Voya Financial (VOYA) Q4 2024 earnings summary

Executive summary

• Delivered strong revenue and earnings growth in Wealth Solutions and Investment Management for 2024, while Health Solutions faced higher loss ratios, especially in Stop Loss.

• Closed the OneAmerica acquisition, adding $60 billion in assets and expanding Wealth Solutions' reach to 60,000 plans and nearly 8 million participants.

• Returned $800 million to shareholders in 2024 through share repurchases and dividends.

• Strategic investments in Sconset Re and Leave Management to enhance competitiveness and long-term growth.

• Executed disciplined capital stewardship, expense management, and prioritized growth investments for future expansion.

Financial highlights

• Adjusted operating earnings per share were $1.40 in Q4 and $7.25 for the full year 2024; after-tax adjusted operating earnings were $736 million for 2024.

• Wealth Solutions earnings up 30% year-over-year to $820 million; Investment Management earnings up 20% to $213 million.

• Wealth Solutions generated $2 billion in defined contribution net flows; Investment Management had $12.5 billion in net inflows for 2024, representing 4.4% organic growth.

• Returned $800 million of excess capital to shareholders in 2024 through share repurchases and dividends.

• Free cash flow conversion was approximately 90% in 2024.

Outlook and guidance

• Expect materially improved net underwriting result in Health Solutions Stop Loss for 2025 due to corrective actions and rate increases.

• Project $750 million of excess capital generation in 2025 before growth investments, with about half to be returned to shareholders.

• ROE guidance for 2025 is 12%-13%, with a return to 14%-16% targeted for 2026 as stop-loss margins recover.

• Share repurchases to be weighted toward the second half of 2025.

• OneAmerica integration expected to deliver $200 million+ net revenue and $75 million+ pre-tax adjusted operating earnings in 2025.