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Sep 30, 2021
Voya Q3 2021 Earnings Report
Announced third-quarter 2021 results, achieving record adjusted operating earnings per share driven by strong investment income and solid performance in each business.
Key Takeaways
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.
Voya
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Voya Revenue by Segment
Revenue by Segment
Investment Management Revenue
CapyFin.comCorporate Revenue
CapyFin.com Forward Guidance
Voya expects to repurchase at least $1.1 billion of its common stock for the full-year 2021.
Positive Outlook
- 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.
Challenges Ahead
- $(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).
Revenue & Expenses
Visualization of income flow from segment revenue to net income