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].

Core Points - Voya Financial, Inc. has announced a 4.4% increase in its common stock dividend to $0.47 per share for the fourth quarter of 2025, up from $0.45 per share [1] - The common stock dividend is payable on December 29, 2025, to shareholders of record as of November 26, 2025 [1] - Additionally, Voya's board declared a quarterly dividend of $13.3750 per share on its Series B preferred stock, equivalent to $0.334375 per depositary share, payable on December 15, 2025 [2] Company Overview - Voya Financial, Inc. is a leading retirement, employee benefits, and investment management company serving approximately 15.7 million individual, workplace, and institutional clients [3] - The company is recognized as a "Great Place to Work" by the Great Place to Work® Institute, emphasizing a culture of customer centricity, integrity, accountability, agility, and inclusivity [3]

Core Insights - Voya Financial is positioned to continue its earnings-beat streak, having surpassed earnings estimates by an average of 25.03% in the last two quarters [1][5] Earnings Performance - For the last reported quarter, Voya achieved earnings of $2.4 per share, exceeding the Zacks Consensus Estimate of $2.09 per share by 14.83% [2] - In the previous quarter, Voya's earnings were $2.15 per share against an expected $1.59 per share, resulting in a surprise of 35.22% [2] Earnings Estimates and Predictions - Estimates for Voya have been trending higher due to its history of earnings surprises, with a positive Zacks Earnings ESP of +0.76%, indicating bullish sentiment among analysts [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high probability of another earnings beat, with historical data showing that nearly 70% of stocks with this combination exceed consensus estimates [6][8] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions which may provide more accurate predictions [7] - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9] Importance of Earnings ESP - Monitoring a company's Earnings ESP before quarterly releases is crucial for increasing the likelihood of successful investment decisions [10]

Core Insights - Voya Financial, Inc. (VOYA) shares are trading at a discount compared to the Zacks Life Insurance industry, with a forward price-to-earnings multiple of 1.12X, lower than the industry average of 1.92X, the Finance sector's 4.17X, and the Zacks S&P 500 Composite's 8.58X [1] - The company has a market capitalization of $7.10 billion and has been trading above its 200-day simple moving average, indicating a short-term bullish trend [2] - Voya Financial's shares have gained 7% year-to-date, outperforming the industry's growth of 0.5% [3] Growth Projections - The Zacks Consensus Estimate for Voya Financial's 2025 earnings per share indicates a year-over-year increase of 42.7%, with revenues expected to reach $1.29 billion, implying a 20.2% year-over-year improvement [4] - For 2026, the consensus estimates for earnings per share and revenues indicate increases of 16% and 8.3%, respectively, from the 2025 estimates [4] Capital Generation and Strategic Partnerships - Voya expects excess capital generation to rise by $100 million in 2025, driven by strategic partnerships and strong underlying business performance [7][14] - The partnership with Allianz Global Investors has added scale, diversification, and growth potential to Voya's Investment Management segment [7][12] Segment Performance - Voya's earnings have grown 12.2% over the past five years, outperforming the industry average of 7.8%, with a long-term earnings growth rate expected at 15.3% [8] - The Wealth Solutions segment is experiencing significant growth due to improved business results, higher surplus income, and lower administrative expenses [11] - The Investment Management segment is benefiting from higher investment capital returns and improved fee revenues [12] - The Health Solutions segment is expected to grow across all product lines with favorable retention [13] Analyst Sentiment - Three out of five analysts covering Voya have raised their estimates for 2025, and four analysts have raised estimates for 2026 in the past 30 days, leading to a 0.8% and 1.2% increase in the Zacks Consensus Estimates for 2025 and 2026, respectively [9] Financial Flexibility and Shareholder Value - Voya Financial's capital levels remain strong, with an expectation of improved excess capital generation and high free cash flow conversion [14] - The company increased its quarterly dividend by 12.5% starting in Q3 2024 and generated approximately $200 million of excess capital in the quarter [15] - Voya plans to resume share repurchases targeting $200 million in the second half of 2025 [15] Conclusion - Voya Financial is well-positioned for growth due to improved investment income, higher average equity markets, positive net flows, and strategic partnerships, making it an attractive option for potential investors [16][17]

Core Viewpoint - Investors in the Life Insurance sector should consider Voya Financial (VOYA) and The Baldwin Insurance Group (BWIN) for potential value opportunities [1] Group 1: Zacks Rank and Earnings Estimates - Voya Financial has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision activity, while The Baldwin Insurance Group has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank emphasizes earnings estimates and revisions, which are crucial for identifying value opportunities [2] Group 2: Valuation Metrics - Voya Financial has a forward P/E ratio of 8.24, significantly lower than BWIN's forward P/E of 17.25 [5] - Voya's PEG ratio is 0.54, compared to BWIN's PEG ratio of 0.92, indicating better value relative to expected earnings growth [5] - Voya has a P/B ratio of 1.1, while BWIN's P/B ratio is 3.25, further highlighting Voya's more attractive valuation metrics [6] Group 3: Overall Value Assessment - Based on the stronger estimate revision activity and more favorable valuation metrics, Voya Financial is considered the superior option for value investors compared to The Baldwin Insurance Group [7]

Core Insights - Voya Investment Management has appointed Scott Brady as the head of Intermediary Business Development to enhance its intermediary business and market position [1] - Morgan Stanley has reaffirmed an "Overweight" rating for Voya, with a current stock price of approximately $75.09, reflecting confidence in the company's growth potential [1] - Morgan Stanley has raised Voya's price target from $90 to $91, indicating optimism about the company's future performance [2] Financial Metrics - Voya's price-to-earnings (P/E) ratio is 13.37 and the price-to-sales ratio is 0.92, suggesting favorable market valuation of its earnings [2] - The enterprise value to sales ratio is 1.04 and the enterprise value to operating cash flow ratio is 5.94, demonstrating strong cash generation capabilities [2] - An earnings yield of 7.48% presents a compelling return on investment for value investors [3] Debt and Liquidity - Voya has a debt-to-equity ratio of 0.45, indicating a moderate level of debt and a balanced financial structure [3] - The current ratio of 27.17 highlights Voya's strong liquidity, ensuring its ability to meet short-term obligations [3]