Voya Financial Achieves Q2 2024 Results as Expected

Voya Financial Reports Strong Q2 2024 Performance

Voya Financial, Inc. recently announced its impressive performance for the second quarter of 2024, achieving key financial goals and positioning itself well for the full year. The company reported adjusted operating earnings per share (EPS) of $2.18, alongside a GAAP net income of $201 million. Notably, Voya has demonstrated significant fee-based revenue growth in its Wealth and Investment Management segments while maintaining a solid excess capital position of approximately $200 million. With these results, Voya is on track to hit an EPS target between $8.25 and $8.45 for the year. Although the company faced higher-than-anticipated loss ratios in its Health segment, its Workplace Solutions and Investment Management sectors are exhibiting positive growth, with expectations to meet a 2% organic growth target for the year.

Key Highlights:

• Adjusted operating EPS reached $2.18 in Q2 2024.
• Strong fee-based revenues were recorded in the Wealth and Investment Management areas.
• Efforts to address increased loss ratios in Health remain a priority, but confidence remains high in achieving the full-year EPS target of $8.25 to $8.45.
• Positive net inflows totaled $4.8 billion, with improvements noted in institutional net cash flows.
• Voya Investment Management reported adjusted operating earnings of $50 million, reflecting a 5% increase in year-over-year net revenues.
• Plans are in place to return over $800 million to shareholders in 2024, with the goal of expanding operating margins by at least 100 basis points.

Outlook for the Company:

• Voya Financial is optimistic about achieving its full-year EPS target of $8.25 to $8.45.
• The company anticipates meeting its 2% organic growth goal for the year.
• Management is preparing to refinance $400 million of debt due in early 2025, indicating confidence in their balance sheet positioning.

Challenges Noted:

• The company is facing higher-than-expected loss ratios in Health, particularly within its Stop Loss business.
• Estimated growth in the Stop Loss segment is projected to fall below the anticipated 7% to 10% range.
• Notable declines in spread-based assets within the Wealth Solutions division were observed, driven by participant surrenders and rising crediting rates.

Positive Trends:

• Voya’s Workplace Solutions segment is gaining traction and momentum.
• Voya Investment Management continues to show strength in both institutional and retail markets.
• The office commercial mortgage loan portfolio is performing well, with minimal fluctuations.

Expectations Going Forward:

• While participant surrender rates may stay elevated in the latter half of the year, management remains focused on mitigating this through various strategic initiatives.
• The fee margin accompanying the Health business has decreased due to seasonal trends.
• Executives are optimistic about improving loss ratios in the Health business moving forward and are focused on driving innovation and strategic executions within the Retail Wealth Management segment.

Overall, Voya Financial’s Q2 performance signals a company strategically adapting to market dynamics while maintaining strong growth and a focus on shareholder value. With a commitment to financial targets and customer support, the company is well-positioned for continued success in the financial sector.