NYSE$VOYA

Voya Financial Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Announced third-quarter 2021 results, achieving record adjusted operating earnings per share driven by strong investment income and solid performance in each business.

Voya Financial reported a net income of $142 million, or $1.15 per diluted share, and adjusted operating earnings of $315 million, or $2.57 per diluted share, for the third quarter of 2021. The company is on track to repurchase at least $1.1 billion of its common stock in 2021 and has increased its common stock dividend by over 20%.

  • Voya achieved record adjusted operating earnings per share in Q3 2021, driven by strong investment income and solid performance across all businesses.
  • Wealth Solutions full service recurring deposits grew 8.7% year-over-year, with full service net inflows of $355 million in the third quarter.
  • Health Solutions annualized in-force premiums increased 10.9% year-over-year due to growth across all product lines.
  • Investment Management expects annual net flows for 2021 to be at the high end of its 1-3% organic growth target, with over $7 billion in new mandates funded in Q4 2021.

Headline financials

Total Revenue

$2.01B

Previous: $2.07B-3.0%
EPS (adj)

$1.36

Previous: $1.19+14.3%
Free Cash Flow

$156M

Previous: -$319M+148.9%
Net Income

$156M

Previous: -$319M+148.9%
Operating Income

-$102M

Previous: -$194M+47.4%
Gross Profit

$540M

Previous: $436M+23.9%
Cash & Equivalents

$1.68B

Previous: $1.05B+59.4%
Total Assets

$168B

Previous: $171B-1.8%

Revenue & EPS history

Voya · Revenue · Quarterly

$2.01B

Q3 2021-3%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Voya · $398M total across 3 segments · Q4 2020

  • Retirement
    $258M+59.3%
  • Investment Management
    $90M+52.5%
  • Employee Benefits
    $50M-9.1%

Forward guidance

Voya expects to repurchase at least $1.1 billion of its common stock for the full-year 2021.

Tailwinds

  • Voya is on target to repurchase at least $1.1 billion of its common stock in 2021.
  • The board of directors authorizes the repurchase of an additional $500 million of common stock.
  • Common stock dividend increased over 20% to $0.20 per share beginning in the fourth quarter of 2021.
  • Approximately $400 million of senior debt being redeemed during the fourth quarter of 2021.
  • Annual net flows for the full-year 2021 are expected to be at the high end of the company's 1-3% organic growth target due to over $7 billion in new mandates that have already funded during the fourth quarter of 2021.

Headwinds

  • $(0.14) of claims due to COVID-19
  • $(0.18) of other items, including legal and other reserve adjustments as well as higher variable and incentive compensation due to strong business results and higher alternative investment income.
  • Investment Management had total net outflows (excluding sub-advisor replacements and divested businesses) of $1,094 million.
  • Retail net outflows were $341 million.
  • Higher Group Life loss ratio (reflecting approximately $22 million of COVID-related claims).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.2%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+1.6%

Avg return

30 days after

47%

25 / 53 earnings

Positive

+10.0%

Q4 2022

Best reaction

-9.9%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.2%-3.7%+4.2%
Q4 2025-6.5%+1.2%-10.3%
Q3 2025-3.5%-3.5%-3.8%
Q1 2025+9.3%+15.8%+10.7%
Q4 2024+4.8%+5.0%+1.0%
Q3 2024-6.3%+1.6%+2.4%
Q2 2024-1.2%-7.5%-5.6%
Q1 2024+2.2%+2.4%+7.9%
Q4 2023-3.8%-2.3%-4.8%
Q3 2023+2.5%+6.1%+8.2%
Q2 2023-1.8%-2.4%-6.2%
Q1 2023-9.9%-8.2%-10.1%
Q4 2022+10.0%+8.9%+6.4%
Q3 2022-2.2%-2.0%-4.0%
Q2 2022+2.9%+1.8%+3.2%
Q1 2022+6.4%+0.8%+7.1%
Q4 2021+2.3%+1.0%-10.1%
Q3 2021-2.4%-2.8%-9.5%
Q2 2021+3.5%+4.2%-1.3%
Q1 2021-4.3%-1.9%-8.1%
Q4 2020-4.3%-5.8%+9.4%
Q3 2020+1.6%+6.8%+18.8%
Q2 2020+0.2%+4.2%+2.6%
Q1 2020-5.3%+1.7%+12.9%
Q4 2019-0.6%+0.4%-26.5%
Q3 2019+3.6%+3.3%+3.0%
Q2 2019-4.4%-5.9%-2.8%
Q1 2019-1.4%-0.9%+0.0%
Q4 2018+4.1%+1.8%+4.8%
Q3 2018+5.8%+6.9%+8.0%
Q2 2018-1.0%-0.5%-0.9%
Q1 2018-0.7%-0.7%-0.8%
Q4 2017+6.5%+5.3%+12.5%
Q3 2017+2.4%+3.8%+9.6%
Q2 2017+3.4%+4.2%-2.6%
Q1 2017-4.1%-3.8%-7.1%
Q4 2016-2.7%+0.0%-1.1%
Q3 2016-1.0%+2.0%+28.9%
Q2 2016+8.5%+11.5%+15.5%
Q1 2016-7.6%
Q4 2015-2.8%
Q3 2015-1.6%
Q2 2015-2.6%
Q1 2015+2.9%
Q4 2014+3.6%
Q3 2014+0.6%
Q2 2014-2.8%
Q1 2014-2.1%
Q4 2013+2.5%
Q3 2012+4.7%
Q3 2013+6.4%
Q2 2013-1.0%
Q1 2013+1.4%
Q2 2012
Q1 2012
Q4 2011
Q3 2011

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