Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Q1 2018 Earnings Presentation
22 slides from Voya Financial's earnings presentation, May 2, 2018
Slide 1: Voya Financial First Quarter 2018 Investor Presentation
Voya Financial First Quarter 2018 Investor Presentation May 2, 2018
Slide 2: Forward-Looking and Other Cautionary Statements
Forward-Looking and Other Cautionary Statements This presentation and the remarks made orally contain forward-looking statements. Forward-looking statements include statements relating to future developments in our business or expectations for our future financial performance and any statement not i
Slide 3: Agenda
Agenda 1. Key Themes and Strategic Priorities Rod Martin, Chairman and Chief Executive Officer 2. Business Segment Performance and Financial Highlights Mike Smith, Chief Financial Officer 3
Slide 4: Key Themes
Key Themes Adjusted Operating Total adjusted operating earnings grew by 12% year-over-year Earnings Growing Adjusted operating earnings1 for all business segments grew at At or Above targeted returns year-over-year Targeted Returns On track to close CBVA and Annuities sale by 2Q’18/3Q’18 Signi
Slide 5: Focus on Completing 2018 Priorities
Focus on Completing 2018 Priorities CBVA & Annuities Cost Savings Capital Initiatives Growth Transaction Carve out businesses to Generate $110 - $130 Complete $1 billion of Increase number of firms be divested from Voya million of annual cost share repurchases1 by and advisors selling saving
Slide 6: Recent Enterprise Accomplishments
Recent Enterprise Accomplishments Named one of Fortune’s World’s Joined first industry-neutral Bloomberg Fifth consecutive year as one of the Most Admired Companies in the Gender-Equality Index World’s Most Ethical Companies Securities and Asset Management Industry Named one of the 2018 Best Named o
Slide 7: Agenda
Agenda 1. Key Themes and Strategic Priorities Rod Martin, Chairman and Chief Executive Officer 2. Business Segment Performance and Financial Highlights Mike Smith, Chief Financial Officer 7
Slide 8: First Quarter 2018 Results – Financial Highlights
First Quarter 2018 Results – Financial Highlights After-tax Adjusted Operating Net Income Available to Common Earnings¹ Shareholders² $137 million or $446 million $0.77 per diluted share Includes: 1Q’18 Includes: 1Q’18 Deferred acquisition costs and value of $(0.31) Discontinued operations $429
Slide 9: Retirement – Leading Franchise Driving Long-Term Growth and Returns
Retirement – Leading Franchise Driving Long-Term Growth and Returns Adjusted Operating Earnings ($ millions)1 AUM ($ billions)3 Current Quarter TTM $138 $144 $608 $130 $135 $126 $544 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 Net Flows, $135 $150 $611 $280 $1,091 $(476) $(362) ($ millions) 1Q'17 1Q'18 Key Initia
Slide 10: Investment Management – Continued Strong Performance Across Multiple Investment Platforms and Distribution Channels
Investment Management – Continued Strong Performance Across Multiple Investment Platforms and Distribution Channels Adjusted Operating Earnings ($ millions)1 AUM ($ billions) Current Quarter TTM $213 $217 $222 $224 $222 $259 $131 $135 $140 $142 $141 $195 $82 $82 $82 $82 $82 1Q'17 2Q'17 3Q'17 4Q'17 1
Slide 11: Employee Benefits – High Return and Capital Generation Business
Employee Benefits – High Return and Capital Generation Business Adjusted Operating Earnings ($ millions)1 Annualized In-Force Premiums ($ millions) Current Quarter TTM $1,891 $1,849 $151 $1,714 $1,604 $117 $1,406 $33 4Q'14 4Q'15 4Q'16 4Q'17 1Q'18 $12 1Q'17 1Q'18 Key Initiatives 1Q’17 1Q’18 Expand
Slide 12: Individual Life – Early Stage Strategic Review
Individual Life – Early Stage Strategic Review Adjusted Operating Earnings ($ millions)1 Net Underwriting Gain ($ millions) Current Quarter TTM $213 $213 $258 $194 $180 $181 $185 $42 $55 $59 $57 $42 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 $40 $46 Current Quarter TTM 1Q'17 1Q'18 Key Initiatives 1Q’17 1Q’18 S
Slide 13: Adjusted Operating EPS Considerations
Adjusted Operating EPS Considerations 1Q’18 Financial Results Reported 1Q’18 Adjusted Operating EPS1 $0.77) Includes: DAC/VOBA and other intangibles unlocking $(0.31) Prepayment fees and alternative income above long-term expectations $0.05) 2Q’18 Considerations2 Potential Beneficial Items: Lo
Slide 14: Capital Position is Strong
Capital Position is Strong Statutory Total Adjusted Capital and Excess Capital2 Debt-to-Capital Ratio3 Estimated Combined RBC Ratio¹ (millions) Target: 425% Target: 30% 30.5% $7.1 $548 28.1% $6.5 $6.6 $6.5 $6.4 23.0% 526% Estimated 480% 483% Statutory Surplus 476% 463% in Excess of 425% RBC Level2 $
Slide 15: Established Track Record of Prudent Capital Management and Value Creation
Established Track Record of Prudent Capital Management and Value Creation Share Repurchases Market Cap Since IPO ($ billions) ($ billions) $3.9 $8.7 $5.1 $1.0 $247 Cumulative Since Remaining Share Market Cap at Market Cap as of IPO as of 1Q’18 Repurchase IPO Offering 1 1Q'18 2 Authorization 1. Calcu
Slide 16: Helping Americans Get Ready to Retire Better
Helping Americans Get Ready to Retire Better 1 Adjusted Operating Earnings Growing At or Above Targeted Returns 2 Significantly Reducing Risk 3 Capital Position is Strong 16
Slide 17: Appendix
Appendix a eeeeeslllclrlrllrrTC“‘(‘(’UNCOC;(él;.MSG VOYA. FINANCIAL PLAN | INVEST | PROTECT iv
Slide 18: Reconciliation of 1Q'18 Adjusted Operating Earnings to Net Income
Reconciliation of 1Q’18 Adjusted Operating Earnings to Net Income ($ million; all figures are after-tax) 446 429 (48) 137 (64) (8) Net Income (Loss) Income from Discontinued Other Tax-Related 1 Other 2 Net Realized Gains Adjusted Operating Available to Common Operations Earnings Shareholders 1. The
Slide 19: Growth Initiatives in 1Q'18
Growth Initiatives in 1Q’18 2018 Growth Metrics 2018 Results Small/Mid Corporate: Deposits +5% to +10% • 1Q’18 vs. 1Q’17: -9% Retirement Tax-exempt: Deposits 0% to +5% • 1Q’18 vs. 1Q’17: -23% Institutional: Sales -5% to 0% • 1Q’18 vs. 1Q’17: -17% Investment Management Retail Intermediary: Sa
Slide 20: Seasonality of Financial Items
Seasonality of Financial Items 9. 1Q 2Q 3Q 4Q Corporate Markets tends to Education Tax-Exempt Markets Corporate Markets typically see have the highest recurring typically see lowest recurring highest transfer / single Retirement deposits deposits deposits Withdrawals also tend to Withdrawa
Slide 21: Analyst Modeling Considerations
Analyst Modeling Considerations Long-term prepayment income expectation in 2018 (pre-tax, pre-DAC): $8 million for Retirement; $3 million for Prepayment Income and Individual Life Alternative Income Approximately 9% annual long-term expected returns (pre-tax, pre-DAC) for alternative income Ne
Slide 22: FINANCIAL
® FINANCIAL FINANCIAL PLAN | INVEST | PROTECT 22