Voya Financial to acquire OneAmerica Financial’s retirement plan business
September 11 2024 - 7:30AM
Business Wire
- Over $60 billion of assets under administration (AUA) adds
scale to Voya’s full-service business in Wealth Solutions,
increasing total AUA to $580 billion, with retirement plan and
participant count growing to 60,000 and 7.9 million.
- Advances Voya’s Workplace growth strategy with $47 billion
of full-service AUA in attractive emerging and mid-market segments,
a broader set of capabilities including employee stock ownership
plan administration and new opportunities for distribution
partnerships.
- Adds value for OneAmerica Financial’s retirement plan clients
and their participants by providing access to Voya’s market-leading
customer digital experience and core recordkeeping services.
Voya Financial, Inc. (NYSE: VOYA) and OneAmerica Financial,
Inc., a diversified mutual insurance organization, today announced
that the companies have entered into a definitive agreement for
Voya to acquire OneAmerica Financial’s full-service retirement plan
business. The acquisition adds strategically attractive scale to
Voya’s full-service retirement business within Wealth Solutions,
providing Voya with a broader set of capabilities that complement
its existing product suite, including competitive employee stock
ownership plan administration, and new opportunities to expand
Voya’s distribution footprint and deepen its existing advisor
relationships.
OneAmerica Financial’s full-service retirement plan business
comprises 401(k), 403(b), 457, non-qualified deferred compensation
plans and employee stock ownership plans. The transaction adds
approximately $47 billion of assets to Voya’s strategically
important full-service Emerging and Mid-Market segments and extends
the firm’s leadership position in the Large Market by adding
approximately $15 billion of recordkeeping assets.1 As a result of
the acquisition, Voya’s Wealth Solutions Defined Contribution
client assets will grow to $580 billion, with total retirement plan
and participant count reaching 60,000 and 7.9 million,
respectively.1
“This announcement is an exciting opportunity to add scale and
new capabilities to our Wealth Solutions business that will help
advance our growth strategy by offering workplace benefits and
savings solutions to more individuals,” said Heather Lavallee, CEO,
Voya Financial. “Voya is a purpose-driven company focused on
supporting improved financial outcomes for our customers.
OneAmerica is equally passionate about enabling financial security
for their customers, making them a strong fit for Voya.”
“OneAmerica Financial is placing its retirement business in the
hands of an organization that can deliver industry-leading
offerings,” said Scott Davison, chairman, president and CEO of
OneAmerica Financial, Inc. “For 60 years, we have been committed to
serving the retirement market by helping our customers face every
day with greater certainty. Voya is the firm to deliver on that
commitment. We see this as a great opportunity for our customers
and the OneAmerica Financial associates that will continue to grow
with Voya, while we will focus on our remaining core product lines
where we see tremendous growth potential.”
Delivering a broad range of solutions and capabilities to
clients and intermediaries by adding scale to Voya’s full-service
retirement business in Wealth Solutions
With the ability to serve employers and plans of all segments
and sizes, including startup, Emerging and Mid, Large and Mega
market plans, the acquisition of OneAmerica Financial’s
full-service retirement plan business reflects Voya’s commitment to
growing its Workplace Solutions businesses, supporting more
participants with their workplace benefits and savings needs.
“This acquisition fully aligns with Voya’s relentless focus on
customer satisfaction, leveraging the strength and expertise of two
dedicated organizations who deliver a variety of workplace benefits
and savings solutions,” said Rob Grubka, CEO, Workplace Solutions,
Voya Financial. “OneAmerica’s broad range of retirement
capabilities, combined with our existing product suite and digital
solutions, provides an opportunity to extend Voya’s reach across
all market segments to deliver health, wealth and investment
solutions through the workplace and institutions.”
The transaction expands the services Voya provides to workplace
benefits and savings plans it serves today across all markets, tax
codes and employer sizes. This includes OneAmerica Financial’s
competitive employee stock ownership program and the benefits of
its broad reach across the advisor community, bringing new and
increased intermediary relationships to help expand Voya’s
footprint.
“OneAmerica is centered around the people we serve, and we are
deeply passionate about what we do,” said Sandy McCarthy, president
of Retirement Services at OneAmerica Financial. “Our goal has
always been to take our business to the next level to continuously
improve our clients’ experiences to better optimize their outcomes.
Voya shares this vision, and we are excited to see how our
customers and associates will benefit in this new chapter.”
The transaction is expected to close on Jan. 1, 2025, subject to
customary closing conditions, including regulatory approvals.
Additional information on the transaction and its financial impact
has been made available in a supplemental investor presentation on
Voya’s investor relations website at investors.voya.com. Voya
intends to provide more details on the transaction during its
third-quarter 2024 earnings call.
Citi is serving as financial advisor and Eversheds Sutherland
LLP is serving as legal counsel to Voya in connection with this
transaction.
Goldman Sachs & Co. LLC is serving as financial advisor and
Sidley Austin, LLP is serving as legal counsel to OneAmerica
Financial Partners in connection with this transaction.
About Voya Financial®
Voya Financial, Inc. (NYSE: VOYA) is a leading health, wealth
and investment company with approximately 9,000 employees who are
focused on achieving Voya’s aspirational vision: “Clearing your
path to financial confidence and a more fulfilling life.” Through
products, solutions and technologies, Voya helps its 15.2 million
individual, workplace and institutional clients become well
planned, well invested and well protected. Benefitfocus, a Voya
company and a leading benefits administration provider, extends the
reach of Voya’s workplace benefits and savings offerings by
engaging directly with over 12 million employees in the U.S.
Certified as a “Great Place to Work” by the Great Place to Work®
Institute, Voya is purpose-driven and committed to conducting
business in a way that is economically, ethically, socially and
environmentally responsible. Voya has earned recognition as: one of
the World’s Most Ethical Companies® by Ethisphere; a member of the
Bloomberg Gender-Equality Index; and a “Best Place to Work for
Disability Inclusion” on the Disability Equality Index. For more
information, visit voya.com. Follow Voya Financial on Facebook,
LinkedIn and Instagram.
1. Based on OneAmerica Financial, Inc., and Voya Financial data
as of June 30, 2024.
VOYA-IR VOYA-CF VOYA-RET
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version on businesswire.com: https://www.businesswire.com/news/home/20240911232140/en/
Media Contacts: Laura Maulucci Voya Financial (508)
353-6913 Laura.Maulucci@voya.com Jim Gavin OneAmerica Financial
(317) 319-9172 James.Gavin@oneamerica.com Investor Contact:
Mei Ni Chu Voya Financial (212) 309-8999 IR@voya.com
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