Voya Financial, Inc. · NYSE:VOYA

Voya Financial — Bank of America Merrill Lynch Insurance Conference 2014

28 slides from Voya Financial's conference presentation, Feb 13, 2014

  1. Slide 1: Bank of America Merrill Lynch Insurance Conference Presentation

    ING U.S. America’s Retirement Company™ RETIREMENT • INVESTMENTS • INSURANCE Bank of America Merrill Lynch Insurance Conference Presentation February 13, 2014

  2. 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

  3. Slide 3: Focus on Execution, Driving Return on Equity Improvement

    ING U.S. TODAY Focus on Execution, Driving Return on Equity Improvement Substantial Leading scope for Strong track franchise in continuing record of attractive Return on execution markets Equity (ROE) improvement 12% 400-500 # 1 publicly traded CAGR in Ongoing Business bps targeted increase in Defin

  4. Slide 4: ING U.S. at a Glance

    ING U.S. at a Glance Diverse Earnings – Three $9.0B Ongoing Businesses  Market cap(1) 74% of earnings from Retirement Solutions and Investment Management(6)  AUM / AUA(2) $511B FY’13 Ongoing Business Adjusted Operating Earnings Before Income Taxes: $1,212 million(6)  Customers(3) 13M Retirement I

  5. Slide 5: Year in Review: 2013 Achievements

    Year in Review: 2013 Achievements  Priced our IPO on May 1, 2013 and Trading Commenced at the NYSE on May Initial Public 2, 2013 Offering  ING Group’s secondary offering on October 23, 2013 reduced its ownership Secondary stake to approximately 57% Offering  Stock price increase of 80% (from May

  6. Slide 6: Three Key Sources of Value

    Three Key Sources of Value Tax Assets Ongoing Potential Provide Business CBVA Value Potential Upside Ongoing Business Retirement • Investments • Insurance 6

  7. Slide 7: The ING U.S. Investment Proposition

    THE ING U.S. STORY Focus on Execution, Driving ROE Improvement The ING U.S. Investment Proposition  Solid foundation 1  Significant progress repositioning the company America’s Retirement Company™  Premier franchise 2  Leveraging three platforms  Driving ROE improvement 3  On track to achieve

  8. Slide 8: ING U.S. Today: A Different Kind of Company

    ING U.S. Today: A Different Kind of Company Today: Value Creation Focus  Capital management  Profitable growth A  Segment synergies Cultural Past: Top Line Focus  Operational efficiency Transformation  Market share  Growth Our Metrics  Acquisitions  Risk-adjusted returns  Sales  Distributa

  9. Slide 9: Established Solid Foundation

    Established Solid Foundation Implemented ROE  30+ ROE improvement initiatives underway improvement plan since 2011  Projected 24 months of HoldCo liquidity Strengthened  Debt to capital ratio below 25% target ratio balance sheet  Estimated combined 4Q’13 RBC ratio of 504%,(1) above target of 425

  10. Slide 10: Closed Block Variable Annuity: Prudently Managed with Focus on Protecting Capital

    Closed Block Variable Annuity: Prudently Managed with Focus on Protecting Capital CBVA Actions Taken Outlook / Goals  Ceased sales in 2010  Hedge program designed to protect regulatory and rating  Separated $45.7B(1) portfolio agency capital from market into a closed block segment movement  Refi

  11. Slide 11: The ING U.S. Investment Proposition

    THE ING U.S. STORY Focus on Execution, Driving ROE Improvement The ING U.S. Investment Proposition  Solid foundation 1  Significant progress repositioning the company America’s Retirement Company™  Premier franchise 2  Leveraging three platforms  Driving ROE improvement 3  On track to achieve

  12. Slide 12: Leveraging Three Strong Platforms

    Leveraging Three Strong Platforms Retirement Investment Insurance Solutions Management Solutions  #1 publicly traded Defined  93% of fixed income  #11 provider of term life Contribution recordkeeper assets and 84% of equity insurance(5) with a full array of assets outperformed  #6 provider of st

  13. Slide 13: Retirement Solutions: Leading Franchise Driving Long-Term Growth

    RETIREMENT SOLUTIONS Leading Franchise Driving Long-Term Growth Adjusted Operating Earnings Positioning: Before Income Taxes(1) ($M)  In all segments of DC market $734  Retirement income solutions $674 $197  Access via institutional relationships $520 $200 $122 Initiatives Include:  Improving ne

  14. Slide 14: Investment Management: Scalable Platform Leveraging Strong Investment Performance

    INVESTMENT MANAGEMENT Scalable Platform Leveraging Strong Investment Performance Adjusted Operating Earnings Positioning: Before Income Taxes(1) ($M)  Full service asset manager $165  Fastest growing business $132  Strong investment performance Initiatives Include: $88  Growing third-party busin

  15. Slide 15: Insurance Solutions: Repositioned to Focus on Capital Efficient Products

    INSURANCE SOLUTIONS Repositioned to Focus on Capital Efficient Products Positioning: Adjusted Operating Earnings Before Income Taxes(1) ($M)  Lower-capital, higher-return Individual Life products $369  Full array of Group Life, Stop Loss, Disability, and Voluntary offerings $83 $312 $287 $102 $109

  16. Slide 16: The ING U.S. Investment Proposition

    THE ING U.S. STORY Focus on Execution, Driving ROE Improvement The ING U.S. Investment Proposition  Solid foundation 1  Significant progress repositioning the company America’s Retirement Company™  Premier franchise 2  Leveraging three platforms  Driving ROE improvement 3  On track to achieve

  17. Slide 17: Comprehensive Plan with Clear Goals

    Comprehensive Plan with Clear Goals Ongoing Business Adjusted Operating Ongoing Business Adjusted Operating ROE Goal ROC Goal 400–500bps 300–400bps 10-11% 12-13% 7.2% 8.3% 2012 Baseline Ongoing 2016 Target Ongoing 2012 Baseline Ongoing 2016 Target Ongoing Business Adjusted Business Adjusted Business

  18. Slide 18: Clear Evidence Our Plan is Working

    Clear Evidence Our Plan is Working Ongoing Business Adjusted Operating ROC(1) 40 bps Interest 39 bps X% Capital Rate 8.6% X% 112 bps Growth X% X% (44) bps X% Margin 42 bps X% 30+ Strategic Initiatives 7.2% X% Monitored and Tracked FY’12 FY’13 Notable items that might not recur contributed to the imp

  19. Slide 19: Each Business Has Its Own ROC / ROE Target

    Each Business Has Its Own ROC / ROE Target and Each Contributed to ROE / ROC Improvement in 2013 (1) Ongoing Business Adjusted Operating ROE / ROCs 2016 Target 2012 2013 Range ROC by Segment: Retirement 7.2% 8.9% 10.0 – 11.0% Annuities 5.9% 7.3% 7.0 – 9.0% Investment Management P/T Op. Margin 24.6%

  20. Slide 20: Focus on Execution, Driving ROE Improvement

    INVESTMENT PROPOSITION Focus on Execution, Driving ROE Improvement Solid foundation  Cultural transformation, new 1 performance metrics, strengthened balance sheet Premier Franchise ING U.S. Value 2  Leading player in attractive markets, broad retirement solutions offering, 13M Proposition custome

  21. Slide 21: RETIREMENT • INVESTMENTS • INSURANCE

    RETIREMENT • INVESTMENTS • INSURANCE

  22. Slide 22: Appendix

    Appendix Retirement • Investments • Insurance 22

  23. Slide 23: Active Hedge Program in Closed Block Variable Annuity

    Active Hedge Program in Closed Block Variable Annuity Change in Statutory Reserves Relative to Hedge 4Q’13 Results ($ billion) Equity impacts (increase) decrease in stat reserve liability  Estimated available Equity impacts increase (decrease) in hedge assets resources of $4.1 billion $1.5  Estima

  24. Slide 24: Profile of the Variable Annuity Closed Block

    Profile of the Variable Annuity Closed Block ($ millions)  VA policies sold primarily between 2001 and 2010 offered living and / or death benefit guarantees  Majority of customer accounts were invested (at customer’s discretion) in equities  Equity market downturn depressed account values Net Amo

  25. Slide 25: Proactively Managed Capital Base

    Proactively Managed Capital Base Adjusted Operating Return Capital as of Capital as % of on Capital for the December 31, Consolidated Year Ended 2013 Capital December 31, 2013 By Segment: Retirement 4,007 27% 8.9% Annuities 1,713 12% 7.3% Investment Management 302 2% 35.4% Individual Life 2,848 19%

  26. Slide 26: Reconciliation of Adjusted Operating Earnings to Net Income

    Reconciliation of Adjusted Operating Earnings to Net Income ING U.S. Reconciliation of Ongoing Business Adjusted Operating Earnings to Net Income (Loss) Year ended Year ended Year ended ($ in millions) December 31, 2013 December 31, 2012 December 31, 2011 Ongoing Business adjusted operating earnings

  27. Slide 27: Reconciliation of Adjusted Operating Earnings by Segment

    Reconciliation of Adjusted Operating Earnings by Segment Year Ended December 31, 2013 Retirement Solutions Investment Insurance Solutions Ongoing Business Closed Block Corporate and Consolidated Retirement Annuities Management Individual Life Employee Benefits Variable Annuity Other Closed Blocks (i

  28. Slide 28: Reconciliation of Adjusted Operating Return on Capital and Return on Equity

    Reconciliation of Adjusted Operating Return on Capital and Return on Equity Year Ended December 31, 2013 Retirement Solutions Investment Insurance Solutions Ongoing Business Closed Block Corporate and Consolidated Retirement Annuities Management Individual Life Employee Benefits Variable Annuity Oth

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