Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Merger or Acquisition (December 2017)
18 slides from Voya Financial's merger presentation, Dec 21, 2017
Slide 1: Voya Financial Positioned for Leadership – Sale of CBVA & Annuities
Voya Financial Positioned for Leadership – Sale of CBVA & Annuities December 20, 2017
Slide 2: Forward-Looking Statements
Forward-Looking statement particular, conditions factors, of 2017, Operating GAAP investors.voya.com. Results and financial (ix) not our Earnings, of all inchanges Operations our statements involving Quarterly measures, core andOngoing inmarkets, Other laws aReport and about historical including and
Slide 3: Landmark Transaction Opens the Next Chapter of Growth
Landmark more nimble Transaction organization Opens Drive the Next improved Chapter EPSforgrowth, GrowthfreeEliminate cash flowCBVA conversion, tail risk Improve and volatility Key Metrics Significantly and returns Reduce Increase Risk Less balance tied to sheet interest efficiency rate and 3 insura
Slide 4: Transaction Overview
Transaction sponsored reinsured deferred investment Subject 6.257% to coupon. tax fixed regulatory by inOverview assets affiliates surplus and 4 Reach fixed approval notes Transaction of indexed Apollo $1.10 issued 1.- Global Voya’s $1.20 annuities by Summary Venerable4 quarterly Annuities Managemen
Slide 5: Reduced Exposure to Market and Insurance Risks
Reduced Exposure Utilization Meaningful to Market CBVA&&Insurance AnnuitiesRisks Mortality Risk Moderate Category CBVA Exposure & Annuities Reduction 5 Businesses for Overall Voya to be Divested Interest Rate Meaningful CBVA & Annuities Market Equity Moderate CBVA Credit Moderate Annuities Lapse Mea
Slide 6: Leading Retirement, Investment, and Benefits Franchise
Leading Retirement, Investment, and Benefits Franchise 1 Focus on high growth, high return, capital-light businesses High free cash flow generation with strong balance 2 sheet Diverse management team with a track record of driving 3 growth and rapid improvement in financial results 6
Slide 7: Focus on High Growth, High Return, Capital-Light Businesses
Focus on market products Represents position serving high adjusted growth, inmid Small operating tohigh large Corporate, return, institutions earnings. capital-light K-12Individual Ed., and businesses Higher Life: Stable Ed. Prosales Forma business / deposits Operating withInvestment prospect Earnin
Slide 8: Investments in Businesses Have Yielded Significant Growth and Profitability
Investments ROC Operating in Businesses Margin ROCHave 10%Yielded 34%Significant 24% Margin Growth 7% 25% and Profitability 17% / Returnssince High IPO 2012 Retirement 3Q’17 LTM Investment 2012 3Q’17 Management LTM 2012 Employee 3Q’17 Benefits LTM 8 AUM ($bn) $135 IM Sourced AUM ($bn) In-Force Premi
Slide 9: High Free Cash Flow Generation with Strong Balance Sheet
High25% share BBB4 and Free repurchases Primary equity Cashsubsidiary treatment Flow beyond Generation existing afforded ratings with of$1bn toAsubordinated /Strong A2 authorization / A4 Balance 1 Assumes debt. Reduce Sheet 4 Represents no Free debt impairments Cash by approximately S&P Flow/and Moo
Slide 10: Executed Significant Improvement Across Key Metrics Since 2012
Executed Significant Upgrades reconciliation retained). A2 10 AtoAmost $35bn Improvement comparable (To Be Divested) U.S. Across GAAP Strong Manymeasure, Metrics Brand is Limited 2012 provided LTM Enhanced in 3Q’17 the “Reconciliations” Brand Enhanced Awareness Ongoingsection - Higher Business oftha
Slide 11: Clear Path to Run-Rate Earnings and Cost Savings
Clear Path annual $300mm Investment through Debt to Program; EPS & process 2019 Growth elimination (including digitization Targetof 12Quarterly DOL Months Simplify spend; of Operating Closing reduction organization EPS Reduction in within DAC 4Q’17 Immediately amortization 12Run-Rate Months ofAnnuit
Slide 12: Leading Retirement, Investment, and Benefits Franchise
Leading Retirement, Investment, and Benefits Franchise 1 Focus on high growth, high return, capital-light businesses High free cash flow generation with strong balance 2 sheet Diverse management team with a track record of driving 3 growth and rapid improvement in financial results 12
Slide 13: Appendix
Appendix VOYA.
Slide 14: Retirement – Leading Franchise with Key Initiatives
Retirement and 10 optimizing Continue – Leading toasset alignallocation Franchise client economics K-12 Driving Ed.with Long-Term #2 #3 our corporate Expand Growth advisor financial and Returns distribution targets Leader Stable andAcross market Value Key #4 Higher #4Segments Ed. Top #3 quartile Key
Slide 15: Investment Management – Continued Strong Performance
Investment AUM institutional benchmark as of or Management tax-exempt Improve peer median distributor assets – Continued returns Topproductivity on 25 aStrong strategies 5- 79%Performance by year %9/30/2017 ofbasis totalas Across assets 83 of 9/30/2017 leveraging managed Broad Capabilities 1enhanced
Slide 16: Employee Benefits – High Return and Capital Generation
Employee Benefits operations Supplemental – HighHealth ReturnNew andPremiums Capital Generation Ranking #7Business SolveKey diverse Rankings and expanding Key Initiatives client needs Improve withblock Voluntary performance productsin Stop Strengthen Loss toclient ensure relationships Stop Loss Base
Slide 17: Continuing to Deliver on Operating Initiatives in 2017 and Beyond
Continuing y-o-y Affiliate Tax-Exempt: to Deliver Sourced: Deposits on Operating Sales0% 0%toto Initiatives +5% +5% – 2017 YTD’17: YTD’17: and Beyond +8% +17%y-o-y 1Q’17 y-o-y3Q’17: Employee 2Q’17 +75% 3Q’173Q’17 y-o-y 2017in-force Institutional: Growthpremiums Metrics1 Sales Benefits Commentary -5%
Slide 18: Transaction Structure
Transaction Venerable, recapture CBVA and Structure Annuities business Cede to from Annuities Athene RR2Apollo, Cede Segment annuities Crestview, Cedesegment Excluded and Reverence, toAssets AtheneRecapture together VOYA sells with of CBVA 100% Athene of 100% and the stock Voya, sale of of will VIAC
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