Financial Data and Key Metrics Changes - The company generated adjusted operating earnings per share of $2.46 in the second quarter, a 13% increase over the prior year [13] - Net income was impacted by investment losses and severance expenses, with $18 million incurred in severance expenses during the quarter [14] - The company added approximately $200 million of excess capital in the quarter, totaling approximately $400 million year to date [14][22] Business Line Data and Key Metrics Changes - Retirement segment generated $235 million of adjusted operating earnings in the quarter, representing a 1019% increase over the prior year [15][16] - Investment Management achieved adjusted operating earnings of $51 million for the quarter, a 2% increase year over year [18] - Employee Benefits reported adjusted operating earnings of $69 million in the quarter, up 15% over the prior year [20] Market Data and Key Metrics Changes - The company surpassed $1 trillion in total assets across retirement and investment management businesses, with nearly 10 million participant accounts in retirement [9] - Total defined contribution net inflows reached approximately $12 billion in the second quarter, bringing year-to-date net flows to over $40 billion [9][17] - Investment Management generated approximately $2 billion in net flows in the second quarter, contributing to nearly $10 billion year-to-date [10][19] Company Strategy and Development Direction - The company is focused on driving strong organic growth in retirement and investment management, successfully integrating OneAmerica, and improving margins in employee benefits [25] - A partnership with Blue Owl Capital aims to expand access to private market investments, enhancing retirement offerings [11][46] - The company plans to resume share repurchases targeting $200 million in the second half of the year [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities ahead, emphasizing a disciplined approach to margin improvement over growth [13][34] - The company is focused on executing near-term priorities while generating consistent strong free cash flows [24] - Management acknowledged uncertainties in the healthcare industry but remains committed to prudent actions regarding reserves and pricing [31][59] Other Important Information - The company has returned over $40 million of capital to shareholders via common stock dividends [22] - The integration of OneAmerica is on track, with a target of $75 million in operating earnings for the year [11] - The company is enhancing its lead management capabilities in employee benefits to strengthen its competitive position [12] Q&A Session Summary Question: Insights on Stop Loss business and future expectations - Management indicated that stop loss remains a high priority, with a focus on prudent actions across reserves, pricing, and risk selection [30] - The targeted loss ratio for the January 2024 cohort was reduced from 93% to 91% based on claims experience [30] Question: Capital return expectations and OneAmerica impact - Management confirmed plans for $200 million in share repurchases in the second half of the year, while addressing the capital needs related to OneAmerica [36] Question: Blue Owl partnership and its implications - The partnership is expected to expand access to private investments and enhance product offerings for retirement plan participants [46][47] Question: Medical stop loss and risk selection - Management acknowledged the uncertainty in the healthcare landscape but remains focused on disciplined pricing and risk selection [59][61] Question: Voluntary benefits business and premium decline - Management noted that while voluntary premiums are declining, the overall strategy is to bundle solutions to drive member engagement and retention [71][72]

Financial Data and Key Metrics Changes - The company generated adjusted operating earnings per share of $2.46 in the second quarter, a 13% increase over the prior year [11] - Net income was impacted by investment losses and severance expenses, with $18 million incurred in severance expenses during the quarter [12] - The company added approximately $200 million of excess capital in the quarter, generating approximately $400 million year to date [12][21] Business Line Data and Key Metrics Changes - In the Retirement segment, adjusted operating earnings were $235 million for the quarter, representing a 1019% increase over the prior year [13][14] - Investment Management generated approximately $51 million in adjusted operating earnings for the quarter, a 2% increase year over year [15] - Employee Benefits adjusted operating earnings were $69 million in the quarter, up 15% over the prior year [18] Market Data and Key Metrics Changes - The Retirement and Investment Management businesses surpassed $1 trillion in total assets, with nearly 10 million participant accounts in retirement [6] - The company achieved approximately $12 billion in total defined contribution net flows in the second quarter, bringing year-to-date net flows to over $40 billion [14] - Investment Management generated approximately $2 billion in net flows in the second quarter, contributing to year-to-date net flows of nearly $10 billion [16] Company Strategy and Development Direction - The company is focused on driving strong organic growth in retirement and investment management, successfully integrating OneAmerica, and improving margins in employee benefits [23] - A partnership with Blue Owl Capital aims to expand private market access and enhance retirement offerings [8][42] - The company plans to resume share repurchases targeting $200 million in 2025, while also investing in wealth management and automation [21][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities ahead, despite challenges in the healthcare industry impacting the Stop Loss business [11][30] - The company is prioritizing margin improvement over growth in the Stop Loss segment, with a cautious approach to pricing and risk selection [30][60] - Management highlighted a healthy pipeline and strong retention rates in the retirement business, indicating a solid outlook for the remainder of the year [90] Other Important Information - The company returned over $40 million of capital to shareholders via common stock dividends [21] - The integration of OneAmerica is on track, with a target of $75 million in operating earnings for the year [9] - The company is embedding industry data and medical trends into pricing for employee benefits to enhance competitive positioning [19] Q&A Session Summary Question: Insights on Stop Loss business and future expectations - Management noted a reduction in the reserve levels for the January 2024 business based on claims experience, with a cautious approach for the January 2025 cohort due to early development [27][28] Question: Capital return and impact of OneAmerica - Management reaffirmed plans for $200 million in share repurchases in the second half of the year, while addressing the capital needs related to OneAmerica [33][34] Question: Blue Owl partnership and product development - The partnership is expected to expand access to private investments and enhance product offerings, particularly within target date funds [42][44] Question: Voluntary benefits business and loss ratio expectations - The loss ratio improved to 47% in the quarter, with expectations around 50% for the back half of the year [63] Question: Medical stop loss and pricing strategy - Management emphasized a disciplined approach to pricing and risk selection, with expectations of higher medical inflation in 2026 [56][60]

Financial Performance - Adjusted Operating Earnings Per Diluted Share increased from $2.18 in 2Q'24 to $2.46 in 2Q'25 [13] - After-tax Adjusted Operating Earnings increased from $223 million in 2Q'24 to $240 million in 2Q'25 [13] - Net Income Available to Common Shareholders decreased from $93 million in 2Q'24 to $162 million in 2Q'25 [13] - Excess Capital Generation increased from $0.1 billion in 2Q'24 to $0.2 billion in 2Q'25 [13] - The company is on track to exceed original free cash flow guidance of $700 million for FY'25 [27] Segment Performance - Retirement adjusted operating earnings increased by 10% from 2Q'24 ($214 million) to 2Q'25 ($235 million) [15] - Investment Management adjusted operating earnings increased by 2% from 2Q'24 ($50 million) to 2Q'25 ($51 million) [18] - Employee Benefits adjusted operating earnings increased by 15% from 2Q'24 ($60 million) to 2Q'25 ($69 million) [21] - Investment Management YTD'25 organic growth was 3.1% [18] - Investment Management 2Q'25 net flows were $1.8 billion, contributing to YTD'25 net flows of $9.5 billion [19] - Retirement total YTD'25 Defined Contribution net flows of $41 billion, includes $11.6 billion in 2Q'25 [16] Employee Benefits - Stop Loss - Stop Loss Jan-24 cohort loss ratio improved from 93% at 1Q'25 to 91% at 2Q'25 [22] - Stop Loss Jan-25 cohort loss ratio remained at 87% at 2Q'25 [22] - Employee Benefits achieved an average net effective rate increase of 21% for the Jan-25 Stop Loss cohort [60]

Core Insights - Voya Financial reported Q2 2025 non-GAAP EPS of $2.46, exceeding analyst expectations of $2.05, marking a 12.8% increase from Q2 2024 [1][5] - Non-GAAP net revenue for the twelve months ended June 30, 2025, was $4.16 billion, while GAAP net income available to common shareholders decreased by 19.4% to $162 million due to investment losses and severance costs [1][5] - The company faced challenges in the Employee Benefits segment, with adjusted operating margin dropping to 3.7% from 19.1% year-over-year, and net revenues declining by 13.8% [1][9] Business Overview - Voya Financial operates in three main segments: Retirement, Investment Management, and Employee Benefits, focusing on financial planning, investment, and protection solutions [3] - The company aims to expand assets under management and integrate acquisitions, such as the OneAmerica retirement business, while maintaining operational discipline [4] Quarterly Highlights - The Retirement segment showed strong performance with pre-tax adjusted operating earnings rising from $214 million in Q2 2024 to $235 million in Q2 2025, and total client assets reaching $757 billion, a 30% increase year-over-year [6] - Investment Management reported pre-tax adjusted operating earnings of $51 million, with net inflows of $1.8 billion, surpassing $1 trillion in total assets managed and administered [7][11] - Employee Benefits saw a 15% increase in pre-tax adjusted operating earnings to $69 million, but faced a 13.8% decline in net revenues and a significant drop in adjusted operating margin [8][9] Operational Achievements - Voya surpassed $1 trillion in total assets managed and administered across Retirement and Investment Management, driven by successful asset gathering and favorable market conditions [11] - The company is investing $50 million in developing leave management solutions to adapt to evolving customer needs [12] Shareholder Returns - Voya returned $44 million to shareholders through dividends in Q2 2025, maintaining a capital-light, high free cash flow approach [13] Future Outlook - Management is focused on integrating the OneAmerica business, improving margins in Employee Benefits, and driving organic growth, without providing explicit forward guidance for revenue or profit [14][15]

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Voya Financial (VOYA) came out with quarterly earnings of $2.4 per share, beating the Zacks Consensus Estimate of $2.09 per share. This compares to earnings of $2.27 per share a year ago. These figures are adjusted for n ...

Voya Financial (VOYA) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change ...

Core Insights - Voya Financial has partnered with Blue Owl to create innovative private market investment solutions for defined contribution retirement plans, enhancing investment options for participants [1][9] - The partnership will focus on designing collective investment trusts (CITs) that incorporate private market strategies from both firms, available through Voya's retirement platform [2][9] - This collaboration aims to deliver consistent income, manage downside risk, and expand access to alternative investments for retirement savers [3][4] Company Benefits - Voya is expected to open new revenue streams through private market investment products, potentially increasing its assets under management (AUM) by attracting new retirement plans and institutional clients [4][9] - The partnership allows Voya to broaden its distribution footprint and reach new client segments, particularly in retirement and insurance asset management [4][5] Future Collaboration - Voya and Blue Owl plan to extend their collaboration beyond retirement solutions into the insurance asset management space, leveraging each other's expertise in direct lending and fixed income strategies [5][9] Market Performance - Voya's shares have gained 6.6% year-to-date, outperforming the industry average [6]

Core Viewpoint - Voya Financial (VOYA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Voya's Earnings Outlook - For the fiscal year ending December 2025, Voya is expected to earn $8.35 per share, with a 0.4% increase in the Zacks Consensus Estimate over the past three months [8]. - The upgrade to Zacks Rank 2 reflects an improvement in Voya's underlying business, which is likely to drive the stock price higher [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10].

Company Overview - Voya Financial (VOYA) is based in New York and operates in the Finance sector, with a year-to-date share price change of -1.21% [3] - The company currently pays a dividend of $0.45 per share, resulting in a dividend yield of 2.71%, which is higher than the Insurance - Life Insurance industry's yield of 1.81% and the S&P 500's yield of 1.58% [3] Dividend Performance - Voya Financial's annualized dividend of $1.80 has increased by 5.9% from the previous year [4] - Over the past five years, the company has raised its dividend four times, achieving an average annual increase of 33.16% [4] - The current payout ratio is 22%, indicating that Voya paid out 22% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Voya Financial anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $8.36 per share, reflecting a year-over-year growth rate of 35.49% [5] Investment Appeal - Voya Financial is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [7]

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].