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NEW YORK, October 31, 2023–(BUSINESS WIRE)–Voya Financial, Inc. (NYSE: VOYA), a leading investment, wealth control, and healthcare company, announced its third quarter 2023 monetary results:
Net earnings available to regular shareholders are $2. 29 per diluted share.
Adjusted after-tax income1 of $1. 74 per diluted percentage (EPS), reflecting the continued benefits of Voya’s diversified earnings streams and strong margins.
Strong money generation and excess return to balanced capital:
Approximately $300 million of excess capital deployed in the third quarter of 2023, totaling $140 million in debt repurchases; approximately $50 million to acquire a stake in a joint venture in India; and $96 million in percentage buybacks and non-unusual percentage dividends.
Approximately $800 million of capital generated in the trailing 12 months (TTM) ended September 30, 2023.
As of September 30, 2023, Voya had approximately $0. 4 billion of excess capital, reflecting capital generation representing more than 90% of the after-tax adjusted operating revenue source in the third quarter of 2023 and for the TTM ended September 30, 2023.
“In the third quarter of 2023, we continued to execute on our strategic priorities and generated adjusted after-tax EPS of $1. 74 consistent with diluted equity, reflecting the advantages of our diversified earnings streams and prudent expense management,” said Heather Lavallée. , CEO of Voya Financial. ” During the quarter, we strengthened our advertising momentum in each of our businesses; We remained very focused on margins; and deployed more surplus capital generated from our core loose cash business. Despite macroeconomic headwinds, we continue to put our efforts into action. Our strategy and, through our strong relationships and commitment to consumers, we are confident in our ability to continue to drive advertising momentum, while largely managing expenses and using capital wisely. This gives us confidence in our Investor Day Target of EPS expansion of 12% to 17% over the consistent three years to end in 2024.
“Our achievements are based on our goal and vision, which we make a reality by fulfilling the wishes of our customers, as well as supporting our colleagues and communities. For example, in the third quarter, we expanded our critical illness and destiny reversals insurance. Our products will offer new benefits and coverage focused on intellectual health; We have gained greater popularity as the most productive position to work for; and Voya workers have made a positive impact on our communities by raising more than $1. 5 million for 1,900 charitable causes. through our annual worker giving campaign,” Lavallée added.
________________________
1 This press release includes certain non-GAAP monetary measures, adding adjusted operating income. Further information on notable portions of the Company’s monetary results, non-GAAP measures and reconciliations to the most comparable US GAAP measures can be found in the reconciliation tables on the At the End of this Press Release page and in the “Non-GAAP Financial Measures” section of the Company’s Quarterly Investor Supplement, Available in investisseurs. voya. com.
Consolidated results
Net source of income available to regular shareholders for the third quarter of 2023: $248 million, or $2. 29 per diluted share, compared to $166 million, or $1. 57 per diluted share, in the third quarter of 2022. It is primarily due to gains on discontinued or consistent operations, net investment, and lower acquisition and integration costs, partially offset by a decrease adjusted to or consistent with the after-tax source of income.
Adjusted or consistent with after-tax source of income for the third quarter of 2023 $189 million, or $1. 74 consistent with diluted interest, compared to $210 million, or $1. 97 consistent with diluted interest, in the third quarter of 2022. The reduction is largely due to the minimization of the net technical result, which was partially offset by an increase consistent with the source of fee income.
Line of Business Results
Wealth Solutions
Wealth Solutions’ adjusted pre-tax operating income source for the third quarter of 2023 was $179 million, compared to $128 million in the same period last year. The accumulation was basically due to the most chosen investment income source as well as the favorable advantage. an impact of equity markets on commission-based spreads, partially offset by lower investment spreads.
For the TTM ended September 30, 2023, full-service recurring deposits increased 10. 2% to $14. 4 billion compared to the prior-year period, largely due to expanding enterprise markets. Total consumer assets as of September 30, 2023 were $510 billion. , an increase of 12% since September 30, 2022, due to expanding activity and higher levels of the stock market year-over-year.
Excluding notables, TTM net profit ended September 30, 2023 increased 1. 4% compared to the prior-year period, as superior spread-based profit more than offset a decline in fee-based margins. The adjusted operating margin for the TTM ended September 30, 2023, remarkably, was 37. 8%, compared to 37. 9% in the prior-year period.
Healthcare Solutions
Health Solutions’ adjusted pretax operating income source for the third quarter of 2023 was $53 million, up from $154 million in the year-ago era. This minimization is largely due to the fact that the previous year’s era benefited from exceptionally strong technical effects and a favorable adjustment of reserves.
Health Solutions annualized premiums and fees in effect for the third quarter of 2023 increased 21. 1% to $3. 3 billion compared to the prior-year period. This accumulation reflects the expansion across product lines, favorable retention and positive effect on the acquisition of Benefitfocus, which was completed in January 2023. Excluding Benefitfocus, annualized premiums and prevailing rates increased 14. 7% compared to the prior-year period.
Excluding notable items, net profit for TTM ended September 30, 2023 was higher by 35. 8% compared to the prior-year era due to the acquisition of Benefitfocus, premium expansion across product lines and a favorable overall loss ratio. (Excluding Benefitfocus, net sales, notable, greater than 17. 7 percent. ) Adjusted operating margin for TTM ended September 30, 2023, was 32. 2%, compared to 31. 2% in the prior year era.
Investment Management
Investment Management’s source of adjusted pre-tax operating income in the third quarter of 2023, Allianz’s non-controlling interest, was $49 million, compared to $38 million in the same period last year. This accumulation was largely due to a superior source of payments and commissions. proceeds from the Allianz Global Investors (AllianzGI) transaction, which closed in July 2022, and positive personal capital returns.
Investment Management recorded outflows (excluding divested transactions) of $8. 4 billion in the TTM ended September 30, 2023; positive retail flows and the resulting momentum from the company’s overseas distribution through AllianzGI were more than offset by macroeconomic headwinds impacting the industry and the cancellation of the company’s debt. former foreign distribution company.
Excluding notable items, TTM’s net source of earnings ended September 30, 2023 up 21. 8%, as additional gains from the AllianzGI transaction more than offset the effect of macroeconomic headwinds on capital and ongoing fees from the source of earnings, i. e. , retail. Adjusted operating margin for TTM ended September 30, 2023, excluding notables, was 25. 5%, compared to 26. 0% in the prior year period.
Complimentary call for financial information and results
More detailed monetary data will be found in the Company’s quarterly investor supplement, which will be found on Voya’s online investor relations page, investisseurs. voya. com. In addition, Voya will host a telephone convention on Wednesday, November 1, 2023 at 10:00 a. m. a. m. ET, to talk about the company’s third-quarter 2023 results. The call and slideshow can be accessed through the company’s online investor relations page on investisseurs. voya. com. A replay of the company’s investor relations call will be shown. online page, investisseurs. voya. com starting at 1 p. m. ET on November 1, 2023.
About Voya Financial
Voya Financial, Inc. (NYSE: VOYA), is a leading healthcare, wealth management and investment company with approximately 9,000 employees dedicated to Voya’s ambitious vision: paving the way to monetary confidence and a more fulfilling life. Through products, answers and technologies, Voya is helping its 14. 7 million individual, professional and institutional consumers be well-planned, well-invested and well-protected. Benefitfocus, a Voya company, expands the success of Voya’s benefits and savings offerings by providing benefits leadership roles to 16. 5 million individual worker subscribers across employers and health plan consumers. Certified as a “Great Place to Work” through the Great Place to Work® Institute, Voya is purpose-driven and committed to conducting business in a manner that is economically, ethically, socially and environmentally responsible. Voya has been identified as: one of the most ethical companies in the world through Ethisphere; member of the Bloomberg Gender Equality Index; and a “Best Place to Work for Disability Inclusion” based on the Disability Equality Index. For more information, travel. com. Follow Voya Financial on Facebook, LinkedIn and Instagram.
Forward-Looking Statements and Other Cautionary Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company undertakes no legal responsibility to revise or update such statements to reflect new information, upcoming events or adjustments in strategy. Forward-looking announcements include announcements related to long-term developments in our business or expectations related to our long-term monetary functionality and any announcements that do not represent past events. Forward-looking announcements use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan” and other words and terms of similar meaning when relating to a discussion of long-term operating or monetary matters. . perspectives. functionality. Actual effects, functionalities or occasions could possibly differ materially from those projected in any future projections due to, among other things, (i) general economic situations, that is, economic situations in our main markets, (ii) money market functionality, (iii) ) interest rates, (iv) frequency and severity of insured losses, (v) effects of natural or man-made disasters, added to pandemic occasions, (vi) degrees of mortality and morbidity, (vii) degrees of patience and languor, (viii) exchange rates, (ix) general competitive factors, (x) adjustments in legislation and regulations, such as those related to federal taxes, state insurance regulations and NAIC regulations and guidelines, (xi ) adjustments in government policies and/or regulatory authorities, (xii) our ability to effectively manage the separation of the life insurance businesses that we sold to Resolution Life US on January 4, 2021, and (xiii) our ability to make the expected benefits from the acquisitions, adding the transactions with AllianzGI and Benefitfocus. Factors that could cause actual effects to differ from those indicated in any forward-looking statements also include those described in “Risk Factors” and “Management’s Discussion and Analysis of Results of Operations and Financial Condition: Trends and Uncertainties. ” ” in our Annual Report on Form 10. -K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (“SEC”) on February 24, 2023 and in our Quarterly Report on Form 10-Q for the 3 months ended in September. 30. Array 2023, which will be filed with the SEC on or before November 9, 2023.
VOYA-IR VOYA-CF
Reconciliation of the net source of revenue (loss) to the adjusted percentage or consistent with the source of revenue and gain consistent with the percentage (diluted)
Three months ended
($ in millions, consistent with participation)
30/09/2023
30/09/2022
After Tax (1)
Per share
After Tax (1)
Per share
Net source of income (loss) for regular shareholders of Voya Financial, Inc.
Ps
248
Ps
2. 29
Ps
166
Ps
1,57
Less:
Net Investment (Losses) (2)
43
0,40
(7
)
(0,06
)
Income (loss) from discontinued operations or from discontinued operations through reinsurance or assignment (3)
38
0,35
(11
)
(0,10
)
Other settings
(21
)
(0,19
)
(26
)
(0,24
)
Adjusted Income
Ps
189
Ps
1,74
Ps
210
Ps
1,97
Less:
Alternative investment source of income and prepayment rate higher (lower) than long-term expectations, net of variable compensation and incentives
(23
)
(0,21
)
(74
)
(0,70
)
Other (4)
(13
)
(0,12
)
45
0,42
Adjusted Operating Source of Revenue Notable Items
Ps
224
Ps
2. 07
Ps
239
Ps
2. 24
(1) For the adjusted operating source of income, we apply a tax rate of 21% and adjust the deduction of dividends received, tax credits, nondeductible offsets, and other similar tax benefits and expenses to the adjusted operating source of income. investment gains, source of income (losses) from discontinued businesses, and other non-operating items, we apply a 21% tax rate and adjust similar tax benefits and expenses, adding adjustments to valuation tax provisions and similar effects to adjustments in tax legislation.
(2) Net investment gains come with a revaluation gain of $45 million on Voya India’s investment for the 3 months ended September 30, 2023. There is no source of income tax expense related to this gain.
(3) Income from discontinued business or to be reinsured or relinquished comes with one-time tax advantages of $92 million, similar to that of a business sold during the 3 months ended September 30, 2023.
(4) Includes adjustments to safe legal reserves and other reserves that are expected to be repeated at the same level.
Adjusted Operating Source of Revenue and Highlights
Three months ended September 30, 2023
(in millions)
Amounts That Include Notable Items
Variable Pay & Incentive Net Investment Income Source Above (Below) Expectations (1)
Other (2)
Notable Item Amounts
to
b
St
re = a – b – c
Adjusted Income
Wealth Solutions
Ps
179
Ps
(24
)
Ps
—
Ps
202
Healthcare Solutions
53
(2
)
(sixteen
)
71
Investment Management
63
(3
)
—
66
Enterprise
(52
)
—
—
(52
)
Adjusted operating source of income before source of income taxes, adding non-controlling interest in Allianz
242
(29
)
(sixteen
)
287
Less: Profit (loss) attributable to Allianz’s lack of control
14
—
—
14
Pre-tax adjusted operating source of income on the source of income
229
(29
)
(sixteen
)
273
Income Taxes (3)
39
(6
)
(3
)
49
Adjusted Operating Source of Income After Tax on Source of Income
Ps
189
Ps
(23
)
Ps
(13
)
Ps
224
Adjusted or consistent with the source of income consistent with the participation
1,74
(0,21
)
(0,12
)
2. 07
(1) The amount through which the source of investment income from select investments and prepayments exceeds or is below our long-term expectations, net of variable compensation and incentives. Long-term expectations for select investments are a 9% annual return and long-term expectations for prepayment fees are an annual contribution of 10 fund issuances to pull back, or approximately $9 million per quarter for Wealth Solutions.
(2) Includes adjustments to safe legal reserves and other reserves that are expected to be repeated at the same level.
(3) For adjusted operating income, we apply a tax rate of 21% and adjust the deduction for dividends received, tax credits, nondeductible offsets, and other similar taxes and expenses to adjusted operating income.
Net Income, Adjusted Operating Margin and Item Highlights
Twelve months ended September 30, 2023
(in millions)
Amounts That Include Notable Items
Variable Pay & Incentive Net Investment Income Source Above (Below) Expectations (1)
Other (2)
Notable Item Amounts
to
b
St
re = a – b – c
Net Income
Wealth Solutions
Ps
1 864
Ps
(121
)
Ps
—
Ps
1 985
Healthcare Solutions
1 137
(9
)
(sixteen
)
1 165
Investment Management
903
(9
)
—
912
Total Net Income
Ps
3 904
Ps
(139
)
Ps
(sixteen
)
Ps
4 061
Adjusted Margin
Wealth Solutions
33,8
%
(4,0
)%
—
37,8
%
Healthcare Solutions
30,6
%
(0,6
)%
(1. 0
)%
32. 2
%
Investment Management
24. 9
%
(0,6
)%
—
25,5
%
Adjusted operating margin, Corporate
30,8
%
(2. 4
)%
(0,2
)%
33. 4
%
(1) The amount through which the source of investment income from select investments and prepayments exceeds or is less than our long-term expectations. Long-term expectations for select investments have an annual return of 9% and long-term expectations for prepayment fees are an annual contribution of 10 overdue fund issuances, or approximately $9 million per quarter for Wealth Solutions.
(2) Includes adjustments to safe legal reserves and other reserves that are expected to be repeated at the same level.
Net Income, Adjusted Operating Margin and Item Highlights
Twelve months ended September 30, 2022
(in millions)
Quantities That Include Notable Items
Variable Pay & Incentive Net Investment Income Source Above (Below) Expectations (1)
Impacts of COVID-19
Other (2)
Notable Item Amounts
to
b
St
d
mi = a – b – c – d
Net Income
Wealth Solutions
Ps
2 015
Ps
57
Ps
—
Ps
—
Ps
1 958
Healthcare Solutions
848
7
(74
)
57
858
Investment Management
742
(8
)
—
—
749
Total Net Income
Ps
3 604
Ps
56
Ps
(74
)
Ps
57
Ps
3 565
Adjusted Margin
Wealth Solutions
39,6
%
1. 7
%
—
—
%
37,9
%
Healthcare Solutions
30. 3
%
0,5
%
(5,7
)%
4. 3
%
31. 2
%
Investment Management
25,5
%
(0,5
)%
—
—
26,0
%
Adjusted operating margin, Corporate
34,5
%
1. 1
%
(1,4
)%
1. 1
%
33,7
%
(1) The amount through which the source of investment income from select investments and prepayments exceeds or is less than our long-term expectations. Long-term expectations for select investments have an annual return of 9% and long-term expectations for prepayment fees are an annual contribution of 10 overdue fund issuances, or approximately $9 million per quarter for Wealth Solutions.
(2) Includes adjustments to other safe reserves that are expected to recur at the same level.
See the edition in businesswire. com: https://www. businesswire. com/news/home/20231031018956/en/
Contacts
Media Contact: Christopher Breslin212-309-8941Christopher. Breslin@voya. com
Investor Contact: Michael Katz212-309-8999IR@voya. com