Voya Financial Q1 Earnings Top Estimates, Revenues Fall Y/Y

Core Insights - Voya Financial, Inc. (VOYA) reported first-quarter 2025 adjusted operating earnings of $2.15 per share, exceeding the Zacks Consensus Estimate by 35.2% and reflecting a year-over-year increase of 14.4% [1] Financial Performance - Total revenues for the quarter were nearly $2 billion, a decrease of 4% year over year [2] - Net investment income rose by 5.9% year over year to $560 million, while fee income increased by 11.1% to $570 million [2] - Premiums totaled $737 million, down 7.9% from the previous year [2] - Total benefits and expenses were $1.8 billion, up 1.8% year over year [2] Client Assets and Growth - As of March 31, 2025, total client assets reached $694 billion, marking a 21% increase year over year, driven by assets from OneAmerica and positive capital markets [3] Segment Performance - Wealth Solutions reported adjusted operating earnings of $207 million, an increase of 11.3% year over year, attributed to the acquisition from OneAmerica and positive capital markets [4] - Health Solutions experienced a pre-tax adjusted operating income of $46 million, down 22% year over year, impacted by lower underwriting gains and strategic investments [5] - Investment Management posted pre-tax adjusted operating earnings of $41 million, a decline of 2.4% year over year, despite net inflows of $7.7 billion, representing organic growth of 2.5% for the quarter [6] Financial Position - Voya Financial ended the quarter with cash and cash equivalents of $1.4 billion, a 49.3% increase year over year [8] - Total investments were $35 billion, down 4.3% year over year, while long-term debt was $2.1 billion, up 0.2% from the end of 2024 [8] - Book value per share (excluding AOCI) was $61.31, reflecting a 5.4% year-over-year increase [9] Capital Management - In 2024, Voya Financial returned $43 million of excess capital to shareholders and retired $400 million of Senior Notes [10] - As of March 31, 2025, the company had a remaining share repurchase authorization of $150 million and excess capital of about $150 million [10]