Voya Financial (VOYA) Q2 2024 earnings summary

Executive summary

• Net income available to common shareholders rose to $201 million ($1.96 per diluted share) for Q2 2024, up from $154 million ($1.41 per diluted share) in Q2 2023, driven by investment gains and lower integration costs.

• Adjusted operating EPS was $2.18, with strong fee-based revenue growth in Wealth and Investment Management offsetting higher loss ratios in Health Solutions.

• On track to meet full-year 2024 EPS target of $8.25–$8.45, supported by revenue growth, spend control, and commercial momentum.

• Increased quarterly dividend by 12.5% to $0.45 per share, reflecting robust capital generation and confidence in sustainable growth.

• Wealth and Investment Management outpaced net revenue growth targets, while Health Solutions faced higher loss ratios but is taking repricing actions.

Financial highlights

• Q2 2024 net income was $201 million, up from $154 million year-over-year, reflecting investment gains and lower integration costs.

• Adjusted operating earnings were $223 million ($2.18 per share), down from $243 million ($2.21 per share) year-over-year, mainly due to lower Health Solutions underwriting gains.

• Wealth Solutions adjusted operating earnings reached $214 million, up year-over-year due to strong fees and expense discipline.

• Health Solutions adjusted operating earnings declined to $60 million, impacted by higher loss ratios despite 16% premium growth.

• Investment Management adjusted operating earnings were $50 million, with net inflows of $4.8 billion and margin improvement.

Outlook and guidance

• Full-year adjusted operating EPS guidance reaffirmed at $8.25–$8.45, assuming long-term alternative investment return of 9%.

• On track to generate $0.8 billion of excess capital and achieve 2–4% net revenue growth, 30–33% adjusted operating margin, and 14–16% ROE for FY'24.

• Health Solutions FY'24 aggregate loss ratio expected to be above the 69–72% range; repricing actions underway to improve 2025 results.

• Investment Management targeting 2% organic net flow growth for FY'24, supported by strong net inflows and new fund launches.

• Management expects continued growth in adjusted operating EPS through net revenue growth, margin expansion, and disciplined capital management.