UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 —————————————————————— FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35897 Voya Financial, Inc. | (Exact name of registrant as specified in its charter) | | | | --- | --- | --- | | Delaware ...

Financial Data and Key Metrics Changes - Voya Financial reported adjusted operating EPS of $1.44 for Q1 2023, down from $1.55 in the prior year quarter, but adjusted operating earnings per share excluding notable impacts was $1.69 [13] - GAAP net income for the first quarter was $69 million, which included approximately $50 million of cash impacts from the acquisition of Benefitfocus [13] - The company concluded the quarter with approximately $500 million of excess capital and a free cash flow conversion rate of over 90% [8][21] Business Line Data and Key Metrics Changes - Wealth Solutions saw full service recurring deposits grow nearly 10%, with adjusted operating earnings of $132 million in Q1 2023 [15][16] - Health Solutions achieved annualized enforced premiums and fees growth of 22%, with adjusted operating earnings of $94 million [8][18] - Investment Management experienced net outflows largely due to challenging market conditions, but total assets under management increased nearly 30% year-over-year [19][20] Market Data and Key Metrics Changes - The company reported that full service recurring deposits grew 9.6% on a trailing 12-month basis, with expectations for full year deposit growth to exceed 10% [16] - Annualized enforced premiums in Health Solutions grew 15% year-over-year, exceeding the long-term target of 7% to 10% [17][18] - Investment Management's organic growth is expected to be between 2% to 4% in 2023, despite experiencing negative flows in the first quarter [19][44] Company Strategy and Development Direction - Voya Financial aims to achieve a 12% to 17% annual compound growth in EPS over the three-year period ending in 2024, focusing on executing its plans and integrating acquired businesses [7][25] - The company plans to increase its dividend yield to approximately 2% in the second half of 2023, subject to board approval, and intends to resume share repurchases in Q2 2023 [8][23] - Recent acquisitions, including Benefitfocus and AllianzGI, are expected to drive revenue and earnings growth, enhancing Voya's market position [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capital generation capabilities, with a focus on maintaining a competitive dividend and managing expenses effectively [28][49] - The company remains optimistic about its growth trajectory, despite macroeconomic challenges, and is committed to delivering strong returns for shareholders [25][38] - Management highlighted the importance of addressing clients' growing health, wealth, and investment needs while maintaining a strong corporate culture [12] Other Important Information - Voya Financial has been recognized as one of the world's most ethical companies for the 10th consecutive year [12] - The company has generated $5.7 billion of capital since 2018, with a significant portion deployed in share repurchases [24] Q&A Session Summary Question: What conditions would prevent the resumption of buybacks? - Management indicated confidence in capital generation and plans to resume share repurchases in Q2, contingent on constructive market conditions [26][27] Question: What drove elevated surrenders in the full service business? - Management noted that a large case departure and higher participant surrenders impacted full service inflows, but expressed confidence in the long-term flow story [29][31] Question: Can you discuss the investment management pipeline? - Management affirmed a strong pipeline for investment management, with expectations for organic growth of 2% to 4% in 2023, despite some challenges in institutional flows [33][34] Question: How sustainable is the strong capital generation? - Management expressed confidence in their capital generation capabilities, supported by a capital-light business model and recent interest expense savings [36][38] Question: What drove the uptick in expenses this quarter? - Management explained that seasonal expenses and increased growth-related costs contributed to the uptick, but they expect a decline in expenses in future periods [40][41] Question: What is the outlook for the benefits ratio in the health business? - Management indicated that the strong first quarter experience would influence the full year outlook, but they expect the benefits ratio to revert to long-term targets [55][56] Question: How accurate are the LTVs in the commercial loan portfolio? - Management stated that they maintain a high-quality portfolio with rigorous internal underwriting processes, ensuring confidence in their LTV assessments [51][52]

Investment Management - As of December 31, 2022, the Investment Management segment managed $258.5 billion for third-party institutional and individual investors, with $99.7 billion in private and alternative asset solutions[106] - The Investment Management segment generated adjusted operating earnings before income taxes of $158 million for the year ended December 31, 2022[110] - Total assets under management (AUM) as of December 31, 2022, were $321.4 billion, with net inflows of $1,073.9 million for the year[119] - The fixed income platform managed $138.3 billion in public assets, with net outflows of $2,218.4 million, while private fixed income managed $83.3 billion with net inflows of $5,017.8 million[119] - The equities platform had $83.4 billion in AUM, experiencing net outflows of $1,214.5 million[119] - The alternatives platform managed $16.4 billion, with net outflows of $511.0 million[119] - The retail client segment accounted for $121.9 billion in AUM, with net outflows of $2,600.8 million, while the institutional client segment had $161.5 billion in AUM with net inflows of $3,674.7 million[119] - The AllianzGI Transaction completed on July 25, 2022, enhanced the international scale and distribution of investment products[107] - The company serves approximately 336 institutional clients, representing $161.5 billion of AUM primarily in separately managed accounts and collective investment trusts[121] Employee and Workforce - As of December 31, 2022, Voya had approximately 6,100 employees, with 99% being full-time and U.S.-based[125] - The acquisition of Benefitfocus on January 24, 2023, increased the employee base by approximately 1,100, with about half located in Charleston, SC[126] - Females and people of color represent 65% of the workforce, with 3% self-identifying as members of the disabled/special needs community[127] - The Executive Committee is 50% diverse, while the Board of Directors is 64% diverse[128] - Approximately 58% of the workforce is fully remote, and 41% are hybrid workers[125] - Voya maintains robust learning programs through its Learning Center to support employee development[130] - The Total Rewards offering includes competitive compensation, benefits, and development opportunities to attract and retain talent[131] Regulatory Compliance and Cybersecurity - The company is committed to conducting business in an ethically, economically, socially, and environmentally responsible manner[133] - As of December 31, 2022, the Total Adjusted Capital of each insurance subsidiary exceeded statutory minimum Risk-Based Capital levels[153] - Voya does not anticipate regulatory action as a result of its 2022 IRIS ratio results[156] - The NAIC adopted the Insurance Data Security Model Law to enhance cybersecurity measures for insurers, with several states already implementing it[159] - The NYDFS has established comprehensive cybersecurity requirements for financial services companies, mandating strong cybersecurity programs[159] - In 2023, cybersecurity risk management will remain a significant focus for governments and regulatory bodies[160] - The SEC and FINRA regulate the company's variable insurance and mutual fund products, which are classified as securities[169] - The DOL's revised fiduciary interpretation and prohibited transaction exemption may not materially impact the company, despite potential future amendments[166] Data Privacy and Environmental Compliance - The company is subject to various federal and state regulations, including those related to anti-money laundering and financial transparency under the USA PATRIOT Act[179] - Compliance with privacy laws, including the Gramm-Leach-Bliley Act, is required to protect personal information and ensure data security[184] - The company must adhere to state cybersecurity standards, including those mandated by the NYDFS and the NAIC Model Law[185] - The California Consumer Privacy Act (CCPA) established a privacy framework effective January 1, 2020, with potential statutory damages for non-compliance[186] - The California Privacy Rights Act (CPRA) was approved in November 2020 to amend the CCPA and create a new data protection authority[188] - The General Data Protection Regulation (GDPR) became effective on May 25, 2018, imposing strict requirements on handling personal data of EU residents[190] - The company is subject to the Health Insurance Portability and Accountability Act (HIPAA), requiring safeguards for protected health information[189] - The company conducts environmental assessments prior to closing new commercial mortgage loans to minimize unexpected environmental liabilities[195] - The company may face increased operational and compliance costs due to evolving data privacy laws and regulations[187] - The company is required to implement effective programs to detect and prevent identity theft as per new regulations[187] - The company may be liable for environmental cleanup costs under federal and state laws, impacting the valuation of commercial mortgage loans[194] Financial Reporting - The company files periodic reports with the SEC, which can be accessed through the SEC's website[197] - The company provides access to financial information and reports on its investor relations website without charge[198]