Core Viewpoint - Voya Financial has demonstrated strong earnings growth and solid segmental performance, positioning itself favorably in the market despite recent stock price declines compared to industry peers [2][4][6]. Financial Performance - Voya Financial's earnings grew by 16.2% over the last five years, significantly outperforming the industry average of 4.6% [2]. - The company has a solid track record of beating earnings estimates, with an average surprise of 6.77% over the last four quarters [2]. - Despite a 4.4% decline in share price over the past six months, the industry has seen a growth of 13.6% [2]. Segment Performance - The Wealth Solutions segment is experiencing significant growth due to strong underlying business results, higher surplus income, and lower administrative expenses [5]. - The Investment Management segment is expected to benefit from improved fee revenues and higher investment capital returns [7]. - The Health Solutions segment is likely to see growth across all product lines, aided by favorable retention and the Benefitfocus acquisition [9]. Valuation Metrics - Voya Financial shares are trading at a forward price-to-book value of 1.05X, lower than the industry average of 1.96X and the Finance sector's 3.99X [6]. - The company has a Value Score of A, indicating attractive valuation compared to peers [6]. Strategic Initiatives - Voya Financial has entered a long-term strategic partnership with Allianz Global Investors to enhance its Investment Management segment [8]. - The company plans to return $800 million in excess capital to shareholders in 2024, with a recent increase in quarterly dividends by 12.5% [13]. Financial Strength - As of September 30, 2024, Voya Financial's estimated combined RBC ratio was 395%, indicating strong capital levels [12]. - The company reported cash and cash equivalents of $1.4 billion, a 75.7% increase year over year, providing financial flexibility [12]. Long-term Outlook - Favorable retention, effective capital deployment, and strong underlying business results are expected to support Voya Financial's growth in the long term [14].

Core Insights - Voya Financial reported Q3 2024 adjusted operating earnings of $2.12 per share, exceeding estimates by 4.8% and showing a year-over-year increase of 2.4% [2] - The company's adjusted operating revenues reached $1.97 billion, a 7.6% increase year-over-year, driven by higher fee income and premiums [3] Financial Performance - Net investment income decreased by 7.5% year-over-year to $506 million, while fee income rose by 10.4% to $489 million [3] - Premiums totaled $796 million, reflecting a 16.7% increase from the previous year [3] - Total benefits and expenses increased by 11.4% year-over-year to $1.8 billion [3] Segment Analysis - Wealth Solutions reported adjusted operating earnings of $211 million, up 17.8% year-over-year, primarily due to growth in fee-based revenues [4] - Health Solutions saw adjusted operating earnings decline by 56.6% year-over-year to $23 million, despite a 16% growth in annualized in-force premiums and fees [5] - Investment Management's adjusted operating earnings increased by 12.2% year-over-year to $55 million, supported by higher fee-based revenues and net inflows of $3.8 billion [6] - Corporate incurred pre-tax adjusted operating losses of $59 million, wider than the $52 million loss from the previous year [7] Financial Position - Voya Financial ended the quarter with cash and cash equivalents of $1.4 billion, a 75.7% increase year-over-year [8] - Total investments were $36 billion, down 0.4% year-over-year, while long-term debt rose by 0.2% to $2.1 billion [8] - The financial leverage ratio deteriorated by 280 basis points year-over-year to 30.6% [8] - Book value per share increased by 5.9% year-over-year to $60.96 [8] Capital Management - The company returned $0.2 billion of excess capital in Q3 2024 through $149 million in share repurchases and $44 million in common stock dividends [9] Market Outlook - Estimates for Voya Financial have trended downward recently, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [12] - The stock has a poor Growth Score of F, a Momentum Score of D, and a Value Score of B, resulting in an aggregate VGM Score of C [11] Industry Comparison - Voya Financial is part of the Zacks Insurance - Life Insurance industry, where Lincoln National (LNC) has gained 6.5% over the past month, reporting revenues of $4.6 billion, a year-over-year decline of 1.5% [13] - Lincoln National is expected to post earnings of $1.83 per share for the current quarter, reflecting a year-over-year increase of 26.2% [14]

Shares of Voya Financial, Inc. (VOYA) have gained 18.5% in the past three months compared with the industry’s growth of 16.5% and the Zacks S&P 500 composite’s return of 6.4%. Currently priced at $79.93, the stock is a little below its 52-week high of $84.30. This proximity underscores investor confidence. It has the ingredients for further price appreciation. VOYA Outperforms Industry & S&P in Three MonthsImage Source: Zacks Investment ResearchThe stock is trading above the 50-day and 200-day simple moving ...

Financial Data and Key Metrics Changes - The company reported adjusted operating EPS of $1.90, a 9% increase compared to Q3 2023, driven by nearly 20% growth in Wealth Solutions and over 10% growth in Investment Management earnings [8][18] - Third quarter GAAP net income was below adjusted operating earnings primarily due to non-cash items [19] - Total capital return in the quarter was $193 million, including $149 million in share repurchases [31] Business Line Data and Key Metrics Changes - Wealth Solutions earnings were $211 million, an 18% increase year-over-year, with full-service sales up 25% year-over-year [26][24] - Investment Management achieved $3.8 billion in net inflows, marking the third consecutive quarter of positive net flows, exceeding the organic growth target for the year [28][27] - Health Solutions reported adjusted operating earnings of $23 million, significantly impacted by unfavorable loss ratio developments in Stop Loss [22] Market Data and Key Metrics Changes - The company maintained a leading position in the government market by participants and assets, with full-service net outflows of $222 million [24] - Retail client assets increased over 20% year-over-year to $31 billion, supported by investments in the retail wealth management business [25] - The mid-market sales for the year were significantly higher than total sales in 2023, indicating strong commercial momentum [10] Company Strategy and Development Direction - The company is focused on improving Stop Loss margins by prioritizing higher margins over premium growth for the 2025 book, with targeted average rate increases of 100% for January 2025 renewals [12][21] - The acquisition of OneAmerica's retirement business is expected to close on January 1, 2025, contributing at least $75 million of adjusted pretax operating earnings in the first year [15][33] - Continued emphasis on profitable growth and integration of the OneAmerica business is expected to enhance market share and operational capabilities [13][16] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Stop Loss results but highlighted strong performance in Wealth and Investment Management, indicating a robust capital return story for the year [35] - The company is confident in its ability to improve underwriting margins and achieve targeted loss ratios through active repricing and strategic actions [82][39] - Management anticipates significant improvements in excess capital generation in 2025, driven by Stop Loss repricing and the OneAmerica acquisition [17][33] Other Important Information - The company has a strong focus on integrating technology from OneAmerica to enhance service delivery and participant engagement [46][100] - The company issued $400 million of senior debt at a 5% coupon rate, with plans to retire maturing debt in early 2025 [32] Q&A Session Summary Question: Can you provide more color on the underlying claim trends in Stop Loss? - Management noted disappointment with Stop Loss results, with elevated claims across all categories driving reserve assumptions. They are actively repricing the book to improve margins [36][37] Question: Will the loss ratio likely remain above the target in 2025? - Management is targeting a 77% to 80% loss ratio for 2025, with significant rate increases expected to improve margins [39][40] Question: What is the expected impact of the OneAmerica acquisition on retention? - Management expects lower persistency for the OneAmerica business, around 90%, but believes the transition to similar technology will help maintain service levels [44][46] Question: How should we think about EPS guidance for the next few years? - Management indicated that the guidance includes contributions from OneAmerica and expects organic growth from both Investment Management and Wealth Solutions to support future EPS growth [48] Question: Can you comment on the distribution expansion from the Allianz partnership? - Management expressed satisfaction with the flow picture, highlighting strong demand in both US and international markets, contributing to net inflows exceeding organic growth targets [51][52] Question: What is the expected participant growth in Wealth Solutions? - Management anticipates a 15% participant growth in Wealth Solutions for 2025, with strong momentum in both recordkeeping and full-service segments [58][59]

Core Viewpoint - Voya Financial, Inc. reported strong third-quarter 2024 results with adjusted operating earnings of $2.12 per share, exceeding estimates and showing a year-over-year increase of 2.4% [1] Financial Performance - Adjusted operating revenues reached $1.97 billion, reflecting a 7.6% year-over-year increase driven by higher fee income, premiums, and other revenues [2] - Net investment income decreased by 7.5% year over year to $506 million [2] - Fee income rose to $489 million, up 10.4% year over year, while premiums totaled $796 million, marking a 16.7% increase from the previous year [2] - Total benefits and expenses were $1.8 billion, an increase of 11.4% year over year [2] Segment Performance - Wealth Solutions reported adjusted operating earnings of $211 million, a 17.8% increase year over year, primarily due to growth in fee-based revenues [4] - Health Solutions adjusted operating earnings were $23 million, down 56.6% year over year, despite annualized in-force premiums and fees growing 16% to $3.9 billion [5] - Investment Management posted adjusted operating earnings of $55 million, up 12.2% year over year, with net inflows of $3.8 billion during the quarter [6] - Corporate incurred pre-tax adjusted operating losses of $59 million, wider than the $52 million loss from the previous year [7] Financial Update - Voya Financial ended the quarter with cash and cash equivalents of $1.4 billion, a 75.7% increase year over year [8] - Total investments amounted to $36 billion, down 0.4% year over year [8] - Long-term debt was $2.1 billion, up 0.2% from the end of 2023, with a financial leverage ratio of 30.6%, deteriorating by 280 basis points year over year [8] - Book value per share increased by 5.9% year over year to $60.96 [8] Capital Deployment - Voya Financial returned $0.2 billion of excess capital in the third quarter through $149 million in share repurchases and $44 million in common stock dividends [10] Assets Under Management - As of September 30, 2024, Voya Financial's assets under management, administration, and advisement totaled $391.6 million [3]

Voya Financial (VOYA) reported $289 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 2.9%. EPS of $2.12 for the same period compares to $2.07 a year ago.The reported revenue represents a surprise of -9.11% over the Zacks Consensus Estimate of $317.98 million. With the consensus EPS estimate being $2.05, the EPS surprise was +3.41%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Core Viewpoint - Voya Financial reported quarterly earnings of $2.12 per share, exceeding the Zacks Consensus Estimate of $2.05 per share, and showing a slight increase from $2.07 per share a year ago, indicating a positive earnings surprise of 3.41% [1] Financial Performance - The company posted revenues of $289 million for the quarter ended September 2024, which fell short of the Zacks Consensus Estimate by 9.11%, compared to $281 million in the same quarter last year [2] - Over the last four quarters, Voya has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] Stock Performance - Voya shares have increased approximately 9.6% since the beginning of the year, while the S&P 500 has gained 20.1%, indicating underperformance relative to the broader market [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.18 on revenues of $317.29 million, and for the current fiscal year, it is $8.14 on revenues of $1.25 billion [7] - The estimate revisions trend for Voya is mixed, resulting in a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Insurance - Life Insurance industry, to which Voya belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable industry outlook [8]

Core Insights - Voya Financial reported a revenue of $324 million for the quarter ended June 2024, which is a 6.6% decrease compared to the same period last year, and the EPS was $2.27, down from $2.31 year-over-year [7] Revenue Performance - The reported revenue represents a surprise of -0.38% over the Zacks Consensus Estimate of $325.25 million [1] - Adjusted Operating Revenues for Investment Management showed various metrics, including net investment income and net gains/losses [4][5] Client Assets - Total AUM and AUA for Wealth Solutions was reported at $580.57 billion, which is lower than the estimated $586.37 billion [9] - Client Assets for Wealth Solutions - Recordkeeping were also monitored, indicating the importance of this segment [10] Analyst Estimates - The average estimate for total AUM and AUA in Wealth Solutions was $201.74 billion, while the reported figure was $199.20 billion [23] - Other key metrics included fee income and premiums, with reported figures often falling short of analyst estimates [11][12] Year-over-Year Changes - Several revenue categories showed year-over-year changes, such as a +9.1% change in a specific revenue category compared to the year-ago quarter [17] - The company’s stock has returned +3.5% over the past month, outperforming the S&P 500 composite's +0.1% change [21]

Client Assets and Deposits - Client Assets in Corporate markets increased to $111,254 million as of 6/30/2024, up from $102,522 million at 3/31/2024, representing a growth of 1.3%[1] - Client Assets at the end of the period reached $580,567 million, an increase from $518,941 million year-over-year, representing a growth of 11.9%[1] - Total Deposits for Full Service reached $5,811 million for the three months ended 6/30/2024, compared to $5,562 million for the previous quarter, reflecting a 4.5% increase[1] - Total Deposits for the quarter amounted to $12,927 million, compared to $14,935 million in the same quarter last year, reflecting a decrease of 7.5%[1] - The company’s total defined contribution client assets at the end of the period were $519,015 million, an increase from $458,068 million year-over-year, reflecting a growth of 13.3%[1] Financial Performance - Adjusted operating earnings before income taxes for the three months ended June 30, 2024, were $60 million, compared to $59 million for the previous quarter[5] - Net revenue for the three months ended June 30, 2024, was $301 million, an increase from $293 million in the prior quarter[5] - The company reported a net margin of $175 million for the quarter, consistent with the previous quarter, indicating stable performance[1] - Adjusted operating earnings before income taxes for Q2 2024 were $271 million, up from $224 million in Q1 2024, reflecting a positive trend in operational performance[22] - Net income available to common shareholders for Q2 2024 was $201 million, compared to $234 million in Q1 2024, indicating a decrease in profitability[22] - The company reported a diluted earnings per share of $1.96 for Q2 2024, down from $2.24 in Q1 2024, reflecting a decline in earnings performance[22] - Adjusted operating earnings before income taxes for the six months ended June 30, 2024, were $494 million, compared to $486 million in the same period of 2023, showing a 1.6% increase[30] - The company reported net income of $563 million for the six months ended June 30, 2024, compared to $404 million for the same period in 2023, representing a 39.3% increase[84] Revenue and Premiums - Total gross premiums and deposits in Health Solutions amounted to $904 million for the three months ended 6/30/2024, compared to $766 million for the same period last year, indicating a year-over-year increase of 18.1%[4] - Total sales by product line in Health Solutions reached $78 million for the three months ended 6/30/2024, compared to $50 million in the previous quarter, indicating a growth of 56%[4] - Full Service Fee-Based Revenue increased to $168 million, compared to $143 million in the same quarter last year, representing a growth of 17.5%[1] - Premiums collected in the quarter reached $791 million, compared to $669 million in the same quarter of the previous year, reflecting an 18.3% increase[23] - Wealth Solutions Net Revenue reached $525 million for the three months ended June 30, 2024, compared to $502 million in the previous quarter, reflecting a growth of 4.6%[75] - Health Solutions Net Revenue increased to $304 million for the three months ended June 30, 2024, up from $277 million in the previous quarter, marking a growth of 9.7%[75] Operating Expenses and Margins - The fee-based margin decreased to 54% for the three months ended June 30, 2024, down from 59% in the previous quarter[5] - Adjusted operating margin TTM was 19.1% for the three months ended June 30, 2024, compared to 23.9% in the previous quarter[5] - Adjusted operating margin for the trailing twelve months (TTM) was 26.2% as of June 30, 2024, compared to 26.4% a year prior[47] - Total Administrative Expenses for the three months ended June 30, 2024, were reported at $(520) million, compared to $(549) million in the previous quarter[76] Investment Performance - Interest credited and investment performance for Full Service was $3,186 million for the three months ended 6/30/2024, compared to $15,114 million for the previous quarter, showing a significant decrease[1] - Interest credited and other benefits to contract owners/policyholders totaled $(804) million for the quarter, up from $(656) million in the same quarter of 2023[23] - The gross investment income from public corporate assets was $133 million for the quarter ended June 30, 2024, with an earned rate of 5.1%[86] Client Flows and Market Trends - Net Flows for Full Service were negative at $(597) million for the three months ended 6/30/2024, a decline from positive net flows of $22 million in the previous quarter[1] - Net Flows for the quarter were $(1,625) million, a decline from $3,120 million in the same quarter last year, indicating a negative shift in client asset inflows[1] - Total net flows for the company were $4,151 million, a significant recovery from a net outflow of $76 million in the previous quarter[58] - Organic growth for institutional net flows was 2.1%, compared to -0.8% in the previous quarter, indicating a positive trend[58] Debt and Equity - Debt-to-capital ratio increased to 34.2% in Q2 2024 from 33.6% in Q1 2024, indicating a rise in leverage[22] - Debt-to-capital ratio improved to 34.2% as of June 30, 2024, compared to 40.1% in the previous quarter[35] - Common equity (excluding AOCI) increased to $6,014 million as of June 30, 2024, from $5,981 million as of December 31, 2023[35] - Total shareholders' equity as of June 30, 2024, was $5,686 million, down from $5,878 million as of December 31, 2023[35] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to enhance service offerings and drive future growth[102] - The company plans to reclassify $3.6 billion from certain separately managed accounts to AUM as of January 1, 2024, which may affect future reporting[16]

Financial Performance - Total revenues for the three months ended March 31, 2024, increased to $2,051 million, up from $1,835 million in the same period of 2023, representing a growth of 11.8%[20] - Net income available to Voya Financial, Inc.'s common shareholders for Q1 2024 was $234 million, compared to $69 million in Q1 2023, reflecting a significant increase of 238.8%[20] - Basic earnings per share for Q1 2024 was $2.29, compared to $0.70 for Q1 2023, indicating a substantial rise of 227.1%[20] - Net income for the three months ended March 31, 2024, was $251 million, compared to $83 million for the same period in 2023, representing a significant increase[31] - Total comprehensive income for Q1 2024 was $212 million, up from $637 million in Q1 2023, indicating a decrease primarily due to other comprehensive losses[28] - Adjusted operating earnings before income taxes for Q1 2024 totaled $224 million, up from $192 million in Q1 2023, representing a 16.7% increase[143] Assets and Liabilities - Total assets as of March 31, 2024, were $161,631 million, an increase from $157,085 million as of December 31, 2023, marking a growth of 2.9%[18] - Total liabilities increased to $155,760 million as of March 31, 2024, from $151,032 million as of December 31, 2023, which is an increase of 3.8%[18] - The balance of shareholders' equity as of March 31, 2024, was $5,697 million, a decrease from $5,521 million as of March 31, 2023[28] - As of March 31, 2024, total discretionary rate setting products amounted to $35,155 million, a decrease from $35,856 million as of December 31, 2023[128] Cash Flow and Investments - Cash flows from operating activities increased to $231 million in Q1 2024, compared to $156 million in Q1 2023, reflecting improved operational efficiency[31] - Cash and cash equivalents increased to $995 million as of March 31, 2024, from $937 million as of December 31, 2023, reflecting a growth of 6.2%[18] - The company reported net gains of $43 million in Q1 2024, compared to a loss of $16 million in Q1 2023, indicating a turnaround in performance[20] - The company’s total investments decreased to $35,687 million as of March 31, 2024, from $36,600 million as of December 31, 2023, a decline of 2.5%[16] Shareholder Returns - The company repurchased $172 million worth of common stock in Q1 2024, reflecting a commitment to returning value to shareholders[31] - Dividends paid on common stock increased to $41 million in Q1 2024, up from $20 million in Q1 2023, indicating a stronger dividend policy[31] - The Company declared dividends of $0.40 per share for Q1 2024, compared to $0.20 per share in Q1 2023, representing a 100% increase[150] Segment Performance - Wealth Solutions segment reported adjusted operating revenues of $719 million in Q1 2024, up from $684 million in Q1 2023, a growth of 5.1%[145] - Health Solutions segment adjusted operating revenues increased to $905 million in Q1 2024 from $774 million in Q1 2023, marking a significant rise of 16.9%[145] - Investment Management segment adjusted operating earnings before income taxes rose to $53 million in Q1 2024, compared to $42 million in Q1 2023, an increase of 26.2%[143] Regulatory and Compliance - The Company is currently assessing the impact of the SEC's new climate-related disclosure rules, which will be phased in starting with the annual report for the year ending December 31, 2025[48] - The Company intends to adopt ASU 2024-01 regarding stock compensation on January 1, 2025, without expecting a material impact on financial results[43] - The Company is in the process of determining the impacts of adopting ASU 2023-09 on income tax disclosures, effective after December 15, 2024[44] Risk Management - The company has determined that no allowance for credit losses is warranted for its securities, as unrealized losses are interest rate related and the company does not intend to sell these investments[62] - The company continuously evaluates mortgage loans based on current information, ensuring properties perform at acceptable levels to secure debt[66] - The company reported a total of $5,118 million in delinquent commercial mortgage loans as of March 31, 2024, compared to $5,218 million as of December 31, 2023, indicating a decrease in overall delinquency[77] Legal and Litigation - The Company continues to deny allegations in a class action lawsuit regarding breaches of fiduciary duties and intends to defend the case vigorously[187] - The company estimates the aggregate range of reasonably possible losses from litigation and regulatory matters to be up to approximately $100 million as of March 31, 2024[185]