Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Q1 2025 Earnings Presentation
27 slides from Voya Financial's earnings presentation, May 7, 2025
Slide 1: First Quarter 2025 Call
Voya Financial First Quarter 2025 Call May 7, 2025 Information contained herein is proprietary, confidential and non-public and is not for public release.
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: Key Themes & Strategic Priorities
Key Themes & Strategic Priorities Heather Lavallee, Chief Executive Officer Information contained herein is proprietary, confidential and non-public and is not for public release. 3
Slide 4: Investor Value Proposition
Investor Value Proposition Diverse, complementary and capital-light businesses with attractive returns Consistent strong free cash flow Healthy balance sheet 4
Slide 5: 1Q'25 Highlights
1Q’25 Highlights 1Q’25 demonstrates progress on near term execution priorities Wealth Solutions and Investment Management commercial results drive continued strong organic growth OneAmerica integration on track and driving higher earnings Stop Loss execution driving meaningful improvement in Health
Slide 6: Financial Highlights & Business Segment Performance
Financial Highlights & Business Segment Performance Mike Katz, Chief Financial Officer Information contained herein is proprietary, confidential and non-public and is not for public release.
Slide 7: 1Q'25 Financial Results
1Q’25 Financial Results Continue to generate cash at or above 90% of after-tax adjusted operating earnings FY’24 Highlights (update) (Millions except EPS) 1Q’24 1Q’25 Highlights $1.40 Adjusted Operating EPS $1.77 $2.00 1Q'25 results are driven by favorable Health Solutions Per Diluted Share performa
Slide 8: Wealth Solutions
Wealth Solutions Contribution from OneAmerica and organic growth driving higher earnings Adjusted Operating Earnings 1Q’25 Highlights (Millions) • Total Defined Contribution net flows totaled $29.4 billion +23% o $0.4 billion of Full-Service and $30.2 $842 billion of Recordkeeping net inflows, befor
Slide 9: Investment Management
Investment Management Strong organic growth supports favorable financial performance Adjusted Operating Earnings 1Q’25 Highlights (Millions) Excludes Non-Controlling Interest +15% • 1Q'25 net flows of $7.7 billion includes $213 growth across a breadth of clients, strategies and channels $185 • 1Q’25
Slide 10: Health Solutions
Health Solutions Improved margins through actions on Stop Loss Adjusted Operating Earnings 1Q’25 Highlights (Millions) • Improvement in Stop Loss ratio: 1Q’24 TTM includes exceptionally favorable Jan-22 Stop Loss o Jan-24 Cohort: 95% at 4Q’24 to 93% at business performance 1Q’25, reflecting positive
Slide 11: Strong Balance Sheet
Strong Balance Sheet Well positioned to navigate market uncertainty Excess RBC Financial $150M Capital1,2 385% Ratio2 above target ratio of 27.5% Leverage ratio within 375% target 25-30% 1. Excess Capital is defined as Statutory Total Adjusted Capital (TAC) in excess of 375% RBC level, net of any ou
Slide 12: Track Record of Generating Consistent Free Cash Flow
Track Record of Generating Consistent Free Cash Flow1 At or above 90% of adjusted-operating earnings Return on Equity ex. 18% 18% 17% 17% AOCI and NOL DTA2 $900 $800 $800 140% $700 $700 $650 $650 120% $600 100% $500 95% 100% Target 90% 90% FCF $40090% $300 80% $200 $200 60% $100 $0 40% Millions1 FY'
Slide 13: 1Q'25 Demonstrates Progress on Near Term Priorities
1Q’25 Demonstrates Progress on Near Term Priorities Wealth Solutions and Investment Management commercial results drive continued strong organic growth OneAmerica integration on track and driving higher earnings Stop Loss execution driving meaningful improvement in Health margins 13
Slide 14: Appendix
VOYA. iss pass Appendix
Slide 15: FY'25 Modeling Considerations
FY’25 Modeling Considerations Wealth Solutions Investment Health Solutions Total Earnings Management Earnings Earnings S&P 500 Change +/- 10% +/- $55 – $75 million +/- $45 – $55 million +/- $10 – $20 million Interest Rate Changes +/- +/- $15 – $35 million +/- $30 – $40 million -/+ $5 – $15 million 1
Slide 16: Seasonality
Seasonality Wealth IM Health Corporate & Other All Segments ▪ Admin expenses tend to be ▪ Defined Contribution tends to have ▪ Group Life loss ratio the highest the highest recurring deposits tends to be highest ▪ Seasonally higher preferred ▪ Payroll taxes and long-term 1Q ▪ Withdrawals tend to inc
Slide 17: 1Q'25 Adjusted Operating to Net Income Walk
1Q’25 Adjusted Operating to Net Income Walk (Millions) Primarily Primarily Primarily Primarily Cash Non-Cash Cash Non-Cash $18 $0 $3 $195 $185 -$10 -$1 -$31 $139 -$12 -$12 4 1Q'24 Adj. Op. Wealth Investment Health Corporate 1Q'25 Adj. Op. Investment Loss on Severance and Amort. of Net Income 1Q'25 E
Slide 18: Wealth Solutions
Wealth Solutions Defined Contribution asset growth, with record net flows, has outpaced industry over time Participant Accounts Have Grown at a 6% CAGR Defined Contribution Assets $800 (2020-2025) Now Exceed 9 Million1 13 (Billions) $700 12 Recordkeeping Full Service $630 11 $600 $549 $229 9.3 10 $4
Slide 19: Wealth Solutions
Wealth Solutions Diversified retirement provider focused on driving profitable growth Contribution to Voya’s Earnings2 ($Millions) Key Priorities Scale provider in defined contribution market: Continued commercial momentum 66%1 • #6 in Plans3 Avg. Historical Adj. Op. Earnings • #5 in Participants3 •
Slide 20: Investment Management
Investment Management Diversified platform drives over $20 billion of net flows in the last twelve months, including over $7 billion in 1Q'25 Assets Under Management $345 Billion Diversified Asset Manager (Billions) (% of AUM) $339 $345 $321 $322 Public Retail Fixed $264 47% Income $246 43% US 77% N
Slide 21: Investment Management
Investment Management Strategically positioned to capitalize on growth opportunities through diversified platforms & solutions Contribution to Voya’s Earnings2 ($Millions) Key Priorities Market rankings: • Top 25 for U.S. Institutional Scale and expand private asset strategies across $222 Client Ass
Slide 22: Investment Metrics
Investment Metrics Long-term investment performance critical to future success – March 2025 Percent of AUM Above Benchmark or Peer Median(1) Represents ~60% 3rd Party AUM 95 92 95 84 86 82 77 79 78 79 75 72 68 62 53 53 53 36 12 14 Equity Multi-Asset Fixed Income & Growth Voya IM Income Total 1 Year
Slide 23: Health Solutions
Health Solutions Stop Loss execution and focus on improving Health margins Loss Ratios for Stop Loss – Policy Year1 View Stop Loss Actions • Executed meaningful rate increases and strengthened risk selection, resulting in a 93% smaller book and better risk profile 87%2 • Achieved an average net effe
Slide 24: Health Solutions
Health Solutions Continued focus on profitable margin, and rate increase at the top end of industry led to stabilizing loss ratios in Stop Loss Contribution to Voya’s Earnings2 ($Millions) Key Priorities Market ranking: • #3 largest direct writer3 Improve Stop Loss margins $35 18% 1 of Stop Loss wit
Slide 25: Well-Diversified Investment Portfolio Built for Through-the-Cycle Risk Adjusted Returns
Well-Diversified Investment Portfolio Built for Through-the-Cycle Risk Adjusted Returns $39 Billion General Account Investment Portfolio1 Fixed Maturity NAIC Rating Distribution 95%+ Investment Grade2 1% Commercial 3% 1A (AAA) Mortgage 11% 23% Limited 1B-G (AA-A) Loans Private Credit Partnerships 4%
Slide 26: Alternatives Portfolio Has Delivered Ongoing Returns
Alternatives Portfolio Has Delivered Ongoing Returns Portfolio has delivered positive performance every year since going public Calendar Year Net Returns1,2(%) GA Alt Portfolio of $1.92 Billion As of 3/31/25 Long-term Return Target: 9% Credit Hedge Funds 6% 1% Real Estate 8% Secondary 8% Private Equ
Slide 27: Prudent Capital Management
Prudent Capital Management 1Q’25 TTM Capital Generation In-Line with 90%+ Target2 (Millions) $400 million from $200 debt issuance in 3Q’24 $600 ($200) ($43) $150 ($400) 4Q'24 Capital Acquisition of Dividends Debt paydown 1Q'25 Excess1 Generation OneAmerica Excess1 Capital and Growth Capital Investme