Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Q3 2018 Earnings Presentation
21 slides from Voya Financial's earnings presentation, Oct 31, 2018
Slide 1: Voya Financial Third Quarter 2018 Investor Presentation
Voya Financial Third Quarter 2018 Investor Presentation October 31, 2018
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. 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 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, Chief Financial Officer 3
Slide 4: Key Themes
Key Themes Normalized 3Q’18 adjusted operating earnings of $1.34 per share is Delivering on within target range¹ Strong Earnings Pre-tax adjusted operating earnings grew 17% year-over-year¹ Growth Retirement achieved another quarter of record earnings Retirement full-service recurring deposi
Slide 5: Strategic Review Decision Results in Additional Shareholder Value
Strategic Review Decision Results in Additional Shareholder Value Individual Life, while retained, will be closed for new business Focused on higher-growth, higher-return, capital-light businesses Strategic review identified near term initiatives that will drive Strategic improved earnings and r
Slide 6: Continued Recognition of Strong Culture
Continued Recognition of Strong Culture Named a Great Place to Work® by Named to the Dow Jones the Great Place to Work Institute Sustainability Index Recognized as one of the World’s Best Record employee participation and Employers by Forbes contributions in 2018 campaign 6
Slide 7: Agenda
Agenda 1. Key Themes and Strategic Priorities Rod Martin, Chairman and Chief Executive Officer 2. Business Segment Performance and Financial Highlights Mike Smith, Chief Financial Officer 7
Slide 8: Third Quarter 2018 Results – Financial Highlights
Third Quarter 2018 Results – Financial Highlights After-tax Adjusted Operating Net Income Available to Common Earnings¹ (Normalized) Shareholders² $1.34 per diluted $142 million share Excludes: 3Q’18 Includes: 3Q’18 Deferred acquisition costs and value of $(0.70) Adjusted operating earnings $139
Slide 9: Retirement – Leading Franchise Driving Long-Term Growth and Improving Returns
Retirement – Leading Franchise Driving Long-Term Growth and Improving Returns Adjusted Operating Earnings ($ millions)1 Full Service Client Assets ($ billions) Current Quarter TTM $129 $680 $125 $123 $123 $574 $119 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Full Service ($ millions) $203 $151 Recurring Deposits
Slide 10: Investment Management – Continued Strong Performance Across Multiple Investment Platforms and Distribution Channels
Investment Management – Continued Strong Performance Across Multiple Investment Platforms and Distribution Channels Adjusted Operating Earnings ($ millions)1 AUM ($ billions) transferred Assets in sale of Annuities Current Quarter TTM business $222 $224 $222 $253 $207 $210 $221 $140 $142 $141 $152 $
Slide 11: Employee Benefits – High Returns and Capital Generation Business
Employee Benefits – High Returns and Capital Generation Business Adjusted Operating Earnings ($ millions)1 Annualized In-Force Premiums ($ millions) Current Quarter TTM $1,914 $1,916 $1,849 $148 $1,714 $312 $309 $128 $1,604 $257 $213 $183 $969 $938 $956 $874 $824 $58 $50 3Q'17 3Q'18 3Q’17 3Q’18 Incl
Slide 12: Individual Life – Disciplined Management of In-Force Block
Individual Life – Disciplined Management of In-Force Block Adjusted Operating Earnings ($ millions)1 Net Underwriting Gain ($ millions) Current Quarter TTM $213 $213 $210 $256 $194 $192 $225 $77 $66 $59 $57 $52 $42 $41 3Q'17 3Q'18 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 Current Quarter TTM 3Q’17 3Q’18 Include
Slide 13: Adjusted Operating EPS Considerations
Adjusted Operating EPS Considerations 3Q’18 Financial Results Reported 3Q’18 Adjusted Operating EPS1 $0.84 Includes: DAC/VOBA and other intangibles unlocking $(0.70) Prepayment fees and alternative income above long-term expectations $0.20) 4Q’18 Considerations2 Potential Beneficial Items: Sha
Slide 14: Capital Position is Strong
Capital Position is Strong Excess Capital Estimated Combined RBC Ratio¹ Debt-to-Capital Ratio5 ($ millions)4 Target: 425% Target: 30% $813 29.0% 483% 26.3% 476% 474% 463% 452% 22.7% $518 Estimated Statutory Surplus in Excess of 425% RBC Level Holding Co. Working Capital $295 Above Target2,3,4 3Q'17
Slide 15: Attractive Valuation with Share Repurchases on Track for 2018
Attractive Valuation with Share Repurchases on Track for 2018 Implied Voya Valuation Share Repurchases ($ per share) ($ millions) $1,500 $41.38 $8.96 $1,250 $32.42 Implied 6.1x forward P/E $500 multiple3 $247 Current Deferred Adjusted YTD’18 YTD'18 Share FY’18 Fy'18 Shre New New Repurchase Stock Pri
Slide 16: Helping Americans Get Ready to Retire Better
Helping Americans Get Ready to Retire Better 1 Delivering on Strong Earnings Growth 2 Continued Momentum Across Businesses 3 Capital Position is Strong 16
Slide 17: Appendix
Appendix ee VOYA. PLAN | INVEST | PROTECT 7 FINANCIAL
Slide 18: Growth Initiatives in 3Q'18
Growth Initiatives in 3Q’18 2018 Growth Metrics 2018 Results • 3Q’18: -6% y-o-y Small/Mid Corporate: Deposits +5% to +10% • YTD’18: -8% y-o-y Retirement • 3Q’18: -16% y-o-y Tax-exempt: Deposits 0% to +5% • YTD’18: -13% y-o-y • 3Q’18: -26% y-o-y Institutional: Sales -5% to 0% • YTD’18: -23% y-o
Slide 19: Seasonality of Financial Items
Seasonality of Financial Items 9. 1Q 2Q 3Q 4Q Corporate Markets tends to Education Tax-Exempt Markets Corporate Markets typically see have the highest recurring typically see lowest recurring highest transfer / single Retirement deposits deposits deposits Withdrawals also tend to Withdrawa
Slide 20: Analyst Modeling Considerations
Analyst Modeling Considerations Long-term prepayment income expectation in 2018 (pre-tax, pre-DAC): $8 million for Retirement; $3 million for Prepayment Income and Individual Life Alternative Income Approximately 9% annual long-term expected returns (pre-tax, pre-DAC) for alternative income Fu
Slide 21: FINANCIAL
® FINANCIAL PLAN | INVEST | PROTECT a1 FINANCIAL