In This Article:
It has been about a month since the last earnings report for Voya Financial (VOYA). Shares have lost about 3.1% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Voya due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Voya Financial Q4 Earnings Beat, Revenues & Premiums Rise Y/Y
Voya Financial, Inc. reported fourth-quarter 2024 adjusted operating earnings of $1.50 per share, which beat the Zacks Consensus Estimate by more than two-fold. The bottom line decreased 23.8% year over year. The decline was due to higher loss ratios in Stop Loss in Health Solutions and lower spread-based assets in Wealth Solutions. It was partially offset by growth in fee-based revenues in Wealth Solutions and Investment Management and higher alternative investment income.
Behind the Headlines
Adjusted operating revenues amounted to $1.9 billion, which increased 12.5% year over year. Net investment income decreased 0.2% year over year to $521 million. Meanwhile, fee income of $543 million increased 11% year over year. Premiums totaled $790 million, up 17.4% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 10% from the year-ago quarter. As of Dec. 31, 2024, VOYA’s assets under management and assets under administration and advisement totaled $893.5 million.
Segmental Update
Wealth Solutions recorded adjusted operating earnings of $210 million, which increased 42.8% year over year. The increase was primarily due to growth in fee-based revenues, higher alternative investment income and disciplined expense management, partially offset by lower spread-based assets. Full-service recurring deposits grew 10.7% to $3.8 billion, driven by growth in both Corporate and Tax-Exempt markets.
Health Solutions incurred pre-tax adjusted operating loss of $102 million against the year-ago period’s earnings of $44 million. The decline was primarily attributable to higher loss ratios in Stop Loss. Annualized in-force premiums and fees grew 16% to $3.9 billion on growth across all product lines due to strong sales and favorable retention.
Investment Management posted pre-tax adjusted operating earnings, excluding Allianz's noncontrolling interest, of $66 million, which increased 46.7% year over year. The increase was primarily due to higher fee-based revenues benefiting from strong business momentum, positive capital markets and performance fees. It was partially offset by higher variable compensation. Investment Management generated net inflows of $3.4 billion (excluding divested businesses) during the three months ended Dec. 31, 2024, representing organic growth of 1.1% for the reported quarter. Net flows reflect continued growth in the Insurance channel and further positive flows within Retail.
Corporate incurred pre-tax adjusted operating losses, excluding Allianz's noncontrolling interest, of $27 million, narrower than a loss of $34 million incurred in the year-ago quarter.