Voya Financial (VOYA) Q4 2024 earnings summary

Executive summary

• Strong earnings and growth in Wealth Solutions and Investment Management for 2024, offset by higher loss ratios in Health Solutions, 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.

• Strategic investments in Sconset Re and Leave Management to drive long-term growth and competitiveness, including a $0.1 billion deployment in Q4 2024.

• Capital generation and returns to shareholders remain priorities, with $800 million returned in 2024 and further growth investments planned for 2025.

• Strategic focus for 2025 includes improving Health Solutions margins, integrating OneAmerica, and capitalizing on commercial momentum.

Financial highlights

• Full-year 2024 adjusted operating EPS was $7.25, with Q4 at $1.40; adjusted operating earnings after-tax were $736 million for 2024.

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

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

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

• Net income available to common shareholders was $626 million in 2024, up from $589 million in 2023.

Outlook and guidance

• Expect to generate $750 million of excess capital in 2025 before growth investments.

• ROE guidance for 2025 set at 12%-13%, with a path to return to 14%-16% in 2026 as stop-loss margins recover.

• Share repurchases to be weighted toward the second half of 2025; payout ratio for 2025 expected at ~50%.

• Margin improvement in Health Solutions expected in 2025 and 2026 due to repricing and underwriting actions, with Stop Loss loss ratios expected to improve 5-15%.

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