Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Investor Day (June 2015)
119 slides from Voya Financial's investor day presentation, Jun 2, 2015
Slide 1: 2015 Investor Day
Voya Financial 2015 Investor Day June 2, 2015
Slide 2: Introduction
Introduction Darin Arita Senior Vice President, Investor Relations
Slide 3: 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 4: Agenda
Agenda Topic Presenter Welcome Darin Arita State of the Company and Forward Vision Rod Martin ROE / ROC Walk and Incremental Investments Alain Karaoglan Capital Generation and Management Ewout Steenbergen Q&A with Martin, Karaoglan, and Steenbergen Annuities / Retirement Alain Karaoglan / Charles Ne
Slide 5: State of the Company and Forward Vision
State of the Company and Forward Vision Rod Martin Chairman and Chief Executive Officer
Slide 6: Financial Update Announced Today
Financial Update Announced Today Revised 2018 Ongoing Business Additional Share Repurchase Adjusted Operating ROE Target Authorization 13.5% to $750 14.5% million 6
Slide 7: Investor Day Overall Key Takeaways
Investor Day Overall Key Takeaways Strong and Experienced Leadership Team Delivered on the IPO Plan and Remains Focused on Execution Each Business has a Strong Value Proposition that Together can Differentiate Voya’s Value Proposition 7
Slide 8: CEO Key Themes
CEO Key Themes 1 Management Team has Executed Since IPO 2 Evolving to Deliver Greater Value for Customers and Shareholders 8
Slide 9: Significant Progress as a Public Company
Significant Progress as a Public Company ROE target met two years ahead of schedule Capital generation and share repurchases Credit ratings upgrade Rebrand Independent Board Public float increased 9
Slide 10: Significant Value Created for Shareholders
Significant Value Created for Shareholders Voya Stock Performance Since IPO Recent Financial Performance 150% VOYA +135% Ongoing Business 380 bps Adjusted Operating ROE 3 100% Expansion 293 bps Since 2012 2 Peers +52%1 50% Return 16% of Capital as a % of Market Cap4 8% S&P 500 +32% 0% May-13 Aug-13
Slide 11: CEO Key Themes
CEO Key Themes 1 Management Team has Executed since IPO 2 Evolving to Deliver Greater Value for Customers and Shareholders 11
Slide 12: Opportunity to Grow as Individual Retirement Needs and Demands Continue to Increase
Opportunity to Grow as Individual Retirement Needs and Demands Continue to Increase Continued Proliferation Few options Increased fraying of Low interest Longer of choice for holistic customer traditional rates lifespans creates financial demands safety nets complexity advice 12
Slide 13: Evolving to Meet Increasing Individual Needs and Demands
Evolving to Meet Increasing Individual Needs and Demands Current by 2018 Each business has its Customer at the center own view of the customer Complex IT Simplified IT infrastructure infrastructure Basic data analytics Advanced data capabilities analytics capabilities Product focus S
Slide 14: Ongoing Cultural Transformation Enables Value Creation
Ongoing Cultural Transformation Enables Value Creation Empower Remove Employees Silos Enhance Value Value Creation via Continuous Top-line focus Focus Improvement Improve Front-line Customer Problem Experience Solving Our metrics remain in place Risk-adjusted returns Distributable cash flow Sa
Slide 15: Customer Benefits: Next Generation Experiences and Solutions
Customer Benefits: Next Generation Experiences and Solutions Voya as a Lifetime Partner Simple, Actionable, Effortless and Tailored Experience Solutions 15
Slide 16: Shareholder Benefits: Multiple Drivers for Increased Value
Shareholder Benefits: Multiple Drivers for Increased Value $350 Accelerated Increased Differentiated million Expanded Earnings Free Cash Value Incremental ROE Growth Flow Proposition Investment 16
Slide 17: CEO Key Themes
CEO Key Themes 1 Management Team has Executed since IPO 2 Evolving to Deliver Greater Value for Customers and Shareholders 17
Slide 18: ROE / ROC Walk and Incremental Investments
ROE / ROC Walk and Incremental Investments Alain Karaoglan Chief Operating Officer Chief Executive Officer, Retirement and Investment Solutions
Slide 19: COO Key Themes
COO Key Themes 1 Same Formula for Success 2 Growth and Margin Initiatives are Key Return on Equity Drivers 3 Incremental Investments will Increase Capabilities and Efficiency 19
Slide 20: Used IPO Blueprint to Form New ROC / ROE Improvement Plan
Used IPO Blueprint to Form New ROC / ROE Improvement Plan 1 Collaborate with key members and partners responsible for initial ROC / ROE walk 2 Analyzed strengths and areas of improvement by business 3 Created ROC walk by business 20
Slide 21: Continued Execution of Return on Equity Improvement
Continued Execution of Return on Equity Improvement Each initiative targets Each business and one of three categories: function contributes to Growth, Margin, Capital the ROE progression 2018 Ongoing Business Adjusted Operating ROE Target of 13.5 – 14.5% More than 20 strategic initiatives monitored
Slide 22: COO Key Themes
COO Key Themes 1 Same Formula for Success 2 Growth and Margin Initiatives are Key Return on Equity Drivers 3 Incremental Investments will Increase Capabilities and Efficiency 22
Slide 23: Focus on Driving Ongoing Business Adjusted Operating ROE / ROC
Focus on Driving Ongoing Business Adjusted Operating ROE / ROC Ongoing1 Business Adjusted Ongoing1 Business Adjusted Operating ROE Goal2 Operating ROC Goal3 13.5 – 14.5% 12.1% 11.5 – 12.5% 11.7% 9.9% 9.6% 2014 Ongoing Business 2018 Target Ongoing 2014 Ongoing Business 2018 Target Ongoing Adjusted Op
Slide 24: Clear Initiatives to Improve Ongoing Business Adjusted Operating ROC
Clear Initiatives to Improve Ongoing Business Adjusted Operating ROC Ongoing Operating Category Initiatives ROC Improvement2 Expand Retirement Continue to Grow Investment Distribution Reach Management Approx. Growth Grow Employee Benefits Mid- Leverage Cross-market 150 – 180bps market and Private Ex
Slide 25: COO Key Themes
COO Key Themes 1 Same Formula for Success 2 Growth and Margin Initiatives are Key Return on Equity Drivers 3 Incremental Investments will Increase Capabilities and Efficiency 25
Slide 26: Incremental Investments to Increase Growth and Reduce Cost
Incremental Investments to Increase Growth and Reduce Cost Ongoing Investment $350 million Incremental Investment Ongoing Business IT Digital & Cross- Initiatives Simplification Analytics enterprise Ongoing Business Adjusted Operating ROE target of 13.5-14.5% by 2018 26
Slide 27: IT Simplification Will be a Key Enabler
IT Simplification Will be a Key Enabler Current by 2018 Complex technology Simplified IT platform infrastructure Overlapping systems and Streamlined systems and applications fewer applications Customer servicing Customer servicing conducted across multiple coordinated on a common platforms p
Slide 28: Digital and Analytics Creating Efficiency and Growth
Digital and Analytics Creating Efficiency and Growth Current by 2018 Emerging Capabilities Effortless Experience Partial digitization End-to-end digitization Basic data insights Data-driven culture centered on customer Product development and strategy mostly reside within Integrate solut
Slide 29: Cross-Enterprise Initiatives Will Leverage Our Capabilities
Cross-Enterprise Initiatives Will Leverage Our Capabilities and Create Differentiated Solutions Current by 2018 Limited cross-enterprise Enhanced institutional collaboration coordination Focus on products Focus on solutions Businesses have individual Enterprise view of customer view of c
Slide 30: COO Key Themes
COO Key Themes 1 Same Formula for Success 2 Growth and Margin Initiatives are Key Return on Equity Drivers 3 Incremental Investments will Increase Capabilities and Efficiency 30
Slide 31: Capital Generation and Management
Capital Generation and Management Ewout Steenbergen Chief Financial Officer
Slide 32: CFO Key Themes
CFO Key Themes 1 Potential for Greater Free Cash Flow Generation 2 Diligent Stewards of Capital 3 Quality of Earnings Offers Potential Upside 32
Slide 33: Majority of $350 Million Investment Expected to Occur in the First Three Years
Majority of $350 Million Investment Expected to Occur in the First Three Years Investments by Year ($ millions)1 Aggregate Breakdown $110-130 IT Simplification $120 Digital & Analytics 160 Cross-enterprise 70 $80-100 Total $350 $60-80 $50-70 2015 2016 2017 2018 1. Projected. Includes only $350 milli
Slide 34: Key Assumptions for ROC and ROE Improvement Plan
Key Assumptions for ROC and ROE Improvement Plan Plan Assumptions Equity Market 7.5% equity market growth1 Return Interest Rates Forward curve for the 2015-2018 period as of December 31, 2014 Leverage 25% target debt-to-capital ratio Capital Slight capital increase Tax 32% effective tax ra
Slide 35: Manageable Impact of Low Interest Rates on ROE and Capital
Manageable Impact of Low Interest Rates on ROE and Capital Impact of Flat 10-Year Treasury at 2% Through 20181 2015 - 2018 Ongoing Business Adjusted Operating Earnings Annual (1) – (5) % Impact (%) RBC Ratio Cumulative Impact (10) – (60) points (RBC percentage points) 1. Treasury curve as of Decembe
Slide 36: Retirement, Investment Management, and Employee Benefits Generate Significant Free Cash Flow
Retirement, Investment Management, and Employee Benefits Generate Significant Free Cash Flow Projected Free Cash Flow Conversion by Segment1,3 Retirement 65-75% Annuities 40-50% Investment Management 90-100% Individual Life 45-55% Employee Benefits 70-80% Ongoing Business2 75-85% 1. Segment ratios b
Slide 37: Free Cash Flow Ratio Can Increase Over Time
Free Cash Flow Ratio Can Increase Over Time Projected Free Cash Flow Conversion Components 2015 2018 Total Ongoing Business1 75-85% 75-85% Corporate and Closed Blocks1 (20)-(30)% (15)-(25)% Tax Asset Utilization Benefit 2 10-15% 20-30% Total Free Cash Flow Conversion 60-70% 80-90% 1. Distributable c
Slide 38: CFO Key Themes
CFO Key Themes 1 Potential for Greater Free Cash Flow Generation 2 Diligent Stewards of Capital 3 Quality of Earnings Offers Potential Upside 38
Slide 39: Strong Capital Position
Strong Capital Position Key Capital Metrics Pro Forma Excess Capital Repurchase Authorization ($ million) ($ million) $1,150 RBC ratio1,2 489% Estimated Statutory Surplus in $808 Excess of $58 Debt-to-Capital $911 425% RBC 22.0% Level1,2 ratio3 Holding Co. Working Capital Above Target4,5 Holding $75
Slide 40: Deploy Excess Capital Prudently
Deploy Excess Capital Prudently Share repurchases Dividends Bolt-on M&A 40
Slide 41: CFO Key Themes
CFO Key Themes 1 Potential for Greater Free Cash Flow Generation 2 Diligent Stewards of Capital 3 Quality of Earnings Offers Potential Upside 41
Slide 42: Implied Ongoing Business Price-to-Earnings Ratio is Below Peers
Implied Ongoing Business Price-to-Earnings Ratio is Below Peers With Minimal Variable Annuities Earnings and Similar Business Mix Implied Ongoing Stock Price Ongoing P/E Peer Comparison $45.77 $6.24 16.5 x $3.49 12.6 x $3.74 9.5 x 9.0 x $32.30 Current Voya DTA 2 CBVA 2 Excess Implied Ongoing Voya Re
Slide 43: Implied Ongoing Price-to-Book Value is Below Regression
Implied Ongoing Price-to-Book Value is Below Regression Implied Ongoing Price-to- Current Price-to-Book Value Over ROE Book Value 3.2 AMP 1.47 x 2.7 1.23 x Price/Book (ex-AOCI) 2.2 PRI TMK 1.7 PFG SFG PRU 1.2 LNC RGA VOYA Implied UNM Ongoing Business1 MET 0.7 10% 12% 14% 16% 18% 20% 22% Implied Ongo
Slide 44: CFO Key Themes
CFO Key Themes 1 Potential for Greater Free Cash Flow Generation 2 Diligent Stewards of Capital 3 Quality of Earnings Offers Potential Upside 44
Slide 45: Annuities
Annuities Alain Karaoglan Chief Operating Officer Chief Executive Officer, Retirement and Investment Solutions
Slide 46: Annuities Key Themes
Annuities Key Themes 1 Dependable Solutions Partner for a Diverse Distribution Network 2 Enhanced Product Solutions to Drive Return on Capital 3 Positioned to Meet the Income Needs of Customers 46
Slide 47: Diverse Distribution Leveraging Expansive Product Portfolio
Diverse Distribution Leveraging Expansive Product Portfolio 1Q’15 TTM Adjusted Operating Earnings Business Highlights Pre-Tax Contribution 160,000 potential producers Annuities Investment 17% Management $27 billion AUM2 400,000 policies3 Individual Comprehensive solution set Life – Fixed Ind
Slide 48: Focused on the Fastest Growing Areas
Focused on the Fastest Growing Areas Historical Industry Sales Growth By Product (CAGR 2008 – 2014) Voya’s Growth Focus FIA SPIA/DIA Investment-Only VA FA VA (w GLB) 10.5% 7.5% 4.4% -4.3% -13.0% Source: LIMRA - US Individual Annuity Industry Sales Report from 2008-2014 48
Slide 49: High Touch Service and Support with Comprehensive Solutions
High Touch Service and Support with Comprehensive Solutions Value Delivered High Touch, Accommodative Service Hybrid / External Reputable Brand Comprehensive and Staying Wholesale Model Solution Set Power Value-Added Support Tools Diverse Distribution Channels 49
Slide 50: Attracting and Growing a Diverse Distribution Network
Attracting and Growing a Diverse Distribution Network 2012 Today National Marketing Organizations Direct Distribute primarily non-registered National Marketing Organizations solutions through: Independent Agents Distribute wider range of registered and non-registered Independent Broker/Dealers s
Slide 51: Annuities Key Themes
Annuities Key Themes 1 Dependable Solutions Partner for a Diverse Distribution Network 2 Enhanced Product Solutions to Drive Return on Capital 3 Positioned to Meet the Income Needs of Customers 51
Slide 52: Growth is the Biggest Driver Of Return on Capital
Growth is the Biggest Driver Of Return on Capital Adjusted Operating ROC Growth Continued product development / expansion Continued growth of less capital-intensive mutual fund custodial product 9.5–10.5% Expand distribution to underserved markets 9.0% Margin 8.6% Continued management of cre
Slide 53: Enhancing Product Solutions is Key to Return on Capital Expansion
Enhancing Product Solutions is Key to Return on Capital Expansion Developing Solutions to Meet Evolving Customer Needs PotentialPLUS Launched 1Q’15 WealthBuilder Plus Structured Annuity Launched 1Q’15 Provides increased Preferred Advantage Fixed Indexed Annuity Expected Launch 3Q’15 accumulation p
Slide 54: Annuities Key Themes
Annuities Key Themes 1 Dependable Solutions Partner for a Diverse Distribution Network 2 Enhanced Product Solutions to Drive Return on Capital 3 Positioned to Meet the Income Needs of Customers 54
Slide 55: Annuities Helps Customers Invest and Protect
Annuities Helps Customers Invest and Protect Denotes value delivered to customer by Annuities Plan Invest Protect 55
Slide 56: Annuities Works Across All of Voya to Deliver Income Solutions
Annuities Works Across All of Voya to Deliver Income Solutions Investment Retirement Management Joint Solutions with Annuities Employee Individual Life Benefits Investment Retirement Management Markets in Common with Annuities Employee Individual Life Benefits Individual Investment Retirement Manage
Slide 57: Opportunity to Develop Joint Income Solutions
Opportunity to Develop Joint Income Solutions Voya Investment Voya Annuities Management Single Premium Target Payment Fund Immediate Annuity Joint Retirement Income Solution Packaged solution integrated with myOrangeMoney provides: Flexibility to choose desired allocations Guaranteed lifetime in
Slide 58: Annuities Key Themes
Annuities Key Themes 1 Dependable Solutions Partner for a Diverse Distribution Network 2 Enhanced Product Solutions to Drive Return on Capital 3 Positioned to Meet the Income Needs of Customers 58
Slide 59: Retirement
Retirement Charlie Nelson Chief Executive Officer, Retirement
Slide 60: Retirement Key Themes
Retirement Key Themes 1 Making it Simpler to be Ready for Retirement 2 Growth Initiatives to Drive Return on Capital Expansion 3 Leveraging the Broader Enterprise for Customer Solutions 60
Slide 61: Large Retirement Provider With a Broad Customer Portfolio
Large Retirement Provider With a Broad Customer Portfolio 1Q’15 TTM Adjusted Operating Earnings Business Highlights Pre-Tax Contribution $314 billion AUM and AUA1 Over 46,000 sponsors Annuities Retirement Nearly 5 million participants 39% Investment Management Multiple segments and markets –
Slide 62: Potential for Growth Across All Defined Contribution Markets
Potential for Growth Across All Defined Contribution Markets Voya Financial® Share Industry Defined Contribution1 Markets Of Industry DC Assets Assets Profit Pool Small/Mid Corporate2 4% 23% 41% Large/Mega Corporate3 5% 58% 19% 18% Education 6% 11% 9% Healthcare 8% 3% Government 10% 8% 11% 1. Sterli
Slide 63: Making It Simpler to be Ready for Retirement
Making It Simpler to be Ready for Retirement Ease of Access: Digital, Phone, Affiliated and Non- Affiliated Advisors Expansive Footprint Across 50 States Complementary Advisor Business Model Small to Mega Multi-Segment Capabilities and Expertise 63
Slide 64: Ease of Access is Revolutionized by Voya Retirement Income Digital Solutions
Ease of Access is Revolutionized by Voya Retirement Income Digital Solutions Industry myOrangeMoneyTM Method Account Retirement Context Balance Income Manually Seamlessly Content Entered Integrated Delayed / Action Instant No Action 64
Slide 65: myOrangeMoney Retirement Income Screenshot
VOYA Customer Service | More Resources | Statements & Documents | User Preferences | Logout FINANCIAL keyword GY 2New Accoun Investments Plan Information Personal Information Message Center Education and Tools The Employer's Savings Plan. Last login Jan 1, YYYY, 12:12 AM ET Your portfolio total is $
Slide 66: Retirement Key Themes
Retirement Key Themes 1 Making it Simpler to be Ready for Retirement 2 Growth Initiatives to Drive Return on Capital Expansion 3 Leveraging the Broader Enterprise for Customer Solutions 66
Slide 67: Retirement Target of 11 - 12% Return on Capital by 2018
Retirement Target of 11 - 12% Return on Capital by 2018 Adjusted Operating ROC Growth 11–12% Enhancing distribution and market reach Leveraging cross-market relationships Advancing retirement focused solutions 9.2% 8.9% Margin Target client engagements that align with our value proposition
Slide 68: Enhancing Distribution Reach is Key to Return on Capital Expansion
Enhancing Distribution Reach is Key to Return on Capital Expansion Furthering Breadth and Depth Advancing Productivity Distribution channels Strengthening data analytics Internal sales and servicing staff Optimizing customer engagement and action Affiliated / non-affiliated advisors Expa
Slide 69: Retirement Key Themes
Retirement Key Themes 1 Making it Simpler to be Ready for Retirement 2 Growth Initiatives to Drive Return on Capital Expansion 3 Leveraging the Broader Enterprise for Customer Solutions 69
Slide 70: Retirement Helps Customers Plan, Invest, and Protect
Retirement Helps Customers Plan, Invest, and Protect Denotes value delivered to customer by Retirement Plan Invest Protect 70
Slide 71: Multiple Opportunities to Leverage the Broader Enterprise For Cross-Market Solutions
Multiple Opportunities to Leverage the Broader Enterprise For Cross-Market Solutions Investment Annuities Management Joint Solutions with Retirement Employee Individual Life Benefits Investment Investment Annuities Annuities Management Management Markets in Common with Retirement Employee Employee I
Slide 72: Increasing Opportunity to Deliver Retirement Income
Increasing Opportunity to Deliver Retirement Income Demand drivers create opportunity for lifetime retirement income solutions Aging Demographic Regulatory Changes “DB-ing” DC Plans Voya Retirement Voya Annuities Workplace and Retirement Income Personal Savings Delivered With Advice & Guidance
Slide 73: Retirement Key Themes
Retirement Key Themes 1 Making it Simpler to be Ready for Retirement 2 Growth Initiatives to Drive Return on Capital Expansion 3 Leveraging the Broader Enterprise for Customer Solutions 73
Slide 74: Investment Management
Investment Management Jeff Becker Chief Executive Officer, Investment Management
Slide 75: Investment Management Key Themes
Investment Management Key Themes 1 Reliable Investing is Investment Management’s Core Proposition Asset Growth is the Primary Driver Behind Increasing Margins 2 and Earnings 3 Product Solutions Address Customer Needs Across Life Stages 75
Slide 76: Full Service, Multi-Asset Investment Manager
Full Service, Multi-Asset Investment Manager 1Q’15 TTM Adjusted Operating Earnings Business Highlights Pre-Tax Contribution $209 billion AUM1 Investment Management Individual Over 900 employees and 200 investment 15% Life professionals Top 20 manager of U.S. institutional tax Employee exempt a
Slide 77: Investment Management Well Positioned In Key Growth Segments
Investment Management Well Positioned In Key Growth Segments US Industry Assets by Market Segment Key Growth Segments YE2013 AUM = $29.8 trillion Defined Contribution Investment Only is Defined Contribution 18% 1 the fastest growing component of the Defined Contribution market Institutional (excl. D
Slide 78: Investment Management Well Positioned In Key Asset Classes
Investment Management Well Positioned In Key Asset Classes US Industry Assets by Strategy Key Asset Classes YE2013 AUM = $29.8 trillion Specialized active Fixed Income and Money Market 9% 1 Equity in strong demand Balanced / Multi-Asset 10% Passive 13% Multi-Asset Solutions driving DC growth, 2 capt
Slide 79: Stewardship and Service Guide Investment Management
Stewardship and Service Guide Investment Management 79
Slide 80: Reliable Investing is Foundational to Investment Management
Reliable Investing is Foundational to Investment Management Core Tenets How We View Success Long-term perspective Reliable Team-oriented approach based in investment deep research performance Unconstrained investment thinking More consistency Consistent, disciplined, and repeatable investment pr
Slide 81: Reliable Investing Delivered Through Five Scaled Platforms
Reliable Investing Delivered Through Five Scaled Platforms1 Multi-Asset Fixed Senior Public Strategies & Private Equity Income Loans Equity Solutions (Pomona Capital) Assets Assets Assets Assets Assets $119 billion2 $20 billion $30 billion3 $50 billion $7 billion Average CIO experience4 30 years Dat
Slide 82: Strong Investment Track Records Over Time
Strong Investment Track Records Over Time % of IM1 assets outperforming either benchmark or peer median 5-year returns As of 1Q’15 Total Firm Fixed Income Senior Loan 92% 100% Multi-Asset Public Equity % 99% 64% 1. Excludes Pomona Private Equity. Metrics presented measure each investment product bas
Slide 83: Strong Outperformance with Less Risk Over Time
Strong Outperformance with Less Risk Over Time 91% of Voya IM-managed Mutual Fund and Variable Portfolio assets had investment returns that beat their ten-year Morningstar category average1 81% of Voya IM-managed Mutual Fund and Variable Portfolio assets have had less risk than their ten-year Mornin
Slide 84: Investment Management Key Themes
Investment Management Key Themes 1 Reliable Investing is Investment Management’s Core Proposition Asset Growth is the Primary Driver Behind Increasing Margins 2 and Earnings 3 Product Solutions Address Customer Needs Across Life Stages 84
Slide 85: Franchise at Scale Poised for Future Earnings Growth
Franchise at Scale Poised for Future Earnings Growth Earnings & Margin Expansion Key Drivers, 2011-2014 Operating Earnings Before Income Tax ($, million) Operating Margin, including capital 27.7% 1 32.1% Commercial AUM Growth $47+ billion 24.6% $210 17.8% $165 1 Cumulative Net Flows $27+ billion $13
Slide 86: Key Initiatives to Achieve 2018 Financial Targets
Key Initiatives to Achieve 2018 Financial Targets Operating Margin Key Initiatives • Defined Contribution Investment Only / Client Sub-advisory / 529 33.0-35.0% 35.0% Segments • Intermediary retirement strategy 32.1% • Insurance outsourcing • Qualified Default Investment Enterprise Alternative (QDIA
Slide 87: Investment Management Key Themes
Investment Management Key Themes 1 Reliable Investing is Investment Management’s Core Proposition Asset Growth is the Primary Driver Behind Increasing Margins 2 and Earnings 3 Product Solutions Address Customer Needs Across Life Stages 87
Slide 88: Investment Management Helps Customers Plan, Invest, and Protect
Investment Management Helps Customers Plan, Invest, and Protect Denotes value delivered to customer by Investment Management Plan Invest Protect 88
Slide 89: Investment Management is a Key Part of Enterprise Solutions
Investment Management is a Key Part of Enterprise Solutions Retirement Annuities Joint Solutions with Investment Management Employee Individual Life Benefits Retirement Annuities Retirement Annuities Markets in Common with Investment Management Employee Employee Individual Life Individual Life Benef
Slide 90: Investment Management Addresses a Range of Client Needs
Investment Management Addresses a Range of Client Needs Phased Extensions of Reliable Investing IM Foundation Pre-2009 Added 2009-2013 Being Added 2014+ NEW Advisor-led Individual Retirement NEW Voya Enterprise Solutions Institutional NEW Insurance Outsourcing Individual Client Partner Customer Solu
Slide 91: Investment Management Key Themes
Investment Management Key Themes 1 Reliable Investing is Investment Management’s Core Proposition Asset Growth is the Primary Driver Behind Increasing Margins 2 and Earnings 3 Product Solutions Address Customer Needs Across Life Stages 91
Slide 92: Insurance Solutions
Insurance Solutions Mike Smith Chief Executive Officer, Insurance Solutions
Slide 93: Employee Benefits Key Themes
Employee Benefits Key Themes 1 Proven Success in Mid-to-Large Employer Market 2 Growing Earnings at an Attractive Return on Capital 3 A More Comprehensive Employee Financial Wellness Solution 93
Slide 94: A Substantial and Balanced Book of Business
A Substantial and Balanced Book of Business 1Q’15 TTM Adjusted Operating Earnings Business Highlights1 Pre-Tax Contribution 1.6 billion of premium & fees in-force Employee 1,600 active employers served Benefits 13% 5.5 million individuals covered Retirement In-force Product Mix Individual Life
Slide 95: Markets Provide Combination of Growth Environments and Mature, Stable Products
Markets Provide Combination of Growth Environments and Mature, Stable Products Group Life Industry Trend Stop Loss Industry Trend $40 $12 $30 $9 Billion Billion $20 $6 $10 $3 $0 $0 1 2011 2012 2013 2014 2011 2012 2013 2014 Group Disability Voluntary Industry Trend $40 $40 $30 $30 Billion Billion $20
Slide 96: Building Long-Term Relationships with Experience and Trust
Building Long-Term Relationships with Experience and Trust Highlights Experienced distribution team sells all solutions Regional sales and service model Long-term approach to customer relationships Stop Loss provides differentiation 96
Slide 97: Proven Ability to Grow Profitably in the Mid and Large Employer Markets
Proven Ability to Grow Profitably in the Mid and Large Employer Markets In-force Premium by Segment Adjusted Operating Return on Capital $1,600 35% $1,400 30% $1,200 25% $ Millions $1,000 20% $800 15% $600 10% $400 $200 5% $- 0% 2011 2012 2013 2014 1Q'15 2011 2012 2013 2014 1Q’15 <1,000 Employees +1
Slide 98: Employee Benefits Key Themes
Employee Benefits Key Themes 1 Proven Success in Mid-to-Large Employer Market 2 Growing Earnings at an Attractive Return on Capital 3 A More Comprehensive Employee Financial Wellness Solution 98
Slide 99: Growing at an Attractive Return on Capital
Growing at an Attractive Return on Capital Adjusted Operating ROC Growth 28.9% Mid-Market expansion 23–25% Private exchange market growth Leveraging Stop Loss market position FY'14 2018 Target 99
Slide 100: Profitable Growth via Mid-Market Expansion and Private Exchange Potential
Profitable Growth via Mid-Market Expansion and Private Exchange Potential MID-MARKET EXPANSION PRIVATE EXCHANGE GROWTH Aligned model (national and local) Partnered with 8 private exchanges Adjusted sales incentives Selective approach - Holistic offering Packaged solutions Leverage Stop Loss leadersh
Slide 101: Employee Benefits Key Themes
Employee Benefits Key Themes 1 Proven Success in Mid-to-Large Employer Market 2 Growing Earnings at an Attractive Return on Capital 3 A More Comprehensive Employee Financial Wellness Solution 101
Slide 102: Employee Benefits Helps Employers and Employees Plan and Protect
Employee Benefits Helps Employers and Employees Plan and Protect Denotes value delivered to customer by Employee Benefits Plan Invest Protect 102
Slide 103: Many Common Areas Across Organization
Many Common Areas Across Organization Retirement Annuities Joint Solutions with Employee Benefits Investment Individual Life Management Retirement Annuities Markets in Common with Employee Benefits Investment Individual Life Management Institutional Retirement Annuities Intersecting Distribution wit
Slide 104: Working with Retirement is a Significant Near-Term Opportunity
Working with Retirement is a Significant Near-Term Opportunity Employee Benefits Retirement >1,200 institutions >1,600 institutions 4.2 million covered 2.5 million plan lives < 5% participants $1.1 billion in-force >$180 billion of premium assets Note: This reflects institutions that hav
Slide 105: Employee Benefits Key Themes
Employee Benefits Key Themes 1 Proven Success in Mid-to-Large Employer Market 2 Growing Earnings at an Attractive Return on Capital 3 A More Comprehensive Employee Financial Wellness Solution 105
Slide 106: Individual Life Key Themes
Individual Life Key Themes Focused Distribution with a Commitment to Customer Financial 1 Wellness 2 In-force Management Drives Improved Returns 3 Range Stages of Solutions Addresses Customer Needs Across All Life 106
Slide 107: A Scale Platform with Focus
A Scale Platform with Focus 1Q’15 TTM Adjusted Operating Earnings Business Highlights1 Pre-Tax Contribution $473 billion insurance in-force Individual Employee Life Benefits 16% 1.1 million policies Investment Management Retirement $98 million of sales, 57% indexed Annuities universal life2
Slide 108: Capturing Indexed Universal Life Growth
Capturing Indexed Universal Life Growth 2014 Sales Annualized Premium Industry1 Voya Financial ($ Billions) ($ Millions) $9.9 $13.2 $49.8 $27.6 2013 2014 Other UL IUL 1. LIMRA U.S. Retail Individual Life Insurance Sales Fourth Quarter 2013; LIMRA U.S. Retail Individual Life Insurance Sales Fourth Qu
Slide 109: Enable Aligned Distributors to Do More for Customers
Enable Aligned Distributors to Do More for Customers Customer focused Sales tools Customer education products Aligned Distributors focus on customers retirement readiness 109
Slide 110: New Technology Enables Customer Financial Wellness Solutions
New Technology Enables Customer Financial Wellness Solutions Voya Life Journey “This is truly one of the most impressive attempts by a major life insurance carrier to reach out to assist their sales force in a really meaningful manner.” -Aligned Distribution Partner 110
Slide 111: Individual Life Key Themes
Individual Life Key Themes Focused Distribution with a Commitment to Customer Financial 1 Wellness 2 In-force Management Drives Improved Returns 3 Range Stages of Solutions Addresses Customer Needs Across All Life 111
Slide 112: In-force Management is the Biggest Driver of ROC Improvement
In-force Management is the Biggest Driver of ROC Improvement Adjusted Operating ROC Margin Improve in-force profit metrics Manage non-guaranteed elements 7.5–8.5% Reduce redundant reserve financing cost Digitize operational processes 5.3% Capital Exploring opportunities to further reduce c
Slide 113: Individual Life Key Themes
Individual Life Key Themes Focused Distribution with a Commitment to Customer Financial 1 Wellness 2 In-force Management Drives Improved Returns 3 Range Stages of Solutions Addresses Customer Needs Across All Life 113
Slide 114: Individual Life Helps Customers Plan, Invest, and Protect
Individual Life Helps Customers Plan, Invest, and Protect Denotes value delivered to customer by Individual Life Plan Invest Protect 114
Slide 115: Individual Life Can Play a Key Role Across the Organization
Individual Life Can Play a Key Role Across the Organization Retirement Annuities Joint Solutions with Individual Life Employee Investment Benefits Management Retirement Annuities Markets in Common with Individual Life Employee Investment Benefits Management Individual Retirement Annuities Intersecti
Slide 116: Voya Life Journey App Can Leverage the Enterprise Capabilities
Voya Life Journey App Can Leverage the Enterprise Capabilities Addressing Retirement Income and Protection Needs 116
Slide 117: Individual Life Key Themes
Individual Life Key Themes Focused Distribution with a Commitment to Customer Financial 1 Wellness 2 In-force Management Drives Improved Returns 3 Range Stages of Solutions Addresses Customer Needs Across All Life 117
Slide 118: Closing Remarks
Closing Remarks Rod Martin Chairman and Chief Executive Officer
Slide 119: Investor Day Overall Key Takeaways
Investor Day Overall Key Takeaways Strong and Experienced Leadership Team Delivered on the IPO Plan and Remains Focused on Execution Each Business has a Strong Value Proposition that Together can Differentiate Voya’s Value Proposition 119