VOYA - Earnings call 4 2023 | Voya Financial, Inc.

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Operator

Good morning. Welcome to Voya Financial's Fourth 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, EVP of Finance. ahead. go Please

Michael Katz

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

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

Slide X. Turning to

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

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

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

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

Heather Lavallee

Thanks, Mike.

Voya we say I'd to everyone the over years, to take optimism Martin, XX vision, the will begin very past thankful themes, Before his recognize month. we and and all speak when moment retirement. key for we the him Rod at like as he wisdom the turn to of I who best transitions to retirement I our a wish Rod's at end are for

has been a Christine transformational is today. X who, Management, has IM than weeks manager diversified it leader I'd Investment also like for to international acknowledge profound leading a it years its several as Christine Hurtsellers undergone in ago. Voya after business, more asset announced retirement Voya changes her becoming

Matt team's for to superior Toms reins client investment customers. over, I performance the continue As service be ability exceptional couldn't confident the she in and more hands to our deliver and

key X turn with themes. let's Now Slide to some

business and headwinds, in capital-light Our the the of of fourth expenses face execution quarter challenging in Voya's managing and diversified discipline benefit mix. for full the results demonstrated year for

a the of results fourth we XXXX, in Solutions. operating $X.XX including reflected generated record quarter. Health For adjusted year earnings, These $X.XX in per share

the within our to elevated affected quarter in occasions. helped voluntary remained ratio below alternative well Strong fourth related expectations. in which earnings well was results Health claims, long-term Although our primarily Solutions, lower by earnings Wealth aggregate loss offset

flows anticipated, Fourth broader that quarter Management industry by headwinds affected as were weaker than Investment continued. were in also results

Looking them our of ahead on are to to we in We X-year workplace CAGR intend for reaffirming in to target period management. XXXX, the spend, XX% in investment EPS and protecting XXXX. expanding vigilant solutions remain margins XX% ending

EPS outlook is that exceeds growth XXXX. XX% Our for longer-term annual beginning in

is for positioning by Our our our in deploying track providing returns strategic and our for on to excess customers. businesses, optimize deliver driven ability our growth shareholder compelling focus profitable experience capital-light record to generating outstanding and capital

the billion and at implementation XXXX. diversified $XX and growth XXXX, and plans fees Wealth premiums XX% markets. In expect least Management into With we in of Health across Solutions, a the includes in-force the momentum start Investment pipeline balance to in year XXXX, is record-setting of pipelines and head we strong. our As all in In robust of in annualized XX% commercial Health. grew and for Solutions, Wealth XXXX,

pipeline cash on a normalize. to us as macro moving in off Management, will sidelines performance of robust conditions have we investment billion allow unfunded And Strong XXXX. capitalize $XX Investment the for over

of capital. the approximately ended $XXX to with million. capital generated year Turning XXXX, and In excess of million we $XXX capital excess

shortly. more and million through in financial will generate Don excess deploy of We dividends. XXXX repurchases in to share detail capital cover results $XXX least expect at to our it and

for compelling customers. X. Turning and our to across reach Voya's marketplace and Slide in a value workplace benefits and savings scale the Voya distinguishes proposition provides

it value and increase guidance maximize provide benefits land an grow expanded allows opportunities. the with with solution deepen set our us and to us strategy customers And to Our relationships we customers to business as with It employers employees, of to and new us optimize enables retention. tools and and new provides our revenue create savings.

With businesses virtually across the market can industry. and our distribution operate match every workplace few solutions reach,

solution for managed example, Solutions, driving set is record-keeping are nonqualified sales. new Within to and compelling accounts customers. Our Wealth adding plans our we

Within increasingly alongside we are Solutions, benefits, life selling and Health voluntary disability. group,

results We enrollment new We a expansion. first have of an and success. season resounding XXXX and provides us important with our capability to spent much Benefitfocus integrating concluded open drive with which Benefitfocus, recently customers, workplace opportunity the been

reflect prior in Net standard over Promoter customer customer We gold experience loyalty, unprecedented over standards had Score, the Those year. administration larger improved elite XXX% for revenues among and significantly measuring of Benefitfocus' earnings. clients XXXX customer statistics points base referenceable of retention, They considered and open enrollment service drive a an XX the greater performance providers. benefit rose the season. ultimately an will and

when help customer employees financial We relationships spend employers optimize build we deepen secure our feature. their a more benefit and

and and workplace connect better participants benefits outcomes employers. to our for their savings drives ability workplace Our

better and benefits Our market are ability leading employers our of just guidance to integrated benefits for outcomes employees our savings and and financial drive examples myVoyage X app enrollment alike.

markets. sustainable Slide a fundamentals, long-term and Management diversified a asset presence business into Voya Investment transformed X. international We've a strong manager sales attractive of markets, broad IM well-established positioned strategies classes institutional diversification growth entered a asset across to with for Turning in and investment robust array XXXX with our across retail pipeline.

positions a flows AUM in or off strong with exceed as to More cash that benchmark XXXX X/X basis, our in the XXXX is investment on well begins and median sidelines. our exceptional. the strategies comes Success performance or in performance. XX-year pure capture of X- than This us was

in investment high-growth critical capabilities possess strategies. We

in with strategies, private with X top and position and fixed income in America market to equity private to continue private privates secondaries strategies. additional supported debt business we leader our insurance income alternatives Our increasingly a And the by North top renewables. fixed be infrastructure and in strength a channel expand, continues in and XX including

as high-growth robust markets demand with $X flows with markets, Our distribution credit Asia billion, for markets, reach and Pacific net XX almost opportunity this business. to franchise, U.S. also our XXXX, we In to dollar-denominated extends markets add higher were retail catalyzed assets. international to diversifying creating our more fee for U.S. expansion strategies a drive and have in our including new opportunities markets channel. further business turnaround International than in retail further these and

we and colleagues Turning Slide purpose work. our Living to and in our our live X. clients, positive outcomes the drive continue for vision which and communities to

customers the Our we of do. that all at center remain

support research continuously win culture to we And communities. We to improving are and our recognition experience of committed education. through our continue strong tools, and enhanced digital customer for

provide and performance Don? now will Don detail more that, our on With results.

Donald Templin

Heather. you, Thank

Now X. let's financial results turn our to on Slide

alternative adjusted prepayment adjustments quarter, long-term income corporate. also the $X.XX For our delivered compensation included higher-than-anticipated of in ratios loss of below favorable $X.XX expectations. of we $X.XX earnings accrual This included It share. in and per and voluntary operating

year Full Health operating earnings revenue impact and growth excluding This in all of net income, businesses. adjusted record our prepayment the earnings of per alternative in and X%. Solutions share, reflects increased

in $XXX for generating generation on expect record Cash over consistent generate build the approximately respectively. of and were of million year $XXX to $XXX our track our target. This capital will XXXX. million, quarter cash above XX% we And and million

the fourth benefits of our financial streams business, of significant part demonstrate for in diverse our from the headwinds faced our capital-light revenue can we in results cash and the generate our and quarter the While we businesses. year full

to continue growth. capabilities disciplined we be as We with for new and integrate spend invest

demonstrated Turning generation. to again our Wealth of Solutions. capital year supported strong revenue benefit diversified This the sources, which

billion strategy billion with and to savings full-service billion execute benefits ended our from total of We This customers. of our a $XX with assets. benefited workplace $XXX on includes AUM continue year that annually. approaching client deposits We on focus relentless recurring $XXX the

over had in In billion, year $X which full we outflows an full the fourth included net large we $X.X the plan billion XXXX, of flows recordkeeping, quarter. surrender service XXXX. For expected in of generated

commercial is robust. momentum forward, Looking

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in We of with to $XX expect implemented of year, pipeline to half. first the the billion fund half remaining in the $X billion the second approximately be the

revenues Solutions Wealth generated the adjusted million favorable from inflows equity fee-based benefited net $XXX earnings revenues. markets. for and in generated base, by We Net of quarter recordkeeping our higher driven $XXX Slide to year. operating and were expanded Turning million the participant full XX. fourth year-over-year

broadly consistent crediting investment rates revenues year-over-year. were Higher lower Spread-based and yields. net improved spread-based offset assets

lower pipeline. year-over-year. to assets trend spread should spread-based overall favorably XXXX. supported that our to revenues in Fee-based offset by X% income expect be will net We strong This is revenues trends, such X% higher

spend to continue in investing with healthy be actions maintain customers. for growth to we and our and have delivering our margins, disciplined still while Finally, taken

business. was record a year Health the to XXXX Health Turning Solutions. Solutions for

within solutions and premium retention all growth into expand X% target greater grow annualized of We to drive adjacent the XXXX, our by utilization our favorable markets continue business, lines. and adoption and workplace. sales strong product to and driven in-force our exceeded fee XX% across In core

In our with we in Loss long-term favorable the continued and Stop consistent XXXX in fourth favorability expectations. loss due remains our quarter, to experience ratios XXXX that experienced business

targets This to due we book. increase our to experienced guidance for also products. and overall activity our and ratio affirm January in aggregate efforts customer further our Overall, was our we pricing to the of for XX% claims We utilization higher-than-anticipated met seasonal Voluntary. continued business, loss X XX% our drive value health

fourth a quarter. revenues. record, $XXX including XX. revenues grew retention Net Slide year-over-year, fee-based of strong nearly to the $XX million reflecting Turning Adjusted sales, operating in added and were XX% favorable generated earnings million

margins the year. were Adjusted approximately for XX% operating

were business As planned, our adjusted operating year-over-year to mix. due lower margins

capability a consistent profile, Our margin administration has strategic business that XXXX, lower now in benefits a with administration we includes which benefits added peers.

a Benefitfocus Promoter Heather and Net enrollment As significantly experienced open mentioned, successful completed Scores. improved recently

XX%, XXXX to annualized as and to XXXX of our is strong expect in-force on in and continue second integrate of longer a term XX%. premium adjusted expectation new we exceptional is the capabilities of range margins margins service. be consecutive off expect We and XX% operating overall for we to at least growth year to improve start, deliver a to

investment for strengthened XX. enhanced XXXX has Management. transformational Turning global a Investment to been our Slide and distribution We year our solutions.

with to clients was year excellence in our industry. challenging what serve We for the a continue

net attrition Consistent the business. of broader with year experienced our Full Institutional represented outflows X.X%. organic we pressure on industry,

the are and of behind XXXX in Importantly, are outflows one-time approximately net now X/X us.

to Japan which was the our due client impacted strong half tech. of taking billion to in also fourth AI of of year-end now timing first X It higher year net in fund global profit mandates, the Specific the are and a expected XXXX. than by quarter, following to $X.X outflows expectation were in

to Looking to return positive XXXX. flows we in expect forward,

income our puts record across position strong was fixed our of capture classes. rotate a several Our broad confidence on to is long-term factors, strategies. fixed of driven continue XXXX, Notably, assets us back investment we including, which X-year as to array income in first, asset a by track strength in clients performance build leading of performance in into

has Second, return we to private as led confidence in increase are commitments, including client an volatility seeing and commercial has to estate improved. This insurance real market client credit. start

Pacific And Asia benefit dollar-denominated finally, our from demand continues region partnership the distribution for in U.S. retail to international solutions.

Turning offset grew year approximately XX% $XX Management million by in to fourth retail markets Slide higher impact international favorable from Investment $XXX operating XXXX. by higher lower adjusted in of AUM, full in earnings assets. and and partially full million driven of revenues delivered quarter XXXX year management XX. the fees equity the institutional Net

changing new expense margin We integrated environments, to took XXXX and year-over-year. lower significant to XX.X%, adjusted investment was which adapt we while actions created was greater capacity. teams in XXXX operating

continue further prioritize taking actions are investment in and growth in initiatives. to XXXX We expense

ahead, commitments and all This compared XX% across insurance, $XX diversified includes channels, at to remained billion. XXXX. including U.S. billion and pipeline nearly client is And steady expected higher last last same time year. $XX quarter our probability to high in fund is Looking the unfunded from institutional the

Turning to Slide XX.

generating to differentiate over over including in builds $XXX capital of free XXXX, generate We us of capital our generated record the approximately $XXX at track which in fourth Our peers. $XXX continues excess And the we cash expect approximately year, to strong on of in from XX%. million capital million generation million quarter.

capital share via dividends shareholders Our be XXXX the actions focus on and reduce to deploying debt given XXXX. taken in to in will repurchases

current until capital our quarter conditions we We quarter, will continue generated maintain position constructive. the capital the in the we to deploying practice in and the become macro excess expect more prior of

XX. Slide integrating key on on In we strategy. our executing to focused and capabilities Turning workplace acquired XXXX,

capacity XXXX for additional areas create opportunity to spend net our managed also We revenue invest with in to debt and earnings and growth greatest beyond. the in

plus, beyond, driven $X.XX For XXXX, is to operating of profitable businesses, XXXX and we free by our margins the consistent record. diversified $X.XX. flow. EPS cash This strong supported in and XX% growth, to and improving growth In EPS capital generate revenue continue range return our capital-light by with expect we significant track be of which expect to historical

turn let's that, With answers. to question and

Operator

Instructions]. [Operator

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

John Barnidge

Can you strategic talk Is it Voya increased on in there? spend that operation of India was corporate? any standing year? about What's completed the last the up focus the

Heather Lavallee

Thanks, John. It's start. Heather. I'll

of what's we give and of continue management. I'll So spend focused our the reminder strategic different driving in increase things, that some a at to on being disciplined expense couple the be is

we're But a few really on in key focused areas.

international management grow making support be our expand and private to technology and is our base. well First, franchise in business as within distribution we able investments client asset growth to that as alternative as our client

year talk the and record and us heard about to start results. the Second, the in record Health, growth you've

teams We has in very expansion, shown underwriting in team and have growing the distribution results our Loss our which our our growth. up terms very, to strong invested support sales mid-market in of X-X Stop

advisers improve within as As sales investments team account as made teams are growth drive and as in all be Wealth the able client-facing our to growth. managed our and well And our focused revenue retention to field, business, well integration. to driving making drive as out we revenue phone-based really well as to of our mid-market build have investments on deeper strategically those

margins to have Voya about across Voya in on India help delivering focused we continue comment us but on innovate, the your on strong we our that environment our across find also To focus drive how that to leveraging remain continue to IT simplify be a India, will business. our and ways can footprint, do is continue And to to we we business. efficiencies focus

John Barnidge

think, question, about improved M&A There's talked I an been business. follow-up I a pipeline but captured, think my has that's of And international, through component and not the Investment Management U.S. there. out distribution you some called

pipeline about So could international the talk the there? for you maybe opportunity about you how think

Matthew Toms

Absolutely. I'll Thanks, color Toms. some you that. Matt background and John. give This is on

with partnership we're extremely AGI. have the about excited globally So that we

continue created that year plus. to over in We upon as build really the we last that XXXX,

upon what that overseas we for billion to from is we internationally, channel, changer It's and product only if there, of look expanded a international flows our achieved to the that have. we've $X reach us. Importantly, at really capability coming array we in game build continue

we happy pipeline internationally, as the with So you're in right to we call move have it's only -- out had the But year. the this really historically something and U.S. turn. and as have excited building we're through very

Operator

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

Thomas Gallagher

on First perspective? margins supplemental drove earnings. quarter question this What is a the Health just product weaker the lower from Health

'XX? Guys, to about that, be talk And into it assuming guide that, is gets like heading improve whether your that confidence your looks Can you that's going better. sorry. I'm you level muted. might

Rob Grubka

now? me hear you Can

Thomas Gallagher

We could hear you now, yes.

Rob Grubka

Okay. Great.

Tom. So Thanks though out difficulties. is with start technical I'll Grubka, for some had we question, this Rob your

the the results. that in different say or just is was recorded the first, but incidents fourth in typically this quarter occurred fourth amount actually seasonality was What voluntary see second So is of third. in we would where quarter, quarter I

in more And year so this elevated looks that prior years. seasonality element than

and this So and point. industry. to time we dramatically talked as his trying a long to highlighted of this think customer this past, over customer of the business is well, the for in is at we've comments that grown something margin that really period act right Don about service the a in across business strive value have for value, around We balancing

and for to doing trying this, always right that process in putting thing making in sure alone the we're aren't strive place. We

for claim we'll on about service talked in things helps it again, right we medical balance. perspective that and, them. being innovation from anticipate that that support focus place, we've an is to to a And in activity able put customer customer continue past the and integration We're doing easier strike making a claims

I'd close XX% is business with to XX% come we in. to expect the for where

the earnings, sustainable, at is in think felt results you we're range. little what record full and back below choppy XX% well to into ratio, step why the XX% the the which do you loss year guiding Health, bit but year, we If XX% I know back look is a full have results,

Thomas Gallagher

the trend. Rob, So in nothing XQ there's from a results

more expect like Stop little you the seasonal also consistent view 'XX you the throughout expect there throughout course to you would the that be results sort a least and that -- some favorable had consistent at But it would to little a more I of means you as would you more development on First, the business. Health? bit because presume of course 'XX Loss be of 'XX on sounds of results

Rob Grubka

Yes.

quarter-to-quarter look, than ultimately yes, think expect to So 'XX. totality, talking in a would I see volatility we in was it more

think can confidence. of lot say I I that a with

and be period, understand consistent to period book going to a quarter-by-quarter, are in But look it, look, volatility of at we there can where the these that was more 'XX. Stop as products, we see pattern drove ahead results but over the Loss particular, with what business on

Heather Lavallee

Heather, it's other I add maybe just can if Tom, point. And one

important think ratios with on concluded, while step to that have Rob we kind this it's loss managing back business, is I an growth organic in a of effectively. outpaced do, broader very continued to Health as drive

X-X tremendous a be we'll have that going got team able confidence to have track proven through his the we've the and do that, start of as forward, that year. we and by record the already doing Rob

continued feel So very, growth manage about ability very loss Health. and on the the to we good ratio

Operator

KBW. line come questions Krueger next with from of Our the Ryan

Ryan Krueger

on a question the was one first higher level My EPS guidance.

rebounded, market which happening. the more the there to of the you upside be I had said had XX% XX% ended towards and CAGR could EPS equity quarter, midpoint think last if pointed potential up

understand things think was I just EPS CAGR. like Seems guess, points that. But the lower were I different to what the towards in couple quarters. at level guidance trying kind you of of 'XX what But attribute the were more a there high few the you ultimately, impacting 'XX thinking the outlook EPS I maybe change for last maybe a your half of versus

Donald Templin

is Ryan, Don. Sure. this

than growth all lower last in in also So cash profitable as XXXX. beyond. let And growth we're our we're quarter saying what businesses than going But in expecting start we're to those businesses forward businesses. anticipating of I our in significant maybe lower and XXXX is by from capital-light me XXXX of pace expecting slightly and slightly the said, in generate anticipated

And really, X the things that's impacted I by, in business. think,

Health just talked results, see First, we about record and back to as side, Health, ratios to loss in normalizing that had range. are Rob on XX% XX% we that the in that

Wealth, In have we continue surrenders. to participants

guiding So XXXX. or in as are of surrenders consistent part will we're that look impact XXXX, have And forward to XXXX our results. or the expecting that of second obviously, our we'd half modeling that with

had anticipated. the flows that In negative asset IM, are fourth quarter, we we below slightly starting we're in levels where so with

So business, relates the it to are as components. the those key

in million, $XXX $XXX components. guide full the might primary for side, million slightly were out million our XXXX point up for over X made just XXXX. on that is year roughly We I relatively a to maybe at corporate there's million. the And also expenses. $XXX big That's difference of $XXX

relates incentive compensation. first to The

we and result going in performance that's incentive partly result or largely are in a booked as of compensation XXXX, below as the pay So a to actually target. recorded, alts

up target For to come compensation that will incentive back XXXX, levels. we expect

and in our in our guidance And embedded forecast. so that's

our on on the Benefitfocus. have is attributable expecting of our One thinking based that expense. It's service population about our to of X million expenses addition This noncash corporate employee increase XXXX. more to costs. are We we're in $XX other the also and primarily pension and things relates impacting

little corporate invest also we we expect that technology. her Heather in investing investment. to technology, in talked to to would in opening we about then have a bit some in continue strategic but to related comments, -- be And amounts continuing

that's in So corporate. embedded

incremental so So and you of million our have investment. impacting expenses. And higher of million that's guide or about compensation, cost strategic this incentive or $XX on corporate $XX so pension

Ryan Krueger

this helpful. over then color. margins you can kind of And Management, range Great. trend XX% Investment to Appreciate do still higher time? is the point, was That Or right you a XX% just the think do for the at think business? that follow-up.

Matthew Toms

Ryan. Thanks, Yes.

with growth year. and -- we're that forward, growth, in think we've where we look XX% I and thinking the both And the AGI. that increase -- our we're where the breadth confident business growing, about behind that been and margin prior from an margin. as That's at as internationally and domestically the look very of XX% we matures to the partnership

We're more level. growth that at on business can of focused that the grow. the scope very confident We're

incredibly Our strong. pipeline is

deliver but As beyond the point that at have the that see through margin also We're into on domestically of as and back billion we more business this move that that globally. year focused to to and mentioned, on the continues growth XXXX. place we $XX-plus broaden, in both expanding margin Don confident and bounce you'll further, this

Operator

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

Jamminder Bhullar

I a had and question just your comments on asset pipeline. the on management

been the about been have the I upbeat pipeline fairly yet think for consistently past negative. you've year, flows

the pipeline what into translating versus flows? different net up year? this comfort that And year last gives maybe the you will actually what's So end

Matthew Toms

Matt. Yes. This Thanks, that. Jimmy. take I'll is

and us, of the products to but channels that. the we building with would be to really the really longer I confident really think think term, the the key in the knew really got with the game provides deliver that the short we're term, behind year here changer. of and transformation create opportunity of able I AGI. amazing And have upon We partnership is headwinds through this that's developing NNIP plus the through

step we diversity pipeline that and back look at the internationally. also of and domestically pipeline, if there's And the

lot demand dollar-based a market as we the global market. ability of for deliver in well So assets. the solutions have to the U.S. as There's

a that income performance. very fixed into we back There's strong have also pivot

years door, what and with to his domestically delivering globally referenced and is in Don we and opens for As come. that, look many have to partnership very remarks, performance both a forward our the strong

Jamminder Bhullar

there go? Are gone? those the already is NNIP Or more are to some withdrawals,

Matthew Toms

are XXXX event. a withdrawals NNIP the So

as the confidence behind XXXX that in that's put with and that's while is now our because to them never years and about fun growth that So trajectory to more we XXXX, pipeline much excited we're far $XX headwind us us. while through transition, billion-plus over as behind and And the AGI NNIP. go come. for as decades in And confident a

Operator

Suneet Our with Jefferies. of next questions come Kamath from the line

Suneet Kamath

the you generation, said bit think maybe I XXXX $XXX on cash for above around XXXX. million Don, and a in that

As kind year, out this feel are generation pretty maybe that of stable? any should moves out you as we into look do beyond bigger anticipating years? like you Or cash be we kind go of

Donald Templin

generation cash past, that XX%-plus the expect generation of the We've our of Well, in cash that we sort is really reflective capabilities. had and the in future.

expecting look we for to XXXX, going guidance, of X%. X% the are you businesses As saw in forward, grow to that and our sort at we're

I to businesses corporate, to obviously expect guiding are and a in beyond, pace, we're mean, more to the talked we at grow. but X%. In we was the about accelerated X% I years them happening XXXX -- so to them what grow expect

will comfortable growth incremental that contribute that conversion to because ratio. that, very expect XX%-plus generation We with we're then cash

So that our cash I grow would in time, expect proportion the generation will growth business. in that, to over

Suneet Kamath

guess, in XX% Okay. sort And seems operating to of for then kind and I'm 'XX somewhat then sense. 'XX, at looking low and I'm that That Slide adjusted at I margin of related, targets your XX range. looking makes when me, flattish it

near positive means of just I acknowledge the have you we'd XX%-plus, in some And are I which sort it's kind operating there upside. that have color some businesses, some would just of leverage. scale of thought some that -- some margins maybe see around inflection over Or some the should given we term? be point? But flattish at we expect of the sort could

Heather Lavallee

that. start Yes. Thanks. I'll Heather. Maybe is This with

a growth company. particularly to range been for as we've that in continue generated business, to we've and revenue the that. think to of proud able operating And at margin. still margins, that be exceptionally look public we're And we're of and strong talked operating within our Wealth, business very us fact we you I delivered margins drive deliver in very since XX% the high that across proud about we've that

slightly Don's to operating addition that comment, and the lower lower about again, margin in and, the Health admin time. a strategic, margin see the highly improve that when opportunity insurance to In health for the we Benefitfocus over talked providing business, an we of continue with but specific ben guidance

So what but some loss see our on the the got certainly across I innovation, our 'XX in workplace to moderation operating leverage the to to in to the focus we expense would think continue we be discipline, margins. that opportunity for improvement see in say is on of driving our Health, focus you've integrations ratios, just able

as steady And already Matt talked we Investment Management do about a then see path.

about think baseline, focusing bit would to I how margins businesses. So a continue on we be that always across going in our as to of a but grow we're can

Operator

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

Elyse Greenspan

My first question is on Investment Management.

Can the XXXX? then said that expect you come during quarter those? $XX called to how You to that would guys fourth us give size about that And pipeline in out were online QX. just on moving X talking you you're guess, the the mandates, I billion you of

Matthew Toms

Elyse, this is Matt. I'll answer that you. for

and mandates, of timing clients around parts always as far of as moving a So markets. lot

have forward. And moving of confident if rates, timing we pipeline the really peak of it you think quarter, first about got fourth quarter, was the So middle about we're you've the the in last very quarter.

So always the of breadth size precise, and year-end the continues client pipeline variables. It's behavior around extremely the be hard to and the pipeline be of can but develop.

fixed equities that on of put client across demand. international of pipeline, that can't domestic is importance any the a growing But number income, I when funding and and the precise diversity where. and So

as that number. in the $XX-plus market comment, through And again, confident as is likely the timing client billion stability but far to behavior we year, build and are some a of this very

internationally And the time product also the relationship we build will and to for array the through to move the as with prior we've questions, year. continue we AGI, look benefit the had

increase to start and with out move but trajectory. be perfectly impossible gate And have the we year. as with precise break of client building some through very for market always volatility the in It's confident we look So to we're the XXXX. behavior, it's a

Elyse Greenspan

mandates X moved? those of the that And size

Donald Templin

size The is weighted mandates, to -- there's it's $XX array right? -- year. through -- that's you're on billion equally always X there's of the the be an of So order never going the of mandates thinking well, pipeline,

have the demands pipeline Client the the don't are size as precise again, I So confident very year. numbers. in well. always throughout moving of But

We quarter-by-quarter. year expected the to build through

Operator

from line next questions Wilma come Burdis the James. of Raymond with Our

Wilma Jackson Burdis

talk Is little into the bit good about is you outlook? 'XX, kind of run a return Could 'XX? that rate a capital heading XQ

Donald Templin

Yes.

on make current prudent out been are be thought we in in to XXXX. position deploying focused in we the we quarter. think that quarter We it throughout sort that have I prior the want sure to carrying that generated we're we of capital were a -- practice the where we was

So would $XXX fourth I that neighborhood the first million that in about quarter so we generated we something XXXX. in of would capital the expect be in deploying quarter, of

expect indicated through also capital we've we through to a bias for cash that have that And We've indicated that year. share on returning XXXX our and will strong be generation dividends. repurchase

excess be think million So that those about to capital biased will activities. $XXX of

Wilma Jackson Burdis

returns you're us will I terms to know I this how progress. color And on just X% your a think, so year rate, and some what in maybe assumes, seeing of alternative note heading XXXX? into then give investment far anything outlook but that

Donald Templin

Yes.

Wilma. right, You're

like Our long-term that guidance We continues representative at to actual feel guidance is our X% a the of long been term, rate. that be -- our experience. that's over return

adjusted not So we that. have

in confident term. long that are over the We

this. color a we we and I'll how to maybe conclusion. bit more deviate comfortable really to periods, that. our to little individual got of But of around a little in turn it that in And or had we conclusion talk -- about it felt guidance, give can we around conversation that reaffirm lot maybe over put you Matt when Matt a bit Obviously, from you

Matthew Toms

return a Thanks. do. I any of the forecasting assumption, And thing The is look, something. precisely to and is market long-term difficult conservative think,

we you If markets our in volatility, the privates fixed and you transition very confident And equity, a record, where at into over look and across perform there's of historical right if at lot alt, we're track X.X stand been delivering. years. and how now last income market look

of is delivered over what the it's the the look of time, strength those we So step areas area portfolio, are in as and of quality that and we oriented resilience. back towards, at our

confident because think I within quality So that asset we're of the underlying extremely portfolio.

Operator

the Gowling Our Partners. from come with line [ next Joel ] of Hurwitz and questions

Unknown Analyst

product about Health, talk you in saw premium you with Can the highlighted outlook So in-force across you and X-X renewals? growth. lines just the the what your XX%-plus

Rob Grubka

influences Rob. Yes. that, feel Joel, product high but is this where we'll settle at things And Look, reenrollment activity a there's of to. the guidance And we'll anchor I'll by the dust nuance, is us important let within just product, sort things. level very X-X. that is of

amendments of the book. elements other There's within

a might products. And so a had We the around But little that too otherwise all and the can We XX% have momentum wasn't strong than move we a season. Loss more expect. it you had Stop take Health bit life supplemental really you across numbers strong bad. the should from really look, season,

Again, to on were cylinders. get XX%, firing us we all to

the But number For feel is we the -- just good team us about to get X-X there in totality. and hard working really collectively. worked

obviously, the nitty reporting. will the -- get XQ We we into as gritty give details you

Unknown Analyst

Okay. I have it mandate of AUM? that of on for outflows of And QX. does the what's And levels? And then almost tax one spread-based majority the look was the asset are just spread you the $X outflows the business year. know you flows, full exempt seeing when But the then large in there? concentration called these of going billion I at some redeeming pressuring out

Rob Grubka

Yes.

a is role we've one versus That's position business bigger it business. leadership may the been and So extremely look, in in is market got knows on We've We segment. And corporate a account plays ] that successful. a chime -- [ long she here. where general been Heather TM well in time.

we But as reminder, what and of a sort there. a called out go quarter. first case in happened we fourth in as also -- had a large So reminder, quarter,

the to been particular close that's X a That billion those time, So accounts. cases $X with of number us piece long certainly general a the has from large of story. that was

of look is highlighted, we behavior Don 'XX. where is element nudged best we as out on this in here sit and what things then given as been the we've our our guide that view an seen through continue today have unique will that rates in moved participant sort of environment And has

we to you things back update again, on But this on guiding we'll and you gets given how Those it. we've that's think margins how But be transpiring. obviously, other actually quarter-to-quarter, point prudent to seeing what and, all at guidance we're growth. is we're able the in and that embedded it around are

Heather, do But you want to...

Heather Lavallee

Yes.

the I the of the we've emerges the high Wealth that of serve diversification think time. heard different the flow growth but There years number the broader markets capitalize free clients And revenue able cash steady of been to us are margins, that of step for to really only talk in back a micro. growth, business, to we me, not business. about you've that the mega the in trends -- down over to strong for on the

an sectors report, like but and that the look and continue if to to market got going provider tax that we to all government week's well. you in segments, corporate of will across is the just be us shift to #X we different at And time, franchise as growth steady exempt, some market highest but just from was across retirement feel happen segment. in not last be for we've drive And growth outscale one job able government, to the time

Operator

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

Taylor Scott

interest it curve on had shorter expected year. one on us us if guide, ends cuts is the the think this help you guys And your sensitivity in know I I helpful. Solutions greater curve rate and and sensitivity, they're forward that's or about if to used particularly just First so through know of the the in fewer end could help up rate wanted Wealth think just than But if you to rates. cuts

Rob Grubka

guess part might word, to on start the or a that Well, outside either that what certainly alternatives got be plan. the participant maybe to promoted look, how Alex, is I it for we I'd was was the of that exacerbated, was the in with available value is where seen perceived we've right different market driven by behavior of -- participant might all

the sitting that Again, best we're a around think given how sensitive necessarily short participants out at out. Fed Now and a behavior decides the be for we're how behavior in. given figure we're what participant and I is to itself plays and our of their ends place to environment view guide aren't changes where around going trying

you're environment in the As hard very sort honestly, it quantify way you. to is is any saying, going meaningful to sensitive change. How for of is,

of Heather's the that we're we actions like at point. taking, and we're I diversity around trying -- do inflection feel business into to think an what we're the we're point

grow You markets going went position account faster general through to and us of continue diversity then, how approach we support we of approach moving in continue to allow impacted and to a change the fee dividend make to as and the free row statement and in continue income how the that yields overall. cash the we the money forward is that in money, and that a we do drive us flow to put earn have importantly,

of about provide. lot services factors all that in. retail trying a we an to ways to that we're of and possible. what continue drive effective participants to into different way wealth as to serve to this got the area invest And We've talked as growth are general and want Heather continue an account, mix as is solutions new what

and insight occurs dodging able I'm to hard as answer, one quarter-to-quarter. But those to your it's but because are to really be it things a to going question specifics give we'll your factor in,

Taylor Scott

net the hard earnings? and to through how can to investment see floaters, a but little the gross rate crediting actually And it we it's tell to to just of sensitivity much of on on income exposure exposure the flows floaters, sort specific side,

Rob Grubka

-- can So can been I'm Alex, tactical we've hitting sort to sure But level maybe in we've approach this around in it. then what strategy more maybe at doing our investment let be I just been come rate make out be me high we've and and look, of a environment specific, been so thoughtful.

leaving As account. account, the would have thinking imagine, cash participants we the in general that the we're you about are available there general sitting

financially, from taking also shorter advantage to a so curve of is wise And of in something risk end the floaters was to perspective. that yield but the do do smart

getting that But Or... on And question? edges. that the so some is your we've done to of

Donald Templin

floating Well, Alex, maybe -- our that we rate sensitivity interest I changes. might rate embedded sensitivities -- is that is sort around in the this Don. add show in the of

in -- It's So guidance there. on our Slide incorporated XX, and or assumptions. has that XXXX

Taylor Scott

estate you wanted helpful. is very on I I update And know Understood. in. And see if portfolio. the I to sneak could if slide, which you maybe just could real one more commercial provided us the

in that if other to much how progress will flow? any XXXX us color there give comments can Is maturing headwind you cash and around just any on is there, you unfold and to how expect

Matthew Toms

look very balance question. as loans. in No, and and the When real pillar within opinion of Actually, at we sheet commercial and specifically. far ] of Yes. million broadly, thanks at diversity in our but a XX% across the within [ ACLI that office as position back real in step portfolio, a office also peers XX% for peers, size our strength our positioning the of estate average XXX $XX relative relative loan to to our

we very diversified. to relative of of portfolio detail. CMX, a CMX XX% market. CMX strength from to start the is It's go a strength, to also this from start from position and differentiated position We a into

I think materials. detail the provided We the in stats themselves. speak more for

You'll see positioned. confident office. to will very we're the drive that real I our for estate point Clearly, think in overall, environment well a commercial specifically. think We But portfolio. we feel difficult

Operator

the with Our next questions come from of Citi. Michael Ward line

Michael Ward

capital done Maybe maybe when on how that just that sounds deed Curious last in on that you comment the the of impact like color mentioned, Any question. the of take a quick where of keys it? back. kind and you you've much about that's it lieu

Matthew Toms

Yes.

our maybe of that $XX just strength. in put out statement that's me a the balance a presentation, of put we sheet a be of balance. unpaid And build little on bit. to I call to you're Let context And think a in million the billion, $XX referencing not

underdeliver, what our going likely we that as If will assumption loss office does forward the look to component and as far market the the look with our at as digits is. as and of CML through the far very historically rate. you feel loss far we planning losses losses long-term as guide continue very what We rates, as confident portfolio, mid-single even

an anticipate is meaningful you But million $XX that's really we accrual, So don't referenced. not as any losses.

Michael Ward

within can if the Benefitfocus contribution guidance. Curious the and And helpful. that That's to kind maybe then it. can just call speak you you from of Got health. out on Health if

kind try to sort there. guide figure of organic Just of want and

Rob Grubka

Rob. is This Yes.

So on Benefitfocus, and opportunity strategic conversation the the to about as here, excited we've continues alluded present. to that incredibly in

would quarter be, a the in ago, operating down said [ played about quarter. bowed that bit talked we on we little out fourth adjusted earnings As the a lower ] what as

market focus momentum that the a fee As row of what the the longer cycle the exposure a in capture sales health we because of the from market of hone in also sort strategic patients piece the would in also bigger, business. would here the is the perspective broader getting about -- Health bulk business is required care on revenue business. that on way. and in Health back, within to that and you step see the do health to I business the say I in We've talked

move to we that participants forward to is for care efficiency and of of about effectiveness as it flight with going influence continue health talk do how the well it, we're as things the both in we employers. as spend, So

days how do cost most efficient, outcomes So do employees. it, about spend their to of what's drive an this HR how and going be is going the we bend on, more more thing that for curve, the health we care, year in talking department, influence the they're effective better

to spot bring in bring connect about in benefits excited we together. we totality look of sweet business We're can but do And business a things our in together importantly, savings think what you Wealth we're how really bring as those with the and that us. at and to then, Health the

growth. that's as of where in Don Score, to coming why going spend the wanted to year, to we into your strategic smart about a that future. in way, and about throughout to the going. business where invest enrollment effectiveness on thing the we're this was under think that's Also how Net And Promoter a just reason the big was regardless of where translate be, a and playing going excited touched we So we really Heather revenue continue back and question but open in as way

Operator

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

Heather Lavallee

messages. key an remain each executing experience few profitably delivering capital-light a plan, our for focused summarize We outstanding and on our customers. To growing business

solutions commercial and strength to our Our robust workplace continues across grow, supported management. investment pipeline by

growth are generation in our EPS achieving We confident and and flow cash beyond. XXXX in targets

the throughout to we forward Thank on progress updating year. look you, and our you

Operator

does That We conclude participation. today's teleconference. appreciate your

You time. may rest disconnect at your day. lines the of your this Enjoy

Voya Financial (VOYA) 7 Feb 242023 Q4 Earnings call transcript