Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to Voya Financial's Fourth Quarter and Full Year 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator instructions] After today's presentation, there will be an opportunities to ask questions. [Operator instructions] Please note, this event is being recorded.

I'd now like to turn the call over to Mike Katz, EVP of Finance. ahead. go Please

Michael Katz

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

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

also the more two; you in referring Federal this Securities reconciliations be I made refer call information. the may non-GAAP to Slide GAAP on and comments within website. of Turning contain our the our financial meaning for slide to We'll some of certain measures, to during forward-looking statements release today found press law. supplement financial available are

quarter improvements, analysts earnings the We do said, financial LDTI into impacts the improvements in guidance restated targeted financial in or supplement the accounting call. forward-looking presentation. supplement our That our include will which duration include plan XXXX. first our for we the quarter modelling first within build considerations The LDTI quarter to of targeted to with effect fourth restated XXXX XXXX impacts release the from long related

Joining take our Executive prepared and are our Templin, Rod me After Don Officer. Chief your will Chief questions. our Financial remarks, Officer; Heather Chairman; we on their the Executive call Lavallee, Martin,

the For Christine invited session, and Q&A we businesses, Workplace have Solutions. heads specifically, Rob our of also Hurtsellers, Grubka, Investment Management

Slide turn as like the I'd to let's three Heather. With over that, to to turn call

Heather Lavallee

also thank for deliver sharing to strategic over results decade. his we how our CEO to the by execute for I our financial as to shareholders. to like lead strong and as I'd team Rod and begin continue objectives morning. leadership management Good Voya's energized want past serve this I am on

capital-intensive and in deployed flow forefront for and strategic divested maximizes so a the work recent Thanks grown the revenues value in Voya company, across many and high capital has generating to our that years. free developments our We've of cash been businesses, in ROE shareholders. at by industry our performed manner Rod incredible

prospects, as enthusiastic the on we objectives of on of I'm its this careful stewardship management Voya shareholders the well strategic our over future. about and served so into and our execute have by guided that to shareholder continue set team same are we Voya's of principles and focus capital, expenses and growth. the financial years, and a Together, leadership profitable year skillful

for which And Today, in year, think past I principles most our macro has to those I reporting in have as back we were that just action. everything headwinds among we in team a see year financial results the are accomplished strong the faced. difficult

We Voya positioned we transactions years Across and out our for throughout our to M&A execute. every business, in XXXX resiliency have ahead. strong carried ability that growth proven transformative the have

of acquisition AllianzGI's U.S. Our

is diversification scale delivering results. to has and outstanding business Management Investment Management added financial Asset already and Voya

we acquisitions, And workplace adding part need business highly two strategic just months ago. at out these that XX inorganic we notable provides Through our our on strategy. that carried we Investor closed just recently the capabilities signaled fully a capitalize acquisition to we significant of moves in the have Benefitfocus, Day

Voya's are have have achievement acquired, focused of We to on deliver the strategic execute goals and on these integration the businesses of enabled continuing and driving we growth. transactions continued

say Before like a I'd the I ask words. year from to cover our XXXX, key full and Rod? quarter themes few to Rod

Rod Martin

Voya, our is at our call Thank and Today's special earlier this first month. me CEO transition for as Heather. following everyone successful you, it's

Directors. full company, entire a my we as As with Board our confidence support publicly CEO a traded Voya's next do decade and of a complete so have the management team approach we that and of

foundation of continue six months has will demonstrated chapter to of our Heather's support our one. Voya's Under that management strong Heather began we success. ago. CEO proven the leadership, exciting Voya Since our team, is transition build next with an upon

for greater at is positioned at well commitments Investor the even shareholders. Voya to our and create our Voya impact positively our enabled thank to communities on company and to customers, live Day, for I customers and and which to of lives clients, our value contribute everyone commitment that want to dedication the Building we in personally last has clients the work. the employees and

will outstanding our As and team. continue Executive support Chairman, Voya and management I to CEO serve

it With back will over turn to I that, Heather.

Heather Lavallee

Rod. you, Thank

starting themes, in Let's move year. the to both growth and some X EPS with full Slide quarter with strong key our

to growth year, full annual the adjusted well of grew XX% XX%. we EPS target operating above our For by XX%,

EPS our initiatives. management strong growth, margin Voya's of expansion growth continued execution capital revenue net Our reflects and

In net commercial growth, momentum revenue terms across continued businesses. of our

over we For recurring deposits Solutions, XX%. grew full service Wealth

billion, In performance of Health acquired Investment a the we reflecting, global nearly during last XX% contributed asset over the annualized net the million generated despite of $X Management, managers. year-over-year. $XXX strong approximately Solutions, particular, premiums net year quarter investors grew challenging full Allianz's flows for This business in in-force July. from of inflows In we backdrop to fourth

common results In $XXX respect on excess capital shares, dividends. of repurchase share with $X.X and will million extinguish our a to moments, the capital billion approximately With few to year management, performance. debt and more stock Don we after concluded pay deploying

we Benefitfocus market the and remain to having second last share And of conditions in assuming expect resume constructive. completed XXXX quarter acquisitions of our repurchases month,

elimination growth margins, and In stranded costs prior on to with has ahead capital XXXX. divestitures schedule successful of our revenue associated which deployment, net we have also of focused all in included addition remained

we despite Underlying is continued of environment. controlling headwinds control of our macro execution the year the this results commitment our the what to plans, our can

global we X. net only acquisition, Slide and this asset transforming flows. to Voya benefits across a Through clients of positive diversified provider significantly global investment classes this business, Management completed numerous our are management acquisition, Investment investors asset management months earnings markets. into have We ago, solutions strong we and attractive from Allianz's our and seeing already asset significant with transaction six including to turn Let's

billion management, the as under Canada. strategies assets in with access added well considerable The to transaction investment our and as distribute to footprint extensive also U.S. global scale new to AllianzGI's outside business $XX our of

to turn X. Slide Let's

of also Benefitfocus platform, our workplace Benefitfocus our benefits workplace marketplace. connecting savings that helps a and core meet can in to benefit benefits solutions among Benefitfocus their one of strategic us With We achieve a objectives: increasing spend. the acquisition month. for savings employers manner workplace completed health Voya last unique the demand and optimize

complicated and Voya to a for experience employees circumstances, simplify superior the important, of is for providing meet too an needs process as select allows often the and to overly right Just user benefits package to unique acquisition their customers. our clients what

capital-light, recurring revenues, positioning grow to to benefits us adds highly connected it standpoint, the longer well while health into over the financial fee-based a workplace. From markets term attractive at

EBITDA generate XXXX, $XX expense expect of For approximately the we synergies. business million including to

recognized on this slide. Slide we quarter, Board, the and focus the Once These Voya honors diversity reflected our been we team developed Voya. to decade our management that the have prestigious and differentiate those is again, culture speak and our in culture by have Turning organizations, our past and strength on the workforce. X; to to including during of our noted this continues several of character brand externally our

in attributable directly consistently have ambitious we the the we set. worked partnership goals XX transformation our to is executed years who have people achieve to over The past have

years. the of that differentiators Voya's powerful many the strength this legacy Voya culture, As and built preserving I CEO, and protect over will has develop continue to

will Looking stand help forward, the us our culture marketplace. continue in to apart

team, moment Before I'm experience of great him over stakeholders from confident pass part I him a I'm as I'd excited benefit and his Don, to knowledge. have like management to our it to take all to Voya. our that of and welcome to will

We financial are Don? advance to him looking strategy our with plans. working as forward closely we and

Don Templin

you, Thank Heather.

look first all call excited join as management I to CFO. Let value. value established I'm and to long-term a track am from team my accelerate record growth this with execution. me team how begin earnings recently of on to opportunities, our acquired drive forward saying by with join organic shareholder delighted working maximize an assets high-caliber to you I incredibly

quarter share full $X.XX $X.XX Slide notable This in turn operating $X.XX delivered and our on year. per the for the to We Let's items earnings $X.XX and quarter year. the results the full of XX. for fourth for totaling adjusted included

operating by the year XX% and to year-over-year XX% $X.XX $X.XX. for full these for Excluding by grew adjusted share per quarter items, to fourth the earnings

driven partly offset by was spread Health. revenue the and of growth Investment by higher was investment Wealth Organic in markets This in results on and Management. equity underwriting in impact Wealth strong revenues fee

excess over was respectively. impacts above capital to perspective, to primarily is Fourth net reinsurance. million quarter businesses generated in XXXX. XXXX exited $XXX and through an From GAAP This net related full the noncash we we $XXX year and income $XXX due meaningfully million income, million,

economic changing enable revenue streams diverse Our to strong through results and exemplify effectively us navigate rapidly businesses complementary how landscapes.

Slide million strong and year earnings We $XXX year $XXX adjusted of earnings Moving full full million. quarter results. and to Wealth Solutions the delivered in XX. operating of generated fourth quarter fourth

net year ex revenues X% line target. X%, notables grew in with approximately X% our to Full

continued average on Our lower equity margins. impact to fee-based markets rates. revenues This offset benefit higher the of more from than spread-based interest our

income First to be in is with XXXX. quarter quarter fourth expected investment spread line

increased While be rates. we offset rate higher the will by expect to crediting environment, benefit this from

XX.X%, through adjusted this XX% year highlighting ability macro manage our target to range cycles. XX%, margin was exceeded operating Full our of challenging to

$XXX expectation. with Turning a Service XX% reflecting grew consistent Service. basis, seventh recurring to XX% billion, deposits in This were of quarter, Full Full marking to strong over and Full of sales on net favorable positive nearly million retention. of Service in net flows the growth Full inflows flows. contributed to Service consecutive year $X XX-month deposits trailing XX% year record and planned a flows our the

net approximately in the million Finally, outflows recordkeeping were quarter. $XXX

XXXX service by net favorable pipeline. expect Looking continue, we a a healthy keeping ahead, full cash record flows to and in supported trend

earnings fourth Turning Adjusted year XX% marketplace XX% to results, margins and revenue our million grew of solid We the and range. demonstrating quarter full and on million. Health delivered generated Solutions earnings adjusted earnings discipline. year XX. of were in target to and operating pricing $XXX strong operating operating demand within Slide full $XX growth, quarter fourth

and net to all grew Annualized expectation. to underwriting in-force product year-over-year, grew XX% premiums ex notables revenues lines. close growth our Full across XX% favorable X% XX% nearly year-over-year net year reflecting results exceeding premium

favorable were XX% than to during aggregate XX-month stop life. non-COVID claims loss We basis. saw primarily XX% on growth mortality in the due elevated in XX% trailing development to loss a was offset more all voluntary. quarter, products, range, within within XX% than including growth ratios our targeted This Total group which better

momentum and ability diversity the mix benefits targets. sales our gives strategy successful our us workplace revenue renewal of deliver growth in to A the on our and from executing confidence our season, savings and

and quarter management the adjusted from AllianzGI platform benefits year Moving strength of transaction. and diversity excluding earnings noncontrolling full to generated in attributable the and operating fourth results fourth million the to our reflect interest the investment and We AllianzGI. full quarter of XX; year Slide $XX earnings million, $XXX of

Full additional prior year net over XX.X%. than revenues macro as AllianzGI equity over on income year headwinds ex the fixed basis improved the XXX revenues notables from year year-over-year operating both fees. adjusted Full and impact XX% margins to grew of points offset more

improve it retail XXX to This in will by We franchise, another private alternative at assets our and driven expanding continued expect growing least points be and basis XXXX. discipline. expense

investment performance. Turning to

X-year differentiator. by performance a in and and fixed on XXX% key a the funds challenging X- XXXX, our While income fixed markets XX-year of impacted were basis outperformed our income is

year was flows. in We full our this and years and net quarter is It $X marks achieved year income significant inflows consecutive XXXX. in this of and of fourth flows positive markets global over highlighting business. the billion to worth positive seven for fixed a $XXX for headwinds that across equity Turning million of generated the

industry, of from reflecting result net the Our primarily demand our from outflows channel, strategies the strength for our flow distinguished the contribution is private the seen positive and insurance AllianzGI. across

excited our into are XXXX. going momentum We about

continue and and build for We with private expect performance investment expand the on to delivering strong our AllianzGI, our long-term clients. successes alternatives platform

Slide XX. to Turning

million. year-end Our was $XXX excess capital approximately

line of generated once million During excess strong XXXX, generation from cash cash We results. over $XXX flow was adjusted capital operating in target. XX% our free with our again conversion to XXX%

well and repurchases, share extinguishment across deployed above of the ending XXX% year $X.X target. RBC We capital over Our common stock our XXX% was ratio billion dividends. and debt

assuming we macro to XXXX, ahead, constructive. of share remain repurchase Looking resume activity the expect in conditions second quarter

approach is With leverage, is cycles that and plan resilient more LDTI. market rating to This a metric across and most with utilize AOCI. we are respect agencies the new post taking excludes consistent to

range range a expect Going leverage time, XX%. be forward, to to to target our ratio Over manage within flexibility. will the to end ongoing lower of of XX% provide we that

attractive well-diversified our confident and to Our and balance through-the-cycle, will sheet strong, deliver position continue that risk-adjusted returns. capital investment we is portfolio are

Turning execution to strong results Slide XX; our build upon XXXX record. our financial track

Investor of are plan, and year EPS we X-year ahead expectations. X Day our growth are We our into

XX% With XXXX, path range. XXXX to growth Benefitfocus, at Looking base. we to And EPS this EPS XX% least expect a we higher our is a ahead to off see EPS growth. XX% notably,

and In earnings fixed in summary, execution equity were challenging our year benefit highlighting our fourth strong, our the strength businesses. and full quarter the income given particularly of markets, diversified

the are and our assets, workplace We from full on strategy. value while focused and integrating driving maximizing recently acquired investment our

We delivering balanced on which and are and capital. into will continue to focused our customer also shareholder should exceptional value value, disciplined be translate around we

I back that to the your call questions. we can that, will turn so With the take operator

Operator

the with first line Please your Our questions. come Instructions] Ryan proceed questions from [Operator KBW. of with Krueger

Ryan Krueger

AGI well as enhanced opportunity distribution we some provide on you -- 'XX? into additional the investment the as as Could pipeline move flows from the to for management color

Heather Lavallee

Ryan, will this morning, good Heather. take it's Christine your question Yes, morning.

Christine Hurtsellers

morning. Yes. Good

So about the we we Listen, in of flows we you how the which year. results of -- quite 'XX, a strength proud saw, challenging think forward? going had as business to are is

And so strength well to into with leap are up we XXXX. set really

represented strategies. we're overall are, So in many levels And where interest example, we by flows, retail last just as strong income, right? given what increasing year in an diverse, shoots headwinds green were and fixed yields of see in very a pipeline seeing

Globally, quite they're attractive.

And And thinking and near one, funds yields platform. we you new to year fixed expect about distribution and partnership there's that term, to demand given long -- strong income, to about partnership going off be think our global two ways. going we leveraging so with Number four Allianz are launch term where are. for our Allianz launch in when their UCITS this

of [ph] that that two as teams the in earlier AfavoyaIM the strategy. year off Two, well acquired are new we as,

specifically, the investment product really income-related there partnership, that's for ways demand. -- assets to were high-growth about you strong demand strength are Asia area the when of the many So leverage the in think

quarters the business, of the overall, distribution we strategic the optimistic year So and partnership, ahead. very as for transformational I'm and in into terms excited go

Ryan Krueger

operating a And terms as guidance Great. million EBITDA should about actually of then through how it GAAP we income? Benefitfocus. come quick just think in the would How $XX one on

Heather Lavallee

Ryan, Don, take I'll your question.

Don Templin

Sure, Ryan.

that range earnings. operating the $XX of what deduct us gets historical So of $XX EBITDA, into of million-or-so that we if -- have million depreciation the sort was a we of from of and amortization pretax Benefitfocus,

of expect So of for purposes note of in somewhere are million. that to our EBITDA modeling, different. that's of what $XX use I might EBITDA is we range the would definition and their definition

compensation, theirs So the stock-based this number not. compensation, our -- burden of did includes stock-based

around we've some and million roughly million So EBITDA operating had of pretax earnings. questions $XX that. $XX of But

Heather Lavallee

if Ryan, maybe, follow-on to add just that. it's a And can Heather, as I

from strategy. and While we benefit how for about benefits acquired talk long-term Benefitfocus, financial the our we about it really and thinking really wealth accelerates this health the

established own for as accelerating wealth spend. is this well with we've an put partner churn It helping margins. to business ratios really acquired. me map, our overall the gets overall tool their behind can puts And rates, this the into center their employers operating to and close optimize is health excited so us we benefit customer in to what right RFP, experience property experience, bringing guidance established of client Voya with and road improve our muscle close that as I'll And at the helping an

the and for real 'XX, this benefits shareholders. term value and certainly excited is drive how in there help while we're long our So significant most ultimately shareholder about financial will and growth

Operator

Wells Fargo. your with Elyse Our questions. come line next of the Please Greenspan questions from with proceed

Elyse Greenspan

your XX% buying buyback? to debt of still management of the side quarters the three shares, you have question, back during you what buyback And would first on think we a target should return year? about shareholders of My think about as being going want do the back you about guys to we last to

Heather Lavallee

Good your Sure. will Don morning, question. take Elyse.

Don Templin

Elyse. Sure,

capital and in are indicated, As Heather return we quarter. to are of committed share -- repurchase to back as returning the second we

with the impact items including of respect of what that think macro in number the there's that, pacing pacing, environment. a I happens to

repurchase, constructive indicated we back a go expected we outlook. share that into assuming to So

that to impact excess that see causes to don't to occur, ability capital our then We anything return the shareholders. generate believe that but obviously it will that, won't and us

With metric, to are to different we respect we range. leverage of that using end the and a if higher the call you leverage are going on we a noted leverage, revised be metric, that will, sort the in of

be And So some flexibility. XXXX, to down leverage I some during that the would ratio capability we was XX%, that range so buy excluding we will AOCI. that or XX% do managing ourselves anticipate

of what influenced returning capabilities. two items, be we generation of including cash the by number we committed in will quarters. are next So are confident a But very It to over our capital. happens sort

confident some very in are that are the and we forecast We we'll comfortable point be you, shareholders. returning very time we back presented and so to in the to capital that at market in

Elyse Greenspan

question. second think rate the my of you us Within you rates line? environment. bottom higher falling how tailwinds crediting that rising about should through credited the guys then And interest to back versus customers much of rates? to of benefit some Can the And offsetting rising from longer-term talked Wealth, the be help

Heather Lavallee

your question, the Rob for questions. thanks will Yes, take Elyse.

Rob Grubka

Yes.

in we fourth spread Don how be best think our said of As view it much in with question I'd his we expect as saw about to the about the in rate There's we sit of consistent and Elyse, in as was comments, just that's a guided think of here should quarter, quarter. perspective element like, well, it? how It's today. we quarter. the step from There quarter. first some So more increase to we of that we the and credited that back happen occurred that

been good on, to the retention time rates that to need the business. a has balance And do Credit are decisions very and always that part story make. marches calculus out need balance and we're then of that, for as what we to trying look, we of

spread, striking to it thoughtful not looking twists way me looking also we to the give to we're an forward isolation, going it you, I balanced, but not it. maybe to some answer really in to but and in turns as do the you in at of for move we're alluding is environment balance can going only and So side that have tell the right all business the cleanest at a fee

again, But the right about and think sorts forward. few as adapt years, we've agile if to disciplined gotten look those I you being back over striking move last we balances of

Operator

Our next questions come from Research. the line Autonomous with Erik Bass of

Erik Bass

Maybe first to and The seems still from for XXXX. rates, it to XX% came the target on your Wealth. the like a interest stay nice return Wealth year range you're guiding in there's margins range higher margins to target to in last tailwind but above business XX% in

in So any kind of way margin rate given special reason I near the a was recover wondering elevated equity can't just of term, there is remain as the uplift well? the in markets

Heather Lavallee

Yes, Rob good will it. question. for your take morning, Erik. Thanks

Rob Grubka

sure. Yes,

we that at about in assumptions and rates material in I again, fees answer, it expect we in the the be So I to modeling environment call think and macro your also the around think specifics margin it's won't my least. just a to repetitive have out, when overly from LDTI, benefit and

the potentially on our margin that Does yes, on pricing We're plays to market Erik? all that we're growing that those or of in guide smart we balanced being perspective doing we've includes given to at about way come XX, But make be the decisions a end into of XX from expenses out. how and play. the a would think disciplined going factors high business, to depending good itself help, over the about that it going

Erik Bass

about a the XXX believe don't talked think similar XX% question points the indicated Investment up Yes. or specific for as XXXX, I below the we somewhat Don be you And previously. a I to then you Management little goals think bit margin maybe range XX% which a more, target for gave trajectory. should about but be to basis

So I'm factors. that's assuming just market

Management you viewing talk forward? margin about for going trajectory how Investment So maybe if could the you're

Christine Hurtsellers

Erik. Yes,

that But As assumptions a think when year on term based though, you this is as to X%-plus we our what market modeling, markets our sort ahead. expect as see you fully Don the continue a near definitely influence, disclosed as margin far opportunity And margin. will of have great of said, be operating going say, the right? there's we lot to an expansion strategically, to drives grow in

growing good operator and we've any So on sure as being pipeline it acquired making we've the feeding we've and to to seen all listen, with as very going initiatives, And as expense but goes and what far do as been focused fundamental demonstrated again, to teams. strength leverage operating we're to and synergies that of able well back management on very as continue the scale we're the strategic expense well good be disciplined. our as,

So lot to market I a of a operating challenges. levers some expansion margin deliver path, see of lot despite potentially

Operator

next Our come Gallagher Evercore. the questions Tom with line of from

Tom Gallagher

thinking on just accretion repo? first was on a question I how Just number. share understand cash of the the a about PE is shortsighted, I But want I too GAAP recognize, giving numbers the you're like you're think, Based that versus be XXx. out, -- something Benefitfocus flow don't to accretion but

multiple. an of you looks like is approximation at your looking EBIT single-digit flow, assuming when that's even stock stil number, paid it but high cash your -- And XXx over

would So just curious reconcile how that? you

Heather Lavallee

Tom. will Thanks, take Don question. your

Don Templin

Yes.

accretion make to be strategy and base to it compared from be at Tom, plan. think one, that needed have the on of impactful had strategic strategic our be So sort the assessing back and to really that perspective, to that had what's of Benefitfocus guiding we time a acquisition also that reflect on accretive, to were I important -- was, considering were we we but was focused to principle were it importance the it

it conservative and relation given about at in if to were share macro the repurchase significant there extinguishment. uncertainty that some the I time, was you debt our and was and fairly some conservative, The plan future. particularly macro So headwinds recall, think plan base environment, base

similar at operating one deal the that contemplated model guided a an number was earnings believe EBITDA sort the a result, economics to the that to of contemplated we guided we've time plan. to. had very consistent deal that pretax similar that very base the that to. number as are It one And with the that we we So that's original

Tom Gallagher

a about a you. value years just lessons can from shareholder little you Don, Can from think creation for the bit spent Voya any that talk new follow-up Okay. you perspective? learned applied your Marathon be role a to at

Don Templin

Yes, Tom, that really I appreciate question.

came I about Voya, there got me people. when excited to So was probably three things was really One the that Voya.

Secondly that in courage had to the company trying the was evolve the company. exhibited

it about what company undertake. like think time looks you change of a of So took significant and a now, what to the lot leadership a the and was that's courage and at lot of IPO the

about about the from I'm more very at of role a of cash Voya, was optimistic here I XX-plus my than I sort I into so upside and at an days board. both actually now then EPS was on time excited generation the it And capability When that Voya, perspective. I look came

XXXX, in very that really can they good that. team and really really, operate the environment the an dynamically And The chemistry in demonstrated the prior the where order very team. I of an have nimbleness great to and need team you Marathon be need nimble, my leadership the days, from chemistry among think in Petroleum example, has And macro I to think management change you are as quickly. at to

and to would could Day, the we was what what Investor never The you at beginning at like what was and talked about was delivered the that XXXX plan have been above have year. of guided predicted

leadership something MPC, that the thing of not execution I've but second really excited about has was that was divest done important and to it here, is businesses, at noted, me easy yourself really The was that I'm the also muscle, effectively. to and they've team

but It to effectively. costs is take the that easy business, of significant they've done out not

we months, over themselves so positive to at And companies. about that really AGI really the I'm and having or saw about really not MPC the Benefitfocus. after opportunities as by heartened at owning integrate days that present I that. assets for have I'm I'm relationship excited And It's that my in momentum just excited really easy those six with well.

at to management I MPC, here, that discipline shareholders. to carryover capital management world appropriate also and learned that a is in dynamic, team that that I then And is investors committed that a expect what to is a is think team is committed returning an

and returned to over I at of billions team MPC of IPO. has management $X We believe, $X.X here since to the the shareholders dollars the billion, billion returned, time shareholders

it things I So bit a the MPC was around that some you some explanation, and so long-winded of came here, why but of at a hopefully, Voya. here I'm perspective I excited future gave the at learned why about

Operator

questions with the next line from come Suisse. Our Andrew Kligerman of Credit

Andrew Kligerman

capital. probably you're forward? I'm $XXX of for have a how million thinking capital you get about feel I trying excess to your general acquisition, going So as estimate around Benefitfocus post

work not those Voya peers? on along stock the why given And get is buyback same relative how to wondering M&A. earlier I'm to So cheap lines,

forward? And material about two M&A last year? you acquisitions done how You've thinking going are

Heather Lavallee

I going the for capital, start the question. I'm the one. I'll this on Andrew, team thanks let on finish M&A question. to and Yes, are Don It's tag to him Heather. and going

Don Templin

would pause to transaction we were the we and the and pretty share the quarter. think the I share first announced have Benefitfocus Andrew, we entered been Yes, quarter for into going when the going repurchases the that that fourth transaction clear to we for with repurchases were pause

XXXX. We obviously a delivered very very, strong

we first in commitment And capital that's capability, why to, capital that Our would returning generation very in capital very capability so I optimistic begin we in We're the generation think, position. the make our about quarter. strong is able cash quarter. the were second a firmly and

bit our the shares first repurchase little And on managing also pacing quarter, of we really to balance a that leverage capital. I committed going the depend said, of we're return returning will I sure appropriately actual think our cash in with happens we're and ratio. to the generation but to are what or making as economically that

Heather Lavallee

if there. from Andrew, And I it pick up Yes. can

to returned go the back referenced to, since $X.X we've billion If billion, capital a public shareholders you company. $X.X just Don we've been of

XXXX million $X.X and If billion look in fact capital of you at the just deployed we share $XXX buybacks. that alone,

a to that's a revenue we think I expansion. important EPS really addition margin growth our to strong is capital for going certainly, as in lever result us continue management increase to be and to to and forward be able go

I'll kind at question that Day. of your XXXX talked we specifically add to and to our just Investor Don's So back around to about what on but point, to M&A, go

it's it's of we've want And we've opportunistic has been, been and strategic, approached got very approach very in always we've be we our always got how -- to be said to selective. it M&A to very, additive, terms

and want of -- and best we do to of end So something in both interest the customers the is that the day, at shareholders.

talked experiences alternatives. said privates Investor in about We there when we capabilities at management, So were and customer then improving talked adding technology really and in in we workplace, three to and talked needed talked that distribution about about we fill. that also at and we outcomes and data-oriented growth XXXX, investment we capabilities international expanding Day the

our to that able just that be we've say We achieved we grow. integration, the if then at And capabilities we 'XX scale, look the what comments have acquisitions got words: have we and need hopefully, on have the that done we at this execution. closed, clear recently we believe with we've point, you announced on I'll our were -- in all M&A. X so And we executed to focus is,

the advantage X growth then on Benefitfocus really of plan. revenue including Day execution year the increasing shareholder see of driving full as Investor and we Asset well Integration AGI, executed and in and year is we're Management and our X. value Czech taking We've as

demonstrated by year XXXX think I results. full it's our

and down heads got so management. also our XXXX, includes that And for capital we've

And shareholders to continue is, we interest going -- best me forward, think the customers. for always be accelerate invest as will in strategy going organically of initiatives whether final and on that we're comment it's both inorganically, maybe M&A our to in that the and long-term or

of greater we're about So gives hopefully, thinking you how that little a context M&A.

Andrew Kligerman

pay taxes putting going would appreciated. in could And a with minimum ask having And of if technical Yes. quick Very that on that affect Heather. Voya helpful, tax, Act Inflation the forward? color to question any be Reduction terms just I does forth a corporate

Heather Lavallee

Don? Andrew. Thanks, Yes.

Don Templin

Yes.

consideration there's to that At taxes. significant had there's So that point be in that in tax minimum XXXX anticipate we whether that we of gains gets I terms into not for time, determining do alternative purposes evaluated I that the -- act. this paying think But we're we some evaluating payer. how some the clarified of being need be that the of provisions will that fall mean and category around in act. you

Operator

of with Piper next the questions Barnidge Our from John come line Sandler.

John Barnidge

strong across How distribution loss? Heather Rob quarter . enhances as to about talk look Can products. on early experience for Health and you Congrats there? the the a Solutions had then Benefitfocus maybe stop and well. this, an

Heather Lavallee

take will your John. questions. Rob Thanks,

Rob Grubka

John. Thanks, of Yes, so couple Great. a Yes. things.

towards As our . be is full XQ obviously, driver we year. first you quarter, guide about we historically, going look to how of always business, just a real the think

in of with, to, I talking what approach out, part business, we're out and starting partner Part we branching who say diversity how we've that more stop when on do talk our where what market quarter, on, towards we helps partner dramatic in bit, with who them. to of of sort not fourth diversification losses lend create particular but are distribution broaden started a saw different size would to we just things the of full is in some focus the of those talk we year, which do to while though up them. this with the about also the we total we a

And think get in sort cases going setting start more up is approach, our of getting business doing we up, talked as and about and we're conversations, a cycle. historically necessitates what into and through-the-year different XXX to upmarket which also you away middle lives from

us view access anything I earned, brought wouldn't us us executing throughout of gives net-net, in we've So more there. a right to years of of number the over that's of now, a think, bit surprising really opportunities sort strongly thinking by about just I It's year. outcome reputation a credibility a and an the market

of the are busy stuff? this market? now. To sell we're busy when look, right to do in you When question, And early Benefitfocus point again, you They're days. in

on and do distracting I we're on. them so team a integration focused what deliver need need and they think from really to management they not perspective, from what to an And

tons it comments a solution from market, of the see bit to in we already perspective, excited deliver though, in forward, really integrated about we what how Benefitfocus opportunity. about more it a move alluded We're we As her Heather a deliver do little in we way. that.

Our in increase distribution. strength their strength in broker should distribution broker

we we to about pick into disciplined all customer shareholder. the but growth spirit and in it's what I days, the driving and it about I the how of early We'll the lean again, be see. pace So for right time we're and opportunity, think in value excited think

I'm I feel 'XX, look step And where on from every we to end the the a want. just that nuanced. retention back as the on front good say, like walk don't stop-loss, would as do we're the a right results and we feel the we it. side that's win story, bit business right. the stuff then about Obviously, we're we willing away for both the is at. year little bit pricing different and of had business And little well

our as where back guide guide targets at again, Day come we'll are look still quarter still about we in Day talk in dust the targets. as in Investor our things settles, So Investor to first

on a in So we're going book business growing laser-focused continue the to way. to disciplined be of

Operator

come line Sachs. with Our next the questions from Alex Goldman of Scott

Alex Scott

First was one recordkeeping. all you I for had on

'XX? if as of pipeline an expect a didn't And for was you've to quarters, we recordkeeping. that's there? quarter, if lot see should the but the I half first wanted there about we that something to wanted recent understand we optimistically this see somewhat update through mean in through think just talked think I whole coming I

Heather Lavallee

Yes. question. Rob Thanks, will your Alex. take

Rob Grubka

Yes, sure.

think So It's All the standard things it's those answer still record-keeping, episodic. apply. look lumpy. I

good feeling inevitably just the in Heather XX I creates Charlie it opportunities. last gone about seeing, and have months, talked think over the market we're things just that and as M&A about have the and the that on XX, the of cases volume activity we're

So good after. I being think go We're we the to the with way size a strength market story business. of seeing and it, stuff it's position the business, don't, on consistency recognizing piece not And and across a of book disciplined we it but segments, balanced the is a in the intact, that that we're that right? It's again, episodic. is the going we want of things to this drive in be only growth really

And the again, a quarter mean perspective assets here net flow down participants a see have. where from go you doesn't

so you undercurrent growth, the what you on what that revenue participant you, And but hood drives also we've we and the with we're happy there, is been front. show we under what of when show get seeing

Alex Scott

it. Got

Second on in million. I XXXX. for little to the you're growth $XXX about $XXX over think million we had capital one guiding it know on I for and conversion think you what generation. to that sort triangulates the cash of through you're talked EPS is a excess all closer you XXXX something to expecting, When I

And gap I understand that $XXX that is anything held the Like And think that back this right? just bit to we year-over-year? was how maybe year? sort there a do wanted bridging of, million about little

Don Templin

is this Don. Alex, Yes,

can XXXX get with into start we and then maybe me Let XXXX.

this $XXX So that cash year. million we or we of over generation indicated generated capital

$XXX $XXX think adjusted I they million the range. were So our operating if in guess, about were earnings, million. you they

was And included unlocking in then there, in related Wealth. to there,

earlier we the the by to, million say, in credit benefit XX% the in $XXX you XXX%, multiply get that quarter, XX% health talked foreign to have that fourth $XXX then tax gets that related earlier I'll if million the then over that year, into happened you in $XXX a happened year the about that, million $XXX yourself the So we to and the million-ish you XXX tax that conversion, -- and deduct range. the reserve release benefit, you from

a would Obviously, been we that we I'm that come in in and things that be from in broadly, ratio and deliver conversion I the things XXXX. So able can walk XXXX. out. past, will to in the that's similar there that But would expect have we've future. come deliver the that confident that

Operator

questions of with come line from Bhullar final Jimmy Our the JPMorgan.

Jimmy Bhullar

move But Most on interest just rates beyond competition the answered. stable as were and also XQ don't your to you in up think of should being questions further, just spreads XQ. Assuming my outlook flat assume you're any XQ from about should going How XXXX? point your spreads? spreads we for on market through fairly

Rob Grubka

in and and Yes, what the point, see it, of ball if portfolio follow to goes I about at sort to look, the I'll alluded on But doing, know want market. we the look, don't balanced as I spread we're hit macro view others talk all. rates where then is to more of how and Jimmy, competition before, going the it be

on has be easy it's to the short the may quickly how moved is around long the how word yield trading, versus be the it Given so put around going end it. curve to end dynamic,

we're what calls But look, obviously right in find putting make selling the we're those and book, we get paid to what try our balance hard to between influences seeing things, and on on the and a reinvestment figuring right crediting the what gross is strike take balance playing out out perspective on going it's the then side. rate itself from and to pushing to how

in to data-driven purpose business not both market win also and what to be but here, seeing compete we're in we'll that much I'm and very portfolio on on balance. seeing the because good strike So overly being what specific continue we're retain to

Christine Hurtsellers

is Christine. Jimmy, this Yes. And

from little a how think the add and from a of macro to more standpoint. Just context yield bit about investable on that portfolio too to the

the So given the sort interest existing our or credit opportunities, rates, or in-house, portfolio you money yield. are above is new where will, if and rate of investment spreads

look Plus, be that maturities, when we year the at are will rolling out below. over things off

think still tailwind that I are a company. for standpoint from that So overall the interest rates

Jimmy Bhullar

assume is given your you the most due be to coming of maybe the activity on could normal due? in buyback stock? structure And eliminate a should those the to ownership then warrants, And of few that they're much do are months, just there's going warrants we not before Okay.

Don Templin

Yes.

economic We have May. early I to we've think and in of hadn't do on been to date, expire so. previous obviously we I those, it open they Jimmy, to think extinguishment that But calls. mentioned So been early

normal of if So do and have consider we it. it let or that we will it's in economic, expire would unwind. them Otherwise, doing course kind

to obviously, because position, our warrant for situation, -- investors. sort will looking there's relatively that period we much when we a when we're a a obviously and which good should get large to post normal that guess, and for ends, more forward of short trading be back I or think

Operator

I for closing This Heather to now Lavallee call concludes any back our Thank question-and-answer would you. session. remarks. the turn to over like conference

Heather Lavallee

achievements our team reflect principles the strength have leadership our attention and success. continued focus, of long that the Our core Voya's to throughout XXXX strategic guided our

on of our a transformation, critical as execution we goals year see strategic objectives. was of a While growth and our integrations, XXXX on our . XXXX year on

Day customers, forward we remain needs the drive of of achievement continue to at day. our will We good of to Thank the help and on centered that we Investor our XXXX. objectives look updating shared manner, in will on this which all In you progress. you,

Operator

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

You may now disconnect.

Voya Financial (VOYA) 8 Feb 232022 Q4 Earnings call transcript