Core Viewpoint - The comparison between Voya Financial (VOYA) and Sun Life (SLF) indicates that VOYA is currently more attractive to value investors due to its stronger earnings estimate revisions and more favorable valuation metrics [3][7]. Valuation Metrics - Voya Financial has a forward P/E ratio of 8.13, while Sun Life has a forward P/E of 12.27, suggesting that VOYA is undervalued compared to SLF [5]. - The PEG ratio for VOYA is 0.57, indicating a better valuation relative to its expected earnings growth compared to SLF's PEG ratio of 1.75 [5]. - Voya's P/B ratio stands at 1.04, compared to Sun Life's P/B of 2.4, further supporting the notion that VOYA is more attractively priced [6]. Analyst Outlook - Voya Financial holds a Zacks Rank of 2 (Buy), reflecting a more favorable analyst outlook due to its impressive earnings estimate revision activity, while Sun Life has a Zacks Rank of 3 (Hold) [3][7]. Value Grades - Voya Financial has a Value grade of B, whereas Sun Life has a Value grade of C, indicating that VOYA is perceived as a better value investment [6].

Core Viewpoint - Voya Financial, Inc. (VOYA) is experiencing a short-term bullish trend, trading above its 50-day simple moving average, despite a 20.8% decline from its 52-week high. The company shows strong growth projections and attractive valuations, making it a stock worth holding. Group 1: Price Movement and Valuation - As of May 22, 2025, VOYA's share price was $66.72, down from a 52-week high of $84.30 [1] - The company has a market capitalization of $6.42 billion and an average trading volume of 1.07 million shares over the last three months [4] - VOYA shares are trading at a price-to-book multiple of 1.04X, significantly lower than the industry average of 1.9X, the Finance sector's 4.23X, and the S&P 500 Composite's 7.87X [5] Group 2: Growth Projections - The Zacks Consensus Estimate for VOYA's 2025 earnings per share indicates a year-over-year increase of 33.8%, with revenues expected to reach $1.18 billion, reflecting a 9.6% improvement [7] - For 2026, earnings per share and revenues are projected to increase by 19.5% and 11.3%, respectively, compared to 2025 estimates [9] - VOYA's earnings have grown by 12.2% over the past five years, outperforming the industry average of 7.8% [9] Group 3: Analyst Sentiment - Five out of six analysts covering VOYA have raised their estimates for 2025, with the Zacks Consensus Estimate for 2025 and 2026 increasing by 4.8% and 2.9%, respectively, in the last 30 days [10] Group 4: Segment Performance - VOYA's earnings are driven by strong performances in Wealth Solutions, Investment Management, and Health Solutions, which are characterized by higher growth and returns [14] - The Wealth Solutions segment is experiencing growth due to improved investment income and lower administrative expenses [15] - The Investment Management segment is expected to benefit from higher investment capital returns and improved fee revenues [16] Group 5: Capital Generation and Deployment - VOYA anticipates generating approximately $750 million of excess capital in 2025, with an expected increase of $100 million driven by strategic actions [18] - In Q1 2025, VOYA generated around $200 million of excess capital, returning $43 million to shareholders through dividends and retiring $400 million of senior notes [19] Group 6: Conclusion - Voya Financial is well-positioned for growth due to improved investment income, strategic partnerships, and effective capital deployment [20] - The company's solid growth projections, optimistic analyst sentiment, and attractive valuations further support its investment potential [21]

Summary of Voya Financial (VOYA) Update / Briefing May 19, 2025 Company Overview - Voya Financial manages approximately $342 billion in assets, including nearly $1 billion in closed-end fund assets under management (AUM) [4][5] - The closed-end fund lineup consists of five funds, all categorized under Morningstar's derivative income category [4] Funds Discussed - **Voya Global Advantage and Premium Opportunity Fund (IGA)** - **Voya Global Equity Dividend and Premium Opportunity Fund (IGD)** - **Voya Infrastructure, Industrials and Materials Fund (IDE)** Core Points and Arguments - IGA and IGD were launched in February 2005 and have a primary objective of high current income, with IGA also seeking capital appreciation [6] - IDE, launched in 2010, aims for total return through current income, capital gains, and capital appreciation [7] - As of April 2025, IGA and IGD had discounts of -3.5% and -6.8%, respectively, while IDE had a discount of -6.7% [9] - The funds have transitioned to monthly distributions as of May 2024, with annualized distribution rates increased to approximately 10% to 11% of NAV [11][12] - Over the trailing twelve months, IGA and IGD increased by 14.7% and 15.4% on an NAV basis, and 23.8% and 22.4% on a market basis, respectively [12] Performance Insights - IDE's performance for the trailing twelve months was 10.1% on an NAV basis, with a year-to-date increase of 3.7% [14] - The equity sleeves of IGA and IGD outperformed the MSCI World Value Index by approximately 670 basis points on a gross-to-fee basis [17] - IDE's equity sleeve outperformed its custom benchmark by about 30 basis points on a gross-to-fee basis [20] Investment Strategies - The funds employ a systematic call option overlay strategy to capture volatility risk premia and enhance total returns [22] - IGA and IGD engage in foreign currency hedging to minimize the impact of currency fluctuations [22] - The investment process maintains sector and region neutrality, targeting a dividend yield 15% higher than the benchmark while maintaining a lower beta of 0.85 to 0.9 [16] Market Outlook - The U.S. economy remains resilient despite trade tensions and tariff uncertainties, supported by a robust labor market and manageable inflation [28] - Political changes and trade uncertainties are expected to keep volatility high across asset classes [29] - The expectation is for lower asset class returns due to various macroeconomic factors, including the transition from above-trend growth in the U.S. and China's deleveraging [30][31] Additional Important Points - The funds' management team underwent changes, with key portfolio managers being replaced, but the investment strategy remains unchanged [7][39] - The call writing strategy is designed to support total returns and enhance stability, with adjustments made during periods of market volatility [38] This summary encapsulates the key points from the Voya Financial update, highlighting the company's strategies, performance, and market outlook.

Financial Performance - Total revenues for Q1 2025 were $1,969 million, a decrease of 4% compared to $2,051 million in Q1 2024[23]. - Net income available to Voya Financial, Inc.'s common shareholders for Q1 2025 was $139 million, down 41% from $234 million in Q1 2024[23]. - Basic earnings per share for Q1 2025 were $1.45, compared to $2.29 in Q1 2024, reflecting a 36.8% decline[23]. - Comprehensive income attributable to Voya Financial, Inc. for Q1 2025 was $437 million, compared to $182 million in Q1 2024, indicating a significant increase[25]. - The company reported a net income of $251 million for the three months ended March 31, 2024, compared to a net income of $156 million for the same period in 2025, reflecting a decrease of 38.0%[30]. - The total comprehensive income for the three months ended March 31, 2024, was $212 million, while it was $437 million for the same period in 2025, indicating a decrease of 51.5%[30]. - Cash flows from operating activities showed a net outflow of $179 million in Q1 2025, contrasting with a net inflow of $231 million in Q1 2024[34]. - The company reported an income before income taxes of $173 million for Q1 2025, down from $288 million in Q1 2024, representing a decline of approximately 40%[144]. - The effective tax rate for the three months ended March 31, 2025, was 12.7%, compared to (0.3)% for the same period in 2024[164][165]. Assets and Liabilities - Total assets as of March 31, 2025, were $163,950 million, slightly up from $163,889 million as of December 31, 2024[19]. - Total liabilities decreased to $157,589 million as of March 31, 2025, from $157,882 million as of December 31, 2024[21]. - The total amount of selling expenses will be disclosed in annual reporting periods as per the new requirements from ASU 2024-03[46]. - The total cash and cash equivalents, including cash in CIEs, decreased by $504 million in Q1 2025, compared to an increase of $58 million in Q1 2024[34]. - The total liability for future policy benefits as of March 31, 2025, is $9.214 billion, a decrease from $9.332 billion as of December 31, 2024[124]. Investment and Income - The company reported net investment income of $560 million for Q1 2025, an increase from $529 million in Q1 2024[23]. - The gross investment income for the three months ended March 31, 2025, was $582 million, compared to $546 million for the same period in 2024, showing an increase of 6.6%[74]. - The company recognized $1 million in net gains from fixed maturities available-for-sale for the three months ended March 31, 2025, compared to a loss of $20 million in 2024[75]. - The provision for expected credit losses increased to $32 million for the three months ended March 31, 2025, up from $27 million in the previous period, reflecting an increase of 18.5%[72]. - The company had $16 million of commercial mortgage loans in non-accrual status as of March 31, 2025, down from $26 million at the end of 2024, indicating a decrease of 38.5%[73]. Acquisitions and Growth - The Company acquired the full-service retirement plan business of OneAmerica Financial for approximately $50 million in cash and contingent consideration of up to $160 million payable in 2026[36]. - The Company acquired fixed maturities worth approximately $1.4 billion in the first quarter of 2025 related to the OneAmerica Financial acquisition[47]. - The Company assumed contract owner account balances of $3.8 billion and $20.6 billion of separate account liabilities as part of the OneAmerica Financial acquisition[130]. - The Value of Business Acquired (VOBA) increased significantly to $752 million as of March 31, 2025, compared to $376 million as of December 31, 2024, indicating a growth of 100%[120]. Shareholder Information - Voya Financial paid dividends of $43 million on common stock in Q1 2025, slightly up from $41 million in Q1 2024[34]. - The company declared dividends of $0.45 per share for the three months ended March 31, 2025, an increase of 12.5% from $0.40 per share in 2024[153]. - As of March 31, 2025, the total number of outstanding common shares was 96.2 million, a decrease from 102.9 million as of January 1, 2024[153]. - The company had an aggregate amount of $761 million remaining under its share repurchase authorization as of March 31, 2025[155]. - The company repurchased 2,445,386 shares of common stock for a total payment of $172 million during the three months ended March 31, 2024[156]. Regulatory and Compliance - The Company is in the process of finalizing disclosures required by ASU 2023-09 for annual disclosures in the Annual Report for the year ending December 31, 2025[43]. - The Company adopted ASU 2024-01 on January 1, 2025, with no impact on its financial condition or results of operations[42]. - The Company engages in securities lending, requiring initial collateral at a rate of at least 102% of the market value of loaned securities[51]. - The Company’s financial statements are prepared in accordance with U.S. GAAP and are unaudited, reflecting necessary adjustments for fair presentation[40]. Market Performance - The total unrealized capital losses for available-for-sale fixed maturities as of March 31, 2025, were $2,524 million, compared to $2,846 million on December 31, 2024, reflecting a reduction of 11.3%[56]. - The average duration of the Company's fixed maturities portfolio, including securities pledged, is between 6 and 6.5 years as of March 31, 2025[56]. - The Company reported total fixed maturities, including pledged securities, of $29.225 billion as of March 31, 2025, with $26.361 billion classified under Level 2[90]. - The fair value of the Company's total assets was $130.740 billion as of March 31, 2025, with $95.887 billion classified under Level 1[90]. Risk Management - The Company manages its commercial mortgage loan portfolio by lending only up to 75% of the estimated fair value of the underlying real estate[61]. - Loan-to-value (LTV) and debt service coverage (DSC) ratios are utilized to assess the risk and quality of mortgage loans[62]. - The Company does not intend to sell investments with unrealized losses, indicating a long-term holding strategy[57]. - The allowance for credit losses increased to $29 million as of March 31, 2025, up from $24 million at the end of 2024, indicating a rise of 20.8%[72]. Other Financial Metrics - Adjusted operating earnings before income taxes for Q1 2025 were $232 million, compared to $224 million in Q1 2024, reflecting a growth of approximately 3.6%[144]. - Adjusted operating revenues for Q1 2025 were $1,888 million, up from $1,863 million in Q1 2024, indicating an increase of about 1.3%[144]. - The total accumulated other comprehensive income (loss) as of March 31, 2025, was $(2,181) million, an improvement from $(2,469) million in 2024[159]. - The Company had total debt of $2.1 billion as of March 31, 2025, with compliance to its debt covenants[169].

Core Insights - Voya Financial, Inc. (VOYA) reported first-quarter 2025 adjusted operating earnings of $2.15 per share, exceeding the Zacks Consensus Estimate by 35.2% and reflecting a year-over-year increase of 14.4% [1] Financial Performance - Total revenues for the quarter were nearly $2 billion, a decrease of 4% year over year [2] - Net investment income rose by 5.9% year over year to $560 million, while fee income increased by 11.1% to $570 million [2] - Premiums totaled $737 million, down 7.9% from the previous year [2] - Total benefits and expenses were $1.8 billion, up 1.8% year over year [2] Client Assets and Growth - As of March 31, 2025, total client assets reached $694 billion, marking a 21% increase year over year, driven by assets from OneAmerica and positive capital markets [3] Segment Performance - Wealth Solutions reported adjusted operating earnings of $207 million, an increase of 11.3% year over year, attributed to the acquisition from OneAmerica and positive capital markets [4] - Health Solutions experienced a pre-tax adjusted operating income of $46 million, down 22% year over year, impacted by lower underwriting gains and strategic investments [5] - Investment Management posted pre-tax adjusted operating earnings of $41 million, a decline of 2.4% year over year, despite net inflows of $7.7 billion, representing organic growth of 2.5% for the quarter [6] Financial Position - Voya Financial ended the quarter with cash and cash equivalents of $1.4 billion, a 49.3% increase year over year [8] - Total investments were $35 billion, down 4.3% year over year, while long-term debt was $2.1 billion, up 0.2% from the end of 2024 [8] - Book value per share (excluding AOCI) was $61.31, reflecting a 5.4% year-over-year increase [9] Capital Management - In 2024, Voya Financial returned $43 million of excess capital to shareholders and retired $400 million of Senior Notes [10] - As of March 31, 2025, the company had a remaining share repurchase authorization of $150 million and excess capital of about $150 million [10]

Financial Data and Key Metrics Changes - The company reported adjusted operating earnings per share of $2.00 in Q1 2025, reflecting a 13% increase year-over-year [12] - GAAP net income was below cash generation due to non-cash items emerging in the quarter [13] - Approximately $200 million of cash was generated in the quarter, exceeding the 90% target [13] Business Line Data and Key Metrics Changes - In Wealth Solutions, adjusted operating earnings were $207 million, an 11% year-over-year growth, driven by higher fee-based revenues and the acquisition of OneAmerica, which added $60 billion in assets [14] - Investment Management generated $41 million in adjusted operating earnings, with net inflows of $7.7 billion, representing 2.5% organic growth [16] - Health Solutions reported adjusted operating earnings of $46 million, with improved margins and a focus on stabilizing stop-loss experience [18] Market Data and Key Metrics Changes - The company achieved defined contributions organic net flows of approximately $30 billion in Wealth Solutions [7] - Full-service known sales increased by 7% year-over-year in Q1 2025 [8] - The investment management segment saw strong net cash flows across various strategies, including institutional and retail markets [8] Company Strategy and Development Direction - The company emphasizes a capital-light business model that generates diverse revenue streams and consistent free cash flow [6] - There is a commitment to innovative workplace solutions and top-notch asset management to create long-term value for stakeholders [6] - The company aims to achieve long-term organic growth targets of over 2% [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged mixed economic signals and elevated market volatility, leading to a cautious approach [9] - The results underscore the strength of the business model and the focus on commercial momentum, cash generation, and maintaining a healthy balance sheet [10] - Management remains optimistic about the company's ability to navigate the complex environment and drive value for shareholders [21] Other Important Information - The company ended the quarter with excess capital of approximately $150 million and a risk-based capital (RBC) ratio of 385% [20] - The company repaid approximately $400 million of debt in February, bringing the leverage ratio within target range [21] - The company is making modest investments in retail wealth management capabilities, which are already included in the expense forecast [52] Q&A Session Summary Question: Wealth earnings margin guidance - Management indicated that spread-based assets were higher than expected, but they anticipate moderation moving forward [28] Question: Voluntary business reserves - Reserves were increased due to potential higher utilization driven by economic uncertainty, with expectations for utilization to be clearer by year-end [32][33] Question: Stop-loss estimated loss ratio - The estimated loss ratio for the January 2025 cohort is 87%, based on improved pricing and risk selection practices [40] Question: Voluntary business top-line growth - The slower growth in voluntary business is attributed to large wins in the previous year that did not repeat, but the pipeline remains strong [50] Question: Investment management net inflows - The strong net inflows were broad-based across various channels and products, with no outsized mandates driving the results [78] Question: Leave management spending - The expected spend on leave management is $50 million, with a focus on enhancing customer experience through insourcing capabilities [92][93]

Financial Data and Key Metrics Changes - The company reported adjusted operating earnings per share of $2.00 in Q1 2025, reflecting a 13% increase year-over-year [11] - Generated approximately $200 million in cash during the quarter, exceeding the 90% target [12] - GAAP net income was below cash generation due to non-cash items [12] Business Line Data and Key Metrics Changes - In Wealth Solutions, adjusted operating earnings were $207 million, an 11% year-over-year growth, driven by higher fee-based revenues and the acquisition of OneAmerica, which added $60 billion in assets [13] - Investment Management generated $41 million in adjusted operating earnings, with net inflows of $7.7 billion, representing 2.5% organic growth [15] - Health Solutions reported adjusted operating earnings of $46 million, with improved margins and a focus on stabilizing stop-loss experience [17] Market Data and Key Metrics Changes - Wealth Solutions achieved defined contributions organic net flows of approximately $30 billion, with strong performance in healthcare and government markets [6] - Investment Management's net cash flows were broad-based across institutional and retail markets, with significant demand for fixed income and private assets [7][15] - The company noted a strong pipeline supporting long-term organic growth targets of over 2% [8] Company Strategy and Development Direction - The company emphasizes a capital-light business model that generates diverse revenue streams and consistent free cash flow [5] - Focus on innovative workplace solutions and top-notch asset management to create long-term value for stakeholders [5] - Plans to enhance retail wealth management capabilities through modest investments and hiring additional advisors [53][56] Management's Comments on Operating Environment and Future Outlook - Management acknowledged mixed economic signals and elevated market volatility, leading to a cautious approach [8] - The results underscore the strength of the business model, focusing on commercial momentum, cash generation, and maintaining a healthy balance sheet [9] - The company remains optimistic about its ability to navigate the complex environment and drive shareholder value [20] Other Important Information - The company ended the quarter with excess capital of approximately $150 million and a risk-based capital (RBC) ratio of 385% [18] - Approximately $400 million of debt was repaid in February, bringing the leverage ratio within target range [19] Q&A Session Summary Question: Insights on wealth earnings and margin guidance - Management noted that spread-based assets were higher than expected, but they anticipate moderation moving forward [26] Question: Details on voluntary reserves and loss ratio expectations - Reserves were increased due to economic uncertainty, with expectations for a high 40s loss ratio [32] Question: Clarification on stop-loss estimated loss ratio - The estimated loss ratio of 87% for the 2025 cohort is based on improved pricing and risk selection practices [41] Question: Update on voluntary business growth - The company experienced slower top-line growth due to large wins in the previous year not repeating, but the pipeline remains strong [50][52] Question: Free cash flow and earnings outlook - Management indicated that while they are not providing specific guidance, the previous estimate of $8 per share remains a reasonable starting point [59] Question: Impact of severance on expenses - Severance costs were part of ongoing expense management, with no significant future severance expected [105] Question: Investment management net inflows - Net inflows were broad-based across various channels and products, with no outsized mandates driving the results [80]

Core Insights - Voya Financial reported revenue of $294 million for Q1 2025, a 2.4% increase year-over-year, with EPS at $2.15 compared to $1.88 in the same quarter last year, exceeding Zacks Consensus Estimates for both revenue and EPS [1] - The company experienced a revenue surprise of +21.90% and an EPS surprise of +35.22% compared to analyst expectations [1] Financial Performance Metrics - Total Assets Under Management (AUM) and Assets Under Administration (AUA) in Wealth Solutions reached $694.18 billion, surpassing the average estimate of $667.24 billion [4] - Client Assets in Wealth Solutions - Full Service were $228.60 billion, below the average estimate of $252.60 billion [4] - Client Assets in Wealth Solutions - Recordkeeping were $401.12 billion, exceeding the average estimate of $351.32 billion [4] - Fee income revenue was $570 million, lower than the estimated $598.98 million but representing an 11.1% increase year-over-year [4] - Net investment income revenue was $560 million, exceeding the estimate of $493.49 million, marking a 5.9% year-over-year increase [4] - Premiums revenue was $737 million, below the estimated $807.52 million, reflecting a 7.9% decrease year-over-year [4] - Adjusted Operating Revenues for Investment Management - Total were $243 million, slightly below the estimate of $245.39 million, with a 3.9% year-over-year increase [4] - Adjusted Operating Revenues for Investment Management - Fee income was $236 million, close to the estimate of $237.09 million, with a 4% year-over-year increase [4] - Adjusted Operating Revenues for Investment Management - Net investment income and net gains (losses) were $6 million, exceeding the estimate of $5.53 million but showing a 33.3% year-over-year decline [4] - Adjusted Operating Revenues for Corporate - Net investment income and net gains (losses) were $6 million, surpassing the estimate of $5 million, with a 50% year-over-year increase [4] - Adjusted Operating Revenues for Corporate - Total were $6 million, exceeding the estimate of $5.38 million, also reflecting a 50% year-over-year increase [4] Stock Performance - Voya's shares returned +10.4% over the past month, compared to the S&P 500 composite's +11.5% change, with a Zacks Rank of 5 (Strong Sell), indicating potential underperformance in the near term [3]

Voya Financial (VOYA) came out with quarterly earnings of $2.15 per share, beating the Zacks Consensus Estimate of $1.59 per share. This compares to earnings of $1.88 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 35.22%. A quarter ago, it was expected that this retirement, investment and insurance company would post earnings of $0.71 per share when it actually produced earnings of $1.50, delivering a surprise of 111.27%.Over ...

Financial Highlights - The company highlights FY'24 financial results, including specific figures of $1.40, $138, $93, and $0.1 billion [12] - The company's balance sheet is strong, indicated by $150 million and percentages of 385% and 27.5% [22] - Voya Investment Management manages $345 billion in assets [36] - The General Account (GA) Alternatives portfolio totals $1.92 billion as of March 31, 2025 [61] - The General Account investment portfolio totals $39 billion [59] Business Segment Performance - Wealth Solutions' participant accounts have grown at a 6% CAGR (2020-2025), now exceeding 9 million [32] - Wealth Solutions' average historical adjusted operating earnings are 66% [34] - Over 95% of the investment portfolio is investment grade [56] Investment Metrics - Voya Investment Management reports investment metrics, with specific percentages for 1, 3, 5, and 10-year performance across Equity, Multi-Asset, Fixed Income, and Income & Growth categories [45] Capital Management - The company's Q1'25 TTM capital generation is in line with a 90%+ target [64]