Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Q1 2022 Earnings Presentation
20 slides from Voya Financial's earnings presentation, May 4, 2022
Slide 1: Voya Financial First Quarter 2022 Investor Presentation
Voya Financial First Quarter 2022 Investor Presentation May 4, 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 ■ 1Q'22 adjusted operating earnings of $1.47 per share1 ■ Supported by pre-tax adjusted operating earnings of $209 million Strong EPS Growth ■ 1Q’22 adjusted operating earnings excluding notable items of $1.42 per share, up 15% compared with 1Q’21 ■ Wealth Solutions generated positive Ful
Slide 5: Advancing our Culture and Values
Advancing our Culture and Values Earned recognition as one of Named to S&P Global’s Partnered with CEO Action for the World’s Most Ethical Sustainability Yearbook Diversity & Inclusion to Companies for the ninth recognize a Day of consecutive year Understanding 5
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: First Quarter 2022 Results – Financial Highlights
First Quarter 2022 Results – Financial Highlights After-tax Adjusted Operating Net Income (Loss) Available to Earnings Per Share¹ Common Shareholders 1Q’22 1Q’22 $1.47 $27 per diluted share million Notable Items 1Q’22 Includes 1Q’22 ■ Alternative investment income and prepayment ■ Adjusted operating
Slide 8: Wealth Solutions – Delivering Strong Earnings and Operating Margin with Diverse Revenue Mix
Wealth Solutions – Delivering Strong Earnings and Operating Margin with Diverse Revenue Mix Adjusted Operating Earnings1 ($ millions) Full Service Client Assets ($ billions) Current Quarter TTM Spread-based Fee-based $188 $178 $1,060 $171 $575 $138 $155 $145 Includes: Alternative Income $255 and Pre
Slide 9: Health Solutions – Continuing Growth in Revenue and Premiums
Health Solutions – Continuing Growth in Revenue and Premiums, while Maintaining Strong Pricing Discipline Adjusted Operating Earnings1 ($ millions) Annualized In-Force Premiums ($ millions) Current Quarter TTM Group Life & Disability Stop Loss Voluntary $2,705 $189 $2,466 $2,510 $179 $678 $554 $576
Slide 10: Investment Management – Higher Revenues from Growth in Privates and Alts
Investment Management – Higher Revenues from Growth in Privates and Alts, Leading to Higher Margins Over Time Adjusted Operating Earnings1 ($ millions) Assets Under Management ($ billions) Current Quarter TTM Fixed Income - Public & Other 3 Equity Privates and Alternatives $227 $264 $253 $210 $249 P
Slide 11: Disciplined and Opportunistic Capital Management
Disciplined and Opportunistic Capital Management 1Q’22 Capital Deployed Debt Extinguishment $0.6 billion $713 million1 Excess Capital2 as of 3/31/22 $2.0 billion TTM Capital Deployed $0.9 billion Dividends $81 million Share Repurchases $1.4 billion $500 Additional share repurchase Estimated Combined
Slide 12: Voya is a Leading Wealth, Health, and Investment Company
Voya is a Leading Wealth, Health, and Investment Company 1 Strong EPS Growth 2 Continued Momentum Across All Businesses 3 Disciplined and Opportunistic Capital Management 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 ■ 2022 Full Service
Slide 17: 1Q'22 and 1Q'21 Notable Items Impacts
1Q'22 and 1Q'21 Notable Items Impacts Investment Income Net of Variable and Adjusted Operating Incentive Covid-19 Impacts3 Other Notables4 Earnings1 1Q'22 Compensation Above (Below) Expectations2 Wealth Solutions $205 $52 – $(16) Health Solutions 22 5 (35) – Investment Management 39 2 – – Corporate
Slide 18: Reconciliation of 1Q'22 Adjusted Operating Earnings to Net Income
Reconciliation of 1Q'22 Adjusted Operating Earnings to Net Income ($ millions; all figures are after-tax) 172 (69) 3 (37) (4) (17) (20) 27 Adjusted Net Investment Gains (Losses) Income (Loss) Income (Loss) Net Guaranteed Other 2 Net Income Operating Gains (Losses) Related to Related to on Early Bene
Slide 19: Reliable Long-Term Investment Performance Critical to Future Success
Reliable Long-Term Investment Performance Critical to Future Success 1Q 2022 % AUM Above Benchmark or Peer Median1 94 95 98 86 84 75 74 67 57 41 29 16 Equity Multi-Asset Fixed Voya IM Income Total 3 Year 5 Year 10 Year 1. Voya Investment Management calculations as of March 31, 2022. Metrics presente
Slide 20: Well-Diversified Investment Portfolio Built for Through-The-Cycle Risk Adjusted Returns
Well-Diversified Investment Portfolio Built for Through-The- Cycle Risk Adjusted Returns $41 Billion General Account Investment Portfolio1 Munis LP/Equity 2% 5% Short Term / Minimal GA Exposure to Eastern Europe Treasury 5% 2% Region Exposure % of GA 44% Russia $14 million 0.03% Public Corporate CML