Core Insights - Voya Financial, Inc. (VOYA) is currently experiencing a short-term bullish trend as its shares are trading above the 50-day simple moving average (SMA) [1] - The company is trading at a discount compared to the Zacks Life Insurance industry, with a price-to-book value of 1.17X, lower than the industry average of 1.93X [2] - Voya Financial has a market capitalization of $7.4 billion and a Value Score of B, indicating potential investment attractiveness [2] Price Performance - Year-to-date, Voya Financial shares have gained 12.1%, outperforming the industry growth of 1.2%, but underperforming the Finance sector and the Zacks S&P 500 Composite, which increased by 13.3% and 12.7%, respectively [4] Financial Projections - The Zacks Consensus Estimate for VOYA's 2025 earnings per share is $8.65, with revenues projected at $1.3 billion [9] - For 2026, earnings per share and revenues are expected to rise by 16.5% and 10%, respectively, from the 2025 estimates [9] - The expected long-term earnings growth rate for Voya Financial is 14.2% [9] Analyst Sentiment - Analyst sentiment is optimistic, with the Zacks Consensus Estimate for 2025 and 2026 earnings having increased by 0.9% each in the past 30 days [10] Growth Drivers - Voya Financial is focusing on growth through automation, cost savings, and an expanding distribution network, which are expected to enhance earnings potential [14] - The acquisition of OneAmerica Financial has strengthened Voya's Wealth Solutions retirement business, adding significant assets and expected revenues [17] - The long-term partnership with Allianz Global Investors has broadened Voya's global presence and diversified its Investment Management business [18] Financial Health - Voya Financial has made progress in improving its financial profile, reducing long-term debt by over 20% to $1.6 billion as of June 30, 2025, and improving its financial leverage ratio to 27.4% [19] Shareholder Value - The company has emphasized shareholder value creation, increasing its dividend seven times over the past five years, resulting in a five-year annualized growth rate of 34.7% [20] Conclusion - Voya Financial is building momentum through distribution growth, automation, and strategic acquisitions, although rising debt levels and returns lagging behind peers remain concerns [21]

Core Insights - Voya Financial (VOYA) is currently more attractive to value investors compared to The Baldwin Insurance Group (BWIN) based on various financial metrics and rankings [1][3][7] Valuation Metrics - Voya Financial has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to BWIN, which has a Zacks Rank of 4 (Sell) [3] - The forward P/E ratio for Voya is 8.76, significantly lower than BWIN's forward P/E of 19.41, suggesting that Voya is undervalued relative to BWIN [5] - Voya's PEG ratio is 0.62, while BWIN's PEG ratio is 1.04, indicating that Voya has a better expected earnings growth relative to its price [5] - Voya has a P/B ratio of 1.15, compared to BWIN's P/B of 3.66, further supporting the notion that Voya is more attractively valued [6] Value Grades - Voya Financial has earned a Value grade of B, while The Baldwin Insurance Group has a Value grade of D, reflecting the overall better valuation metrics for Voya [6]

Core Insights - Albert Anthony is a Croatian-American business author and media contributor with a focus on financial markets, launching a book titled "Financial Markets: The Next Generation" in 2025 [1] - He has a non-traditional financial background, having worked as an analyst in the IT sector for Fortune 500 companies, which has aided in establishing his own equities research firm, Albert Anthony & Company, in 2021 [1] - The firm operates 100% remotely, reflecting a modern approach to financial analysis and research [1] Company Overview - Albert Anthony & Company was founded in 2021 and specializes in equities research, leveraging a data-driven and process-oriented methodology [1] - The company does not engage in writing about non-publicly traded companies, small cap stocks, or startup CEOs, focusing instead on publicly available data [1] Media Presence - Albert Anthony has a significant media presence, contributing to platforms like Seeking Alpha and Investing.com, and plans to launch a YouTube show titled "Financial Markets with Albert Anthony" in 2025 [1] - He has over 1,000 followers on Seeking Alpha, indicating a growing audience for his market commentary [1] Educational Background - Albert Anthony has completed degrees and ongoing training from institutions such as Drew University and the Corporate Finance Institute, enhancing his expertise in financial analysis [1] Additional Activities - In addition to his financial commentary, Albert Anthony has participated in European casting agencies and has had extra roles in over five productions, showcasing a diverse skill set [1]

Core Insights - Voya Financial, Inc. (VOYA) shares are trading at a discount compared to the Zacks Life Insurance industry, with a price-to-book value of 1.11X, lower than the industry average of 1.63X, the Finance sector's 4.23X, and the Zacks S&P 500 Composite's 8.2X [1] - Voya has a market capitalization of $7 billion and an average trading volume of 0.8 million shares over the last three months [1] - Voya's shares have gained 11% over the past year, outperforming the industry growth of 8.7%, but underperforming the Finance sector and the S&P 500 Composite, which increased by 19% and 18.1%, respectively [3] Financial Performance - Voya has been trading above its 200-day simple moving average (SMA), indicating a short-term bullish trend [6] - The Zacks Consensus Estimate for Voya's 2025 earnings per share indicates a year-over-year increase of 37.3%, with revenues projected at $1.2 billion, reflecting a 14.9% year-over-year improvement [10] - The consensus estimates for 2025 and 2026 earnings have increased by 2.2% and 0.4%, respectively, in the last week, showing analysts' optimism [11] Market Position - The average price target for Voya, based on short-term targets from 12 analysts, is $81.4 per share, suggesting a potential upside of 14.7% from the last closing price [12] - Voya's long-term strategic partnership with Allianz Global Investors has enhanced its scale and diversification, significantly broadening its asset management capabilities [14] - Voya generates strong earnings from its diversified portfolio, which includes Wealth Solutions, Investment Management, and Health Solutions, characterized by high growth potential and strong returns [15] Challenges - Total expenses increased by 2.1% year-over-year to $1.8 billion in Q2, driven by higher policyholder benefits and operating costs [16] - While Voya benefits from strong performance across its core businesses, rising expenses and benefit costs present challenges that could temper financial performance [17]

Company Overview - Voya Financial (VOYA) is headquartered in New York and operates in the finance sector, specifically in retirement, investment, and insurance [3] - The stock has experienced a price change of 3.09% so far this year [3] Dividend Information - Voya Financial currently pays a dividend of $0.45 per share, resulting in a dividend yield of 2.54%, which is higher than the Insurance - Life Insurance industry's yield of 1.61% and the S&P 500's yield of 1.51% [3] - The annualized dividend of $1.80 represents a 5.9% increase from the previous year [4] - Over the last 5 years, Voya Financial has increased its dividend 4 times, achieving an average annual increase of 34.72% [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 - The Zacks Consensus Estimate for Voya's earnings in 2025 is projected to be $8.47 per share, reflecting a year-over-year growth rate of 37.28% [5] Investment Considerations - Voya Financial is considered a compelling investment opportunity due to its strong dividend profile and favorable growth prospects [6] - The stock is currently rated with a Zacks Rank of 3 (Hold), indicating a stable outlook [6]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Voya Financial reported total assets of **$172.4 billion** and Q2 2025 net income of **$162 million**, influenced by asset growth and the OneAmerica acquisition [1. Business, Basis of Presentation and Significant Accounting Policies](index=16&type=section&id=1.%20Business%2C%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) Voya Financial operates through three segments: Retirement, Investment Management, and Employee Benefits, with the OneAmerica Financial retirement plan business acquired on January 2, 2025, and segment names reverted on August 5, 2025, without affecting reported financials - On January 2, 2025, the Company acquired the full-service retirement plan business of OneAmerica Financial for approximately **$50 million** in cash and up to **$160 million** in contingent consideration payable in 2026[40](index=40&type=chunk) - Effective August 5, 2025, the Company reverted to its prior segment names—Retirement and Employee Benefits—replacing Wealth Solutions and Health Solutions, respectively. This change did not affect the reported financial amounts by segment[39](index=39&type=chunk) [2. Investments (excluding Consolidated Investment Entities)](index=18&type=section&id=2.%20Investments%20%28excluding%20Consolidated%20Investment%20Entities%29) Total investments increased to **$37.6 billion**, primarily in fixed maturities (**$29.1 billion**), with commercial mortgage loans growing to **$5.5 billion**, reflecting the OneAmerica acquisition and stable credit quality Fixed Maturities Portfolio Summary | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Amortized Cost | $31,158 | $30,050 | | Gross Unrealized Gains | $395 | $292 | | Gross Unrealized Losses | $(2,415) | $(2,846) | | Allowance for credit losses | $(52) | $(38) | | **Fair Value** | **$29,089** | **$27,454** | Commercial Mortgage Loans Summary | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Total Carrying Value | $5,531 | $4,699 | | Allowance for credit losses | $19 | $24 | | Loans > 90 days past due | $0 | $26 | Net Investment Income Breakdown | Source | Three Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2025 (in millions) | | :--- | :--- | :--- | | Fixed maturities | $462 | $927 | | Mortgage loans on real estate | $69 | $136 | | Limited partnerships and other | $55 | $87 | | **Total Net Investment Income** | **$584** | **$1,144** | [3. Derivative Financial Instruments](index=27&type=section&id=3.%20Derivative%20Financial%20Instruments) The company uses derivatives to hedge various market risks, with non-qualifying interest rate contracts totaling **$14.7 billion** notional, and fair values of derivative assets at **$199 million** and liabilities at **$309 million** Derivative Notional Amounts and Fair Values (June 30, 2025) | Derivative Type | Notional Amount (in millions) | Asset Fair Value (in millions) | Liability Fair Value (in millions) | | :--- | :--- | :--- | :--- | | **Non-qualifying for hedge accounting** | | | | | Interest rate contracts | $14,717 | $177 | $271 | | Foreign exchange contracts | $228 | $4 | $5 | | Equity contracts | $284 | $7 | $1 | | Credit contracts | $137 | $0 | $3 | - The majority of derivatives are used for product hedges against exposures from insurance liabilities and guarantees, as well as to hedge risks in the investment portfolio. A substantial portion of derivative positions did not qualify for hedge accounting[84](index=84&type=chunk) [4. Fair Value Measurements (excluding Consolidated Investment Entities)](index=34&type=section&id=4.%20Fair%20Value%20Measurements%20%28excluding%20Consolidated%20Investment%20Entities%29) As of June 30, 2025, the company held **$139.2 billion** in fair value assets, predominantly Level 1 (**$104.2 billion**) in separate accounts, with Level 2 at **$31.9 billion** and Level 3 at **$3.1 billion** Fair Value Hierarchy of Assets (June 30, 2025) | Asset Category | Level 1 (in millions) | Level 2 (in millions) | Level 3 (in millions) | Total (in millions) | | :--- | :--- | :--- | :--- | :--- | | Fixed maturities, including securities pledged | $442 | $26,034 | $2,613 | $29,089 | | Equity securities | $115 | $0 | $95 | $210 | | Derivatives | $10 | $251 | $0 | $261 | | Assets held in separate accounts | $101,330 | $5,601 | $347 | $107,278 | | **Total Assets** | **$104,199** | **$31,931** | **$3,080** | **$139,210** | - The fair value of Level 3 assets increased from **$2.1 billion** at year-end 2024 to **$2.6 billion** as of June 30, 2025, primarily due to purchases of U.S. and foreign corporate private securities[115](index=115&type=chunk)[117](index=117&type=chunk) [5. Deferred Policy Acquisition Costs and Value of Business Acquired](index=46&type=section&id=5.%20Deferred%20Policy%20Acquisition%20Costs%20and%20Value%20of%20Business%20Acquired) Total DAC and VOBA increased to **$2.47 billion**, primarily due to a **$390 million** VOBA addition from the OneAmerica acquisition DAC and VOBA Rollforward | (in millions) | Dec 31, 2024 | Additions (Acquisition) | Deferrals | Amortization | June 30, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | DAC | $1,772 | $0 | $52 | $(74) | $1,750 | | VOBA | $376 | $390 | $2 | $(30) | $738 | | **Total** | **$2,148** | **$390** | **$54** | **$(104)** | **$2,472** | - The acquisition of OneAmerica Financial's business is expected to increase VOBA amortization by **$21 million** to **$29 million** annually from 2025 through 2029[128](index=128&type=chunk) [6. Reserves for Future Policy Benefits and Contract Owner Account Balances](index=47&type=section&id=6.%20Reserves%20for%20Future%20Policy%20Benefits%20and%20Contract%20Owner%20Account%20Balances) Future policy benefits remained stable at **$9.2 billion**, while contract owner account balances increased to **$40.5 billion**, largely due to the OneAmerica acquisition and market performance Liability Balances | Liability | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Future policy benefits | $9,215 | $9,332 | | Contract owner account balances | $40,450 | $37,104 | - The increase in Contract owner account balances was primarily driven by a **$3.46 billion** addition from the OneAmerica business acquisition, along with deposits and interest credited[133](index=133&type=chunk) [7. Reinsurance](index=51&type=section&id=7.%20Reinsurance) The company uses reinsurance for risk management, notably assuming **$3.8 billion** in contract owner balances and **$20.6 billion** in separate account liabilities from the OneAmerica acquisition - In connection with the OneAmerica acquisition, Voya assumed contract owner account balances of **$3.8 billion** and separate account liabilities of **$20.6 billion** through an indemnity reinsurance agreement[138](index=138&type=chunk) Reinsurance Impact on Premiums (Six Months Ended June 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Direct premiums | $1,914 | $2,054 | | Reinsurance assumed | $11 | $11 | | Reinsurance ceded | $(470) | $(475) | | **Net premiums** | **$1,455** | **$1,590** | [8. Separate Accounts](index=53&type=section&id=8.%20Separate%20Accounts) Separate account liabilities grew to **$107.3 billion**, driven by **$6.8 billion** in investment performance and **$6.1 billion** in net deposits, with equity securities comprising **93%** of assets Separate Account Liabilities Rollforward (Six Months Ended June 30, 2025) | (in millions) | Amount | | :--- | :--- | | Balance at January 1 | $97,657 | | Premiums and deposits | $6,120 | | Surrenders, withdrawals and benefits | $(6,566) | | Investment performance | $6,802 | | **Balance at June 30** | **$102,808** (Retirement portion) | - As of June 30, 2025, equity securities (including mutual funds) represented **$99.7 billion**, or approximately **93%**, of the total assets supporting separate accounts[141](index=141&type=chunk) [9. Segments](index=54&type=section&id=9.%20Segments) Q2 2025 adjusted operating earnings before taxes increased to **$289 million**, driven by growth in Retirement (**$235 million**) and Employee Benefits (**$69 million**), while Investment Management remained stable Adjusted Operating Earnings Before Income Taxes by Segment (Three Months Ended June 30) | Segment | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Retirement | $235 | $214 | | Investment Management | $51 | $50 | | Employee Benefits | $69 | $60 | | Corporate | $(67) | $(53) | | **Total** | **$289** | **$271** | - The company renamed its Wealth Solutions and Health Solutions segments back to Retirement and Employee Benefits, respectively, on August 5, 2025, to better align with its services. This change did not impact reported segment financials[142](index=142&type=chunk) [10. Goodwill and Other Intangible Assets](index=60&type=section&id=10.%20Goodwill%20and%20Other%20Intangible%20Assets) Goodwill increased by **$56 million** to **$804 million** due to the OneAmerica acquisition, which also added **$21 million** to other intangible assets, totaling **$839 million** - Goodwill increased by **$56 million** during the first half of 2025, entirely attributable to the acquisition of OneAmerica Financial's full-service retirement plan business[157](index=157&type=chunk) - The OneAmerica acquisition also resulted in the recognition of **$21 million** in finite-life intangible assets, primarily customer relationship lists, which will be amortized over a weighted average useful life of **13** years[158](index=158&type=chunk) [11. Share-based Incentive Compensation Plans](index=61&type=section&id=11.%20Share-based%20Incentive%20Compensation%20Plans) Share-based compensation expense decreased to **$45 million**, with **6.2 million** shares available under the 2024 Omnibus Incentive Plan approved by shareholders Share-Based Compensation Expense | (in millions) | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | RSU awards | $13 | $32 | | PSU awards | $5 | $13 | | **Total** | **$18** | **$45** | [12. Shareholders' Equity](index=62&type=section&id=12.%20Shareholders%27%20Equity) As of June 30, 2025, **96.3 million** common shares were outstanding, with **$0.45** Q2 dividends declared and **$761 million** remaining in share repurchase authorization - As of June 30, 2025, the remaining amount under the company's share repurchase authorization was **$761 million**, which expires on December 31, 2025[165](index=165&type=chunk) Common Stock Repurchases | Period | Shares Repurchased | Payment (in millions) | | :--- | :--- | :--- | | Six Months Ended June 30, 2025 | 0 | $0 | | Six Months Ended June 30, 2024 | **4,854,544** | **$346** | [13. Earnings per Common Share](index=65&type=section&id=13.%20Earnings%20per%20Common%20Share) Q2 2025 basic EPS was **$1.69** and diluted EPS was **$1.66**, down from **$2.00** and **$1.96** respectively in Q2 2024, with six-month diluted EPS at **$3.09** Earnings Per Common Share | Period | Basic EPS | Diluted EPS | | :--- | :--- | :--- | | **Three Months Ended June 30, 2025** | $1.69 | $1.66 | | Three Months Ended June 30, 2024 | $2.00 | $1.96 | | **Six Months Ended June 30, 2025** | $3.14 | $3.09 | | Six Months Ended June 30, 2024 | $4.29 | $4.20 | [14. Accumulated Other Comprehensive Income (Loss)](index=65&type=section&id=14.%20Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29) AOCI improved to a loss of **$(2.07) billion**, primarily due to decreased unrealized losses on fixed maturities, with a positive **$395 million** change after tax for the six months Components of AOCI | (in millions) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Fixed maturities, net of impairment | $(2,018) | $(2,676) | | Derivatives | $3 | $66 | | Change in current discount rate | $(759) | $(818) | | Deferred income tax asset (liability) | $706 | $843 | | **Total AOCI** | **$(2,067)** | **$(2,583)** | [15. Revenue from Contracts with Customers](index=68&type=section&id=15.%20Revenue%20from%20Contracts%20with%20Customers) Total revenue from contracts with customers increased to **$1.08 billion**, driven by growth in Retirement segment advisory, recordkeeping, and administration fees Revenue from Contracts with Customers (Six Months Ended June 30) | Segment/Service | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Retirement - Advisory and recordkeeping | $353 | $300 | | Investment Management - Advisory, asset management | $475 | $484 | | Employee Benefits - Software subscriptions | $101 | $104 | | **Total financial services and software revenue** | **$1,080** | **$1,047** | [16. Income Taxes](index=68&type=section&id=16.%20Income%20Taxes) The effective tax rate for the six months ended June 30, 2025, was **13.6%**, a significant change from **7.1%** in 2024, primarily due to DRD and tax credits - The effective tax rate for the first six months of 2025 was **13.6%**, compared to **7.1%** for the same period in 2024. The 2024 rate was significantly lower due to the Security Life of Denver Company capital loss carryback[175](index=175&type=chunk)[176](index=176&type=chunk) - The company is participating in the IRS Compliance Assurance Process (CAP) for tax years 2023-2025 and does not expect to be subject to the Corporate Alternative Minimum Tax (CAMT) for 2025[179](index=179&type=chunk)[180](index=180&type=chunk) [17. Financing Agreements](index=69&type=section&id=17.%20Financing%20Agreements) Total long-term debt decreased to **$1.66 billion** due to a **$400 million** senior note repayment, offset by a new **10-year** **$600 million** P-Caps facility for future liquidity - The company repaid **$400 million** of **3.976%** Senior Notes at maturity on February 14, 2025, using proceeds from a September 2024 debt issuance[184](index=184&type=chunk) - On May 21, 2025, the company entered into a new **10-year** facility agreement providing the right to issue up to **$600 million** of its **6.012%** Senior Notes in exchange for Treasury securities held by a trust[190](index=190&type=chunk)[191](index=191&type=chunk) [18. Commitments and Contingencies](index=71&type=section&id=18.%20Commitments%20and%20Contingencies) Off-balance sheet commitments include **$177 million** in mortgage loans and **$2.3 billion** in limited partnerships, with estimated litigation losses up to **$25 million** beyond accruals - The company estimates the aggregate range of reasonably possible losses from litigation and other contingencies, in excess of amounts already accrued, to be up to approximately **$25 million** as of June 30, 2025[200](index=200&type=chunk) - A putative class action lawsuit, Ravarino, et al. v. Voya Financial, Inc., et al., alleges breaches of fiduciary duties in the administration of the Voya 401(k) Savings Plan. The company denies the allegations and intends to defend the case vigorously[201](index=201&type=chunk) [19. Consolidated and Nonconsolidated Investment Entities](index=73&type=section&id=19.%20Consolidated%20and%20Nonconsolidated%20Investment%20Entities) The company consolidates **6** CLOs and **11** LPs where it is the primary beneficiary, with maximum exposure to loss from unconsolidated entities at **$494 million** for CLOs and **$1.97 billion** for LPs - As of June 30, 2025, the company was the primary beneficiary of and consolidated **6** Collateralized Loan Obligation (CLO) entities and **11** Limited Partnerships (LPs)[207](index=207&type=chunk)[209](index=209&type=chunk) Maximum Exposure to Loss from Unconsolidated VIEs (June 30, 2025) | Entity Type | Ownership Interest / Max Exposure (in millions) | | :--- | :--- | | Collateralized Loan Obligations (CLOs) | $494 | | Limited Partnerships (LPs) | $1,970 | Condensed Consolidated Balance Sheet Summary | Balance Sheet Item | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Total Investments | $37,579 | $35,024 | | Assets held in separate accounts | $107,278 | $101,676 | | **Total Assets** | **$172,436** | **$163,889** | | Contract owner account balances | $40,450 | $37,104 | | Liabilities related to separate accounts | $107,278 | $101,676 | | **Total Liabilities** | **$165,883** | **$157,882** | | **Total Shareholders' Equity** | **$6,338** | **$5,788** | Condensed Consolidated Statement of Operations Summary | Income Statement Item | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $1,981 | $2,033 | $3,950 | $4,084 | | Total Benefits and Expenses | $1,793 | $1,757 | $3,589 | $3,521 | | Income Before Income Taxes | $188 | $276 | $361 | $563 | | Net Income | $161 | $235 | $312 | $523 | | Net Income Available to Common Shareholders | $162 | $201 | $301 | $435 | | Diluted EPS | $1.66 | $1.96 | $3.09 | $4.20 | Condensed Consolidated Statement of Cash Flows Summary | Cash Flow Item | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $563 | $547 | | Net cash provided by (used in) investing activities | $(279) | $990 | | Net cash provided by (used in) financing activities | $(477) | $(1,475) | | **Net increase (decrease) in cash and cash equivalents** | **$(193)** | **$62** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=79&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 performance, highlighting strategic focus, the OneAmerica acquisition's impact, adjusted operating earnings growth, and a strong capital position with improved financial leverage - On January 2, 2025, the Company acquired the full-service retirement plan business of OneAmerica Financial, adding scale and capabilities to its Retirement segment[258](index=258&type=chunk) Consolidated Results Summary (Three Months Ended June 30) | (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | $1,981 | $2,033 | | Income before income taxes | $188 | $276 | | Net income available to common shareholders | $162 | $201 | Adjusted Operating Earnings Before Income Taxes by Segment (Three Months Ended June 30) | Segment (in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Retirement | $235 | $214 | | Employee Benefits | $69 | $60 | | Investment Management | $65 | $64 | | Corporate | $(67) | $(54) | | **Total (incl. noncontrolling interest)** | **$302** | **$284** | - As of June 30, 2025, the company estimated its excess capital at approximately **$0.3 billion** and its combined RBC ratio at **401%**[315](index=315&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=104&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate, equity market, and credit risks, with hypothetical scenarios showing significant fair value declines from adverse market movements Interest Rate Risk Sensitivity (as of June 30, 2025) | Financial Instrument (in millions) | Fair Value | Hypothetical Change from +100 bps Shift | | :--- | :--- | :--- | | Fixed maturity securities | $29,089 | $(1,703) | | Mortgage loans on real estate | $5,379 | $(162) | | Investment contracts (deferred) | $37,494 | $(1,683) | Equity Market Risk Sensitivity (as of June 30, 2025) | Financial Instrument (in millions) | Fair Value | Hypothetical Change from -10% Shock | | :--- | :--- | :--- | | Equity securities | $210 | $(21) | | Limited partnerships/corporations | $1,970 | $(118) | | Equity derivatives | $6 | $(20) | [Item 4. Controls and Procedures](index=115&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[389](index=389&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[390](index=390&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=116&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal and regulatory matters, with estimated reasonably possible losses up to **$25 million** beyond current accruals - This section refers to the Commitments and Contingencies Note (Note 18) for details on legal proceedings[391](index=391&type=chunk) [Item 1A. Risk Factors](index=116&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - This section refers to the Risk Factors section in the company's Annual Report on Form 10-K for a discussion of potential risks and uncertainties[392](index=392&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=116&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares under its public program in Q2 2025 but acquired **119,446** shares for tax obligations, with **$761 million** remaining authorization Issuer Purchases of Equity Securities (Three Months Ended June 30, 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Shares Purchased as Part of Program | Remaining Authorization (in millions) | | :--- | :--- | :--- | :--- | :--- | | April 2025 | **24,587** | **$64.93** | 0 | $761 | | May 2025 | **12,448** | **$65.84** | 0 | $761 | | June 2025 | **82,411** | **$69.94** | 0 | $761 | | **Total** | **119,446** | **$68.48** | **0** | **N/A** | - The shares purchased were not part of the publicly announced repurchase plan but were acquired in connection with employee equity-based compensation to cover tax withholding obligations[393](index=393&type=chunk) [Item 5. Other Information](index=116&type=section&id=Item%205.%20Other%20Information) The EVP and CFO adopted a Rule 10b5-1 trading plan in Q2 2025 to sell **20,600** securities from expiring stock options - Michael R. Katz, EVP and Chief Financial Officer, adopted a Rule 10b5-1 trading plan on May 28, 2025, to sell **20,600** securities between August and December 2025[394](index=394&type=chunk)[395](index=395&type=chunk) [Item 6. Exhibits](index=116&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The report includes required certifications from the Chief Executive Officer and Chief Financial Officer under Sarbanes-Oxley Sections 302 and 906[398](index=398&type=chunk)

Core Insights - Voya Financial, Inc. (VOYA) reported second-quarter 2025 adjusted operating earnings of $2.4 per share, exceeding the Zacks Consensus Estimate by 14.8% and reflecting a year-over-year increase of 5.7% [1][9] - The results were driven by contributions from OneAmerica, favorable capital markets, and net inflows, although higher expenses in Employee Benefits due to strategic investments partially offset these gains [1] Financial Performance - Adjusted operating revenues reached $356 million, marking a 9.8% increase year over year and surpassing estimates by 19.4% [2][9] - Net investment income rose by 12.7% year over year to $584 million, while fee income increased by 11.7% to $577 million [2] - Premiums totaled $718 million, down 9.1% from the previous year, with total benefits and expenses amounting to $1.8 billion, up 2.1% year over year [2] Client Assets and Growth - As of June 30, 2025, total client assets were $757 billion, reflecting a significant 30% year-over-year increase, primarily due to assets from OneAmerica and positive capital market conditions [3][4][9] Segment Performance - The Retirement segment reported pre-tax adjusted operating earnings of $235 million, a 9.8% increase year over year, largely attributed to the OneAmerica acquisition [4] - Employee Benefits segment saw pre-tax adjusted operating earnings of $69 million, up 15% year over year, driven by positive claim developments, although offset by lower voluntary underwriting gains [5] - Investment Management posted pre-tax adjusted operating earnings of $51 million, a 2% increase year over year, with net inflows of $1.8 billion, indicating organic growth of 2.5% for the quarter [6] Financial Position - Voya Financial ended the quarter with cash and cash equivalents of $1.2 billion, a 10.6% increase year over year, and total investments of $37.5 billion, up 6.7% [8] - Long-term debt decreased to $1.6 billion, down 21.2% from the end of 2024, with an improved financial leverage ratio of 27.4% [10] - Book value per share (excluding AOCI) was $63.18, reflecting a 4% year-over-year increase [10] Capital Deployment - The company returned $44 million to shareholders through common stock dividends [11]

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]