Voya Financial announces fourth-quarter and full-year 2024 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 onJan. 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
“We generated
“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 |
Fourth-Quarter 2024 Consolidated Results
Fourth-quarter 2024 net income available to common shareholders was
Fourth-quarter 2024 after-tax adjusted operating earnings were
Full-Year 2024 Consolidated Results
Full-year 2024 net income available to common shareholders was
Full-year 2024 after-tax adjusted operating earnings were
Business Segment Results
Wealth Solutions
Wealth Solutions fourth-quarter 2024 pre-tax adjusted operating earnings were
Wealth Solutions full-year 2024 pre-tax adjusted operating earnings were
Net revenues for the year ended
Adjusted operating margin for the year ended
Excluding notable items, for the year ended
Total client assets as of
Net revenues for the year ended
Excluding notable items, for the year ended
Investment Management
Investment Management fourth-quarter 2024 pre-tax adjusted operating earnings, excluding Allianz's noncontrolling interest, were
Investment Management full-year 2024 pre-tax adjusted operating earnings were
Net revenues for the year ended
Adjusted operating margin for the year ended
Excluding notable items, for the year ended
Investment Management generated net inflows of
Corporate
Corporate fourth-quarter 2024 pre-tax adjusted operating losses, excluding Allianz's noncontrolling interest, were
Capital
For the full-year 2024, the company generated
During the fourth-quarter 2024, the company deployed approximately
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
About
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
- 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
VOYA-IR VOYA-CF
|
Consolidated Statement of Operations |
|||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||
|
(in millions USD, except per share) |
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
||||||||
|
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 |
|
97 |
|
|
122 |
|
|
|
667 |
|
|
625 |
|
|
Less: Preferred stock dividends |
|
4 |
|
|
4 |
|
|
|
41 |
|
|
36 |
|
|
Net income (loss) available to |
$ |
93 |
|
$ |
118 |
|
|
$ |
626 |
|
$ |
589 |
|
|
Net income (loss) available to |
|
|
|
|
|
||||||||
|
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) |
|
|
|
||||||||||
|
|
After-tax (1) |
Per share |
|
After-tax (1) |
Per share |
||||||||
|
Net Income (loss) available to |
$ |
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 |
|
Reconciliation of Net Income (Loss) to Adjusted Operating Earnings and Earnings Per Share (Diluted) |
|||||||||||||
|
|
Twelve Months Ended |
||||||||||||
|
(in millions USD, except per share) |
|
|
|
||||||||||
|
|
After-tax (1) |
Per share |
|
After-tax (1) |
Per share |
||||||||
|
Net Income (loss) available to |
$ |
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 |
|
(3) Includes tax benefits of |
|
(4) Primarily consists of acquisition and integration costs associated with recent transactions and amortization of acquisition-related intangible assets. For the twelve months ended |
|
(5) Twelve months ended |
|
Adjusted Operating Earnings and Notable Items |
|||||||||
|
Three Months Ended |
|||||||||
|
(in millions USD, except per share) |
Amounts
|
Alternative investment income
|
Amounts
|
||||||
|
|
a |
b |
c = a - b |
||||||
|
Adjusted operating earnings |
|
|
|
||||||
|
Wealth Solutions |
$ |
210 |
|
$ |
(10 |
) |
$ |
220 |
|
|
|
|
(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 |
| (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 |
|||||||||
|
(in millions USD, except per share) |
Amounts
|
Alternative investment income
|
Amounts
|
||||||
|
|
a |
b |
c = a - b |
||||||
|
Adjusted operating earnings |
|
|
|
||||||
|
Wealth Solutions |
$ |
147 |
|
$ |
(39 |
) |
$ |
187 |
|
|
|
|
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 |
| (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 |
|||||||||
|
(in millions USD, except per share) |
Amounts
|
Alternative investment income
|
Amounts
|
||||||
|
|
a |
b |
c = a - b |
||||||
|
Adjusted operating earnings |
|
|
|
||||||
|
Wealth Solutions |
$ |
820 |
|
$ |
(53 |
) |
$ |
873 |
|
|
|
|
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 |
| (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 |
||||||||||||
|
(in millions USD, except per share) |
Amounts
|
Alternative
|
Other (2) |
Amounts
|
||||||||
|
|
a |
b |
c |
d = a - b - c |
||||||||
|
Adjusted operating earnings |
|
|
|
|
||||||||
|
Wealth Solutions |
$ |
632 |
|
$ |
(110 |
) |
$ |
— |
|
$ |
742 |
|
|
|
|
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 |
| (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 |
|||||||||
|
(in millions USD) |
Amounts
|
Alternative investment income
|
Amounts
|
||||||
|
|
a |
b |
c = a - b |
||||||
|
Net revenue |
|
|
|
||||||
|
Wealth Solutions |
$ |
2,056 |
|
$ |
(53 |
) |
$ |
2,109 |
|
|
|
|
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 |
% |
|
|
|
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 |
|
Net Revenue, Adjusted Operating Margin, and Notable Items |
||||||||||||
|
Twelve Months Ended |
||||||||||||
|
(in millions USD) |
Amounts
|
Alternative
|
Other (2) |
Amounts
|
||||||||
|
|
a |
b |
c |
d = a - b - c |
||||||||
|
Net revenue |
|
|
|
|
||||||||
|
Wealth Solutions |
$ |
1,881 |
|
$ |
(110 |
) |
$ |
— |
|
$ |
1,991 |
|
|
|
|
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 |
% |
|
|
|
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 |
| (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@voya.com
Investor Contact:
IR@voya.com
Source:
