Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Q3 2024 Earnings Presentation
28 slides from Voya Financial's earnings presentation, Nov 5, 2024
Slide 1: Third Quarter 2024 Investor Presentation
Voya Financial Third Quarter 2024 Investor Presentation Information contained herein is proprietary, confidential and non-public and is not for public release. 1
Slide 2: Forward-Looking and Other Cautionary Statements
Forward-Looking and Other Cautionary Statements 2
Slide 3: Key Themes & Executing our Strategy
Key Themes & Executing our Strategy Information contained herein is proprietary, confidential and non-public and is not for public release. 3
Slide 4: Key Themes
VOYA. Plan. Invest. Protect. Key Themes @ Strong business results in Wealth Solutions and Investment Management @ Actively addressing Stop Loss book to materially improve margins OneAmerica acquisition adds earnings, scale and new capabilities while advancing growth strategy On track to return $0.8
Slide 5: On Track to Achieve Revenue, Margin, ROE and Return of Capital Targets
On Track to Achieve Revenue, Margin, ROE and Return of Capital Targets Adjusted Operating Excess Capital Net Revenue Adjusted Operating Adjusted Operating EPS1 Generation Growth (TTM)2,3 Margin (TTM)2,3 ROE (TTM)2,3 $1.90 $0.2B 2.5% 31.0% 14.2% 5
Slide 6: Key Near Term Execution Priorities
Key Near Term Execution Priorities ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ 6
Slide 7: OneAmerica Advances Workplace Solutions' Growth Strategy
OneAmerica Advances Workplace Solutions’ Growth Strategy ▪ Strategically ▪ Important ▪ ▪ Financially ▪ o Attractive o ▪ 7
Slide 8: Building Blocks to Higher Excess Capital Generation in 2025
Building Blocks to Higher Excess Capital Generation in 2025 8
Slide 9: Business Segment Performance & Financial Highlights
Business Segment Performance & Financial Highlights Information contained herein is proprietary, confidential and non-public and is not for public release. 9
Slide 10: Third Quarter Financial Results
Third Quarter Financial Results 3Q’23 3Q’24 Drivers Adjusted Operating EPS $1.74 $1.90 Adjusted Operating Earnings $189 $190 Net Income $248 $98 Capital Generation $0.2B $0.2B 10
Slide 11: Health Solutions: Stop Loss
Health Solutions: Stop Loss Loss Ratios for Stop Loss – Policy Year1 View ❑ ❑ 11
Slide 12: Stop Loss: Executing Plan to Significantly Improve Margins
Stop Loss: Executing Plan to Significantly Improve Margins ❑ ❑ ❑ ❑ 12
Slide 13: Health Solutions
Health Solutions Adjusted Operating Earnings Key Drivers of Earnings ▪ ▪ ▪ 13
Slide 14: Wealth Solutions
Wealth Solutions Participant Accounts Exceed 7 Million Full Service – Client Assets Spread-Based Fee-Based $155 $179 $133 $129 $154 $112 $31 $33 $33 $33 $31 $30 2019 2020 2021 2022 2023 3Q'24 TTM ▪ 14
Slide 15: Wealth Solutions
Wealth Solutions Adjusted Operating Earnings Key Drivers of Earnings ▪ o ▪ ▪ o 15
Slide 16: Investment Management
Investment Management Assets Under Management $341B Diversified Asset Manager 16
Slide 17: Investment Management
Investment Management Adjusted Operating Earnings Key Drivers of Earnings ▪ o ▪ $174 ▪ $49 $55 17
Slide 18: Strong Cash Flow Generation and Disciplined Capital Return
Strong Cash Flow Generation and Disciplined Capital Return 3Q’24 TTM Capital Generation In-Line with 90%+ Target3 Highlights ▪ o o o o ▪ ▪ o o ▪ ▪ 18
Slide 19: Key Themes
VOYA. Plan. Invest. Protect. Key Themes @ Strong business results in Wealth Solutions and Investment Management @ Actively addressing Stop Loss book to materially improve margins OneAmerica acquisition adds earnings, scale and new capabilities while advancing growth strategy On track to return $0.8
Slide 20: Appendix
VOYA. Plan. Invest. Protect. Appendix Information contained herein is proprietary, confidential and non-public and is not for public release. 20
Slide 21: 3Q'24 Adjusted Operating to Net Income Walk
3Q’24 Adjusted Operating to Net Income Walk 21
Slide 22: Analyst Modeling Considerations
Analyst Modeling Considerations Alt. Income & ■ Prepayment Wealth ■ Solutions ■ Health ■ Solutions ■ Investment ■ Management ■ ■ Corporate ■ Wealth Solutions Earnings Health Solutions Earnings Investment Management Earnings Investment Management Margin Sensitivities3 22
Slide 23: Seasonality
Seasonality Wealth Health IM Corporate & Other All Segments ▪ ▪ ▪ ▪ ▪ 1Q ▪ ▪ ▪ ▪ ▪ 2Q ▪ ▪ ▪ ▪ 3Q ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 4Q ▪ ▪ ▪ 23
Slide 24: 3Q'24 Notable Items Impacts
3Q’24 Notable Items Impacts 24
Slide 25: Investment Metrics
Investment Metrics 93 92 94 84 88 80 76 78 71 67 68 68 62 53 54 40 40 43 16 11 Equity Multi-Asset Fixed Income & Growth Total Voya IM Income 1 Year 3 Year 5 Year 10 Year 25
Slide 26: Alternatives Portfolio Has Delivered Favorable Investment Performance Over Time
Alternatives Portfolio Has Delivered Favorable Investment Performance Over Time Calendar Year Net Returns1,2,3 (%) GA Alt Portfolio of $1.64 Billion As of 9/30/24 44% 17% 16% 15% 12% 12% 11% 12% 7% 5% 5% 2% 3% 26
Slide 27: Well-Diversified Investment Portfolio Built for Through-the-Cycle Risk Adjusted Returns
Well-Diversified Investment Portfolio Built for Through-the-Cycle Risk Adjusted Returns $37 Billion General Account Investment Portfolio1 Fixed Maturity NAIC Rating Distribution 95%+ Investment Grade2 1% 3% 1A (AAA) 11% 1B-G (AA-A) 2A (BBB+) 17% 2B (BBB) 2C (BBB-) 3 (BB) 13% 31% 4-6 (B or lower) 27
Slide 28: Well Diversified and High-Quality CML Portfolio
Well Diversified and High-Quality CML Portfolio Highly Rated Portfolio Voya Underwritten Loan to Value (LTV)1 CM1 CM2 CM3 >CM3 Debt Service Loan to Value (LTV) At Book Voya Property Type Coverage Ratio2 Funding Member Value % Underwritten LTV (DSCR) Appraisal Institute (MAI) ▪ ▪ o o o ▪ ▪ 28