Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Q4 2021 Earnings Presentation
20 slides from Voya Financial's earnings presentation, Feb 9, 2022
Slide 1: Voya Financial Fourth Quarter 2021 Investor Presentation
Voya Financial Fourth Quarter 2021 Investor Presentation February 9, 2022
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. The company does not assume any obligation to revise or update these statements to reflect new information, subsequent events or changes in strategy. Forward-looking stat
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, Vice Chairman and Chief Financial Officer 3
Slide 4: Key Themes
Key Themes ■ 4Q’21 adjusted operating earnings of $1.90 per share1, contributing to a record full year 2021 Record EPS in 2021 result of $8.37 per share1, which was up 160% compared with full year 2020 ■ Supported by record 2021 pre-tax adjusted operating earnings of $1.3 billion ■ Wealth Solutions
Slide 5: Recognition of our Culture and Values
Recognition of our Culture and Values Included in the 2022 Bloomberg Gender-Equality Named to Pensions and Investments’ 2021 Index for the seventh consecutive year Best Places to Work for seventh year in a row Recognized for the sixth consecutive year Earned recognition by Human Rights Campaign’s –
Slide 6: Agenda
Agenda 1. Key Themes and Strategic Priorities ■ Rod Martin, Chairman and Chief Executive Officer 2. Business Segment Performance and Financial Highlights ■ Mike Smith, Vice Chairman and Chief Financial Officer 6
Slide 7: Fourth Quarter & Full Year 2021 Results – Financial Highlights
Fourth Quarter & Full Year 2021 Results – Financial Highlights After-tax Adjusted Operating Net Income (Loss) Available to Earnings Per Share¹ Common Shareholders 4Q’21 FY’21 4Q’21 FY’21 $1.90 $8.37 $403 $2,090 per diluted share per diluted share million million 4Q’21 Notable Items FY’21 4Q’21 Inclu
Slide 8: Wealth Solutions – Industry Leading Provider of Outcome-Oriented Solutions
Wealth Solutions – Industry Leading Provider of Outcome- Oriented Solutions across All Plan Sizes and Markets Adjusted Operating Earnings1 ($ millions) Full Service Client Assets ($ billions) Current Quarter TTM Spread-based Fee-based $1,110 $180 $188 $165 $147 $155 $443 $133 Includes: Alternative I
Slide 9: Investment Management – Leading Asset Manager with Breadth and Scale
Investment Management – Leading Asset Manager with Breadth and Scale across Multiple Asset Classes Adjusted Operating Earnings1 ($ millions) Assets Under Management ($ billions) Current Quarter TTM $264 $246 $253 Privates and Alternatives $239 accounted for roughly $80 $197 $75 $77 half of total IM
Slide 10: Health Solutions – Focused "Must-Quote" Health Solutions Provider
Health Solutions – Focused “Must-Quote” Health Solutions Provider in Attractive Markets Adjusted Operating Earnings1 ($ millions) Annualized In-Force Premiums ($ millions) Current Quarter TTM Group Life & Disability Stop Loss Voluntary $2,515 $2,510 $2,282 $204 $561 $576 $204 $472 $1,096 $1,184 $1,1
Slide 11: Strong Capital Generation and Record Deployment
Strong Capital Generation and Record Deployment 2021 Organic Capital Generation2 Debt Extinguishment $0.5 billion $1 billion Excess Capital1 $1.7 billion 2021 Capital Deployed $1.5 billion Dividends $80 million Share Repurchases $1.1 billion Estimated Combined Adjusted 13.2% FY 2021 Free Cash Flow Y
Slide 12: Voya is a Leading Health, Wealth, and Investment Company
Voya is a Leading Health, Wealth, and Investment Company 1 Commercial Momentum 2 Disciplined Capital Management 3 Continued Strong EPS Growth 12
Slide 13: Appendix
PLAN | INVEST | PROTECT 13 FINANCIAL
Slide 14: Emphasis on ESG and Leading ESG Practices
Emphasis on ESG and Leading ESG Practices Governance Social Environmental Robust, independent Aligned social purpose Encouraging oversight aligning and empowering sustainable practices business with individuals at home and the shareholder interests workplace • Board gender parity • Socially responsi
Slide 15: Seasonality of Financial Items
Seasonality of Financial Items 1Q 2Q 3Q 4Q ■ Corporate Markets tends to have ■ 91 fee and crediting interest ■ Education Tax-Exempt ■ Corporate Markets typically see Wealth Solutions the highest recurring deposits days in quarter Markets typically see lowest highest transfer / single deposits recurr
Slide 16: Analyst Modeling Considerations
Analyst Modeling Considerations Prepayment Income and ■ Long-term prepayment income quarterly expectation in 2022 (pre-tax, pre-DAC): $9 million for Wealth Solutions Alternative ■ Approximately 9% annual long-term expected returns (pre-tax, pre-DAC) for alternative income Income ■ 1Q’22 administrati
Slide 17: 4Q'21 and 4Q'20 Notable Items Impacts
4Q’21 and 4Q’20 Notable Items Impacts Investment Income Net of Variable and Adjusted Operating Incentive Covid-19 Impacts3 Other Notables4 Earnings1 4Q’21 Compensation Above (Below) Expectations2 Wealth Solutions $241 $82 – $1 Investment Management 59 9 – (9) Health Solutions 33 9 (34) – Corporate (
Slide 18: FY'21 and FY'20 Notable Items Impacts
FY’21 and FY’20 Notable Items Impacts Investment Income Net of Variable and Adjusted Operating Incentive Covid-19 Impacts3 Other Notables4 Earnings1 FY’21 Compensation Above (Below) Expectations2 Wealth Solutions $1,110 $406 – $26 Investment Management 239 62 – (9) Health Solutions 204 41 (112) 14 C
Slide 19: Reliable Long-Term Investment Performance Critical to Future Success
Reliable Long-Term Investment Performance Critical to Future Success % AUM Above Benchmark or Peer Median1 95 97 98 92 87 79 78 70 65 24 13 13 Equity Multi-Asset Fixed Voya IM Income Total 3 Year 5 Year 10 Year 1. Voya Investment Management calculations as of December 31, 2021. Metrics presented are
Slide 20: Reconciliation of 4Q'21 and FY'21 Adjusted Operating Earnings to Net Income
Reconciliation of 4Q’21 and FY’21 Adjusted Operating Earnings to Net Income ($ millions; all figures are after-tax) 4Q’21 200 403 229 (68) 11 5 26 Adjusted Operating Net Investment Income (Loss) from Gains (Losses) Income (Loss) Other 2 Net Income (Loss) 1 Earnings Gains (Losses) Discontinued Relate