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Mar 31, 2020
Voya Q1 2020 Earnings Report
Voya's first quarter results were announced, revealing a net loss but growth in normalized adjusted operating earnings per share.
Key Takeaways
Voya Financial reported a net loss available to common shareholders of $(98) million, or $(0.71) per diluted share, but normalized adjusted operating earnings per share grew 26% year-over-year, driven by record earnings in Employee Benefits and strong organic growth in each of its businesses. The company had $612 million of excess capital as of March 31, 2020, and is on track to achieve targeted cost savings of at least $250 million by the end of 2020.
Net loss available to common shareholders was $(98) million, or $(0.71) per diluted share.
Adjusted operating earnings were $115 million, or $0.83 per diluted share, after tax.
Normalized adjusted operating earnings were $151 million, or $1.10 per diluted share, after tax.
Excess capital was $612 million as of March 31, 2020.
Revenue by Segment
Forward Guidance
Voya expects that its earnings growth outlook will be affected by the uncertainties created by COVID-19, such as the magnitude of claims, changes to employment levels, and the ultimate shape of a future economic recovery. The company will revisit its earnings growth guidance ranges, including the previously shared $1.80 to $1.90 EPS guidance for the fourth quarter 2021, as it gains improved visibility. Voya expects the closing of the sale of its Individual Life and other legacy non-retirement annuities businesses by Sept. 30, 2020 and targeted cost savings of at least $250 million by the end of 2020 remain on track.
Positive Outlook
- Targeted cost savings of at least $250 million by the end of 2020 remain on track.
- The sale of Individual Life and other legacy non-retirement annuities businesses is expected to close by Sept. 30, 2020.
- Executing on organic growth plans.
- Executing on cost savings plans.
- Executing on capital management plans.
Challenges Ahead
- Earnings growth outlook will be affected by uncertainties created by COVID-19.
- Magnitude of claims is uncertain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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