VOYA - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Voya Financial Second Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. is event this note, being recorded. Please now Michael Katz, would like Investor to to over conference the EVP turn Relations. I Finance, and Strategy Please ahead. go

Michael Katz

second call. and XXXX us you for you, good Welcome joined Voya Thank call. morning. who have earnings appreciate We Financial's conference this all of to quarter

call materials our available website webcast. at a reminder, are the As investors.voya.com for today's on or via

Turning X. to Slide

refer made forward-looking federal comments the during to I statements securities the of call contain this for Some may slide of within meaning law. more you this conference information.

GAAP to our We release in are be and referring will press investors.voya.com. website, also certain today non-GAAP our on financial measures. reconciliations financial found supplement available

Smith, After questions. Martin, we Chairman are Joining me your Executive call their will on and take and our the Chief Financial Vice prepared our Chairman as remarks, Officer. Officer; Rod Mike Chief as well

also session, Wealth let's and the Growth Health as that, turn Charlie Q&A to Nelson, like we that Solutions. I X to over Rob businesses, to For Heather would our our Rod. have Chief the and turn Investment as With Vice Management; Officer, Christine Hurtsellers, of call specifically, as Chairman well Grubka, invited Slide heads Solutions; Lavallee,

Rodney Martin

Good morning.

key some performance across share. our during adjusted We operating investment and solid Let's This strong income Slide X earnings was quarter businesses. with begin on with delivered results per second strong themes. the record driven by

generated Health months return fixed growth in for X% our net full the flows. corporate the institutional was our This In million with of Our clear institutional across grew XX and Management, all product in results million and outcomes income Solutions, In and driven new focused period. us grew mandates prior In second workplace and $XXX delivered. driven increase year compared deposits service annualized net year-over-year. Wealth This was greater strategy generated is and nearly approximately of for in-force of growth during We both reflects Solutions, our the premiums drive demonstrated the particularly we quarter. $XXX tax-exempt by strategies. XX% this enabling to trailing This Investment flows full-service clients inflows lines. by a in we recurring continuing was by markets. significant to

excess exceptional In the to June good we to We stewards on to XX. leading earnings shares had of growth, of addition our second of repurchased of first billion focus quarter, year. in continue shares shareholder as demonstrate $XXX we half And of million approximately capital $XXX this being of during over the repurchased million capital. $X.X

of more repurchase expect at XXXX. $X.X and $X since to to We shareholders build continue we're least positioned than upon billion IPO. our to And share that capital the we've dividends returned of our well through both billion shares buybacks during to

and needs also our evolving we solutions. needs the we Planning continued of capabilities our of we've This a the clients. Strategies, Voya of clients. our workplace quarter, X, the actions, health and Through This account to our Benefit focus July Channel On to Independent Financial June on completed institutions. Financial X, we And advance of on sale Advisors. acquisition completed of purposeful expand strategic Voya will to our the of leading our third-party acquisition meet increasing and meet workplace context administrator institutional positioned the

in us. our the focus Investor of forward opportunities sharing solutions take us more our per earnings to of us have about focus create We positioned to to before unique enable further advantage generate share at our Our growth unique of that November. growth. has us detail Voya will clear client will and insights phase and value the Day look to digital and customers capabilities, needs all greater a enable next on for strategy

Slide Turning X. to

diversity, Day for annual of inclusion. numerous Service Diversity we original dedicate nonprofits in country. advance Day once an of initiative organizations across May, the Voya its Voya's signatory, to of again a new day held approximately encourages Action that National hosting a CEO celebrated And employees in Understanding. volunteered to Inclusion, hours This conversations equity XX,XXX recently the and As hybrid and to Voya format.

the As to disability highlighted Forbes on awareness, total recognition interest in which and a we needs, campaign, highs. Voya's actions Voya recent helped with of as a campaign family that people year. earned long-standing XXXX fourth by XXXX reflect communities place of inclusive in to taken a carry earn continuation which trust advertising is brand enable customers. contributed through and This This special Equality our to special and best Voya business. people includes a features needs with for has our do culture doing in company article, commitment brand Disability a new The our and XXX% and disability the for score consecutive our all inclusion for our work our to Index. ethics,

the details company focus to Americans our performance and me character on to in let our more in the on continue that, businesses, our and With defining our results. Mike Smith brand. provide of of all will needs ask We

Michael Smith

you, Thank Rod.

equity $X.XX in items, and solutions; other DAC/VOBA from primarily other fourth, related $X.XX quarter; Turning linked $X.XX equity intangibles We incentive to markets XXXX, alternative driven impacting delivered income unlocking of of quarter included items: of notable to and quarter second, earnings strength; our expectations, prepayment share health second financial market which is first X performance our the compensation in related strong COVID-XX $X.XX of unfavorable results adjusted of which operating to per third, the mostly favorable by of above first, long-term record on after-tax quarter. the claims the $X.XX in Slide X. and

alternative Planning items, gains $XXX of were operating net costs. GAAP our in quarter mark-to-market income, These underlying reflects favorable equity income Independent items by including several strong CMOB partly Second and results our of restructuring million Channel favorable sale the the from sale of and Venerable. offset investment and Financial

earnings $XX in higher second expectations. the million $XXX our operating record XXXX, Solutions of by above in alternative Moving quarter million recovery and prepayment a adjusted $XX income in largely Alternative This materially quarter. long-term was delivered second of to million Slide than driven income. the X. was Wealth

While of and we also of the higher Planning this benefit rate core surplus loss solid income. growth levels equity business Independent in and Investments crediting taken also markets. revenues this to continued Channel. year strong from DAC from Fee-based unlock quarter. favorable the were asset benefited was the were earlier offsetting a by experienced higher this markets. from to Financial helped from actions business Partially quarter results the that sale had our revenue equity Underlying favorable due

adjusted expect and million the $XX Looking expenses Administrative prior of ahead, reduce operating second legal to million we expense in focus half were $XX due also by continued the on accrual, year-over-year, sale earnings our repeating discipline. a pretax year not to to XXXX. favorable

employer deposits by to Full XX-month and rising Service employee on trailing and recurring a $XX billion basis, Turning deposits led flows. X.X% grew to contributions. over

respectively. continue million value deposit of We stable and XXXX in quarter, last million flows full-service year over contributing to to X%. $X.X $XXX full XX net inflows recordkeeping outflows growth expect generated of range the $XXX billion the in experienced million $XXX We recurring net to of and second modest of positive We X% months. the

markets result we due Higher service the but case the anticipate half participants record-keeping higher elevated meaningfully ahead, of X equity to improve large increase of they outflows termination as of surrenders. the XXXX and equity record and participant Looking also in market. of size keeping earnings a client second net surrenders full

million. due Slide the Despite net While plan, adjusted and XXXX Investment retail flows. the earnings, capital remain in associated XXXX, for were year-over-year million long-term both investment included quarter were second target. relative We $XX investment favorable with for above headwind on which participants variable bullish of client outlook in in to still On delivered and Full institutional overall due significantly XXXX quarter will $XX $XX capital higher robust full-service to record-keeping RFP compensation pipeline, Service Administrative on of were participant trends. positive. operating results, and number quarter improvement our are client to net surrenders expenses effect on The favorable results surrenders expect this strong the to flows of Management assets. full our we quarter. elevated due strong this Revenues than both largely to million remain equity growth activity year-over-year the a retention the second year growth higher by be headwind, X.

including margin, operating the adjusted was XX% notables, quarter. Our in

modest Turning retail institutional a net million mostly to by saw We $XXX inflows mortgage demand income we continue to from was return and flows. We to and overall in were a fixed credit private positive insurance outflows. U.S. This channel in quarter. clients offset loans partially which saw for clients. demand, net investment-grade the long-duration from our credit see And demand solutions. commercial institutional reflected

slightly offset Retail weakness partially improved this flows this negative was quarter. by however, sequentially, strength Our domestic flows international remained in quarter. some

a we outflow ahead, outflows by expect net Looking client. divestiture a $X driven overall billion the quarter, client related an in insurance by to third

As expectations our growth revenue still this of strengthening we set are great seeing demand products XXXX across X%. we X% a a organic our are strategies. profile. yield full for are to lowering includes diverse that our year result, Notwithstanding higher-margin this, to Encouragingly, demand solutions for

third, distribution a with the believe our investment in outperforming strengths: clients diversity key proposition. strength X-, significant we in our our X- driven fixed providing value a channels the our For demonstrated pipeline; of first, funds long-term benchmarks XX-year remains and these the second by income our exceptional unfunded outlook and X XX% by second, quarter; growth of reasons, continued performance, their and solutions differentiated positive,

growth earnings million strong excess in quarter, to business second compares second XX%. in all income, businesses, claims exceeded within year-over-year. delivered by a XX.X% Solutions XXXX. the X.X% basis Health premiums ratio Annualized exceptional. prepayment performance benefited total quarter $XX Turning grew to was earnings loss related target Solutions in COVID. and long-term adjusted lines, impact including of to XX% Underlying to our Voluntary XX-month growth record Slide The We experienced million and quarter on aggregate XX. Similar double-digit of result favorably range $XX despite operating a trailing was group million. which other of product life across the from $XX Loss. targeted the in-force Stop Health alternative the with our This of to

$X to following this the an of the cause financial XX of loss additional in were loss months, reported $XX last reflected to million second total see $XX ratio previously claims that incurred the continue XXXX. XXXX. attributed COVID quarter. information, impacted quarter note reported not of over We does in million Also updated second of voluntary ratios in of of change the previously of which, million quarter favorable We claims Please the is results. which death $XX COVID-related million of the aggregate receipt first

impact overall of COVID We for within pandemic million per continue earnings million a the $X $X to $XX expect remainder be the of to and range roughly to death. of the of expected U.S. pretax impact our million XX,XXX year

the accelerates we quarter, on Benefit the in and Strategies, a acquisition closed on our our which fast-growing range of expands market solutions HSA offered This workplace. of through presence

earnings We strong to COVID-related momentum headwinds and future supported pipeline activity. expect by a XXXX be of reduced

we financial the income realize repeating. independent higher We pay the quarter's sale effect expectation In a channel. second quarter XX. of quarter in annual and DAC favorable our the dividend Slide to of to a third and seasonally Turning our will stock long-term returning quarter, showed growth of not third preferred of alternative impact the full planning the X% unlock,

EPS interest Health rates. to Wealth COVID-related foresee group improvement we normalize. in include life due Specific We claims. Favorable also items lower voluntary loss underwriting lower to quarter headwinds Solutions continued ratios Solutions, third expect from to an

lower expect quarter. third compensation the also We in incentive

the EPS ASR, this share are quarter including from Potential that also program. not outlook potential growth ASR June course, business impacts quarter could impacts. dilution, benefit the third on affect other per quarter results, page. and $X.XX repurchases above warrant over unexpected Third market includes affecting There of a additional are, third COVID-XX share and included quarter late factors second

prepayment equity operating guide strong While market second we do in upside typically adjusted earnings following to not quarter. performance excess quarter income, alternative be and the on third there may

than $XXX since market million been $XXX repurchased to shareholders shares share we XX. to $X.X Turning and a repurchases. the have In through dividends capital and combination have more we ASRs public Year-to-date, repurchases. to through open and shareholders company we almost billion in million Slide a of second of returned quarter,

puts us track on in billion to at $X of repurchases quarter's repurchase activity XXXX. least reach This well

sale capital Our $X.X Financial the of from billion, the of included the which Planning was ending position excess majority Independent our proceeds Channel.

is RBC leverage XX.X%. XXX%, our financial while Our estimated ratio ratio was

interests Our markets. and last non-controlling is leverage than earnings, driven quarter, and in AOCI sale increases strong ratio gain lower reflecting financial by on impacts

capital COVID-related there flow XXXX a our event, quarter in performance believe of and That capital a negative impairments, significant improving impacts. In COVID-related and businesses. up to in net including we are underlying positive scenarios said, $XX $XXX our a and high Due net in long-term our previously second unlikely for poised record is and a of are the pleased shock the macro the could half and earnings year-to-date, with We million migration our we results have have of Finally, to franchises impacts, gross our institutional stress impacts respect quarter. position. the impact summary, million we workplace significant generate second with free cash highly we from no apply. incurred regarded success, excess credit roughly credit-related shared ratings to second see longer conditions, of

best as we the call to operator can your of so With shareholders. the questions. we back that deploy the that, to act continue I capital in will look We as proceeds will of stewards turn interest good take to

Operator

[Operator Instructions].

comes question with first Bhullar JPMorgan. Jimmy Our from

Jimmy Bhullar

driving what like margins we the that should So the the on impact then on asset the asset is And a the can get business, primarily I better have sort for gives you're about a you mandate And question positive losing, little think of And us relatedly, you then had that actually management billion actually flows and/or just that of bit it the the a more will class? year? And confidence terms into revenues? so $X how give what insight on in we fees what's business? of you that? if sense

Rodney Martin

Jimmy, thank Christine? you.

Christine Hurtsellers

Jimmy. you, Thank Yes.

all first, start the performance. the a to sold as with billion related It So was let's $X at invest client a so of outflow. that result not business,

so about And income. what was? think to that public It mandate core fixed how was

the do as you when well of far we our public size given the think what that that. about think income, to it relationship manage mandate, so of terms being it's as on clients base points typically just fixed side with And of we lower as the how as in about

to our to X question we from because X in to us on outflow, confidence just gives the about what we're guidance Now your to of down -- -- moving X that context the pivoted X.

we And net year our expect our have positive So sixth very strong. to distribution from flow cash straight sourced of team.

that rather, It's diversified, type to expecting too, not Jimmy, converting you We X real So would bit really a see gone a to commercial was why say, headwind, well as one robust strategy. is it's if that we do in huge due a thing quite flows that win we've seen really client both changing, And COVID. will, as that? mandate see? What of just year estate we're into pipeline. on is fund. this But from that's our I

that's seen was for that out. We class, getting just capital have to and demand reopen, get hard it for exchanged, as strong But we've asset to us. up really economy the pick starting

we're to have strong that look of confident lot as we're a at of the a year. remainder it, we from So lenses going

Jimmy Bhullar

one just buybacks. if more I Okay. on could ask Then

you you wanted more intend $X prorate half that and billion. to that, through just least that. obviously, do a think I at been if to first you've than the mentioned lot -- you doing I

and of So do? $X Or likelihood results billion are credit is minimum you fairly -- the of stable assuming the what's that that and to your sort to intend upside number a line?

Rodney Martin

said $X of Rod. you XX% XX%, that's market Jimmy, as a billion. And over well $X well well do in we And at of in first over least returned at What almost our look you're $XXX -- least cap. out, year single if shareholders it's this the year. the basis, to will we've billion familiar, you is we've as million point at half

record of what we we've the So the are have. confidence momentum we that -- second of year. billion. for that's very track proud in that of a got deliver got in we to we've to half back and we're about where the delivered good lot of me And the -- year lot We've $X.X-plus feel we'll a the

Operator

with Our next Piper John question comes from Barnidge Sandler.

John Barnidge

financing space. During And fund business you big income fees this closed renewable first for IM a fixed to its talk the how project business? Can XQ opportunity relative infrastructure this on be? could overall the new 'XX, about of

Rodney Martin

Christine?

Christine Hurtsellers

Sure, for John. Thanks question. the

did fund of absolutely product, first yes, our We debt really So an that's focused which right. close do renewable differentiated you're infra energy. a is on

So I next product the ESG think of offering. all-in-one infrastructure and

clients. So we're potential to going and very give the excited for about the it's the value fund

in would offering. going We're get did able into second to about what third on a I So close that And but quarter. we again, is with particular structure. working fees the differentiated themselves, to And our be this say we're close. really first credit longer this to specifically do a private know excited the not run

going than it's again, us fixed drive on insurance what's income we're So more your just X actually fund be clients. capital And excited, is mandate. normal other makes a efficient our to about that fees higher have to will creating thought meaningfully working for that going growth

another this going the So winner is in long again, just think reason be real a to for us run. why to

John Barnidge

traditionally probably it's seem in year. in it favorable? this Difficulty] to assuming is been the near of XX%., the VII XX% term first above Does [Technical Great. that half should persist, dynamic likely the

Rodney Martin

Mike?

Michael Smith

that so expect be a -- performance to result. But little effect. to XX%. to other the quarter performed quarters long outsized of of last we've question. as In higher potentially, the seen I the don't to drive of drive we have rate. strong, earnings or And a well, income as any where the alternative continues couple alternative the persistent for XX% that's don't that factors thanks John, tax because a range in that drive as going think even our will be alternatives clearly result

Operator

comes question Autonomous from next Research. with Erik Our Bass

Erik Bass

retirement, potential bit could and seeing you And outlook the deposits recovery we're a there seeing? hoping for recurring any upside about in the and given economic participant outlook for was to employer level? your the trends a talk you're is I

Rodney Martin

Heather?

Heather Lavallee

you, deposit that line growth on Thank by right our the Yes. we'll recurring Erik. year. a start X% X% much of basis targets saying I in with trailing the now, we're mean very XX-month for to

we employee improvement deposits year. contributions expect in seeing see nice double-digit increase recurring contributions. As growth we And you seeing and We're also participants commented, sequential throughout an contributing. the to employer in still our are in some

to for us, us is for now, improve come right are view expecting what going would from we're So I that that to driving conditions definitely really, it in is, overall, growth. helping our year. for we say deposit recurring And and benefiting macroeconomics just on the target our are macroeconomic

Erik Bass

consolidation it. large then there in Got And the another recently retirement market. transaction was

your So does your just all this is wondering on at the And all? at for views threshold views if changing adequate M&A? scale shift

Rodney Martin

on want piece Heather, do the you begin first? to scale

Heather Lavallee

Yes, happy to. Yes.

compete So several that in for and scale at provider, of X we it, has years top defined growth over past rate starters, all the X to And play outpaced contribution industry. if you look the organic we're in. to we're at the markets our

our purposeful inorganic our in across very and and think workplace winning offerings out out. retirement to Specifically, small we Voya comes suite of down it, innovation We competitive position the companies, And our to number see of the outcomes. decision around market, a when improving stands thing and the when commitment that you clients frankly, fine And of intermediaries. our drive about the and, market needed unique competitive the are resonating our during other tend in volumes consolidation, success. culture, to stand we're And a to have increase they when the not in that management growth our is this of this with for customer has activity We that Voya this in is business. see of health, around movement actually win consolidation, would industry wealth create say opportunities type type we strong and past. beneficiary I RFP us and investment to off-cycle been an really

compete organically position win target to markets today. our really line in And and grow to our and at is, so bottom are we scale like

Operator

next Our Krueger KBW. of comes from question with Ryan the line

Ryan Krueger

guided had you you feel When of to just to you're range you comment the everything that you if track year this year, can if that's EPS -- think fourth that? about on like the for quarter still $X.XX happened $X.XX this on things

Rodney Martin

Sure, Ryan. Mike?

Michael Smith

question. the for thanks Ryan,

but short, expect end on to the in we've an if around continue old would really we of or from, that of the away the low use normalized definition apples-to-apples you So in bottom which it the at just to range. would gone that be earnings, basis. keep of range We

is compensation normalized performance. one was alternative which think impacts that's there's of However, much impact the an away performance. difficult to the that pretty that is outsized entirely kind year by consider, I this of really driven alternative reasons important extract is very that the fully the And of it factor to includes outsized the we've gone from incentive of

It's to keep pretty So that I And away do and and to way that want towards to And because excess excess to to XXXX comp it think income, ways the range. in think beginning that position. fair to over the still mind in work important and of it, backing at I you also that in just $X.X in we is the increased been phenomenon, contributor actually it's if out, you will it about back put last thing it's it a us shareholders. temporary tend as goes to to of to be think enable top as terms beneficial as you XXXX. very meaningful of capital we'd look a back think incentive about billion the expense helpful starts and out, is a end out alternative is is are

to related -- So this but I money, the as it's it's year. comp also But single sustainable. effects we incentive especially it that, think, it's real out are not

we'll of think near we'd of I the in that incentive position a And as think good the range. end it top be ex be so comp,

Ryan Krueger

this helpful. right. And That's to make I really have sure just

like going next quarters run, per will So back single-digit like mid- the XXXX? to the ongoing of quarter higher incentive to in of couple it sense in normal before comp I sounds year in in high guess, maybe half the back

Michael Smith

that to as -- Think is That of about depending on share count, $X.XX. correct. $X.XX

Operator

with comes Partners. from next Lee Dowling Our & question Humphrey

Humphrey Lee

question first back have does point, leverage half My seems change of debt which it year? outlook to reduction the value book sizable quarter. moves is the this the related down bit for a your the quite the in come ratio, At given for to

Rodney Martin

Mike?

Michael Smith

thanks the for question. Humphrey,

outlook So the been pay repurchase first this down. million million, to $XXX our debt first a quarter for announced on of $XXX Life when to million has that and $XXX back the down goes debt -- payment $XX the the to transaction, with $XXX we related consistently million We made million. a in

balance, So movement planning I financial given that of for gain the the earnings, was strong in expect driven favorable the the the sale channel. on would leverage, and including by

As well driven interest markets. AOCI non-controlling well in as XX by as June equity of as as favorable movements the

I a us would it. the range below lower that, gives push more and It us So think, end flexibility. toward probably little even maybe that of

in we're So weeks. very dynamic Obviously, in coming situation. we'll how unfold the events a see

look and betting still meaningful But feel proceeding if things is we the certainly the mindful debt I good make the overall in think we -- the probably and where normally. be environment Voya. about third about on we'll quarter a of paydown progress are to of the economy trajectory

Humphrey Lee

[Audio Gap] health. to

I earnings about concerns cost the know year their business? in term? So is the of that maybe health earnings how and talked the call. pricing back broader see Stop topic medical the inflation we're inflation of half some But kind is strategy the your change new. you of rising into do has not inflation the XXXX of seeing, of on the Loss that the one affecting insurers it affecting medical Does near in outlook their given for costs your

Rodney Martin

Rob?

Robert Grubka

Thanks, Humphrey. Sure.

new point, how a just So in and it different Stop cycle those inflation reminder, a level stage is cost set in we're a business is of as this not Obviously, year. to that on different a business, a impact it's things. care Loss, every or around to your could going reprice To in medical thing. it

exactly growth, around Stop part has the in driven a inflation. big business balance past grown medical look our of As at dynamic the by we the why of is Loss this

for sometimes attention things got an basis, there's which reprice it. your and pay annual about to to, element again, that So of, come you it get just medical on an risk period just sure, -- a there's we a a continue assumptions of we the did resources the certainly back dynamic to reassess to reduces the right you get just over inflation of other into I'd cost that as And think pure go might time. point to

to close feel we're it just built is driver though. the products and that's close about managed big Another we and that this that drugs the of you of back are as that sort attention cost evolves to others, applied you as pay into pharmaceuticals be pointed pipeline actual paying future, are the in again, positioned of out, being may and how dynamic run, how to here to But the to to good we're come to just respond into that. We, coming get equally attention that. annual like

Operator

Credit with Our next question Kligerman comes Suisse. from Andrew

Andrew Kligerman

the So Solutions just to follow competitive the question about dynamics. Wealth up on

Prudential, showed a they think did I And I with transaction assets in under billion somewhere think Voya had they is trillion $X.X trillion, in the Empower $XXX when think $X.X the slide, administration. range. I

there So to exact acquire same in-house we question do solutions? peers get you might you the think want maybe same have bigger the bolt-ons just in too, and backdrop question going forward, want that Solutions. areas the seen with are We've that where And scale? even acquire do there Health maybe might to you

Rodney Martin

talked line of perspective, we're evaluating business and a what asked a We've looking start. previously I'll a when that adding book at about might of Andrew, question an business M&A about we from consider in. in

certainly So consider. that would is something that we

as X process, is the As the We've increasingly, is narrowed And finding Heather last over XXX,XXX talked and is then players. pointed the million RFP very choice great about made the And market parts choice to participants. the X that we've you're years. Heather out, is one Voya. of with fine efficient, about, added got we're in made. And very down X

of fully to But book the that a plan feel been, or through we exceed We organic, to based business? know, adding growth. consider we But jump year as organic free fully this Heather, and in. meet you would just on expect has So our would. plan

Heather Lavallee

and I'll add said. with a had things out pointed capabilities been market of But non-qual we to acquisition with have Prudential that what other very non-qual agree that scale, the couple a I the not also only the XXX% particularly think offer segment. what solutions business. at strong of look points when you capability. the enhanced to And at have across on already said, some I look we we And pointing been robust our you we

continued around have wellness. to financial our offerings We enhance

I think as the has positive a Rob and momentum. team our partnership lot that business and about seeing complement really our wonderful a product we're growing HSA health with of been

So scale to just play. not it's around me,

have expenses taking the appropriate business. our bring continuing invest action We been while down to to in

the to platform, clients participant, enhance taking intermediary continue and frankly, that, our and engagement, our our experience, our of partners. in of minds security things We really all the protocols are precedent

is competitive at to we out, rule are what we well do and wouldn't that. at can to the and need structure, think make we're scale a it we that cost again, our we very around much while compete focus and So capabilities sure positioned

Robert Grubka

sec. This is on just, Health Andrew, point to for I'll pivot into your Maybe Rob.

Just all we've line. top a But space, the great job us over few last tremendous comments back growing you have when in done made. years. Obviously, health been at the the look

a up we've it aggregate, against argue of could small. you us you been competitors look If number you and in different stack at

it. support just I'd capability, where choose I and out with that point service the think to on we product play what this is and solutions customer push goes

line forward bottom see line well. as our comments, move top We growth, record we'll into versus don't to outcomes. see to at continue ways been feel on what good and we and have And we more competing. we this I deliberate quarter, drive about a you really going again, bring that's ourselves results from this to future. trouble XX% to no Investor do of here The how do about work finding position and we Day, be what we And go opportunity the upside play, better on ultimately as as we will numbers. the Heather's look lot talk do differentiate on, capabilities

Operator

from comes Evercore. Tom next question with Gallagher Our

Tom Gallagher

it the Just year? are track it the at of by guess is from completed going? be still running the you fair? if do XQ stranded from like high, that I see sounds what you program. Where than a hearing question more this comp but have you they seem costs, on to corporate on cost to stranded largely I'm accrual expenses for look end bridge, it you, that's And

Rodney Martin

Mike?

Michael Smith

Tom, thanks the for question.

but it's speaking, a So service there's cost fees are our X first, components, transition also stranded stranded has the program arrangement coming right? broadly costs, that the First, the way.

coming what's is the through program those net so corporate And things. or line the corporate of

the of We alongside the care that, year. down by next necessarily generally be the the standard Along taken that. expect will come consistent of joined hip, be it kind the won't of end to with at TSAs way, but cost be they'll

end by the of fully neutralized. to So expect 'XX, we be

way. it of this the In think of corporate walk, terms

XX% at second loss in You've we got quarter. for came corporate in -- the

and differential improvement in other the a quarter a between then incentive $X of to be stranded couple And things, second you going X. of that costs largely net about got million. You've in gets there's another comp to third

So in to you add $XX million. dividend that the then $XX gets million. and the And you pref

$XX for -- corporate. million And as we're so then got why bracketing that's the you've $XX to million expectation

Tom Gallagher

or follow-up The question. cash conversion you're my flow XX% plus it's Okay. free is I think a XX% just that guiding to. And

utilization what years side? assets? you of the trending would Just done that left fully by see happens other Where NOLs? level? remind you're the on that of that depleting How driven And me how many much being at tax is when

Michael Smith

Yes, that. at X few maybe a and We years for to the least persist it's answer, expect years beyond right? pretty benefit a tax straightforward

so way little on high corporate of to from when kind that will and pretty businesses, all in netting this it's here. though, a I depend the got are Ultimately, say X. get the be where So we'll we hard on cash conversion. out our mix evolves we've there. debt how of be is and the business the about think costs, think to tax But really to including But benefit

time. would corporate when, reduce a the and over and to then fully tax bit it start you utilized, come if So the and get at in see benefit does time the

Operator

comes Our from of Fargo. Elyse Wells line next question with Greenspan the

Elyse Greenspan

My first question.

low million paydown guys you that below you alluded the that question, debt million earlier you at targeted. end an to low to response or fact had in of the actually to So end $XXX the be $XXX could that

the on ending to incremental relative be $X billion you're that could lower should -- we up how the if So plan debt down, pay year? and that for there expect buybacks then

Rodney Martin

Mike?

Michael Smith

the thanks again, and question. Well, Elyse, for

$X we least to billion and at it's remind, least. mean at Just

-- of don't the ceiling. kind So of it's please billion $X think as that a view -- as don't

the make use we available So pay go certainly, and would share potential that proceeds of our then downs think debt down, as for repurchases. about more

debt paying exact so create So us flexibility on the of it certainly bit other on for and timing together. less side. The does more hangs that a down all is

Elyse Greenspan

then there relative Okay. we in to pretty ratios targets when and trended terms for Great. have Solutions, And your of just the well the COVID. loss margins Health neutralize

Group Or things one-off we of ratios in think out? levels seen? that to of of XX% stay maybe a more XX% kind I kind normal bit the Stop anything Voluntary, of and just within within Loss should you reversion normalize to So that pointed you've Life little just then kind like and the expect

Rodney Martin

Rob?

Robert Grubka

COVID, be strong voluntary and from be from block. I expectations to forward as doing and impact Look, and We about well summarized quarter highlighted to and our we'll the relative transpire sure. Yes, how Elyse. COVID loss around appropriate. seen, think you the for see the there. What the said, me. we it more fourth Obviously, we'll views, specific perspective third you pretty moving ratio still those able is Thanks, think we've guidance without results a

out, it's peel of product that yet, it at, you dynamic of we call just sort looked that to fairway of so revert XQ. But to closely. monitor experience this Lots as of Loss for year. continue has middle the it really we'll guide us for far not but saw back we expect been you the Stop If we put regardless said that would been the emerge to going on, back seeing what good we'll of easy we're and to, to overall expected had again, the at keep and the in of continue feel seeing the is point you. to for this based the try year. just and the it hard really middle half time, we results it in that of book about on in we But to running the trend make the where fairway in we're

Operator

comes with Our from Mike Ward UBS. next question

Mike Ward

upwards I days, And necessarily competitors business thankfully. a credit as this or and about of your center similar quarter, But think their just question. expectations from basically a of one was is bit. with case the to you little very stress actually mix had guys portfolio stress I this maybe don't X investment their lowered these positive X they loss front migration ratings actually wondering of I kind tests. to

was wondering actual risk certain classes asset if credit ratings in portfolio? your where still are migration or I sectors there So see you

Rodney Martin

Mike, do to want you start?

Michael Smith

for you thank Mike, Sure. question. the

think than I undertone an have And what to that, of way described is. kind I anything could think that you create we're the of always stress a of of ability case see and forward. we kind migration things don't in portfolio levels here trying is put far change adverse we're think I as the normal don't mean. think what most We ahead. other to of go it where offsets simply also to off there's of from as path, manage look in but just from the But likely if we way, sort think estimate about ahead, meaningfully the an we I

could ago our a were expectation meaningful much or had economic could potentially change than ago, is then in that. direction additional it impact. see relative a not thinking you year to If been around So economics it's reverses, we some just be the we it activity ballpark we maybe larger of to potential shutdowns, And and pressure capital a where see that kind trying of there. think XXX X lockdowns, months

we allocations overall, I about anything feel that in a we or there's So think don't portfolio. be good read-through the of would differentiator. sort a the

Operator

would call like question-and-answer our remarks. concludes session. Rod any for the conference This back closing over to Martin I turn to

Rodney Martin

you. Thank

healthy Voya this value, performance safe. company and the Thank your Our and capital as to and our look focus and and excited positioned us, you you customers deliver business clients our well the success is purposeful that We're I you, our and remain our the institutions for hope Day and as success. we made growth updating people. and year. at about reflects agility Investor clear strong good later forward opportunities capabilities before as continued With expanding continued our solutions that well and the decisions a workplace our resilience to and on of day. and families we've

Operator

concluded. you today's now Thank attending presentation. The has conference for

disconnect. You may now

Voya Financial (VOYA) 6 Aug 212021 Q2 Earnings call transcript