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 ...

PART I. FINANCIAL INFORMATION (UNAUDITED) This section presents Voya Financial, Inc.'s unaudited interim financial information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Voya Financial, Inc.'s unaudited condensed consolidated financial statements and notes for Q2 2021 and FY 2020 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Snapshot of assets, liabilities, and equity at specific points in time Condensed Consolidated Balance Sheets (June 30, 2021 vs. December 31, 2020) | Metric | June 30, 2021 (Millions) | December 31, 2020 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :----------------------- | :------------------------- | :---------------- | :------- | | Total Assets | $168,194 | $180,518 | $(12,324) | -6.83% | | Total Liabilities | $158,419 | $169,340 | $(10,921) | -6.45% | | Total Shareholders' Equity | $9,775 | $11,178 | $(1,403) | -12.55% | - Assets held for sale decreased from **$20,703 million** as of December 31, 2020, to **$0** as of June 30, 2021, reflecting the completion of the **Individual Life Transaction**[15](index=15&type=chunk) - Liabilities held for sale decreased from **$18,615 million** as of December 31, 2020, to **$0** as of June 30, 2021, also due to the **Individual Life Transaction**[17](index=17&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details revenues, benefits, expenses, and net income for the reported periods Condensed Consolidated Statements of Operations (Three Months Ended June 30) | Metric | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Total Revenues | $2,503 | $1,669 | $834 | 49.97% | | Total Benefits and Expenses | $1,475 | $1,711 | $(236) | -13.79% | | Income (loss) from continuing operations before income taxes | $1,028 | $(42) | $1,070 | 2547.62% | | Net income (loss) available to Voya Financial, Inc.'s common shareholders | $459 | $(66) | $525 | 795.45% | | Basic EPS from continuing operations | $3.86 | $0.21 | $3.65 | 1738.10% | | Diluted EPS from continuing operations | $3.58 | $0.21 | $3.37 | 1604.76% | Condensed Consolidated Statements of Operations (Six Months Ended June 30) | Metric | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Total Revenues | $546 | $3,354 | $(2,808) | -83.72% | | Total Benefits and Expenses | $(1,520) | $3,352 | $(4,872) | -145.34% | | Income (loss) from continuing operations before income taxes | $2,066 | $2 | $2,064 | 103200.00% | | Net income (loss) available to Voya Financial, Inc.'s common shareholders | $1,545 | $(166) | $1,711 | 1030.72% | | Basic EPS from continuing operations | $12.64 | $0.44 | $12.20 | 2772.73% | | Diluted EPS from continuing operations | $11.78 | $0.43 | $11.35 | 2639.53% | [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Presents net income and other comprehensive income components, reflecting equity changes Condensed Consolidated Statements of Comprehensive Income (Three Months Ended June 30) | Metric | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Net income (loss) | $910 | $(141) | $1,051 | 745.39% | | Other comprehensive income (loss), after tax | $521 | $2,198 | $(1,677) | -76.30% | | Comprehensive income (loss) attributable to Voya Financial, Inc. | $984 | $2,136 | $(1,152) | -53.93% | Condensed Consolidated Statements of Comprehensive Income (Six Months Ended June 30) | Metric | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Net income (loss) | $2,010 | $(221) | $2,231 | 1009.49% | | Other comprehensive income (loss), after tax | $(2,467) | $708 | $(3,175) | -448.45% | | Comprehensive income (loss) attributable to Voya Financial, Inc. | $(904) | $560 | $(1,464) | -261.43% | [Condensed Consolidated Statements of Changes in Shareholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Outlines changes in various components of shareholders' equity over reporting periods Changes in Voya Financial, Inc. Shareholders' Equity (Three Months Ended June 30, 2021) | Metric | April 1, 2021 (Millions) | June 30, 2021 (Millions) | Change (Millions) | | :-------------------------------- | :----------------------- | :----------------------- | :---------------- | | Total Voya Financial, Inc. Shareholders' Equity | $7,931 | $8,362 | $431 | | Noncontrolling Interest | $1,068 | $1,413 | $345 | | Total Shareholders' Equity | $8,999 | $9,775 | $776 | Changes in Voya Financial, Inc. Shareholders' Equity (Six Months Ended June 30, 2021) | Metric | January 1, 2021 (Millions) | June 30, 2021 (Millions) | Change (Millions) | | :-------------------------------- | :----------------------- | :----------------------- | :---------------- | | Total Voya Financial, Inc. Shareholders' Equity | $10,110 | $8,362 | $(1,748) | | Noncontrolling Interest | $1,068 | $1,413 | $345 | | Total Shareholders' Equity | $11,178 | $9,775 | $(1,403) | - For the **six months** ended June 30, 2021, total comprehensive income (loss) attributable to **Voya Financial, Inc.** was **$(904) million**, a significant decrease from **$560 million** in the prior year, primarily due to the reversal of Other Comprehensive Income (Loss) related to the **Individual Life Transaction**[29](index=29&type=chunk)[34](index=34&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Reports cash generated and used by operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | 2021 (Millions) | 2020 (Millions) | Change (Millions) | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | | Net cash (used in) provided by operating activities | $(189) | $432 | $(621) | | Net cash provided by (used in) investing activities | $851 | $(950) | $1,801 | | Net cash (used in) provided by financing activities | $(601) | $569 | $(1,170) | | Net increase in cash and cash equivalents | $61 | $51 | $10 | | Cash and cash equivalents, end of period | $1,983 | $1,523 | $460 | - Net cash provided by **investing activities** significantly improved in **2021**, primarily due to proceeds from the sale of business (**$250 million**) and increased proceeds from the sale/maturity of **fixed maturities** (**$2,996 million**)[37](index=37&type=chunk) - Net cash used in **financing activities** in **2021** was largely driven by maturities and withdrawals from investment contracts (**$3,300 million**) and common stock repurchases (**$392 million**)[37](index=37&type=chunk) [Notes to Condensed Consolidated Financial Statements:](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%3A) Detailed explanations and additional information supporting the financial statements [1. Business, Basis of Presentation and Significant Accounting Policies](index=14&type=section&id=1.%20Business%2C%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) Describes company operations, financial statement preparation, and key accounting principles - **Voya Financial, Inc.** is a U.S. financial services organization offering retirement services, investment management, mutual funds, group insurance, and supplemental health products[38](index=38&type=chunk) - On **January 4, 2021**, the Company completed the **Individual Life Transaction**, selling substantially all of its life insurance and legacy non-**Wealth Solutions** annuity businesses to **Resolution Life US**[39](index=39&type=chunk)[40](index=40&type=chunk) - Effective **March 15, 2021**, the Retirement and Employee Benefits segments were renamed **Wealth Solutions** and **Health Solutions**, respectively, maintaining three principal segments: **Wealth Solutions**, **Investment Management**, and **Health Solutions**[41](index=41&type=chunk) - On **June 9, 2021**, the Company sold the independent financial planning channel of Voya Financial Advisors (VFA) to **Cetera Financial Group, Inc.**, resulting in a **pre-tax gain** of **$279 million** recorded in **Other revenue**[42](index=42&type=chunk) [2. Discontinued Operations](index=17&type=section&id=2.%20Discontinued%20Operations) Details financial impact and specifics of business segments that have been disposed of - On **January 4, 2021**, the Company sold five legal subsidiaries (SLD, SLDI, RRII, MUL, VAE) and related **Individual Life** and fixed/variable annuities businesses to **Resolution Life US**[53](index=53&type=chunk) - The purchase price included cash, a **$225 million** interest in **RLGH**, and **$123 million** in **surplus notes**, with **$100 million** in cash proceeds deferred for up to **42 months**[55](index=55&type=chunk) - The entities disposed of were classified as held for sale, and their results are presented as **discontinued operations**. An estimated loss on sale, net of tax, of **$1,466 million** was recorded as of December 31, 2020, with an **$8 million** reduction in the **six months** ended June 30, 2021[57](index=57&type=chunk)[58](index=58&type=chunk) Income (loss) from discontinued operations, net of tax (Six Months Ended June 30) | Metric | 2021 (Millions) | 2020 (Millions) | Change (Millions) | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | | Total Revenues | $0 | $679 | $(679) | | Total Benefits and Expenses | $0 | $655 | $(655) | | Income (loss) from discontinued operations before income taxes | $0 | $24 | $(24) | | Adjustment to loss on sale, net of tax | $8 | $(242) | $250 | | Income (loss) from discontinued operations, net of tax | $8 | $(223) | $231 | - Concurrent with the sale, the Company's subsidiaries (RLI, RLNY, VRIAC) ceded **$11.4 billion** of policyholder liabilities under **reinsurance agreements** to SLD, transferring **$10.8 billion** in invested assets and **$427 million** in cash, recognizing **$1.9 billion** in **pre-tax realized gains**[64](index=64&type=chunk) [3. Investments (excluding Consolidated Investment Entities)](index=22&type=section&id=3.%20Investments%20(excluding%20Consolidated%20Investment%20Entities)) Information on the company's investment portfolio, excluding consolidated investment entities Total Investments (June 30, 2021 vs. December 31, 2020) | Investment Type | June 30, 2021 (Millions) | December 31, 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------ | :----------------------- | :------------------------- | :---------------- | :------- | | Fixed maturities, available-for-sale | $33,983 | $43,569 | $(9,586) | -22.00% | | Mortgage loans on real estate, net | $5,579 | $6,741 | $(1,162) | -17.24% | | Total investments | $45,995 | $56,851 | $(10,856) | -19.09% | Net Investment Income (Three Months Ended June 30) | Source | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :-------------- | :-------------- | :---------------- | :------- | | Fixed maturities | $497 | $596 | $(99) | -16.61% | | Mortgage loans on real estate | $64 | $73 | $(9) | -12.33% | | Net investment income | $656 | $586 | $70 | 11.95% | Net Investment Income (Six Months Ended June 30) | Source | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :-------------------------------- | :-------------- | :-------------- | :---------------- | :------- | | Fixed maturities | $1,012 | $1,167 | $(155) | -13.28% | | Mortgage loans on real estate | $125 | $147 | $(22) | -14.97% | | Net investment income | $1,370 | $1,284 | $86 | 6.70% | - Gross **unrealized capital losses** on **fixed maturities** decreased by **$9 million** to **$130 million** for the **six months** ended June 30, 2021, primarily due to non-credit related market factors[87](index=87&type=chunk) - The **allowance for credit losses** on available-for-sale **fixed maturity** securities decreased from **$26 million** at January 1, 2021, to **$18 million** at June 30, 2021[82](index=82&type=chunk) - The **allowance for credit losses** for commercial mortgage loans decreased from **$89 million** at December 31, 2020, to **$33 million** at June 30, 2021[102](index=102&type=chunk) [4. Derivative Financial Instruments](index=37&type=section&id=4.%20Derivative%20Financial%20Instruments) Explains company's use of derivatives for risk management and their fair values - The Company uses **interest rate swaps**, **foreign exchange swaps**, **total return swaps**, **futures**, and **embedded derivatives** primarily to reduce market risks, alter interest rate exposure, and hedge against equity index decreases or increases[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) Notional Amounts and Fair Values of Derivatives (June 30, 2021 vs. December 31, 2020) | Derivative Type | June 30, 2021 Notional (Millions) | June 30, 2021 Asset Fair Value (Millions) | June 30, 2021 Liability Fair Value (Millions) | Dec 31, 2020 Notional (Millions) | Dec 31, 2020 Asset Fair Value (Millions) | Dec 31, 2020 Liability Fair Value (Millions) | | :------------------------------------ | :-------------------------------- | :------------------------------------ | :------------------------------------- | :-------------------------------- | :------------------------------------ | :------------------------------------- | | Interest rate contracts | $18,028 | $134 | $255 | $19,859 | $195 | $328 | | Foreign exchange contracts | $911 | $8 | $35 | $878 | $4 | $46 | | Equity contracts | $286 | $13 | $2 | $412 | $16 | $12 | | Embedded derivatives (within products) | N/A | $0 | $44 | N/A | $0 | $95 | | Total Derivatives (Asset) | | $171 | | | $235 | | | Total Derivatives (Liability) | | | $575 | | | $649 | - A substantial portion of the Company's derivative positions were not designated or did not qualify for **hedge accounting** but provide an economic hedge aligned with risk management objectives[118](index=118&type=chunk) - As of June 30, 2021, the Company held **$15 million** and pledged **$132 million** of **net cash collateral** related to OTC and cleared derivative contracts, respectively[122](index=122&type=chunk) [5. Fair Value Measurements (excluding Consolidated Investment Entities)](index=43&type=section&id=5.%20Fair%20Value%20Measurements%20(excluding%20Consolidated%20Investment%20Entities)) Details methodologies and hierarchy for fair value measurements of financial instruments Fair Value Hierarchy of Assets (June 30, 2021) | Asset Type | Level 1 (Millions) | Level 2 (Millions) | Level 3 (Millions) | Total (Millions) | | :------------------------------------ | :----------------- | :----------------- | :----------------- | :--------------- | | Fixed maturities, including securities pledged | $749 | $34,368 | $2,522 | $37,639 | | Equity securities | $105 | $0 | $249 | $354 | | Assets held in separate accounts | $91,269 | $5,536 | $293 | $97,098 | | Total assets | $94,952 | $40,219 | $3,109 | $138,280 | | Percentage of Level to total | 69% | 29% | 2% | 100% | Fair Value Hierarchy of Liabilities (June 30, 2021) | Liability Type | Level 1 (Millions) | Level 2 (Millions) | Level 3 (Millions) | Total (Millions) | | :------------------------------------ | :----------------- | :----------------- | :----------------- | :--------------- | | Guaranteed benefit derivatives | $0 | $0 | $54 | $54 | | Other derivatives | $0 | $293 | $0 | $293 | | Embedded derivative on reinsurance | $0 | $152 | $85 | $237 | | Total liabilities | $0 | $445 | $139 | $584 | | Percentage of Level to total | 0% | 76% | 24% | 100% | - **Fair values** are determined using third-party commercial pricing services, brokers, and industry-standard software, incorporating market observable inputs for **Level 2 assets** and unobservable inputs for **Level 3 assets/liabilities**[129](index=129&type=chunk)[130](index=130&type=chunk) - For the three and **six months** ended June 30, 2021 and 2020, transfers in and out of **Level 3** for **fixed maturities** were due to variations in valuation inputs, with securities valued by independent broker quotes moving into **Level 3** and those with more widely available information moving out[158](index=158&type=chunk) [6. Deferred Policy Acquisition Costs and Value of Business Acquired](index=56&type=section&id=6.%20Deferred%20Policy%20Acquisition%20Costs%20and%20Value%20of%20Business%20Acquired) Explains accounting for deferred policy acquisition costs and value of acquired businesses Rollforward of DAC and VOBA (Six Months Ended June 30, 2021) | Metric | DAC (Millions) | VOBA (Millions) | Total (Millions) | | :------------------------------------------------ | :------------- | :-------------- | :--------------- | | Balance as of January 1, 2021 | $1,440 | $70 | $1,510 | | Deferrals of commissions and expenses | $50 | $3 | $53 | | Net amortization included in Condensed Consolidated Statements of Operations | $(432) | $(133) | $(565) | | Change due to unrealized capital gains/(losses) on available-for-sale securities | $181 | $267 | $448 | | Balance as of June 30, 2021 | $1,239 | $207 | $1,446 | - During **2021**, the Company recognized **loss recognition** of **$301 million** for **DAC** and **$1 million** for **VOBA**[162](index=162&type=chunk) [7. Share-based Incentive Compensation Plans](index=56&type=section&id=7.%20Share-based%20Incentive%20Compensation%20Plans) Describes company's share-based compensation programs and related expenses Share-based Compensation Expense (Six Months Ended June 30) | Award Type | 2021 (Millions) | 2020 (Millions) | Change (Millions) | | :-------------------------------- | :-------------- | :-------------- | :---------------- | | Restricted Stock Unit (RSU) awards | $26 | $27 | $(1) | | Performance Stock Unit (PSU) awards | $30 | $25 | $5 | | Total share-based compensation expense | $57 | $55 | $2 | | After-tax share-based compensation expense | $42 | $32 | $10 | - As of June 30, 2021, **1.2 million RSU awards** and **2.1 million PSU awards** were outstanding, with weighted average grant date fair values of **$57.43** and **$54.06**, respectively[167](index=167&type=chunk) - As of June 30, 2021, **2.3 million stock options** were outstanding with a weighted average exercise price of **$42.67**[167](index=167&type=chunk) [8. Shareholders' Equity](index=57&type=section&id=8.%20Shareholders'%20Equity) Provides details on components of shareholders' equity, including common stock and repurchases Common Shares Outstanding (June 30, 2021 vs. December 31, 2020) | Metric | June 30, 2021 (Millions) | December 31, 2020 (Millions) | Change (Millions) | | :------------------------- | :----------------------- | :------------------------- | :---------------- | | Issued | 145.4 | 143.3 | 2.1 | | Held in Treasury | 32.0 | 19.1 | 12.9 | | Outstanding | 113.4 | 124.2 | (10.8) | - **Dividends declared per share** of Common Stock increased from **$0.15** in Q2 2020 to **$0.165** in Q2 2021, and from **$0.30** in H1 2020 to **$0.33** in H1 2021[169](index=169&type=chunk) - On **January 28, 2021**, the Board authorized an additional **$1 billion** for **common stock repurchases**, expiring **March 31, 2022**[171](index=171&type=chunk) - As of June 30, 2021, **625,000 shares** of **preferred stock** (Series A and B) were issued and outstanding, with no dividends in arrears[174](index=174&type=chunk)[175](index=175&type=chunk) [9. Earnings per Common Share](index=60&type=section&id=9.%20Earnings%20per%20Common%20Share) Presents calculation of basic and diluted earnings per common share Earnings per Common Share (Three Months Ended June 30) | Metric | 2021 | 2020 | Change | | :------------------------------------------------------------------------------------------------ | :--- | :--- | :----- | | Basic EPS from continuing operations | $3.86 | $0.21 | $3.65 | | Basic EPS (total) | $3.81 | $(0.52) | $4.33 | | Diluted EPS from continuing operations | $3.58 | $0.21 | $3.37 | | Diluted EPS (total) | $3.53 | $(0.51) | $4.04 | Earnings per Common Share (Six Months Ended June 30) | Metric | 2021 | 2020 | Change | | :------------------------------------------------------------------------------------------------ | :--- | :--- | :----- | | Basic EPS from continuing operations | $12.64 | $0.44 | $12.20 | | Basic EPS (total) | $12.71 | $(1.29) | $14.00 | | Diluted EPS from continuing operations | $11.78 | $0.43 | $11.35 | | Diluted EPS (total) | $11.84 | $(1.25) | $13.09 | - **Weighted average common shares outstanding** (basic) decreased from **126.2 million** in Q2 2020 to **120.6 million** in Q2 2021, and from **128.6 million** in H1 2020 to **121.6 million** in H1 2021[177](index=177&type=chunk) [10. Accumulated Other Comprehensive Income (Loss)](index=61&type=section&id=10.%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) Details components and changes in accumulated other comprehensive income or loss Accumulated Other Comprehensive Income (AOCI) (June 30, 2021 vs. December 31, 2020) | Component | June 30, 2021 (Millions) | December 31, 2020 (Millions) | Change (Millions) | | :------------------------------------------------ | :----------------------- | :------------------------- | :---------------- | | Fixed maturities, net of impairment | $3,739 | $6,914 | $(3,175) | | Derivatives | $63 | $195 | $(132) | | DAC/VOBA adjustment on available-for-sale securities | $(877) | $(1,915) | $1,038 | | Net unrealized capital gains (losses) | $2,427 | $4,034 | $(1,607) | | AOCI | $2,431 | $4,039 | $(1,608) | - The change in **AOCI** for the **six months** ended June 30, 2021, was **$(2,467) million** after tax, primarily driven by a significant decrease in **unrealized gains** on available-for-sale securities[183](index=183&type=chunk) - The portion of **AOCI** expected to be reclassified into earnings within the next **12 months** is **$20 million** as of June 30, 2021[178](index=178&type=chunk) [11. Income Taxes](index=66&type=section&id=11.%20Income%20Taxes) Explains company's income tax provisions, effective tax rates, and related adjustments - The **effective tax rate** for the three months ended June 30, 2021, was **10.9%**, differing from the **statutory rate** of **21%** primarily due to **non-controlling interest** and the **dividends received deduction (DRD)**[188](index=188&type=chunk) - For the **six months** ended June 30, 2021, the **effective tax rate** was **3.1%**, primarily influenced by the release of a stranded tax benefit in Other Comprehensive Income due to the **Individual Life Transaction**, **non-controlling interest**, and **DRD**[188](index=188&type=chunk) - The Company participated in the **IRS Compliance Assurance Process (CAP)** for tax years **2019-2021**, being in the Compliance Maintenance Bridge phase for **2019** and **2020**[190](index=190&type=chunk) [12. Financing Agreements](index=67&type=section&id=12.%20Financing%20Agreements) Describes company's debt instruments, credit facilities, and related covenants Carrying Value of Debt Securities (June 30, 2021 vs. December 31, 2020) | Debt Type | June 30, 2021 (Millions) | December 31, 2020 (Millions) | Change (Millions) | | :------------------------------------------------ | :----------------------- | :------------------------- | :---------------- | | 3.125% Senior Notes, due 2024 | $375 | $398 | $(23) | | 3.65% Senior Notes, due 2026 | $444 | $497 | $(53) | | Total long-term debt | $2,969 | $3,044 | $(75) | - During the **six months** ended June 30, 2021, the Company repurchased **$23 million** par value of its **3.125% Senior Notes** and **$53 million** par value of its **3.65% Senior Notes**, resulting in a **$10 million loss on debt extinguishment**[194](index=194&type=chunk) - As of June 30, 2021, the Company had a **$500 million senior unsecured credit facility** expiring **November 1, 2024**, with no outstanding borrowings and was in compliance with **debt covenants**[194](index=194&type=chunk) [13. Commitments and Contingencies](index=67&type=section&id=13.%20Commitments%20and%20Contingencies) Outlines company's contractual obligations, off-balance sheet commitments, and legal matters - The Company recorded a **$13 million impairment on its right-of-use asset** for leased office space during the three and **six months** ended June 30, 2021[195](index=195&type=chunk) - As of June 30, 2021, **off-balance sheet commitments** included **$177 million** to acquire mortgage loans and **$1,040 million** to purchase limited partnerships and private placement investments[197](index=197&type=chunk) Total Restricted Assets (June 30, 2021 vs. December 31, 2020) | Asset Type | June 30, 2021 (Millions) | December 31, 2020 (Millions) | Change (Millions) | | :-------------------------------- | :----------------------- | :------------------------- | :---------------- | | Fixed maturity collateral pledged to FHLB | $1,807 | $1,386 | $421 | | Securities pledged | $1,094 | $449 | $645 | | Total restricted assets | $3,035 | $1,951 | $1,084 | - 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 June 30, 2021[206](index=206&type=chunk) [14. Consolidated and Nonconsolidated Investment Entities](index=70&type=section&id=14.%20Consolidated%20and%20Nonconsolidated%20Investment%20Entities) Details company's involvement with and accounting for investment entities - The Company consolidates certain **investment entities** (**CLOs** and **LPs**) where it is the **primary beneficiary** or has **controlling financial interest** through voting rights[214](index=214&type=chunk)[216](index=216&type=chunk)[219](index=219&type=chunk) - As of June 30, 2021, the Company was the **primary beneficiary** of **6 CLOs** (up from **3** in Dec 2020) and consolidated **13 limited partnerships** (up from **12** in Dec 2020)[218](index=218&type=chunk)[220](index=220&type=chunk) - **Non-controlling interest** related to consolidated partnerships increased from **$1,068 million** at December 31, 2020, to **$1,413 million** at June 30, 2021, driven by favorable **market appreciation**[221](index=221&type=chunk) Fair Value Hierarchy of Consolidated Investment Entities Assets (June 30, 2021) | Asset Type | Level 1 (Millions) | Level 2 (Millions) | Level 3 (Millions) | NAV (Millions) | Total (Millions) | | :------------------------------------ | :----------------- | :----------------- | :----------------- | :------------- | :--------------- | | Cash and cash equivalents | $85 | $0 | $0 | $0 | $85 | | Corporate loans, at fair value | $0 | $1,081 | $0 | $0 | $1,081 | | Limited partnerships/corporations | $0 | $0 | $0 | $2,248 | $2,248 | | Total assets, at fair value | $85 | $1,081 | $0 | $2,248 | $3,414 | - The Company holds **$388 million** in **unconsolidated CLOs** and **$1,543 million** in **unconsolidated limited partnerships**, representing its **maximum exposure to loss** in these entities[246](index=246&type=chunk)[247](index=247&type=chunk) [15. Restructuring](index=75&type=section&id=15.%20Restructuring) Describes company's restructuring initiatives and associated expenses - The Company is undertaking **restructuring efforts** to reduce **stranded expenses** from the **Individual Life Transaction** and the sale of **VFA's independent financial planning channel**[249](index=249&type=chunk) - Additional **restructuring expenses** of **$60 million** - **$135 million** are anticipated beyond Q2 2021, following **$78 million** in 2020 and **$52 million** for the **six months** ended June 30, 2021[249](index=249&type=chunk) Organizational Restructuring Expenses (Six Months Ended June 30) | Cost Type | 2021 (Millions) | 2020 (Millions) | Cumulative to Date (Millions) | | :-------------------------- | :-------------- | :-------------- | :---------------------------- | | Severance benefits | $13 | $(8) | $75 | | Organizational transition costs | $39 | $64 | $362 | | Total restructuring expenses | $52 | $56 | $437 | | Continuing operations | $52 | $36 | $372 | | Discontinued operations | $0 | $20 | $65 | [16. Segments](index=76&type=section&id=16.%20Segments) Provides financial information by operating segments: Wealth, Investment Management, and Health Solutions - The Company operates through three segments: **Wealth Solutions**, **Investment Management**, and **Health Solutions**, with **Corporate activities** including non-segment related and run-off activities[254](index=254&type=chunk)[265](index=265&type=chunk) Adjusted Operating Earnings Before Income Taxes by Segment (Three Months Ended June 30) | Segment | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :-------------------- | :-------------- | :-------------- | :---------------- | :------- | | Wealth Solutions | $295 | $37 | $258 | 697.30% | | Investment Management | $66 | $20 | $46 | 230.00% | | Health Solutions | $63 | $36 | $27 | 75.00% | | Corporate | $(71) | $(75) | $4 | -5.33% | | Total | $353 | $17 | $336 | 1976.47% | Adjusted Operating Earnings Before Income Taxes by Segment (Six Months Ended June 30) | Segment | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :-------------------- | :-------------- | :-------------- | :---------------- | :------- | | Wealth Solutions | $550 | $160 | $390 | 243.75% | | Investment Management | $118 | $59 | $59 | 100.00% | | Health Solutions | $100 | $98 | $2 | 2.04% | | Corporate | $(142) | $(166) | $24 | -14.46% | | Total | $626 | $151 | $475 | 314.57% | Total AUM and AUA by Segment (June 30, 2021 vs. June 30, 2020) | Segment | June 30, 2021 (Millions) | June 30, 2020 (Millions) | Change (Millions) | % Change | | :-------------------- | :----------------------- | :----------------------- | :---------------- | :------- | | Wealth Solutions | $527,835 | $437,290 | $90,545 | 20.71% | | Investment Management | $315,331 | $281,900 | $33,431 | 11.86% | | Health Solutions | $1,905 | $1,870 | $35 | 1.87% | | Total AUM and AUA | $721,165 | $606,090 | $115,075 | 18.99% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=81&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Comprehensive review of Voya Financial, Inc.'s consolidated results, financial condition, and key trends - The Company completed the **Individual Life Transaction** on **January 4, 2021**, selling substantially all of its life insurance and legacy non-**Wealth Solutions** annuity businesses, with results presented as **discontinued operations**[267](index=267&type=chunk)[269](index=269&type=chunk) - The sale of **VFA's independent financial planning channel** on **June 9, 2021**, resulted in a **$279 million pre-tax gain**, excluded from **Adjusted operating earnings**[266](index=266&type=chunk) - The estimated combined **RBC ratio** was **544%** as of June 30, 2021, significantly above the **400%** target, indicating strong capital levels[276](index=276&type=chunk) - The Company restarted its **share repurchase program** in Q4 2020, repurchasing approximately **$873 million** of **common shares**, and increased its **common shareholder dividend** by **10%** in January 2021[277](index=277&type=chunk) - **COVID-19** has primarily impacted **fee-based income** and **underwriting income** (due to increased mortality/morbidity), with lower **interest rates** contributing to reduced **spread-based income** in **Wealth Solutions**[278](index=278&type=chunk)[279](index=279&type=chunk)[282](index=282&type=chunk) - The Company anticipates incurring additional **restructuring expenses** of **$60 million** - **$135 million** beyond Q2 2021 to reduce **stranded costs** from recent dispositions[286](index=286&type=chunk) Consolidated Total Revenues (Three Months Ended June 30) | Revenue Type | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Net investment income | $656 | $586 | $70 | 11.95% | | Fee income | $436 | $464 | $(28) | -6.03% | | Premiums | $516 | $607 | $(91) | -14.99% | | Net realized capital gains (losses) | $(37) | $(1) | $(36) | 3600.00% | | Other revenue | $374 | $81 | $293 | 361.73% | | Income (loss) related to consolidated investment entities | $558 | $(68) | $626 | 920.59% | | Total revenues | $2,503 | $1,669 | $834 | 49.97% | Consolidated Total Revenues (Six Months Ended June 30) | Revenue Type | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Net investment income | $1,370 | $1,284 | $86 | 6.70% | | Fee income | $894 | $969 | $(75) | -7.74% | | Premiums | $(4,471) | $1,215 | $(5,686) | -467.98% | | Net realized capital gains (losses) | $1,705 | $(234) | $1,939 | -828.63% | | Other revenue | $484 | $173 | $311 | 179.77% | | Income (loss) related to consolidated investment entities | $564 | $(53) | $617 | 1164.15% | | Total revenues | $546 | $3,354 | $(2,808) | -83.72% | Consolidated Total Benefits and Expenses (Three Months Ended June 30) | Expense Type | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Interest credited and other benefits to contract owners/policyholders | $686 | $997 | $(311) | -31.19% | | Operating expenses | $706 | $643 | $63 | 9.80% | | Net amortization of DAC/VOBA | $26 | $19 | $7 | 36.84% | | Total benefits and expenses | $1,475 | $1,711 | $(236) | -13.79% | Consolidated Total Benefits and Expenses (Six Months Ended June 30) | Expense Type | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Interest credited and other benefits to contract owners/policyholders | $(3,504) | $1,879 | $(5,383) | -286.48% | | Operating expenses | $1,308 | $1,283 | $25 | 1.95% | | Net amortization of DAC/VOBA | $565 | $95 | $470 | 494.74% | | Total benefits and expenses | $(1,520) | $3,352 | $(4,872) | -145.34% | Wealth Solutions Adjusted Operating Earnings Before Income Taxes (Six Months Ended June 30) | Metric | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Total adjusted operating revenues | $1,589 | $1,236 | $353 | 28.56% | | Total operating benefits and expenses | $1,040 | $1,075 | $(35) | -3.26% | | Adjusted operating earnings before income taxes | $550 | $160 | $390 | 243.75% | Investment Management Adjusted Operating Earnings Before Income Taxes (Six Months Ended June 30) | Metric | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Total adjusted operating revenues | $382 | $294 | $88 | 29.93% | | Total operating benefits and expenses | $264 | $235 | $29 | 12.34% | | Adjusted operating earnings before income taxes | $118 | $59 | $59 | 100.00% | Health Solutions Adjusted Operating Earnings Before Income Taxes (Six Months Ended June 30) | Metric | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Total adjusted operating revenues | $1,190 | $1,074 | $116 | 10.80% | | Total operating benefits and expenses | $1,090 | $976 | $114 | 11.68% | | Adjusted operating earnings before income taxes | $100 | $98 | $2 | 2.04% | Corporate Adjusted Operating Earnings Before Income Taxes (Six Months Ended June 30) | Metric | 2021 (Millions) | 2020 (Millions) | Change (Millions) | % Change | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | :------- | | Total adjusted operating revenues | $48 | $18 | $30 | 166.67% | | Total operating benefits and expenses | $190 | $184 | $6 | 3.26% | | Adjusted operating earnings before income taxes | $(142) | $(166) | $24 | -14.46% | Parent Company Cash and Cash Equivalents (Six Months Ended June 30) | Metric | 2021 (Millions) | 2020 (Millions) | Change (Millions) | | :------------------------------------------ | :-------------- | :-------------- | :---------------- | | Beginning cash and cash equivalents balance | $229 | $212 | $17 | | Total sources | $2,183 | $620 | $1,563 | | Total uses | $1,657 | $589 | $1,068 | | Net increase in cash and cash equivalents | $526 | $31 | $495 | | Ending cash and cash equivalents balance | $755 | $243 | $512 | - The average duration of the **fixed maturities portfolio**, including securities pledged, is between **7.0** and **7.5 years** as of June 30, 2021[380](index=380&type=chunk) - As of June 30, 2021, **94.6%** of the **fixed maturities portfolio** had **NAIC quality designations** of **1** or **2**, indicating high credit quality[382](index=382&type=chunk) - The Company's total **European exposure** had an amortized cost of **$3,367 million** and fair value of **$3,698 million** as of June 30, 2021, with peripheral Europe exposure at **$389 million**[414](index=414&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=121&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Details company's exposure to market risks, including interest rate, equity price, and credit risk - The Company is exposed to **interest rate risk**, **equity market price risk**, and **credit risk**, with no material market risk exposure to **'trading' activities**[424](index=424&type=chunk) Net Estimated Potential Change in Fair Value from Hypothetical 100 Basis Point Interest Rate Shifts (June 30, 2021) | Financial Instrument | +100 Basis Points Yield Curve Shift (Millions) | -100 Basis Points Yield Curve Shift (Millions) | | :------------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Fixed maturity securities, including securities pledged | $(2,639) | $2,653 | | Commercial mortgage and other loans | $(273) | $255 | | Funding agreements without fixed maturities and deferred annuities | $(3,203) | $4,031 | | Interest rate contracts (Derivatives) | $113 | $(153) | | Long-term debt | $(214) | $246 | Net Estimated Potential Change in Fair Value from Hypothetical 10% Equity Market Shock (June 30, 2021) | Financial Instrument | +10% Equity Shock (Millions) | -10% Equity Shock (Millions) | | :------------------------------------------------ | :--------------------------- | :--------------------------- | | Equity securities, at fair value | $28 | $(28) | | Limited liability partnerships/corporations | $95 | $(95) | | Equity futures and total return swaps (Derivatives) | $14 | $(14) | | Guaranteed benefit derivatives | $0 | $1 | - The Company's largest **reinsurer** is SLD, with **reinsurance obligations** **collateralized** through assets held in trust. Any default by SLD or loss of credit for reinsurance could impact reserves or claims[431](index=431&type=chunk) [Item 4. Controls and Procedures](index=123&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms effectiveness of company's disclosure controls and internal control over financial reporting - The Company's **disclosure controls and procedures** were evaluated as effective as of June 30, 2021[433](index=433&type=chunk) - No material changes to **internal control over financial reporting** occurred during the quarter ended June 30, 2021[434](index=434&type=chunk) PART II. OTHER INFORMATION Additional information not covered in financial statements, including legal, risk, and equity matters [Item 1. Legal Proceedings](index=123&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Commitments and Contingencies Note for details on legal proceedings - Information on **legal proceedings** is cross-referenced to the **Commitments and Contingencies Note** in the financial statements[435](index=435&type=chunk) [Item 1A. Risk Factors](index=124&type=section&id=Item%201A.%20Risk%20Factors) Directs readers to Annual Report on Form 10-K for risks and Item 2 for trends - Potential **risks and uncertainties** are discussed in the **Annual Report on Form 10-K** and in Item 2 of this **Quarterly Report**[436](index=436&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=124&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Summarizes common stock repurchases, average price, and remaining authorization Common Stock Repurchases (Three Months Ended June 30, 2021) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Dollar Value of Shares that May Yet Be Purchased (Millions) | | :-------------------------- | :------------------------------- | :--------------------------- | :---------------------------------------------------- | | April 1, 2021 - April 30, 2021 | 16,988 | $68.39 | $879 | | May 1, 2021 - May 31, 2021 | 1,029,941 | $65.26 | $834 | | June 1, 2021 - June 30, 2021 | 6,824,692 | $61.85 | $332 | | Total | 7,871,621 | $62.31 | N/A | - As of June 30, 2021, **$332 million** remained authorized for **common stock repurchases** under the plan expiring **March 31, 2022**[437](index=437&type=chunk) - On June 30, 2021, the Company entered into a **share repurchase agreement** for **$400 million** of **common stock**, with initial delivery of **5,203,252 shares**[437](index=437&type=chunk) [Item 6. Exhibits](index=124&type=section&id=Item%206.%20Exhibits) Refers to the Exhibit Index for a list of all exhibits filed with the Quarterly Report on Form 10-Q - The **Exhibit Index** provides a list of all exhibits filed with the report[438](index=438&type=chunk) [Exhibit Index](index=125&type=section&id=Exhibit%20Index) Lists exhibits accompanying Form 10-Q, including CEO/CFO certifications and XBRL documents - Includes Rule 13a-14(a)/15d-14(a) **Certifications** from the **CEO** and **CFO** (Exhibits 31.1 and 31.2)[441](index=441&type=chunk) - Includes Section 1350 **Certifications** from the **CEO** and **CFO** (Exhibits 32.1 and 32.2)[441](index=441&type=chunk) - **XBRL Instance Document** and **Taxonomy Extension files** (Schema, Calculation, Definition, Label, Presentation Linkbases) are included[441](index=441&type=chunk) [Signature](index=126&type=section&id=Signature) Contains signature of registrant by CFO, certifying report filing on August 6, 2021 - The report was signed by Michael S. Smith, **Vice Chairman and Chief Financial Officer**, on behalf of **Voya Financial, Inc.** on **August 6, 2021**[444](index=444&type=chunk)

[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)

Workforce and Diversity - As of December 31, 2020, the company had approximately 6,000 employees, with 99% being full-time and US-based[117] - The company aims for approximately 35% of its workforce to be fully remote and 63% to be hybrid post-COVID[117] - Females or people of color represent 61% of the workforce, with the Board of Directors being 56% diverse[118] - The company maintains a robust Total Rewards offering to attract and retain a diverse workforce[121] Corporate Strategy and Transactions - The company completed the divestiture of its individual life business on January 4, 2021, as part of a strategic transaction[114] - The company disposed of substantially all of its CBVA and Fixed and Fixed Indexed Annuities businesses on June 1, 2018[115] Regulatory Environment - The company is subject to comprehensive regulation and supervision under U.S. state and federal laws, impacting its insurance subsidiaries[126] - The NAIC's "Solvency Modernization Initiative" focuses on capital requirements and risk management, requiring annual risk assessments[137] - The company does not anticipate any regulatory action based on its 2020 IRIS ratio results, as regulators have been satisfied in prior years[148] - The NAIC is reviewing asset factors for RBC requirements, which may lead to changes affecting capital requirements for certain securities[144] - The company expects cybersecurity risk management to remain a significant focus for regulatory bodies in 2021[150] - The SEC's Regulation Best Interest, effective June 30, 2020, imposes a heightened standard for broker-dealers, but the company does not foresee a material impact from compliance[152] - The Department of Labor's revised fiduciary interpretation and prohibited transaction exemption are expected to have no material impact on the company[153] - Insurance regulators have the authority to limit or prohibit new policy issuance if an insurer does not maintain a minimum surplus, but the company does not foresee such risks[142] - The company’s insurance subsidiaries are subject to annual analyses of statutory reserves to ensure they meet contractual obligations[141] Financial Management - The company relies on dividends and distributions from subsidiaries as the main source of cash to meet obligations, including debt repayments[139] - In 2020, the total adjusted capital of each insurance subsidiary exceeded statutory minimum Risk-Based Capital (RBC) levels, indicating no need for regulatory action[143] - The CARES Act allows retirement plan participants to withdraw up to $100,000 penalty-free due to COVID-19, but the company does not expect a material effect on its financial condition[166] Compliance and Risk Management - Voya Institutional Trust Company (VITC) and Voya Investment Trust Co. (VINTCO) are trust subsidiaries regulated by the Connecticut Department of Banking[167] - VITC is required to comply with FinCEN's Customer Due Diligence and Beneficial Ownership rules starting March 15, 2021[168] - The company must adhere to economic and trade sanctions programs administered by the Office of Foreign Asset Control[170] - U.S. federal and state laws, including the California Consumer Privacy Act, impose significant compliance costs related to data privacy[171] - Environmental assessments are routinely conducted prior to closing new commercial mortgage loans to mitigate unexpected liabilities[173]

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 ...

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, 2019 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 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 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 specif ...

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 June 30, 2019 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 i ...