Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Corporate Update (December 2024)
7 slides from Voya Financial's corporate update, Dec 9, 2024
Slide 1: Supplemental Stop Loss Slides
1Information contained herein is proprietary, confidential and non-public and is not for public release. Supplemental Stop Loss Slides Voya Financial December 9, 2024
Slide 2: Key messages
Key messages Loss ratio for January 2024 Stop Loss policy year expected to be between 90-105%, as a result of claims experience through November 2024 Higher premium rates with focus on margin over in-force premium growth expected to meaningfully improve loss ratio in 2025 and lower annualized in-for
Slide 3: Key drivers of 2024 Stop Loss block developing unfavorable to expectations
❑ January 2024 book priced too low. Significantly favorable January 2022 and early experience for January 2023 impacted 2024 pricing ❑ Pricing decisions on January 2024 policy year led to significantly higher growth, relative to historical trends ❑ Increased claim frequency for 2024 policy year obse
Slide 4: Focus on improving margin over premium growth
12% 17% 20-24% Jan '24 Non Jan '24 Jan '25 Expected Significant premium rate increases on January 2025 renewal business, with greater increases on underperforming cases1 Focus on improving margin over premium growth 1. Voya assumes first dollar trend to be 8%, 8%, and 9% for January 2024, Non-Januar
Slide 5: Expect loss ratios for Stop Loss in 2025 to meaningfully improve from 2024
Expect loss ratios for Stop Loss in 2025 to meaningfully improve from 2024 1. 2025 loss ratio for Stop Loss expected to be above long-term target of 77-80%. 2. Chart not to scale. 5 Expected 2024 Loss Ratio Net premium rate increase, less expected increase in medical claims cost in 2025 Improved Ris
Slide 6: Updated Stop Loss considerations
Updated Stop Loss considerations 6 Metric As of 9/30/24 As of 11/30/24 Earnings sensitivity from changes in loss ratio1 1% change in loss ratio for Stop Loss +/- $15M 4Q’24 Health Solutions net underwriting gain2 $180M-$220M $(85)M-$140M Estimated loss ratio for January 2024 policy year 86% 90-105%
Slide 7: Forward-Looking and Other Cautionary Statements
Forward-Looking and Other Cautionary Statements 7 These interim estimates incorporate projections of future claims based on historical known claims, involve the exercise of considerable judgment, and are subject to further adjustment based on additional claims experience after November 30, 2024. As