Voya Financial (VOYA) Q3 2024 earnings summary

Executive summary

• Wealth Solutions and Investment Management delivered strong growth in Q3 2024, with participant accounts exceeding 7 million and net inflows over $9 billion year-to-date, offsetting higher loss ratios in Health Solutions.

• Adjusted operating EPS for Q3 2024 was $1.90, up 9% year-over-year, with after-tax adjusted operating earnings of $190 million.

• Net income available to common shareholders was $98 million, down from $248 million in Q3 2023, mainly due to non-recurring tax benefits and investment gains last year.

• The acquisition of OneAmerica's retirement business is expected to close January 1, 2025, adding scale, capabilities, and at least $75 million pre-tax operating earnings in its first year.

• On track to return $0.8 billion of capital in 2024, with significant growth in excess capital generation anticipated for 2025.

Financial highlights

• Q3 2024 adjusted operating EPS was $1.90, up from $1.74 in Q3 2023; after-tax adjusted operating earnings were $190 million.

• Fee income rose $51 million year-over-year in Q3 2024, mainly from higher fee-based assets in Wealth Solutions and Investment Management.

• Premiums increased $114 million year-over-year in Q3 2024, led by Health Solutions growth.

• Wealth Solutions pre-tax adjusted operating earnings were $211 million (up from $179 million); Investment Management: $55 million (up from $49 million); Health Solutions: $23 million (down from $53 million).

• Total assets reached $166.9 billion as of September 30, 2024, up from $157.1 billion at year-end 2023.

Outlook and guidance

• FY 2024 adjusted operating EPS target is $8.25–$8.45; adjusted operating ROE target is 14–16%.

• Disciplined pricing actions in Stop Loss are expected to improve Health Solutions loss ratios in 2025.

• The OneAmerica acquisition is anticipated to add scale and new capabilities to Wealth Solutions, with closing targeted for January 2025.

• Full-year 2024 capital return expected to reach $0.8 billion; excess capital generation anticipated to increase in 2025, supported by core business growth, repricing, and the OneAmerica acquisition.

• 4Q 2024 guidance includes net underwriting gain in Health Solutions of $180–220 million, assuming Stop Loss loss ratio at 86%.