VOYA - Earnings call 3 2023 | Voya Financial, Inc.

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Operator

Good morning. Welcome to Voya Financial's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the call over to Mike Katz, Executive Vice President of Finance. Please go ahead, sir.

Michael Katz

Thanks, and good morning. Third Earnings Financial's Call. Voya to Quarter Conference XXXX Welcome joined you morning. We of have us appreciate all who this

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

Turning Slide to X.

forward-looking made measures supplement financial the found and available meaning law. website. call the in certain securities within during federal on reconciliations of refer to our comments may Some financial contain GAAP statements of our or non-GAAP release the are press

Templin, Chief me Chief on are: Executive the After Officer; prepared Financial our our their take Don joining Officer. Now your will Heather and call we Lavallee, remarks, questions.

turn we For to call the turn Grubka, Heather. Q&A heads also over session, Management; Solutions. With Christine Workplace have Slide specifically, X our to Hurtsellers, Rob the Investment of to businesses, as let's the I that, invited like would

Heather Lavallee

Mike. Thanks,

with begin key Slide Let's themes. X some on

future Our and on results diversified targets to our our reflect of of share we executing of record for operating strength the the benefits continuing earnings, our adjusted businesses, of the including generated $X.XX underlying growth. In our while third per track quarter, strong revenues invest to continue We on as in our the businesses. our on a to taken lever XXXX. track and period to achieve the disciplined items. notable XX% We've EPS target ending margins, protect to manage necessary to XX% for be remain we'll of X-year key spend

power ahead, As all into growth our will and pipelines XXXX we businesses robust look three beyond. across

all well distribution a market flows ongoing of as product for underlying strong. fees In third Solutions, positive across ad Our Health service Solutions, momentum international premiums And lines. recordkeeping. net full with Management reflect commercial both as quarter. while recurring difficult the in-force Wealth is our in and continue deposits the transition annualized business up management, to the channels, to in XX% and XX%, flows build Investment growth full-service grew with continued were In

to from in and greater expectation Importantly, fourth outflows of now more we flows us, transition-related benefits contributing quarter the benefits our retail distribution of of billion AllianzGI. with relationship $X the quarter. most with new relationship behind international the The head emerge continue into net than positive international even with that

XXXX. ahead to businesses. pipeline our In will all the on Management to robust flows examples. X% That up preeminence disability, headwinds growth. unfunded Voya than cash Health, we our return at in to margins international organic strong life in X% growth target largely As currently duration protect end and confident private support billion strong and equity combination strong In few XXXX, Investment in This us, on our private at year-over-year. performance, includes of into range a assets. The premium are we In in growth is Investment robust of our benefit well and continued already and of look to that With moves its in pipeline deliver markets. to discipline sideline implementation more growth institutional credit projected and secondary XX% sales opportunities XXXX strong for investment financial as almost strong with known we're positioned is goals. XX% for us up channel, across high allow the A expense have of commitments includes Management, Wealth, fixed pipeline our with behind we sales back $XX seeing that our income the now will of least voluntary and and longer pipelines the our and plans outlook sales experienced a transition pipeline includes XX% we XXXX.

More the dividends million. end the We approximately capital $XXX transaction third of across buybacks, extinguishment, excess over full strong $XXX position conversion shortly. million $XXX cash to the contributing Turning of our the results quarter million capital take of India. and in capital excess debt share to quarter will past that over of completion a million performance this target. to Voya Don share on capital management. quarter free additional We our in nearly maintained ownership deployed $XXX flow XX% more an generated a XX moment. We on at months, of and exceeding

in Turning and to revenues, strong focus growth integration. continue us the Slide X. opportunities. over to diversified positioned our acquisitions strategic successful capitalize strategic keep acquisitions year, helped business made establish we've past a to These our on have After we new foothold markets the on us squarely

markets capabilities. With institutional Our acquisition demand AllianzGI international providing year's dislocations. revenue of has international continues access diversified a for retail and adjust has U.S. and the business to our at when Management, business, income our focus last fixed and market to of its to reshaped high-growth time Investment revitalizing earnings Voya AllianzGI retail-oriented

businesses. driver will focus our as customers. our partnership With And strategic savings savings. we Management and and It Investment technology India, our the management. Benefitfocus value see benefits X,XXX building help workplace beyond workplace experience we Our benefits from and strategy the our India. current season our maximize significant vision our us with our Voya currently is organization, and clients, even in delivering strategic capabilities benefits took ownership access capabilities a capital both as we helps we the supporting for resonating in we've define a this Voya X retain that built continue base. we subsidiary Voya the workplace technology sales key message in our deploying and allow of further international into to underway, customer almost customer of with flexibility to rebranded on distribution pipeline. In will advance of base administration, to acquisition the presence growth for which open in Voya's and manner, platform that and value India growth we're bringing new which our are to will service expand full customers of us is market drive sharper encompasses years our new global and Voya strong investment employees. Through with employer and markets By a provides a gained scratch customers, focused only of that enrollment today third Benefitfocus Voya and quarter, and outstanding which the enhancing to and have operations

We solutions is also driving to technology greater more to while to customers efficient are our automation, that bringing innovative performance speed leading a and improved cost market, structure. faster

of mental we mental to clients, Voya's our support work, colleagues for Turning purpose and X. illness colleagues to details employer products. To and customers, once employee in will now our our critical held to of participating increasing campaign new on Slide offerings and through performance we our was programs recently we insurance live communities, provide that outcomes recognizing employee success our vision more and drive health than the positive to and results. continue approximately our Voya The and in which Don? importance accident supported and September. support with resounding that, annual communities again needs our giving XX% health collectively in X,XXX the more campaign introduced charitable Don a causes. With

Donald Templin

Thank Heather. you,

to estimates. within below EPS turn alternative let's This $X.XX and Health our of to results $X.XX delivered $X.XX expect of prepayment unfavorable quarter, Now impacts income better the prepayment operating our other and and to alternative includes experience on long-term pre-release Solutions. Beginning next in expectations we our income X. We inform of consensus quarter. third Slide adjusted

was Favorable to This Wealth from revenues in $X.XX XXXX and prior ratios third impacts, Solutions and the operating Investment quarter reflect in also quarter. in disciplined by compared was moderated year levels growth in Management. year. EPS management. $X.XX notable loss in year the further capital adjusted Current exceptional prior spend Excluding Health somewhat results fee-based prudent supported

was income target. over million our impact flow quarter, million, net GAAP $XXX noncash items. the another quarter demonstrating the favorable Free $XXX XX% of certain quarter Third generation reflecting cash above was in

Solutions. Wealth to Turning

the to of on strategy savings and billion AUM quarter and retirement in our and franchise. total on leading assets. continue us We progress We make with builds billion $XXX client $XXX differentiates our which full-service the of benefits marketplace workplace ended

This billion the flows months. full-service last a combined quarter Our total last record-keeping have XX third and months. increased $X.X the in meaningfully client includes assets $X over and billion XX the in net over

focus tax-exempt the growth on our outcomes which exceeded full-service $XX in deposits, This XX supported workplace new helped Our retain win in months. key in clients has on last maximizing markets. business and over billion customers has recurring both focus and corporate relentless customer the us the

to Turning Slide XX.

Wealth In year-over-year our We higher the to over revenue the quarter, the benefit continue diverse and to elevated generated from $XXX maintain in to margins. of drive streams. million million Solutions we were variable investments lower transfers the continue adjusted fixed to profitable earnings operating operating our months. Net healthy participants. from fixed surrenders see and accounts continue growth revenues reflect $XXX and and last quarter XX of

behavior participant While the income XXXX. to trends we to will which expect is macro due into with quarter, spread environment, the be drive third uncertain consistent heading quarter fourth

expenses continue million $XX our the maintain of target were lower within Administrative range than to second We margins quarter. to XX% XX%.

We back into fourth our support to the operating quarter taken seasonal quarter we expect levels expenses spending. Heading given ensure XXXX, expenses second of actions to additional target impact to increase have margins.

of full $X one to is quarter, billion we departure. large expect While outflows service $X this next mostly net by billion case driven

includes for which and last plans year. same XXXX. to compared a have We implementation billion is XX% of the higher $XX pipeline This robust time nearly

Turning Solutions. to Health

our excluding favorable and results and Benefitfocus. experience in-force approximately was and sales in was lines. the excellent better retention product favorable all fee growth strong than year. growth underwriting was and X% across to reflect target driven XX% premium Our our significant XX%, Annualized substantially This year-to-date growth by

XX% basis. Our total aggregate loss ratio a XX-month trailing on was

reversed While in some of favorability stop-loss quarter quarter, remain second the results this favorable.

will XX% XXXX. range stop-loss target trend towards our long-term to of expect ratios We XX% in

aggregate our XX% in are This strong XX% from is and to voluntary XX%. We block. underwriting growth XX%, by substantial to driven ratio lowering loss our total to down long-term

to Turning XX. Slide

in million. growth significant million reserve. XX-month nonrecurring earnings operating trailing experience a the were over quarter assumption the in the impacts resulted include Adjusted annual our year unfavorable earnings and the quarter of period. review Results legal last over in $XXX approximately onetime underwriting and from $XX favorable adjusted Our operating

$XX Excluding operating million. earnings these adjusted impacts, were

reflecting in-force Adjusted operating management the prudent margins Benefitfocus grew illustrating expense quarter were year-over-year, revenues Third of XX% investing growth and strong for while premium revenues. XX.X%, growth. addition

Looking expect open $XX season to fourth with by reflecting million our seasonality first administrative the enrollment and million expenses increase $XX we quarter, ahead, to Benefitfocus. in

book that and start had our have solutions and We sales a financial bringing to growing season workplace. the customers in our the outcomes improved remain to in XXXX confident strong renewal

record value for Turning different market has a Slide significant Management XX. generating across cycles. clients multi-decade to Investment track our of

earlier, mentioned As affected our year by Heather streamline have and flows platform. our and modernize dynamics to been market decisions made strategic this challenging

our billion AllianzGI overall quarter. With added third the with can $X.X net us, this Specifically, former transition partnership $X.X of our of the largely transition to outflows we flows partnership, billion international distribution in on since AllianzGI now net from behind has away the billion which inception. the contributed build $X of momentum

majority general and a Additionally, included Venerable is transitioned the back variable The time revenue over assets of have transfer now portfolio account to and account guidance. our will and margin in remaining Venerable. assets

have expect to we diverse X% strong $XX a billion from return forward, year. of growth to pipeline source and Looking next target of over a strategies organic unfunded of over our

Slide noncontrolling as of AllianzGI's XX-month million to we $XXX notables Management revenues delivered Turning operating AUM a basis third on AllianzGI. of in from adjusted $XX trailing and earnings excluding net a revenues XX-month grew million XX. interest basis. the XX.X%, Net and trailing added Investment on quarter,

operating was basis. XX-month trailing XX.X% adjusted quarter excluding margin, on notables, a Third

into them XXXX. position further expansion heading continue to manage We us to for margin

benefit income product pipeline from Looking distribution our to ahead, fixed for and us position differentiated diversified back well international we well are growth. Further, and rotation into a strategies. future positioned higher-yielding

we $XXX of third Slide the capital of with excess XX. flow ended dividends. quarter $XXX target. In this million million capital, months, consistent free of to share cash the XX% million last conversion approximately capital quarter third approximately We with $XXX quarter, the of over We $XXX repurchases the XX in nearly generated million and and our included million. $XXX Turning deployed

the debt the leverage ratio range. of With recent maturity middle our in long-term our behind is now us,

capital focused be on deployment nearer-term repurchases this, dividends. Given share will and

the in fourth are baseline approximately to expectations quarter. return million Our $XXX

to as manage sheet we it. generate prudently ahead, will we our Looking capital and deploy continue balance

that to EPS on target CAGR of period Turning XXXX. remain end Slide X-year our We track to in XX% XX. to achieve XX% targeted the will for

action We protect financial additional our have we taken expense targets. ensure achieve and margins to

our growth across will outlook for generate to our strong all segments commercial momentum, support remain three pipelines with continue and we capital. prudent our We

Operator

with Greenspan first Our to Instructions] [Operator question Elyse goes Wells Fargo.

Elyse Greenspan

billion. have I that is mute. you guys was I My Investment on around first on get some Sorry, pipeline the hoping Management. just I business was question spoke about $XX in that additional to know on color. you

If you compare relationship? then mostly? through come the from that the how second all are And should results your historical in much you on expecting could of to that NNIP all, more quarter levels? And fourth outflows

Heather Lavallee

on Christine will jump optimism our and pipeline. in talk the about

Christine Hurtsellers

you, Yes, Elyse. Thank absolutely.

So question, let pipeline pivot me and actually start itself. with the to I'll the then second

So -- outflows and billion, yes, put NNIP $X to fourth largely expecting the quarter in really billion NNIP behind we are us. that $X.X of will

that think XXXX So of event a VIM. as for

to then billion. over $XX pipeline, we moving shared Now the as

contextualize me far as you history. Let that for as

So ago, year over the the versus compared we're a Xx of entering size XXXX to XXXX. pipeline

U.S. is. is And distribution. so things we're include I view discussion pickup what seeing traditional them for the a And by done consistency, mean more in too, And really on one we've is what And keeping that the Elyse, doesn't that here. pipeline real Allianz. that on momentum that of what that of view is that

the again, for that a so fixed distribution out the global about think We've when notably their -- opportunity obviously, we And there. opportunities income of got you lot so demand of and reach, Asia. see that

again, keep So to is wanted it $XX wins a I very billion high institutional are wins probability unfunded we finalist. that where and What consistent.

every is opportunity day. the pipeline again, growing bigger. So It's

year. and a remain and move next 'XX confidence have into of about X-plus organic confident lot We our excitement to growth

Elyse Greenspan

And then gave you're And my $XXX fourth million the the mentioned, a question, for debt you target within leverage. return, quarter. second target you your right, for guys also capital

growing expect So in here? 'XX we $XXX improve capital think your million about should to earnings we as level that from return from

Donald Templin

year Don. was This the up because an retirement in Yes, had we debt a interesting XXXX quarter. came is that this third Elyse,

deal bit in was different. repurchase. a quarter and dividends little share now year the million repurchase quarter. had that around We've guiding bit had with some in we we're amount more bit of and a debt the debt We the to And been that. the quarter. So repurchase quarter-to-quarter. fourth of a historically maybe share balanced $XXX repurchase little This the little We share $XXX in million second around had first retirement limited of share retirement

our in metric now. comfortably leverage right are We range

now, to So you we metric you bias should return XXXX, that we've in repurchase capital -- our leverage to shareholders. in and expect, right guided our our are obviously, fourth of expect quarter, bias given be what share to where should will

Heather Lavallee

of to the our and as put, shareholders form And you Elyse, is acquisitions, on maybe the organic capital simply returning on strategic 'XX, as focus think in on driving going in about growth, buybacks of integration the mentioned, and focus into Don share dividends.

Operator

Our next question is from Ryan Krueger with KBW.

Ryan Krueger

on just XXXX. XX% CAGR to was question first the My XX% EPS through

call, be last is in talked had that expecting curious, think higher at your about I this that still And expectation range. I'm the you point? at to of end

Donald Templin

Yes. Ryan. Thanks,

second end we're experiencing likely management. that equity three in think, strong the moderating we've in strong growth on -- need inverted being headwinds and of declines, more business focus momentum by alluded couple at of X-year targets. But that, recent range there all One, that combination bit our little the not to makes occurred that to, EPS end top market really that in guidance. of difficult commercial that's Health being experiencing we confident is year-to-date continued So around of to in bottom XX% that -- yield are ratios a that and having a disciplined incremental the a the segments, the the the our get To driven that stop-loss since normal the results in Heather I range, of that to of our then XX% macro some top to get The the underwriting us and loss things. revised favorability confidence of the as quarter really XX% it expense end had reversal to we're said a range. curve the we'd and XX%

Ryan Krueger

on Investment And my question was second Management.

on up went amount the rate. a quarter. Just fee this fair

be I guarantees revenue from might and NNIP think there some impacts whatnot. and

about just into So we the there? to can how color give on more think rate as any fee XXXX you move

Christine Hurtsellers

This Sure, is Christine. Ryan.

you point, far we're of to winning about it those And management. think basis some points you fees, the to going about basis have And you're lower debt, or as So behind when bit the basis it I the has been really, absolutely higher want think up. then outflows as points tend like as the been lower-margin business. private that a in international retail as little scenes, under have well right, things

note, for some that know seeing let private strategy So about think income, alternatives why career, story. How want expect given you to to operating certainly, progress China's that and And out U.S. to real going there. may think want to about that in that retail, just rates my is than about to long to our number metric. but is first forward, "pressure" leveraging of -- that manage say great I around to we and I lower next are We And international time business saying you see see as the over When would, short think mean, think we Asia. reasons. I What continue year the we I'm I think interest, growth. to really particularly a growth. want about actually don't and and the But growing fixed I that time, margin time, we really are

are also seeing world. demand think so And but I it for high-quality it U.S., only that we in the income, in the the fixed seeing not we're

lot managing And margin super sovereign at we XXXX. we're and what growth, example. opportunities organic funds fees, It's sometimes, excited. we're to assets is wealth see in but these an of as great bring a so They aggressive again, accretive. And

Operator

Sachs. with comes next question Our from Scott Alex Goldman

Taylor Scott

expecting comments on mean bump and I this the something should a end this cross-selling on growth was the business cross-selling just you we around just could help pretty is you be year if get optimistic clients? of some and is different And because the opine going? is your at the interested potentially year-end. -- you First I in of how one could that bigger more I your the the about had efforts across sound And for next Benefitfocus of quarter? thinking

Rob Grubka

Alex, to that one. Look, where of this the on. I'll clear be the back that acquisition But of Heather we're going And generally Rob. so are I this are technology-driven want the decisions excited XX-month really is guess on unseating end I [indiscernible]. conversations tends more it's business technology of sales sales start a is big chime to about prior sale. is this in a sort want this longer, are may provider sort some So to about talked of XX- a cycle we right? be Those to it just and cycle. of and

we 'XX, it, wouldn't going a again, about about see a things I change enrollment sort quarter-to-quarter. then So think about, we're from think annual what It's into some you seen through in hey, how going as that's I should you're you've about we that of, and like as really building may that going to that of long are we XXXX. cycle talked say, when time sort on factor in now sales sound And there. should you in momentum just But factor away. major

And so having that different. we're are the conversations

we time our how distribution today the of front of over people an things happen around. We have sharing is decision together into all really is incredibly at just and from been leveraging, live different technology may HR not conversations sales and the around build sort have examples those months we again, of period than they're confidence complex, over XX environment get for team with once, time. team Importantly, thinking our about about in savings, Board what they benefits product that would decisions excited long Again, a of all had this they ago. bringing optimism simplifying lead and but a

going, So we're that really in alignment from position strong leaves strategic and let chime us I'll a Heather with where in.

Heather Lavallee

a Yes. really Thanks, few Rob. emphasize points. And I'll key

bring highly And it's this about the acquisition we it, administration to year has think for benefits on since been platform. strategic a be a You announced us acquisition. able to top been

point one. that's So

entity. this benefits think you the Secondly, of Voya as about owner the of

We able We bringing did the be accelerate have on sales for capabilities been cycle. to to able new Benefitfocus. so to time to market hit

pipeline Third stabilized point open which is got enrollment. And is as with we we've strong biggest where into mentioned, intermediaries, we've service heading see the the growth. a fourth, Rob

about what we not be bring excited Benefitfocus So could us. will for more

thinking strategic we beyond, really but mentioned are about Rob of it this super and As about terms excited in acquisition. 'XX

Taylor Scott

any could on had thoughts rule. impact know I'm kind funds if have on Department fiduciary And have business? I if you Wealth impact views in business impact guess particularly interested I question of Solutions in or if that of on any Second is but IRA the it's any Labor sort it any -- on the around just thing? proprietary like early, we rollovers, of -- I your how

Heather Lavallee

say, just super And I'll early. it. coming Alex, attention Yes. to just teams to With our really out, take it. it's paying are it

We in doing continue focus on for in and best the right delivering to participants our interest.

So arms again, early around days come more tuned and once it. get we to our stay

Operator

from Our question comes next Jefferies. Kamath Suneet with

Suneet Kamath

A couple on Wealth Solutions.

or that you Or think them? we're we Like some in sort think we how just get about on essentially there these still flight risk about a to terms is how still don't negotiations in pipeline? closing pipeline. as a understand final we onboarding? of other the Should of players? you when there like be I that with $XX about talked that is billion like want in defining -- confident pipelines, final -- your I just contents can talk I

Rob Grubka

is again. Yes. Sure, This Suneet. Rob

We've as over in. sweating this, people got confident we feel speak. So very we implementation

will But these obviously is So think in them full clients about year over to the period. come way in implementation. the

in. And seeing would segment business. uncertainty is of a things that this very level is from We just not add, all so in I those what the broad-based conversation, really look, change. and what feel unlikely doing And confident we're there our just of we're one

strength with speaking. the year. represents think you jump think the over business, about our that, code, about broadly mix really we of and you it's pipeline it the implies This XX% about consistent prior the whether book So sizes. tax business a And like of

Suneet Kamath

Got it.

maybe guess cash deployment follow-up as the forward, I some quarter? end of the the we that being deployment $XXX of really of contemplating flow And a about you would drawing excess Should capital question. about we million the that down generate for capital have then Elyse's be of free you you capital going think think to function Okay. or Don, at a

Donald Templin

great Yes, question there. Suneet,

So I we've this and of particularly, macro think, thoughtful been given around prudent year some uncertainty environment. the the

very expect capital little excess been the And define be a deploying the the we called that but about we've that, the generated until bit would and the excess will we prior more continue So on intentional basically to time macro that return we quarter. I excess clarity in quarter, our get as in current that for our will some period reason. over shareholders. of for long it's to goal a term

of some where excess. bit of having to going there's be probably time period we're So a

access uncertainty we're the goes now that, be out of So you more, away the million little trended right some that a that But down. $XXX to range. bit crystallize in as should will expect things

Heather Lavallee

brought the quarter. doubled point We that we've alone, done record the in dividend. Don's talked we've And that. capital about you shareholders. We dividend. of got to what second the about my on think only increasing resuming ratio. in share repurchases did we [build] about the We track leverage When is fact We our talked returning long-term down last the year a

'XX into So that us free flow. continue have to focus XX-plus that shareholders and expect confidence you in to our can cash capital on percent certainly to returning

Operator

Piper John comes question next Barnidge with Our Sandler. from

John Barnidge

Wealth for about there as and India think Voya hiring in you India Is about and for in business? expense about the some talk helpful we that can framing talked about about and positions be business percent Maybe expense talked like x specifically Or of talk -- Voya fee-based can that Solutions, leveraging capital? dynamic there? Management the admin some would Investment human within and new You've discipline. you outlook

Heather Lavallee

Yes, you. John, the question. I'll take Thank

about we year, discipline, So done that talked about you management much within about AGI decade. very teams And what had earlier first, about muscle. and That's particularly really new have as the was asset brought And within for talked a a we down expense some integrations, reflecting to businesses. we've think our actually -- we we proud that this this Wealth expenses not those of of is think within something we Benefitfocus. and talked opportunities within

As we actions and take improvement Christine think forward, around mentioned. our X% we expense margin and really that our Wealth in within can that Investment going Health maintaining operating about is Management our focus margins

John, for well maybe a for then India, tremendous we Management the about within have been it together organization Voya workplace and as Also purposely about and Benefitfocus. little So specifically to a across dimensionalize that has we Benefitfocus Investment you the think think our brought ago, as us. opportunities a bit, within asset year teams

we we automation, continue see continuing then and in we will best to opportunities that in in discretionary then to have And emerge continue spend. And organization see to our levers footprint. there opportunities savings clients to IT AI, finally, optimize so some continued just that to serve our as simplify around as well

hopefully, So color. gives that you some

John Barnidge

disclosure performance I the in follow-up one investment forward have quarter? very a lag maybe question is and new And helpful. you given a there talk specifically third about income Can performance. around then That alternative the look variable provide quarter the around

Donald Templin

question. that This is on alternatives? repeat John, the sorry, I'm

John Barnidge

Yes.

at So to that, forward going provide given changed asset, look talk it on you into it alternatives, from -- can going And within it's going in you're sounds not fourth? one specifically, you performance the a Can lag to about quarter, quarter forward. there second the the third is your a all it quarter? you're like pre-release

Donald Templin

No.

we I that notable process publish general the X% -- that. below expectation we'd days what performance long-term -- actually, do. a the what think as really to we planning a the when quarter, alts is as from in our expectations, after we're alts out end some to the will we And right? had like We will So provide information, a what give achieved around the the of information We X-K part other that's quarter. item. our of we do few current call

expectations your can sort build So performance. number you into or around of that all consensus your

publish there XX-day expectations. So alternative take view what's be a earnings, that and pre-payment part of misaligned above around we happening now, a below there's our that, we or the you may period if as on

give our really information your to here estimate. goal into overall you early is that you can So so work that it

Operator

question with Wilma Burdis next James. Our from Raymond comes

Wilma Jackson Burdis

you a details the on quarter? provide reserve additional Could legal just few

Rob Grubka

is at enough it within stage It size we results But We business. details. get into to this Yes, and Rob. the won't don't not this it things. the health It's adjusted quarter. in of sits that

Heather Lavallee

I'd non-repeatable thing only the a item. add, And it is Wilma, do consider that we

Wilma Jackson Burdis

you little the bit give improved could that? outlook a ratio -- for the driving and benefit more And what's Health on color

Rob Grubka

Yes.

the So mix, at what so at look for bringing to really mix of to it is XX% so of number as a a now percent, XX% we've XX% versus successfully years a our of business, primary really down as driver fast XX% grown you the business was rate.

reflection that it's good lead and to continue show And that is time -- bottom to it a up we're And do think obviously, that I look range it's what in at line. a to further. grow a business, to is around going voluntary trying really responsibly, way, you're shifts this shift. we'll is do the of Our the over mix as seeing

Heather Lavallee

here. of I if the proud Rob incredibly can And that team we're Health just in have and delivered results add,

and our that's just The loss a XX% the And our as you to on above about we of in long. still all the target. in-force annualized of growth excited we're top target. well that and then take growth And If comments, us. that as team premium mentioned in think ratio revenues XX% about we'll XX%, our that mentioned Don deliver below front to has in X% pipeline day

Operator

ISI. comes Evercore Gallagher from with Tom question next Our

Thomas Gallagher

The billion $XX expect U.S., thinking be you're you performing excluding ex-NNIP? contributor an inflow Christine there, little pipeline talk based bit for it about And XXXX? would to been the said. on is that you lining what a on Can up has about seeing to How for you IM. you're Europe related NNIP? what Follow-up also

Christine Hurtsellers

Tom. Thanks, Yes.

equities. that's as international as And seeing they far So of our the flows as franchise thematic what since our from growth as we're closing $X.X delivered deal, and well some billion. Allianz predominantly income and the --

and income Asia, the credibility platform. $XX as are a of that a where flows as that's coming recognition out and has pointing Europe. and in It scale growth, well lot billion So brand

the Allianz. some we launched outflows, the outflows largest funds credit, [indiscernible] was the within have of launched to path coming that investment-grade specifically So forward, the with we and source NNIP

as Listen, So happening having know, that a it's We're Title [ it X some so early are performer also X decile very really competitive. for we're called conversations, fund. with something for things ] important you ESG. this will years, be year, in performance, it's top

very is to Europe, track we're as compete our order and And quarter, last grading fund. important were know, ESG for that. designation able So record the we again in new you finally, support to to in that over long-term

excited is want point lots So we're That's strategic but to would one ours globally, not products distribution X only of opportunities I here this. long-run then conversations on three another leaning a of of credit, mean, little fund. Allianz, mandates they a through a about. fulsome and represented just a happening. make things, when partnership big them, XX% Institutional over about a go hedge a They seeing on, not they great final you transitional I'm definitely funnel with say, own of credit of partner. are there relationship. they and only think This in to one year. our mortgage is just lot our in. NNIP, are around in And number I broadly, really fund. And example. strategies, I Allianz. And This but securitized. it's are

really the them I'm as so XXXX opportunities with and beyond. about into move And excited we

Heather Lavallee

as just spent top of spent in joint growth the going terms aligned an of of time be the including have incredibly in we over together at and the time maybe [ house, more and immense And even I that's quick business, ownership can of deliver just this teams with amount the about And couldn't of what franchise teams Oliver ] are between constantly stake, we excited forth. and back the forward. reminder this Germany, XX% the a are build

Thomas Gallagher

Appreciate all on of the color that.

on onion going guide Just longer just large want want sign your a what's to of claims? of has you back Was continuing? business? term, medical stop-loss, term, but the to Obviously, maybe volatility it that peel concentrated, several was near the to improved understand Any the with little bit, there. gears claims? it that shift cause Can more

Rob Grubka

Yes, know about few it's and it's sure. Tom, extremely on And this that. little business, results. Look, It's to have know stop-loss. a lost hard way is good last Rob been the again. understand a you risk I maybe think bit Look, us business. I and the volatile years a sort tail-based of

we in on why XX-month view. So big the of it's a trailing focus part

you sure the redirect just tremendously XX-months. ratio a We've make that business got so in XX% we we're And loss understand that trailing strong I and results. a over

X%, our view. back to at go you the of edge If which bottom year, very is another the XX% XX%

based moving As about forward this continue record do exactly XX% is what about, about we business growing really disciplined the we as a we you're important. XX% business, like on We've we really both track feel that the you business are said, keep looking wheel that a which on hands how to basis. XX% this the got strong on we'll in get again, -- the reminder, talking business what It's of is to time an an seeing XX% this is running at assumed we So that does we're triangulated time, feel how re-underwrite all the to forward. And how things annual in to underwrite and way. in getting best you seeing same this and compare can. tell point And be you a At that claims? those to are were claims? would us going have what around,

Heather Lavallee

business confident just team very feel do add between and and that Rob to would we continue have years collective the going successfully forward. with running that of to I And I, this a XX

Thomas Gallagher

just in. if could it And more, one I sneak

think recency a that the the of great. to pricing on are have into more there results renewals work been bias I way year-end is agree trailing -- -- completely Just if and Just going that heading I about stop-loss given business?

bit you from a would This more gets expect take little quarter of bias what you recency that repriced? the Would Or way of elevated. a terms was in a pricing dynamic?

Rob Grubka

Yes.

So a great question.

about term assess and eyes we So what as each fresh we on the do to every underwriters risk list case year. is think put

we've whether sight got claims business, of experience. and the new activity the good so door coming and existing line business And its of or in drivers it's

X-year shorter what to, a we on and the those Sometimes of what are when going time. But ratio. manual over seeing claims loss calibrate experience, we periods drivers view therefore, are in of as about at of we and ultimately, been least that's the what's market, of we think sort what do

But of same can. would sort as best XX expect, the piece at. between it's of don't we love So but results a what point, sort a we best look, near-term at assess you the a with But in we view long-term as get fallen there's as we last and months. look of things can, how we balance,

Operator

Kenneth Lee Capital comes Markets. Our question next RBC from with

Kenneth Lee

Just on over experience of there. time time term? of Management one expect $XX billion funding Investment the for been similar frame pipeline follow-up those the the in historical terms What's would a frames And for you mandates? kind the funding near mandates

Christine Hurtsellers

Yes. Sure, Ken. is Christine. This

calendar have as those the fund the confidence will great we we see that with you, year. as far pipeline So or in sharing

there, we companies slower insurance wins. have deploy that Now obviously, aren't portion our environment insurance is there. the unfunded Well, specifically including we but given a all from would everything. clients year, of there but macro some this in committed -- why A don't we are to little What call it? in things capital there been include and

is as putting about about this when beyond about. you is calendar Again, that for year. in stuff number, what And that think so we pipeline a that see the opportunity think we're how all reasons the big we we to talked see holistically, the

really redemption I faced It markedly, I competitors very of a we're positives And would to fixed again, rates market, the kind more U.S. was actually confident all starting down flows. real think, of shoots into We're strategy. this of feel year. beginning couple we So well. retail go move which we positive income in in for a high-performing green seeing quick. delivering seeing we just terms real that. And my tough say about also, interest -- in as retail flipped our We're seeing

are of I energy, a think of a of they're a things, excited. I'm lot So lot -- really feeling There good things. lot

stay focused business. transitional XXXX, this over and Just the year on growing get want to

Kenneth Lee

flows you Got get you. that fixed there you it Very inflows Or net better net driven inflows provide in fair one of sense say quick I saw? just by complexion to of around a retail helpful And To terms your the largely the quarter, there. net just to follow-up. the in was income? there, the that color want the

Christine Hurtsellers

with is income bump offshore the of stand too. this into to flows well, within the continue tech there, see predominantly inflows money market, that, flows sort The through inside really I domestic which Asia Yes. retail sort But the is think didn't dominated And positive market we're starting and go our the we U.S. in that growth. out, of of beauty and and again, our traditional we're from problems of of JV tech some performing global be to getting actually, did.

challenged in you so not retail, us U.S. flows. our power only of And was the our of Asia saw more that business dominating but really having the really power

growing. starting improving really stability overall, in green see U.S. and also, is retail we're continuing shoots Europe as we I'm see in to just because excited So Asia and and

Operator

Shanker of question next Bank with America. comes Our from Josh

Joshua Shanker

the more capture don't confidence result end health the medical occur wait for that repricing a look little I at what and point, months us cost XX to we're we're we seeing XX-month Can And a need to lot seeing mean medical are inflation care but Well, in of quarter seeing that? in the what of give Yes. extent, should overall? cost isn't of I A any to it's it a some providers to that inflation. business realize third trailing basis, is good. belabor the very you stop-loss. medical if to we

Rob Grubka

the I it, Yes. question. there noise say, What we've actual traditional. Josh, to look we're then in cost piece there's an be dynamics the in but more like? data. incidence lot point, would the can your inflation What does driver unusual claim of look, around obviously, obviously it's that really of as seen, not seeing the a And our

predicated of it why this on particular wheel of rational keep right? core sort the to X%, issue. But is a in again, I factored at be attention experience change be are has about on we claims the going set day moving at. move price experience is that at but medical again, Absolutely, come Could there there's What moving is we're costs long and on not think forward. close today of you things pay say, we're it well, and Now and right? So that, the product, think not range, we a in health better we always the waiting of the think of the that minimum, bit sorts a forward? inflation, product business the to will actual this inflation seeing would So got. an seeing a about need support to history those okay, though, market dollar we this of data both this hands it little driven the as product, first could X% what But unusual we a could. and because, assess forward? long-term the been to we how is we've be how And a about cost term blip evolve absolutely risk to pricing what the long fundamentals we core the maybe, of the think

Heather Lavallee

on consumers are our In products supplemental able the protect costs it's and of help medical demand time participants, well products HSA. as as we've got mentioned, a that why strong you the cost build for to Josh, I'd now to These on health so as higher about is need. think our our of important and be

seeing in and our sales. see demand XXXX that we're so And show certainly that up

Joshua Shanker

intervention most care the industry? it's what about of think non-event? it? Is of you a impact that Is in we cost guys drugs employees markets in about it thinking are the the should future? should one medical on stop-loss health extreme a because the only reduce topic And for How GLP-X the it today, popular

Rob Grubka

technical issue. Yes. a Look, it's

particular upfront. do think what And into how as are as like that is the usage we like? when plan these is across and area has couple not -- where of going last but able acknowledge whole or this how years think But best the of cost high team actually we we'll you of client, to get just going for to an look usage So side book do about drug what's it we on, trying business. within about think the do delivery a the a be going genetic been to

space. And so done we've scale a in last what this to benefit of lot in growing the few there's and years

anticipating I how that at for an pricing underwriting think into underwriting we story and the future from getting the to written possibly outside it's think be layering about as the and feeds this things. the will sure, but topic is into those pricing that perspective of we perspective sorts smarter team a making and decisions can, in

and the So I best, paying attention think hot topic we're we're doing it, space. point. the in a to to your It's

hands is both with paying cost on the of it. get attention of wheel. and to close the that something because size we're this again, But comes the Just

Operator

Our next from question with Partners. ] comes [indiscernible] Hertz Joel [

Unknown Analyst

$XX the did businesses year-over-year? in service full that the of much both billion And How of on sort follow-up is compare a record pipeline how versus of Wealth those keeping? pipeline. Just

Rob Grubka

it's it is think wait not right just powerful in going would as with with I keep to thing sure. for Look, to business. to this this refill. point for back The I coming our data done new sit book. not Yes. and around thing consistent about We're We're

across But sort a some environment, in much that were We know I negative and develop billion tax we of this in and but coming -- businesses. But we we're about how we're we've building feel it's market, of and exempt all we're both you point again, about year-over-year, you we has about, that middle as marketplace. where that. In through. slower tell drive trajectory importantly, a we're home-based activity. You that get middle leverage And doing. this seeing again, the funnel. and cases, the and side this enabling of market, to going up always space from the be can just is things Wealth got a little we've 'XX, of effects that better for really the optimism drive to and we the to lot been seeing the and forward, more XX%. emerging year-over-year Health those Benefitfocus much for benefits being more keep savings but talking talking continue of on that, we're look seeing $XX look, in to as hear filling from learning to Health there, as through, And the as front Benefitfocus, lot all part excited 'XX We're of starting a we're and great in organization a would about year. record-keeping gone connect business a confidence really optimism, what again, isn't us perspective, of the strong of bit experience across about performance see talking for we the strategically collectively three been about business,

Heather Lavallee

And space. simply markets put, codes, keep and we serve multiple across just in mind in that tax leader we're a the

prop And seeing. we're is so that mentioned, as our about And resonating we're -- Rob our with excited quite what clients. value

Unknown Analyst

in into helpful. they you I staying look wealth then the about on year, think single Wealth, XXXX? the to head in if as Can just expenses talk taking for 'XX overall And digits. just high on and Great. mid- be growth like should look Very how actions they'll you're up at expenses we you about in full expenses

Rob Grubka

perspective, a a That it's how will continue leverage technology next year. lot is work thinking drivers lot whether simplify Heather, corporate technology doing of to I continue Look, big we're environment. side hit of that of Yes. things, of the India, from things, our continued a think Voya into the to team about the

on. all -- Importantly, I think in we as we're what have is said, focused margin

just and going the to a expenses. hands to, operating top and line going the in balanced And come so on because environment, we've we're in be year to has there what way, and have back expense numbers, the that got both that driving manage going wheel have this prior emerged both the benefited pressure margin to on and there. year and we on managing driving what's we certainly We're growth from time, but there's want spread I we're focus in this the again, same to to at be

Heather Lavallee

-- that Rob want expenses, in we'll terms point, just just Wealth. reiterate for needed wheel the two manage to I And of got and years. we've for And Yes. It's said, margins. done hands as lean to in we've It's isn't on the organization. and across this as what

Operator

back We turn any to end Heather the conference Lavallee I to And have the now session. like reached over question-and-answer of for our comments. would closing call

Heather Lavallee

few messages. To summarize key a

future our the track underlying diversified businesses, ending continuing EPS while results to benefits target the of our We period revenues reflect XXXX. to XX% our strength for of growth. Our the invest to of X-year of XX% achieve our CAGR for and remain record our track executing on in targets strong on

look joining XXXX updating robust pipelines power will all across we look on progress. As for you beyond. We us today. our ahead, forward into you growth to our businesses and Thank three

Operator

This concludes today's conference.

you this participation. time. You your for may disconnect lines at your Thank

Voya Financial (VOYA) 1 Nov 232023 Q3 Earnings call transcript