Voya Financial(US:VOYA)2025-05-08 20:18Financial Performance - Total revenues for Q1 2025 were $1,969 million, a decrease of 4% compared to $2,051 million in Q1 2024[23]. - Net income available to Voya Financial, Inc.'s common shareholders for Q1 2025 was $139 million, down 41% from $234 million in Q1 2024[23]. - Basic earnings per share for Q1 2025 were $1.45, compared to $2.29 in Q1 2024, reflecting a 36.8% decline[23]. - Comprehensive income attributable to Voya Financial, Inc. for Q1 2025 was $437 million, compared to $182 million in Q1 2024, indicating a significant increase[25]. - The company reported a net income of $251 million for the three months ended March 31, 2024, compared to a net income of $156 million for the same period in 2025, reflecting a decrease of 38.0%[30]. - The total comprehensive income for the three months ended March 31, 2024, was $212 million, while it was $437 million for the same period in 2025, indicating a decrease of 51.5%[30]. - Cash flows from operating activities showed a net outflow of $179 million in Q1 2025, contrasting with a net inflow of $231 million in Q1 2024[34]. - The company reported an income before income taxes of $173 million for Q1 2025, down from $288 million in Q1 2024, representing a decline of approximately 40%[144]. - The effective tax rate for the three months ended March 31, 2025, was 12.7%, compared to (0.3)% for the same period in 2024[164][165]. Assets and Liabilities - Total assets as of March 31, 2025, were $163,950 million, slightly up from $163,889 million as of December 31, 2024[19]. - Total liabilities decreased to $157,589 million as of March 31, 2025, from $157,882 million as of December 31, 2024[21]. - The total amount of selling expenses will be disclosed in annual reporting periods as per the new requirements from ASU 2024-03[46]. - The total cash and cash equivalents, including cash in CIEs, decreased by $504 million in Q1 2025, compared to an increase of $58 million in Q1 2024[34]. - The total liability for future policy benefits as of March 31, 2025, is $9.214 billion, a decrease from $9.332 billion as of December 31, 2024[124]. Investment and Income - The company reported net investment income of $560 million for Q1 2025, an increase from $529 million in Q1 2024[23]. - The gross investment income for the three months ended March 31, 2025, was $582 million, compared to $546 million for the same period in 2024, showing an increase of 6.6%[74]. - The company recognized $1 million in net gains from fixed maturities available-for-sale for the three months ended March 31, 2025, compared to a loss of $20 million in 2024[75]. - The provision for expected credit losses increased to $32 million for the three months ended March 31, 2025, up from $27 million in the previous period, reflecting an increase of 18.5%[72]. - The company had $16 million of commercial mortgage loans in non-accrual status as of March 31, 2025, down from $26 million at the end of 2024, indicating a decrease of 38.5%[73]. Acquisitions and Growth - The Company acquired the full-service retirement plan business of OneAmerica Financial for approximately $50 million in cash and contingent consideration of up to $160 million payable in 2026[36]. - The Company acquired fixed maturities worth approximately $1.4 billion in the first quarter of 2025 related to the OneAmerica Financial acquisition[47]. - The Company assumed contract owner account balances of $3.8 billion and $20.6 billion of separate account liabilities as part of the OneAmerica Financial acquisition[130]. - The Value of Business Acquired (VOBA) increased significantly to $752 million as of March 31, 2025, compared to $376 million as of December 31, 2024, indicating a growth of 100%[120]. Shareholder Information - Voya Financial paid dividends of $43 million on common stock in Q1 2025, slightly up from $41 million in Q1 2024[34]. - The company declared dividends of $0.45 per share for the three months ended March 31, 2025, an increase of 12.5% from $0.40 per share in 2024[153]. - As of March 31, 2025, the total number of outstanding common shares was 96.2 million, a decrease from 102.9 million as of January 1, 2024[153]. - The company had an aggregate amount of $761 million remaining under its share repurchase authorization as of March 31, 2025[155]. - The company repurchased 2,445,386 shares of common stock for a total payment of $172 million during the three months ended March 31, 2024[156]. Regulatory and Compliance - The Company is in the process of finalizing disclosures required by ASU 2023-09 for annual disclosures in the Annual Report for the year ending December 31, 2025[43]. - The Company adopted ASU 2024-01 on January 1, 2025, with no impact on its financial condition or results of operations[42]. - The Company engages in securities lending, requiring initial collateral at a rate of at least 102% of the market value of loaned securities[51]. - The Company’s financial statements are prepared in accordance with U.S. GAAP and are unaudited, reflecting necessary adjustments for fair presentation[40]. Market Performance - The total unrealized capital losses for available-for-sale fixed maturities as of March 31, 2025, were $2,524 million, compared to $2,846 million on December 31, 2024, reflecting a reduction of 11.3%[56]. - The average duration of the Company's fixed maturities portfolio, including securities pledged, is between 6 and 6.5 years as of March 31, 2025[56]. - The Company reported total fixed maturities, including pledged securities, of $29.225 billion as of March 31, 2025, with $26.361 billion classified under Level 2[90]. - The fair value of the Company's total assets was $130.740 billion as of March 31, 2025, with $95.887 billion classified under Level 1[90]. Risk Management - The Company manages its commercial mortgage loan portfolio by lending only up to 75% of the estimated fair value of the underlying real estate[61]. - Loan-to-value (LTV) and debt service coverage (DSC) ratios are utilized to assess the risk and quality of mortgage loans[62]. - The Company does not intend to sell investments with unrealized losses, indicating a long-term holding strategy[57]. - The allowance for credit losses increased to $29 million as of March 31, 2025, up from $24 million at the end of 2024, indicating a rise of 20.8%[72]. Other Financial Metrics - Adjusted operating earnings before income taxes for Q1 2025 were $232 million, compared to $224 million in Q1 2024, reflecting a growth of approximately 3.6%[144]. - Adjusted operating revenues for Q1 2025 were $1,888 million, up from $1,863 million in Q1 2024, indicating an increase of about 1.3%[144]. - The total accumulated other comprehensive income (loss) as of March 31, 2025, was $(2,181) million, an improvement from $(2,469) million in 2024[159]. - The Company had total debt of $2.1 billion as of March 31, 2025, with compliance to its debt covenants[169].