Voya Financial brings Leave and Short-Term Disability Claims Administration in house to further enhance employee experience Mar 24, 2026 8:30 AM Eastern Daylight Time Voya Financial brings Leave and Short-Term Disability Claims Administration in house to further enhance employee experience Share New model emphasizes simplicity as employees navigate major life events MINNEAPOLIS--(BUSINESS WIRE)--Voya Financial, Inc. (NYSE: VOYA) today announced that the full administration of Leave, Paid Family and Medical ...

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Group 1 - Voya presents an attractive investment opportunity due to its complementary businesses that operate at scale and hold a leadership position in workplace businesses [1] - The collection of Voya's businesses generates high return on equity and high free cash flow, enabling continued investment in operations and meaningful capital returns to shareholders [1] Group 2 - Voya's business mix serves customers at every life stage, from new employees enrolling in retirement plans to those enjoying retirement savings [2] - The retirement business is central to Voya's operations in the workplace, complemented by asset management and employee benefit offerings that help secure customers' financial futures [2]

Core Insights - Voya Financial, Inc. (VOYA) shares are trading at a discount compared to the Zacks Life Insurance industry, with a forward price-to-book value of 0.94X, lower than the industry average of 1.81X, the Finance sector's 4.24X, and the Zacks S&P 500 composite's 8.31X, earning a Value Score of A [1][2] Company Overview - Voya Financial has a market capitalization of $6.43 billion and an average trading volume of 0.9 million shares over the last three months [2] - The company has a solid track record of beating earnings estimates in three of the past four quarters, with an average beat of 13.09% [2] Price Performance - Voya Financial shares have decreased by 3.4% over the past year, while the industry has grown by 5.9% [4] Growth Projections - The Zacks Consensus Estimate for Voya Financial's 2026 earnings per share indicates an 11.4% year-over-year increase, with revenues expected to reach $1.39 billion, reflecting a 3.6% improvement [5] - For 2027, earnings per share and revenues are projected to increase by 16.3% and 6.1%, respectively, compared to 2026 estimates [5] - Earnings have grown by 8.8% over the past five years, surpassing the industry average of 8.4%, with a long-term growth rate expected at 15.1% [6] Segment Performance - Voya's growth is driven by its Retirement and Investment Management segments, which are capital-light and higher-return units [12] - The Retirement segment is experiencing significant growth due to higher revenues from onboarded OneAmerica assets, favorable market impacts, and disciplined management of spend [13] - The Investment Management segment is expected to benefit from higher investment capital returns and strong commercial momentum [14] - The Employee Benefits segment is likely to see improvements due to lower premium-driven expenses and higher alternative investment income [16] Capital Management - Voya generated over $0.8 billion in excess capital in 2025, representing approximately 76% of after-tax adjusted operating earnings, with a combined RBC ratio of 413% as of December 31, 2025 [17] - The company plans to return between $100 million and $150 million to shareholders in quarterly dividends and share repurchases throughout 2026 [19] Analyst Sentiment - The average price target for Voya Financial is $85.40 per share, indicating a potential upside of 25.4% from the last closing price [10] - Voya Financial is well-positioned for growth due to improved investment income, higher average equity markets, and strategic partnerships [21] - The company is recommended as a hold based on its impressive dividend history, solid growth projections, and attractive valuations [22]

Voya Financial FY Conference Summary Company Overview - **Company**: Voya Financial (NYSE: VOYA) - **Industry**: Financial Services, focusing on retirement, investment management, and employee benefits Key Points and Arguments Business Model and Performance - Voya operates complementary businesses at scale, generating high Return on Equity (ROE) and Free Cash Flow (FCF) [2][5] - The company serves customers at every life stage, from new employees to retirees, with a strong focus on retirement solutions [3][4] - Voya is a top five provider in the retirement industry, having added nearly $100 billion in assets in 2025, with a 40% growth in participant accounts over the last two years [4][5] - The company reported a ROE of close to 19% and generated 90% FCF on after-tax earnings in 2025 [5][6] Capital Deployment and Shareholder Returns - In 2025, Voya generated $775 million of Excess Capital, allowing for consistent dividend increases and share repurchases [7][8] - The company plans to deploy nearly $400 million back to shareholders in the first half of 2026, including $300 million in share repurchases [8][9] - Voya maintains a strong balance sheet with leverage within the target range of 25%-30% [9][10] Growth Strategies - Voya aims to continue organic growth in retirement, targeting over $20 billion in flows, and is open to opportunistic acquisitions [25][27] - The company is focused on expanding its wealth management business, which generated $200 million in revenues in 2025, and plans to increase the number of advisors to better serve clients [30][31] Industry Dynamics - The retirement sector is poised for growth with an expected $84 trillion wealth transfer to millennials and Gen Z workers [19] - The complexity of employee benefits presents an opportunity for Voya to provide guidance and support to employers and employees [19][20] Competitive Advantages - Voya's scale allows for investment in technology and capabilities, maintaining industry-leading margins [21][22] - The company leverages its investment management business to manage its general account, providing synergistic value across its services [24][22] Technology and Innovation - Voya's retirement platform, built on the Omni technology, provides a competitive edge by allowing customization and updates to meet client needs [36][37] - The company is investing in AI to enhance operational efficiency and customer experience [39][41] Employee Benefits Segment - Voya has launched a lead management capability to simplify the administration of employee leaves, which is crucial for retaining its position in the Supplemental Health market [42] - The company is addressing the high cost of healthcare through its Medical Stop-Loss offerings, helping employers manage expenses [43] Underappreciated Aspects - Voya's consistent 90% cash flow generation and strong returns are often overlooked, as is its leadership position in key markets [49][50] - The company believes it should be valued higher based on its performance metrics and growth potential [49][52] Conclusion - Voya Financial presents a compelling investment opportunity with strong financial performance, strategic growth initiatives, and a focus on shareholder returns. The company is well-positioned to capitalize on industry trends and continue delivering value to its customers and shareholders [53][54]

Core Viewpoint - Voya Investment Management and Pomona Capital have launched an enhanced digital experience for the Pomona Investment Fund, utilizing private markets technology from Templum to provide investors with direct access while ensuring investment rigor and regulatory oversight [1] Group 1 - Voya Investment Management is the asset management division of Voya Financial, Inc. [1] - Pomona Capital is a global private equity firm affiliated with Voya [1] - The new digital experience aims to improve investor access to the Pomona Investment Fund [1]

Core Insights - Voya Financial Inc. is identified as one of the 13 Deep Value Stocks to buy currently [1] - RBC Capital analyst Mark Dwelle raised the target price for Voya Financial by 2.4% to $87, maintaining an Outperform rating due to strong Q4 2025 results [2] - Key highlights from Voya's earnings include a 54% year-over-year increase in adjusted operating earnings and a 39% year-over-year increase in adjusted operating EPS [2] Financial Performance - Voya's investment assets under management grew organically by 5% year-over-year in 2025, driven by scaling private asset strategies and strong performance in the insurance asset management channel [3] - Defined contribution (retirement) assets under management saw a significant increase of 32.6%, largely attributed to the acquisition of OneAmerica in January 2025 [3] - Voya's total assets under management now exceed $1 trillion, reflecting robust growth across its segments [3] Cash Generation and Growth Potential - The volume-driven earnings growth has allowed Voya to generate substantial excess cash, contributing to a healthy balance sheet for future growth [4] - The company operates in retirement, investment, and insurance services through its various segments, indicating a diversified business model [5]

Core Insights - F&G Annuities & Life has partnered with Voya Financial to distribute its annuity solutions through Voya's Wealth Management platform, enhancing access to retirement and income protection products for clients [1][1][1] Company Overview - F&G Annuities & Life, Inc. is a leading provider of insurance solutions, focusing on retail annuity and life customers, as well as institutional clients, headquartered in Des Moines, Iowa [1][1] - Voya Financial, Inc. is a prominent retirement, employee benefits, and investment management company, serving over 18 million customer relationships and recognized as a "Great Place to Work" [1][1] Product Offerings - The collaboration introduces F&G's fixed indexed annuities (FIAs), registered index-linked annuities (RILAs), and multi-year guaranteed annuities (MYGAs) to Voya's wealth solutions business [1][1] - Voya financial professionals will have access to F&G's annuity offerings, supported by educational resources and product expertise [1][1] Strategic Goals - The partnership aims to serve more Americans in their financial planning, aligning with both companies' missions of enhancing financial security and customer-centricity [1][1] - The collaboration is expected to leverage Voya's distribution capabilities and F&G's competitive product offerings to address diverse retirement planning needs [1][1]

Reinsurance and Capital Management - The company reported a reinsurance strategy that limits exposure to any individual claim to $5 million, with aggregate stop-loss reinsurance also capping exposure at $5 million [99]. - The company’s Total Adjusted Capital exceeded statutory minimum Risk-Based Capital (RBC) levels as of December 31, 2025, indicating no regulatory or corrective action is required [123]. - The NAIC's RBC requirements are used to identify potentially inadequately capitalized insurers, and the company’s subsidiaries currently exceed these requirements [123]. - The implementation of the NAIC's Principles-Based Bond Definition Project is effective January 1, 2025, but is not expected to materially impact the company's RBC [124]. - The company does not anticipate regulatory action as a result of its 2025 IRIS ratio results [126]. Workforce and Human Capital - As of December 31, 2025, the company employed approximately 11,000 employees, with 71% based in the U.S. and 29% in India [103]. - Approximately 86.5% of the U.S.-based workforce is fully remote, while 11.6% work in a hybrid model and 1.9% are office-essential workers [103]. - The company’s human capital strategy focuses on attracting and retaining a diverse workforce to meet evolving customer needs [102]. - The company offers market-competitive compensation and benefits to attract and retain talent, including direct compensation and company-sponsored benefits [104]. Regulatory Compliance and Oversight - The company’s insurance subsidiaries are subject to comprehensive regulation and must file financial statements with state insurance regulators [111]. - The company’s insurance subsidiaries are required to conduct annual analyses of the sufficiency of their statutory reserves, with opinions submitted by qualified actuaries [121]. - The company’s insurance subsidiaries are required to participate in state insurance guaranty associations to protect policyholders from losses due to insurer insolvency [127]. - The company’s investment and retirement products are regulated by multiple federal and state agencies, including the SEC and the DOL [131]. - The company’s broker-dealer subsidiaries must comply with the SEC's Net Capital Rule, which mandates maintaining a minimum level of net capital [139]. - The company is subject to the privacy regulations of the Gramm-Leach-Bliley Act, which imposes requirements for safeguarding personal information [147]. - The company’s futures business is regulated by the CFTC and is subject to the Commodity Exchange Act [141]. Data Privacy and Cybersecurity - Twenty-eight states have adopted versions of the NAIC's Insurance Data Security Model Law, governing cybersecurity and data protection practices for insurers [145]. - The company is subject to numerous state consumer privacy laws, including the California Consumer Privacy Act, which requires annual independent cybersecurity program audits starting July 1, 2026 [149]. - The General Data Protection Regulation (GDPR) applies to the company's subsidiaries operating in the EU, requiring compliance with data protection obligations [151]. - The NAIC Privacy Protections Working Group is revising Model 672 to modernize insurance privacy protections, focusing on existing regulations rather than creating new ones [152]. - The company may face additional privacy-related regulatory obligations from third-party vendors outside the U.S., increasing the risk of non-compliance [153]. Emerging Regulations and Environmental Compliance - Emerging federal and state regulations address the use of big data and artificial intelligence in insurance, with 24 states adopting the NAIC's Model Bulletin on AI systems [154]. - States like Colorado require financial institutions to implement effective programs to detect and prevent identity theft and regulate telemarketing practices [154]. - California's Climate Corporate Data Accountability Act mandates companies generating over $1.0 billion in revenue to disclose Scope 1 and Scope 2 GHG emissions starting in 2026 [164]. - The company is monitoring the implementation of new climate disclosure laws in California, which may not materially impact its operations [164]. - The NAIC established a Climate and Resiliency Task Force to address climate-related risks and enhance regulatory tools [161]. - The company conducts environmental assessments prior to closing new commercial mortgage loans to minimize unexpected environmental liabilities [159]. - The company is subject to anti-money laundering laws and economic sanctions, requiring compliance with various financial transparency regulations [156].

Core Viewpoint - The analysis indicates a cautious stance on Voya Financial (VOYA) due to premium valuation and weak earnings momentum limiting its upside potential [1] Group 1: Company Analysis - Voya Financial is facing challenges with its premium valuation, which is seen as a barrier to potential growth [1] - The earnings momentum of Voya Financial is relatively weak, contributing to the overall cautious outlook on the stock [1] Group 2: Analyst Background - The analyst has over 18 years of experience in the financial markets, specializing in the financial sector [1] - The analyst has worked in various institutions within the industry, primarily on the buy side and related to portfolio management [1]