Voya Financial, Inc. · NYSE:VOYA
Voya Financial — Q2 2024 Earnings Presentation
31 slides from Voya Financial's earnings presentation, Jul 31, 2024
Slide 1: Second Quarter 2024 Investor Presentation
Voya Financial Second Quarter 2024 Investor Presentation 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 & Executing our Strategy
Key Themes & Executing our Strategy Information contained herein is proprietary, confidential and non-public and is not for public release. 3
Slide 4: 2Q'24 Highlights: Executing our Strategy and Achieving Financial Targets
2Q’24 Highlights: Executing our Strategy and Achieving Financial Targets Strategic execution Strong cash flow On track to driving further generation and achieve full year commercial disciplined capital targets momentum return 4
Slide 5: On Track to Achieve Full Year 2024 Targets
On Track to Achieve Full Year 2024 Targets Adjusted Operating Excess Capital Net Revenue Adjusted Operating Adjusted Operating EPS1 Generation Growth (TTM)3,4 Margin (TTM)3,4 ROE (TTM) 3,4 $2.18 $0.2B 3.1% 31.4% 14.4% 5
Slide 6: Strategic Execution in Workplace Solutions Driving Growth
Strategic Execution in Workplace Solutions Driving Growth Competitive Strategic Priorities Examples of Execution Advantages Competitive Land ▪ ▪ Advantages ▪ ▪ ▪ ▪ ▪ Expand ▪ ▪ ▪ ▪ Deepen ▪ ▪ ▪ 6
Slide 7: Strategic Execution in Investment Management Driving Growth
Strategic Execution in Investment Management Driving Growth Competitive Strategic Priorities Examples of Execution Advantages ▪ Deliver Exceptional ▪ Outcomes for Clients ▪ ▪ ▪ Scale Our Industry Leading Solutions ▪ ▪ Expand into ▪ Adjacent Private and ▪ Alternative Strategies ▪ 7
Slide 8: Voya Culture – Living our Purpose and Vision
Voya Culture – Living our Purpose and Vision Improving Access to Holistic Guidance and Financial Education for our Customers, Colleagues and Communities 8
Slide 9: 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. 9
Slide 10: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results Drivers 2Q’23 2Q’24 Adjusted Operating EPS $2.21 $2.18 Adjusted Operating Earnings $243 $223 Net Income $154 $201 Capital Generation $0.2B $0.2B 10
Slide 11: Wealth Solutions
Wealth Solutions Participant Accounts Exceed 7 Million1 Full Service – Client Assets 620 Defined Contribution (DC) Client Assets (Billions) 11 Participant Accounts (Millions) Spread-Based Fee-Based 520 10 9 420 8 320 $155 $154 $169 $133 $129 7 $112 220 6 120 $31 $33 $33 $33 $31 $30 5 2019 2020 2021
Slide 12: Wealth Solutions
Wealth Solutions Adjusted Operating Earnings Key Drivers of Earnings ▪ ▪ ▪ o 12
Slide 13: Health Solutions
Health Solutions Annualized In-Force Premium & Fees Aggregate Loss Ratio2 FY'19 FY'20 FY'21 FY'22 FY'23 FY'24E 13
Slide 14: Health Solutions
Health Solutions Adjusted Operating Earnings Key Drivers of Earnings ▪ o ▪ ▪ 14
Slide 15: Investment Management
Investment Management $336B Diversified Asset Manager with significant Assets Under Management breadth across strategies, channels and client assets 15
Slide 16: Investment Management
Investment Management Adjusted Operating Earnings Key Drivers of Earnings ▪ ▪ $163 ▪ o $50 $50 16
Slide 17: Strong Cash Flow Generation and Disciplined Capital Return
Strong Cash Flow Generation and Disciplined Capital Return 2Q’24 capital generation in-line with 90%+ target Highlights ▪ o o o ▪ o o ▪ o ▪ ▪ 17
Slide 18: 2Q'24 Highlights: Executing our Strategy and Achieving Financial Targets
2Q’24 Highlights: Executing our Strategy and Achieving Financial Targets Building Commercial On Track To Achieve Disciplined and Balanced Momentum in Diversified Full Year Targets for 2024 Capital Management Businesses ▪ ▪ ▪ ▪ ▪ ▪ 18
Slide 19: Appendix
VOYA Appendix Information contained herein is proprietary, confidential and non-public and is not for public release.
Slide 20: 2Q'24 Adjusted Operating to Net Income Walk
2Q’24 Adjusted Operating to Net Income Walk 20
Slide 21: Analyst Modeling Considerations
Analyst Modeling Considerations Alt. Income & ■ Prepayment ■ Wealth ■ Solutions ■ ■ ■ Health ■ Solutions ■ Investment ■ Management ■ ■ Corporate ■ ■ Wealth Solutions Earnings Health Solutions Earnings Investment Management Earnings Investment Management Margin Sensitivities3 21
Slide 22: Seasonality
Seasonality Wealth Health IM Corporate & Other All Segments ▪ ▪ ▪ ▪ ▪ 1Q ▪ ▪ ▪ ▪ ▪ 2Q ▪ ▪ ▪ ▪ 3Q ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 4Q ▪ ▪ ▪ ▪ 22
Slide 23: 2Q'24 Notable Items Impacts
2Q’24 Notable Items Impacts 23
Slide 24: Investment Metrics
VOYA. Investment Metrics Strong long-term investment performance critical to future success — June 2024 t 1 Represents >64% 1 \ 1 1 3" Party AUM } Percent of AUM Above Benchmark or Peer Median” 94 94 89 91 80 85 85 Equity Multi-Asset Fixed Income & Growth Voya IM Income Total m1 Year m3 Year m5 Year
Slide 25: Stop Loss
Stop Loss Historical Loss Ratios ▪ o o o Net Underwriting Gains (millions) ▪ o ▪ o 25
Slide 26: Retail Wealth Management Supports Addressing the Need for Holistic Advice
Retail Wealth Management Supports Addressing the Need for Holistic Advice to Clients as Part of Our Workplace Strategy Broad and growing advisory support model With complete solutions to address client needs ▪ ▪ ▪ ▪ ▪ 26
Slide 27: Alternatives Portfolio Has Delivered Favorable Investment Performance Over Time
Alternatives Portfolio Has Delivered Favorable Investment Performance Over Time Calendar Year Net Returns1,2,3 (%) GA Alt Portfolio of $1.74 Billion As of 6/30/24 44% 17% 16% 15% 12% 12% 11% 12% 8% 5% 5% 2% 3% 27
Slide 28: 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 96%+ Investment Grade2 1% 3% 1A (AAA) 12% 1B-G (AA-A) 2A (BBB+) 17% 2B (BBB) 2C (BBB-) 3 (BB) 31% 13% 4-6 (B or lower) 28
Slide 29: 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 Value % Underwritten LTV (DSCR) Appraisal Institute (MAI) ▪ ▪ o o ▪ ▪ 29
Slide 30: Near Term CML Office Maturity Amounts are Modest and Manageable
Near Term CML Office Maturity Amounts are Modest and Manageable Office Loan Call/Maturity Schedule by Year1 CML Office: Weighted Average Voya UW LTV of 69% and DSCR of 2.1x2 ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ 30
Slide 31: CMBS Portfolio Highly Rated and Well Diversified
CMBS Portfolio Highly Rated and Well Diversified $3.9B1 Credit CMBS Book Value % Enhancement2 ▪ ▪ ▪ ▪ 31