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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 31, 2023
VOYA FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
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Delaware | | 001-35897 | | No. | 52-1222820 |
(State or other jurisdiction of incorporation) | | (Commission File Number) | | (IRS Employer Identification Number) |
230 Park Avenue | | | | | |
New York | New York | | | | 10169 |
(Address of principal executive offices) | | | | (Zip Code) |
Registrant’s telephone number, including area code: (212) 309-8200
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class | Trading symbol | Name of each exchange on which registered |
Common Stock, $.01 Par Value | VOYA | New York Stock Exchange |
Depositary Shares, each representing a 1/40th | VOYAPrB | New York Stock Exchange |
interest in a share of 5.35% Fixed-Rate Non-Cumulative Preferred Stock, Series B, $0.01 par value |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02 | Results of Operations and Financial Condition |
On October 31, 2023, Voya Financial, Inc. (“Voya Financial”) reported its financial results for the three months and nine months ended September 30, 2023. A copy of the press release containing this information is furnished as Exhibit 99.1 hereto and is incorporated by reference in this Item 2.02.
As previously announced, Voya Financial will host a conference call on Wednesday, November 1, 2023 at 10:00 am ET to discuss its third-quarter 2023 results. The call can be accessed via Voya Financial’s investor relations website at http://investors.voya.com. In addition, more detailed financial information can be found in Voya Financial’s Quarterly Investor Supplement for the quarter ended September 30, 2023, available on Voya Financial’s investor relations website at http://investors.voya.com. The Quarterly Investor Supplement for the quarter ended September 30, 2023 is furnished herewith as Exhibit 99.2 and is incorporated by reference in this Item 2.02.
As provided in General Instruction B.2 of Form 8-K, the information and exhibits provided pursuant to this Item 2.02 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
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Item 7.01 | Regulation FD Disclosure |
On October 31, 2023, Voya Financial made available a slide presentation that will accompany the conference call described above in Item 2.02. These slides are available on Voya Financial’s investor relations website at http://investors.voya.com.
As provided in General Instruction B.2 of Form 8-K, the information provided pursuant to this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
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Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Voya Financial, Inc.
(Registrant)
By: /s/ My Chi To
Name: My Chi To
Title: Executive Vice President, Chief Legal Officer and Corporate Secretary
Dated: October 31, 2023
Voya Financial announces third-quarter 2023 results
NEW YORK, Oct. 31, 2023 — Voya Financial, Inc. (NYSE: VOYA), a leading health, wealth and investment company, announced today its third-quarter 2023 financial results:
•Net income available to common shareholders of $2.29 per diluted share.
•After-tax adjusted operating earnings1 of $1.74 per diluted share (EPS), which reflects the continued benefit of Voya's diversified revenue streams and strong margins.
•Strong cash generation and balanced excess capital return:
◦Approximately $0.3 billion in excess capital deployed in third-quarter 2023, including $140 million in debt redemption; approximately $50 million to acquire interest in India joint venture; and $96 million in share repurchases and common stock dividends.
◦Approximately $0.8 billion of excess capital generated during the trailing 12 months (TTM) ended Sept. 30, 2023.
◦As of Sept. 30, 2023, Voya had approximately $0.4 billion of excess capital, reflecting capital generation of over 90% of after-tax adjusted operating earnings in third-quarter 2023 and for the TTM ended Sept. 30, 2023.
"In the third quarter of 2023, we continued to execute on our strategic priorities and delivered $1.74 per diluted share of after-tax adjusted operating EPS, which reflects the benefit of our diversified revenue streams and prudent expense management," said Heather Lavallee, chief executive officer, Voya Financial. "During the quarter, we drove further commercial momentum in each of our businesses; we maintained a strong focus on margins; and we deployed further excess capital generated by our high free-cash-flow businesses. Despite macroeconomic headwinds, we continue to execute on our strategy and — as a result of our strong client relationships and engagement — we are confident in our ability to continue to drive commercial momentum, while also closely managing spending and prudently deploying capital. These elements give us confidence in our Investor Day target of 12% to 17% EPS growth through the three-year period ending in 2024.
"Underpinning our accomplishments are our purpose and vision, which we activate by serving the needs of our clients, as well as supporting our colleagues and our communities. For example, in the third quarter, we expanded our critical illness and accident insurance products to offer new benefits and coverage that focus on mental health; we earned further recognition as a best place to work; and Voya employees positively impacted our communities by raising more than $1.5 million for 1,900 charitable causes through our annual Employee Giving Campaign," added Lavallee.
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 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.
Consolidated Results
Third-quarter 2023 net income available to common shareholders was $248 million, or $2.29 per diluted share, compared with $166 million, or $1.57 per diluted share, in third-quarter 2022. The increase was primarily due to gains within businesses exited, net investment gains and lower acquisition and integration costs, partially offset by lower after-tax adjusted operating earnings.
Third-quarter 2023 after-tax adjusted operating earnings were $189 million, or $1.74 per diluted share, compared with $210 million, or $1.97 per diluted share, in third-quarter 2022. The decrease was largely due to lower net underwriting results, partially offset by higher fee income.
Business Segment Results
Wealth Solutions
Wealth Solutions third-quarter 2023 pre-tax adjusted operating earnings were $179 million, up from $128 million in the prior-year period. The increase was primarily due to higher alternative investment income as well as favorable equity market impacts to fee-based margins — all partially offset by lower investment spreads.
For the TTM ended Sept. 30, 2023, full-service recurring deposits grew 10.2% to $14.4 billion compared with the prior-year period, largely due to growth in Corporate markets. Total client assets as of Sept. 30, 2023, were $510 billion, up 12% compared with Sept. 30, 2022, due to growth in the business and higher equity market levels year over year.
Excluding notables, net revenues for the TTM ended Sept. 30, 2023, grew 1.4% compared with the prior-year period as an increase in spread-based revenues more than offset a decline in fee-based margins. Adjusted operating margin for the TTM ended Sept. 30, 2023, excluding notables, was 37.8%, compared with 37.9% in the prior-year period.
Health Solutions
Health Solutions third-quarter 2023 pre-tax adjusted operating earnings were $53 million, down from $154 million in the prior-year period. The decline was largely attributable to the prior-year period benefiting from exceptionally strong underwriting results and a favorable reserve adjustment.
Health Solutions third-quarter 2023 annualized in-force premiums and fees grew 21.1% to $3.3 billion compared with the prior-year period. The increase reflects growth across all product lines, favorable retention and the positive impact of the Benefitfocus acquisition, which closed in January 2023. Excluding Benefitfocus, annualized in-force premiums and fees grew 14.7% compared with the prior-year period.
Excluding notables, net revenues for the TTM ended Sept. 30, 2023, grew 35.8% compared with the prior-year period due to the Benefitfocus acquisition, premium growth across all product lines and a favorable aggregate loss ratio. (Excluding Benefitfocus, net revenues, excluding notables, grew 17.7%.) Adjusted operating margin for the TTM ended Sept. 30, 2023, excluding notables, was 32.2%, compared with 31.2% in the prior-year period.
Investment Management
Investment Management third-quarter 2023 pre-tax adjusted operating earnings, excluding Allianz's noncontrolling interest, were $49 million, up from $38 million in the prior-year period. The increase was largely due to higher fee revenues resulting from the Allianz Global Investors (AllianzGI) transaction, which closed in July 2022, and positive investment capital returns.
Investment Management had net outflows (excluding divested businesses) of $8.4 billion during the TTM ended Sept. 30, 2023 — positive Retail net flows and momentum resulting from the company's international distribution through AllianzGI were more than offset by macroeconomic headwinds impacting the industry and the unwinding of the company's former international distribution partnership.
Excluding notables, net revenues for the TTM ended Sept. 30, 2023, grew 21.8% as additional revenues from the AllianzGI transaction more than offset the impact of macroeconomic headwinds on both equity and fixed income fees, particularly in Retail. Adjusted operating margin for the TTM ended Sept. 30, 2023, excluding notables, was 25.5%, compared with 26.0% in the prior-year period.
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, Nov. 1, 2023, at 10 a.m. ET, to discuss the company’s third-quarter 2023 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 Nov. 1, 2023.
Media Contact: Investor Contact:
Christopher Breslin Michael Katz
212-309-8941 212-309-8999
Christopher.Breslin@voya.com IR@voya.com
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 14.7 million individual, workplace and institutional clients become well planned, well invested and well protected. Benefitfocus, a Voya company, extends the reach of Voya’s workplace benefits and savings offerings by providing benefits administration capabilities to 16.5 million individual subscription employees across employer and health plan clients. 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.
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) general economic conditions, particularly economic conditions in our core markets, (ii) performance of financial markets, (iii) interest rates, (iv) the frequency and severity of insured loss events, (v) the effects of natural or man-made disasters, including pandemic events, (vi) mortality and morbidity levels, (vii) persistency and lapse levels, (viii) currency exchange rates, (ix) general competitive factors, (x) changes in laws and regulations, such as those relating to Federal taxation, state insurance regulations and NAIC regulations and guidelines, (xi) changes in the policies of governments and/or regulatory authorities, (xii) our ability to successfully manage the separation of the Individual Life business that we sold to Resolution Life US on Jan. 4, 2021, and (xiii) our ability to realize the expected benefits from acquisitions, including the transactions with AllianzGI and Benefitfocus. 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 – Trends and Uncertainties” in our Annual Report on Form 10-K for the year ended Dec. 31, 2022, as filed with the Securities and Exchange Commission (“SEC”) on Feb. 24, 2023, and in our Quarterly Report on Form 10-Q for the three months ended Sept. 30, 2023, to be filed with the SEC on or before Nov. 9, 2023.
VOYA-IR VOYA-CF
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Reconciliation of Net Income (Loss) to Adjusted Operating Earnings and Earnings Per Share (Diluted) |
| | | Three Months Ended |
($ in millions, except per share) | | | 9/30/2023 | | | | 9/30/2022 |
| | | After-tax (1) | Per share | | | | After-tax (1) | Per share |
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Net Income (loss) available to Voya Financial, Inc.'s common shareholders | | | $ | 248 | | $ | 2.29 | | | | | $ | 166 | | $ | 1.57 | |
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Less: | | | | | | | | | |
Net investment gains (losses) (2) | | | 43 | | 0.40 | | | | | (7) | | (0.06) | |
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Income (loss) related to businesses exited or to be exited through reinsurance or divestment (3) | | | 38 | | 0.35 | | | | | (11) | | (0.10) | |
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Other adjustments | | | (21) | | (0.19) | | | | | (26) | | (0.24) | |
Adjusted operating earnings | | | $ | 189 | | $ | 1.74 | | | | | $ | 210 | | $ | 1.97 | |
Less: | | | | | | | | | |
Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | | | (23) | | (0.21) | | | | | (74) | | (0.70) | |
Other (4) | | | (13) | | (0.12) | | | | | 45 | | 0.42 | |
Adjusted operating earnings excluding notable items | | | $ | 224 | | $ | 2.07 | | | | | $ | 239 | | $ | 2.24 | |
(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 three months ended September 30, 2023. There was no tax expense associated with this gain.
(3) Income related to businesses exited or to be exited through reinsurance or divestment includes a one-time tax benefit of $92 million related to a divested business for the three months ended September 30, 2023.
(4) Includes changes in certain legal and other reserves not expected to recur at the same level.
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Adjusted Operating Earnings and Notable Items |
Three Months Ended September 30, 2023 |
(in millions) | Amounts Including Notable Items | Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) | | Other (2) | Amounts Excluding Notable Items |
| a | b | | c | d = a - b - c |
Adjusted operating earnings | | | | | |
Wealth Solutions | $ | 179 | $ | (24) | | $ | — | | $ | 202 |
Health Solutions | 53 | (2) | | (16) | | 71 |
Investment Management | 63 | (3) | | — | | 66 |
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Corporate | (52) | — | | — | | (52) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | 242 | (29) | | | (16) | | 287 |
Less: Earnings (loss) attributable to Allianz noncontrolling interest | 14 | — | | — | 14 |
Adjusted operating earnings before income taxes | 229 | (29) | | | (16) | | 273 |
Income taxes (3) | 39 | (6) | | (3) | 49 |
Adjusted operating earnings after income taxes | $ | 189 | $ | (23) | | $ | (13) | $ | 224 |
Adjusted operating earnings per share | 1.74 | (0.21) | | (0.12) | 2.07 |
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(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable and incentive compensation. Long-term expectation for alternative investments is a 9% annual return and the long-term expectation for prepayment fees is a 10 basis point annual contribution to yield, which is roughly $9 million per quarter for Wealth Solutions.
(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.
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Net Revenue, Adjusted Operating Margin, and Notable Items |
Twelve Months Ended September 30, 2023 |
(in millions) | Amounts Including Notable Items | Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) | | Other (2) | Amounts Excluding Notable Items |
| a | b | | c | d = a - b - c |
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Net revenue | | | | | |
Wealth Solutions | $ | 1,864 | $ | (121) | | $ | — | $ | 1,985 |
Health Solutions | 1,137 | (9) | | (16) | 1,165 |
Investment Management | 903 | (9) | | — | 912 |
Total net revenue | $ | 3,904 | $ | (139) | | $ | (16) | $ | 4,061 |
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Adjusted operating margin | | | | | |
Wealth Solutions | 33.8 | % | (4.0) | % | | — | 37.8 | % |
Health Solutions | 30.6 | % | (0.6) | % | | (1.0) | % | 32.2 | % |
Investment Management | 24.9 | % | (0.6) | % | | — | 25.5 | % |
Adjusted operating margin, excluding Corporate | 30.8 | % | (2.4) | % | | (0.2) | % | 33.4 | % |
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(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations. Long-term expectation for alternative investments is a 9% annual return and the long-term expectation for prepayment fees is a 10 basis point annual contribution to yield, which is roughly $9 million per quarter for Wealth Solutions.
(2) Includes changes in certain legal and other reserves not expected to recur at the same level.
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Net Revenue, Adjusted Operating Margin, and Notable Items |
Twelve Months Ended September 30, 2022 |
(in millions) | Amounts Including Notable Items | Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) | COVID-19 Impacts | Other (2) | Amounts Excluding Notable Items |
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| a | b | c | d | e = a - b - c - d |
Net revenue | | | | | |
Wealth Solutions | $ | 2,015 | $ | 57 | $ | — | $ | — | $ | 1,958 |
Health Solutions | 848 | 7 | (74) | 57 | 858 |
Investment Management | 742 | (8) | — | — | 749 |
Total net revenue | $ | 3,604 | $ | 56 | $ | (74) | $ | 57 | $ | 3,565 |
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Adjusted operating margin | | | | | |
Wealth Solutions | 39.6 | % | 1.7 | % | — | — | % | 37.9 | % |
Health Solutions | 30.3 | % | 0.5 | % | (5.7) | % | 4.3 | % | 31.2 | % |
Investment Management | 25.5 | % | (0.5) | % | — | — | 26.0 | % |
Adjusted operating margin, excluding Corporate | 34.5 | % | 1.1 | % | (1.4) | % | 1.1 | % | 33.7 | % |
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(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations. Long-term expectation for alternative investments is a 9% annual return and the long-term expectation for prepayment fees is a 10 basis point annual contribution to yield, which is roughly $9 million per quarter for Wealth Solutions.
(2) Includes changes in certain other reserves not expected to recur at the same level.
Quarterly Investor Supplement
September 30, 2023
This report should be read in conjunction with Voya Financial, Inc.'s Quarterly Report on Form 10-Q for the Nine Months Ended September 30, 2023. Voya Financial's Annual Reports on Form 10-K, and Quarterly Reports on Form 10-Q, can be accessed upon filing at the Securities and Exchange Commission’s website at www.sec.gov, and at our website at investors.voya.com. All information is unaudited.
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Corporate Offices: | | Media Contact: | | Investor Contact: |
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Voya Financial | | Christopher Breslin | | Michael Katz |
230 Park Avenue | | 212-309-8941 | | 212-309-8999 |
New York, New York 10169 | | Christopher.Breslin@voya.com | | IR@voya.com |
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NYSE Ticker: | | | | Web Site: |
VOYA | | | | investors.voya.com |
Table of Contents
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| Page | | | Page |
Consolidated | | | Net Revenue, Adjusted Operating Margin, Administrative | |
Explanatory Note on Non-GAAP Financial Information | 3 - 4 | | Expenses, and Adjusted Operating Return on Capital | |
Key Metrics | | | Net Revenue and Adjusted Operating Margin | |
Consolidated Statements of Operations | | | Administrative Expenses | |
Consolidated Adjusted Operating Earnings Before Income Taxes | | | Adjusted Operating Return on Allocated Capital | |
Adjusted Operating Earnings Before Income Taxes by Segment (QTD) | | | Investment Information | |
Adjusted Operating Earnings Before Income Taxes by Segment (YTD) | | | Portfolio Results GAAP Book Value, Gross Investment Income, and | |
Consolidated Balance Sheets | | | Earned Rate by Asset Class | |
DAC/VOBA Segment Trends | | | Portfolio Results Statutory Carrying Values by Asset Class and NAIC | |
Consolidated Capital Structure | | | Ratings | |
Consolidated Assets Under Management, Assets Under Administration | | | Alternative Investment Income | |
and Advisement | | | Alternative Income and Prepayments Above (Below) Long-Term | |
Wealth Solutions | | | Expectations | |
Sources of Adjusted Operating Earnings Before Income Taxes | | | Reconciliations | |
and Key Metrics | | | Reconciliation of Adjusted Operating Earnings Before Income Taxes and | |
Client Assets Rollforward by Product Group | 16 - 17 | | Earnings Per Common Share (Diluted) (QTD) | |
Health Solutions | | | Reconciliation of Adjusted Operating Earnings Before Income Taxes and | |
Sources of Adjusted Operating Earnings Before Income Taxes | | | Earnings Per Common Share (Diluted) (YTD) | |
Key Metrics | | | Reconciliation of Adjusted Operating Revenues | |
Investment Management | | | Reconciliation of Net Revenues by Segment | 41 - 42 |
Sources of Adjusted Operating Earnings Before Income Taxes | | | Reconciliation of Adjusted Operating Earnings Before Income Taxes | |
Analysis of AUM and AUA | | | Excluding Notable Items by Segment | 43 - 44 |
Account Value Rollforward by Source | | | Reconciliation of Book Value Per Common Share, Excluding AOCI, | |
Account Value by Asset Type | | | Leverage Ratio, and Adjusted Diluted Shares | |
Corporate | | | | |
Adjusted Operating Earnings Before Income Taxes | | | | |
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Explanatory Note on Non-GAAP Financial Information
Adjusted Operating Earnings Before Income Taxes
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 by excluding items that tend to be highly variable from period to period based on capital market conditions and/or other factors. 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 a 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), which are significantly influenced by economic and market conditions, including interest rates and credit spreads, and are not indicative of normal operations. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the FVO unrelated to the implied loan-backed security income recognition for certain mortgage-backed obligations, and changes in the fair value of derivative instruments, excluding gains (losses) associated with swap settlements and accrued interest. It also includes changes in the fair value of derivatives related to managed custody guarantees, net of related reserve increases (decreases), less the estimated cost of these benefits, changes in nonperformance spread, and changes in market risk benefits;
•Income (loss) related to businesses exited or to be exited through reinsurance or divestment, which includes gains and (losses) associated with transactions to exit blocks of business, amortization of intangible assets and residual run-off activity. Excluding this activity better reveals trends in our core business and more closely aligns Adjusted operating earnings before income taxes with how we manage our segments;
•Income (loss) attributable to noncontrolling interests to which we are not economically entitled, such as Allianz SE's ("Allianz") stake in the results of VIM Holdings LLC (referred to as redeemable noncontrolling interest and Allianz noncontrolling interest) or the attribution of results from consolidated VIEs or VOEs;
•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 since the outcome of decisions to restructure debt are not indicative of normal operations;
•Impairment of goodwill and intangible assets as these represent losses related to infrequent events and do not reflect normal, cash-settled expenses;
•Amortization of acquisition-related intangible assets as well as contingent consideration fair value adjustments incurred in connection with certain acquisitions which are not indicative of current Operating expense fundamentals;
•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. These amounts do not reflect cash-settled expenses, and are not indicative of current Operating expense fundamentals; and
•Other items not indicative of normal operations or performance of our segments or 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. These items vary widely in timing, scope and frequency between periods as well as between companies to which we are compared. Accordingly, we adjust for these items as we believe that these items distort the ability to make a meaningful evaluation of the current and future performance of our segments.
The most directly comparable U.S. GAAP measure to Adjusted operating earnings before income taxes is Income (loss) before income taxes. For a reconciliation of Adjusted operating earnings before income taxes to Income (loss) before income taxes, refer to the "Reconciliations" section in this document.
Adjusted Operating Revenues
Adjusted operating revenues is a measure of our segment revenues and a non-GAAP financial measure. Each segment's Adjusted operating revenues are calculated by adjusting Total revenues for the following items:
•Net investment gains (losses);
•Revenues related to businesses exited or to be exited through reinsurance or divestment;
•Revenues attributable to noncontrolling interests, which represent the attribution of results from consolidated VIEs or VOEs; and
•Other adjustments primarily reflect fee income earned by our broker-dealers for sales of non-proprietary products, which are reflected net of commission expense in our segments’ operating revenues, other items where the income is passed on to third parties and the elimination of intercompany investment expenses included in Adjusted operating revenues.
The most directly comparable U.S. GAAP measure to Adjusted operating revenues is Total revenues. For a reconciliation of Adjusted operating revenues to Total revenues, refer to the "Reconciliations" section of this document.
Explanatory Note on Non-GAAP Financial Information
Sources of Earnings
We analyze our segment performance based on the sources of earnings. We believe this supplemental information is useful in order to gain a better understanding of our Adjusted operating earnings before income taxes for the following reasons: (1) we analyze our business using this information and (2) this presentation can be helpful for investors to understand the main drivers of Adjusted operating earnings before income taxes. The sources of earnings are defined as such:
•Investment spread and other investment income consists of net investment income and net gains (losses) associated with swap settlements and accrued interest, less interest credited to policyholder reserves.
•Fee based margin consists primarily of fees earned on assets under management ("AUM"), assets under administration and advisement ("AUA"), transaction based recordkeeping fees, and fees for subscriptions and services associated with cloud-based benefits software.
•Net underwriting gain (loss) and other revenue contains the following: the difference between fees charged for insurance risks and incurred benefits, including mortality, morbidity, surrender results, and contractual charges.
•Administrative expenses are general expenses, net of amounts capitalized as acquisition expenses and exclude commission expenses.
•Net commissions are commissions paid that are not deferred and thus recorded directly to expense.
•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). Please see the “Reconciliations” section of this document for a
reconciliation of net revenue to adjusted operating revenue for each of our segments.
• We report net revenue and adjusted operating margin for each of our segments, since they provide a meaningful measure for the two primary drivers for adjusted operating earnings – revenue growth and margin expansion.
• We also report net revenue and adjusted operating margin excluding notable items, such as alternative investment income above or below our long-term expectations. Please see the “Reconciliations” section of this document for a reconciliation of net revenue to net revenues excluding notable items and of adjusted operating earnings before income taxes to adjusted operating earnings excluding notable items.
• We report net revenue and adjusted operating margin excluding notable items since it provides 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.
Other Information
Financial information, unless otherwise noted, is rounded to millions, therefore may not sum to its corresponding total.
Key Metrics
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| Three Months Ended or As of | | Year-to-Date or As of |
(in millions USD, unless otherwise indicated) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
Net income (loss) available to Voya Financial, Inc.'s common shareholders | 248 | | 154 | | 69 | | 190 | | 166 | | 471 | | 284 |
Per common share (basic) | 2.35 | | 1.50 | | 0.70 | | 1.95 | | 1.70 | | 4.62 | | 2.79 |
Per common share (diluted) | 2.29 | | 1.41 | | 0.63 | | 1.78 | | 1.57 | | 4.31 | | 2.55 |
Adjusted operating earnings: (1) | | | | | | | | | | | | | |
Before income taxes | 229 | | 294 | | 192 | | 206 | | 254 | | 715 | | 703 |
After income taxes | 189 | | 243 | | 158 | | 227 | | 210 | | 589 | | 580 |
Effective tax rate | 17.2 | % | | 17.5 | % | | 17.9 | % | | -10.2 | % | | 17.5 | % | | 17.5 | % | | 17.4 | % |
Per common share (Adjusted diluted) | 1.74 | | 2.21 | | 1.44 | | 2.13 | | 1.97 | | 5.39 | | 5.21 |
Per common share excluding notable items | 2.07 | | 2.31 | | 1.69 | | 2.10 | | 2.24 | | 6.06 | | 5.39 |
Shareholder's equity: | | | | | | | | | | | | | |
Total Voya Financial, Inc. Common Shareholders' Equity | 2,515 | | 3,085 | | 3,342 | | 2,737 | | 2,304 | | 2,515 | | 2,304 |
Total Voya Financial, Inc. Common Shareholders' Equity - Excluding AOCI | 6,048 | | 5,876 | | 5,887 | | 5,792 | | 5,607 | | 6,048 | | 5,607 |
Book value per common share (including AOCI) | 23.93 | | 29.19 | | 34.03 | | 28.16 | | 23.70 | | 23.93 | | 23.70 |
Book value per common share (excluding AOCI) (2) | 57.55 | | 55.59 | | 59.95 | | 59.59 | | 57.69 | | 57.55 | | 57.69 |
Leverage Ratios: | | | | | | | | | | | | | |
Debt-to-Capital | 40.1 | % | | 37.7 | % | | 36.1 | % | | 40.0 | % | | 43.4 | % | | 40.1 | % | | 43.4 | % |
Financial Leverage - excluding AOCI (2) | 27.8 | % | | 29.2 | % | | 29.5 | % | | 29.5 | % | | 29.8 | % | | 27.8 | % | | 29.8 | % |
Shares: | | | | | | | | | | | | | |
Weighted-average common shares outstanding | | | | | | | | | | | | | |
Basic (3) | 106 | | 103 | | 98 | | 97 | | 98 | | 102 | | 102 |
Dilutive effect of warrants (3) | — | | 4 | | 9 | | 7 | | 6 | | 4 | | 7 |
Other dilutive effects (4) | 3 | | 3 | | 3 | | 2 | | 2 | | 3 | | 2 |
Diluted | 108 | | 110 | | 110 | | 107 | | 106 | | 109 | | 111 |
Adjusted Diluted (2) | 108 | | 110 | | 110 | | 107 | | 106 | | 109 | | 111 |
Ending shares outstanding | 105 | | 106 | | 98 | | 97 | | 97 | | 105 | | 97 |
Returned to Common Shareholders: | | | | | | | | | | | | | |
Repurchase of common shares, excluding commissions | 54 | | 162 | | — | | — | | 50 | | 216 | | 750 |
Dividends to common shareholders | 42 | | 21 | | 20 | | 19 | | 20 | | 83 | | 61 |
Total cash returned to common shareholders | 96 | | 183 | | 20 | | 19 | | 70 | | 299 | | 811 |
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(1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 37 of this document. |
(2) This measure is a Non-GAAP financial measure. For a reconciliation of this item to the most directly comparable GAAP measure, refer to page 45 of this document. |
(3) On May 10th, 2023, we issued 9.6 million shares to settle the outstanding warrants issued in connection with our IPO. For the second quarter of 2023, the impact of these issued shares on Diluted shares outstanding is split between Basic and Dilutive effect of warrants due to the mid-quarter issuance. Beginning in the third quarter of 2023, the shares are included in Basic shares outstanding. |
(4) Includes stock-based compensation awards such as restricted stock units (RSU), performance stock units (PSU), or stock options. |
Consolidated Statements of Operations
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| Three Months Ended | | Year-to-Date |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
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Revenues | | | | | | | | | | | | | |
Net investment income | 547 | | | 545 | | | 545 | | | 548 | | | 522 | | | 1,637 | | | 1,733 | |
Fee income | 489 | | | 474 | | | 464 | | | 451 | | | 445 | | | 1,427 | | | 1,291 | |
Premiums | 682 | | | 677 | | | 685 | | | 612 | | | 606 | | | 2,044 | | | 1,811 | |
Net gains (losses) | (7) | | | (56) | | | (16) | | | (47) | | | (125) | | | (79) | | | (639) | |
Other revenues | 81 | | | 86 | | | 78 | | | 31 | | | 33 | | | 245 | | | 117 | |
Income (loss) related to consolidated investment entities | 31 | | | 145 | | | 79 | | | (40) | | | (136) | | | 255 | | | 62 | |
Total revenues | 1,823 | | | 1,871 | | | 1,835 | | | 1,555 | | | 1,345 | | | 5,529 | | | 4,375 | |
Benefits and expenses | | | | | | | | | | | | | |
Interest credited and other benefits to contract owners/policyholders | (799) | | | (682) | | | (751) | | | (693) | | | (537) | | | (2,232) | | | (1,835) | |
Operating expenses | (717) | | | (770) | | | (836) | | | (673) | | | (632) | | | (2,323) | | | (1,869) | |
Net amortization of DAC/VOBA | (57) | | | (57) | | | (59) | | | (56) | | | (60) | | | (173) | | | (184) | |
Interest expense | (31) | | | (39) | | | (32) | | | (30) | | | (31) | | | (102) | | | (104) | |
Operating expenses related to consolidated investment entities | (47) | | | (60) | | | (16) | | | (20) | | | (14) | | | (123) | | | (38) | |
Total benefits and expenses | (1,651) | | | (1,608) | | | (1,694) | | | (1,472) | | | (1,274) | | | (4,953) | | | (4,030) | |
Income (loss) before income taxes | 172 | | | 263 | | | 141 | | | 83 | | | 71 | | | 576 | | | 345 | |
Income tax expense (benefit) | (74) | | | 28 | | | 12 | | | (54) | | | 29 | | | (34) | | | 49 | |
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Net income (loss) | 246 | | | 235 | | | 129 | | | 137 | | | 42 | | | 610 | | | 296 | |
Less: Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest | (16) | | | 77 | | | 46 | | | (57) | | | (138) | | | 107 | | | (20) | |
Net income (loss) available to Voya Financial, Inc. | 262 | | | 158 | | | 83 | | | 194 | | | 180 | | | 503 | | | 316 | |
Less: Preferred stock dividends | 14 | | | 4 | | | 14 | | | 4 | | | 14 | | | 32 | | | 32 | |
Net income (loss) available to Voya Financial, Inc.'s common shareholders | 248 | | | 154 | | | 69 | | | 190 | | | 166 | | | 471 | | | 284 | |
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Consolidated Adjusted Operating Earnings Before Income Taxes
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| Three Months Ended | | Year-to-Date |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
Consolidated Adjusted Operating Earnings Before Income Taxes | | | | | | | | | | | | | |
Adjusted operating revenues | | | | | | | | | | | | | |
Net investment income and net gains (losses) | 489 | | | 498 | | | 482 | | | 460 | | | 415 | | | 1,469 | | | 1,440 | |
Fee income | 489 | | | 478 | | | 468 | | | 455 | | | 451 | | | 1,434 | | | 1,309 | |
Premiums | 663 | | | 669 | | | 675 | | | 601 | | | 598 | | | 2,007 | | | 1,778 | |
Other revenue | 76 | | | 76 | | | 73 | | | 31 | | | 30 | | | 225 | | | 108 | |
Adjusted operating revenues (1) | 1,717 | | | 1,721 | | | 1,697 | | | 1,547 | | | 1,495 | | | 5,135 | | | 4,635 | |
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Adjusted operating benefits and expenses | | | | | | | | | | | | | |
Interest credited and other benefits to contract owners/policyholders | (730) | | | (656) | | | (689) | | | (648) | | | (557) | | | (2,075) | | | (1,918) | |
Operating expenses | (671) | | | (691) | | | (731) | | | (614) | | | (590) | | | (2,092) | | | (1,769) | |
Net amortization of DAC/VOBA | (29) | | | (30) | | | (31) | | | (30) | | | (32) | | | (90) | | | (93) | |
Interest expense (2) | (44) | | | (37) | | | (47) | | | (37) | | | (49) | | | (128) | | | (140) | |
Adjusted operating benefits and expenses | (1,475) | | | (1,414) | | | (1,498) | | | (1,328) | | | (1,228) | | | (4,385) | | | (3,920) | |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 242 | | | 307 | | | 200 | | | 219 | | | 267 | | | 749 | | | 715 | |
Less: Earnings (loss) attributable to Allianz noncontrolling interest | 14 | | | 13 | | | 8 | | | 13 | | | 13 | | | 35 | | | 13 | |
Adjusted operating earnings before income taxes (1) | 229 | | | 294 | | | 192 | | | 206 | | | 254 | | | 715 | | | 703 | |
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Adjusted Operating Revenues and Adjusted Operating Earnings Before Income Taxes by Segment | | | | | | | | | | | | | |
Adjusted operating revenues | | | | | | | | | | | | | |
Wealth Solutions | 702 | | | 705 | | | 684 | | | 669 | | | 645 | | | 2,090 | | | 2,109 | |
Health Solutions | 768 | | | 775 | | | 774 | | | 649 | | | 645 | | | 2,317 | | | 1,933 | |
Investment Management | 233 | | | 226 | | | 229 | | | 215 | | | 192 | | | 688 | | | 542 | |
Corporate | 14 | | | 15 | | | 11 | | | 15 | | | 13 | | | 39 | | | 51 | |
Adjusted operating revenues (1) | 1,717 | | | 1,721 | | | 1,697 | | | 1,547 | | | 1,495 | | | 5,135 | | | 4,635 | |
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Adjusted operating earnings before income taxes | | | | | | | | | | | | | |
Wealth Solutions | 179 | | | 174 | | | 132 | | | 145 | | | 128 | | | 485 | | | 553 | |
Health Solutions | 53 | | | 124 | | | 94 | | | 78 | | | 154 | | | 271 | | | 226 | |
Investment Management | 49 | | | 50 | | | 33 | | | 42 | | | 38 | | | 132 | | | 116 | |
Corporate | (52) | | | (53) | | | (68) | | | (59) | | | (65) | | | (173) | | | (193) | |
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Adjusted operating earnings before income taxes (1) | 229 | | | 294 | | | 192 | | | 206 | | | 254 | | | 715 | | | 703 | |
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(1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 37 of this document. |
(2) Includes dividend payments made to preferred shareholders. |
Adjusted Operating Earnings Before Income Taxes by Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2023 |
(in millions USD) | Wealth Solutions | | Health Solutions | | Investment Management | | | | Corporate | | Consolidated |
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Adjusted operating revenues | | | | | | | | | | | |
Net investment income and net gains (losses) | 438 | | | 35 | | | 7 | | | | | 9 | | | 489 | |
Fee income | 246 | | | 18 | | | 224 | | | | | — | | | 489 | |
Premiums | — | | | 663 | | | — | | | | | — | | | 663 | |
Other revenue | 18 | | | 51 | | | 2 | | | | | 5 | | | 76 | |
Adjusted operating revenues (1) | 702 | | | 768 | | | 233 | | | | | 14 | | | 1,717 | |
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Adjusted operating benefits and expenses | | | | | | | | | | | |
Interest credited and other benefits to contract owners/policyholders | (226) | | | (504) | | | — | | | | | — | | | (730) | |
Operating expenses | (275) | | | (204) | | | (170) | | | | | (22) | | | (671) | |
Net amortization of DAC/VOBA | (22) | | | (7) | | | — | | | | | — | | | (29) | |
Interest expense (2) | — | | | — | | | — | | | | | (44) | | | (44) | |
Adjusted operating benefits and expenses | (524) | | | (715) | | | (170) | | | | | (66) | | | (1,475) | |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 179 | | | 53 | | | 63 | | | | | (52) | | | 242 | |
Less: Earnings (loss) attributable to Allianz noncontrolling interest | — | | | — | | | 14 | | | | | — | | | 14 | |
Adjusted operating earnings before income taxes (1) | 179 | | | 53 | | | 49 | | | | | (52) | | | 229 | |
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| Three Months Ended September 30, 2022 |
| Wealth Solutions | | Health Solutions | | Investment Management | | | | Corporate | | Consolidated |
Adjusted operating revenues | | | | | | | | | | | |
Net investment income and net gains (losses) | 398 | | | 29 | | | (12) | | | | | — | | | 415 | |
Fee income | 230 | | | 19 | | | 202 | | | | | — | | | 451 | |
Premiums | — | | | 598 | | | — | | | | | — | | | 598 | |
Other revenue | 17 | | | (2) | | | 2 | | | | | 13 | | | 30 | |
Adjusted operating revenues (1) | 645 | | | 645 | | | 192 | | | | | 13 | | | 1,495 | |
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Adjusted operating benefits and expenses | | | | | | | | | | | |
Interest credited and other benefits to contract owners/policyholders | (222) | | | (335) | | | — | | | | | — | | | (557) | |
Operating expenses | (272) | | | (147) | | | (142) | | | | | (30) | | | (590) | |
Net amortization of DAC/VOBA | (23) | | | (9) | | | — | | | | | — | | | (32) | |
Interest expense (2) | — | | | — | | | — | | | | | (49) | | | (49) | |
Adjusted operating benefits and expenses | (517) | | | (491) | | | (142) | | | | | (78) | | | (1,228) | |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 128 | | | 154 | | | 51 | | | | | (66) | | | 267 | |
Less: Earnings (loss) attributable to Allianz noncontrolling interest | — | | | — | | | 13 | | | | | — | | | 13 | |
Adjusted operating earnings before income taxes (1) | 128 | | | 154 | | | 38 | | | | | (65) | | | 254 | |
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(1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 37 of this document. |
(2) Includes dividend payments made to preferred shareholders. |
Adjusted Operating Earnings Before Income Taxes by Segment
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| Nine Months Ended September 30, 2023 |
(in millions USD) | Wealth Solutions | | Health Solutions | | Investment Management | | | | Corporate | | Consolidated |
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Adjusted operating revenues | | | | | | | | | | | |
Net investment income and net gains (losses) | 1,318 | | | 104 | | | 27 | | | | | 21 | | | 1,469 | |
Fee income | 717 | | | 58 | | | 659 | | | | | — | | | 1,434 | |
Premiums | — | | | 2,007 | | | — | | | | | — | | | 2,007 | |
Other revenue | 55 | | | 148 | | | 3 | | | | | 18 | | | 225 | |
Adjusted operating revenues (1) | 2,090 | | | 2,317 | | | 688 | | | | | 39 | | | 5,135 | |
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Adjusted operating benefits and expenses | | | | | | | | | | | |
Interest credited and other benefits to contract owners/policyholders | (671) | | | (1,404) | | | — | | | | | — | | | (2,075) | |
Operating expenses | (867) | | | (619) | | | (520) | | | | | (85) | | | (2,092) | |
Net amortization of DAC/VOBA | (67) | | | (23) | | | — | | | | | — | | | (90) | |
Interest expense (2) | — | | | — | | | — | | | | | (128) | | | (128) | |
Adjusted operating benefits and expenses | (1,605) | | | (2,047) | | | (520) | | | | | (213) | | | (4,385) | |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 485 | | | 271 | | | 168 | | | | | (175) | | | 749 | |
Less: Earnings (loss) attributable to Allianz noncontrolling interest | — | | | — | | | 36 | | | | | (1) | | | 35 | |
Adjusted operating earnings before income taxes (1) | 485 | | | 271 | | | 132 | | | | | (173) | | | 715 | |
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| Nine Months Ended September 30, 2022 |
| Wealth Solutions | | Health Solutions | | Investment Management | | | | Corporate | | Consolidated |
Adjusted operating revenues | | | | | | | | | | | |
Net investment income and net gains (losses) | 1,333 | | | 103 | | | 4 | | | | | — | | | 1,440 | |
Fee income | 725 | | | 58 | | | 527 | | | | | — | | | 1,309 | |
Premiums | — | | | 1,778 | | | — | | | | | — | | | 1,778 | |
Other revenue | 52 | | | (5) | | | 10 | | | | | 51 | | | 108 | |
Adjusted operating revenues (1) | 2,109 | | | 1,933 | | | 542 | | | | | 51 | | | 4,635 | |
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Adjusted operating benefits and expenses | | | | | | | | | | | |
Interest credited and other benefits to contract owners/policyholders | (663) | | | (1,256) | | | — | | | | | — | | | (1,918) | |
Operating expenses | (823) | | | (429) | | | (412) | | | | | (104) | | | (1,769) | |
Net amortization of DAC/VOBA | (71) | | | (22) | | | — | | | | | — | | | (93) | |
Interest expense (2) | — | | | — | | | — | | | | | (140) | | | (140) | |
Adjusted operating benefits and expenses | (1,556) | | | (1,707) | | | (412) | | | | | (244) | | | (3,920) | |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest (1) | 553 | | | 226 | | | 129 | | | | | (193) | | | 715 | |
Less: Earnings (loss) attributable to Allianz noncontrolling interest | — | | | — | | | 13 | | | | | — | | | 13 | |
Adjusted operating earnings before income taxes (1) | 553 | | | 226 | | | 116 | | | | | (193) | | | 703 | |
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(1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 37 of this document.
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(2) Includes dividend payments made to preferred shareholders. |
Consolidated Balance Sheets
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| Balances as of |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 |
Assets | | | | | | | | | |
Total investments | 36,257 | | | 37,561 | | | 38,703 | | | 39,110 | | | 39,519 | |
Cash and cash equivalents | 829 | | | 1,195 | | | 724 | | | 919 | | | 840 | |
Assets held in separate accounts | 85,491 | | | 88,851 | | | 84,569 | | | 80,174 | | | 75,980 | |
Premium receivable and reinsurance recoverable, net | 11,765 | | | 12,131 | | | 12,438 | | | 12,426 | | | 12,559 | |
Short term investments under securities loan agreement and accrued investment income | 1,349 | | | 1,506 | | | 1,691 | | | 1,604 | | | 1,623 | |
Deferred policy acquisition costs, Value of business acquired | 2,278 | | | 2,304 | | | 2,333 | | | 2,363 | | | 2,389 | |
Current and deferred income taxes | 2,448 | | | 2,171 | | | 2,126 | | | 2,228 | | | 2,245 | |
Other assets (1) | 4,217 | | | 4,170 | | | 4,191 | | | 3,578 | | | 3,532 | |
Assets related to consolidated investment entities | 4,631 | | | 4,727 | | | 4,433 | | | 4,204 | | | 4,195 | |
Total Assets | 149,265 | | | 154,616 | | | 151,208 | | | 146,606 | | | 142,882 | |
Liabilities | | | | | | | | | |
Future policy benefits and contract owner account balances | 49,506 | | | 50,583 | | | 51,493 | | | 52,174 | | | 53,039 | |
Liabilities related to separate accounts | 85,491 | | | 88,851 | | | 84,569 | | | 80,174 | | | 75,980 | |
Payables under securities loan agreements, including collateral held | 1,190 | | | 1,301 | | | 1,328 | | | 1,302 | | | 1,378 | |
Short-term debt | 2 | | | 143 | | | 143 | | | 141 | | | 141 | |
Long-term debt | 2,095 | | | 2,095 | | | 2,094 | | | 2,094 | | | 2,094 | |
Other liabilities (2) | 3,397 | | | 3,394 | | | 3,350 | | | 3,290 | | | 3,270 | |
Liabilities related to consolidated investment entities | 2,625 | | | 2,721 | | | 2,544 | | | 2,434 | | | 2,319 | |
Total Liabilities | 144,306 | | | 149,088 | | | 145,521 | | | 141,609 | | | 138,221 | |
Mezzanine Equity | | | | | | | | | |
Allianz noncontrolling interest | 173 | | | 171 | | | 166 | | | 166 | | | 155 | |
Shareholders' Equity | | | | | | | | | |
Preferred stock | — | | | — | | | — | | | — | | | — | |
Common stock | 1 | | | 1 | | | 1 | | | 1 | | | 1 | |
Treasury stock | (307) | | | (248) | | | (77) | | | (39) | | | (873) | |
Additional paid-in capital | 6,664 | | | 6,695 | | | 6,693 | | | 6,643 | | | 7,945 | |
Retained earnings (deficit) | 302 | | | 40 | | | (118) | | | (201) | | | (854) | |
Total Voya Financial, Inc. Shareholders' Equity - Excluding AOCI | 6,660 | | | 6,488 | | | 6,499 | | | 6,404 | | | 6,219 | |
Accumulated other comprehensive income | (3,533) | | | (2,791) | | | (2,545) | | | (3,055) | | | (3,303) | |
Total Voya Financial, Inc. Shareholders' Equity | 3,127 | | | 3,697 | | | 3,954 | | | 3,349 | | | 2,916 | |
Noncontrolling interest | 1,659 | | | 1,660 | | | 1,567 | | | 1,482 | | | 1,590 | |
Total Shareholders' Equity | 4,786 | | | 5,357 | | | 5,521 | | | 4,831 | | | 4,506 | |
Total Liabilities, Mezzanine Equity and Shareholders' Equity | 149,265 | | | 154,616 | | | 151,208 | | | 146,606 | | | 142,882 | |
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(1) Includes Other assets, Goodwill, and Other intangibles, net. |
(2) Includes Other liabilities and Derivatives. |
DAC/VOBA Segment Trends
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Year-to-Date |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
Wealth Solutions | | | | | | | | | | | | | |
Balance as of Beginning-of-Period | 1,075 | | | 1,082 | | | 1,088 | | | 1,095 | | | 1,103 | | | 1,088 | | | 1,118 | |
Deferrals of commissions and expenses | 15 | | | 15 | | | 16 | | | 16 | | | 15 | | | 47 | | | 48 | |
Amortization | (22) | | | (22) | | | (22) | | | (23) | | | (23) | | | (67) | | | (71) | |
Balance as of End-of-Period | 1,068 | | | 1,075 | | | 1,082 | | | 1,088 | | | 1,095 | | | 1,068 | | | 1,095 | |
Deferred Sales Inducements as of End-of-Period | 22 | | | 22 | | | 22 | | | 24 | | | 23 | | | 22 | | | 23 | |
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Health Solutions | | | | | | | | | | | | | |
Balance as of Beginning-of-Period | 201 | | | 194 | | | 190 | | | 182 | | | 178 | | | 190 | | | 164 | |
Deferrals of commissions and expenses | 15 | | | 14 | | | 13 | | | 15 | | | 14 | | | 42 | | | 40 | |
Amortization | (7) | | | (8) | | | (8) | | | (7) | | | (9) | | | (23) | | | (22) | |
Balance as of End-of-Period | 208 | | | 201 | | | 194 | | | 190 | | | 182 | | | 208 | | | 182 | |
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Total | | | | | | | | | | | | | |
Balance as of Beginning-of-Period | 1,275 | | | 1,276 | | | 1,279 | | | 1,278 | | | 1,281 | | | 1,279 | | | 1,282 | |
Deferrals of commissions and expenses | 30 | | | 29 | | | 29 | | | 31 | | | 29 | | | 88 | | | 88 | |
Amortization | (29) | | | (30) | | | (31) | | | (30) | | | (32) | | | (90) | | | (93) | |
Balance as of End-of-Period, excluding businesses exited through reinsurance or divestment | 1,276 | | | 1,275 | | | 1,276 | | | 1,279 | | | 1,278 | | | 1,276 | | | 1,278 | |
Balance as of End-of-Period, businesses exited through reinsurance or divestment (1) | 1,002 | | | 1,029 | | | 1,057 | | | 1,084 | | | 1,111 | | | 1,002 | | | 1,111 | |
Balance as of End-of-Period, including businesses exited through reinsurance or divestment | 2,278 | | | 2,304 | | | 2,333 | | | 2,363 | | | 2,389 | | | 2,278 | | | 2,389 | |
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(1) Includes DAC and VOBA related to businesses ceded through reinsurance, and an insignificant number of Individual Life and non-Wealth Solutions annuities policies that were not part of the divested businesses. |
Consolidated Capital Structure | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balances as of |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 |
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Financial Debt | | | | | | | | | |
Senior bonds | 1,746 | | 1,887 | | 1,498 | | 1,496 | | 1,495 |
Subordinated bonds | 349 | | 349 | | 737 | | 737 | | 737 |
Other debt | 2 | | 2 | | 2 | | 2 | | 3 |
Total Financial Debt | 2,097 | | 2,238 | | 2,237 | | 2,235 | | 2,235 |
Other financial obligations (1) | 325 | | 326 | | 335 | | 265 | | 269 |
Total Financial Obligations | 2,422 | | 2,564 | | 2,572 | | 2,500 | | 2,504 |
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Mezzanine Equity | | | | | | | | | |
Allianz noncontrolling interest | 173 | | 171 | | 166 | | 166 | | 155 |
Equity | | | | | | | | | |
Preferred equity (2) | 612 | | 612 | | 612 | | 612 | | 612 |
Common equity (Excluding AOCI) | 6,048 | | 5,876 | | 5,887 | | 5,792 | | 5,607 |
Total Equity (Excluding AOCI) | 6,660 | | 6,488 | | 6,499 | | 6,404 | | 6,219 |
Accumulated other comprehensive income (AOCI) | (3,533) | | (2,791) | | (2,545) | | (3,055) | | (3,303) |
Total Voya Financial, Inc. Shareholders' Equity | 3,127 | | 3,697 | | 3,954 | | 3,349 | | 2,916 |
Noncontrolling interest | 1,659 | | 1,660 | | 1,567 | | 1,482 | | 1,590 |
Total Shareholders' Equity | 4,786 | | 5,357 | | 5,521 | | 4,831 | | 4,506 |
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Capital | | | | | | | | | |
Capitalization (3) | 5,224 | | 5,935 | | 6,191 | | 5,584 | | 5,151 |
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Adjusted Capitalization excluding AOCI (4) | 10,914 | | 10,883 | | 10,804 | | 10,552 | | 10,468 |
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Leverage Ratios | | | | | | | | | |
Debt-to-Capital (5) | 40.1 | % | | 37.7 | % | | 36.1 | % | | 40.0 | % | | 43.4 | % |
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Financial Leverage excluding AOCI (6) | 27.8 | % | | 29.2 | % | | 29.5 | % | | 29.5 | % | | 29.8 | % |
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(1) Includes operating leases, capital leases, and unfunded pension plan after-tax. |
(2) Includes Preferred stock par value and additional paid-in-capital. |
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(3) Includes Total Financial Debt and Total Voya Financial Inc. Shareholders' Equity. |
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(4) Includes Total Financial Obligations, Mezzanine Equity, and Total Shareholders' Equity excluding AOCI. |
(5) Total Financial Debt divided by Capitalization. |
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(6) Total Financial Obligations and Preferred equity divided by Adjusted Capitalization excluding AOCI. This measure is a Non-GAAP financial measure. For a reconciliation of this item to the most directly comparable GAAP measure, refer to page 45 of this document. |
Consolidated Assets Under Management, Assets Under Administration and Advisement
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As of September 30, 2023 | | | | | | | | | | | |
(in millions USD) | General Account | | Separate Account | | Institutional/Mutual Funds | | Total AUM - Assets Under Management | | AUA - Assets Under Administration & Advisement (2) | | Total AUM and AUA |
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Wealth Solutions (1) | 32,136 | | | 81,697 | | | 80,846 | | | 194,679 | | | 314,894 | | | 509,572 | |
Health Solutions | 1,854 | | | 15 | | | — | | | 1,869 | | | — | | | 1,869 | |
Investment Management | 35,792 | | | 24,796 | | | 251,228 | | | 311,816 | | | 55,066 | | | 366,882 | |
Eliminations/Other (3) | (33,990) | | | (21,017) | | | (11,328) | | | (66,335) | | | (41,664) | | | (107,999) | |
Total AUM and AUA | 35,792 | | | 85,491 | | | 320,746 | | | 442,029 | | | 328,296 | | | 770,324 | |
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(1) Includes wrapped funds as well as unwrapped Voya-managed funds. |
(2) Wealth Solutions Assets under Administration and Advisement includes Recordkeeping, Stable Value investment-only wrap, Brokerage and Investment Advisory assets. Investment Management Assets under Administration and Advisement includes Mutual Fund, Institutional, Stable Value and General Account assets where only advisement, administrative, distribution coverage, relationship management and client servicing, or ancillary services are performed. |
(3) Includes eliminations for AUM and AUA in our Wealth and Health segments that are managed by our Investment Management Segment and also reported in their AUM and AUA. |
Wealth Solutions
Wealth Solutions Sources of Adjusted Operating Earnings Before Income Taxes and Key Metrics | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended or As of | | | | Twelve Months Ended or As of |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | | | | | 9/30/2023 | | 9/30/2022 |
Sources of operating earnings before income taxes: | | | | | | | | | | | | | | | | | |
Gross investment income | 422 | | | 427 | | | 430 | | | 432 | | | 427 | | | | | | | 1,711 | | | 1,622 | |
Investment expenses | (18) | | | (19) | | | (19) | | | (20) | | | (20) | | | | | | | (76) | | | (79) | |
Credited interest | (223) | | | (221) | | | (218) | | | (220) | | | (218) | | | | | | | (882) | | | (874) | |
Net margin | 181 | | | 187 | | | 192 | | | 192 | | | 189 | | | | | | | 752 | | | 669 | |
Other investment income (1)(2) | 57 | | | 52 | | | 57 | | | 60 | | | 59 | | | | | | | 226 | | | 233 | |
Investment spread and other investment income, excluding alts/prepays above/below expectations | 238 | | | 239 | | | 249 | | | 252 | | | 248 | | | | | | | 978 | | | 901 | |
Alternative investment income and prepayment fees above (below) long-term expectations | (24) | | | (14) | | | (33) | | | (50) | | | (70) | | | | | | | (121) | | | 57 | |
Investment spread and other investment income | 214 | | | 225 | | | 216 | | | 202 | | | 178 | | | | | | | 857 | | | 959 | |
Full service fee based revenue | 150 | | | 143 | | | 136 | | | 134 | | | 137 | | | | | | | 563 | | | 609 | |
Recordkeeping and other fee based revenue (2) | 109 | | | 109 | | | 107 | | | 105 | | | 105 | | | | | | | 430 | | | 440 | |
Total fee based margin | 259 | | | 252 | | | 243 | | | 238 | | | 242 | | | | | | | 992 | | | 1,049 | |
Net underwriting gain (loss) and other revenue | 2 | | | 4 | | | 4 | | | 5 | | | 3 | | | | | | | 15 | | | 8 | |
Net revenue (3) | 475 | | | 481 | | | 463 | | | 445 | | | 423 | | | | | | | 1,864 | | | 2,015 | |
Administrative expenses | (216) | | | (228) | | | (251) | | | (223) | | | (214) | | | | | | | (918) | | | (876) | |
Net commissions | (58) | | | (57) | | | (56) | | | (55) | | | (57) | | | | | | | (226) | | | (244) | |
DAC/VOBA and other intangibles amortization | (23) | | | (23) | | | (23) | | | (23) | | | (24) | | | | | | | (92) | | | (96) | |
Adjusted operating earnings before income taxes | 179 | | | 174 | | | 132 | | | 145 | | | 128 | | | | | | | 630 | | | 798 | |
Adjusted Operating Margin TTM | 33.8 | % | | 31.9 | % | | 33.1 | % | | 36.9 | % | | 39.6 | % | | | | | | | | |
Adjusted Operating Margin Excluding Notables TTM | 37.8 | % | | 37.7 | % | | 38.6 | % | | 39.3 | % | | 37.9 | % | | | | | | | | |
Full Service Revenue (4) | | | | | | | | | | | | | | | | | |
Full Service Investment Spread and other investment income | 206 | | | 214 | | | 206 | | | 194 | | | 170 | | | | | | | 820 | | | 918 | |
Full Service Fee Based Revenue | 150 | | | 143 | | | 136 | | | 134 | | | 137 | | | | | | | 563 | | | 609 | |
Total Full Service Revenue | 356 | | | 357 | | | 343 | | | 327 | | | 307 | | | | | | | 1,383 | | | 1,527 | |
Client Assets | | | | | | | | | | | | | | | | | |
Fee Based (5) | 423,118 | | 429,958 | | 408,688 | | 387,961 | | 364,099 | | | | | | 423,118 | | | 364,099 | |
Spread Based (6) | 32,136 | | 32,699 | | 33,242 | | 33,881 | | 34,358 | | | | | | 32,136 | | | 34,358 | |
Investment-only Stable Value | 35,450 | | 37,354 | | 37,781 | | 38,148 | | 38,944 | | | | | | 35,450 | | | 38,944 | |
Retail Client Assets (7) | 25,867 | | 26,570 | | 25,757 | | 24,908 | | 23,547 | | | | | | 25,867 | | | 23,547 | |
Eliminations (7) | (6,998) | | (7,639) | | (7,574) | | (7,511) | | (7,355) | | | | | | (6,998) | | | (7,355) | |
Total Client Assets (5) | 509,572 | | 518,941 | | 497,895 | | 477,386 | | 453,594 | | | | | | 509,572 | | | 453,594 | |
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(1) Includes investment income on assets backing surplus, investment income on cash balances, and income from policy loans. |
(2) Effective third quarter 2023, Other investment income includes investment income on cash balances that was previously reported in Recordkeeping and other fee-based revenue. This reclassification was made in order to better align interest-sensitive revenues. Historical periods have been recast to conform with the current quarter’s presentation. |
(3) Refer to the "Reconciliations" section of this document for a reconciliation of net revenue to adjusted operating revenue. | | | | |
(4) Excludes Net underwriting gain (loss) and other revenue. |
(5) Effective first quarter of 2023, includes asset balances associated with non-qualified retirement plans for clients using only our non-qualified solutions. Historical periods presented have been recast to conform with this change. |
(6) Spread Based Client Assets include Full Service, as well as proprietary IRA mutual fund product and other guaranteed payout products. |
(7) Includes asset eliminations previously reported in Recordkeeping and Retail Client Assets. This change has no impact on fee revenue, as fees are calculated using respective asset bases. Historical periods presented have been recast to conform with this change. |
Wealth Solutions Client Assets Rollforward by Product Group
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| Three Months Ended | | | | Twelve Months Ended |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | | | | | 9/30/2023 | | 9/30/2022 |
Full Service - Corporate markets | | | | | | | | | | | | | | | | | |
Client Assets, beginning of period | 96,492 | | | 91,615 | | | 85,965 | | | 80,126 | | | 83,320 | | | | | | | 80,126 | | | 95,448 | |
Transfers / Single deposits | 1,431 | | | 1,343 | | | 1,770 | | | 1,603 | | | 1,074 | | | | | | | 6,147 | | | 5,501 | |
Recurring deposits | 2,549 | | | 2,587 | | | 2,850 | | | 2,108 | | | 2,231 | | | | | | | 10,094 | | | 9,024 | |
Total Deposits | 3,980 | | | 3,930 | | | 4,621 | | | 3,710 | | | 3,305 | | | | | | | 16,241 | | | 14,527 | |
Surrenders, benefits, and product charges | (3,368) | | | (3,244) | | | (3,477) | | | (2,900) | | | (2,589) | | | | | | | (12,989) | | | (12,951) | |
Net Flows | 612 | | | 686 | | | 1,144 | | | 811 | | | 716 | | | | | | | 3,253 | | | 1,575 | |
Interest credited and investment performance | (3,044) | | | 4,191 | | | 4,506 | | | 5,028 | | | (3,909) | | | | | | | 10,681 | | | (16,895) | |
Client Assets, end of period - Corporate markets | 94,059 | | | 96,492 | | | 91,615 | | | 85,965 | | | 80,126 | | | | | | | 94,059 | | | 80,126 | |
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Full Service - Tax-exempt markets | | | | | | | | | | | | | | | | | |
Client Assets, beginning of period (1) | 81,906 | | | 79,022 | | | 76,672 | | | 73,102 | | | 75,608 | | | | | | | 73,102 | | | 84,913 | |
Transfers / Single deposits | 273 | | | 271 | | | 323 | | | 887 | | | 248 | | | | | | | 1,754 | | | 1,555 | |
Recurring deposits | 1,036 | | | 1,079 | | | 1,100 | | | 1,061 | | | 986 | | | | | | | 4,276 | | | 4,018 | |
Total Deposits | 1,309 | | | 1,350 | | | 1,424 | | | 1,948 | | | 1,235 | | | | | | | 6,031 | | | 5,574 | |
Surrenders, benefits, and product charges | (1,793) | | | (1,633) | | | (2,586) | | | (1,807) | | | (1,395) | | | | | | | (7,819) | | | (6,032) | |
Net Flows | (484) | | | (283) | | | (1,162) | | | 141 | | | (161) | | | | | | | (1,788) | | | (457) | |
Interest credited and investment performance | (1,758) | | | 3,167 | | | 3,513 | | | 3,428 | | | (2,346) | | | | | | | 8,350 | | | (11,354) | |
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Client Assets, end of period - Tax-exempt markets (1) | 79,663 | | | 81,906 | | | 79,022 | | | 76,672 | | | 73,102 | | | | | | | 79,663 | | | 73,102 | |
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Full Service - Total | | | | | | | | | | | | | | | | | |
Client Assets, beginning of period (1) | 178,398 | | | 170,637 | | | 162,636 | | | 153,228 | | | 158,928 | | | | | | | 153,228 | | | 180,361 | |
Transfers / Single deposits | 1,704 | | | 1,615 | | | 2,094 | | | 2,489 | | | 1,322 | | | | | | | 7,902 | | | 7,056 | |
Recurring deposits | 3,585 | | | 3,666 | | | 3,951 | | | 3,169 | | | 3,217 | | | | | | | 14,371 | | | 13,042 | |
Total Deposits | 5,289 | | | 5,281 | | | 6,044 | | | 5,658 | | | 4,539 | | | | | | | 22,272 | | | 20,100 | |
Surrenders, benefits, and product charges | (5,162) | | | (4,877) | | | (6,062) | | | (4,706) | | | (3,984) | | | | | | | (20,807) | | | (18,982) | |
Net Flows | 127 | | | 403 | | | (18) | | | 952 | | | 555 | | | | | | | 1,464 | | | 1,117 | |
Interest credited and investment performance | (4,803) | | | 7,358 | | | 8,019 | | | 8,456 | | | (6,255) | | | | | | | 19,030 | | | (28,249) | |
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Client Assets, end of period - Full Service Total (1) | 173,723 | | | 178,398 | | | 170,637 | | | 162,636 | | | 153,228 | | | | | | | 173,723 | | | 153,228 | |
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Full Service - Client Assets | | | | | | | | | | | | | | | | | |
Fee-based (1) | 141,947 | | | 146,077 | | | 137,792 | | | 129,171 | | | 119,299 | | | | | | | 141,947 | | | 119,299 | |
Spread-based | 31,776 | | | 32,321 | | | 32,845 | | | 33,466 | | | 33,929 | | | | | | | 31,776 | | | 33,929 | |
Client Assets, end of period - Full Service Total (1) | 173,723 | | | 178,398 | | | 170,637 | | | 162,636 | | | 153,228 | | | | | | | 173,723 | | | 153,228 | |
(1) Effective first quarter of 2023, includes asset balances associated with non-qualified retirement plans for clients using only our non-qualified solutions. Historical periods presented have been recast to conform with this change. |
Wealth Solutions Client Assets Rollforward by Product Group
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| Three Months Ended | | | | Twelve Months Ended |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | | | | | 9/30/2023 | | 9/30/2022 |
Recordkeeping (1) | | | | | | | | | | | | | | | | | |
Client Assets, beginning of period | 279,669 | | | 267,038 | | | 254,957 | | | 241,241 | | | 248,931 | | | | | | | 241,241 | | | 278,553 | |
Transfers / Single deposits | 4,683 | | | 4,590 | | | 2,332 | | | 979 | | | 3,573 | | | | | | | 12,584 | | | 7,935 | |
Recurring deposits | 4,964 | | | 4,857 | | | 5,504 | | | 3,778 | | | 4,278 | | | | | | | 19,103 | | | 17,746 | |
Total Deposits | 9,646 | | | 9,447 | | | 7,836 | | | 4,758 | | | 7,851 | | | | | | | 31,687 | | | 25,681 | |
Surrenders, benefits, and product charges | (6,653) | | | (5,847) | | | (7,747) | | | (5,327) | | | (5,846) | | | | | | | (25,574) | | | (32,092) | |
Net Flows | 2,993 | | | 3,600 | | | 89 | | | (569) | | | 2,004 | | | | | | | 6,113 | | | (6,412) | |
Interest credited and investment performance | (5,794) | | | 9,030 | | | 11,993 | | | 14,285 | | | (9,694) | | | | | | | 29,514 | | | (30,900) | |
| | | | | | | | | | | | | | | | | |
Client Assets, end of period - Recordkeeping | 276,869 | | | 279,669 | | | 267,038 | | | 254,957 | | | 241,241 | | | | | | | 276,869 | | | 241,241 | |
| | | | | | | | | | | | | | | | | |
Total Defined Contribution (2) | | | | | | | | | | | | | | | | | |
Client Assets, beginning of period | 458,068 | | | 437,675 | | | 417,593 | | | 394,469 | | | 407,859 | | | | | | | 394,469 | | | 458,914 | |
Transfers / Single deposits | 6,386 | | | 6,205 | | | 4,425 | | | 3,469 | | | 4,895 | | | | | | | 20,485 | | | 14,990 | |
Recurring deposits | 8,548 | | | 8,523 | | | 9,455 | | | 6,947 | | | 7,495 | | | | | | | 33,473 | | | 30,791 | |
Total Deposits | 14,935 | | | 14,728 | | | 13,880 | | | 10,416 | | | 12,390 | | | | | | | 53,959 | | | 45,780 | |
Surrenders, benefits, and product charges | (11,814) | | | (10,724) | | | (13,810) | | | (10,033) | | | (9,831) | | | | | | | (46,381) | | | (51,076) | |
Net Flows | 3,120 | | | 4,004 | | | 70 | | | 383 | | | 2,559 | | | | | | | 7,577 | | | (5,296) | |
Interest credited and investment performance | (10,596) | | | 16,389 | | | 20,012 | | | 22,741 | | | (15,949) | | | | | | | 48,546 | | | (59,149) | |
Client Assets, end of period - Total Defined Contribution | 450,591 | | | 458,068 | | | 437,675 | | | 417,593 | | | 394,469 | | | | | | | 450,591 | | | 394,469 | |
| | | | | | | | | | | | | | | | | |
Defined Contribution Investment-only Stable Value (SV) (3) | | | | | | | | | | | | | | | | | |
Assets, beginning of period | 37,354 | | | 37,781 | | | 38,148 | | | 38,944 | | | 39,622 | | | | | | | 38,944 | | | 41,329 | |
Transfers / Single deposits | 90 | | | 345 | | | 323 | | | 435 | | | 177 | | | | | | | 1,193 | | | 2,587 | |
Recurring deposits | 109 | | | 70 | | | 112 | | | 440 | | | 169 | | | | | | | 731 | | | 665 | |
Total Deposits | 199 | | | 416 | | | 435 | | | 875 | | | 346 | | | | | | | 1,925 | | | 3,251 | |
Surrenders, benefits, and product charges | (2,043) | | | (1,338) | | | (1,146) | | | (1,269) | | | (431) | | | | | | | (5,796) | | | (2,372) | |
Net Flows | (1,844) | | | (923) | | | (710) | | | (394) | | | (84) | | | | | | | (3,871) | | | 879 | |
Interest credited and investment performance | (60) | | | 496 | | | 344 | | | (402) | | | (593) | | | | | | | 378 | | | (3,265) | |
Assets, end of period - Defined Contribution Investment-only SV | 35,450 | | | 37,354 | | | 37,781 | | | 38,148 | | | 38,944 | | | | | | | 35,450 | | | 38,944 | |
| | | | | | | | | | | | | | | | | |
Retail Client Assets (1)(4) | 25,872 | | | 26,575 | | | 25,762 | | | 24,913 | | | 23,553 | | | | | | | 25,872 | | | 23,553 | |
| | | | | | | | | | | | | | | | | |
Other Assets (5) | 4,657 | | | 4,584 | | | 4,250 | | | 4,243 | | | 3,983 | | | | | | | 4,657 | | | 3,983 | |
Eliminations (1) | (6,998) | | | (7,639) | | | (7,574) | | | (7,511) | | | (7,355) | | | | | | | (6,998) | | | (7,355) | |
Total Client Assets (6) | 509,572 | | | 518,941 | | | 497,895 | | | 477,386 | | | 453,594 | | | | | | | 509,572 | | | 453,594 | |
| | | | |
(1) Includes asset eliminations previously reported in Recordkeeping and Retail Client Assets. This change has no impact on fee revenue, as fees are calculated using respective asset bases. Historical periods presented have been recast to conform with this change. |
(2) Total of Full Service and Recordkeeping. |
(3) Includes Stable Value Investment-only Wrap and Stable Value Separate Accounts. |
(4) Includes assets of our Retail Wealth Management business, as well as assets in a proprietary IRA mutual fund product that is distributed by both VFA (affiliated) and non-affiliated advisors. |
(5) Includes other guaranteed payout products and Non-qualified Retirement Plans. |
(6) Effective first quarter of 2023, includes asset balances associated with non-qualified retirement plans for clients using only our non-qualified solutions. Historical periods presented have been recast to conform with this change. |
Health Solutions
Health Solutions Sources of Adjusted Operating Earnings before income taxes | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | | | Twelve Months Ended or As of |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | | | | | 9/30/2023 | | 9/30/2022 |
Sources of operating earnings before income taxes: | | | | | | | | | | | | | | | | | |
Gross investment income | 25 | | | 25 | | | 24 | | | 24 | | | 24 | | | | | | | 98 | | | 95 | |
Investment expenses | (1) | | | (1) | | | (1) | | | (1) | | | (1) | | | | | | | (4) | | | (4) | |
Credited interest | (12) | | | (12) | | | (12) | | | (12) | | | (13) | | | | | | | (48) | | | (52) | |
Net margin | 12 | | | 12 | | | 11 | | | 11 | | | 11 | | | | | | | 46 | | | 39 | |
Other investment income | 14 | | | 12 | | | 12 | | | 14 | | | 13 | | | | | | | 52 | | | 47 | |
Investment spread and other investment income, excluding alts/prepays above/below expectations | 25 | | | 24 | | | 23 | | | 24 | | | 24 | | | | | | | 96 | | | 86 | |
Alternative investment income and prepayment fees above (below) long-term expectations | (2) | | | — | | | (2) | | | (5) | | | (7) | | | | | | | (9) | | | 7 | |
Investment spread and other investment income | 23 | | | 23 | | | 21 | | | 19 | | | 17 | | | | | | | 86 | | | 92 | |
Fee based margin (1) | 57 | | | 58 | | | 53 | | | 3 | | | 4 | | | | | | | 171 | | | 17 | |
Net underwriting gain (loss) and other revenue | 184 | | | 261 | | | 233 | | | 202 | | | 289 | | | | | | | 880 | | | 739 | |
Net revenue (2) | 264 | | | 342 | | | 306 | | | 225 | | | 310 | | | | | | | 1,137 | | | 848 | |
Administrative expenses | (122) | | | (128) | | | (124) | | | (71) | | | (66) | | | | | | | (445) | | | (271) | |
Premium taxes, fees and assessments | (37) | | | (37) | | | (35) | | | (27) | | | (39) | | | | | | | (136) | | | (128) | |
Net commissions | (45) | | | (46) | | | (44) | | | (43) | | | (41) | | | | | | | (178) | | | (163) | |
DAC/VOBA and other intangibles amortization | (7) | | | (8) | | | (8) | | | (7) | | | (9) | | | | | | | (30) | | | (28) | |
Adjusted operating earnings before income taxes | 53 | | | 124 | | | 94 | | | 78 | | | 154 | | | | | | | 349 | | | 256 | |
Adjusted Operating Margin TTM | 30.6 | % | | 38.0 | % | | 36.2 | % | | 33.7 | % | | 30.3 | % | | | | | | | | |
Adjusted Operating Margin Excluding Notables TTM | 32.2 | % | | 35.8 | % | | 33.5 | % | | 33.0 | % | | 31.2 | % | | | | | | | | |
Group life: | | | | | | | | | | | | | | | | | |
Premiums | 150 | | | 157 | | | 157 | | | 151 | | | 150 | | | | | | | 615 | | | 580 | |
Benefits | (118) | | | (135) | | | (134) | | | (124) | | | (50) | | | | | | | (511) | | | (485) | |
Other (3) | (4) | | | (2) | | | (3) | | | (1) | | | (2) | | | | | | | (10) | | | (7) | |
Total Group life | 29 | | | 20 | | | 21 | | | 26 | | | 98 | | | | | | | 96 | | | 88 | |
Group Life Loss Ratio (Interest adjusted) (4) | 78.4 | % | | 86.1 | % | | 84.9 | % | | 82.3 | % | | 71.4 | % | | | | | | 83.0 | % | | 93.6 | % |
Group stop loss: | | | | | | | | | | | | | | | | | |
Premiums | 368 | | | 359 | | | 358 | | | 314 | | | 311 | | | | | | | 1,399 | | | 1,204 | |
Benefits | (307) | | | (225) | | | (251) | | | (226) | | | (238) | | | | | | | (1,009) | | | (932) | |
Other (3) | (10) | | | (1) | | | (1) | | | (1) | | | (1) | | | | | | | (13) | | | (4) | |
Total Group stop loss | 51 | | | 133 | | | 106 | | | 87 | | | 72 | | | | | | | 377 | | | 268 | |
Stop loss Loss Ratio | 83.3 | % | | 62.6 | % | | 70.1 | % | | 72.0 | % | | 76.4 | % | | | | | | 72.1 | % | | 77.4 | % |
Voluntary Benefits, Disability, and Other | 104 | | | 108 | | | 106 | | | 93 | | | 123 | | | | | | | 411 | | | 383 | |
Net underwriting gain (loss) and other revenue | | | | | | | | | | | | | | | | | |
Premiums | 692 | | | 689 | | | 688 | | | 626 | | | 619 | | | | | | | 2,695 | | | 2,391 | |
Benefits | (494) | | | (423) | | | (450) | | | (420) | | | (326) | | | | | | | (1,787) | | | (1,635) | |
Other (3) | (14) | | | (5) | | | (4) | | | (4) | | | (3) | | | | | | | (27) | | | (19) | |
Total Net underwriting gain (loss) and other revenue | 184 | | | 261 | | | 233 | | | 202 | | | 289 | | | | | | | 880 | | | 739 | |
Total Aggregate Loss Ratio TTM (4) | 66.3 | % | | 63.9 | % | | 66.3 | % | | 68.9 | % | | 70.7 | % | | | | | | 66.3 | % | | 70.7 | % |
| | | | |
(1) Includes fees for subscriptions and services associated with cloud-based benefits software and Health Account Solutions products. | | | | |
(2) Refer to the "Reconciliations" section of this document for a reconciliation of net revenue to adjusted operating revenue. | | | | |
(3) Includes service fees, dividends, interest expenses, and other miscellaneous expenses. The Loss Ratio calculation does not include Other. | | | | |
(4) Loss Ratio calculation excludes $57M of favorable reserve release in third quarter of 2022 related to our annual assumption update. | | | | |
Health Solutions Key Metrics
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended or As of | | | | Twelve Months Ended or As of |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | | | | | 9/30/2023 | | 9/30/2022 |
| | | | | | | | | | | | | | | | | |
Sales by Product Line: | | | | | | | | | | | | | | | | | |
Group life and Disability | 4 | | | 14 | | | 104 | | | 23 | | | 4 | | | | | | | 145 | | | 116 | |
Stop loss | 67 | | | 25 | | | 343 | | | 20 | | | 42 | | | | | | | 455 | | | 403 | |
Voluntary and Other (1) | 12 | | | 43 | | | 90 | | | 13 | | | 12 | | | | | | | 158 | | | 142 | |
| | | | | | | | | | | | | | | | | |
Total sales by product line | 83 | | | 82 | | | 538 | | | 56 | | | 58 | | | | | | | 759 | | | 661 | |
| | | | | | | | | | | | | | | | | |
Total gross premiums and deposits | 762 | | | 765 | | | 761 | | | 687 | | | 707 | | | | | | | 2,975 | | | 2,648 | |
| | | | | | | | | | | | | | | | | |
Annualized In-force Premiums and Fees by Product Line: | | | | | | | | | | | | | | | | | |
Group life and Disability | 917 | | | 925 | | | 912 | | | 833 | | | 817 | | | | | | | 917 | | | 817 | |
Stop loss | 1,490 | | | 1,461 | | | 1,457 | | | 1,258 | | | 1,259 | | | | | | | 1,490 | | | 1,259 | |
Voluntary and Other (1) | 936 | | | 941 | | | 930 | | | 689 | | | 684 | | | | | | | 936 | | | 684 | |
| | | | | | | | | | | | | | | | | |
Total annualized in-force premiums and fees by product line | 3,343 | | | 3,327 | | | 3,300 | | | 2,780 | | | 2,760 | | | | | | | 3,343 | | | 2,760 | |
| | | | | | | | | | | | | | | | | |
Assets Under Management by Fund Group: | | | | | | | | | | | | | | | | | |
General account | 1,854 | | | 1,870 | | | 1,829 | | | 1,866 | | | 1,938 | | | | | | | 1,854 | | | 1,938 | |
Separate account | 15 | | | 15 | | | 15 | | | 14 | | | 14 | | | | | | | 15 | | | 14 | |
Total AUM | 1,869 | | | 1,886 | | | 1,844 | | | 1,880 | | | 1,952 | | | | | | | 1,869 | | | 1,952 | |
| | | | | | | | | | | | | | | | | |
(1) Includes benefit administration annual recurring revenue and Health Account Solutions products. | | | | |
Investment Management
Investment Management Sources of Adjusted Operating Earnings Before Income Taxes
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | | | Twelve Months Ended or As of |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | | | | | 9/30/2023 | | 9/30/2022 |
| | | | | | | | | | | | | | | | | |
Sources of operating earnings before income taxes: | | | | | | | | | | | | | | | | | |
Investment capital and other investment income, excluding alts/prepays above/below expectations | 9 | | | 9 | | | 8 | | | 8 | | | 8 | | | | | | | 34 | | | 32 | |
Alternative investment income and prepayment fees above (below) long-term expectations | (2) | | | — | | | 2 | | | (9) | | | (20) | | | | | | | (9) | | | (8) | |
Investment spread and other investment income | 7 | | | 9 | | | 10 | | | (1) | | | (12) | | | | | | | 25 | | | 25 | |
Fee based margin (1) | 226 | | | 217 | | | 218 | | | 216 | | | 204 | | | | | | | 877 | | | 717 | |
Net revenue (2) | 233 | | | 226 | | | 229 | | | 215 | | | 192 | | | | | | | 903 | | | 742 | |
Administrative expenses (3) | (170) | | | (163) | | | (186) | | | (158) | | | (142) | | | | | | | (677) | | | (554) | |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | 63 | | | 63 | | | 42 | | | 57 | | | 51 | | | | | | | 225 | | | 189 | |
Adjusted Operating Margin TTM | 24.9 | % | | 24.7 | % | | 23.4 | % | | 24.7 | % | | 25.5 | % | | | | | | | | |
Adjusted Operating Margin Excluding Notables TTM | 25.5 | % | | 26.4 | % | | 25.4 | % | | 26.8 | % | | 26.0 | % | | | | | | | | |
Fee based margin (1) | | | | | | | | | | | | | | | | | |
Investment advisory and administrative revenue | 224 | | | 218 | | | 216 | | | 209 | | | 202 | | | | | | | 867 | | | 705 | |
Other fee based margin | 2 | | | (1) | | | 2 | | | 6 | | | 2 | | | | | | | 9 | | | 13 | |
Fee based margin | 226 | | | 217 | | | 218 | | | 216 | | | 204 | | | | | | | 877 | | | 717 | |
| | | | | | | | | | | | | | | | | |
Reconciliation to Adjusted operating earnings before income taxes | | | | | | | | | | | | | | | | | |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | 63 | | | 63 | | | 42 | | | 57 | | | 51 | | | | | | | 225 | | | 189 | |
Less: Earnings (loss) attributable to Allianz noncontrolling interest | 14 | | | 14 | | | 9 | | | 14 | | | 13 | | | | | | | 51 | | | 13 | |
Adjusted operating earnings before income taxes | 49 | | | 50 | | | 33 | | | 42 | | | 38 | | | | | | | 174 | | | 176 | |
| | | | |
(1) Includes mutual fund third party distribution revenues which are reported net of distribution expenses, consistent with the U.S. GAAP presentation. |
(2) Refer to the "Reconciliations" section of this document for a reconciliation of net revenue to adjusted operating revenue. |
(3) Includes expenses attributable to investment capital results above (below) long-term expectations. |
Investment Management Analysis of AUM and AUA
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | | | Twelve Months Ended or As of |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | | | | | 9/30/2023 | | 9/30/2022 |
Client Assets: | | | | | | | | | | | | | | | | | |
External Clients | | | | | | | | | | | | | | | | | |
Institutional | 147,904 | | | 156,435 | | | 164,443 | | | 161,502 | | | 160,720 | | | | | | | 147,904 | | | 160,720 | |
Retail | 128,120 | | | 131,391 | | | 126,212 | | | 121,833 | | | 118,016 | | | | | | | 128,120 | | | 118,016 | |
Subtotal External Clients | 276,024 | | | 287,826 | | | 290,654 | | | 283,335 | | | 278,735 | | | | | | | 276,024 | | | 278,735 | |
General Account | 35,792 | | | 36,154 | | | 36,934 | | | 38,028 | | | 38,614 | | | | | | | 35,792 | | | 38,614 | |
Total Client Assets (AUM) | 311,816 | | | 323,980 | | | 327,589 | | | 321,363 | | | 317,349 | | | | | | | 311,816 | | | 317,349 | |
Assets under Advisement and Administration (AUA) | 55,066 | | | 57,326 | | | 56,310 | | | 55,601 | | | 51,862 | | | | | | | 55,066 | | | 51,862 | |
Total AUM and AUA | 366,882 | | | 381,306 | | | 383,899 | | | 376,963 | | | 369,210 | | | | | | | 366,882 | | | 369,210 | |
| | | | | | | | | | | | | | | | | |
Investment Advisory and Administrative Revenues (1) | | | | | | | | | | | | | | | | | |
External Clients | | | | | | | | | | | | | | | | | |
Institutional | 90 | | | 91 | | | 92 | | | 90 | | | 89 | | | | | | | 363 | | 354 |
Retail | 111 | | | 103 | | | 99 | | | 95 | | | 88 | | | | | | | 408 | | 249 |
Subtotal External Clients | 201 | | | 194 | | | 191 | | | 185 | | | 177 | | | | | | | 771 | | 602 |
General Account | 19 | | | 19 | | | 20 | | | 20 | | | 20 | | | | | | | 78 | | 80 |
Total Investment Advisory and Administrative Revenues (AUM) | 219 | | | 213 | | | 211 | | | 205 | | | 197 | | | | | | | 848 | | 682 |
Administration Only Fees | 5 | | | 5 | | | 5 | | | 5 | | | 5 | | | | | | | 20 | | 21 |
Total Investment Advisory and Administrative Revenues | 224 | | | 218 | | | 216 | | | 209 | | | 202 | | | | | | | 867 | | 705 |
| | | | | | | | | | | | | | | | | |
Revenue Yield (bps) (1) | | | | | | | | | | | | | | | | | |
External Clients | | | | | | | | | | | | | | | | | |
Institutional | 23.5 | | | 22.7 | | | 22.6 | | | 22.1 | | | 21.4 | | | | | | | 22.7 | | | 23.8 | |
Retail | 33.7 | | | 32.1 | | | 31.6 | | | 31.1 | | | 28.0 | | | | | | | 32.1 | | | 29.6 | |
Revenue Yield on External Clients (2) | 28.2 | | | 26.8 | | | 26.5 | | | 26.0 | | | 24.3 | | | | | | | 26.9 | | | 25.9 | |
General Account | 20.6 | | | 20.8 | | | 20.8 | | | 20.8 | | | 21.1 | | | | | | | 20.8 | | | 21.1 | |
Revenue Yield on Client Assets (AUM) | 27.4 | | | 26.2 | | | 25.8 | | | 25.3 | | | 23.9 | | | | | | | 26.2 | | | 25.2 | |
Revenue Yield on Advisement and Administrative Only Assets (AUA) | 3.2 | | | 3.5 | | | 3.7 | | | 3.7 | | | 3.4 | | | | | | | 3.5 | | | 3.7 | |
Total Revenue Yield on AUM and AUA (bps) | 23.7 | | | 22.8 | | | 22.6 | | | 22.3 | | | 21.0 | | | | | | | 22.9 | | | 21.5 | |
| | | | | | | | | | | | | | | | | |
Revenue Yield on Client Assets (AUM) - trailing twelve months | 26.2 | | | 25.8 | | | 23.1 | | | 21.3 | | | 25.2 | | | | | | | 26.2 | | | 25.2 | |
| | | | |
(1) Investment Advisory and Administrative Revenues and resulting Revenue Yields exclude any performance fees. |
(2) External client yields for 9/30/2022 do not reflect a full quarter of revenues resulting from the Allianz transaction. |
Investment Management Account Rollforward by Source
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | | | Twelve Months Ended or As of |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | | | | | 9/30/2023 | | 9/30/2022 |
Institutional AUM: | | | | | | | | | | | | | | | | | |
Beginning of period AUM | 156,435 | | | 164,443 | | | 161,503 | | | 160,720 | | | 136,595 | | | | | | | 160,720 | | | 138,332 | |
Inflows | 4,258 | | | 4,911 | | | 5,739 | | | 8,249 | | | 4,759 | | | | | | | 23,157 | | | 29,121 | |
Outflows | (9,620) | | | (8,694) | | | (6,683) | | | (7,904) | | | (5,648) | | | | | | | (32,901) | | | (16,275) | |
Net flows- Institutional | (5,361) | | | (3,783) | | | (945) | | | 345 | | | (889) | | | | | | | (9,744) | | | 12,846 | |
Change in Market Value | (2,178) | | | 2,829 | | | 5,171 | | | 2,341 | | | (5,815) | | | | | | | 8,163 | | | (21,001) | |
Other (Including Acquisitions / Divestitures) | (991) | | | (7,054) | | | (1,286) | | | (1,903) | | | 30,828 | | | | | | | (11,234) | | | 30,542 | |
End of period AUM - Institutional | 147,904 | | | 156,435 | | | 164,443 | | | 161,503 | | | 160,720 | | | | | | | 147,904 | | | 160,720 | |
Organic Growth (Net Flows/Beginning of period AUM) | -3.4 | % | | -2.3 | % | | -0.6 | % | | 0.2 | % | | -0.7 | % | | | | | | -6.1 | % | | 9.3 | % |
Market Growth % | -1.4 | % | | 1.7 | % | | 3.2 | % | | 1.5 | % | | -4.3 | % | | | | | | 5.1 | % | | -15.2 | % |
Retail AUM: | | | | | | | | | | | | | | | | | |
Beginning of period AUM | 131,391 | | | 126,212 | | | 121,833 | | | 118,016 | | | 61,070 | | | | | | | 118,016 | | | 75,352 | |
Inflows | 9,138 | | | 7,894 | | | 8,361 | | | 7,203 | | | 6,683 | | | | | | | 32,596 | | | 13,789 | |
Outflows | (8,093) | | | (7,773) | | | (8,019) | | | (7,400) | | | (6,754) | | | | | | | (31,285) | | | (16,711) | |
Net flows- Retail | 1,046 | | | 122 | | | 342 | | | (198) | | | (71) | | | | | | | 1,312 | | | (2,923) | |
Net Money Market Flows | 56 | | | 64 | | | (36) | | | 51 | | | 45 | | | | | | | 135 | | | 158 | |
Change in Market Value | (3,369) | | | 7,013 | | | 4,242 | | | 3,232 | | | (6,332) | | | | | | | 11,118 | | | (15,864) | |
Net Flows from Divested Businesses | (490) | | | (516) | | | (515) | | | (497) | | | (467) | | | | | | | (2,018) | | | (2,421) | |
Other (Including Acquisitions / Divestitures) | (513) | | | (1,503) | | | 346 | | | 1,229 | | | 63,771 | | | | | | | (441) | | | 63,715 | |
End of period AUM - Retail | 128,120 | | | 131,391 | | | 126,212 | | | 121,833 | | | 118,016 | | | | | | | 128,120 | | | 118,016 | |
Retail Organic Growth excluding Net Flows from Divested Businesses and Sub-advisor Replacements (Net Flows / Beginning of period AUM) | 0.8 | % | | 0.1 | % | | 0.3 | % | | -0.2 | % | | -0.1 | % | | | | | | 1.1 | % | | -3.9 | % |
Market Growth % | -2.6 | % | | 5.6 | % | | 3.5 | % | | 2.7 | % | | -10.4 | % | | | | | | 9.4 | % | | -21.1 | % |
Net Flows: | | | | | | | | | | | | | | | | | |
Institutional Net Flows | (5,361) | | | (3,783) | | | (945) | | | 345 | | | (889) | | | | | | | (9,744) | | | 12,846 | |
Retail Net Flows | 1,046 | | | 122 | | | 342 | | | (198) | | | (71) | | | | | | | 1,312 | | | (2,923) | |
Net Flows from Divested Businesses | (490) | | | (516) | | | (515) | | | (497) | | | (467) | | | | | | | (2,018) | | | (2,421) | |
Total Net Flows | (4,806) | | | (4,178) | | | (1,118) | | | (350) | | | (1,427) | | | | | | | (10,452) | | | 7,501 | |
Net Flows excluding Net Flows from Divested Businesses and Sub-advisor Replacements | (4,316) | | | (3,662) | | | (602) | | | 147 | | | (960) | | | | | | | (8,433) | | | 9,922 | |
Total External Clients Organic Growth (Net Flows excluding Divested Businesses and Sub-advisor Replacement / Beginning period AUM)(1) | -1.5 | % | | -1.3 | % | | -0.2 | % | | 0.1 | % | | -0.5 | % | | | | | | -3.0 | % | | 4.6 | % |
| | | | |
(1) Includes net flows related to Allianz transaction as of July 25, 2022. |
Investment Management Account Value by Asset Type
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balances as of |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 |
Institutional | | | | | | | | | |
Equity | 21,164 | | | 23,803 | | | 24,470 | | | 22,943 | | | 22,835 | |
Fixed Income - Public | 49,486 | | | 54,186 | | | 59,786 | | | 57,532 | | | 59,752 | |
Fixed Income - Privates | 64,516 | | | 65,795 | | | 67,126 | | | 67,809 | | | 63,361 | |
Alternatives | 12,738 | | | 12,651 | | | 13,060 | | | 13,218 | | | 14,771 | |
Money Market | — | | | — | | | — | | | — | | | — | |
Total | 147,904 | | | 156,435 | | | 164,443 | | | 161,502 | | | 160,720 | |
| | | | | | | | | |
Retail | | | | | | | | | |
Equity | 62,420 | | | 67,759 | | | 63,429 | | | 60,244 | | | 57,343 | |
Fixed Income - Public | 62,126 | | | 60,278 | | | 59,638 | | | 58,480 | | | 57,714 | |
Fixed Income - Privates | 396 | | | 437 | | | 455 | | | 483 | | | 499 | |
Alternatives | 1,217 | | | 1,042 | | | 902 | | | 822 | | | 724 | |
Money Market | 1,961 | | | 1,875 | | | 1,788 | | | 1,803 | | | 1,736 | |
Total | 128,120 | | | 131,391 | | | 126,212 | | | 121,833 | | | 118,016 | |
| | | | | | | | | |
General Account | | | | | | | | | |
Equity | 226 | | | 237 | | | 237 | | | 237 | | | 241 | |
Fixed Income - Public | 18,181 | | | 18,696 | | | 19,286 | | | 19,748 | | | 20,701 | |
Fixed Income - Privates | 14,976 | | | 14,886 | | | 14,826 | | | 14,942 | | | 14,877 | |
Alternatives | 1,815 | | | 2,003 | | | 2,226 | | | 2,378 | | | 2,450 | |
Money Market | 593 | | | 333 | | | 360 | | | 724 | | | 344 | |
Total | 35,792 | | | 36,154 | | | 36,934 | | | 38,028 | | | 38,614 | |
| | | | | | | | | |
Combined Asset Type | | | | | | | | | |
Equity | 83,810 | | | 91,799 | | | 88,136 | | | 83,424 | | | 80,419 | |
Fixed Income - Public | 129,794 | | | 133,160 | | | 138,710 | | | 135,760 | | | 138,166 | |
Fixed Income - Privates | 79,887 | | | 81,118 | | | 82,406 | | | 83,234 | | | 78,737 | |
Alternatives | 15,770 | | | 15,696 | | | 16,189 | | | 16,418 | | | 17,945 | |
Money Market | 2,554 | | | 2,207 | | | 2,148 | | | 2,527 | | | 2,080 | |
Total | 311,816 | | | 323,980 | | | 327,589 | | | 321,363 | | | 317,349 | |
| | | | | | | | | |
Total Private and Alternative Assets | 95,657 | | | 96,814 | | | 98,595 | | | 99,652 | | | 96,683 | |
% of Private and Alternative Assets / Total AUM | 30.7 | % | | 29.9 | % | | 30.1 | % | | 31.0 | % | | 30.5 | % |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
|
Corporate
Corporate Adjusted Operating Earnings Before Income Taxes
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | | | Twelve Months Ended |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | | | | | 9/30/2023 | | 9/30/2022 |
| | | | | | | | | | | | | | | | | |
Interest expense (excluding Preferred stock dividends) (1) | (30) | | | (33) | | | (33) | | | (33) | | | (35) | | | | | | | (129) | | | (149) | |
Preferred stock dividends | (14) | | | (4) | | | (14) | | | (4) | | | (14) | | | | | | | (36) | | | (36) | |
| | | | | | | | | | | | | | | | | |
Stranded costs net of TSA revenue | — | | | — | | | — | | | — | | | (1) | | | | | | | — | | | (6) | |
Pension expense (2) | (11) | | | (11) | | | (11) | | | (11) | | | (10) | | | | | | | (44) | | | (38) | |
Other (3) | 3 | | | (6) | | | (11) | | | (12) | | | (6) | | | | | | | (26) | | | (35) | |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | (52) | | | (54) | | | (69) | | | (60) | | | (66) | | | | | | | (235) | | | (264) | |
Less: Earnings (loss) attributable to Allianz noncontrolling interest | — | | | — | | | (1) | | | (1) | | | — | | | | | | | (3) | | | — | |
Adjusted operating earnings before income taxes | (52) | | | (53) | | | (68) | | | (59) | | | (65) | | | | | | | (232) | | | (263) | |
| | | | |
(1) Includes other operating expenses related to financing agreements. |
(2) Pension expense includes service costs for our qualified defined benefit pension plan and service and interest costs for our non-qualified defined benefit pension plan, but excludes the estimated return on plan assets net of interest costs for our qualified defined benefit pension plan as well as net actuarial gains (losses) related to all of our pension plans and other post retirement plans, which includes actuarial gains and (losses) as a result of differences between actual and expected experience on plan assets or projected benefit obligations. |
(3) Other primarily includes changes in incentive compensation accruals for above (below) target performance, corporate insurance costs, investment income on assets backing surplus in excess of amounts held at the segment level, and certain corporate expenses that are either short duration projects or other items not expected to recur at the same level. |
Net Revenue, Adjusted Operating Margin,
Administrative Expenses, and Adjusted Operating Return on Capital
Net Revenue and Adjusted Operating Margin | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Twelve Months Ended |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| | | | | | | | | | | | | |
Net Revenue Excluding Notable Items | | | | | | | | | | | | | |
Wealth Solutions | | | | | | | | | | | | | |
Investment spread and other investment income | 238 | | | 239 | | | 249 | | | 252 | | | 248 | | | 978 | | | 901 | |
Fee based margin | 259 | | | 252 | | | 243 | | | 238 | | | 242 | | | 992 | | | 1,049 | |
Net underwriting gain (loss) and other revenue | 2 | | | 4 | | | 4 | | | 5 | | | 3 | | | 15 | | | 8 | |
Wealth Solutions Net Revenue | 499 | | | 495 | | | 496 | | | 495 | | | 493 | | | 1,985 | | | 1,958 | |
Health Solutions | | | | | | | | | | | | | |
Investment spread and other investment income | 25 | | | 24 | | | 23 | | | 24 | | | 24 | | | 96 | | | 86 | |
Fee based margin | 57 | | | 58 | | | 53 | | | 3 | | | 4 | | | 171 | | | 17 | |
Net underwriting gain (loss) and other revenue | 200 | | | 261 | | | 233 | | | 202 | | | 232 | | | 896 | | | 756 | |
Health Solutions Net Revenue | 283 | | | 343 | | | 309 | | | 230 | | | 260 | | | 1,165 | | | 858 | |
Investment Management | | | | | | | | | | | | | |
Investment capital and other investment income | 9 | | | 9 | | | 8 | | | 8 | | | 8 | | | 34 | | | 32 | |
Fee based margin | 226 | | | 217 | | | 218 | | | 216 | | | 204 | | | 877 | | | 717 | |
Investment Management Net Revenue | 235 | | | 226 | | | 227 | | | 224 | | | 212 | | | 912 | | | 749 | |
Total Net Revenue Excluding Notable Items (1) | 1,016 | | | 1,064 | | | 1,032 | | | 949 | | | 965 | | | 4,061 | | | 3,565 | |
Adjusted Operating Earnings Excluding Notable Items | | | | | | | | | | | | | |
Wealth Solutions | 202 | | | 188 | | | 166 | | | 195 | | | 198 | | | 751 | | | 741 | |
Health Solutions | 71 | | | 125 | | | 97 | | | 83 | | | 105 | | | 376 | | | 268 | |
Investment Management | 66 | | | 62 | | | 41 | | | 64 | | | 67 | | | 233 | | | 195 | |
Total Adjusted Operating Earnings Excluding Corporate and Notable Items (1) | 339 | | | 375 | | | 303 | | | 342 | | | 370 | | | 1,360 | | | 1,204 | |
Corporate | (52) | | | (54) | | | (69) | | | (60) | | | (65) | | | (235) | | | (248) | |
Total Adjusted operating earnings Excluding Notable Items, including Allianz noncontrolling interest | 287 | | | 321 | | | 234 | | | 282 | | | 305 | | | 1,125 | | | 956 | |
Less: Earnings (loss) attributable to Allianz noncontrolling interest excluding notable items | 14 | | | 13 | | | 8 | | | 13 | | | 13 | | | 48 | | | 13 | |
Total Adjusted Operating Earnings Excluding Notable Items (1) | 273 | | | 308 | | | 226 | | | 269 | | | 291 | | | 1,076 | | | 943 | |
Adjusted Operating Margin Excluding Notable Items | | | | | | | | | | | | | |
Wealth Solutions | 40.5 | % | | 38.0 | % | | 33.4 | % | | 39.3 | % | | 40.2 | % | | 37.8 | % | | 37.9 | % |
Health Solutions | 25.2 | % | | 36.3 | % | | 31.3 | % | | 36.0 | % | | 40.2 | % | | 32.2 | % | | 31.2 | % |
Investment Management | 27.9 | % | | 27.4 | % | | 18.0 | % | | 28.6 | % | | 31.6 | % | | 25.5 | % | | 26.0 | % |
Total Adjusted Operating Margin Excluding Corporate and Notable Items | 33.3 | % | | 35.2 | % | | 29.4 | % | | 36.0 | % | | 38.2 | % | | 33.4 | % | | 33.7 | % |
Total Adjusted Operating Margin Including Corporate, Excluding Notable Items | 28.2 | % | | 30.2 | % | | 22.7 | % | | 29.7 | % | | 31.5 | % | | 27.7 | % | | 26.8 | % |
Adjusted Operating Margin Excluding Notable Items Trailing Twelve Months | | | | | | | | | | | | | |
Wealth Solutions | 37.8 | % | | 37.7 | % | | 38.6 | % | | 39.3 | % | | 37.9 | % | | | | |
Health Solutions | 32.2 | % | | 35.8 | % | | 33.5 | % | | 33.0 | % | | 31.2 | % | | | | |
Investment Management | 25.5 | % | | 26.4 | % | | 25.4 | % | | 26.8 | % | | 26.0 | % | | | | |
Total Adjusted Operating Margin Excluding Corporate and Notable Items | 33.4 | % | | 34.6 | % | | 34.4 | % | | 35.0 | % | | 33.7 | % | | | | |
Total Adjusted Operating Margin Including Corporate, Excluding Notable Items | 27.7 | % | | 28.5 | % | | 27.7 | % | | 28.1 | % | | 26.8 | % | | | | |
|
(1) Refer to the “Reconciliations” section for a reconciliation of net revenue to net revenues excluding notable items and of adjusted operating earnings before income taxes to adjusted operating earnings excluding notable items. |
Administrative Expenses
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Twelve Months Ended |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| | | | | | | | | | | | | |
Wealth Solutions | (216) | | | (228) | | | (251) | | | (223) | | | (214) | | | (918) | | | (876) | |
Health Solutions | (122) | | | (128) | | | (124) | | | (71) | | | (66) | | | (445) | | | (271) | |
Investment Management | (170) | | | (163) | | | (186) | | | (158) | | | (142) | | | (677) | | | (554) | |
Stranded costs net of TSA revenue (1) | — | | | — | | | — | | | — | | | (1) | | | — | | | (6) | |
Total Administrative Expenses (1)(2) | (508) | | | (519) | | | (561) | | | (452) | | | (423) | | | (2,040) | | | (1,707) | |
|
(1) Includes Stranded Costs, net of associated TSA revenue, subsequent to the closing of the Individual Life Transaction. |
(2) Excludes certain expenses reported in Corporate related to changes in incentive compensation accruals for above (below) target performance, pension expense, and certain corporate expenses that are either short duration projects or expenses not expected to recur at the same level. |
Adjusted Operating Return on Allocated Capital
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Twelve Months Ended |
(in millions USD, unless otherwise indicated) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 |
| | | | | | | | | |
Wealth Solutions | | | | | | | | | |
Adjusted operating earnings before income taxes - before interest | 630 | | | 579 | | | 602 | | | 697 | | | 798 | |
Income tax expense | 80 | | | 71 | | | 77 | | | 98 | | | 122 | |
Adjusted Operating Earnings - before interest and after income taxes | 550 | | | 508 | | | 525 | | | 599 | | | 676 | |
Adjusted Operating effective tax rate (1) | 13.5 | % | | 13.3 | % | | 10.9 | % | | 12.7 | % | | 11.6 | % |
Adjusted Operating effective tax rate - Trailing Twelve Months | 12.7 | % | | 12.2 | % | | 12.8 | % | | 14.1 | % | | 15.3 | % |
Average Capital | 3,557 | | | 3,619 | | | 3,679 | | | 3,710 | | | 3,730 | |
Ending Capital (2) | 3,460 | | | 3,470 | | | 3,520 | | | 3,670 | | | 3,677 | |
Adjusted Return on Capital | 15.4 | % | | 14.0 | % | | 14.2 | % | | 16.1 | % | | 18.1 | % |
| | | | | | | | | |
Health Solutions | | | | | | | | | |
Adjusted operating earnings before income taxes - before interest | 349 | | | 450 | | | 376 | | | 304 | | | 256 | |
Income tax expense | 73 | | | 95 | | | 79 | | | 64 | | | 54 | |
Adjusted Operating Earnings - before interest and after income taxes | 275 | | | 355 | | | 297 | | | 240 | | | 202 | |
Adjusted Operating effective tax rate (1) | 21.0 | % | | 21.0 | % | | 21.0 | % | | 21.0 | % | | 21.0 | % |
Adjusted Operating effective tax rate - Trailing Twelve Months | 21.0 | % | | 21.0 | % | | 21.0 | % | | 21.0 | % | | 21.0 | % |
Average Capital | 1,039 | | | 877 | | | 698 | | | 591 | | | 555 | |
Ending Capital (2) | 1,230 | | | 1,289 | | | 1,263 | | | 662 | | | 650 | |
Adjusted Return on Capital | 26.5 | % | | 40.5 | % | | 42.6 | % | | 40.6 | % | | 36.6 | % |
| | | | | | | | | |
Investment Management | | | | | | | | | |
Adjusted operating earnings before income taxes - before interest | 174 | | | 163 | | | 153 | | | 158 | | | 176 | |
Income tax expense | 37 | | | 34 | | | 32 | | | 33 | | | 37 | |
Adjusted Operating Earnings - before interest and after income taxes | 137 | | | 129 | | | 121 | | | 125 | | | 139 | |
Adjusted Operating effective tax rate (1) | 21.0 | % | | 21.0 | % | | 21.0 | % | | 21.0 | % | | 21.0 | % |
Adjusted Operating effective tax rate - Trailing Twelve Months | 21.0 | % | | 21.0 | % | | 21.0 | % | | 21.0 | % | | 21.0 | % |
Average Capital | 800 | | | 757 | | | 673 | | | 582 | | | 488 | |
Ending Capital (2) | 798 | | | 806 | | | 810 | | | 797 | | | 778 | |
Adjusted Return on Capital | 17.2 | % | | 17.0 | % | | 17.9 | % | | 21.5 | % | | 28.3 | % |
|
(1) We assume a 21% tax rate on segment Adjusted operating earnings, less the estimated benefit of the dividends received deduction and foreign tax credits in our Wealth Solutions segment. |
(2) Capital is allocated to each of our segments in proportion to each segment’s target statutory capital, plus an allocation of the differences between statutory capital and total Voya Financial, Inc. shareholders' equity on a GAAP basis (excluding AOCI), based on each segment’s portion of these differences. |
Investment Information
Portfolio Results GAAP Book Value, Gross Investment Income, and Earned Rate by Asset Class
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended or As of | | Year-to-Date or As of |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 9/30/2023 |
| | | | | | | | | | | | | | |
Invested Assets | | | | | | | | | | | | | | |
Book Values, Gross investment income and Earned rate (1) | Book Value | BV % | Gross Investment Income | Earned Rate (annualized) | | Book Value | BV % | Gross Investment Income | Earned Rate (annualized) | | Book Value | BV % | Gross Investment Income | Earned Rate (annualized) |
Public corporate | 11,099 | | 29.0 | % | 140 | | 5.1 | % | | 11,474 | | 29.0 | % | 146 | | 5.0 | % | | 11,099 | | 29.0 | % | 435 | | 5.0 | % |
Private credit | 8,138 | | 21.0 | % | 92 | | 4.6 | % | | 8,117 | | 21.0 | % | 88 | | 4.4 | % | | 8,138 | | 21.0 | % | 270 | | 4.5 | % |
Securitized (2)(3) | 10,046 | | 26.0 | % | 153 | | 6.2 | % | | 10,277 | | 26.0 | % | 156 | | 6.1 | % | | 10,046 | | 26.0 | % | 466 | | 6.1 | % |
Commercial mortgage loans | 5,343 | | 14.0 | % | 63 | | 4.8 | % | | 5,336 | | 14.0 | % | 61 | | 4.7 | % | | 5,343 | | 14.0 | % | 184 | | 4.7 | % |
Municipals | 862 | | 2.0 | % | 8 | | 3.8 | % | | 911 | | 2.0 | % | 9 | | 4.0 | % | | 862 | | 2.0 | % | 27 | | 3.9 | % |
Short-term / Treasury | 475 | | 1.0 | % | 5 | | 4.5 | % | | 448 | | 1.0 | % | 5 | | 4.3 | % | | 475 | | 1.0 | % | 15 | | 4.4 | % |
Equity securities | 268 | | 1.0 | % | 6 | | 9.7 | % | | 280 | | 1.0 | % | 5 | | 6.6 | % | | 268 | | 1.0 | % | 16 | | 7.6 | % |
Policy loans | 368 | | 1.0 | % | 5 | | 5.7 | % | | 358 | | 1.0 | % | 5 | | 5.8 | % | | 368 | | 1.0 | % | 16 | | 6.1 | % |
Derivatives | (10) | | — | % | 3 | | N/A | | (11) | | — | % | 3 | | N/A | | (10) | | — | % | 9 | | N/A |
Book Values and Gross Investment Income before variable components | 36,591 | | 95.0 | % | 477 | | 5.3 | % | | 37,189 | | 95.0 | % | 478 | | 5.2 | % | | 36,591 | | 95.0 | % | 1,437 | | 5.2 | % |
| | | | | | | | | | | | | | |
Book Values and Gross Investment Income on variable components | | | | | | | | | | | | | | |
Limited partnership | 1,814 | | 5.0 | % | 24 | | 5.4 | % | | 1,809 | | 5.0 | % | 33 | | 7.5 | % | | 1,814 | | 5.0 | % | 69 | | 5.3 | % |
Prepayment / Other fee income | N/A | N/A | 2 | | — | % | | N/A | N/A | 2 | | — | % | | N/A | N/A | 6 | | — | % |
Book Values and Gross Investment Income (variable) | 1,814 | | 5.0 | % | 25 | | — | % | | 1,809 | | 5.0 | % | 35 | | — | % | | 1,814 | | 5.0 | % | 75 | | — | % |
Total Book Values and Gross Investment Income reflected in Adjusted Operating Earnings | 38,405 | | 100.0 | % | 502 | | 5.3 | % | | 38,998 | | 100.0 | % | 512 | | 5.3 | % | | 38,405 | | 100.0 | % | 1,512 | | 5.2 | % |
|
(1) Table represents annualized yield for Voya's General Account assets. Investment results related to businesses exited through reinsurance or divestment, and other miscellaneous items are excluded. |
(2) Includes operating investment income from CMO-B portfolio assets, including derivatives. |
(3) For CMO-B securities subject to the fair value option, operating investment income is determined by applying the prospective cash flow yield. Other income attributable to market value changes are excluded. |
Portfolio Results Statutory Carrying Values by Asset Class and NAIC Ratings
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended or As of (1) |
(in millions USD) | 6/30/2023 | | 03/31/2023 | | 12/31/2022 | | 09/30/2022 |
| | | | | | | | | | | |
Statutory Carrying Value | Statutory Value | SV % | | Statutory Value | SV % | | Statutory Value | SV % | | Statutory Value | SV % |
Public corporate | 11,576 | | 30.0 | % | | 11,983 | | 30.0 | % | | 12,282 | | 30.0 | % | | 13,187 | | 32.0 | % |
Private credit | 7,968 | | 21.0 | % | | 7,944 | | 20.0 | % | | 8,014 | | 20.0 | % | | 7,958 | | 19.0 | % |
Securitized | 10,305 | | 27.0 | % | | 10,647 | | 27.0 | % | | 10,688 | | 26.0 | % | | 10,663 | | 26.0 | % |
Municipals | 911 | | 2.0 | % | | 921 | | 2.0 | % | | 952 | | 2.0 | % | | 966 | | 2.0 | % |
Short-term / Treasury | 483 | | 1.0 | % | | 485 | | 1.0 | % | | 978 | | 2.0 | % | | 802 | | 2.0 | % |
Total Fixed maturities | 31,243 | | 81.0 | % | | 31,979 | | 81.0 | % | | 32,914 | | 81.0 | % | | 33,577 | | 81.0 | % |
Commercial mortgage loans | 5,335 | | 14.0 | % | | 5,315 | | 13.0 | % | | 5,412 | | 13.0 | % | | 5,375 | | 13.0 | % |
Limited partnership | 1,620 | | 4.0 | % | | 1,794 | | 5.0 | % | | 1,774 | | 4.0 | % | | 1,777 | | 4.0 | % |
Equity securities | 425 | | 1.0 | % | | 462 | | 1.0 | % | | 464 | | 1.0 | % | | 475 | | 1.0 | % |
Total | 38,624 | | 100.0 | % | | 39,549 | | 100.0 | % | | 40,565 | | 100.0 | % | | 41,204 | | 100.0 | % |
| | | | | | | | | | | |
NAIC Ratings | | | | | | | | | | | |
Fixed Maturities: | | | | | | | | | | | |
NAIC 1 | 16,248 | | 52.0 | % | | 16,413 | | 51.0 | % | | 17,016 | | 52.0 | % | | 17,312 | | 52.0 | % |
NAIC 2 | 13,788 | | 44.0 | % | | 14,337 | | 45.0 | % | | 14,662 | | 45.0 | % | | 14,970 | | 45.0 | % |
NAIC 3 and below | 1,207 | | 4.0 | % | | 1,229 | | 4.0 | % | | 1,237 | | 4.0 | % | | 1,295 | | 4.0 | % |
Total Fixed maturities | 31,243 | | 100.0 | % | | 31,979 | | 100.0 | % | | 32,914 | | 100.0 | % | | 33,577 | | 100.0 | % |
| | | | | | | | | | | |
Commercial Mortgage Loans: | | | | | | | | | | | |
CML 1 | 3,866 | | 72.0 | % | | 3,993 | | 75.0 | % | | 4,246 | | 78.0 | % | | 4,220 | | 79.0 | % |
CML 2 | 1,054 | | 20.0 | % | | 905 | | 17.0 | % | | 1,067 | | 20.0 | % | | 1,045 | | 19.0 | % |
CML 3 and below | 415 | | 8.0 | % | | 417 | | 8.0 | % | | 100 | | 2.0 | % | | 110 | | 2.0 | % |
Total Commercial mortgage loans | 5,335 | | 100.0 | % | | 5,315 | | 100.0 | % | | 5,412 | | 100.0 | % | | 5,375 | | 100.0 | % |
|
(1) Presented one quarter in arrears based on the timing of our statutory filings. |
Alternative Investment Income
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Year-to-Date |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
Wealth Solutions | | | | | | | | | | | | | |
Average alternative investments | 1,613 | | | 1,615 | | | 1,659 | | | 1,614 | | | 1,650 | | | 1,629 | | | 1,606 | |
Alternative investment income | 21 | | | 30 | | | 11 | | | (5) | | | (26) | | | 62 | | | 96 | |
Health Solutions | | | | | | | | | | | | | |
Average alternative investments | 199 | | | 179 | | | 125 | | | 160 | | | 163 | | | 168 | | | 165 | |
Alternative investment income | 3 | | | 4 | | | 1 | | | (1) | | | (3) | | | 8 | | | 9 | |
Investment Management | | | | | | | | | | | | | |
Average alternative investments | 326 | | | 325 | | | 318 | | | 316 | | | 333 | | | 323 | | | 344 | |
Alternative investment income | 5 | | | 8 | | | 9 | | | (2) | | | (13) | | | 22 | | | 3 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Alternative Income and Prepayments Above (Below) Long-Term Expectations
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Twelve Months Ended |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| | | | | | | | | | | | | |
Alternative Income Above (Below) Long-Term Expectations (1) | | | | | | | | | | | | | |
Wealth Solutions | (16) | | | (7) | | | (26) | | | (41) | | | (63) | | | (90) | | | 69 | |
Health Solutions | (2) | | | — | | | (2) | | | (5) | | | (7) | | | (9) | | | 6 | |
Investment Management | (2) | | | — | | | 2 | | | (9) | | | (20) | | | (9) | | | (8) | |
Total | (20) | | | (7) | | | (26) | | | (55) | | | (90) | | | (108) | | | 67 | |
| | | | | | | | | | | | | |
Prepayments Above (Below) Long-Term Expectations (1) | | | | | | | | | | | | | |
Wealth Solutions | (8) | | | (7) | | | (7) | | | (9) | | | (7) | | | (31) | | | (12) | |
Health Solutions | — | | | — | | | — | | | — | | | — | | | — | | | 1 | |
Investment Management | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Total | (8) | | | (7) | | | (7) | | | (9) | | | (7) | | | (31) | | | (11) | |
| | | | | | | | | | | | | |
Alternative Income and Prepayments Above (Below) Long-Term Expectations (1) | | | | | | | | | | | | | |
Wealth Solutions | (24) | | | (14) | | | (33) | | | (50) | | | (70) | | | (121) | | | 57 | |
Health Solutions | (2) | | | — | | | (2) | | | (5) | | | (7) | | | (9) | | | 7 | |
Investment Management | (2) | | | — | | | 2 | | | (9) | | | (20) | | | (9) | | | (8) | |
Total | (28) | | | (14) | | | (34) | | | (64) | | | (97) | | | (139) | | | 56 | |
|
(1) The amount by which Investment income from alternative investments and prepayment fees exceeds or is less than our long-term expectation. Long-term expectation for alternative investments is a 9% annual return and the long-term expectation for prepayment fees is a 10 basis point annual contribution to yield, which is roughly $9 million per quarter for Wealth Solutions |
Reconciliations
Reconciliation of Adjusted Operating Earnings Before Income Taxes and Earnings Per Common Share (Diluted)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended |
(in millions except per share in whole dollars) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 |
| Before income taxes | After income taxes (1) | Per share (2) | | Before income taxes | After income taxes (1) | Per share (2) | | Before income taxes | After income taxes (1) | Per share (2) | | Before income taxes | After income taxes (1) | Per share (2) | | Before income taxes | After income taxes (1) | Per share (2) |
| | | | | | | | | | | | | | | | | | | |
Income (loss) available to Voya Financial, Inc.'s common shareholders | | 248 | | 2.29 | | | | 154 | | 1.41 | | | | 69 | | 0.63 | | | | 190 | | 1.78 | | | | 166 | | 1.57 | |
Plus: Net income (loss) attributable to noncontrolling interests | | (16) | | (0.14) | | | | 77 | | 0.70 | | | | 46 | | 0.42 | | | | (57) | | (0.54) | | | | (138) | | (1.30) | |
Less: Preferred stock dividends | | (14) | | (0.13) | | | | (4) | | (0.04) | | | | (14) | | (0.13) | | | | (4) | | (0.04) | | | | (14) | | (0.13) | |
| | | | | | | | | | | | | | | | | | | |
Income (loss) | 172 | | 246 | | 2.28 | | | 263 | | 235 | | 2.14 | | | 141 | | 129 | | 1.18 | | | 83 | | 137 | | 1.28 | | | 71 | | 42 | | 0.40 | |
Less: | | | | | | | | | | | | | | | | | | | |
Net investment gains (losses) (3) | 42 | | 43 | | 0.40 | | | (38) | | (30) | | (0.27) | | | (9) | | (7) | | (0.06) | | | (10) | | (8) | | (0.07) | | | (9) | | (7) | | (0.06) | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Income (loss) related to businesses exited or to be exited through reinsurance or divestment (4) | (68) | | 38 | | 0.35 | | | (21) | | (17) | | (0.15) | | | (33) | | (26) | | (0.23) | | | (34) | | (27) | | (0.25) | | | (13) | | (11) | | (0.10) | |
Net income (loss) attributable to noncontrolling interests | (16) | | (16) | | (0.14) | | | 77 | | 77 | | 0.70 | | | 46 | | 46 | | 0.42 | | | (57) | | (57) | | (0.54) | | | (138) | | (138) | | (1.30) | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Dividend payments made to preferred shareholders | 14 | | 14 | | 0.13 | | | 4 | | 4 | | 0.04 | | | 14 | | 14 | | 0.13 | | | 4 | | 4 | | 0.04 | | | 14 | | 14 | | 0.13 | |
| | | | | | | | | | | | | | | | | | | |
Other adjustments | (28) | | (21) | | (0.19) | | | (52) | | (41) | | (0.38) | | | (70) | | (56) | | (0.51) | | | (26) | | (3) | | (0.03) | | | (37) | | (26) | | (0.24) | |
| | | | | | | | | | | | | | | | | | | |
Adjusted operating earnings | 229 | | 189 | | 1.74 | | | 294 | | 243 | | 2.21 | | | 192 | | 158 | | 1.44 | | | 206 | | 227 | | 2.13 | | | 254 | | 210 | | 1.97 | |
Less: | | | | | | | | | | | | | | | | | | | |
Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | (29) | | (23) | | (0.21) | | | (14) | | (11) | | (0.10) | | | (34) | | (27) | | (0.25) | | | (63) | | (50) | | (0.47) | | | (94) | | (74) | | (0.70) | |
Other (5) | (16) | | (13) | | (0.12) | | | — | | — | | — | | | — | | — | | — | | | — | | 53 | | 0.50 | | | 57 | | 45 | | 0.42 | |
Adjusted operating earnings excluding notable items | 273 | | 224 | | 2.07 | | | 308 | | 253 | | 2.31 | | | 226 | | 185 | | 1.69 | | | 269 | | 224 | | 2.10 | | | 291 | | 239 | | 2.24 | |
|
(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) Per share calculations are based on un-rounded numbers. |
(3) Net investment gains include a $45 million revaluation gain on the Voya India investment for the three months ended September 30, 2023. There was no tax expense associated with this gain. |
(4) Income related to businesses exited or to be exited through reinsurance or divestment includes a one-time tax benefit of $92 million related to a divested business for the three months ended September 30, 2023. |
(5) Includes changes in certain legal and other reserves not expected to recur at the same level and favorable tax adjustments primarily related to foreign tax credits. |
|
Reconciliation of Adjusted Operating Earnings and Earnings Per Common Share (Diluted) | | | | | | | | | | | | | | | | | | | | | | | |
| Nine months ended |
(in millions except per share in whole dollars) | 9/30/2023 | | 9/30/2022 |
| Before income taxes | After income taxes (1) | Per share (2) | | Before income taxes | After income taxes (1) | Per share (2) |
| | | | | | | |
Income (loss) available to Voya Financial, Inc.'s common shareholders | | 471 | | 4.31 | | | | 284 | | 2.55 | |
Plus: Net income (loss) attributable to noncontrolling interests | | 107 | | 0.98 | | | | (20) | | (0.18) | |
Less: Preferred stock dividends | | (32) | | (0.29) | | | | (32) | | (0.29) | |
| | | | | | | |
Income (loss) | 576 | | 610 | | 5.59 | | | 345 | | 296 | | 2.66 | |
Less: | | | | | | | |
Net investment gains (losses) (3) | (4) | | 6 | | 0.06 | | | (180) | | (142) | | (1.28) | |
| | | | | | | |
| | | | | | | |
Income (loss) related to businesses exited or to be exited through reinsurance or divestment (4) | (122) | | (5) | | (0.05) | | | (105) | | (83) | | (0.74) | |
Net income (loss) attributable to noncontrolling interests | 107 | | 107 | | 0.98 | | | (20) | | (20) | | (0.18) | |
| | | | | | | |
| | | | | | | |
Dividend payments made to preferred shareholders | 32 | | 32 | | 0.29 | | | 32 | | 32 | | 0.29 | |
| | | | | | | |
Other adjustments | (150) | | (118) | | (1.08) | | | (85) | | (71) | | (0.64) | |
| | | | | | | |
Adjusted operating earnings | 715 | | 589 | | 5.39 | | | 703 | | 580 | | 5.21 | |
Less: | | | | | | | |
Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | (77) | | (61) | | (0.55) | | | (43) | | (34) | | (0.31) | |
Other (5) | (16) | | (13) | | (0.12) | | | 17 | | 14 | | 0.12 | |
Adjusted operating earnings excluding notable items | 807 | | 663 | | 6.06 | | | 728 | | 600 | | 5.39 | |
|
(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) Per share calculations are based on un-rounded numbers. |
(3) Net investment gains include a $45 million revaluation gain on the Voya India investment for the nine months ended September 30, 2023. There was no tax expense associated with this gain. |
(4) Income related to businesses exited or to be exited through reinsurance or divestment includes a one-time tax benefit of $92 million related to a divested business for the nine months ended September 30, 2023. |
(5) Includes changes in certain legal and other reserves not expected to recur at the same level and Group Life Covid-19 impacts. |
|
Reconciliation of Adjusted Operating Revenues
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Year-to-Date |
(in millions USD) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| | | | | | | | | | | | | |
Total revenues | 1,823 | | | 1,871 | | | 1,835 | | | 1,555 | | | 1,345 | | | 5,529 | | | 4,375 | |
| | | | | | | | | | | | | |
Less: | | | | | | | | | | | | | |
Net investment gains (losses) | 40 | | | (46) | | | (14) | | | (17) | | | (18) | | | (21) | | | (198) | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Revenues (losses) related to business exited or to be exited through reinsurance or divestment | 21 | | | 2 | | | 30 | | | 16 | | | (30) | | | 53 | | | (139) | |
Revenues (loss) attributable to noncontrolling interests | 22 | | | 128 | | | 60 | | | (44) | | | (130) | | | 211 | | | 11 | |
Other adjustments | 24 | | | 67 | | | 60 | | | 54 | | | 30 | | | 152 | | | 66 | |
Total adjusted operating revenues | 1,717 | | | 1,721 | | | 1,697 | | | 1,547 | | | 1,495 | | | 5,135 | | | 4,635 | |
| | | | | | | | | | | | | |
Adjusted operating revenues by segment | | | | | | | | | | | | | |
Wealth Solutions | 702 | | | 705 | | | 684 | | | 669 | | | 645 | | | 2,090 | | | 2,109 | |
Health Solutions | 768 | | | 775 | | | 774 | | | 649 | | | 645 | | | 2,317 | | | 1,933 | |
Investment Management | 233 | | | 226 | | | 229 | | | 215 | | | 192 | | | 688 | | | 542 | |
Corporate | 14 | | | 15 | | | 11 | | | 15 | | | 13 | | | 39 | | | 51 | |
Total adjusted operating revenues | 1,717 | | | 1,721 | | | 1,697 | | | 1,547 | | | 1,495 | | | 5,135 | | | 4,635 | |
Wealth Solutions and Health Solutions Reconciliation of Net Revenues
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Page | Three Months Ended | | Twelve Months Ended |
(in millions USD) | Reference | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| | | | | | | | | | | | | | |
Wealth Solutions | | | | | | | | | | | | | | |
Adjusted operating revenues | | 702 | | | 705 | | | 684 | | | 669 | | | 645 | | | 2,760 | | | 2,902 | |
Interest credited and other benefits to contract owners/policyholders | | (226) | | | (224) | | | (222) | | | (224) | | | (222) | | | (896) | | | (886) | |
| | | | | | | | | | | | | | |
Net revenue | | 475 | | | 481 | | | 463 | | | 445 | | | 423 | | | 1,864 | | | 2,015 | |
Less: | | | | | | | | | | | | | | |
Alternative investment income and prepayment fees above (below) long-term expectations | | (24) | | | (14) | | | (33) | | | (50) | | | (70) | | | (121) | | | 57 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Net revenue excluding notable items | | 499 | | | 495 | | | 496 | | | 495 | | | 493 | | | 1,985 | | | 1,958 | |
Health Solutions | | | | | | | | | | | | | | |
Adjusted operating revenues | | 768 | | | 775 | | | 774 | | | 649 | | | 645 | | | 2,966 | | | 2,531 | |
Interest credited and other benefits to contract owners/policyholders | | (504) | | | (433) | | | (467) | | | (424) | | | (335) | | | (1,828) | | | (1,684) | |
| | | | | | | | | | | | | | |
Net revenue | | 264 | | | 342 | | | 306 | | | 225 | | | 310 | | | 1,137 | | | 848 | |
Less: | | | | | | | | | | | | | | |
Alternative investment income and prepayment fees above (below) long-term expectations | | (2) | | | — | | | (2) | | | (5) | | | (7) | | | (9) | | | 7 | |
Group Life Covid-19 impacts | | — | | | — | | | — | | | — | | | — | | | — | | | (74) | |
Other adjustments to net underwriting gain (loss) and other revenue (1) | | (16) | | | — | | | — | | | — | | | 57 | | | (16) | | | 57 | |
Net revenue excluding notable items | | 283 | | | 343 | | | 309 | | | 230 | | | 260 | | | 1,165 | | | 858 | |
| | | | | | | | | | | | | | |
(1) Includes changes in certain legal and other reserves not expected to recur at the same level. |
Investment Management and Consolidated Reconciliation of Net Revenues
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Page | Three Months Ended | | Twelve Months Ended |
(in millions USD) | Reference | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| | | | | | | | | | | | | | |
Investment Management | | | | | | | | | | | | | | |
Adjusted operating revenues | | 233 | | | 226 | | | 229 | | | 215 | | | 192 | | | 903 | | | 742 | |
| | | | | | | | | | | | | | |
Net revenue | | 233 | | | 226 | | | 229 | | | 215 | | | 192 | | | 903 | | | 742 | |
Less: | | | | | | | | | | | | | | |
Alternative investment income and prepayment fees above (below) long-term expectations | | (2) | | | — | | | 2 | | | (9) | | | (20) | | | (9) | | | (8) | |
Net revenue excluding notable items | | 235 | | | 226 | | | 227 | | | 224 | | | 212 | | | 912 | | | 749 | |
Consolidated | | | | | | | | | | | | | | |
Total Adjusted operating revenues | | 1,717 | | | 1,721 | | | 1,697 | | | 1,547 | | | 1,495 | | | 6,682 | | | 6,253 | |
Interest credited and other benefits to contract owners/policyholders | | (730) | | | (656) | | | (689) | | | (648) | | | (557) | | | (2,723) | | | (2,570) | |
Corporate Adjusted operating revenues (1) | | (14) | | | (15) | | | (11) | | | (15) | | | (13) | | | (55) | | | (79) | |
Net revenue | | 972 | | | 1,050 | | | 998 | | | 885 | | | 925 | | | 3,904 | | | 3,604 | |
Less: | | | | | | | | | | | | | | |
Alternative investment income and prepayment fees above (below) long-term expectations | | (28) | | | (14) | | | (34) | | | (64) | | | (97) | | | (139) | | | 56 | |
Group Life Covid-19 impacts | | — | | | — | | | — | | | — | | | — | | | — | | | (74) | |
| | | | | | | | | | | | | | |
Other adjustments | | (16) | | | — | | | — | | | — | | | 57 | | | (16) | | | 57 | |
Net revenue excluding notable items | | 1,016 | | | 1,064 | | | 1,032 | | | 949 | | | 965 | | | 4,061 | | | 3,565 | |
|
(1) Includes primarily TSA Revenue. |
Reconciliation of Adjusted Operating Earnings Before Income Taxes Excluding Notable Items by Segment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Page | Three Months Ended | | Twelve Months Ended |
(in millions USD) | Reference | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| | | | | | | | | | | | | | |
Wealth Solutions | | | | | | | | | | | | | | |
Adjusted operating earnings before income taxes | | 179 | | | 174 | | | 132 | | | 145 | | | 128 | | | 630 | | | 798 | |
Less: | | | | | | | | | | | | | | |
Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | | (24) | | | (14) | | | (33) | | | (50) | | | (70) | | | (121) | | | 57 | |
| | | | | | | | | | | | | | |
Adjusted operating earnings excluding notable items | | 202 | | | 188 | | | 166 | | | 195 | | | 198 | | | 751 | | | 741 | |
| | | | | | | | | | | | | | |
Health Solutions | | | | | | | | | | | | | | |
Adjusted operating earnings before income taxes | | 53 | | | 124 | | | 94 | | | 78 | | | 154 | | | 349 | | | 256 | |
Less: | | | | | | | | | | | | | | |
Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | | (2) | | | — | | | (2) | | | (5) | | | (7) | | | (9) | | | 7 | |
Group Life Covid-19 impacts | | — | | | — | | | — | | | — | | | — | | | — | | | (74) | |
Other (1) | | (16) | | | — | | | — | | | — | | | 57 | | | (16) | | | 57 | |
Adjusted operating earnings excluding notable items | | 71 | | | 125 | | | 97 | | | 83 | | | 105 | | | 376 | | | 268 | |
| | | | | | | | | | | | | | |
Investment Management | | | | | | | | | | | | | | |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | | 63 | | | 63 | | | 42 | | | 57 | | | 51 | | | 225 | | | 189 | |
Less: | | | | | | | | | | | | | | |
Alternative investment income and prepayment fees above (below) long-term expectations net of variable and incentive compensation | | (3) | | | 1 | | | 2 | | | (7) | | | (16) | | | (7) | | | (7) | |
Adjusted operating earnings excluding notable items, including Allianz noncontrolling interest | | 66 | | | 62 | | | 41 | | | 64 | | | 67 | | | 233 | | | 195 | |
Less: Earnings (loss) attributable to Allianz noncontrolling interest excluding notable items | | 14 | | | 14 | | | 9 | | | 14 | | | 13 | | | 51 | | | 13 | |
Adjusted operating earnings excluding notable items | | 52 | | | 49 | | | 31 | | | 50 | | | 54 | | | 182 | | | 182 | |
|
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| | | | | | | | | | | | | | |
|
(1) Includes changes in certain legal and other reserves not expected to recur at the same level. |
Reconciliation of Adjusted Operating Earnings Before Income Taxes Excluding Notable Items by Segment
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Page | Three Months Ended | | Twelve Months Ended |
(in millions USD) | Reference | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| | | | | | | | | | | | | | |
Corporate | | | | | | | | | | | | | | |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | | (52) | | | (54) | | | (69) | | | (60) | | | (66) | | | (235) | | | (264) | |
Less: | | | | | | | | | | | | | | |
Other (1) | | — | | | — | | | — | | | — | | | — | | | — | | | (16) | |
Adjusted operating earnings excluding notable items, including Allianz noncontrolling interest | page 29 | (52) | | | (54) | | | (69) | | | (60) | | | (65) | | | (235) | | | (248) | |
Less: Earnings (loss) attributable to Allianz noncontrolling interest excluding notable items | | — | | | — | | | (1) | | | (1) | | | — | | | (3) | | | — | |
Adjusted operating earnings excluding notable items | | (52) | | | (53) | | | (68) | | | (59) | | | (65) | | | (232) | | | (248) | |
| | | | | | | | | | | | | | |
Consolidated | | | | | | | | | | | | | | |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest | | 242 | | | 307 | | | 200 | | | 219 | | | 267 | | | 968 | | | 981 | |
Less: | | | | | | | | | | | | | | |
Total Notable Items Adjustments | | (45) | | | (14) | | | (34) | | | (63) | | | (37) | | | (156) | | | 24 | |
Adjusted operating earnings excluding notable items, including Allianz noncontrolling interest | | 287 | | | 321 | | | 234 | | | 282 | | | 305 | | | 1,125 | | | 956 | |
Less: Earnings (loss) attributable to Allianz noncontrolling interest excluding notable items | | 14 | | | 13 | | | 8 | | | 13 | | | 13 | | | 48 | | | 13 | |
Adjusted operating earnings excluding notable items | | 273 | | | 308 | | | 226 | | | 269 | | | 291 | | | 1,076 | | | 943 | |
| | | | | | | | | | | | | | |
(1) Includes incentive compensation driven by above target performance. |
| | | | | | | | | | | | | | |
Reconciliation of Book Value Per Common Share, Excluding AOCI, Leverage Ratio and Adjusted Diluted Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended or As of | | Year-to-Date or As of |
(in whole dollars) | 9/30/2023 | | 6/30/2023 | | 3/31/2023 | | 12/31/2022 | | 9/30/2022 | | 9/30/2023 | | 9/30/2022 |
| | | | | | | | | | | | | |
Book value per common share, including AOCI | 23.93 | | 29.19 | | 34.03 | | 28.16 | | 23.70 | | 23.93 | | 23.70 |
Per share impact of AOCI | 33.62 | | 26.40 | | 25.92 | | 31.43 | | 33.98 | | 33.62 | | 33.98 |
Book value per common share, excluding AOCI | 57.55 | | 55.59 | | 59.95 | | 59.59 | | 57.69 | | 57.55 | | 57.69 |
| | | | | | | | | | | | | |
Debt to capital ratio | 40.1 | % | | 37.7 | % | | 36.1 | % | | 40.0 | % | | 43.4 | % | | 40.1 | % | | 43.4 | % |
Capital impact of adding noncontrolling interest | -10.3 | % | | -8.9 | % | | -7.3 | % | | -8.4 | % | | -10.2 | % | | -10.3 | % | | -10.2 | % |
Impact of adding other financial obligations and treatment of preferred stock (1) | 11.3 | % | | 10.4 | % | | 9.8 | % | | 9.9 | % | | 10.3 | % | | 11.3 | % | | 10.3 | % |
| | | | | | | | | | | | | |
Capital impact of excluding AOCI | -13.3 | % | | -10.0 | % | | -9.1 | % | | -12.0 | % | | -13.7 | % | | -13.3 | % | | -13.7 | % |
Financial leverage ratio excluding AOCI | 27.8 | % | | 29.2 | % | | 29.5 | % | | 29.5 | % | | 29.8 | % | | 27.8 | % | | 29.8 | % |
| | | | | | | | | | | | | |
Reconciliation of shares used in Adjusted operating earnings per common share (Diluted) | | | | | | | | | | | | | |
Weighted-average common shares outstanding - Basic | 105.8 | | 103.0 | | 97.7 | | 97.3 | | 97.9 | | 102.2 | | 101.9 |
Dilutive effect of warrants | — | | 4.0 | | 8.9 | | 7.2 | | 6.2 | | 4.3 | | 7.2 |
Other dilutive effects (2) | 2.7 | | 2.8 | | 2.9 | | 2.2 | | 2.3 | | 2.8 | | 2.3 |
Weighted-average common shares outstanding - Diluted | 108.4 | | 109.8 | | 109.6 | | 106.7 | | 106.4 | | 109.3 | | 111.4 |
Dilutive effect of the exercise or issuance of stock-based awards (3) | — | | — | | — | | — | | — | | — | | — |
Weighted average common shares outstanding - Adjusted Diluted (3) | 108.4 | | 109.8 | | 109.6 | | 106.7 | | 106.4 | | 109.3 | | 111.4 |
|
(1) Includes operating leases, capital leases, and unfunded pension plan after-tax and the impact of eliminating equity treatment for preferred stock. |
(2) Includes stock-based compensation awards such as restricted stock units (RSU), performance stock units (PSU), or stock options. |
(3) For periods in which there is Net loss available to common shareholders, adjusted operating earnings per common share (EPS) calculation includes additional dilutive shares, as the inclusion of these shares for stock compensation plans would not be anti-dilutive to the adjusted operating EPS calculation. |
v3.23.3
Document And Entity Information
|
Oct. 31, 2023 |
Entity Information [Line Items] |
|
Document Type |
8-K
|
Document Period End Date |
Oct. 31, 2023
|
Entity Registrant Name |
VOYA FINANCIAL, INC.
|
Entity Incorporation, State or Country Code |
DE
|
Entity File Number |
001-35897
|
Entity Tax Identification Number |
52-1222820
|
Entity Address, Address Line One |
230 Park Avenue
|
Entity Address, City or Town |
New York
|
Entity Address, State or Province |
NY
|
Entity Address, Postal Zip Code |
10169
|
City Area Code |
212
|
Local Phone Number |
309-8200
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
false
|
Entity Central Index Key |
0001535929
|
Amendment Flag |
false
|
Common Stock, $.01 Par Value |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Common Stock, $.01 Par Value
|
Trading Symbol |
VOYA
|
Security Exchange Name |
NYSE
|
Depositary Shares, each representing a 1/40th |
|
Entity Information [Line Items] |
|
Title of 12(b) Security |
Depositary Shares, each representing a 1/40th
|
Trading Symbol |
VOYAPrB
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Security Exchange Name |
NYSE
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Voya Financial (NYSE:VOYA-B)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Voya Financial (NYSE:VOYA-B)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024