Voya Financial
First Quarter 2024 Investor Presentation
May 1, 2024
Forward-Looking and Other Cautionary Statements
This presentation and the remarks made orally contain forward-looking statements. 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 Results of Operations and Financial Condition ("MD&A") - Trends and Uncertainties" in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 23, 2024 and in our Quarterly Report on Form 10-Q for the three months ended March 31, 2024, to be filed with the SEC on or before May 10, 2024.
This presentation and the remarks made orally contain certain non-GAAP financial measures. Non-GAAP measures include Adjusted Operating Earnings, Adjusted Operating Earnings Per Share, Net Revenue, Adjusted Operating Margin, and Financial Leverage. Information regarding these and other non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures, is provided in our quarterly earnings press releases and in our quarterly investor supplements, all of which are available at the Investor Relations section of Voya Financial's website at investors.voya.com.
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Key Themes & Executing our Strategy
Heather Lavallee, Chief Executive Officer
First Quarter 2024 Financial Highlights
On Track to Achieve Full Year 2024 Targets
Adjusted
Operating
EPS1
$1.77
up 23% Y-o-Y
FY'24 Target2,4:
$8.25-$8.45
Excess
Capital
Generation
$0.2B
FY'24 Target4: $0.8B
90%+ FCF
Net Revenue
Growth
(TTM)2,3
9%
FY'24 Target4:
2-4%
Adj. Operating
Margin
(TTM)2,3
32%
FY'24 Target4:
30-33%
Adj. Operating
ROE
(TTM)2,3
14.8%
FY'24 Target4:
14%-16%
- Includes $0.11 of alternative income and prepayments below long-term expectations.
- TTM view excludes notables, alternatives and prepayment income above or below long-term expectations. Full-year target assumes annual long-term alternative investment return of 9% (pre-tax) and general account prepayment fee long-term expected return of 10 basis points.
- Net Revenue growth, Adjusted Operating Margin and Adjusted Operating ROE on at TTM basis including notables are 10%, 30% and 13.3%, respectively.
4. Based on long-term assumptions and sensitivities on page 20. | 4 |
Strategic Execution in Workplace Solutions Driving Growth
Competitive Advantages
✓ | Leading market |
positions create distinct | |
opportunity in workplace | |
✓ | Scale and credibility |
Strategic Priorities
Land
Net client growth
through increased sales
Examples of Execution
- Strengthen mid-market presence in retirement: Enhanced service model and increased mid-marketsales team; known mid-marketsales up 300% vs. same time last year
- Continued growth in stop-loss:Added new quoting capabilities and expanded reach down-marketsupporting 17% in-forcepremium growth in Health Solutions
across markets and | |
employer sizes | |
✓ | Extensive distribution |
with intermediaries | |
✓ | Strong culture and |
Expand
Growing the solution set with customers, driving revenue and margins
- Launched Voya Protect: Expanded workplace benefits offering to cover more than 13,000 medical conditions with simplified claims experience
- Enhanced digital experience during open enrollment: MyVoyage can help individuals make more informed benefit decisions while increasing voluntary / HSA benefit elections
reputation for delivering |
customer service |
Deepen
Building engagement with participants and employers
- Grow retail wealth management platform: Added advisors to retail wealth distribution team
- Increase adoption of managed accounts: Enhanced managed account support team
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Strategic Execution in Investment Management Driving Growth
Competitive Advantages
✓ | Industry leader with scale |
in Private Fixed Income | |
as well as Private Equity | |
Secondaries | |
✓ | Globally preeminent |
Strategic Priorities
Deliver
Exceptional
Outcomes for
Clients
Examples of Execution
- Strong investment performance: 83% of public assets outperformed peers/benchmarks over 1 year, and 80% over 10 years
- Continued investment in platform technology and infrastructure to operate and serve clients globally
Income & Growth |
franchise |
✓ Differentiated distribution |
with global reach through |
intermediary and |
institutional channels |
Scale Our
Industry Leading
Solutions
- Continued to grow within Insurance, U.S. Intermediary and International channels: Fixed Income and Income & Growth momentum
- Optimized distribution: Enhanced distribution teams with channel expertise in private assets
✓ Leading market position |
in insurance asset |
management |
Expand into
Adjacent Private and Alternative Strategies
- Three private fund launches planned for 2024: Private Equity Secondaries, Renewable Energy Infrastructure, Middle- Market Private Credit
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Voya Culture - Living our Purpose and Vision
Delivering for Our
Customers
Giving Back to Our
Communities
Supporting Our
Colleagues
Access to Guidance | Advanced Financial Literacy | Completed Integration of Voya India |
Evolving participant access to guidance to | Through supporting high school financial | Welcomed almost 2,000 employees based in |
help enhance financial outcomes for our | literacy competitions and | India |
customers | legislation | |
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Business Segment Performance & Financial Highlights
Don Templin, Chief Financial Officer
First Quarter 2024 Financial Results
(Millions, except EPS and capital generation) | 1Q'23 | 1Q'24 | DRIVERS |
Adjusted Operating EPS | $1.44 | $1.77 | 1Q'24 adjusted operating EPS is 23% higher year- |
Per Diluted Share | over-year: | ||
• Growth in fee-based revenues across Wealth, | |||
Investment Management and Health favorably | |||
offset underwriting income in Health, which is | |||
Adjusted Operating Earnings | $158 | $185 | normalizing from record levels |
• Alternative investment income improved over the | |||
After-Tax | |||
same period | |||
Capital Generation | $0.1B | $0.2B | Consistent with track record of generating cash above |
90% target | |||
Net Income | $691 | $234 | 1Q'24 net income exceeds adjusted operating earnings |
Available to Common Shareholders | primarily due to a non-cash tax benefit | ||
1. 1Q'23 includes $56 million of cash impacts from Benefitfocus acquisition and integration of AllianzGI.
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Wealth Solutions
Consistent participant base growth has supported asset growth over time
Defined Contribution (DC) Client Assets
and Participant Account Growth1
620 Client Assets (billions) Participant Accounts (millions) 11
520 | $467 | $483 | $512 | 10 | |||
420 | $413 | $418 | 9 | ||||
$339 | |||||||
7.0 | 8 | ||||||
320 | 6.9 | ||||||
6.7 | |||||||
6.1 | 6.3 | 7 | |||||
220 | 5.6 | ||||||
6 | |||||||
120 | 5 | ||||||
20 | 4 | ||||||
FY'19 | FY'20 | FY'21 | FY'22 | FY'23 | 1Q'24 | ||
(80) | 3 | ||||||
- Participant accounts have grown at nearly 6% CAGR between 2019-2023
Full Service - Client Assets
(Billions)
Spread-Based | Fee-Based | $197 | ||||||||
$188 | $185 | |||||||||
$165 | ||||||||||
$163 | ||||||||||
$144 | ||||||||||
$112 | $133 | $155 | $129 | $154 | $166 | |||||
$31 | $33 | $33 | $33 | $31 | $30 | |||||
FY'19 | FY'20 | FY'21 | FY'22 | FY'23 | 1Q'24 | |||||
Full Service | $2.1 | $1.6 | $0.6 | $3.0 | $(2.9) | $0.0 | ||||
Net Flows | ||||||||||
Recordkeeping | $14.5 | $24.5 | $(6.7) | $0.8 | $7.4 | $(0.3) | ||||
Net Flows | ||||||||||
1. DC client assets and participant account numbers are shown as of the end of the period.
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Disclaimer
Voya Financial Inc. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 13:52:46 UTC.