Voya Financial, Inc. (NYSE: VOYA) announced today its
fourth-quarter and full-year 2024 financial results:
- Fourth-quarter 2024 net income available to common shareholders
of $93 million, or $0.94 per diluted share, and after-tax adjusted
operating earnings1 of $138 million, or $1.40 per diluted
share.
- Full-year 2024 net income available to common shareholders of
$626 million, or $6.17 per diluted share, and after-tax adjusted
operating earnings1 of $736 million, or $7.25 per diluted
share.
- Strong results in Wealth Solutions and Investment Management
for the fourth quarter and full year were offset by higher loss
ratios in Health Solutions.
- Returned $800 million of capital through share repurchases and
dividends in 2024.
- Completed acquisition of OneAmerica Financial's full-service
retirement plan business on Jan. 2, 2025.
- Invested capital in Sconset Re to further Investment
Management's leading position in third-party insurance asset
management.
“We are pleased to report strong revenue growth, margin
expansion and commercial momentum in our Wealth Solutions and
Investment Management businesses for the fourth-quarter and
full-year 2024,” said Heather Lavallee, chief executive officer,
Voya Financial. “These results were offset by higher loss ratios in
Health Solutions, primarily in our Stop Loss business where we have
executed meaningful rate increases and strengthened underwriting
risk selection. As a result, we expect improved profitability in
our Stop Loss business in 2025.”
“We generated $650 million of excess capital and delivered on
our commitment to return $800 million to shareholders in 2024. We
expect increased excess capital generation in 2025, driven by core
business growth, net underwriting improvement in Health Solutions,
and earnings from the recently completed OneAmerica acquisition.
Creating long-term value for our shareholders and delivering
exceptional outcomes for our customers remains our primary
focus.”
“We began 2025 by welcoming the OneAmerica retirement
associates, plans, and participants to Voya. Our Wealth Solutions
business will now serve approximately 60,000 plans and nearly 8
million participants. We are excited about the future and our
shared purpose: together we fight for everyone’s opportunity for a
better financial future.”
______________________________ 1 This press release includes
certain non-GAAP financial measures, including adjusted operating
earnings. More information on notable items in the company’s
financial results, non-GAAP measures, and reconciliations to the
most comparable U.S. GAAP measures can be found in the "Use of
Non-GAAP Financial Measures" and reconciliation tables at the end
of this press release, and in the “Non-GAAP Financial Measures”
section of the company’s Quarterly Investor Supplement, which is
available at investors.voya.com.
Fourth-Quarter 2024 Consolidated Results
Fourth-quarter 2024 net income available to common shareholders
was $93 million, or $0.94 per diluted share, compared with $118
million, or $1.10 per diluted share, in fourth-quarter 2023. The
decrease was driven by lower after-tax adjusted operating earnings,
partially offset by lower expenses in the current quarter
associated with acquisitions, integration, and severance.
Fourth-quarter 2024 after-tax adjusted operating earnings were
$138 million, or $1.40 per diluted share, compared with $174
million, or $1.63 per diluted share, in fourth-quarter 2023. The
decline was due to higher loss ratios in Stop Loss in Health
Solutions and lower spread-based assets in Wealth Solutions,
partially offset by growth in fee-based revenues in Wealth
Solutions and Investment Management and higher alternative
investment income. Fourth-quarter 2024 earnings per share also
reflect a reduced share count as a result of share repurchases.
Full-Year 2024 Consolidated Results
Full-year 2024 net income available to common shareholders was
$626 million, or $6.17 per diluted share, compared with $589
million, or $5.42 per diluted share, in full-year 2023. The
increase was primarily due to lower expenses in the current year
associated with acquisitions, integration, and severance and a
favorable change in net investment gains (losses) in the current
year due to interest rate movements. This was partially offset by
tax benefits associated with divested businesses which did not
repeat in the current year at the same level as the prior year and
lower after-tax adjusted operating earnings.
Full-year 2024 after-tax adjusted operating earnings were $736
million, or $7.25 per diluted share, compared with $763 million, or
$7.02 per diluted share, in full-year 2023. Strong net revenue
growth and margin expansion in both Wealth Solutions and Investment
Management for full-year 2024 were more than offset by higher loss
ratios in Health Solutions, primarily in Stop Loss. Full-year 2024
earnings per share also reflect a reduced share count as a result
of share repurchases.
Business Segment Results
Wealth Solutions
Wealth Solutions fourth-quarter 2024 pre-tax adjusted operating
earnings were $210 million, up from $147 million in the prior-year
period. The increase was primarily due to growth in fee-based
revenues, higher alternative investment income and disciplined
expense management, partially offset by lower spread-based
assets.
Wealth Solutions full-year 2024 pre-tax adjusted operating
earnings were $820 million, up from $632 million in the prior year.
The increase was due to net revenue growth and adjusted operating
margin expansion.
Net revenues for the year ended Dec. 31, 2024 grew 9.3% compared
with the prior-year period due to growth in fee-based revenues and
alternative investment income, partially offset by lower
spread-based assets.
Adjusted operating margin for the year ended Dec. 31, 2024 was
39.9% compared with 33.6% in the prior-year period. The improvement
reflects net revenue growth and disciplined expense management.
Excluding notable items, for the year ended Dec. 31, 2024, net
revenues grew 5.9% and adjusted operating margin was 41.4%.
Total client assets as of Dec. 31, 2024 were $612 billion, up
12% compared with Dec. 31, 2023, primarily due to higher equity
market levels.
Health Solutions
Health Solutions had a fourth-quarter 2024 pre-tax adjusted
operating loss of $102 million, compared to earnings of $44 million
in the prior-year period. The decline was primarily attributable to
higher loss ratios in Stop Loss.
Health Solutions full-year 2024 pre-tax adjusted operating
earnings were $40 million, down from $315 million in the prior
year. The decrease was due to a decline in net revenue and a lower
adjusted operating margin.
Net revenues for the year ended Dec. 31, 2024 declined 17.7%
compared with the prior-year period. Adjusted operating margin for
the year ended Dec. 31, 2024 was 4.1% compared with 26.6% in the
prior-year period. The decline reflects higher loss ratios in the
current-year period, partially offset by in-force premium
growth.
Excluding notable items, for the year ended Dec. 31, 2024, net
revenues declined 19.0% and adjusted operating margin was 4.8%.
Health Solutions fourth-quarter 2024 annualized in-force
premiums and fees grew 16% to $3.9 billion compared with the
prior-year period. The increase reflects growth across all product
lines due to strong sales and favorable retention.
Investment Management
Investment Management fourth-quarter 2024 pre-tax adjusted
operating earnings, excluding Allianz's noncontrolling interest,
were $66 million, up from $45 million in the prior-year period. The
increase was primarily due to higher fee-based revenues benefiting
from strong business momentum, positive capital markets, and
performance fees, partially offset by higher variable
compensation.
Investment Management full-year 2024 pre-tax adjusted operating
earnings were $213 million, up from $177 million in the prior year.
The increase was due to net revenue growth and adjusted operating
margin expansion.
Net revenues for the year ended Dec. 31, 2024 grew 7.2% compared
with the prior-year period due to an increase in fee-based revenues
reflecting net inflows, positive capital markets and realized
performance fees.
Adjusted operating margin for the year ended Dec. 31, 2024 was
28.3% compared with 24.6% in the prior-year period. The improvement
was due to net revenue growth and disciplined expense
management.
Excluding notable items, for the year ended Dec. 31, 2024, net
revenues grew 8.0% and adjusted operating margin was 28.9%.
Investment Management generated net inflows of $3.4 billion
(excluding divested businesses) during the three months ended Dec.
31, 2024, representing organic growth of 1.1% for the quarter. Net
flows reflect continued growth in the Insurance channel and further
positive flows within Retail. Net inflows (excluding divested
businesses) for the year ended Dec. 31, 2024, totaled $12.5
billion, representing organic growth of 4.4%.
Corporate
Corporate fourth-quarter 2024 pre-tax adjusted operating losses,
excluding Allianz's noncontrolling interest, were $27 million,
compared with $34 million of losses in the prior-year period.
Corporate full-year 2024 pre-tax adjusted operating losses,
excluding Allianz's noncontrolling interest, were $203 million,
compared with $207 million of losses in the prior-year. These
variances were both driven by lower incentive compensation.
Capital
For the full-year 2024, the company generated $650 million of
excess capital. The company returned $800 million of excess capital
to shareholders in full-year 2024, including through $140 million
of share repurchases and $43 million of common stock dividends in
the fourth quarter. As of Dec. 31, 2024, the company had
approximately $0.6 billion of excess capital and a remaining share
repurchase authorization of $761 million. The company expects to
utilize approximately $0.4 billion of excess capital in the first
quarter of 2025 to retire maturing debt.
During the fourth-quarter 2024, the company deployed
approximately $0.1 billion of capital to an investment in Sconset
Re which represents an attractive growth opportunity in the
insurance sidecar market, deepens our partnership with Allianz, and
further builds Investment Management's leading position in
third-party insurance asset management.
Additional Financial Information and Earnings Call
More detailed financial information can be found in the
company’s quarterly investor supplement, which is available on
Voya’s investor relations website, investors.voya.com. In addition,
Voya will host a conference call on Wednesday, Feb. 5, 2025, at 10
a.m. ET, to discuss the company’s fourth-quarter and full-year 2024
results. The call and slide presentation can be accessed via the
company’s investor relations website at investors.voya.com. A
replay of the call will be available on the company’s investor
relations website, investors.voya.com, starting at 1 p.m. ET on
Feb. 5, 2025.
About Voya Financial
Voya Financial, Inc. (NYSE: VOYA) is a leading health, wealth
and investment company with approximately 10,000 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 approximately
15.7 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 approximately 11.9 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.
Use of Non-GAAP Financial
Measures
We believe that Adjusted operating earnings before income taxes
is a meaningful measure used by management to evaluate our business
and segment performance. This measure enhances the understanding of
our financial results by focusing on the operating performance and
trends of the underlying core business segments. It excludes
results from exited businesses and items that tend to be highly
variable from period to period based on capital market conditions
or other factors which distort the ability to make a meaningful
evaluation of our segments. We use the same accounting policies and
procedures to measure segment Adjusted operating earnings before
income taxes as we do for the directly comparable U.S. GAAP measure
Income (loss) before income taxes. Adjusted operating earnings
before income taxes does not replace Income (loss) before income
taxes as the U.S. GAAP measure of our consolidated results of
operations. Therefore, we believe that it is useful to evaluate
both measures when reviewing our financial and operating
performance. Each segment’s Adjusted operating earnings before
income taxes is calculated by adjusting Income (loss) before income
taxes for the following items:
- Net investment gains (losses);
- Income (loss) related to businesses exited or to be exited
through reinsurance or divestment;
- Income (loss) attributable to noncontrolling interests to which
we are not economically entitled;
- Dividend payments made to preferred shareholders are included
as reductions to reflect the Adjusted operating earnings before
income taxes that are available to common shareholders;
- Other adjustments may include the following items:
- Income (loss) related to early extinguishment of debt;
- Impairment of goodwill and intangible assets;
- Amortization of acquisition-related intangible assets as well
as contingent consideration fair value adjustments;
- Expected return on plan assets net of interest costs associated
with our qualified defined benefit pension plan and immediate
recognition of net actuarial gains (losses) related to all of our
pension and other postretirement benefit obligations and gains
(losses) from plan amendments and curtailments; and
- Other items not indicative of normal operations or performance
of our segments or that may be related to events such as capital or
organizational restructurings, including certain costs related to
debt and equity offerings, acquisition / merger integration
expenses, severance and other third-party expenses associated with
such activities, and expenses attributable to vacant real
estate.
Sources of Earnings
We analyze our segment performance based on the sources of
earnings. We believe that this supplemental information is useful
because we use it to analyze our business and it can help investors
understand the main drivers of Adjusted operating earnings before
income taxes. The sources of earnings include:
- Investment spread and other investment income.
- Fee-based margin.
- Net underwriting gain (loss).
- Administrative expenses.
- Premium taxes, fees and assessments.
- Net commissions.
- DAC/VOBA and other intangibles amortization.
Net Revenue and Adjusted Operating
Margin
- Adjusted operating margin is defined as Adjusted operating
earnings before income taxes divided by net revenue.
- Net revenue is the sum of investment spread and other
investment income, fee-based margin, and net underwriting gain
(loss).
- We also report net revenue and adjusted operating margin
excluding notable items, such as alternative investment income
above or below our long-term expectations.
- We report net revenue and adjusted operating margin excluding
notable items since they provide the main drivers for Adjusted
operating earnings before income taxes excluding the effects of
items that are not expected to recur at the same level.
Forward-Looking and Other Cautionary
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. 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 statements include
statements relating to future developments in our business or
expectations for our future financial performance and any statement
not involving a historical fact. Forward-looking statements use
words such as “anticipate,” “believe,” “estimate,” “expect,”
“intend,” “plan,” and other words and terms of similar meaning in
connection with a discussion of future operating or financial
performance. Actual results, performance or events may differ
materially from those projected in any forward-looking statement
due to, among other things, (i) global market risks, including
general economic conditions, our ability to manage such risks, and
interest rates; (ii) liquidity and credit risks, including
financial strength or credit ratings downgrades, requirements to
post collateral, and availability of funds through dividends from
our subsidiaries or lending programs; (iii) strategic and business
risks, including our ability to maintain market share, achieve
desired results from our acquisitions and dispositions, or
otherwise manage our third-party relationships; (iv) investment
risks, including the ability to achieve desired returns or
liquidate certain assets; (v) operational risks, including
cybersecurity and privacy failures and our dependence on third
parties; and (vi) tax, regulatory and legal risks, including limits
on our ability to use deferred tax assets, changes in law,
regulation or accounting standards, and our ability to comply with
regulations. Factors that may cause actual results to differ from
those in any forward-looking statement also include those described
under “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations (“MD&A”) – Trends
and Uncertainties” in our Annual Report on Form 10-K for the year
ended Dec. 31, 2024 to be filed with the SEC on or before Mar. 3,
2025.
VOYA-IR VOYA-CF
Consolidated Statement of
Operations
Three Months Ended
Twelve Months Ended
(in millions USD, except per share)
12/31/2024
12/31/2023
12/31/2024
12/31/2023
Revenues
Net investment income
$
521
$
522
$
2,074
$
2,159
Fee income
543
489
2,113
1,916
Premiums
790
673
3,176
2,717
Net gains (losses)
(52
)
7
(27
)
(72
)
Other revenues
134
82
423
327
Income (loss) related to consolidated
investment entities
74
46
291
301
Total revenues
2,010
1,819
8,050
7,348
Benefits and expenses
Interest credited and other benefits to
contract owners/policyholders
(987
)
(804
)
(3,619
)
(3,036
)
Operating expenses
(756
)
(773
)
(3,082
)
(3,096
)
Net amortization of DAC/VOBA
(56
)
(57
)
(223
)
(230
)
Interest expense
(35
)
(30
)
(124
)
(132
)
Operating expenses related to consolidated
investment entities
(56
)
(53
)
(203
)
(176
)
Total benefits and expenses
(1,890
)
(1,717
)
(7,251
)
(6,670
)
Income (loss) before income
taxes
120
102
799
678
Income tax expense (benefit)
(1
)
(17
)
57
(51
)
Net income (loss)
121
119
742
729
Less: Net income (loss) attributable to
noncontrolling interest and redeemable noncontrolling interest
24
(3
)
75
104
Net income (loss) available to Voya
Financial, Inc.
97
122
667
625
Less: Preferred stock dividends
4
4
41
36
Net income (loss) available to Voya
Financial, Inc.'s common shareholders
$
93
$
118
$
626
$
589
Net income (loss) available to Voya
Financial, Inc.'s common shareholders per common share:
Basic
$
0.97
$
1.13
$
6.31
$
5.74
Diluted
$
0.94
$
1.10
$
6.17
$
5.42
Reconciliation of Net Income
(Loss) to Adjusted Operating Earnings and Earnings Per Share
(Diluted)
Three Months Ended
(in millions USD, except per share)
12/31/2024
12/31/2023
After-tax (1)
Per share
After-tax (1)
Per share
Net Income (loss) available to Voya
Financial, Inc.'s common shareholders
$
93
$
0.94
$
118
$
1.10
Less:
Net investment gains (losses)
—
—
(8
)
(0.08
)
Income (loss) related to businesses exited
or to be exited through reinsurance or divestment
(17
)
(0.17
)
(38
)
(0.36
)
Other adjustments (2)
(27
)
(0.28
)
(10
)
(0.09
)
Adjusted operating earnings
$
138
$
1.40
$
174
$
1.63
Less:
Alternative investment income and
prepayment fees above (below) long-term expectations net of
variable compensation
(10
)
(0.11
)
(36
)
(0.34
)
Adjusted operating earnings excluding
notable items
$
148
$
1.50
$
210
$
1.97
Note: Totals may not sum due to rounding. (1) For adjusted
operating earnings, we apply a 21% tax rate and adjust for the
dividends received deduction, tax credits, non-deductible
compensation, and other tax benefits and expenses that relate to
adjusted operating earnings. For net investment gains (losses),
income (loss) related to businesses exited, and other non-operating
items, we apply a 21% tax rate and adjust for related tax benefits
and expenses, including changes to tax valuation allowances and
impacts related to changes in tax law. (2) Primarily consists of
acquisition and integration costs associated with recent
transactions and amortization of acquisition-related intangible
assets. For the three months ended Dec. 31, 2024, also includes a
$12 million, after-tax, write-off of an intangible asset related to
a prior acquisition, an $8 million, after-tax, write-off of
previously capitalized costs associated with an internal technology
project which is no longer being pursued, $5 million, after-tax, of
severance costs, and $4 million, after-tax, related to an insurance
company guaranty fund assessment net of premium tax credits,
partially offset by a $20 million, after-tax, net actuarial gain
related to pension and other postretirement benefit obligations.
For the three months ended Dec. 31, 2023, also includes $20
million, after-tax, of severance costs and a $17 million,
after-tax, net favorable adjustment to certain acquisition-related
assets and liabilities.
Reconciliation of Net Income
(Loss) to Adjusted Operating Earnings and Earnings Per Share
(Diluted)
Twelve Months Ended
(in millions USD, except per share)
12/31/2024
12/31/2023
After-tax (1)
Per share
After-tax (1)
Per share
Net Income (loss) available to Voya
Financial, Inc.'s common shareholders
$
626
$
6.17
$
589
$
5.42
Less:
Net investment gains (losses) (2)
39
0.39
(2
)
(0.02
)
Income (loss) related to businesses exited
or to be exited through reinsurance or divestment (3)
(75
)
(0.74
)
(44
)
(0.40
)
Other adjustments (4)
(75
)
(0.74
)
(128
)
(1.18
)
Adjusted operating earnings
$
736
$
7.25
$
763
$
7.02
Less:
Alternative investment income and
prepayment fees above (below) long-term expectations net of
variable compensation
(54
)
(0.53
)
(97
)
(0.89
)
Other (5)
—
—
(13
)
(0.12
)
Adjusted operating earnings excluding
notable items
$
790
$
7.79
$
873
$
8.03
Note: Totals may not sum due to rounding. (1) For adjusted
operating earnings, we apply a 21% tax rate and adjust for the
dividends received deduction, tax credits, non-deductible
compensation, and other tax benefits and expenses that relate to
adjusted operating earnings. For net investment gains (losses),
income (loss) related to businesses exited, and other non-operating
items, we apply a 21% tax rate and adjust for related tax benefits
and expenses, including changes to tax valuation allowances and
impacts related to changes in tax law. (2) Net investment gains
include a $45 million revaluation gain on the Voya India investment
for the twelve months ended Dec. 31, 2023. There was no tax expense
associated with this gain. (3) Includes tax benefits of $38 million
and $92 million related to a divested business for the twelve
months ended Dec. 31, 2024 and 2023, respectively. (4) Primarily
consists of acquisition and integration costs associated with
recent transactions and amortization of acquisition-related
intangible assets. For the twelve months ended Dec. 31, 2024, also
includes $12 million, after-tax, of severance costs, a $12 million,
after-tax, write-off of an intangible asset related to a prior
acquisition, an $8 million, after-tax, write-off of previously
capitalized costs associated with an internal technology project
which is no longer being pursued, and $4 million, after-tax,
related to an insurance company guaranty fund assessment net of
premium tax credits, partially offset by a $20 million, after-tax,
net actuarial gain related to pension and other postretirement
benefit obligations. For the twelve months ended Dec. 31, 2023,
also includes $27 million, after-tax, of severance costs, a $17
million, after-tax, net favorable adjustment to certain
acquisition-related assets and liabilities, and a $13 million,
after-tax, impairment related to a vacated leased building. (5)
Twelve months ended Dec. 31, 2023, includes changes in certain
legal and other reserves not expected to recur at the same level.
Adjusted Operating Earnings
and Notable Items
Three Months Ended Dec. 31,
2024
(in millions USD, except per share)
Amounts Including
Notable Items
Alternative investment income
and prepayment fees above (below) long-term expectations
(1)
Amounts Excluding
Notable Items
a
b
c = a - b
Adjusted operating earnings
Wealth Solutions
$
210
$
(10
)
$
220
Health Solutions
(102
)
(1
)
(102
)
Investment Management
66
(2
)
69
Corporate
(27
)
—
(27
)
Adjusted operating earnings before
income taxes
147
(13
)
160
Income taxes (2)
9
(3
)
12
Adjusted operating earnings after
income taxes
$
138
$
(10
)
$
148
Adjusted operating earnings per
share
1.40
(0.11
)
1.50
Note: Totals may not sum due to rounding. (1) Amount by which
Investment income from alternative investments and prepayments
exceeds or is less than our long-term expectations, net of variable
compensation. Long-term expectation for alternative investments is
a 9% annual return, which for the three months ended Dec. 31, 2024,
was approximately $49 million, pre-tax and before variable
compensation. Long-term expectation for prepayment fees is a 10
basis point annual contribution to yield, which for the three
months ended Dec. 31, 2024, was approximately $9 million, pre-tax
and before variable compensation. (2) For adjusted operating
earnings, we apply a 21% tax rate and adjust for the dividends
received deduction, tax credits, non-deductible compensation, and
other tax benefits and expenses that relate to adjusted operating
earnings.
Adjusted Operating Earnings
and Notable Items
Three Months Ended Dec. 31,
2023
(in millions USD, except per share)
Amounts Including
Notable Items
Alternative investment income
and prepayment fees above (below) long-term expectations
(1)
Amounts Excluding
Notable Items
a
b
c = a - b
Adjusted operating earnings
Wealth Solutions
$
147
$
(39
)
$
187
Health Solutions
44
(5
)
48
Investment Management
45
(2
)
47
Corporate
(34
)
—
(34
)
Adjusted operating earnings before
income taxes
202
(46
)
248
Income taxes (2)
28
(10
)
38
Adjusted operating earnings after
income taxes
$
174
$
(36
)
$
210
Adjusted operating earnings per
share
1.63
(0.34
)
1.97
Note: Totals may not sum due to rounding. (1) Amount by which
Investment income from alternative investments and prepayments
exceeds or is less than our long-term expectations, net of variable
compensation. Long-term expectation for alternative investments is
a 9% annual return, which for the three months ended Dec. 31, 2023,
was approximately $47 million, pre-tax and before variable
compensation. Long-term expectation for prepayment fees is a 10
basis point annual contribution to yield, which for the three
months ended Dec. 31, 2023, was approximately $10 million, pre-tax
and before variable compensation. (2) For adjusted operating
earnings, we apply a 21% tax rate and adjust for the dividends
received deduction, tax credits, non-deductible compensation, and
other tax benefits and expenses that relate to adjusted operating
earnings.
Adjusted Operating Earnings
and Notable Items
Twelve Months Ended Dec. 31,
2024
(in millions USD, except per share)
Amounts including Notable
items
Alternative investment income
and prepayment fees above (below) long-term expectations
(1)
Amounts excluding Notable
items
a
b
c = a - b
Adjusted operating earnings
Wealth Solutions
$
820
$
(53
)
$
873
Health Solutions
40
(7
)
47
Investment Management
213
(8
)
221
Corporate
(203
)
—
(203
)
Adjusted operating earnings before
income taxes
870
(68
)
939
Income taxes (2)
135
(14
)
149
Adjusted operating earnings after
income taxes
$
736
$
(54
)
$
790
Adjusted operating earnings per
share
7.25
(0.53
)
7.79
Note: Totals may not sum due to rounding. (1) Amount by which
Investment income from alternative investments and prepayments
exceeds or is less than our long-term expectations, net of variable
compensation. Long-term expectation for alternative investments is
a 9% annual return, which for the twelve months ended Dec. 31,
2024, was approximately $190 million, pre-tax and before variable
compensation. Long-term expectation for prepayment fees is a 10
basis point annual contribution to yield, which for the twelve
months ended Dec. 31, 2024, was approximately $35 million, pre-tax
and before variable compensation. (2) For adjusted operating
earnings, we apply a 21% tax rate and adjust for the dividends
received deduction, tax credits, non-deductible compensation, and
other tax benefits and expenses that relate to adjusted operating
earnings.
Adjusted Operating Earnings
and Notable Items
Twelve Months Ended Dec. 31,
2023
(in millions USD, except per share)
Amounts including Notable
items
Alternative investment income
and prepayment fees above (below) long- term expectations
(1)
Other (2)
Amounts excluding Notable
items
a
b
c
d = a - b - c
Adjusted operating earnings
Wealth Solutions
$
632
$
(110
)
$
—
$
742
Health Solutions
315
(10
)
(16
)
341
Investment Management
177
(3
)
—
180
Corporate
(207
)
—
—
(207
)
Adjusted operating earnings before
income taxes
916
(123
)
(16
)
1,055
Income taxes (3)
153
(26
)
(3
)
182
Adjusted operating earnings after
income taxes
$
763
$
(97
)
$
(13
)
$
873
Adjusted operating earnings per
share
7.02
(0.89
)
(0.12
)
8.03
Note: Totals may not sum due to rounding. (1) Amount by which
Investment income from alternative investments and prepayments
exceeds or is less than our long-term expectations, net of variable
compensation. Long-term expectation for alternative investments is
a 9% annual return, which for the twelve months ended Dec. 31,
2023, was approximately $192 million, pre-tax and before variable
compensation. Long-term expectation for prepayment fees is a 10
basis point annual contribution to yield, which for the twelve
months ended Dec. 31, 2023, was approximately $39 million, pre-tax
and before variable compensation. (2) Includes changes in certain
legal and other reserves not expected to recur at the same level.
(3) For adjusted operating earnings, we apply a 21% tax rate and
adjust for the dividends received deduction, tax credits,
non-deductible compensation, and other tax benefits and expenses
that relate to adjusted operating earnings.
Net Revenue, Adjusted
Operating Margin, and Notable Items
Twelve Months Ended Dec. 31,
2024
(in millions USD)
Amounts Including Notable
Items
Alternative investment income
and prepayment fees above (below) long-term expectations
(1)
Amounts Excluding Notable
Items
a
b
c = a - b
Net revenue
Wealth Solutions
$
2,056
$
(53
)
$
2,109
Health Solutions
975
(7
)
982
Investment Management
982
(9
)
991
Total net revenue
$
4,012
$
(69
)
$
4,082
Adjusted operating margin
Wealth Solutions
39.9
%
(1.5
)%
41.4
%
Health Solutions
4.1
%
(0.7
)%
4.8
%
Investment Management
28.3
%
(0.6
)%
28.9
%
Adjusted operating margin, excluding
Corporate
28.4
%
(1.2
)%
29.6
%
Note: Totals may not sum due to rounding. (1) Amount by which
Investment income from alternative investments and prepayments
exceeds or is less than our long-term expectations, net of variable
compensation. Long-term expectation for alternative investments is
a 9% annual return, which for the twelve months ended Dec. 31,
2024, was approximately $190 million, pre-tax and before variable
compensation. Long-term expectation for prepayment fees is a 10
basis point annual contribution to yield, which for the twelve
months ended Dec. 31, 2024, was approximately $35 million, pre-tax
and before variable compensation.
Net Revenue, Adjusted
Operating Margin, and Notable Items
Twelve Months Ended Dec. 31,
2023
(in millions USD)
Amounts Including Notable
Items
Alternative investment income
and prepayment fees above (below) long- term expectations
(1)
Other (2)
Amounts Excluding Notable
Items
a
b
c
d = a - b - c
Net revenue
Wealth Solutions
$
1,881
$
(110
)
$
—
$
1,991
Health Solutions
1,185
(10
)
(16
)
1,212
Investment Management
916
(2
)
—
918
Total net revenue
$
3,982
$
(122
)
$
(16
)
$
4,120
Adjusted operating margin
Wealth Solutions
33.6
%
(3.7
)%
—
%
37.3
%
Health Solutions
26.6
%
(0.6
)%
(0.9
)%
28.1
%
Investment Management
24.6
%
(0.3
)%
—
24.9
%
Adjusted operating margin, excluding
Corporate
29.4
%
(2.1
)%
(0.3
)%
31.8
%
Note: Totals may not sum due to rounding. (1) Amount by which
Investment income from alternative investments and prepayments
exceeds or is less than our long-term expectations, net of variable
compensation. Long-term expectation for alternative investments is
a 9% annual return, which for the twelve months ended Dec. 31,
2023, was approximately $192 million, pre-tax and before variable
compensation. Long-term expectation for prepayment fees is a 10
basis point annual contribution to yield, which for the twelve
months ended Dec. 31, 2023, was approximately $39 million, pre-tax
and before variable compensation. (2) Includes changes in certain
legal and other reserves not expected to recur at the same level.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250204956837/en/
Media Contact: Donna Sullivan Donna.Sullivan@voya.com
Investor Contact: Mei Ni Chu IR@voya.com
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