Voya Financial announces fourth-quarter and full-year 2023 results
-
Fourth-quarter 2023 net income available to common shareholders of
$118 million , or$1.10 per diluted share, and after-tax adjusted operating earnings1 of$174 million , or$1.63 per diluted share. -
Full-year 2023 net income available to common shareholders of
$589 million , or$5.42 per diluted share, and after-tax adjusted operating earnings of$763 million , or$7.02 per diluted share. -
Full-year 2023 results reflect record after-tax adjusted operating earnings in
Health Solutions , expense discipline, and significant excess capital generation. - Voya expects additional commercial momentum, healthy margins, strong cash generation, and further return of excess capital to shareholders in 2024.
“Our fourth-quarter and full-year 2023 results demonstrate our commitment to execution; discipline in managing expenses while continuing to reinvest in our businesses; and the benefits of Voya’s diversified, capital-light business mix,” said
“Looking ahead, our diversified revenue sources and prudent expense-management track record give us confidence in our ability to consistently generate strong free cash flows, and our capital deployment focus in 2024 will be on share repurchases and dividends,” added Lavallee.
_________________________
|
Fourth-Quarter 2023 Consolidated Results
Fourth-quarter 2023 net income available to common shareholders was
Fourth-quarter 2023 after-tax adjusted operating earnings were
Full-Year 2023 Consolidated Results
Full-year 2023 net income available to common shareholders was
Full-year 2023 after-tax adjusted operating earnings were
Business Segment Results
Wealth Solutions
Wealth Solutions fourth-quarter 2023 pre-tax adjusted operating earnings were
For the year ended
Excluding notables, net revenues for the year ended
Excluding notables, net revenues for the year ended
Investment Management
Investment Management fourth-quarter 2023 pre-tax adjusted operating earnings, excluding Allianz's noncontrolling interest, were
For the year ended
Excluding notables, net revenues for the year ended
Capital
For full-year 2023, Voya generated approximately
Additional Financial Information and Earnings Call
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. In addition, Voya will host a conference call on
About
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) global market risks, including general economic conditions, our ability to manage such risks and interest rates; (ii) liquidity and credit risks, including financial strength or credit ratings downgrades, requirements to post collateral, and whether funds will be available to us through either dividends from our subsidiaries or lending programs; (iii) strategic and business risks, including our ability to maintain market share, achieve desired results from our acquisitions and dispositions, or otherwise manage our third-party relationships; (iv) investment risks, including the ability to achieve desired returns or liquidate certain assets; (v) operational risks, including cybersecurity and privacy failures and our dependence on third parties; and (vi) tax, regulatory and legal risks, including limits on our ability to use our deferred tax assets, changes in law, regulation or accounting standards, and our ability to comply with regulations. 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
VOYA-IR VOYA-CF
Reconciliation of Net Income (Loss) to Adjusted Operating Earnings and Earnings Per Share (Diluted) |
|||||||||||||
|
Three Months Ended |
||||||||||||
(in millions USD, except per share) |
|
|
|
||||||||||
|
After-tax (1) |
Per share |
|
After-tax (1) |
Per share |
||||||||
Net Income (loss) available to |
$ |
118 |
|
$ |
1.10 |
|
|
$ |
190 |
|
$ |
1.78 |
|
Less: |
|
|
|
|
|
||||||||
Net investment gains (losses) |
|
(8 |
) |
|
(0.08 |
) |
|
|
(8 |
) |
|
(0.07 |
) |
Income (loss) related to businesses exited or to be exited through reinsurance or divestment |
|
(38 |
) |
|
(0.36 |
) |
|
|
(27 |
) |
|
(0.25 |
) |
Other adjustments (2) |
|
(10 |
) |
|
(0.09 |
) |
|
|
(3 |
) |
|
(0.03 |
) |
Adjusted operating earnings |
$ |
174 |
|
$ |
1.63 |
|
|
$ |
227 |
|
$ |
2.13 |
|
Less: |
|
|
|
|
|
||||||||
Alternative investment income and prepayment fees above (below) long-term expectations net of variable compensation |
|
(36 |
) |
|
(0.34 |
) |
|
|
(50 |
) |
|
(0.47 |
) |
Other (3) |
|
— |
|
|
— |
|
|
|
53 |
|
|
0.50 |
|
Adjusted operating earnings excluding notable items |
$ |
210 |
|
$ |
1.97 |
|
|
$ |
224 |
|
$ |
2.10 |
|
Note: Totals may not sum due to rounding. |
(1) For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, non-deductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings. For net investment gains (losses), income (loss) related to businesses exited, and other non-operating items, we apply a 21% tax rate and adjust for related tax benefits and expenses, including changes to tax valuation allowances and impacts related to changes in tax law. |
(2) Primarily consists of acquisition and integration costs associated with the |
(3) Includes favorable tax adjustments primarily related to foreign tax credits in 2022. |
Reconciliation of Net Income (Loss) to Adjusted Operating Earnings and Earnings Per Share (Diluted) |
|||||||||||||
|
Twelve Months Ended |
||||||||||||
(in millions USD, except per share) |
|
|
|
||||||||||
|
After-tax (1) |
Per share |
|
After-tax (1) |
Per share |
||||||||
Net Income (loss) available to |
$ |
589 |
|
$ |
5.42 |
|
|
$ |
474 |
|
$ |
4.30 |
|
Less: |
|
|
|
|
|
||||||||
Net investment gains (losses) (2) |
|
(2 |
) |
|
(0.02 |
) |
|
|
(150 |
) |
|
(1.36 |
) |
Income (loss) related to businesses exited or to be exited through reinsurance or divestment (3) |
|
(44 |
) |
|
(0.40 |
) |
|
|
(109 |
) |
|
(0.99 |
) |
Other adjustments (4) |
|
(128 |
) |
|
(1.18 |
) |
|
|
(74 |
) |
|
(0.67 |
) |
Adjusted operating earnings |
$ |
763 |
|
$ |
7.02 |
|
|
$ |
807 |
|
$ |
7.32 |
|
Less: |
|
|
|
|
|
||||||||
Alternative investment income and prepayment fees above (below) long-term expectations net of variable compensation |
|
(97 |
) |
|
(0.89 |
) |
|
|
(84 |
) |
|
(0.76 |
) |
Other (5) |
|
(13 |
) |
|
(0.12 |
) |
|
|
67 |
|
|
0.60 |
|
Adjusted operating earnings excluding notable items |
$ |
873 |
|
$ |
8.03 |
|
|
$ |
824 |
|
$ |
7.48 |
|
Note: Totals may not sum due to rounding. |
(1) For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, non-deductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings. For net investment gains (losses), income (loss) related to businesses exited, and other non-operating items, we apply a 21% tax rate and adjust for related tax benefits and expenses, including changes to tax valuation allowances and impacts related to changes in tax law. |
(2) Net investment gains include a |
(3) Includes a one-time tax benefit of |
(4) Primarily consists of acquisition and integration costs associated with the |
(5) In 2023, includes changes in certain legal and other reserves not expected to recur at the same level. In 2022, includes changes in certain other reserves not expected to recur at the same level, favorable tax adjustments primarily related to foreign tax credits, and COVID-19 Impacts. |
Adjusted Operating Earnings and Notable Items |
|||||||||
Three Months Ended |
|||||||||
(in millions USD, except per share) |
Amounts Including
|
Alternative investment income and prepayment fees above (below) long-term expectations net of variable compensation (1) |
Amounts Excluding
|
||||||
|
a |
b |
c = a - b |
||||||
Adjusted operating earnings |
|
|
|
||||||
Wealth Solutions |
$ |
147 |
|
$ |
(39 |
) |
$ |
187 |
|
|
|
44 |
|
|
(5 |
) |
|
48 |
|
Investment Management |
|
57 |
|
|
(2 |
) |
|
60 |
|
Corporate |
|
(33 |
) |
|
— |
|
|
(33 |
) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest |
|
215 |
|
|
(46 |
) |
|
261 |
|
Less: Earnings (loss) attributable to Allianz noncontrolling interest |
|
13 |
|
|
— |
|
|
13 |
|
Adjusted operating earnings before income taxes |
|
202 |
|
|
(46 |
) |
|
248 |
|
Income taxes (2) |
|
28 |
|
|
(10 |
) |
|
38 |
|
Adjusted operating earnings after income taxes |
$ |
174 |
|
$ |
(36 |
) |
$ |
210 |
|
Adjusted operating earnings per share |
|
1.63 |
|
|
(0.34 |
) |
|
1.97 |
|
Note: Totals may not sum due to rounding. |
(1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable compensation. Long-term expectation for alternative investments is a 9% annual return, which for 2023 was approximately |
(2) For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, non-deductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings. |
Adjusted Operating Earnings and Notable Items |
||||||||||||
Three Months Ended |
||||||||||||
(in millions USD, except per share) |
Amounts Including
|
Alternative investment income and prepayment fees above (below) long-term expectations net of variable compensation (1) |
Other (2) |
Amounts Excluding
|
||||||||
|
a |
b |
c |
d = a - b - c |
||||||||
Adjusted operating earnings |
|
|
|
|
||||||||
Wealth Solutions |
$ |
145 |
|
$ |
(50 |
) |
$ |
— |
|
$ |
195 |
|
|
|
78 |
|
|
(5 |
) |
|
— |
|
|
83 |
|
Investment Management |
|
57 |
|
$ |
(7 |
) |
|
— |
|
|
64 |
|
Corporate |
|
(60 |
) |
|
— |
|
|
— |
|
|
(60 |
) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest |
|
219 |
|
|
(63 |
) |
|
— |
|
|
282 |
|
Less: Earnings (loss) attributable to Allianz noncontrolling interest |
|
13 |
|
|
— |
|
|
— |
|
|
13 |
|
Adjusted operating earnings before income taxes |
|
206 |
|
|
(63 |
) |
|
— |
|
|
269 |
|
Income taxes (3) |
|
(21 |
) |
|
(13 |
) |
|
(53 |
) |
|
45 |
|
Adjusted operating earnings after income taxes |
$ |
227 |
|
$ |
(50 |
) |
$ |
53 |
|
$ |
224 |
|
Adjusted operating earnings per share |
|
2.13 |
|
|
(0.47 |
) |
|
0.50 |
|
|
2.10 |
|
Note: Totals may not sum due to rounding. |
(1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable compensation. Long-term expectation for alternative investments is a 9% annual return, which for 2022 was approximately |
(2) Includes favorable tax adjustments primarily related to foreign tax credits in 2022. |
(3) For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, non-deductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings. |
Adjusted Operating Earnings and Notable Items |
||||||||||||
Twelve Months Ended |
||||||||||||
(in millions USD, except per share) |
Amounts including Notable items |
Alternative investment income and prepayment fees above (below) long-term expectations net of variable compensation (1) |
Other (2) |
Amounts excluding Notable items |
||||||||
|
a |
b |
c |
d = a - b - c |
||||||||
Adjusted operating earnings |
|
|
|
|
||||||||
Wealth Solutions |
$ |
632 |
|
$ |
(110 |
) |
$ |
— |
|
$ |
742 |
|
|
|
315 |
|
|
(10 |
) |
|
(16 |
) |
|
341 |
|
Investment Management |
|
225 |
|
|
(3 |
) |
|
— |
|
|
228 |
|
Corporate |
|
(208 |
) |
|
— |
|
|
— |
|
|
(208 |
) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest |
|
964 |
|
|
(123 |
) |
|
(16 |
) |
|
1,103 |
|
Less: Earnings (loss) attributable to Allianz noncontrolling interest |
|
48 |
|
|
— |
|
|
— |
|
|
48 |
|
Adjusted operating earnings before income taxes |
|
916 |
|
|
(123 |
) |
|
(16 |
) |
|
1,055 |
|
Income taxes (3) |
|
153 |
|
|
(26 |
) |
|
(3 |
) |
|
182 |
|
Adjusted operating earnings after income taxes |
$ |
763 |
|
$ |
(97 |
) |
$ |
(13 |
) |
$ |
873 |
|
Adjusted operating earnings per share |
|
7.02 |
|
|
(0.89 |
) |
|
(0.12 |
) |
|
8.03 |
Note: Totals may not sum due to rounding. |
(1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable compensation. Long-term expectation for alternative investments is a 9% annual return, which for 2023 was approximately |
(2) Includes changes in certain legal and other reserves not expected to recur at the same level. |
(3) For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, non-deductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings. |
Adjusted Operating Earnings and Notable Items |
||||||||||||
Twelve Months Ended |
||||||||||||
(in millions USD, except per share) |
Amounts including Notable items |
Alternative investment income and prepayment fees above (below) long-term expectations net of variable compensation (1) |
Other (2) |
Amounts excluding Notable items |
||||||||
|
a |
b |
c |
d = a - b - c |
||||||||
Adjusted operating earnings |
|
|
|
|
||||||||
Wealth Solutions |
$ |
697 |
|
$ |
(76 |
) |
$ |
— |
|
$ |
773 |
|
|
|
304 |
|
|
(7 |
) |
|
17 |
|
|
294 |
|
Investment Management |
|
186 |
|
|
(24 |
) |
|
— |
|
|
210 |
|
Corporate |
|
(253 |
) |
|
— |
|
|
— |
|
|
(253 |
) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest |
|
934 |
|
|
(106 |
) |
|
17 |
|
|
1,024 |
|
Less: Earnings (loss) attributable to Allianz noncontrolling interest |
|
26 |
|
|
— |
|
|
— |
|
|
26 |
|
Adjusted operating earnings before income taxes |
|
908 |
|
|
(106 |
) |
|
17 |
|
|
997 |
|
Income taxes (3) |
|
101 |
|
|
(22 |
) |
|
(49 |
) |
|
173 |
|
Adjusted operating earnings after income taxes |
$ |
807 |
|
$ |
(84 |
) |
$ |
67 |
|
$ |
824 |
|
Adjusted operating earnings per share |
|
7.32 |
|
|
(0.76 |
) |
|
0.60 |
|
|
7.48 |
|
Note: Totals may not sum due to rounding. |
(1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable compensation. Long-term expectation for alternative investments is a 9% annual return, which for 2022 was approximately |
(2) Includes changes in certain other reserves not expected to recur at the same level, favorable tax adjustments primarily related to foreign tax credits, and COVID-19 Impacts. |
(3) For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, non-deductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings. |
Net Revenue, Adjusted Operating Margin, and Notable Items |
||||||||||||
Twelve Months Ended |
||||||||||||
(in millions USD) |
Amounts Including Notable Items |
Alternative investment income and prepayment fees above (below) long-term expectations net of variable compensation (1) |
Other (2) |
Amounts Excluding Notable Items |
||||||||
|
a |
b |
c |
d = a - b - c |
||||||||
Net revenue |
|
|
|
|
||||||||
Wealth Solutions |
$ |
1,881 |
|
$ |
(110 |
) |
$ |
— |
|
$ |
1,991 |
|
|
|
1,185 |
|
|
(10 |
) |
|
(16 |
) |
|
1,212 |
|
Investment Management |
|
916 |
|
|
(2 |
) |
|
— |
|
|
918 |
|
Total net revenue |
$ |
3,982 |
|
$ |
(122 |
) |
$ |
(16 |
) |
$ |
4,120 |
|
|
|
|
|
|
||||||||
Adjusted operating margin |
|
|
|
|
||||||||
Wealth Solutions |
|
33.6 |
% |
|
(3.7 |
)% |
|
— |
|
|
37.3 |
% |
|
|
26.6 |
% |
|
(0.6 |
)% |
|
(0.9 |
)% |
|
28.1 |
% |
Investment Management |
|
24.6 |
% |
|
(0.3 |
)% |
|
— |
|
|
24.9 |
% |
Adjusted operating margin, excluding Corporate |
|
29.4 |
% |
|
(2.1 |
)% |
|
(0.3 |
)% |
|
31.8 |
Note: Totals may not sum due to rounding. |
(1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable compensation. Long-term expectation for alternative investments is a 9% annual return, which for 2023 was approximately |
(2) Includes changes in certain legal and other reserves not expected to recur at the same level. |
Net Revenue, Adjusted Operating Margin, and Notable Items |
||||||||||||
Twelve Months Ended |
||||||||||||
(in millions USD) |
Amounts Including Notable Items |
Alternative investment income and prepayment fees above (below) long-term expectations net of variable compensation (1) |
Other (2) |
Amounts Excluding Notable Items |
||||||||
|
a |
b |
c |
d = a - b - c |
||||||||
Net revenue |
|
|
|
|
||||||||
Wealth Solutions |
$ |
1,892 |
|
$ |
(76 |
) |
$ |
— |
|
$ |
1,967 |
|
|
|
902 |
|
|
(7 |
) |
|
17 |
|
|
892 |
|
Investment Management |
|
756 |
|
|
(29 |
) |
|
— |
|
|
785 |
|
Total net revenue |
$ |
3,550 |
|
$ |
(112 |
) |
$ |
17 |
|
$ |
3,642 |
|
|
|
|
|
|
||||||||
Adjusted operating margin |
|
|
|
|
||||||||
Wealth Solutions |
|
36.9 |
% |
|
(2.4 |
)% |
|
— |
% |
|
39.3 |
% |
|
|
33.7 |
% |
|
(0.5 |
)% |
|
1.2 |
% |
|
33.0 |
% |
Investment Management |
|
24.7 |
% |
|
(2.1 |
)% |
|
— |
|
|
26.8 |
% |
Adjusted operating margin, excluding Corporate |
|
33.4 |
% |
|
(1.9 |
)% |
|
0.3 |
% |
|
35.0 |
% |
Note: Totals may not sum due to rounding. |
(1) Amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable compensation. Long-term expectation for alternative investments is a 9% annual return, which for 2022 was approximately |
(2) Includes changes in certain other reserves not expected to recur at the same level and COVID-19 Impacts. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240206772811/en/
Media Contact:
212-309-8941
Christopher.Breslin@voya.com
Investor Contact:
212-309-8999
IR@voya.com
Source: