NEW YORK--(BUSINESS WIRE)--Voya Investment Management (Voya IM), the asset management business of Voya Financial, Inc. (NYSE: VOYA), today announced the launch of its first three actively managed exchange-traded funds (ETFs), with two this month and a third in December. These new products represent a strategic expansion into investment vehicles that are in high demand and continue Voya IM's pursuit to provide investors with an array of solutions to best achieve their investment outcomes. Voya I. ...

Core Insights - The individual has over two years of experience as a Data Scientist and Financial Analyst at a leading property management firm in Istanbul, focusing on budget development, target setting, and data-driven insights to enhance profitability [1]. Group 1: Professional Background - The individual is an ACC-qualified finance professional with a Master's in Audit & Accounting from Istanbul University and has completed certificates in Data Analytics from Coursera [1]. - Expertise includes financial modeling, market analysis, and investment research, with practical experience in stocks and cryptocurrency [1]. Group 2: Contributions and Insights - The individual aims to share insights through concise, conversational writing to assist readers in making informed financial and investment decisions [1].

Core Insights - The individual has a B.Tech degree in Mechanical Engineering and nearly twenty-five years of experience in the oil and gas sector, primarily in the Middle East [1] - The investment strategy is informed by traits of efficiency, carefulness, and discipline learned from the industry [1] - There is a sustained interest in U.S. equity markets, focusing on technology, energy, and healthcare sectors [1] - The investment approach has evolved from growth investing to a blend of value and growth, emphasizing the understanding of business economics and competitive advantages [1] - The individual believes in the importance of allowing time and compounding to enhance investment returns, particularly in high-quality businesses [1] - A moderately conservative orientation is adopted, with a focus on minimizing downside risk as retirement approaches [1] - Recent rebalancing towards income-generating assets such as dividend-paying equities and REITs has been noted [1] - Investing is viewed as a means to achieve peace of mind, not just high returns [1] - The individual joined Seeking Alpha to engage with a community of investors interested in real-world business fundamentals and intelligent investing [1] - There is a commitment to investing in ecologically sensitive businesses [1]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, helping investors identify stocks likely to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - The Momentum Score assesses stocks based on price trends and earnings outlook changes, helping investors capitalize on upward or downward price movements [5] VGM Score - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.93% since 1988 [7] - There are over 800 stocks rated 1 or 2, making it essential to use Style Scores to narrow down choices [8] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks but high Style Scores may still present risks due to declining earnings forecasts [10] Company Spotlight: Voya Financial - Voya Financial, Inc. operates in the retirement, investment, and employee benefits sector in the U.S. and has a Zacks Rank of 3 (Hold) with a VGM Score of B [11] - The company has a Value Style Score of A, supported by a forward P/E ratio of 7.89, making it attractive for value investors [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.27 to $9.01 per share, alongside an average earnings surprise of +42.9% [12]

Financial Performance - Total revenues for the three months ended September 30, 2025, increased to $2,128 million, up from $1,956 million in the same period of 2024, representing a growth of 8.8%[20] - Net income for the three months ended September 30, 2025, was $272 million, compared to $98 million for the same period in 2024, reflecting a significant increase of 177.6%[21] - Basic earnings per share for the three months ended September 30, 2025, were $1.82, compared to $1.00 for the same period in 2024, an increase of 82%[21] - For the nine months ended September 30, 2025, Voya Financial achieved a net income of $514 million, contributing to a total comprehensive income of $1,231 million[28] - The company reported net investment income of $583 million for the three months ended September 30, 2025, compared to $506 million in the same period of 2024, a growth of 15.2%[21] - The total comprehensive income for the three months ended September 30, 2025, was $561 million, compared to $869 million for the same period in 2024[23] - The company reported a net income of $584 million for the nine months ended September 30, 2025, compared to $621 million for the same period in 2024, indicating a decrease of 6%[169] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $177,448 million, an increase from $163,889 million as of December 31, 2024, indicating a growth of 8.2%[18] - The total liabilities as of September 30, 2025, were $170,365 million, an increase from $157,882 million as of December 31, 2024, reflecting a growth of 7.9%[19] - As of September 30, 2025, Voya Financial reported total shareholders' equity of $6,862 million, with retained earnings showing a deficit of $1,778 million[29] - The balance of noncontrolling interest as of September 30, 2025, was $221 million[29] - The company reported reinsurance recoverable balances of $10.845 billion, net of allowance for credit losses[139] Investment Activities - The company reported net cash used in investing activities of $997 million, compared to net cash provided of $504 million in the same period of 2024[37] - The company acquired OneAmerica Financial's full-service retirement plan business for approximately $50 million in cash, with contingent consideration of up to $160 million payable in 2026[40] - The total investment income for the nine months ended September 30, 2025, was $1,727 million, up from $1,553 million in the same period of 2024[78] - The company reported a gross investment income of $605 million for the three months ended September 30, 2025, compared to $528 million in the same period of 2024[78] Shareholder Activities - The company issued common stock worth $5 million during the nine-month period, while repurchasing shares totaling $100 million[28] - Dividends on common stock amounted to $130 million for the nine months ended September 30, 2025[28] - The company declared dividends of $0.45 per share for the three months ended September 30, 2025, and $1.35 per share for the nine months ended September 30, 2025, compared to $1.25 for the same period in 2024[164] - The company repurchased a total of 1,345,732 shares of common stock during the nine months ended September 30, 2025, with a payment of $100 million for the initial shares and additional shares delivered[167] Comprehensive Income - The company’s accumulated other comprehensive income improved to $(1,778) million as of September 30, 2025, from $(2,462) million as of December 31, 2024[19] - Total comprehensive income for the three months ended September 30, 2025, was $561 million, compared to $869 million for the same period in 2024[23] - The accumulated other comprehensive income (loss) as of September 30, 2025, was $(1,778) million, slightly improved from $(1,812) million in the previous year[171] Segment Performance - The Retirement segment provides tax-deferred, employer-sponsored retirement plans and administrative services, contributing significantly to the company's overall performance[146] - The company will continue to operate through three segments: Retirement, Investment Management, and Employee Benefits, with a focus on enhancing performance metrics[145] Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2025, was 11.4%, significantly lower than the statutory rate of 21% due to dividends received deduction and tax credits[176] - The Company expects no material impact from the One Big Beautiful Bill Act signed into law in July 2025[182] Fair Value Measurements - As of September 30, 2025, total assets measured at fair value amount to $144.621 billion, with $109.084 billion classified as Level 1 assets[95] - The fair value of U.S. corporate public securities is $7.769 billion, with $7.706 billion classified as Level 2[95] - The Company utilizes third-party commercial pricing services for fair value measurements, ensuring compliance with ASC Topic 820[99] Litigation and Claims - The Company continues to deny allegations in the Ravarino case, which involves claims of breach of fiduciary duties related to the Voya 401(k) Savings Plan[202] - The Company believes that the outcome of pending litigation and regulatory matters is unlikely to have a material adverse effect on its financial position[199]

Core Points - Voya Financial announced Connie Michael as the grand prize winner of the 2025 Unsung Heroes award [1] Group 1 - The award recognizes outstanding contributions by educators [1] - Connie Michael is a teacher at Crow Agency Public School in Montana [1]

Financial Data and Key Metrics Changes - The company reported adjusted operating EPS of $2.45, reflecting a nearly 30% year-over-year increase, driven by earnings growth across all business segments [11] - Generated over $200 million in excess capital during the quarter, with year-to-date capital generation reaching approximately $600 million, positioning the company to exceed its $700 million full-year target [17][18] - Return on equity improved to 18%, with approximately $150 million of capital returned in the third quarter through share repurchases and dividends [17] Business Line Data and Key Metrics Changes - In the retirement segment, adjusted operating earnings reached $261 million, a 24% increase year-over-year, supported by strong organic defined contribution net inflows of approximately $30 billion year-to-date [11][12] - Investment management generated $62 million in adjusted operating earnings, a 13% year-over-year increase, with nearly $4 billion in net flows for the quarter, bringing year-to-date net flows to over $13 billion [13][14] - Employee benefits reported $47 million in adjusted operating earnings, primarily driven by favorable group life claims and prudent management of expenses [15] Market Data and Key Metrics Changes - The wealth management business experienced 20% year-over-year sales growth, with total client assets reaching approximately $35 billion [9] - The company serves nearly 20 million workplace customers, indicating a strong market presence and growth potential in the retirement and employee benefits sectors [10] Company Strategy and Development Direction - The company is focused on profitable growth across its diverse business lines, with strategic investments in wealth management and a disciplined approach to capital deployment [5][18] - Plans to continue investing in technology and advisor recruitment to enhance the wealth management segment, aiming for accelerated growth [9][32] - The company is committed to returning excess capital to shareholders while pursuing strategic M&A opportunities, particularly in retirement roll-ups [18][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on full-year targets and advancing long-term strategy, citing strong execution and financial strength [20] - The company anticipates a return to target margins in the retirement segment as strategic investments in wealth management are made [12][15] - Management highlighted the importance of leveraging claims experience to inform underwriting and reserve levels for the stop-loss business [28] Other Important Information - The company resumed share repurchases during the quarter, with plans to repurchase an additional $100 million in the fourth quarter [17] - The launch of an integrated claims system for leave management is set for January 1, 2026, enhancing the employee benefits offering [15][61] Q&A Session Summary Question: Size of wealth management investment for 2026 - The company expects to use up to $75 million of excess capital on wealth management investments, primarily in technology and advisor recruitment [24][26] Question: Expectations for stop-loss margins in 2026 - Management indicated that reserve levels are firming up for the 2024 cohorts, with claims experience being leveraged for underwriting in 2026 [28] Question: Corporate expenses in Q3 and Q4 - Higher corporate expenses are attributed to strong performance-related compensation accruals, with expectations to return to a normal run rate next year [36] Question: Edward Jones partnership success - The partnership with Edward Jones is on track, with distribution agreements executed and technology connections being finalized for integration [80][82] Question: Blue Owl partnership plans - The Blue Owl partnership aims to access private investments and innovative solutions for retirement outcomes, with a rollout planned by the end of the year [84]

Financial Performance - Adjusted Operating Earnings Per Share increased to $2.45 in 3Q'25 from $1.90 in 3Q'24[14] - Adjusted Operating Earnings After-Tax increased to $239 million in 3Q'25 from $190 million in 3Q'24[14] - Net Income Available to Common Shareholders increased to $176 million in 3Q'25 from $93 million in 3Q'24[14] - Excess Capital Generation was $0.2 billion in 3Q'25 and the company is on track to exceed the original guidance of $0.7 billion for the year[14] - Retirement's 3Q'25 adjusted operating earnings increased by 20%+ year-over-year[16] - Investment Management's 3Q'25 adjusted operating earnings increased by 13% year-over-year[19] - Employee Benefits' 3Q'25 adjusted operating earnings increased by 104% year-over-year[23] Business Segments - Retirement has Defined Contribution net inflows of $30 billion YTD'25[17] - Investment Management had net inflows of $3.9 billion in 3Q'25, contributing to YTD'25 net inflows of over $13 billion[21] - Investment Management YTD'25 organic growth of 4.4%[21] - Employee Benefits is focused on Stop Loss margin improvement[22] Capital Management - YTD'25 Capital Allocation includes 36% for Strategic Investments, 36% for Share Repurchases & Dividends, and 28% for Excess Capital[32]

Core Insights - Voya Financial reported quarterly earnings of $2.45 per share, exceeding the Zacks Consensus Estimate of $2.22 per share, and showing an increase from $2.12 per share a year ago, resulting in an earnings surprise of +10.36% [1] - The company achieved revenues of $370 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 13.47%, compared to $289 million in the same quarter last year [2] - Voya has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] Company Performance - Voya's shares have increased by approximately 6.3% since the beginning of the year, while the S&P 500 has gained 16.5%, indicating underperformance relative to the broader market [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Earnings Estimates and Revisions - The current consensus EPS estimate for the upcoming quarter is $2.27, with expected revenues of $317.87 million, and for the current fiscal year, the estimate is $8.90 on $1.3 billion in revenues [7] - The trend of estimate revisions for Voya was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Insurance - Life Insurance industry, to which Voya belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Voya Financial reported Adjusted Operating Earnings Before Income Taxes for the quarter, which is a key measure for evaluating business performance [4]. - The company emphasized the importance of Adjusted Operating Revenues, which are calculated by adjusting Total Revenues for specific items [6]. - Adjusted Operating Return on Common Equity excluding AOCI is highlighted as a measure of returns for common shareholders, excluding variable components due to interest rate changes [11]. - The company noted that net revenue is derived from investment spread, fee-based margin, and net underwriting gain or loss, providing insights into revenue growth and margin expansion [11]. - Voya Financial's Adjusted Operating Margin is defined as Adjusted Operating Earnings Before Income Taxes divided by net revenue, indicating operational efficiency [11]. - The report includes a reconciliation of Adjusted Operating Earnings Before Income Taxes to the U.S. GAAP measure, Income (loss) before income taxes, for clarity [5]. - The company reported significant adjustments in operating benefits and expenses, reflecting changes in market risk benefits and other non-recurring items [8]. - Voya Financial's analysis of sources of earnings includes net investment income and fee-based margins, which are critical for understanding performance drivers [9]. - Future outlook includes continued focus on market expansion and potential strategic acquisitions to enhance growth [11]. Revenue and Income - Net income available to common shareholders for Q3 2025 was $176 million, up from $162 million in Q2 2025, and $139 million in Q1 2025 [12]. - Adjusted operating earnings before income taxes for Q3 2025 were $290 million, compared to $289 million in Q2 2025 and $232 million in Q1 2025 [14]. - Total revenues for Q3 2025 reached $2,128 million, an increase from $1,981 million in Q2 2025 and $1,969 million in Q1 2025 [13]. - Net investment income for Q3 2025 was $583 million, slightly down from $584 million in Q2 2025 but up from $560 million in Q1 2025 [13]. - Fee income for Q3 2025 increased to $616 million, compared to $577 million in Q2 2025 and $570 million in Q1 2025 [13]. - Premiums collected in Q3 2025 were $719 million, consistent with $718 million in Q2 2025 but down from $737 million in Q1 2025 [13]. - The effective tax rate for Q3 2025 was 17.8%, up from 16.9% in Q2 2025 [12]. - Total cash returned to common shareholders in Q3 2025 was $123 million, including $80 million in share repurchases and $43 million in dividends [12]. Assets and Liabilities - Total assets as of September 30, 2025, reached $177,448 million, up from $166,933 million as of September 30, 2024, indicating a growth of approximately 6% [17]. - Total liabilities as of September 30, 2025, were $170,365 million, an increase from $160,351 million as of September 30, 2024, representing a rise of about 6% [17]. - Total shareholders' equity as of September 30, 2025, was $6,862 million, up from $6,384 million as of September 30, 2024, reflecting an increase of about 7% [17]. - Total Financial Debt as of September 30, 2025, is $2,104 million, a decrease from $2,502 million as of December 31, 2024, representing a reduction of approximately 16% [19]. - The Debt-to-Capital ratio improved to 29.8% as of September 30, 2025, down from 38.5% as of December 31, 2024, indicating enhanced capital structure [19]. Client Assets and Management - Total Assets Under Management (AUM) and Assets Under Administration (AUA) reached $1,088,624 million as of September 30, 2025, with a significant contribution from Retirement AUM of $306,558 million [20]. - Client Assets reached $784,821 million as of September 30, 2025, an increase from $612,205 million as of December 31, 2024, representing a growth of approximately 28% [22]. - Total Client Assets (AUM) reached $366.3 billion as of September 30, 2025, up from $340.5 billion a year ago, representing a 7.6% increase [27]. - Institutional AUM increased to $173.4 billion, with net inflows of $3.56 billion in the third quarter of 2025, compared to net inflows of $1.77 billion in the same period last year [28]. - Retail AUM remained stable at $156.4 billion, with net flows of $317 million in Q3 2025, showing a slight increase from $2.06 billion in Q3 2024 [28]. Segment Performance - Adjusted operating earnings before income taxes for the Retirement segment reached $913 million for the twelve months ended September 30, 2025, up from $758 million a year ago, reflecting a 20.5% increase [39]. - The adjusted return on capital for the Retirement segment was 21.3% for the three months ended September 30, 2025, compared to 19.2% in the same quarter last year [39]. - The adjusted operating earnings for the Employee Benefits segment were $47 million for the three months ended September 30, 2025, significantly lower than $147 million in the same quarter last year [39]. - The adjusted return on capital for the Investment Management segment was 20.1% for the three months ended September 30, 2025, compared to 18.1% in the same quarter last year [39]. Investment Performance - Gross investment income for the three months ended September 30, 2025, was $527 million, with an annualized earned rate of 5.6% [41]. - Alternative investment income for the three months ended September 30, 2025, was $60 million, an increase from $26 million in the same period last year, representing a 130.8% year-over-year growth [43]. - The long-term expected return for alternative investments and investment capital is projected at 9% annually [43]. Adjusted Operating Metrics - The adjusted operating margin for the trailing twelve months (TTM) was 28.5%, up from 28.0% in the previous quarter [26]. - The adjusted operating return on common equity for the twelve months ended September 30, 2025, was 12.8%, up from 11.3% in the previous quarter [49]. - Total adjusted operating revenues for Q3 2025 reached $1,942 million, a 3% increase from $1,900 million in Q2 2025 [47]. - Total benefits and expenses for Q3 2025 were $1,821 million, compared to $1,793 million in Q2 2025, reflecting a 1.6% increase [47].