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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.
Voya
Voya
Voya Revenue by Segment
Revenue by Segment
Retirement Revenue
CapyFin.comInvestment Management Revenue
CapyFin.comEmployee Benefits Revenue
CapyFin.comCorporate Revenue
CapyFin.com 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.
- Changes to employment levels are uncertain.
- The ultimate shape of a future economic recovery is uncertain.
- Medium and long-term earnings growth guidance is uncertain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income