Voya Financial(US:VOYA)2022-11-03 20:14Financial Performance - Total revenues for Q3 2022 were $1,338 million, a decrease of 33.4% from $2,009 million in Q3 2021[19] - Net income available to Voya Financial, Inc.'s common shareholders for Q3 2022 was $193 million, compared to $142 million in Q3 2021, representing a 36% increase[19] - Net income for the three months ended September 30, 2022, was $69 million, a decrease from $370 million in the same period of 2021[22] - Comprehensive income attributable to Voya Financial, Inc. was a loss of $816 million for the three months ended September 30, 2022, compared to a gain of $41 million in the prior year[22] - For the nine months ended September 30, 2022, net income was $296 million, a decrease from $2,380 million in the same period of 2021[22] - The company reported comprehensive income (loss) of $(3,790) million for the nine months ended September 30, 2022, compared to $(202) million in the prior year[22] Assets and Liabilities - Total assets decreased to $144,048 million as of September 30, 2022, down from $171,262 million as of December 31, 2021, a decline of 15.9%[15] - Total liabilities decreased to $138,210 million as of September 30, 2022, down from $161,441 million as of December 31, 2021, a reduction of 14.4%[17] - Total shareholders' equity as of September 30, 2022, was $5,683 million, down from $6,213 million as of July 1, 2022[25] - As of September 30, 2022, total shareholders' equity was $5,683 million, with retained earnings showing a deficit of $873 million[28] Investment Income - Net investment income for Q3 2022 was $522 million, down from $731 million in Q3 2021, a decrease of 28.6%[19] - Fee income for Q3 2022 was $435 million, a decrease of 10.7% from $487 million in Q3 2021[19] - Gross investment income for the nine months ended September 30, 2022, was $1,777 million, down from $2,152 million in the same period of 2021, indicating a decrease of 17.5%[101] Comprehensive Income and Losses - Other comprehensive income (loss) after tax for the three months ended September 30, 2022, was a loss of $1,023 million, compared to a loss of $115 million in the same period of 2021[22] - The balance of accumulated other comprehensive income (loss) was $(1,986) million as of September 30, 2022[25] - The company experienced a total change in accumulated other comprehensive income (loss) of $(1,295) million before tax, with an after-tax amount of $(1,023) million for the three months ended September 30, 2022[196] Shareholder Activities - The company declared dividends of $0.20 per share for the three months ended September 30, 2022, an increase from $0.165 per share in the same period of 2021[181] - The total shares repurchased during the nine months ended September 30, 2022, amounted to 4,202,516 shares, with a total payment of $250 million for the repurchase executed on June 21, 2022[185] - The company’s share repurchase authorization was increased by $500 million on April 28, 2022, with the authorization set to expire on June 30, 2023[183] Derivatives and Fair Value - The company utilized derivatives primarily to hedge exposure to interest rate risk, with a total notional amount of $19,370 million for interest rate contracts as of September 30, 2022[113] - The total fair value of derivatives as of September 30, 2022, was $607 million in assets and $490 million in liabilities[113] - The fair value of the Company's FIA contracts is also classified as Level 3 liabilities, calculated based on actuarial and capital market assumptions[138] Credit Losses and Impairments - The allowance for credit losses on available-for-sale fixed maturity securities as of September 30, 2022, was $39 million, compared to $58 million as of January 1, indicating a reduction of 32.8%[75] - The company recognized a loss of $523 million related to discontinued operations, which included a $302 million write-down of DAC/VOBA and a $221 million premium deficiency reserve[61] - For the nine months ended September 30, 2022, the provision for expected credit losses was $13 million, compared to $15 million for the year ended December 31, 2021[99] Market Conditions and Future Outlook - The increase in unrealized losses was attributed to materially higher interest rates across the yield curve, impacting the overall portfolio performance[81] - The overall performance indicates a challenging market environment with significant fluctuations in asset values[147] - Future outlook includes a focus on stabilizing investment income and managing risks associated with market volatility[148] Tax and Compliance - The effective tax rate for the three months ended September 30, 2022 was 31.7%, significantly higher than the statutory rate of 21% due to dividends received deduction and tax credits[203] - The company participated in the IRS Compliance Assurance Process for tax years 2020 through 2022, indicating ongoing compliance efforts[209] - The company is currently evaluating the applicability of the corporate alternative minimum tax as per the Inflation Reduction Act signed into law in August 2022[205]