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Mar 31, 2021
Voya Q1 2021 Earnings Report
Reported strong first-quarter results driven by growth in Wealth Solutions and Health Solutions, along with effective capital management.
Key Takeaways
Voya Financial reported a net income of $1,086 million, or $8.29 per diluted share, and adjusted operating earnings of $223 million, or $1.70 per diluted share. The company saw growth in Wealth Solutions and Health Solutions, and continued to execute its capital management strategy, repurchasing $235 million of common stock and $75 million of debt.
Net income available to common shareholders was $8.29 per diluted share.
Adjusted operating earnings were $1.70 per diluted share, after tax, including $0.66 of prepayment fees and alternative investment income above expectations and $(0.17) of claims due to COVID-19.
The company repurchased $235 million of common stock and retired $75 million of debt.
Wealth Solutions full service recurring deposits grew 5% and full service net flows were $868 million.
Voya
Voya
Voya Revenue by Segment
Revenue by Segment
Investment Management Revenue
CapyFin.com Forward Guidance
Voya expects to repurchase $1 billion of common stock in 2021 and expects Investment Management to achieve its 2-4% net flow organic growth target for 2021 due to a strong, unfunded pipeline.
Positive Outlook
- Strong growth in Wealth Solutions fee revenue
- Favorable change in deferred acquisition costs and value of business acquired
- Expected to repurchase $1 billion of common stock in 2021
- Investment Management expected to achieve a 2-4% net flow organic growth target for 2021
- Growth across all Health Solutions product lines
Challenges Ahead
- Net outflows in Investment Management during the quarter
- Lower earnings in Health Solutions due to higher claims from COVID-19
- Institutional net outflows of $128 million
- Retail net outflows of $252 million
- Higher Group Life loss ratio due to COVID-related claims