Q3 2024 Voya Financial Inc Earnings Call Transcript
Key Points
- Voya Financial Inc (VOYA) delivered strong business results in Wealth Solutions and Investment Management, with Wealth Solutions revenue growth and adjusted operating margin exceeding 2024 targets.
- The company is on track to close its acquisition of One America's full-service Retirement business on January 1, which is expected to add at least $75 million of pretax operating earnings in the first year.
- Voya Financial Inc (VOYA) continues to deliver strong free cash flows and is on track to return $800 million in excess capital to shareholders in 2024.
- Investment Management achieved a third consecutive quarter of positive net flows, exceeding the organic growth target for the year, driven by institutional fixed income and third-party insurance channels.
- The company has maintained high plan retention rates in Wealth Solutions, with a 98% retention rate, and expects participant growth to exceed 15% in 2025, excluding the impact of the One America acquisition.
- Adverse Stop Loss results led to disappointing outcomes in Health Solutions, with elevated loss ratios due to underpricing of the 2024 book.
- The unfavorable Stop Loss results have impacted adjusted operating margins, taking the company off course from achieving its full-year EPS target.
- Voya Financial Inc (VOYA) experienced net outflows in Wealth Solutions, driven by higher average account values resulting from recent equity market increases.
- The company expects lower sales and in-force premium year-over-year for the January 2025 Stop Loss book due to prioritizing higher margins over premium growth.
- Third quarter GAAP net income was below adjusted operating earnings due primarily to non-cash items, affecting overall financial performance.
Good morning. Welcome to Voya Financial's third quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Mei Ni Chu, Head of Investor Relations. Please go ahead.
Thank you, and good morning. We appreciate you joining us this morning for Voya Financial's third quarter 2024 earnings conference call. As a reminder, materials for today's call are available on our website at investors.voya.com.
Joining me on our call this morning are Heather Lavallee, our Chief Executive Officer; and Don Templin, our Chief Financial Officer. Following their remarks, we will take your questions. For the Q&A session, we will also be joined by our incoming CFO, Mike Katz, and the heads of our businesses, specifically Rob Grubka, CEO of Workplace Solutions; and Matt Thomas, CEO of Investment Management.
Turning to our earnings presentation materials that are available on our website. On Slide 2, some of the
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