Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Q4 2024 Earnings Presentation
31 slides from Voya Financial's earnings presentation, Feb 5, 2025
Slide 1: Fourth Quarter 2024 Results and 2025 Outlook Call
Voya Financial Fourth Quarter 2024 Results and 2025 Outlook Call Information contained herein is proprietary, confidential and non-public and is not for public release. 1
Slide 2: Forward-Looking and Other Cautionary Statements
Forward-Looking and Other Cautionary Statements 2
Slide 3: Key Themes & Strategic Priorities
Key Themes & Strategic Priorities Information contained herein is proprietary, confidential and non-public and is not for public release. 3
Slide 4: Key Themes: Poised for Meaningful Growth in FY'25
Key Themes: Poised for Meaningful Growth in FY’25 Health Solutions ❑ Positioned for ❑ Meaningful ▪ Improvement in FY’25 ▪ ❑ Core Business Growth ▪ in FY’25 Supported by ❑ Commercial Success in ▪ FY'24 ▪ ❑ Balancing Capital ❑ Return with Key ❑ Growth Investments ❑
Slide 5: Key Near Term Execution Priorities
Key Near Term Execution Priorities ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼ ◼
Slide 6: Investment in Health Solutions Supports Long Term Strategy
Investment in Health Solutions Supports Long Term Strategy ❑ Improves customer experience and assists employers in managing leave management complexities ❑ Increases Voya’s competitiveness of bundled Health Solutions ❑ Improves win rates and revenue retention in Group Life and Voluntary
Slide 7: Voya's Anchor Investment with Allianz in Sconset Re
Voya’s Anchor Investment with Allianz in Sconset Re ◼ Voya Expands Into o Growing Insurance o Sidecar Market ◼ ◼ Builds Voya IM’s ◼ Business in Growing o Markets o Deepens Strategic ◼ Partnership with ◼ Allianz Attractive Financial ◼ Terms ◼
Slide 8: Business Segment Performance & Financial Highlights
Business Segment Performance & Financial Highlights Information contained herein is proprietary, confidential and non-public and is not for public release. 8
Slide 9: 4Q'24 and FY'24 Financial Results
4Q’24 and FY’24 Financial Results 4Q’23 4Q’24 FY’23 FY’24 Drivers Adjusted Operating EPS $1.63 $1.40 $7.02 $7.25 Adjusted Operating Earnings $174 $138 $763 $736 Net Income $118 $93 $589 $626 Capital Generation $0.2B $0.1B $0.8B $0.7B
Slide 10: Health Solutions
VOYA.. sn mes roe Health Solutions Expect loss ratios for Stop Loss to improve 5 — 15% in 2025 95% Implied 80-90% Expected Jan-24 Loss Ratio Net premium rate Improved risk increase, less selection expected increase in medical claims cost in 2025 Expected Jan-25 Loss Ratio Executed meaningful rate in
Slide 11: Health Solutions
Health Solutions Adjusted Operating Earnings Key Drivers of Earnings in 2024 ▪ ▪ o Key Considerations for 2025 ▪ ▪ ▪
Slide 12: Wealth Solutions
Wealth Solutions Participant Accounts Exceed 7 Million1 Full Service – Client Assets Spread-Based Fee-Based $155 $179 $133 $154 $129 $112 $31 $33 $33 $33 $31 $29 FY'19 FY'20 FY'21 FY'22 FY'23 FY'24 ▪
Slide 13: Wealth Solutions
Wealth Solutions Adjusted Operating Earnings Key Drivers of Earnings in 2024 ▪ ▪ o o Key Considerations for 2025 ▪ ▪ ▪ ▪
Slide 14: Investment Management
Investment Management Assets Under Management $339B Diversified Asset Manager
Slide 15: Investment Management
Investment Management Adjusted Operating Earnings Key Drivers of Earnings in 2024 ▪ ▪ o o o Key Considerations for 2025 ▪ ▪ ▪
Slide 16: Balanced Capital Deployment in 2025
Balanced Capital Deployment1 in 2025
Slide 17: Capital Generation Expected to Improve Meaningfully in 2025 and 2026
Capital Generation1 Expected to Improve Meaningfully in 2025 and 2026
Slide 18: 2025 Outlook and Assumptions
2025 Outlook and Assumptions • • • • •
Slide 19: Appendix
VOYA. Plan. Invest. Protect. Appendix
Slide 20: Analyst Modeling Considerations
Analyst Modeling Considerations Alternative Income & ■ Prepayment ■ Wealth ■ Solutions ■ ■ Health ■ Solutions ■ ■ Investment ■ Management ■ ■ Corporate ■ ■ Wealth Solutions Earnings Health Solutions Earnings Investment Management Earnings Sensitivities4
Slide 21: Seasonality
Seasonality Wealth Health IM Corporate & Other All Segments ▪ ▪ ▪ ▪ ▪ 1Q ▪ ▪ ▪ ▪ 2Q ▪ ▪ ▪ ▪ 3Q ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 4Q ▪ ▪ ▪
Slide 22: FY'24 Financial Results
FY’24 Financial Results Adjusted Operating Net Revenue Adjusted Operating Adjusted Operating Capital Return EPS1 Growth2,3 Margin2,3 ROE 2,3 $7.25 $0.8B (0.9%) 29.6% 13.2%
Slide 23: 4Q'24 Adjusted Operating to Net Income Walk
4Q’24 Adjusted Operating to Net Income Walk
Slide 24: FY'24 Adjusted Operating to Net Income Walk
FY’24 Adjusted Operating to Net Income Walk
Slide 25: 4Q'24 Notable Items Impacts
VOYA. Plan. Invest. Protect. 4Q’24 Notable Items Impacts Note: Totals may not sum due to rounding ‘Adjusted Operating Earnings! Alternative Income Abovel(Below) Adjusted Operating Earnings ‘Wealth Solutions $210 $(10) $220 Health Solutions (102) i) (102) Investment Management 66 2) 6 Corporate (27)
Slide 26: FY'24 Notable Items Impacts
VOYA. Plan. Invest. Protect. FY’24 Notable Items Impacts Note: Totals may not sum due to rounding Alternative Income Above/(Below) Expectations Adjusted Operating Earnings. falsity Rami) and other notables? (ex. Notables) Wealth Solutions $820 $(53) $873 Health Solutions 40 ” 47 Investment Managemen
Slide 27: Investment Metrics
Investment Metrics 95 89 95 95 83 82 88 86 84 85 80 67 71 72 73 71 69 72 68 56 Equity Multi-Asset Fixed Income & Growth Voya IM Income Total 1 Year 3 Year 5 Year 10 Year
Slide 28: January 2024 Cohort Loss Ratio is Set at 95%
January 2024 Cohort Loss Ratio is Set at 95%, within the 90-105% Range Previously Disclosed1 Loss Ratios for Stop Loss – Policy Year2 View 18% 18% 16% 13% 12% ❑ ❑ ❑
Slide 29: Alternatives Portfolio Has Delivered Favorable Investment Performance Over Time
Alternatives Portfolio Has Delivered Favorable Investment Performance Over Time Calendar Year Net Returns1,2 (%) GA Alt Portfolio of $1.83 Billion As of 12/31/24 44% 17% 16% 15% 12% 12% 11% 12% 7% 5% 5% 2% 3%
Slide 30: Well-Diversified Investment Portfolio Built for Through-the-Cycle Risk Adjusted Returns
Well-Diversified Investment Portfolio Built for Through-the-Cycle Risk Adjusted Returns $37 Billion General Account Investment Portfolio1 Fixed Maturity NAIC Rating Distribution 95%+ Investment Grade2 1% 3% 1A (AAA) 11% 1B-G (AA-A) 2A (BBB+) 18% 2B (BBB) 2C (BBB-) 3 (BB) 13% 31% 4-6 (B or lower)
Slide 31: Well Diversified and High-Quality CML Portfolio
Well Diversified and High-Quality CML Portfolio Highly Rated Portfolio Voya Underwritten Loan to Value (LTV)1 CM1 CM2 CM3 >CM3 Debt Service Loan to Value (LTV) At Book Voya Property Type Coverage Ratio2 Funding Member Appraisal Value % Underwritten LTV (DSCR) Institute (MAI) 26% 2.1 45% 56% 23% 1.6