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NEW YORK--(BUSINESS WIRE)--Nov 1, 2022--
Voya Financial, Inc. (NYSE: VOYA) announced today financial results for the third quarter of 2022:
"In the third quarter, we delivered an approximately 28% increase in adjusted operating EPS, excluding notable items, as we achieved strong organic growth despite headwinds in the macro environment," said Rodney O. Martin, Jr., chairman and CEO, Voya Financial, Inc. "For the trailing twelve months ended Sept. 30, 2022, Wealth Solutions full service recurring deposits grew 10.4% compared with the prior-year period to $13.0 billion. In Health Solutions, annualized in-force premiums in the third quarter of 2022 increased 9.7% compared with the prior-year period to $2.8 billion. In Investment Management, net flows (excluding sub-advisor replacements and divested businesses) were $9.9 billion for the trailing twelve months ended Sept. 30, 2022, representing strong organic growth and initial benefits of our transaction with Allianz Global Investors, which closed in the third quarter.
"Beyond the organic growth we have achieved, we have remained focused on the margin and capital components of our EPS growth plans. For example, we have now removed — ahead of schedule — all of the stranded costs associated with our prior divestitures. In addition, in the first nine months of 2022, we deployed $1.2 billion in excess capital through a combination of share repurchases, debt redemption and common stock dividends. As a result of our focus on controlling what we can control and despite the economic challenges, we now expect to achieve 12% to 17% adjusted operating EPS growth, excluding notable items, in 2022.
“Looking ahead, we are excited about continuing to execute on our strategy. Our acquisition of Benefitfocus, which we announced earlier today, will accelerate Voya’s strategy in health and wealth solutions, adding broad-based benefits administration capabilities that extend our reach across workplace benefits and savings. The transaction also aligns with and supports Voya’s commitment to pursuing acquisitions that are both highly strategic and also accretive relative to share repurchases. The combination of our organic growth plans and the new capabilities and reach we are adding through both the Allianz Global Investors and Benefitfocus transactions will give us even more opportunities to address the growing health, wealth and investment needs of our clients and will lead to positive outcomes for all of our stakeholders," added Martin.
______________________________
1 This press release includes certain non-GAAP financial measures, including adjusted operating earnings. More information on non-GAAP measures and reconciliations to the most comparable U.S. GAAP measures can be found in the “Use of Non-GAAP Financial Measures” section of this release and in the company’s Quarterly Investor Supplement.
2 Third-quarter 2022 results include the following notable items: $(0.70) of investment income from alternative investments and prepayments below long-term expectations, net of variable and incentive compensation and $0.81 of other notable items primarily related to the company’s annual assumption update. Please see the tables at the end of this press release for more details on notable items.
HIGHLIGHTS
CONSOLIDATED RESULTS
Third-quarter 2022 net income available to common shareholders was $193 million, or $1.82 per diluted share, compared with $142 million, or $1.15 per diluted share, in the third quarter of 2021. The increase was largely due to the company’s annual assumption update, which benefited results in the third quarter of 2022 and lowered results in the third quarter of 2021. This was partially offset by lower alternative investment income in the third quarter of 2022. On a per-share basis, third-quarter 2022 results also reflect the benefit of share repurchases during the trailing twelve months (TTM) ended Sept. 30, 2022.
Third-quarter 2022 after-tax adjusted operating earnings were $245 million, or $2.30 per diluted share, compared with $315 million, or $2.57 per diluted share in the third quarter of 2021. In the third quarter of 2022, lower alternative investment income and, in Investment Management, lower investment capital revenues were partially offset by higher underwriting results in Health Solutions and a favorable change in DAC/VOBA and other intangibles unlocking in Wealth Solutions, in each case compared with the third quarter of 2021. On a per-share basis, third-quarter 2022 results also reflect the benefit of share repurchases during the TTM ended Sept. 30, 2022.
SEGMENT DISCUSSIONS
The following segment discussions compare the third quarter of 2022 with the third quarter of 2021, unless otherwise noted. All figures are presented before income taxes.
Wealth Solutions
Wealth Solutions adjusted operating earnings were $168 million, compared with $319 million. The change primarily reflects:
| Trailing 12 months ended | Trailing 12 months ended | ||||
($ in millions) | 9/30/2022 | 9/30/2021 | ||||
Net revenue | $ | 2,015 |
| $ | 2,305 |
|
Net revenue, excluding notables |
| 1,958 |
|
| 1,875 |
|
Adjusted operating margin |
| 39.7 | % |
| 48.9 | % |
Adjusted operating margin, excluding notables |
| 36.4 | % |
| 36.1 | % |
Full Service recurring deposits | $ | 13,042 |
| $ | 11,814 |
|
Full Service net flows | $ | 1,117 |
| $ | (867 | ) |
|
|
| ||||
| Three months ended or as of | Three months ended or as of | ||||
($ in millions) | 9/30/2022 | 9/30/2021 | ||||
Total client assets | $ | 450,718 |
| $ | 524,466 |
|
|
|
| ||||
Full Service recurring deposits | $ | 3,217 |
| $ | 2,958 |
|
Full Service net flows | $ | 555 |
| $ | 355 |
|
Full Service client assets | $ | 153,254 |
| $ | 180,385 |
|
Wealth Solutions full-service recurring deposits were $13.0 billion for the TTM ended Sept. 30, 2022, up 10.4% compared with the prior-year period and within the company’s annual target of 10–12%. Third-quarter 2022 full-service recurring deposits were $3.2 billion.
Total client assets as of Sept. 30, 2022 were $451 billion, down from Sept. 30, 2021 as growth in the business, including positive net flows over the period, was more than offset by lower equity market levels.
Health Solutions
Health Solutions adjusted operating earnings were $149 million, compared with $71 million. The change primarily reflects:
| Trailing 12 months ended | Trailing 12 months ended | ||||
($ in millions) | 9/30/2022 | 9/30/2021 | ||||
Net revenue | $ | 841 |
| $ | 711 |
|
Net revenue, excluding notables |
| 850 |
|
| 743 |
|
Adjusted operating margin |
| 29.8 | % |
| 31.1 | % |
Adjusted operating margin, excluding notables |
| 30.5 | % |
| 34.0 | % |
Total aggregate loss ratio* |
| 71.1 | % |
| 71.6 | % |
|
|
| ||||
| Three months ended | Three months ended | ||||
($ in millions) | 9/30/2022 | 9/30/2021 | ||||
Group Life, Disability and Other | $ | 817 |
| $ | 771 |
|
Stop Loss |
| 1,259 |
|
| 1,184 |
|
Voluntary |
| 684 |
|
| 561 |
|
Total annualized in-force premiums | $ | 2,760 |
| $ | 2,515 |
|
* Total aggregate loss ratio for the TTM ended Sept. 30, 2022 excludes a $59 million reserve release related to the company’s annual assumption update. |
Health Solutions annualized in-force premiums were $2.8 billion in the third quarter of 2022, up 9.7% compared with the prior-year period and at the high end of the company's 7–10% annual target. The increase in annualized in-force premiums reflects growth across all product lines, including a 22% increase in Voluntary.
Investment Management
Investment Management adjusted operating earnings were $51 million, compared with $63 million. The change primarily reflects:
| Trailing 12 months ended | Trailing 12 months ended | ||||
($ in millions) | 9/30/2022 | 9/30/2021 | ||||
Net revenue | $ | 742 |
| $ | 817 |
|
Net revenue, excluding notables |
| 749 |
|
| 740 |
|
Adjusted operating margin |
| 25.5 | % |
| 33.2 | % |
Adjusted operating margin, excluding notables |
| 26.0 | % |
| 27.6 | % |
|
|
| ||||
Institutional net flows | $ | 12,846 |
| $ | (1,004 | ) |
Retail net flows |
| (2,923 | ) |
| (1,837 | ) |
Total net flows* |
| 9,923 |
|
| (2,841 | ) |
|
|
| ||||
| Three months ended or as of | Three months ended or as of | ||||
($ in millions) | 9/30/2022 | 9/30/2021 | ||||
Institutional net flows | $ | (889 | ) | $ | (753 | ) |
Retail net flows |
| (71 | ) |
| (341 | ) |
Total net flows* |
| (960 | ) |
| (1,094 | ) |
|
|
| ||||
Fixed income - public and other | $ | 140,246 |
| $ | 115,411 |
|
Privates and alternatives |
| 96,683 |
|
| 76,577 |
|
Equity |
| 80,419 |
|
| 60,746 |
|
Total AUM | $ | 317,349 |
| $ | 252,733 |
|
* Excludes sub-advisor replacements and divested businesses. |
Investment Management net flows (excluding sub-advisor replacements and divested businesses) were $9.9 billion for the TTM ended Sept. 30, 2022, representing organic growth of 4.6% and above the company's annual target of 2–4%. Third-quarter 2022 net outflows were $(960) million as inflows in insurance and international channels as well as the closing of a CLO were more than offset by outflows in U.S. institutional and retail channels.
Total AUM was $317 billion as of Sept. 30, 2022, up 26% from Sept. 30, 2021. The increase was driven by the Allianz Global Investors transaction and positive net flows over the period, both of which more than offset lower equity and fixed income markets.
Corporate
Corporate adjusted operating losses were $57 million compared with adjusted operating losses of $65 million. The change was primarily due to lower incentive compensation and lower interest expense due to debt extinguishments.
Share Repurchases
During the third quarter, Voya received approximately $50 million, or 819,566, of its common shares in connection with an accelerated share repurchase agreement that was entered into with a third party in the second quarter of 2022. The company had approximately $271 million remaining under its share repurchase authorization as of Sept. 30, 2022.
Supplementary Financial Information
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.
Earnings Call and Slide Presentation
Voya will host a conference call on Wednesday, Nov. 2, 2022, at 10 a.m. ET, to discuss the company’s third-quarter 2022 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 at investors.voya.com starting at 1 p.m. ET on Nov. 2, 2022.
About Voya Financial
Voya Financial, Inc. (NYSE: VOYA) is a leading health, wealth and investment company that provides products, solutions and technologies that enable a better financial future for its clients, customers and society. Serving the needs of 14.3 million individual, workplace and institutional clients, Voya has approximately 6,000 employees and had $711 billion in total assets under management and administration as of Sept. 30, 2022. Certified as a “Great Place to Work” by the Great Place to Work® Institute, Voya is purpose-driven and equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible. Voya has earned recognition as: one of the World’s Most Ethical Companies® by the Ethisphere Institute; 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 Twitter @Voya.
Use of Non-GAAP Financial Measures
We believe that Adjusted operating earnings before income taxes provides a meaningful measure of our business and segment performance and enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions 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, which is Income (loss) from continuing operations before income taxes.
Adjusted operating earnings before income taxes does not replace Income (loss) from continuing operations before income taxes as a measure of our consolidated results of operations. Therefore, we believe that it is useful to evaluate both Income (loss) from continuing operations before income taxes and Adjusted operating earnings before income taxes when reviewing our financial and operating performance. Each segment’s Adjusted operating earnings before income taxes is calculated by adjusting Income (loss) from continuing operations before income taxes for the following items:
The adjusted operating earnings, after tax, is adjusted for tax expense. The adjusted operating tax expense is based on the actual income tax expense for the current period related to Income (loss) from continuing operations, adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate.
Income (loss) related to businesses exited or to be exited through reinsurance or divestment (including net investment gains (losses) on securities sold and expenses directly related to these transactions, and insignificant number of Individual Life, and non-Wealth Solutions annuities policies that were not part of the divested businesses) are excluded from Adjusted operating earnings before income taxes. When we present the adjustments to Income (loss) from continuing operations before income taxes on a consolidated basis, each adjustment excludes the relative portions attributable to businesses exited or to be exited through reinsurance or divestment.
The most directly comparable U.S. GAAP measure to Adjusted operating earnings before income taxes is Income (loss) from continuing operations before income taxes. For a reconciliation of Adjusted operating earnings before income taxes to Income (loss) from continuing operations before income taxes, see the tables that accompany this release, as well as our Quarterly Investor Supplement.
As a result of the Individual Life Transaction, the historical revenues and certain expenses of the divested businesses have been classified as discontinued operations. Historical revenues and certain expenses of the businesses that have been divested via reinsurance at closing of the Individual Life Transaction (including an insignificant amount of Individual Life and non-Wealth Solutions annuities that are not part of the transaction) are reported within continuing operations, but are excluded from adjusted operating earnings as businesses exited or to be exited through reinsurance or divestment. Expenses classified within discontinued operations and businesses exited or to be exited through reinsurance include only direct operating expenses incurred by these businesses and then only to the extent that the nature of such expenses was such that we ceased to incur such expenses upon the close of the Individual Life Transaction. Certain other direct costs of these businesses, including those relating to activities for which we provide transitional services and for which we are reimbursed under transition services agreements (“TSAs”) are reported within continuing operations along with the associated revenues from the TSAs. Additionally, indirect costs, such as those related to corporate and shared service functions that were previously allocated to the businesses sold or divested via reinsurance, are reported within continuing operations. These costs ("Stranded Costs") and the associated revenues from the TSAs are reported within continuing operations in Corporate, since we do not believe that they are representative of the future run-rate of revenues and expenses of the continuing operations of our business segments. We have implemented a cost reduction strategy to address Stranded Costs and completed the removal of Stranded Costs during the third quarter of 2022. Some transformation initiatives related to TSAs will continue beyond the third quarter of 2022, however, they are not expected to result in any net Stranded Costs.
In addition to Net income (loss) per common share, we report Adjusted operating earnings per common share (diluted) because we believe that Adjusted operating earnings before income taxes provides a meaningful measure of its business and segment performances and enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions and/or other factors.
Net Revenue and Adjusted Operating Margin
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) the frequency and severity of insured loss events, (iv) the effects of natural or man-made disasters, including pandemic events and specifically the current COVID-19 pandemic event, (v) mortality and morbidity levels, (vi) persistency and lapse levels, (vii) interest rates, (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 our individual life business on the expected timeline and economic terms, (xiii) our ability to realize the expected benefits from the transaction with Allianz Global Investors, and (xiv) our ability to successfully complete the acquisition of Benefitfocus on the expected economic terms or at all. Factors that may cause actual results to differ from those in any forward-looking statement also include those described under “Risk Factors” and “Management’s Discussion and Analysis of Results of Operations and Financial Condition (“MD&A”) – Trends and Uncertainties” in our Annual Report on Form 10-K for the year ended Dec. 31, 2021, as filed with the Securities and Exchange Commission (“SEC”) on Feb. 22, 2022 and “Risk Factors” in our Quarterly Report on Form 10-Q for the three months ended June 30, 2022, as filed with the SEC on Aug. 4, 2022, and in our Quarterly Report on Form 10-Q for the three months ended Sept. 30, 2022, to be filed with the SEC on or before Nov. 9, 2022.
VOYA-IR VOYA-CF
Reconciliation of Net Income (Loss) to Adjusted Operating Earnings and Earnings Per Share (Diluted) | |||||||||||||
| Three Months Ended | ||||||||||||
($ in millions, except per share) | 9/30/2022 |
| 9/30/2021 | ||||||||||
| After-tax | Per share |
| After-tax | Per share | ||||||||
|
|
|
|
|
| ||||||||
Net Income (loss) available to Voya Financial, Inc.'s common shareholders | $ | 193 |
| $ | 1.82 |
|
| $ | 142 |
| $ | 1.15 |
|
Less: |
|
|
|
|
| ||||||||
Net investment and guaranteed benefit gains (losses) and related charges and adjustments |
| (10 | ) |
| (0.09 | ) |
|
| (3 | ) |
| (0.03 | ) |
Income (loss) related to businesses exited or to be exited through reinsurance or divestment |
| (11 | ) |
| (0.10 | ) |
|
| (137 | ) |
| (1.12 | ) |
Other adjustments (1) |
| (30 | ) |
| (0.29 | ) |
|
| (33 | ) |
| (0.27 | ) |
Adjusted operating earnings | $ | 245 |
| $ | 2.30 |
|
| $ | 315 |
| $ | 2.57 |
|
(1) “Other adjustments” primarily consists of transaction and integration costs associated with the AllianzGI transaction and other restructuring expenses (severance, lease write-offs, etc.), income (loss) on early extinguishment of debt, and tax adjustments.
Reconciliation of Basic Weighted Average Shares to Adjusted Operating Diluted Weighted Average Shares | ||
| Three Months Ended | |
(in millions) | 9/30/2022 | 9/30/2021 |
|
|
|
Weighted-average common shares outstanding - Basic | 98 | 113 |
Dilutive effect of warrants | 6 | 7 |
Other dilutive effects (1) | 2 | 2 |
Weighted-average common shares outstanding - Diluted | 106 | 122 |
Dilutive effect of the exercise or issuance of stock based awards | — | — |
Weighted average common shares outstanding - Adjusted Diluted (2) | 106 | 122 |
(1) Includes stock-based compensation awards such as restricted stock units (RSU), performance stock units (PSU), or stock options.
(2) For periods in which there is Net loss from continuing operations 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.
Adjusted Operating Earnings, Net Revenue, Adjusted Operating Margin, and Notable Items | |||||||||||
Three Months Ended September 30, 2022 | |||||||||||
(in millions) | Amounts including Notable items | Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) | Other (2) | Amounts excluding Notable items | |||||||
|
|
|
|
| |||||||
Adjusted operating earnings |
|
|
|
| |||||||
Wealth Solutions | $ | 168 |
| $ | (70 | ) | $ | 50 | $ | 188 |
|
Health Solutions |
| 149 |
|
| (7 | ) |
| 59 |
| 97 |
|
Investment Management |
| 51 |
|
| (16 | ) |
| — |
| 67 |
|
Corporate |
| (57 | ) |
| — |
|
| — |
| (57 | ) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest |
| 311 |
|
| (93 | ) |
| 109 |
| 295 |
|
Less: Earnings (loss) attributable to Allianz noncontrolling interest |
| 12 |
|
| — |
|
| — |
| 12 |
|
Adjusted operating earnings before income taxes | $ | 299 |
| $ | (93 | ) | $ | 109 | $ | 283 |
|
Adjusted operating earnings per share |
| 2.30 |
|
| (0.70 | ) |
| 0.81 |
| 2.19 |
|
|
|
|
|
| |||||||
Net revenue |
|
|
|
| |||||||
Wealth Solutions | $ | 423 |
| $ | (70 | ) | $ | — | $ | 493 |
|
Health Solutions |
| 303 |
|
| (7 | ) |
| 59 |
| 251 |
|
Investment Management |
| 192 |
|
| (20 | ) |
| — |
| 212 |
|
Total Net revenue | $ | 918 |
| $ | (97 | ) | $ | 59 | $ | 956 |
|
|
|
|
|
| |||||||
Adjusted operating margin |
|
|
|
| |||||||
Wealth Solutions |
| 39.7 | % |
|
|
| 38.1 | % | |||
Health Solutions |
| 49.2 | % |
|
|
| 38.6 | % | |||
Investment Management |
| 26.6 | % |
|
|
| 31.6 | % | |||
Adjusted operating margin, excluding Corporate |
| 40.1 | % |
|
|
| 36.8 | % |
(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.
(2) Includes DAC, VOBA, and other intangible unlocking in Wealth and a reserve release in Health, both primarily related to the company’s annual assumption update.
Adjusted Operating Earnings, Net Revenue, Adjusted Operating Margin, and Notable Items | ||||||||||||
Three Months Ended September 30, 2021 | ||||||||||||
(in millions) | Amounts including Notable items | Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) | Other (2) | Amounts excluding Notable items | ||||||||
|
|
|
|
| ||||||||
Adjusted operating earnings |
|
|
|
| ||||||||
Wealth Solutions | $ | 319 |
| $ | 147 |
| $ | (11 | ) | $ | 183 |
|
Health Solutions |
| 71 |
|
| 14 |
|
| (18 | ) |
| 75 |
|
Investment Management |
| 63 |
|
| 17 |
|
| — |
|
| 46 |
|
Corporate |
| (65 | ) |
| (15 | ) |
| — |
|
| (50 | ) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest |
| 388 |
|
| 163 |
|
| (29 | ) |
| 254 |
|
Less: Earnings (loss) attributable to Allianz noncontrolling interest |
| — |
|
| — |
|
| — |
|
| — |
|
Adjusted operating earnings before income taxes | $ | 388 |
| $ | 163 |
| $ | (29 | ) | $ | 254 |
|
Adjusted operating earnings per share |
| 2.57 |
|
| 1.05 |
|
| (0.19 | ) |
| 1.72 |
|
|
|
|
|
| ||||||||
Net revenue |
|
|
|
| ||||||||
Wealth Solutions | $ | 633 |
| $ | 147 |
| $ | — |
| $ | 486 |
|
Health Solutions |
| 200 |
|
| 14 |
|
| (18 | ) |
| 204 |
|
Investment Management |
| 200 |
|
| 21 |
|
| — |
|
| 180 |
|
Total Net revenue | $ | 1,033 |
| $ | 182 |
| $ | (18 | ) | $ | 870 |
|
|
|
|
|
| ||||||||
Adjusted operating margin |
|
|
|
| ||||||||
Wealth Solutions |
| 50.4 | % |
|
|
| 37.7 | % | ||||
Health Solutions |
| 35.5 | % |
|
|
| 36.8 | % | ||||
Investment Management |
| 31.5 | % |
|
|
| 25.6 | % | ||||
Adjusted operating margin, excluding Corporate |
| 43.9 | % |
|
|
| 34.9 | % |
(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.
(2) Includes DAC, VOBA, and other intangible unlocking, COVID-19 Impacts, and changes in certain legal and other reserves not expected to recur at the same level.
Adjusted Operating Earnings, 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) | Other (2) | Amounts excluding Notable items | ||||||||
|
|
|
|
| ||||||||
Adjusted operating earnings |
|
|
|
| ||||||||
Wealth Solutions | $ | 800 |
| $ | 57 |
| $ | 31 |
| $ | 712 |
|
Health Solutions |
| 251 |
|
| 7 |
|
| (15 | ) |
| 259 |
|
Investment Management |
| 189 |
|
| (6 | ) |
| — |
|
| 195 |
|
Corporate |
| (218 | ) |
| (16 | ) |
| — |
|
| (202 | ) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest |
| 1,022 |
|
| 42 |
|
| 16 |
|
| 964 |
|
Less: Earnings (loss) attributable to Allianz noncontrolling interest |
| 12 |
|
| — |
|
| — |
|
| 12 |
|
Adjusted operating earnings before income taxes | $ | 1,010 |
| $ | 42 |
| $ | 16 |
| $ | 952 |
|
Adjusted operating earnings per share |
| 7.31 |
|
| 0.28 |
|
| 0.11 |
|
| 6.92 |
|
|
|
|
|
| ||||||||
Net revenue |
|
|
|
| ||||||||
Wealth Solutions | $ | 2,015 |
| $ | 57 |
| $ | — |
| $ | 1,958 |
|
Health Solutions |
| 841 |
|
| 7 |
|
| (15 | ) |
| 850 |
|
Investment Management |
| 742 |
|
| (8 | ) |
| — |
|
| 749 |
|
Total Net revenue | $ | 3,598 |
| $ | 56 |
| $ | (15 | ) | $ | 3,557 |
|
|
|
|
|
| ||||||||
Adjusted operating margin |
|
|
|
| ||||||||
Wealth Solutions |
| 39.7 | % |
|
|
| 36.4 | % | ||||
Health Solutions |
| 29.8 | % |
|
|
| 30.5 | % | ||||
Investment Management |
| 25.5 | % |
|
|
| 26.0 | % | ||||
Adjusted operating margin, excluding Corporate |
| 34.5 | % |
|
|
| 32.8 | % |
(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.
(2) Includes DAC, VOBA, and other intangible unlocking, COVID-19 Impacts, and changes in certain other reserves not expected to recur at the same level.
Adjusted Operating Earnings, Net Revenue, Adjusted Operating Margin, and Notable Items | ||||||||||||
Twelve Months Ended September 30, 2021 | ||||||||||||
(in millions) | Amounts including Notable items | Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) | Other (2) | Amounts excluding Notable items | ||||||||
|
|
|
|
| ||||||||
Adjusted operating earnings |
|
|
|
| ||||||||
Wealth Solutions | $ | 1,127 |
| $ | 388 |
| $ | 62 |
| $ | 677 |
|
Health Solutions |
| 221 |
|
| 38 |
|
| (69 | ) |
| 252 |
|
Investment Management |
| 271 |
|
| 63 |
|
| 3 |
|
| 205 |
|
Corporate |
| (301 | ) |
| (50 | ) |
| (35 | ) |
| (216 | ) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest |
| 1,318 |
|
| 439 |
|
| (39 | ) |
| 918 |
|
Less: Earnings (loss) attributable to Allianz noncontrolling interest |
| — |
|
| — |
|
| — |
|
| — |
|
Adjusted Operating earnings before income taxes | $ | 1,318 |
| $ | 439 |
| $ | (39 | ) | $ | 918 |
|
Adjusted operating earnings per share |
| 8.34 |
|
| 2.68 |
|
| (0.24 | ) |
| 5.91 |
|
|
|
|
|
| ||||||||
Net revenue |
|
|
|
| ||||||||
Wealth Solutions | $ | 2,305 |
| $ | 388 |
| $ | 42 |
| $ | 1,875 |
|
Health Solutions |
| 711 |
|
| 38 |
|
| (69 | ) |
| 743 |
|
Investment Management |
| 817 |
|
| 75 |
|
| 3 |
|
| 740 |
|
Total Net revenue | $ | 3,834 |
| $ | 501 |
| $ | (24 | ) | $ | 3,358 |
|
|
|
|
|
| ||||||||
Adjusted operating margin |
|
|
|
| ||||||||
Wealth Solutions |
| 48.9 | % |
|
|
| 36.1 | % | ||||
Health Solutions |
| 31.1 | % |
|
|
| 34.0 | % | ||||
Investment Management |
| 33.2 | % |
|
|
| 27.6 | % | ||||
Adjusted operating margin, excluding Corporate |
| 42.2 | % |
|
|
| 33.5 | % |
(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.
(2) Includes DAC, VOBA, and other intangible unlocking, COVID-19 Impacts, revenue and expenses in Wealth Solutions related to the FPC prior to its divestment in June 2021 and in Investment Management related to the divestment of Individual Life, stranded costs in Corporate prior to the closing of the Individual Life Transaction, and changes in certain legal and other reserves not expected to recur at the same level.
View source version on businesswire.com:https://www.businesswire.com/news/home/20221101006109/en/
CONTACT: Media Contact:
Christopher Breslin
212-309-8941
Christopher.Breslin@voya.com
Investor Contact:
Michael Katz
212-309-8999
IR@voya.com
KEYWORD: NEW YORK UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES INSURANCE FINANCE
SOURCE: Voya Financial, Inc.
Copyright Business Wire 2022.
PUB: 11/01/2022 04:21 PM/DISC: 11/01/2022 04:21 PM
http://www.businesswire.com/news/home/20221101006109/en