a material manner, see Note Concerning Forward-Looking Statements in this Quarterly Report on Form 10-Q.


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COVID-19 and its Effect on the Global Economy

COVID-19, the disease caused by the novel coronavirus, has had a significant adverse effect on the global economy since March of 2020. Even though the pace of vaccinations are increasing in many countries, including the United States, the disease continues to spread throughout the world. The persistence of new infections, including the introduction of new variants, has slowed the re-opening of the U.S. economy and, even in regions where restrictions have largely been lifted, economic activity has been slow to recover. In addition, while the ability to impose federal vaccine mandates have been curtailed by the U.S. Supreme Court, we continue to be subject to various state and local vaccine mandates that would require at least a portion of our U.S. employees to be vaccinated, which could potentially impact our work force. Longer-term, the economic outlook is uncertain, but may depend in significant part on progress with respect to effective therapies to treat COVID-19 or the approval of additional vaccines and the pace at which they are administered globally.

Effect on VRIAC - Financial Condition, Capital and Liquidity

Because both public health and economic circumstances are changing so rapidly at present, it is impossible to predict how COVID-19 will affect VRIAC’s future financial condition. Absent a further significant and prolonged market shock, however, we do not anticipate a material effect on our balance sheet or liquidity. Our capital levels remain strong and significantly above our targets.

Effect on VRIAC - Results of Operations

Predicting with accuracy the consequences of COVID-19 on our results of operations is impossible. To date, the most significant effects of adverse economic conditions have been on our fee-based income, with net investment income experiencing milder effects. Underwriting income, principally affected by increases to mortality and morbidity due to the disease, has also been negatively affected.

The effects of COVID-19 have become less distinguishable as other geopolitical developments have driven uncertainty in the macroeconomic environment. Ongoing equity market volatility and declines drive variability in AUM levels and associated fee-based margin. Higher interest rate levels have provided and may continue to provide some offsetting revenue lift on our general account fixed products. On a prospective basis, general economic uncertainty due to COVID-19, combined with other factors and events, could serve to negatively impact sales and flows into our products.


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Results of Operations


($ in millions)	Three Months Ended June 30,						Six Months Ended June 30,
	2022		2021		Change			2022		2021		Change
Revenues:
Net investment income	$	420	$	482	$	(62)		$	869	$	971	$	(102)
Fee income	246		271		(25)			509		530		(21)
Premiums	3		6		(3)			11		(2,441)		2,452
Broker-dealer commission revenue	1		—		1			1		1		—





Total net gains (losses)	(136)		(35)		(101)			(318)		405		(723)
Other revenue	17		10		7			28		17		11
Total revenues	551		734		(183)			1,100		(517)		1,617
Benefits and expenses:
Interest credited and other benefits to contract owners/policyholders	196		176		20			393		(1,880)		2,273
Operating expenses	303		307		(4)			599		592		7
Broker-dealer commission expense	1		—		1			1		1		—
Net amortization of Deferred policy acquisition costs and Value of business acquired	37		29		8			68		78		(10)


Total benefits and expenses	537		512		25			1,061		(1,209)		2,270
Income (loss) before income taxes	14		222		(208)			39		692		(653)
Income tax expense (benefit)	(8)		36		(44)			(15)		123		(138)
Net income (loss)	$	22	$	186	$	(164)		$	54	$	569	$	(515)

Three Months Ended June 30, 2022 compared to Three Months Ended June 30, 2021

Revenues

Net investment income decreased by $62 million from $482 million to $420 million primarily due to:

•lower alternative investment and prepayment fee income in the current period primarily driven by the impact of equity market performance.

Fee income decreased by $25 million from $271 million to $246 million primarily due to:

•a decrease in separate account and institutional/mutual fund assets under management driven by equity market performance.

Total net gains (losses) increased by $101 million from a loss of $35 million to a loss of $136 million primarily due to:

•unfavorable changes in other investments driven by the sale of the Company's stake in VA Capital in the prior period;

•unfavorable changes in equity securities, available-for-sale driven by market value movements; and

•higher gains on mortgage loans in the prior period driven by a reduction in CECL allowance.

The increase was partially offset by:

•favorable changes in derivatives - Voya Investment Management (VIM) (including embedded derivatives) and Non-VIM product embedded derivatives due to interest rate movements; and

•favorable changes in fixed maturities, using the fair value option due to interest rate movements and spread changes.


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Other revenue increased by $7 million from $10 million to $17 million primarily due to:

•an increase in income resulting from market value adjustments on fixed funds related to plan surrenders; and

•an increase in VIPS (Voya Institutional Plan Services) related miscellaneous income.

Benefits and Expenses

Interest credited and other benefits to contract owners/policyholders increased by $20 million from $176 million to $196 million primarily due to:

•an increase in treasury rates which has led to higher credited rates.

Net amortization of DAC and VOBA increased by $8 million from $29 million to $37 million primarily due to:

•unfavorable unlocking in the current period compared to favorable unlocking in the prior period due to separate account performance.

The increase was partially offset by:

•DAC/VOBA balance within the Annuities business being written down to zero in the prior period as the block did not pass Loss Recognition Testing (LRT); and

•lower amortization due to lower gross profits.

Income tax expense (benefit) changed by $44 million from an expense of $36 million to a benefit of $8 million primarily due to:

•a decrease in income before income taxes.

Six Months Ended June 30, 2022 compared to Six Months Ended June 30, 2021

Revenues

Net investment income decreased by $102 million from $971 million to $869 million primarily due to:

•lower alternative investment and prepayment fee income in the current period primarily driven by the impact of equity market performance.

Premiums increased by $2,452 million from $(2,441) million to $11 million primarily due to:

•the close of the Individual Life Transaction in the prior period, at which point the Pension Risk Transfer (PRT) and annuity business was ceded to Resolution.

Total net gains (losses) changed by $723 million from a gain of $405 million to a loss of $318 million primarily due to:

•higher gains on fixed maturities, including securities pledged, in the prior period due to reinsurance agreements related to the Life Transaction and higher CECL allowance for certain fixed maturity securities;

•unfavorable changes in fixed maturities, using the fair value option due to interest rate movements and spread changes;

•unfavorable changes in equity securities, available-for-sale driven by market value movements;

•unfavorable changes in the fair value of embedded derivatives on product guarantees excluding performance risk as a result of interest rate movements;

•higher gains on mortgage loans in the prior period driven by the sale of loans from reinsurance portfolios to Resolution upon the close of the transaction and a decline in CECL allowance; and

•unfavorable changes in other investments driven by the sale of the Company's stake in VA Capital in the prior period.

The increase was partially offset by:

•favorable changes in derivatives - VIM (including embedded derivatives) due to interest rate changes.


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Benefits and Expense

Interest credited and other benefits to contract owners/policyholders increased by $2,273 million from $(1,880) million to $393 million primarily due to:

•the ceding of the PRT and annuity business to Resolution as part of the Life Transaction in the prior period.

The increase was partially offset by:

•a decrease in PRT reserves which were updated to reflect a change in yield assumptions related to liabilities in the current period that did not occur in the prior period.

Income tax expense (benefit) changed by $138 million from an expense of $123 million to a benefit of $15 million primarily due to:

•a decrease in income before income taxes.


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Investments

See Management's Narrative Analysis of the Results of Operations and Financial Condition in Part II, Item. 7. of our Annual Report on Form 10-K for information on our investment strategy.

See the Investments Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for more information on investments.

Portfolio Composition

The following table presents the investment portfolio as of the dates indicated:


	June 30, 2022				December 31, 2021
($ in millions)	Carrying Value		% of Total		Carrying Value		% of Total
Fixed maturities, available-for-sale, excluding securities pledged	$	21,239	72.7	%	$	24,360	75.6	%
Fixed maturities, at fair value option	1,248		4.3	%	1,253		3.9	%

Equity securities, at fair value	144		0.5	%	141		0.4	%

Mortgage loans on real estate	4,164		14.3	%	4,222		13.1	%

Policy loans	163		0.6	%	171		0.5	%
Limited partnerships/corporations	1,051		3.6	%	980		3.0	%
Derivatives	240		0.8	%	149		0.5	%
Securities pledged	799		2.7	%	799		2.5	%
Other investments	142		0.5	%	143		0.5	%
Total investments	$	29,190	100.0	%	$	32,218	100.0	%

Fixed Maturities

The following tables present total fixed maturities, including securities pledged, by market sector as of the dates indicated:


	June 30, 2022
($ in millions)	Amortized Cost		% of Total		Fair Value		% of Total
Fixed maturities:
U.S. Treasuries	$	559	2.2	%	$	595	2.6	%
U.S. Government agencies and authorities	20		0.1	%	18		0.1	%
State, municipalities, and political subdivisions	708		2.8	%	665		2.9	%
U.S. corporate public securities	7,337		29.5	%	6,684		28.5	%
U.S. corporate private securities	3,743		15.0	%	3,536		15.2	%
Foreign corporate public securities and foreign governments(1)	2,372		9.5	%	2,135		9.2	%
Foreign corporate private securities(1)	2,692		10.8	%	2,554		11.0	%
Residential mortgage-backed securities	3,154		12.7	%	3,086		13.2	%
Commercial mortgage-backed securities	2,937		11.8	%	2,743		11.8	%
Other asset-backed securities	1,359		5.6	%	1,270		5.5	%
Total fixed maturities, including securities pledged	$	24,881	100.0	%	$	23,286	100.0	%

(1) Primarily U.S. dollar denominated.


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	December 31, 2021
($ in millions)	Amortized Cost		% of Total		Fair Value		% of Total
Fixed maturities:
U.S. Treasuries	$	554	2.3	%	$	691	2.6	%
U.S. Government agencies and authorities	20		0.1	%	20		0.1	%
State, municipalities, and political subdivisions	716		2.9	%	803		3.0	%
U.S. corporate public securities	7,314		30.1	%	8,269		31.4	%
U.S. corporate private securities	3,620		14.9	%	3,939		14.9	%
Foreign corporate public securities and foreign governments(1)	2,352		9.7	%	2,591		9.8	%
Foreign corporate private securities(1)	2,563		10.5	%	2,703		10.2	%
Residential mortgage-backed securities	3,081		12.7	%	3,164		12.0	%
Commercial mortgage-backed securities	2,766		11.4	%	2,881		10.9	%
Other asset-backed securities	1,341		5.4	%	1,351		5.1	%
Total fixed maturities, including securities pledged	$	24,327	100.0	%	$	26,412	100.0	%

(1) Primarily U.S. dollar denominated.

As of June 30, 2022, the average duration of our fixed maturities portfolio, including securities pledged, is between 7.0 and 7.5 years.

Fixed Maturities Credit Quality - Ratings

For information regarding our fixed maturities credit quality ratings, see the Management's Narrative Analysis of the Results of Operations and Financial Condition in Part II, Item. 7. of our Annual Report on Form 10-K.


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The following tables present credit quality of fixed maturities, including securities pledged, using NAIC designations as of the dates indicated:


($ in millions)	June 30, 2022
NAIC Quality Designation	1			2			3			4			5			6			Total Fair Value
U.S. Treasuries	$	595		$	—		$	—		$	—		$	—		$	—		$	595
U.S. Government agencies and authorities	18			—			—			—			—			—			18
State, municipalities and political subdivisions	612			53			—			—			—			—			665
U.S. corporate public securities	2,166			4,288			206			15			2			7			6,684
U.S. corporate private securities	1,227			2,049			189			70			1			—			3,536
Foreign corporate public securities and foreign governments(1)	670			1,336			79			40			—			10			2,135
Foreign corporate private securities(1)	326			2,060			126			32			10			—			2,554
Residential mortgage-backed securities	2,918			118			12			22			6			10			3,086
Commercial mortgage-backed securities	2,299			380			49			14			1			—			2,743
Other asset-backed securities	1,037			221			2			5			5			—			1,270
Total fixed maturities	$	11,868		$	10,505		$	663		$	198		$	25		$	27		$	23,286
% of Fair Value	51.0%			45.1%			2.8%			0.9%			0.1%			0.1%			100.0%
(1) Primarily U.S. dollar denominated.

($ in millions)	December 31, 2021
NAIC Quality Designation	1			2			3			4			5			6			Total Fair Value
U.S. Treasuries	$	691		$	—		$	—		$	—		$	—		$	—		$	691
U.S. Government agencies and authorities	20			—			—			—			—			—			20
State, municipalities and political subdivisions	737			65			1			—			—			—			803
U.S. corporate public securities	2,697			5,285			239			41			7			—			8,269
U.S. corporate private securities	1,315			2,300			243			79			2			—			3,939
Foreign corporate public securities and foreign governments(1)	789			1,689			106			7			—			—			2,591
Foreign corporate private securities(1)	223			2,202			146			67			—			65			2,703
Residential mortgage-backed securities	3,116			22			—			1			10			15			3,164
Commercial mortgage-backed securities	2,488			332			54			7			—			—			2,881
Other asset-backed securities	1,112			221			4			6			8			—			1,351
Total fixed maturities	$	13,188		$	12,116		$	793		$	208		$	27		$	80		$	26,412
% of Fair Value	49.9		%	45.9		%	3.0		%	0.8		%	0.1		%	0.3		%	100.0		%
(1) Primarily U.S. dollar denominated.


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The following tables present credit quality of fixed maturities, including securities pledged, using ARO ratings as of the dates

indicated:


($ in millions)	June 30, 2022
ARO Quality Ratings	AAA			AA			A			BBB			BB and Below			Total Fair Value
U.S. Treasuries	$	595		$	—		$	—		$	—		$	—		$	595
U.S. Government agencies and authorities	16			2			—			—			—			18
State, municipalities and political subdivisions	47			394			172			52			—			665
U.S. corporate public securities	23			368			1,944			4,075			274			6,684
U.S. corporate private securities	29			107			1,036			2,143			221			3,536
Foreign corporate public securities and foreign governments(1)	8			142			598			1,246			141			2,135
Foreign corporate private securities(1)	—			30			254			2,139			131			2,554
Residential mortgage-backed securities	2,051			413			215			196			211			3,086
Commercial mortgage-backed securities	1,021			281			613			725			103			2,743
Other asset-backed securities	96			278			654			217			25			1,270
Total fixed maturities	$	3,886		$	2,015		$	5,486		$	10,793		$	1,106		$23,286
% of Fair Value	16.7		%	8.7		%	23.6		%	46.3		%	4.7		%	100.0		%
(1) Primarily U.S. dollar denominated.

($ in millions)	December 31, 2021
ARO Quality Ratings	AAA			AA			A			BBB			BB and Below			Total Fair Value
U.S. Treasuries	$	691		$	—		$	—		$	—		$	—		$	691
U.S. Government agencies and authorities	18			—			2			—			—			20
State, municipalities and political subdivisions	47			465			225			65			1			803
U.S. corporate public securities	46			483			2,429			5,047			264			8,269
U.S. corporate private securities	32			68			1,147			2,447			245			3,939
Foreign corporate public securities and foreign governments(1)	8			176			716			1,562			129			2,591
Foreign corporate private securities(1)	—			29			198			2,266			210			2,703
Residential mortgage-backed securities	2,089			214			159			222			480			3,164
Commercial mortgage-backed securities	1,167			289			580			753			92			2,881
Other asset-backed securities	150			303			647			217			34			1,351
Total fixed maturities	$	4,248		$	2,027		$	6,103		$	12,579		$	1,455		$	26,412
% of Fair Value	16.1		%	7.7		%	23.1		%	47.6		%	5.5		%	100.0		%
(1) Primarily U.S. dollar denominated.


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Fixed maturities rated BB and below may have speculative characteristics and changes in economic conditions or other circumstances that are more likely to lead to a weakened capacity of the issuer to make principal and interest payments than is the case with higher rated fixed maturities.

Unrealized Capital Losses

Gross unrealized losses on fixed maturities, including securities pledged, increased $1,736 million from $111 million to $1,847 million for the six months ended June 30, 2022. The large increase in unrealized losses was driven primarily by materially higher interest rates across the curve and moderately wider credit spreads.

As of June 30, 2022 and December 31, 2021, we held no fixed maturity securities with unrealized capital losses in excess of $10 million.

As of June 30, 2022, we had $1.4 billion of energy sector fixed maturity securities, constituting 5.8% of the total fixed maturities portfolio, with gross unrealized capital losses of $91 million, including no energy sector fixed maturity security with unrealized capital loss in excess of $10 million. As of June 30, 2022, our fixed maturity exposure to the energy sector is comprised of 88.6% investment grade securities.

As of December 31, 2021, we held $1.6 billion of energy sector fixed maturity securities, constituting 6.0% of the total fixed maturities portfolio, with gross unrealized capital losses of $14 million, including no energy sector fixed maturity security with unrealized capital loss in excess of $10 million. As of December 31, 2021, our fixed maturity exposure to the energy sector is comprised of 87.0% investment grade securities.

See the Investments Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for further information on unrealized capital losses.

Residential Mortgage-backed Securities

The following tables present our residential mortgage-backed securities as of June 30, 2022 and December 31, 2021:


	June 30, 2022
($ in millions)	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives		Fair Value
Prime Agency	$	1,393	$	20	$	18	$	1	$	1,396
Prime Non-Agency	1,728		11		88		1		1,652
Alt-A	23		4		1		2		28
Sub-Prime(1)	23		1		—		—		24
Total RMBS	$	3,167	$	36	$	107	$	4	$	3,100
(1) Includes subprime other asset backed securities.
	December 31, 2021
($ in millions)	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives		Fair Value
Prime Agency	$	1,501	$	60	$	5	$	3	$	1,559
Prime Non-Agency	1,543		31		14		1		1,561
Alt-A	27		5		1		3		34
Sub-Prime(1)	25		3		—		—		28
Total RMBS	$	3,096	$	99	$	20	$	7	$	3,182
(1) Includes subprime other asset backed securities.


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Commercial Mortgage-backed Securities

The following tables present our commercial mortgage-backed securities as of June 30, 2022 and December 31, 2021:


	June 30, 2022
($ in millions)	AAA				AA				A				BBB				BB and Below				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
2015 and prior	$	589	$	567	$	107	$	103	$	135	$	131	$	89	$	86	$	65	$	61	$	985	$	948
2016	23		21		16		16		25		24		24		21		—		—		88		82
2017	53		47		16		15		50		46		37		34		22		21		178		163
2018	73		69		19		17		68		65		29		26		17		16		206		193
2019	134		133		31		29		104		97		200		176		6		5		475		440
2020	62		60		22		20		46		40		106		93		—		—		236		213
2021	124		108		67		63		138		126		229		209		—		—		558		506
2022	18		16		19		18		89		84		85		80		—		—		211		198
Total CMBS	$	1,076	$	1,021	$	297	$	281	$	655	$	613	$	799	$	725	$	110	$	103	$	2,937	$	2,743

	December 31, 2021
($ in millions)	AAA				AA				A				BBB				BB and Below				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
2015 and prior	$	585	$	649	$	107	$	111	$	129	$	133	$	102	$	103	$	64	$	62	$	987	$	1,058
2016	23		25		16		17		22		23		24		24		—		—		85		89
2017	53		58		18		18		46		47		35		36		22		23		174		182
2018	72		80		19		19		74		75		47		48		2		2		214		224
2019	146		163		31		31		112		114		198		199		6		5		493		512
2020	64		66		22		22		45		46		118		119		—		—		249		253
2021	126		126		71		71		142		142		225		224		—		—		564		563
Total CMBS	$	1,069	$	1,167	$	284	$	289	$	570	$	580	$	749	$	753	$	94	$	92	$	2,766	$	2,881

As of June 30, 2022, 83.8% and 13.9% of CMBS investments were designated as NAIC-1 and NAIC-2, respectively. As of December 31, 2021, 86.4% and 11.5% of CMBS investments were designated as NAIC-1 and NAIC-2, respectively.


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Other Asset-backed Securities

The following tables present our other asset-backed securities as of June 30, 2022 and December 31, 2021:


	June 30, 2022
($ in millions)	AAA				AA				A				BBB				BB and Below				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Collateralized Obligation	$	50	$	48	$	233	$	221	$	617	$	577	$	72	$	67	$	15	$	12	$	987	$	925
Auto-Loans	—		—		5		5		5		5		—		—		—		—		10		10
Student Loans	12		12		53		51		1		—		2		1		—		—		68		64
Credit Card loans	—		—		—		—		2		2		—		—		—		—		2		2
Other Loans	38		35		1		1		78		70		161		149		—		—		278		255
Total Other ABS(1)	$	100	$	95	$	292	$	278	$	703	$	654	$	235	$	217	$	15	$	12	$	1,345	$	1,256
(1) Excludes subprime other asset backed securities
	December 31, 2021
($ in millions)	AAA				AA				A				BBB				BB and Below				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
Collateralized Obligation	$	100	$	101	$	233	$	233	$	568	$	568	$	71	$	70	$	19	$	17	$	991	$	989
Auto-Loans	—		—		1		1		5		6		—		—		—		—		6		7
Student Loans	12		12		66		68		6		6		2		2		—		—		86		88
Credit Card loans	—		—		—		—		2		2		—		—		—		—		2		2
Other Loans	35		37		1		1		63		64		141		145		—		—		240		247
Total Other ABS(1)	$	147	$	150	$	301	$	303	$	644	$	646	$	214	$	217	$	19	$	17	$	1,325	$	1,333
(1) Excludes subprime other asset backed securities

As of June 30, 2022, 81.7% and 17.4% of Other ABS investments were designated as NAIC-1 and NAIC-2, respectively. As of December 31, 2021, 82.2% and 16.4% of Other ABS investments were designated as NAIC-1 and NAIC-2, respectively.

Mortgage Loans on Real Estate

As of June 30, 2022, our mortgage loans on real estate portfolio had a weighted average DSC of 2.0 times and a weighted average LTV ratio of 46.6%. As of December 31, 2021, our mortgage loans on real estate portfolio had a weighted average DSC of 2.0 times and a weighted average LTV ratio of 46.6%. See the Investments Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for further information on mortgage loans on real estate.

Impairments

We evaluate available-for-sale fixed maturities for impairment on a regular basis. The assessment of whether impairments have occurred is based on a case-by-case evaluation of the underlying reasons for the decline in estimated fair value. See the Business, Basis of Presentation and Significant Accounting Policies Note to our Consolidated Financial Statements in Part II, Item 8. of our Annual Report on Form 10-K for the policy used to evaluate whether the investments are impaired.

See the Investments Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for further information on impairments.


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European Exposures

We quantify and allocate our exposure to the region by attempting to identify aspects of the region or country risk to which we are exposed. Among the factors we consider are the nationality of the issuer, the nationality of the issuer's ultimate parent, the corporate and economic relationship between the issuer and its parent, as well as the political, legal and economic environment in which each functions. By undertaking this assessment, we believe that we develop a more accurate assessment of the actual geographic risk, with a more integrated understanding of contributing factors to the full risk profile of the issuer.

In the normal course of our ongoing risk and portfolio management process, we closely monitor compliance with a credit limit hierarchy designed to minimize overly concentrated risk exposures by geography, sector and issuer. This framework takes into account various factors such as internal and external ratings, capital efficiency and liquidity and is overseen by a combination of Investment and Corporate Risk Management, as well as insurance portfolio managers focused specifically on managing the investment risk embedded in our portfolio.

While economic conditions in Europe have broadly improved, geopolitical tensions emanating from the Russia-Ukraine conflict remain a notable tail risk. Despite signs of economic improvement in the region, we continue to closely monitor our exposure to the region.

As of June 30, 2022, the Company's total European exposure had an amortized cost and fair value of $2,391 million and $2,186 million, respectively. Some of the major country level exposures were in the United Kingdom of $1,040 million, in France of $179 million, in The Netherlands of $195 million, in Switzerland of $156 million, in Germany of $162 million, and in Belgium of $83 million. Our direct exposure in Eastern Europe is comparatively small, with only $9 million of exposure in Russia and none in Ukraine or Belarus.

Liquidity and Capital Resources

Liquidity refers to our ability to access sufficient sources of cash to meet the requirements of our operating, investing and financing activities. Capital refers to our long-term financial resources available to support business operations and future growth. Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of the businesses, timing of cash flows on investments and products, general economic conditions and access to the capital markets and the other sources of liquidity and capital described herein.

Liquidity Management

Our principal available sources of liquidity are product charges, investment income, proceeds from maturity and sale of investments, proceeds from debt issuance and borrowing facilities, repurchase agreements, contract deposits, securities lending and capital contributions. Primary uses of these funds are payments of commissions and operating expenses, interest credits, investment purchases and contract maturities, withdrawals and surrenders and payment of dividends.

Our liquidity position is managed by maintaining adequate levels of liquid assets, such as cash, cash equivalents and short-term investments. As part of the liquidity management process, different scenarios are modeled to determine whether existing assets are adequate to meet projected cash flows. Key variables in the modeling process include interest rates, equity market movements, quantity and type of interest and equity market hedges, anticipated contract owner behavior, market value of the general account assets, variable separate account performance and implications of rating agency actions.

The fixed account liabilities are supported by a general account portfolio, principally composed of fixed rate investments with matching duration characteristics that can generate predictable, steady rates of return. The portfolio management strategy for the fixed account considers the assets available-for-sale. This strategy enables us to respond to changes in market interest rates, prepayment risk, relative values of asset sectors and individual securities and loans, credit quality outlook and other relevant factors. The objective of portfolio management is to maximize returns, taking into account interest rate and credit risk, as well as other risks. Our asset/liability management discipline includes strategies to minimize exposure to loss as interest rates and economic and market conditions change. In executing this strategy, we use derivative instruments to manage these risks. Our derivative counterparties are of high credit quality.


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Liquidity and Capital Resources

Additional sources of liquidity include borrowing facilities to meet short-term cash requirements that arise in the ordinary course of business. We maintain the following agreements:

•A reciprocal loan agreement with Voya Financial, an affiliate, whereby either party can borrow from the other up to 3.0% of VRIAC's statutory admitted assets as of the prior December 31. As of June 30, 2022, VRIAC had no outstanding receivables and VIPS had a $80 million outstanding payable. As of December 31, 2021, we had an outstanding receivable of $130 million and VIPS had a $19 million outstanding payable from/to Voya Financial under the reciprocal loan agreement. We and Voya Financial continue to maintain the reciprocal loan agreement and future borrowings by either party will be subjected to the reciprocal loan terms summarized above. Interest on any borrowing by either us or Voya Financial is charged at a rate based on the prevailing market rate for similar third-party borrowings or securities.

•We hold approximately 47.6% of our assets in marketable securities. These assets include cash, U.S. Treasuries, Agencies, Corporate Bonds, ABS, CMBS and collateralized mortgage obligations ("CMO") and Equity securities. In the event of a temporary liquidity need, cash may be raised by entering into repurchase agreements, dollar rolls and/or security lending agreements by temporarily lending securities and receiving cash collateral. Under our Liquidity Plan, up to 12% of our general account statutory admitted assets may be allocated to repurchase, securities lending and dollar roll programs. At the time a temporary cash need arises, the actual percentage of admitted assets available for repurchase transactions will depend upon outstanding allocations to the three programs. As of June 30, 2022, VRIAC had securities lending collateral assets of $619 million, which represents approximately 0.6% of its general account statutory admitted assets. As of December 31, 2021, VRIAC had securities lending collateral assets of $676 million, which represents approximately 0.5% of its general account statutory admitted assets.

Management believes that our sources of liquidity are adequate to meet our short-term cash obligations.

Capital Contributions and Dividends

During the six months ended June 30, 2022, VRIAC did not receive any capital contribution from its Parent. During the six months ended June 30, 2021, VRIAC received $318 million capital contribution from its Parent, comprised of cash and non-cash assets.

During the six months ended June 30, 2022, VRIAC paid an ordinary and extraordinary dividend to its Parent in the aggregate amount of $48 million and $809 million, respectively. During the six months ended June 30, 2021, VRIAC paid an ordinary and extraordinary dividends to its Parent in the aggregate amount of $78 million and $474 million, respectively.

Ratings

Our access to funding and our related cost of borrowing, collateral requirements for derivative instruments and the attractiveness of certain of our products to customers are affected by our credit ratings and insurance financial strength ratings, which are periodically reviewed by the rating agencies. Financial strength ratings and credit ratings are important factors affecting public confidence in an insurer and its competitive position in marketing products. Credit ratings are also important to our ability to raise capital through the issuance of debt and for the cost of such financing.

A downgrade in our credit ratings or the credit or financial strength ratings of our Parent or rated affiliates could have a material adverse effect on our results of operations and financial condition. See Risk Factors- A downgrade or a potential downgrade in our financial strength or credit ratings could result in a loss of business and adversely affect our results of operations and financial condition in Part I, Item 1A. of our Annual Report on Form 10-K for additional information.

Financial strength ratings represent the opinions of rating agencies regarding the financial ability of an insurance company to meet its obligations under an insurance policy. Credit ratings represent the opinions of rating agencies regarding an entity's ability to repay its indebtedness. These ratings are not a recommendation to buy or hold any of our securities and they may be revised or revoked at any time at the sole discretion of the rating organization.


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Our financial strength rating as of the date of this Quarterly Report on Form 10-Q are summarized in the following table.

Rating Agency

Fitch, Inc.

Moody's Investors Service, Inc.

Standard & Poor's

Company

("Fitch")(1)

("Moody's")(2)

("S&P")(3)

Voya Retirement Insurance and Annuity Company

Financial Strength Rating

A+

(1) Fitch's financial strength rating for insurance companies range from "AAA (exceptionally strong)" to "C (distressed). " Long-term credit ratings range from

"AAA (highest credit quality)," which denotes exceptionally strong capacity for timely payment of financial commitments, to "D (default)."

(2) Moody’s financial strength ratings for insurance companies range from "Aaa (exceptional)" to "C (lowest)." Numeric modifiers are used to refer to the ranking within the group- with 1 being the highest and 3 being the lowest. These modifiers are used to indicate relative strength within a category. Long-term credit ratings range from "Aaa (highest)" to "C (default)."

(3) S&P's financial strength ratings for insurance companies range from "AAA (extremely strong)" to "D (default)." Long-term credit ratings range from "AAA

(extremely strong)" to "D (default)."

Rating agencies use an "outlook" statement for both industry sectors and individual companies. For an industry sector, a stable outlook generally implies that over the next 12 to 18 months the rating agency expects ratings to remain unchanged among companies in the sector. For a particular company, an outlook generally indicates a medium or long-term trend in credit fundamentals, which if continued, may lead to a rating change. In June 2021, Moody’s revised its outlook for the U.S. life insurance sector from negative to stable. In December 2021, Fitch revised its outlook for the U.S. life insurance sector from negative to neutral.

Derivatives

Our use of derivatives is limited mainly to economic hedging to reduce our exposure to cash flow variability of assets and liabilities, interest rate risk, credit risk, exchange rate risk and market risk. It is our policy not to offset amounts recognized for derivative instruments and amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement.

We enter into interest rate, equity market, credit default and currency contracts, including swaps, futures, forwards, caps, floors and options, to reduce and manage various risks associated with changes in value, yield, price, cash flow, or exchange rates of assets or liabilities held or intended to be held, or to assume or reduce credit exposure associated with a referenced asset, index, or pool. We also utilize options and futures on equity indices to reduce and manage risks associated with our annuity products. Derivative contracts are reported as Derivatives assets or liabilities on the Condensed Consolidated Balance Sheets at fair value. Changes in the fair value of derivatives are recorded in Other net gains (losses) in the Condensed Consolidated Statements of Operations.

We also have investments in certain fixed maturities and have issued certain annuity products that contain embedded derivatives for which fair value is at least partially determined by levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity markets, or credit ratings/spreads. Embedded derivatives within fixed maturities are included with the host contract on the Condensed Consolidated Balance Sheets and changes in fair value of the embedded derivatives are recorded in Other net gains (losses) in the Condensed Consolidated Statements of Operations. Embedded derivatives within certain annuity products are included in Future policy benefits and contract owner account balances on the Condensed Consolidated Balance Sheets and changes in the fair value of the embedded derivatives are recorded in Other net gains (losses) in the Condensed Consolidated Statements of Operations.

In addition, we have entered into a reinsurance agreement, accounted for under the deposit method, that contains an embedded derivative, the fair value of which is based on the change in the fair value of the underlying assets held in trust. The embedded derivatives within the reinsurance agreements are reported in Other liabilities on the Condensed Consolidated Balance Sheets, and changes in the fair value of the embedded derivative are recorded in Interest credited and other benefit to contract owners/policyholders in the Condensed Consolidated Statements of Operations.

Off-Balance Sheet Arrangements

We have obligations for the return of non-cash collateral under an amendment to our securities lending program. Non-cash collateral received in connection with the securities lending program may not be sold or re-pledged by our lending agent, except


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in the event of default, and is not reflected on our Condensed Consolidated Balance Sheets. For information regarding obligations under this program, see the Investments Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.

For changes in commitments related to the acquisition of mortgage loans and the purchase of limited partnerships and private placement investments, see the Commitments and Contingencies Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

The Company carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended ("Exchange Act")) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the Company's current disclosure controls and procedures are effective in ensuring that material information relating to the Company required to be disclosed in the Company's periodic SEC filings is made known to them in a timely manner.

Changes in Internal Control Over Financial Reporting

There were no changes to the Company's internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the quarter ended June 30, 2022 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

See the Commitments and Contingencies Note in our Condensed Consolidated Financial Statements in Part I., Item 1. of this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors

For a discussion of the Company's potential risks or uncertainties, please see "Risk Factors" in Part I, Item 1A. in our Annual Report on Form 10-K for the year ended December 31, 2021 (the "Annual Report on Form 10-K") filed with the Securities and Exchange Commission. In addition, please see "Management’s Narrative Analysis of the Results of Operations and Financial Condition" Part I, Item 2. of this Quarterly Report on Form 10-Q.

Item 6. Exhibits

See Exhibit Index on the following page.


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Voya Retirement Insurance and Annuity Company ("VRIAC")


Exhibit Index
Exhibit Number						Description of Exhibit





































































31.1+						Certificate of Michael Katz pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2+						Certificate of Charles P. Nelson pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1+						Certificate of Michael Katz pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2+						Certificate of Charles P. Nelson pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH+						Inline XBRL Taxonomy Extension Schema
101.CAL+						Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF+						Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB+						Inline XBRL Taxonomy Extension Label Linkbase
101.PRE+						Inline XBRL Taxonomy Extension Presentation Linkbase
104						Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101).

+Filed herewith.


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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


August 11, 2022			Voya Retirement Insurance and Annuity Company
(Date)			(Registrant)

	By:	/s/	Michael Katz

			Michael Katz
			Chief Financial Officer
			(Duly Authorized Officer and Principal Financial Officer)


			71

Document

Exhibit 31.1

CERTIFICATION

I, Michael Katz, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Voya Retirement Insurance and Annuity Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.



Date:		August 11, 2022

By:	/s/	Michael Katz
		Michael Katz
		Chief Financial Officer
		(Duly Authorized Officer and Principal Financial Officer)

Document

Exhibit 31.2

CERTIFICATION

I, Charles P. Nelson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Voya Retirement Insurance and Annuity Company;

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date:		August 11, 2022

By:	/s/	Charles P. Nelson
		Charles P. Nelson
		Vice Chairman
		(Duly Authorized Officer and Principal Officer)

Document

Exhibit 32.1

CERTIFICATION

Pursuant to 18 U.S.C. §1350, the undersigned officer of Voya Retirement Insurance and Annuity Company (the "Company") hereby certifies that, to the officer's knowledge, the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 (the "Report") fully complies with the requirements of Section 13 or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


August 11, 2022	By:	/s/	Michael Katz
(Date)			Michael Katz Chief Financial Officer

Document

Exhibit 32.2

CERTIFICATION


August 11, 2022	By:	/s/	Charles P. Nelson
(Date)			Charles P. Nelson Vice Chairman

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