Voya Financial(VOYA) - 2025 Q3 - Quarterly Results

Financial Performance - Voya Financial reported Adjusted Operating Earnings Before Income Taxes for the quarter, which is a key measure for evaluating business performance [4]. - The company emphasized the importance of Adjusted Operating Revenues, which are calculated by adjusting Total Revenues for specific items [6]. - Adjusted Operating Return on Common Equity excluding AOCI is highlighted as a measure of returns for common shareholders, excluding variable components due to interest rate changes [11]. - The company noted that net revenue is derived from investment spread, fee-based margin, and net underwriting gain or loss, providing insights into revenue growth and margin expansion [11]. - Voya Financial's Adjusted Operating Margin is defined as Adjusted Operating Earnings Before Income Taxes divided by net revenue, indicating operational efficiency [11]. - The report includes a reconciliation of Adjusted Operating Earnings Before Income Taxes to the U.S. GAAP measure, Income (loss) before income taxes, for clarity [5]. - The company reported significant adjustments in operating benefits and expenses, reflecting changes in market risk benefits and other non-recurring items [8]. - Voya Financial's analysis of sources of earnings includes net investment income and fee-based margins, which are critical for understanding performance drivers [9]. - Future outlook includes continued focus on market expansion and potential strategic acquisitions to enhance growth [11]. Revenue and Income - Net income available to common shareholders for Q3 2025 was $176 million, up from $162 million in Q2 2025, and $139 million in Q1 2025 [12]. - Adjusted operating earnings before income taxes for Q3 2025 were $290 million, compared to $289 million in Q2 2025 and $232 million in Q1 2025 [14]. - Total revenues for Q3 2025 reached $2,128 million, an increase from $1,981 million in Q2 2025 and $1,969 million in Q1 2025 [13]. - Net investment income for Q3 2025 was $583 million, slightly down from $584 million in Q2 2025 but up from $560 million in Q1 2025 [13]. - Fee income for Q3 2025 increased to $616 million, compared to $577 million in Q2 2025 and $570 million in Q1 2025 [13]. - Premiums collected in Q3 2025 were $719 million, consistent with $718 million in Q2 2025 but down from $737 million in Q1 2025 [13]. - The effective tax rate for Q3 2025 was 17.8%, up from 16.9% in Q2 2025 [12]. - Total cash returned to common shareholders in Q3 2025 was $123 million, including $80 million in share repurchases and $43 million in dividends [12]. Assets and Liabilities - Total assets as of September 30, 2025, reached $177,448 million, up from $166,933 million as of September 30, 2024, indicating a growth of approximately 6% [17]. - Total liabilities as of September 30, 2025, were $170,365 million, an increase from $160,351 million as of September 30, 2024, representing a rise of about 6% [17]. - Total shareholders' equity as of September 30, 2025, was $6,862 million, up from $6,384 million as of September 30, 2024, reflecting an increase of about 7% [17]. - Total Financial Debt as of September 30, 2025, is $2,104 million, a decrease from $2,502 million as of December 31, 2024, representing a reduction of approximately 16% [19]. - The Debt-to-Capital ratio improved to 29.8% as of September 30, 2025, down from 38.5% as of December 31, 2024, indicating enhanced capital structure [19]. Client Assets and Management - Total Assets Under Management (AUM) and Assets Under Administration (AUA) reached $1,088,624 million as of September 30, 2025, with a significant contribution from Retirement AUM of $306,558 million [20]. - Client Assets reached $784,821 million as of September 30, 2025, an increase from $612,205 million as of December 31, 2024, representing a growth of approximately 28% [22]. - Total Client Assets (AUM) reached $366.3 billion as of September 30, 2025, up from $340.5 billion a year ago, representing a 7.6% increase [27]. - Institutional AUM increased to $173.4 billion, with net inflows of $3.56 billion in the third quarter of 2025, compared to net inflows of $1.77 billion in the same period last year [28]. - Retail AUM remained stable at $156.4 billion, with net flows of $317 million in Q3 2025, showing a slight increase from $2.06 billion in Q3 2024 [28]. Segment Performance - Adjusted operating earnings before income taxes for the Retirement segment reached $913 million for the twelve months ended September 30, 2025, up from $758 million a year ago, reflecting a 20.5% increase [39]. - The adjusted return on capital for the Retirement segment was 21.3% for the three months ended September 30, 2025, compared to 19.2% in the same quarter last year [39]. - The adjusted operating earnings for the Employee Benefits segment were $47 million for the three months ended September 30, 2025, significantly lower than $147 million in the same quarter last year [39]. - The adjusted return on capital for the Investment Management segment was 20.1% for the three months ended September 30, 2025, compared to 18.1% in the same quarter last year [39]. Investment Performance - Gross investment income for the three months ended September 30, 2025, was $527 million, with an annualized earned rate of 5.6% [41]. - Alternative investment income for the three months ended September 30, 2025, was $60 million, an increase from $26 million in the same period last year, representing a 130.8% year-over-year growth [43]. - The long-term expected return for alternative investments and investment capital is projected at 9% annually [43]. Adjusted Operating Metrics - The adjusted operating margin for the trailing twelve months (TTM) was 28.5%, up from 28.0% in the previous quarter [26]. - The adjusted operating return on common equity for the twelve months ended September 30, 2025, was 12.8%, up from 11.3% in the previous quarter [49]. - Total adjusted operating revenues for Q3 2025 reached $1,942 million, a 3% increase from $1,900 million in Q2 2025 [47]. - Total benefits and expenses for Q3 2025 were $1,821 million, compared to $1,793 million in Q2 2025, reflecting a 1.6% increase [47].