Transaction Overview - Voya IM's AUM increases to approximately $370 billion on a pro forma basis[8] - Voya will hold a 76% economic stake and Allianz Group will hold a 24% economic stake in the combined asset manager[14] - The transaction is expected to close in July 2022, at which time Voya will have full operational control[21] Financial Benefits - The transaction is immediately cash accretive, with an estimated 6% - 8% increase to adjusted operating earnings per share in 2023[5, 17, 25] - Investment Management adjusted operating margin is expected to increase from 26% to 30% - 32%[5, 19, 28] - Voya preserves its $0.9 billion excess capital position and maintains financial flexibility[30] Strategic Advantages - The transaction expands international distribution through a long-term strategic partnership with Allianz Global Investors (AllianzGI)[5] - Voya IM's non-US client base is expected to grow from 9% to 27%[35] - AllianzGI US is transferring $120 billion of diversified assets to Voya IM, resulting in a pro forma AUM of $373 billion[39]

```markdown [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides a comprehensive overview of the company's financial performance, condition, and related disclosures [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity, at specific reporting dates Condensed Consolidated Balance Sheet Highlights (Unaudited) | (In millions) | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$161,806** | **$171,262** | | Total Investments | $42,950 | $45,581 | | Assets held in separate accounts | $93,108 | $100,433 | | **Total Liabilities** | **$154,102** | **$161,441** | | Contract owner account balances | $42,838 | $42,806 | | Liabilities related to separate accounts | $93,108 | $100,433 | | **Total Shareholders' Equity** | **$7,704** | **$9,821** | - **Total assets** decreased from **$171.3 billion** at year-end 2021 to **$161.8 billion** as of March 31, 2022, primarily driven by a decrease in the fair value of fixed maturities and assets held in separate accounts[15](index=15&type=chunk) - **Total shareholders' equity** declined from **$9.8 billion** to **$7.7 billion** during the first quarter of 2022, largely due to a decrease in Accumulated Other Comprehensive Income (AOCI) from **$2.1 billion** to **$527 million**[18](index=18&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's revenues, expenses, and net income (loss) over specific periods Condensed Consolidated Statements of Operations (Unaudited) | (In millions, except per share data) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Total Revenues | $1,514 | $(1,957) | | Total Benefits and Expenses | $1,423 | $(2,995) | | Income (loss) from continuing operations | $84 | $1,086 | | Net Income (loss) | $84 | $1,100 | | Net income (loss) available to common shareholders | $27 | $1,086 | | Diluted EPS available to common shareholders | $0.24 | $8.29 | - **Net income available to common shareholders** was **$27 million** for Q1 2022, a significant decrease from **$1,086 million** in Q1 2021. The prior year period included large net gains and favorable impacts from the Individual Life Transaction[21](index=21&type=chunk) - **Total revenues** were **$1.5 billion** in Q1 2022 compared to a loss of **$(2.0) billion** in Q1 2021. The prior year's revenue was negatively impacted by a large reinsurance-related adjustment to premiums of **$(5.8) billion**, which was largely offset in policyholder benefits[21](index=21&type=chunk)[134](index=134&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section reports the company's comprehensive income (loss), including net income and other comprehensive income - **The company reported a comprehensive loss** of **$(1,489) million** in Q1 2022, compared to a comprehensive loss of **$(1,888) million** in Q1 2021[23](index=23&type=chunk) - The comprehensive loss in Q1 2022 was primarily driven by a **$(1,573) million** after-tax loss in Other Comprehensive Income (OCI), resulting from unrealized losses on securities[23](index=23&type=chunk) [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section outlines the changes in the company's shareholders' equity over specific periods - **Total Voya Financial, Inc. shareholders' equity** decreased from **$8,253 million** at the start of 2022 to **$6,198 million** at the end of Q1 2022[25](index=25&type=chunk) - Key activities impacting equity in Q1 2022 included a comprehensive loss of **$(1,532) million** attributable to Voya, common stock repurchases of **$500 million**, and common and preferred stock dividends totaling **$35 million**[25](index=25&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (Unaudited) | (In millions) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $419 | $(936) | | Net cash (used in) provided by investing activities | $(403) | $452 | | Net cash (used in) financing activities | $(407) | $(268) | | **Net decrease in cash and cash equivalents** | **$(391)** | **$(752)** | - **Cash used in financing activities** was **$407 million** in Q1 2022, primarily driven by **$500 million** in share repurchases and **$194 million** in long-term debt repayment[31](index=31&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements - **On January 4, 2021, the Company completed the sale** of substantially all of its individual life insurance and legacy non-Wealth Solutions annuity businesses to Resolution Life US (the "Individual Life Transaction")[33](index=33&type=chunk)[34](index=34&type=chunk) - **On June 9, 2021, the Company completed the sale** of the independent financial planning channel of Voya Financial Advisors ("VFA") to Cetera Financial Group, Inc[35](index=35&type=chunk) - **The Company expects the adoption of ASU 2018-12** (Long-Duration Contracts) on January 1, 2023, to have a modestly positive impact on Total Shareholders' Equity at transition, primarily driven by a positive impact to AOCI[42](index=42&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=62&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for Q1 2022 [Overview and Trends](index=62&type=section&id=Overview%20and%20Trends) This section provides an overview of the company's business segments and key trends impacting its operations - **The company operates through three segments**: Wealth Solutions, Investment Management, and Health Solutions. Corporate includes non-segment activities and run-off businesses[235](index=235&type=chunk) - **The January 2021 Individual Life Transaction resulted** in the classification of divested businesses as discontinued operations and created "Stranded Costs" in continuing operations, which the company is addressing through a cost reduction strategy[237](index=237&type=chunk)[248](index=248&type=chunk) - **Key trends affecting the business include** the lingering economic effects of COVID-19, which drive market volatility and impact fee-based income, and the interest rate environment, which influences investment income and product profitability[238](index=238&type=chunk)[242](index=242&type=chunk)[247](index=247&type=chunk) - **The company has a multi-faceted ESG strategy** focusing on environmental impact reduction, workplace diversity, and corporate governance, including a board with gender parity[251](index=251&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk) [Results of Operations - Consolidated](index=67&type=section&id=Results%20of%20Operations%20-%20Consolidated) This section analyzes the company's consolidated financial performance, including revenues and expenses Consolidated Results Summary (Q1 2022 vs Q1 2021) | ($ in millions) | Q1 2022 | Q1 2021 | Change | | :--- | :--- | :--- | :--- | | Total revenues | $1,514 | $(1,957) | $3,471 | | Total benefits and expenses | $1,423 | $(2,995) | $(4,418) | | Income from continuing operations | $84 | $1,086 | $(1,002) | | Net income available to common shareholders | $27 | $1,086 | $(1,059) | - **The significant year-over-year changes in revenues and expenses were primarily due to the accounting impacts** of the Individual Life Transaction in Q1 2021, which included large reinsurance-related adjustments and realized gains that did not recur in Q1 2022[263](index=263&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk) - **Net investment income** decreased by **$84 million** YoY, driven by lower alternative investment income and lower yields on new fixed-income investments[262](index=262&type=chunk) - **Net gains (losses)** swung from a **$1.7 billion** gain in Q1 2021 to a **$285 million** loss in Q1 2022, largely because the prior year included significant realized gains from asset transfers related to the Individual Life Transaction[263](index=263&type=chunk) [Results of Operations - Segments](index=71&type=section&id=Results%20of%20Operations%20-%20Segments) This section details the financial performance of the company's individual business segments Adjusted Operating Earnings Before Income Taxes by Segment | ($ in millions) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Wealth Solutions | $205 | $255 | | Investment Management | $39 | $52 | | Health Solutions | $22 | $37 | | Corporate | $(58) | $(71) | | **Total** | **$209** | **$273** | - **Wealth Solutions:** Adjusted operating earnings decreased by **$50 million** YoY, primarily due to lower alternative asset income and unfavorable DAC unlocking from equity market performance[275](index=275&type=chunk) - **Investment Management:** Adjusted operating earnings decreased by **$13 million** YoY, driven by lower investment capital returns and higher operating expenses, partially offset by higher fee revenue[278](index=278&type=chunk)[281](index=281&type=chunk) - **Health Solutions:** Adjusted operating earnings decreased by **$15 million** YoY, mainly due to higher benefits incurred from business growth and non-COVID Group Life claims[283](index=283&type=chunk) - **Corporate:** The operating loss improved by **$13 million** YoY, driven by lower stranded costs from cost-saving initiatives and lower incentive compensation[284](index=284&type=chunk)[287](index=287&type=chunk) [Liquidity and Capital Resources](index=77&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's financial flexibility, capital management, and funding sources - **As of March 31, 2022, the company estimated its excess capital** at approximately **$0.9 billion** and its estimated combined RBC ratio was **453%**, well above the **375%** target[240](index=240&type=chunk)[296](index=296&type=chunk) - **In Q1 2022, the company returned** **$466 million** to shareholders, consisting of **$445 million** in share repurchases and **$21 million** in common stock dividends[301](index=301&type=chunk) Financial Leverage Ratio | Ratio | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Financial Leverage Ratio | 31.9% | 27.6% | - **The Financial Leverage Ratio** increased by **430 basis points** to **31.9%** in Q1 2022, primarily due to a decrease in Adjusted Capitalization resulting from lower AOCI, share repurchases, and a decrease in noncontrolling interest[307](index=307&type=chunk) - **As of March 31, 2022, the company had** **$700 million** in total credit facilities, with **$537 million** of unused capacity[310](index=310&type=chunk) [Investments](index=85&type=section&id=Investments) This section provides details on the composition and performance of the company's investment portfolio Investment Portfolio Composition | ($ in millions) | March 31, 2022 | % of Total | December 31, 2021 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Fixed maturities, available-for-sale | $31,127 | 72.6% | $33,699 | 73.9% | | Mortgage loans on real estate | $5,524 | 12.9% | $5,612 | 12.3% | | Limited partnerships/corporations | $1,852 | 4.3% | $1,739 | 3.8% | | **Total investments** | **$42,950** | **100.0%** | **$45,581** | **100.0%** | - **Gross unrealized capital losses** on fixed maturities increased significantly from **$149 million** at year-end 2021 to **$891 million** as of March 31, 2022, driven by materially higher interest rates[344](index=344&type=chunk) - As of March 31, 2022, the company's exposure to sectors potentially affected by COVID-19 (e.g., Energy, Airlines, Retailers) was **$4.5 billion**, or **12.8%** of the fixed maturity portfolio[343](index=343&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=97&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to key market risks, including interest rate, equity market, and credit risk - **The company's main market risks** are interest rate risk, equity market price risk, and credit risk[380](index=380&type=chunk) Hypothetical Change in Fair Value from 100 bps Interest Rate Shift (As of March 31, 2022) | ($ in millions) | +100 bps Yield Curve Shift | -100 bps Yield Curve Shift | | :--- | :--- | :--- | | Financial assets with interest rate risk | $(2,563) | $2,863 | | Financial liabilities with interest rate risk | $(3,272) | $3,956 | | Derivatives & Other | $53 | $(128) | Hypothetical Change in Fair Value from 10% Equity Shock (As of March 31, 2022) | ($ in millions) | +10% Equity Shock | -10% Equity Shock | | :--- | :--- | :--- | | Financial assets with equity market risk | $136 | $(136) | | Derivatives | $14 | $(14) | - **Following the Individual Life Transaction, SLD became the company's largest reinsurer**, creating a significant credit risk concentration. This risk is mitigated by collateral held in a trust[387](index=387&type=chunk) [Item 4. Controls and Procedures](index=99&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated the company's disclosure controls and procedures, concluding they were effective with no material changes - **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 March 31, 2022, 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](index=99&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides a comprehensive overview of the company's financial performance, condition, and related disclosures [Item 1. Legal Proceedings](index=99&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various litigation and regulatory matters, with estimated possible losses up to $50 million - **As of March 31, 2022, the company estimates the aggregate range of reasonably possible losses** from litigation, in excess of any accrued amounts, to be up to approximately **$50 million**[171](index=171&type=chunk) - **Notable ongoing litigation includes** Henkel v. ReliaStar (breach of stop-loss policy), Ravarino v. Voya (breach of fiduciary duties for 401(k) plan), and Advance Trust v. ReliaStar (cost of insurance litigation)[173](index=173&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk) [Item 1A. Risk Factors](index=100&type=page&id=Item%201A.%20Risk%20Factors) This section refers to the comprehensive risk factors detailed in the company's Annual Report on Form 10-K - **The report directs readers** to the Risk Factors section in the 2021 Annual Report on Form 10-K and the MD&A section of this 10-Q for a comprehensive discussion of potential risks[392](index=392&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=100&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Voya repurchased 7.2 million shares of common stock in Q1 2022 and authorized an additional $500 million for repurchases Issuer Purchases of Equity Securities (Q1 2022) | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Value Remaining for Purchase (in millions) | | :--- | :--- | :--- | :--- | | Jan 2022 | 1,215,784 | $70.73 | $435 | | Feb 2022 | 1,311,036 | $69.52 | $357 | | Mar 2022 | 4,660,652 | $66.10 | $21 | | **Total** | **7,187,472** | **$67.51** | **N/A** | - **During the first quarter of 2022, Voya repurchased** **7.2 million shares** of its common stock at an average price of **$67.51 per share**[393](index=393&type=chunk) - **On March 17, 2022, the company entered into a share repurchase agreement** to buy back **$275 million** of its common stock, receiving an initial delivery of **3.3 million shares**[393](index=393&type=chunk) - **On April 28, 2022, the Board of Directors increased the share repurchase authorization** by an additional **$500 million**, with the program set to expire on June 30, 2023[393](index=393&type=chunk) [Item 6. Exhibits](index=100&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data - **The exhibits filed include** Rule 13a-14(a)/15d-14(a) and Section 1350 certifications from the CEO and CFO, along with XBRL data files[397](index=397&type=chunk) ```

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 —————————————————————— FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: _001-35897______________________________________ Voya Financial, Inc. (Exact name of registrant as specified in its charter) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 —————————————————————— FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35897______________________________________ Voya Financial, Inc. | (Former name, former address and former fisc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 —————————————————————— FORM 10-Q 230 Park Avenue New York New York 10169 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35897______________________________________ Voya Financial, Inc. ...

[PART I. FINANCIAL INFORMATION (UNAUDITED)](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION%20(UNAUDITED)) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Voya Financial, Inc's unaudited condensed consolidated financial statements and detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The company's total assets and shareholders' equity decreased significantly from December 2020 to March 2021 | Metric | March 31, 2021 (Millions) | December 31, 2020 (Millions) | | :-------------------------- | :-------------------------- | :--------------------------- | | Total Assets | $162,861 | $180,518 | | Total Liabilities | $153,862 | $169,340 | | Total Shareholders' Equity | $8,999 | $11,178 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a significant net income of $1.1 billion in Q1 2021, a major turnaround from a net loss in the prior-year period | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :------------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Total Revenues | $(1,957) | $1,685 | | Total Benefits and Expenses | $(2,995) | $1,641 | | Income (loss) from continuing operations before income taxes | $1,038 | $44 | | Income (loss) from discontinued operations, net of tax | $14 | $(130) | | Net Income (loss) | $1,100 | $(80) | | Net income (loss) available to Voya Financial, Inc.'s common shareholders | $1,086 | $(100) | | Basic EPS (Continuing Operations) | $8.74 | $0.23 | | Diluted EPS (Continuing Operations) | $8.19 | $0.22 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The company reported a comprehensive loss of $1,888 million for Q1 2021, driven by significant unrealized losses on securities | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net income (loss) | $1,100 | $(80) | | Other comprehensive income (loss), before tax | $(3,490) | $(1,885) | | Other comprehensive income (loss), after tax | $(2,988) | $(1,490) | | Comprehensive income (loss) | $(1,888) | $(1,570) | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Total shareholders' equity declined to $9.0 billion, primarily due to a comprehensive loss and share repurchases | Metric | January 1, 2021 (Millions) | March 31, 2021 (Millions) | | :---------------------------------------------------------------- | :------------------------- | :------------------------ | | Total Voya Financial, Inc. shareholders' equity | $10,110 | $7,931 | | Total shareholders' equity | $11,178 | $8,999 | | Net income (loss) | $1,100 | $1,100 | | Reversal of Other Comprehensive Income (Loss) due to Individual Life Transaction | $(913) | $(913) | | Other comprehensive income (loss), after tax | $(2,075) | $(2,075) | | Common stock acquired - Share repurchase | $(255) | $(255) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company experienced a net decrease in cash and cash equivalents of $534 million in Q1 2021 | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :------------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net cash used in operating activities | $(936) | $(76) | | Net cash provided by (used in) investing activities | $670 | $(811) | | Net cash (used in) provided by financing activities | $(268) | $727 | | Net decrease in cash and cash equivalents | $(534) | $(160) | | Cash and cash equivalents, end of period | $1,388 | $1,312 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures for the financial statements, covering accounting policies and segment reporting [1. Business, Basis of Presentation and Significant Accounting Policies](index=11&type=section&id=1.%20Business%2C%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) Voya Financial offers retirement, investment management, and health products, recently reorganizing its segments - Voya Financial, Inc. provides retirement services, investment management, mutual funds, group insurance, and supplemental health products in the U.S[34](index=34&type=chunk) - The company renamed its Retirement and Employee Benefits segments to **Wealth Solutions** and **Health Solutions**, respectively, and continues to operate through Wealth Solutions, Investment Management, and Health Solutions segments[35](index=35&type=chunk) - On January 4, 2021, the company completed the **Individual Life Transaction**, divesting substantially all of its life insurance and legacy non-Wealth Solutions annuity businesses to Resolution Life US[36](index=36&type=chunk)[37](index=37&type=chunk) - The company expects to transfer approximately 900 independent financial professionals and **$40 billion in assets** to Cetera Financial Group, Inc. in Q2 or Q3 2021, while retaining 600 field and phone-based professionals for its Wealth Solutions business[38](index=38&type=chunk) - Adoption of ASU 2019-12 (Simplifying the Accounting for Income Taxes) on January 1, 2021, had **no impact** on the company's financial condition, results of operations, or cash flows[44](index=44&type=chunk) - The company is evaluating ASU 2020-04 (Reference Rate Reform) and ASU 2018-12 (Targeted Improvements to the Accounting for Long-Duration Contracts), with ASU 2018-12 potentially having a **significant impact** on Shareholders' equity and future earnings patterns[45](index=45&type=chunk) [2. Discontinued Operations](index=13&type=section&id=2.%20Discontinued%20Operations) Voya completed the Individual Life Transaction, resulting in an estimated net loss on sale of $1,452 million - On January 4, 2021, Voya sold five legal subsidiaries (SLD, SLDI, RRII, MUL, VAE) and their Individual Life and fixed/variable annuities businesses to **Resolution Life US**[46](index=46&type=chunk)[47](index=47&type=chunk) - The purchase price included cash, an approximately **$225 million interest in RLGH**, and **$123 million in surplus notes**, with $100 million cash proceeds deferred for up to 42 months[49](index=49&type=chunk) - The company recorded an estimated loss on sale, net of tax, of **$1,466 million** as of December 31, 2020, to write down the carrying value of businesses held for sale to estimated fair value[52](index=52&type=chunk) - Income (loss) from discontinued operations, net of tax, for Q1 2021 includes an estimated reduction of **$14 million** to the loss on sale, resulting in an estimated loss of **$1,452 million** as of March 31, 2021[52](index=52&type=chunk) - The transaction resulted in a reversal of **$913 million** of Additional other comprehensive income, net of tax, and a loss recognition of **$523 million**[53](index=53&type=chunk) | Category | Amount (Millions) | | :-------------------------------------------------- | :---------------- | | Total assets held for sale (Dec 31, 2020) | $20,703 | | Total liabilities held for sale (Dec 31, 2020) | $18,615 | | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Total revenues | $0 | $322 | | Total benefits and expenses | $0 | $278 | | Income (loss) from discontinued operations before income taxes | $0 | $44 | | Adjustment to loss on sale, net of tax | $14 | $(165) | | Income (loss) from discontinued operations, net of tax | $14 | $(130) | - Concurrently with the sale, Voya's subsidiaries ceded **$11.4 billion** of policyholder liabilities under reinsurance agreements to SLD, resulting in **$10.4 billion** reinsurance recoverable and **$1.9 billion** pre-tax realized gains from asset transfers[58](index=58&type=chunk) - The company established **$1.3 billion** of pre-tax deferred intangibles and a **$1.7 billion** pre-tax deposit asset related to the divested businesses[59](index=59&type=chunk) [3. Investments (excluding Consolidated Investment Entities)](index=18&type=section&id=3.%20Investments%20(excluding%20Consolidated%20Investment%20Entities)) The company's total fixed maturities decreased to $37.0 billion, with an increase in gross unrealized capital losses | Category | March 31, 2021 (Millions) | December 31, 2020 (Millions) | | :--------------------------------------- | :-------------------------- | :--------------------------- | | Total fixed maturities, including securities pledged (Fair Value) | $36,994 | $47,029 | - Gross unrealized capital losses on fixed maturities **increased by $138 million**, from $139 million to $277 million, for the three months ended March 31, 2021, primarily due to non-credit related market factors[80](index=80&type=chunk) | Metric | January 1, 2021 (Millions) | March 31, 2021 (Millions) | | :---------------------------------------------------------------- | :------------------------- | :------------------------ | | Allowance for credit losses on available-for-sale fixed maturity securities | $26 | $18 | - The commercial mortgage loan portfolio allowance **decreased by $31 million** during Q1 2021, but distress in the hotel sector persists[98](index=98&type=chunk) - The company had one new commercial mortgage loan troubled debt restructuring in Q1 2021 with a pre and post modification carrying value of **$5 million**[84](index=84&type=chunk) | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :----------------------- | :--------------------------------------- | :--------------------------------------- | | Net investment income | $714 | $698 | | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net realized capital gains (losses) | $1,742 | $(233) | [4. Derivative Financial Instruments](index=31&type=section&id=4.%20Derivative%20Financial%20Instruments) The company uses various derivatives for hedging market risks, with total derivative assets of $220 million - The company primarily uses interest rate swaps, foreign exchange swaps, total return swaps, and futures to **reduce market risks** from changes in interest rates, foreign currency, and equity indices[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)[111](index=111&type=chunk) - A substantial portion of the company's derivative positions **do not qualify for hedge accounting** but provide an economic hedge aligned with risk management objectives[114](index=114&type=chunk) | Category | Asset Fair Value (Millions) | Liability Fair Value (Millions) | | :--------------------------------------- | :-------------------------- | :---------------------------- | | Derivatives: Qualifying for hedge accounting | $26 | $43 | | Derivatives: Non-qualifying for hedge accounting | $194 | $471 | | Total | $220 | $514 | - As of March 31, 2021, the company held **$3 million** and pledged **$32 million** of net cash collateral related to OTC and cleared derivative contracts, respectively[117](index=117&type=chunk) | Location of Gain or (Loss) | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Other net realized capital gains (losses) | $68 | $(187) | | Policyholder benefits | $52 | $65 | | Total | $114 | $(148) | [5. Fair Value Measurements (excluding Consolidated Investment Entities)](index=36&type=section&id=5.%20Fair%20Value%20Measurements%20(excluding%20Consolidated%20Investment%20Entities)) As of March 31, 2021, 68% of assets measured at fair value were classified as Level 1 | Level | Total Assets (Millions) | Percentage of Total | | :---- | :---------------------- | :------------------ | | Level 1 | $89,740 | 68% | | Level 2 | $40,500 | 30% | | Level 3 | $2,641 | 2% | | Total | $132,881 | 100% | | Level | Total Liabilities (Millions) | Percentage of Total | | :---- | :------------------------- | :------------------ | | Level 1 | $18 | 3% | | Level 2 | $367 | 71% | | Level 3 | $129 | 25% | | Total | $514 | 100% | - The company uses third-party commercial pricing services, brokers, and internal models, incorporating **market observable inputs for Level 2** and **unobservable inputs for Level 3** valuations[124](index=124&type=chunk)[125](index=125&type=chunk) - The fair value of guaranteed benefit derivatives includes an adjustment for **nonperformance risk**, reflecting the credit quality of the issuing insurance subsidiary[138](index=138&type=chunk)[139](index=139&type=chunk) - Transfers in and out of Level 3 for fixed maturities are due to **variations in valuation inputs** each quarter[146](index=146&type=chunk) [6. Deferred Policy Acquisition Costs and Value of Business Acquired](index=44&type=section&id=6.%20Deferred%20Policy%20Acquisition%20Costs%20and%20Value%20of%20Business%20Acquired) The total balance of DAC and VOBA increased to $1,592 million at March 31, 2021 | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :---------------------------------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Balance as of January 1 | $1,510 | $2,226 | | Deferrals of commissions and expenses | $25 | $26 | | Net amortization included in Condensed Consolidated Statements of Operations | $(539) | $(76) | | Change due to unrealized capital gains/(losses) on available-for-sale securities | $596 | $424 | | Balance as of March 31 | $1,592 | $2,603 | - Net amortization of DAC/VOBA **increased significantly** in Q1 2021 due to amortization and loss recognition from realized gains on asset transfers for reinsurance agreements[150](index=150&type=chunk) - During 2021, the company recognized loss recognition of **$301 million for DAC** and **$1 million for VOBA**[150](index=150&type=chunk) [7. Share-based Incentive Compensation Plans](index=44&type=section&id=7.%20Share-based%20Incentive%20Compensation%20Plans) The company incurred $37 million in total share-based compensation expense for Q1 2021 | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :----------------------------- | :--------------------------------------- | :--------------------------------------- | | Restricted Stock Unit (RSU) awards | $18 | $18 | | Performance Stock Unit (PSU) awards | $19 | $18 | | Stock options | $0 | $2 | | Total share-based compensation expense | $37 | $38 | | Award Type | Number of Awards (Millions) | Weighted Average Grant Date Fair Value | | :----------------- | :-------------------------- | :------------------------------------- | | RSU Awards | 1.3 | $57.10 | | PSU Awards | 2.1 | $54.07 | - As of March 31, 2021, **2.4 million stock options** were outstanding with a weighted average exercise price of $42.71[156](index=156&type=chunk) [8. Shareholders' Equity](index=45&type=section&id=8.%20Shareholders'%20Equity) The Board authorized an additional $1 billion for share repurchases, expiring March 31, 2022 | Metric | March 31, 2021 (Millions) | December 31, 2020 (Millions) | | :----------------------- | :-------------------------- | :--------------------------- | | Outstanding Common Shares | 121.2 | 124.2 | | Year | Dividends Declared Per Share | | :--- | :--------------------------- | | 2021 | $0.165 | | 2020 | $0.15 | - On January 28, 2021, the Board authorized an additional **$1 billion for common stock repurchases**, expiring March 31, 2022[159](index=159&type=chunk)[310](index=310&type=chunk) - The company repurchased **$235 million of common shares** in Q1 2021, compared to $406 million in Q1 2020[313](index=313&type=chunk) - As of March 31, 2021, **26.05 million warrants** to purchase common stock were outstanding, with an adjusted exercise price of $47.84 per share[161](index=161&type=chunk) - As of March 31, 2021, **625,000 preferred shares** were issued and outstanding across Series A and Series B[162](index=162&type=chunk) [9. Earnings per Common Share](index=47&type=section&id=9.%20Earnings%20per%20Common%20Share) Net income available to common shareholders was $1,086 million for Q1 2021, a significant improvement from a loss in Q1 2020 | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :--------------------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Income (loss) from continuing operations | $1,086 | $50 | | Income (loss) from discontinued operations, net of tax | $14 | $(130) | | Net income (loss) available to common shareholders | $1,086 | $(100) | | Metric | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | | :------------------------------------------------------------------- | :---------------------------- | :---------------------------- | | Basic EPS (Continuing Operations) | $8.74 | $0.23 | | Basic EPS (Total) | $8.85 | $(0.76) | | Diluted EPS (Continuing Operations) | $8.19 | $0.22 | | Diluted EPS (Total) | $8.29 | $(0.73) | | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :------- | :--------------------------------------- | :--------------------------------------- | | Basic | 122.7 | 130.9 | | Diluted | 130.9 | 137.4 | [10. Accumulated Other Comprehensive Income (Loss)](index=48&type=section&id=10.%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) AOCI decreased to $1,910 million at March 31, 2021, with a change in AOCI for Q1 2021 of $(2,988) million | Metric | March 31, 2021 (Millions) | March 31, 2020 (Millions) | | :---------------------------------------------------------------- | :-------------------------- | :-------------------------- | | Fixed maturities, net of impairment | $2,928 | $2,819 | | Derivatives | $62 | $235 | | DAC/VOBA adjustment on available-for-sale securities | $(728) | $(906) | | Net unrealized capital gains (losses) | $1,906 | $1,835 | | AOCI | $1,910 | $1,841 | | Category | Before-Tax Amount (Millions) | Income Tax (Millions) | After-Tax Amount (Millions) | | :---------------------------------------------------------------- | :--------------------------- | :-------------------- | :-------------------------- | | Change in unrealized gains (losses) on available-for-sale securities | $(3,475) | $499 | $(2,976) | | Change in unrealized gains (losses) on derivatives | $(15) | $3 | $(12) | | Change in Accumulated other comprehensive income (loss) | $(3,490) | $502 | $(2,988) | [11. Income Taxes](index=50&type=section&id=11.%20Income%20Taxes) The company's effective tax rate for Q1 2021 was (4.6)%, differing from the statutory rate of 21% - The effective tax rate for Q1 2021 was **(4.6)%**, compared to (13.6)% for Q1 2020, primarily due to the release of a stranded tax benefit in OCI from the Individual Life Transaction and the DRD[170](index=170&type=chunk)[171](index=171&type=chunk) - The company participated in the **IRS Compliance Assurance Process (CAP)** for tax years 2019-2021[172](index=172&type=chunk) [12. Financing Agreements](index=50&type=section&id=12.%20Financing%20Agreements) Total long-term debt decreased to $2,969 million as of March 31, 2021 | Metric | March 31, 2021 (Millions) | December 31, 2020 (Millions) | | :----------------------- | :-------------------------- | :--------------------------- | | Total Long-term Debt | $2,969 | $3,044 | - During Q1 2021, the company repurchased **$23 million of 3.125% Senior Notes** and **$53 million of 3.65% Senior Notes**, resulting in a $10 million loss on debt extinguishment[177](index=177&type=chunk) - The company maintains a **$500 million senior unsecured credit facility**, expiring November 1, 2024, with no outstanding borrowings as of March 31, 2021[178](index=178&type=chunk) - The company was **in compliance with its debt covenants** as of March 31, 2021[175](index=175&type=chunk) [13. Commitments and Contingencies](index=51&type=section&id=13.%20Commitments%20and%20Contingencies) The company had off-balance sheet commitments of $879 million for limited partnerships and private placement investments - Off-balance sheet commitments as of March 31, 2021, included **$63 million for mortgage loans** and **$879 million for limited partnerships and private placement investments**[180](index=180&type=chunk) | Metric | March 31, 2021 (Millions) | December 31, 2020 (Millions) | | :----------------------- | :-------------------------- | :--------------------------- | | Total restricted assets | $2,646 | $1,951 | - The company estimates the aggregate range of reasonably possible losses from litigation and regulatory matters, in excess of accrued amounts, to be up to approximately **$25 million** as of March 31, 2021[189](index=189&type=chunk) - Approximately **$89 million** of previously accrued carried interest is subject to full or partial reversal in future periods if cumulative fund performance hurdles are not maintained[195](index=195&type=chunk) [14. Consolidated and Nonconsolidated Investment Entities](index=54&type=section&id=14.%20Consolidated%20and%20Nonconsolidated%20Investment%20Entities) The company consolidates certain investment entities where it is the primary beneficiary or has controlling voting rights - The company consolidates **5 CLOs and 12 limited partnerships** as of March 31, 2021, where it is the primary beneficiary or has controlling financial interest[199](index=199&type=chunk)[201](index=201&type=chunk) - Direct equity and debt investments in consolidated investment entities amounted to approximately **$247 million** as of March 31, 2021[197](index=197&type=chunk) - The company held **$403 million** ownership interests in unconsolidated CLOs and **$1,487 million** in unconsolidated limited partnerships as of March 31, 2021, representing its maximum exposure to loss[228](index=228&type=chunk)[229](index=229&type=chunk) - The company elected the **Fair Value Option (FVO)** for financial assets and liabilities held by CLOs upon consolidation to align accounting with economic realities[203](index=203&type=chunk) | Asset Category | Total (Millions) | | :------------------------------------------------ | :--------------- | | Cash and cash equivalents | $146 | | Corporate loans, at fair value using the fair value option | $870 | | Limited partnerships/corporations, at fair value | $1,724 | | Total assets, at fair value | $2,740 | [15. Restructuring](index=59&type=section&id=15.%20Restructuring) The company is undertaking restructuring efforts to reduce stranded expenses following recent divestitures - The company is undertaking restructuring efforts to **reduce stranded expenses** associated with its divested Individual Life business and independent financial planning channel[232](index=232&type=chunk) - The company anticipates incurring an additional **$100-$175 million** in restructuring expenses beyond Q1 2021[232](index=232&type=chunk) | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | Cumulative Amounts Incurred to Date (Millions) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------------- | | Total restructuring expenses | $11 | $19 | $396 | [16. Segments](index=60&type=section&id=16.%20Segments) Voya Financial operates through three segments: Wealth Solutions, Investment Management, and Health Solutions - The company's principal products and services are provided through three segments: **Wealth Solutions, Investment Management, and Health Solutions**[236](index=236&type=chunk) - **Adjusted operating earnings** before income taxes and **Adjusted operating revenues** are key measures used by management to evaluate segment performance[237](index=237&type=chunk)[241](index=241&type=chunk)[243](index=243&type=chunk) | Segment | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :------------------ | :--------------------------------------- | :--------------------------------------- | | Wealth Solutions | $255 | $124 | | Investment Management | $52 | $40 | | Health Solutions | $37 | $61 | | Corporate | $(71) | $(91) | | Total | $273 | $134 | | Segment | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :------------------ | :--------------------------------------- | :--------------------------------------- | | Wealth Solutions | $782 | $677 | | Investment Management | $190 | $166 | | Health Solutions | $600 | $543 | | Corporate | $24 | $11 | | Total | $1,595 | $1,397 | | Segment | March 31, 2021 (Millions) | December 31, 2020 (Millions) | | :-------------------------- | :-------------------------- | :--------------------------- | | Wealth Solutions | $131,521 | $129,801 | | Investment Management | $981 | $1,027 | | Health Solutions | $3,019 | $2,917 | | Corporate | $24,824 | $23,535 | | Total assets, before consolidation | $160,345 | $157,280 | | Total assets | $162,861 | $180,518 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=64&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section reviews Voya's consolidated results, segment performance, liquidity, and critical accounting estimates [Overview](index=64&type=section&id=Overview) Voya Financial has reorganized its segments into Wealth Solutions, Investment Management, and Health Solutions - The company's segments are now **Wealth Solutions, Investment Management, and Health Solutions**, with Corporate handling non-segment and run-off activities[249](index=249&type=chunk) [Discontinued Operations](index=64&type=section&id=Discontinued%20Operations) Voya completed the Individual Life Transaction, resulting in an estimated net loss on sale of $1,452 million - On January 4, 2021, Voya completed the **Individual Life Transaction**, selling SLD, SLDI, and RRII, including several subsidiaries, to Resolution Life US[250](index=250&type=chunk) - The purchase price included cash, a **$225 million interest in RLGH**, and **$123 million in surplus notes**, with $100 million cash proceeds deferred[251](index=251&type=chunk)[252](index=252&type=chunk) - The company recorded an estimated loss on sale, net of tax, of **$1,466 million** as of December 31, 2020, which was reduced by $14 million in Q1 2021, resulting in a **$1,452 million estimated loss** as of March 31, 2021[253](index=253&type=chunk) - The transaction led to a net aggregate reduction in Total shareholders' equity of **$633 million** (excluding AOCI) and **$2.3 billion** (including AOCI)[254](index=254&type=chunk) | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Total revenues | $0 | $322 | | Total benefits and expenses | $0 | $278 | | Income (loss) from discontinued operations before income taxes | $0 | $44 | | Adjustment to loss on sale, net of tax | $14 | $(165) | | Income (loss) from discontinued operations, net of tax | $14 | $(130) | [Trends and Uncertainties](index=65&type=section&id=Trends%20and%20Uncertainties) The COVID-19 pandemic continues to create economic uncertainty, though the company's capital levels remain strong - COVID-19 has significantly impacted the global economy, with **uncertain longer-term outlooks** dependent on vaccine administration and effective therapies[258](index=258&type=chunk)[259](index=259&type=chunk) - Voya's capital levels remain strong, with an estimated combined RBC ratio of **603%** as of March 31, 2021, exceeding the 400% target[260](index=260&type=chunk) - The company restarted its share repurchase program in Q4 2020, repurchasing **$355 million** of common shares, and increased its common shareholder dividend by **10%** in January 2021[261](index=261&type=chunk) - COVID-19's most significant effects on Voya's results have been on **fee-based income**, with milder effects on net investment income and negative impacts on underwriting income[262](index=262&type=chunk) - In Wealth Solutions, earnings are pressured by **equity market volatility** and **lower interest rates**[263](index=263&type=chunk) - Investment Management fee income was pressured by market disruption but has improved with **macroeconomic recovery** and **positive net flows**[264](index=264&type=chunk) - Health Solutions has seen **increased mortality claims** on group life policies due to COVID-19[265](index=265&type=chunk)[266](index=266&type=chunk) - The **low interest rate environment** is expected to continue influencing profitability[267](index=267&type=chunk) - The company plans to address **'Stranded Costs'** (indirect costs from divested businesses) through a cost reduction strategy[268](index=268&type=chunk) [Results of Operations - Company Condensed Consolidated](index=69&type=section&id=Results%20of%20Operations%20-%20Company%20Condensed%20Consolidated) Voya reported a net income of $1.1 billion for Q1 2021, a significant improvement from a net loss in the prior-year period | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :------------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Total Revenues | $(1,957) | $1,685 | | Total Benefits and Expenses | $(2,995) | $1,641 | | Income (loss) from continuing operations before income taxes | $1,038 | $44 | | Net Income (loss) | $1,100 | $(80) | | Net income (loss) available to our common shareholders | $1,086 | $(100) | | Metric | As of March 31, 2021 (Millions) | As of March 31, 2020 (Millions) | | :------------------ | :------------------------------ | :------------------------------ | | Total AUM and AUA | $729,288 | $537,815 | | AUM | $373,353 | $292,510 | | AUA | $355,934 | $245,305 | - Total revenues decreased by **$3,642 million**, primarily due to a **$5,595 million decrease in premiums** resulting from the Individual Life Transaction[275](index=275&type=chunk)[276](index=276&type=chunk) - Net realized capital gains shifted from a loss of $233 million in 2020 to a **gain of $1,742 million** in 2021[276](index=276&type=chunk) - Total benefits and expenses decreased by **$4,636 million**, mainly due to a **$5,072 million decrease in policyholder benefits** related to the Individual Life Transaction[277](index=277&type=chunk) - Net amortization of DAC/VOBA **increased by $463 million**, primarily due to amortization and loss recognition from asset transfers[278](index=278&type=chunk) - Income tax benefit **increased by $42 million**, driven by the release of a stranded tax benefit in OCI[279](index=279&type=chunk) - Loss from discontinued operations **improved by $144 million**, primarily due to favorable adjustments to the Individual Life Transaction loss on sale[279](index=279&type=chunk) - Adjusted operating earnings before income taxes **increased by $139 million**, with significant contributions from Wealth Solutions and Investment Management[240](index=240&type=chunk) [Results of Operations - Segment by Segment](index=73&type=section&id=Results%20of%20Operations%20-%20Segment%20by%20Segment) Wealth Solutions and Investment Management earnings increased, while Health Solutions earnings decreased [Wealth Solutions](index=73&type=section&id=Wealth%20Solutions) Wealth Solutions' Adjusted operating earnings increased by $131 million to $255 million for Q1 2021 | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Adjusted operating earnings before income taxes | $255 | $124 | - Earnings increase was due to **higher alternative asset income**, **higher fee revenue**, favorable DAC unlocking, and lower credited interest[285](index=285&type=chunk) | Metric | As of March 31, 2021 (Millions) | As of March 31, 2020 (Millions) | | :------------------ | :------------------------------ | :------------------------------ | | Total AUM and AUA | $540,383 | $385,877 | | Total AUM | $194,209 | $145,762 | | AUA | $346,173 | $240,115 | | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :------- | :--------------------------------------- | :--------------------------------------- | | Net flows | $692 | $1,283 | [Investment Management](index=74&type=section&id=Investment%20Management) Investment Management's Adjusted operating earnings increased by $12 million to $52 million for Q1 2021 | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Adjusted operating earnings before income taxes | $52 | $40 | - Earnings increase was due to **higher investment capital returns** and **higher fee revenue**, partially offset by higher operating expenses[290](index=290&type=chunk) | Metric | As of March 31, 2021 (Millions) | As of March 31, 2020 (Millions) | | :------------------ | :------------------------------ | :------------------------------ | | Total AUM and AUA | $309,480 | $257,672 | | Total AUM | $248,550 | $210,703 | | AUA | $60,930 | $46,969 | | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :---------------- | :--------------------------------------- | :--------------------------------------- | | Institutional Net Flows | $(128) | $1,833 | | Retail Net Flows | $(252) | $(908) | | Divested businesses Net Flows | $(795) | $(702) | | Total Net Flows | $(1,175) | $223 | [Health Solutions](index=76&type=section&id=Health%20Solutions) Health Solutions' Adjusted operating earnings decreased by $24 million to $37 million for Q1 2021 | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Adjusted operating earnings before income taxes | $37 | $61 | - Earnings decrease was due to **higher benefits incurred** (from business growth and COVID-19 impacts) and higher distribution expenses[293](index=293&type=chunk) | Metric | As of March 31, 2021 (Millions) | As of March 31, 2020 (Millions) | | :-------------------------- | :------------------------------ | :------------------------------ | | Total annualized in-force premiums | $2,466 | $2,271 | | Metric | 3 Months Ended March 31, 2021 | 3 Months Ended March 31, 2020 | | :------------------------ | :---------------------------- | :---------------------------- | | Group life (interest adjusted) | 100.7% | 78.1% | | Stop loss | 75.6% | 73.2% | | Total Loss Ratio (trailing 12 months) | 71.8% | 69.1% | [Corporate](index=77&type=section&id=Corporate) Corporate's Adjusted operating loss improved by $20 million to a loss of $71 million for Q1 2021 | Metric | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Adjusted operating earnings before income taxes | $(71) | $(91) | - Improvement was due to revenue from **transition services agreements** and **lower amortization of intangibles**, partially offset by higher incentive compensation[298](index=298&type=chunk) [Alternative Investment Income](index=77&type=section&id=Alternative%20Investment%20Income) Alternative investment income for Q1 2021 showed significant increases compared to Q1 2020 | Segment | 3 Months Ended March 31, 2021 (Millions) | 3 Months Ended March 31, 2020 (Millions) | | :------------------ | :--------------------------------------- | :--------------------------------------- | | Wealth Solutions | $107 | $31 | | Investment Management | $28 | $3 | | Health Solutions | $8 | $3 | - The company expects to earn **9.0%** on alternative investments over the long term[296](index=296&type=chunk) [DAC/VOBA and Other Intangibles Unlocking](index=78&type=section&id=DAC%2FOBA%20and%20Other%20Intangibles%20Unlocking) DAC/VOBA unlocking resulted in a $2 million benefit to segment Adjusted operating earnings for Q1 2021 - DAC/VOBA and other intangibles unlocking resulted in a **$2 million benefit** to Adjusted operating earnings before income taxes for Q1 2021, compared to a $(16) million charge in Q1 2020[301](index=301&type=chunk) - Unlocking adjustments are made retroactively based on **updated assumptions** for mortality, persistency, interest crediting rates, and separate account performance[300](index=300&type=chunk) [Liquidity and Capital Resources](index=78&type=section&id=Liquidity%20and%20Capital%20Resources) Voya's excess capital as of March 31, 2021, was approximately $1.6 billion - Principal liquidity sources include product charges, investment income, proceeds from investment maturities/sales, debt issuance, and contract deposits[304](index=304&type=chunk) - The parent company's primary sources of funds are dividends and returns of capital from operating subsidiaries, which amounted to **$385 million** in Q1 2021[305](index=305&type=chunk)[308](index=308&type=chunk) - Excess capital was approximately **$1.6 billion** as of March 31, 2021[306](index=306&type=chunk) - As of March 31, 2021, the company was authorized to repurchase shares up to an aggregate purchase price of **$879 million**[309](index=309&type=chunk) - The company repurchased **$235 million** of common shares in Q1 2021[313](index=313&type=chunk) - As of March 31, 2021, total long-term debt was **$2,969 million**[316](index=316&type=chunk) - The company has a **$500 million senior unsecured credit facility**, with no amounts outstanding as of March 31, 2021[317](index=317&type=chunk)[319](index=319&type=chunk) - As of March 31, 2021, Voya Financial, Inc. had **$170 million in outstanding borrowings** from subsidiaries and had loaned **$295 million** to its subsidiaries[321](index=321&type=chunk) - The company's **financial strength and credit ratings** are important for funding access, borrowing costs, and competitive position[322](index=322&type=chunk) - Voya Retirement Insurance and Annuity Company (CT) paid **$78 million in ordinary dividends** to its parent in Q1 2021[331](index=331&type=chunk) [Off-Balance Sheet Arrangements](index=84&type=section&id=Off-Balance%20Sheet%20Arrangements) The company has obligations for the return of non-cash collateral under its securities lending program - The company has obligations for the return of non-cash collateral under its securities lending program, where non-cash collateral received **cannot be sold or re-pledged** except in default[332](index=332&type=chunk) - Commitments related to the acquisition of mortgage loans and the purchase of limited partnerships and private placement investments are detailed in the **Commitments and Contingencies Note**[333](index=333&type=chunk) [Impact of New Accounting Pronouncements](index=84&type=section&id=Impact%20of%20New%20Accounting%20Pronouncements) Information regarding new accounting pronouncements is provided in the Business and Accounting Policies Note - Information on new accounting pronouncements is available in the **Business, Basis of Presentation and Significant Accounting Policies Note**[334](index=334&type=chunk) [Critical Accounting Judgments and Estimates](index=84&type=section&id=Critical%20Accounting%20Judgments%20and%20Estimates) The company's financial statements rely on critical accounting judgments and estimates subject to uncertainty - Critical accounting judgments and estimates include estimated loss on businesses held for sale, reserves for future policy benefits, DAC/VOBA, valuation of investments and derivatives, impairments, income taxes, contingencies, and employee benefit plans[336](index=336&type=chunk) - The estimated loss on sale for the Individual Life Transaction was **$1,452 million** (net of tax) as of March 31, 2021, subject to a true-up mechanism[339](index=339&type=chunk) - A review of DAC, VOBA, and other intangibles recoverability resulted in a write-down of **$302 million for DAC/VOBA** and establishment of **$215 million in premium deficiency reserves**[341](index=341&type=chunk) - The effective tax rate for Q1 2021 was **(4.6)%**, influenced by the release of a stranded tax benefit in OCI and the dividends received deduction[343](index=343&type=chunk) [Investments (excluding Consolidated Investment Entities)](index=86&type=section&id=Investments%20(excluding%20Consolidated%20Investment%20Entities)) The total investment portfolio decreased to $45.5 billion, primarily due to a reduction in fixed maturities | Metric | March 31, 2021 (Millions) | December 31, 2020 (Millions) | | :--------------------------------------- | :-------------------------- | :--------------------------- | | Total investments | $45,494 | $56,851 | | Fixed maturities, available-for-sale, excluding securities pledged | $33,355 | $43,569 | - As of March 31, 2021, the average duration of the fixed maturities portfolio was between **7.0 and 7.5 years**[349](index=349&type=chunk) | NAIC Quality Designation | March 31, 2021 Fair Value (Millions) | % of Fair Value | | :----------------------- | :----------------------------------- | :-------------- | | 1 | $18,632 | 50.4% | | 2 | $16,325 | 44.0% | | 3 | $1,499 | 4.1% | | 4-6 | $538 | 1.5% | | Total | $36,994 | 100.0% | - As of March 31, 2021, the energy sector fixed maturity exposure was **$2.2 billion** (6.0% of total fixed maturities), with **80.6% investment grade**[361](index=361&type=chunk) - Gross unrealized capital losses on fixed maturities **increased by $138 million to $277 million** for Q1 2021[358](index=358&type=chunk) - The CMO-B portfolio's market value **declined in Q1 2021** due to asset transfers to reinsured blocks and lower valuations from higher rate levels[367](index=367&type=chunk) - As of March 31, 2021, **87.6% of CMBS** and **86.4% of Other ABS** investments were designated as NAIC-1[374](index=374&type=chunk)[376](index=376&type=chunk) - As of March 31, 2021, the commercial mortgage loan portfolio had a weighted average DSC of **2.2x** and LTV ratio of **45.7%**[378](index=378&type=chunk) - Total European exposure as of March 31, 2021, had an amortized cost of **$3,409 million** and fair value of **$3,673 million**[385](index=385&type=chunk) [Consolidated and Nonconsolidated Investment Entities](index=97&type=section&id=Consolidated%20and%20Nonconsolidated%20Investment%20Entities) The company utilizes various entities to achieve business objectives, evaluating each for consolidation - The company uses various entities (VIEs and VOEs) and **evaluates each for consolidation** based on its involvement[388](index=388&type=chunk) - Further information is provided in the **Consolidated and Nonconsolidated Investment Entities Note** to the Condensed Consolidated Financial Statements[389](index=389&type=chunk) [Securitizations](index=97&type=section&id=Securitizations) The company invests in various tranches of securitization entities as a passive investor - The company invests in RMBS, CMBS, and ABS entities as a **passive investor**, with no obligation to provide financial support[390](index=390&type=chunk) - These investments are accounted for as **available-for-sale**, with unrealized capital gains (losses) recorded directly in AOCI[230](index=230&type=chunk) [Guarantors and Issuers of Guaranteed Securities](index=97&type=section&id=Guarantors%20and%20Issuers%20of%20Guaranteed%20Securities) Voya Financial, Inc. has issued $1.5 billion in Senior Notes and $1.1 billion in Junior Subordinated Notes - Voya Financial, Inc. has issued **$1.5 billion in Senior Notes** and **$1.1 billion in Junior Subordinated Notes**[391](index=391&type=chunk) - Voya Holdings, a wholly owned subsidiary, **fully and unconditionally guarantees** these Registered Notes[392](index=392&type=chunk) | Metric | As of March 31, 2021 (Millions) | | :-------------------------------- | :------------------------------ | | Total assets | $1,365 | | Total liabilities | $3,749 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=98&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to interest rate, equity market, and credit risks [Market Risk Related to Interest Rates](index=98&type=section&id=Market%20Risk%20Related%20to%20Interest%20Rates) The company assesses interest rate risk using hypothetical 100 basis point parallel shifts in the yield curve - The company assesses interest rate exposures using hypothetical **100 basis point parallel shifts** in the yield curve[396](index=396&type=chunk) | Financial Instrument | +100 Basis Points Yield Curve Shift (Millions) | -100 Basis Points Yield Curve Shift (Millions) | | :---------------------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Fixed maturity securities, including securities pledged | $(2,569) | $2,518 | | Funding agreements without fixed maturities and deferred annuities | $(3,498) | $4,197 | | Long-term debt | $(208) | $238 | [Market Risk Related to Equity Market Prices](index=99&type=section&id=Market%20Risk%20Related%20to%20Equity%20Market%20Prices) The company assesses equity market price risk using hypothetical 10% increases or decreases in equity markets - The company assesses equity risk exposures using hypothetical **10% increases or decreases** in all equity market benchmark levels[398](index=398&type=chunk) | Financial Instrument | +10% Equity Shock (Millions) | -10% Equity Shock (Millions) | | :-------------------------------- | :--------------------------- | :--------------------------- | | Equity securities, available-for-sale | $31 | $(31) | | Limited liability partnerships/corporations | $92 | $(92) | | Guaranteed benefit derivatives | $(11) | $11 | [Market Risk Related to Credit Risk](index=100&type=section&id=Market%20Risk%20Related%20to%20Credit%20Risk) Following the Individual Life Transaction, SLD became the company's largest reinsurer - SLD became the company's **largest reinsurer** after the Individual Life Transaction, and while its obligations are collateralized, there's no assurance these assets would be sufficient in case of default[401](index=401&type=chunk) [Item 4. Controls and Procedures](index=100&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures [Disclosure Controls and Procedures](index=100&type=section&id=Disclosure%20Controls%20and%20Procedures) As of March 31, 2021, management concluded that disclosure controls and procedures were effective - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2021[403](index=403&type=chunk) [Changes in Internal Control Over Financial Reporting](index=100&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) There were no material changes to the company's internal control over financial reporting during Q1 2021 - **No material changes** to internal control over financial reporting occurred during Q1 2021[404](index=404&type=chunk) [PART II. OTHER INFORMATION](index=100&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=100&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to the Commitments and Contingencies Note for information on legal proceedings - Legal proceedings information is detailed in the **Commitments and Contingencies Note**[405](index=405&type=chunk) [Item 1A. Risk Factors](index=101&type=section&id=Item%201A.%20Risk%20Factors) The company refers to its Annual Report on Form 10-K for a discussion of potential risks and uncertainties - Risk factors are discussed in the **Annual Report on Form 10-K** and the **MD&A section** of this 10-Q[406](index=406&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=101&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Voya repurchased 5.0 million shares of its common stock at an average price of $56.35 per share | Metric | Total Number of Shares Purchased | Average Price Paid Per Share | Dollar Value of Shares Yet Be Purchased (Millions) | | :--------------------------------------- | :----------------------------- | :--------------------------- | :------------------------------------------------- | | Total | 5,046,182 | $56.35 | $879 | - The company entered into a **$250 million share repurchase agreement** on February 11, 2021, receiving initial delivery of 3,617,291 shares[407](index=407&type=chunk) [Item 6. Exhibits](index=101&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications and XBRL documents - The exhibit index includes Rule 13a-14(a)/15d-14(a) and Section 1350 certifications, as well as **XBRL taxonomy extension files** and the cover page interactive data file[411](index=411&type=chunk) [SIGNATURE](index=103&type=section&id=SIGNATURE) The report was duly signed on May 10, 2021, by the Executive Vice President and Chief Financial Officer - The report was signed by **Michael S. Smith, EVP and CFO**, on May 10, 2021[414](index=414&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 —————————————————————— FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: _001-35897______________________________________ Voya Financial, Inc. (Exact name of registrant as specified in its charter) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 —————————————————————— FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35897______________________________________ Voya Financial, Inc. (Exact name of registrant as specified in its ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 —————————————————————— FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35897______________________________________ Voya Financial, Inc. | Delaware | | 52-1222820 | | --- | --- | --- | | ( ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 —————————————————————— FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35897______________________________________ Voya Financial, Inc. (Exact name of registrant as specified ...