VOYA - Earnings call transcript Q4 2024

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Operator

Good morning. Welcome to Voya Financial's Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Mei Ni Chu, Head of Investor Relations. Please go ahead.

Mei Ni Chu

you Quarter us XXXX thank Voya morning and Fourth Financial's Earnings morning, for this joining for Good Conference Call.

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

Heather We with and Katz, Chief will our Chief Officer. prepared by Mike begin Financial Executive Lavallee, remarks Officer; our

Kaduson, joined and businesses, Chief Following and Financial we also Strategic your of the by our call CEO Adviser questions. take remarks, this and Jay Don CEO Voya; heads Solutions; Officer specifically of Investment their of I'm to Matt will on Workplace Templin, former Toms, Management.

our materials release contain within website. and GAAP of our federal comments earnings during Turning press certain statements available reconciliations to the Investor on Relations Slide the meaning are may discussion to presentation measures forward-looking on On our financial law. website. our today's of financial securities and are in some found available X, supplement refer that non-GAAP

the And turn now I will to call Heather. over

Heather Lavallee

thank us Good Ni. Mei for today. you morning, you, Thank and joining

to a businesses us partner many valued a Workplace strong our in Before Jay we our Workplace and strategy. of He's our will I'm grow growth be foundation, for been of happy already new and tremendous our years, from Health experience Voya CEO to Wealth Kaduson Solutions. helping themes, welcome driving asset Jay to deep and a track as industry innovation. and record while our brings turn key advancing

a moment the Templin's Chief over to welcome significant take as Don Financial his X also I recognize role years. past Katz and want to Mike in Officer, new contributions

guidance Don's for and are We insight. thankful

our stewardship our and Management we disciplined capital, accretive including remain in expenses we in to themes with outcome We careful on of December. on Health in future maintained on provided growth. and execute strategy, and focus continue Wealth Solutions through delivered to Solutions our strong on our X. update investments Slide Now Investment key In let's the in consistent an and XXXX, growth earnings turn

we our for in our announcement. in shared fourth In Health the quarter results Stop is Loss December Solutions, the expectations line with

actions including XXXX. have claims a reserves selection, business, Loss confident experience. corrective net result cover will in and that January rate taken and We underwriting adequately within our based on increases Stop risk we underwriting expect We're material strengthened our improved meaningful our future

Wealth full Solutions In Solutions in Management, XXXX, momentum strong growth generated and defined margin expansion the full XX% Wealth commercial $X revenue with commercial delivered flows operating and year up fourth year quarter Investment for continued targets. Earnings net growth, demonstrating revenue momentum. and we XXXX. Solutions adjusted our billion XXXX and of were year-over-year, exceeding in Wealth margin contribution

the were Management's for globally net rate flows, delivered XXXX organic achieved above and flows. terms also strong XX% stands X% net Investment beating year-over-year, consecutive XXXX. of our target. we in comfortably up Voya diversified With X best in investment year results of growth Investment Voya Management's strategies distributed an Earnings quarters and year, as positive

repurchase on to $XXX excess and to XXXX dividends. plan capital in return respect we share of million management, shareholders delivered through capital With our to

to our We approach will and generation increase and excess strategic management, maintain a XXXX. expect capital to capital both XXXX in significantly

$XX second business, along we management. that but value. create the under buybacks good Share half transaction move towards year, continue be growth billion full-service making $X our assets X, nearly of the strategic long-term We are to to initiatives invest January billion in the of scale integration. will the progress shareholder on accretive weighted This on closed spread-based and and adds with OneAmerica in assets

Turning to Slide X.

will our in driven selection January we've Margin applied Stop improved non-January taken our actions by near already to improvement risk also be Our actions continues top priority be margins. will These and increased the renewal in be to the part on improvement term in pricing XXXX upcoming season. Loss block. significant

successful focused we of OneAmerica. Second, integration on are the

have very customers this and from we transaction. advisers announced since positive feedback received We

team. now opportunities successfully set through in and is about on talented to operating focus the $XXX earnings capabilities, excited retention, of to smooth ensuring $XX revenue in Our partnerships We're available we a and and new million transition, distribution managing growth continue from expect a OneAmerica's million onboard in incremental customer broader OneAmerica and continuing XXXX.

driving on across momentum continued focused businesses. commercial we're core all our Third,

in capital to across all to proven our ability XXXX driven our ability excess will deploy of and investments by our X leverage in competitive generate be growth advantages Our targeted and businesses.

to Slide X. Turning

opportunity drive I been revenues core create about our have earnings businesses across growth and that For talking through value. investments our and to long-term years, the profitable past shareholder our X expand

half this expect that of or prudent first to usage investments capital revenues customers during on focused and for be enhance our year our the growing offerings earnings. We

be Solutions, leave Our in our disability capabilities management largest on investment enhancing will in Health focus administration. and

a become important leave and for life, As become an and complex, has decisions in purchasing in key leave disability supplemental excellence products. administration driver management group differentiator has more

customers leave are from XXXX. of interested supplemental in solutions bundling Voya, employers our XX% Today, approximately purchased health single management XX% also Currently, vendor. from in a up from

[indiscernible] Mike our XXXX. expect Solutions, our top Health in broader Solutions, high position retention the our market. In win discuss Health our in capital will approach increase will health improved bundled moments, primarily rates few strategic investments allocation leave We X to will a in management, competitiveness significantly supplemental and reinforce in

Life. Sconset Re In anchor Slide to closed an we our annuities on side Sconset reinsure on investment. X in turn car investment form by December, Let's to a for Bermuda equity the Re, overview Allianz issued

providing return yield an other to participate Our strategic of us also of insurance several allows while stake It industry. Management for Investment growth in prominent management rapidly Voya. the the growing the annuities Voya substantial in a a market, will attractive role benefits. valuable It provides segment in investment with Sconset Re asset

important strategic position strategic long These scalable growth financially term. track investments relationship our this asset deepens our market, record to with management another execute over and insurance strategy for Voya's within attractive in our grow our Allianz, It strengthens industry-leading represent income. providing the Sconset fixed partnership. in also opportunities highlighting business on private the avenue proven

more details Mike will Mike? on that, now With and performance results. our provide

Michael Katz

Thank you, Heather.

Before strong turning Don his leadership like also made he impact has I would results, Voya. and the to thank to Templin our at for

forward building CFO, our success. upon I his As to look next

Now This let's for year. results to full our $X.XX turn financial share on delivered adjusted We to X. of the per Slide quarter. earnings the the operating $X.XX fourth reported in contributed

Our expectations. were full results below include our long-term and that prepayment year income $X.XX alternative

to X%, Alternative both Prepayment year-over-year. interest higher were sequentially expectations income returns environment. income approximately long-term below and due the rate improving remains

have prepayment accordingly. to lower expect updated XXXX, guidance income We persist our and in

ratios targets, by throughout which and cost Solutions, strong XXXX. and the Health by results fee-based revenues were net in segments in Wealth impacted higher these offset revenue results discipline. Solutions higher margin driven Both Our exceeded and loss Investment Management

Free cash was XX% XXXX. flow conversion approximately in

and this increase We generation both will expect shortly. this XXXX more for XXXX. to I cover to in capital detail in continue, and

me With results. to segment that, let turn our

shared to Turning In claims January Health Solutions on have Since for Stop unfavorable XX. stabilized. business. experience Loss then, we Slide XXXX December, the

XX% Note We complete XXXX is have due January approximately loss quarter estimate loss is year-to-date above set this December the ratio of and fourth ratio for XX% that the the to reported true-up. that XX. XX%, cohort as the cohort at

cohort ratios our on our investor make included more clear. to supplement in this by loss have details We

our future Experience claims. will be further sufficient to reserves that cover in January gives us confidence

pricing of underwriting were margin would second premium the and Looking plan with to actions consistent X XXXX growth. call taken over actions taken. our into in I out half the prioritize XXXX, key

which an January First, average, cohort. for a XX% includes much underperforming effective on increases the net we This XXXX cases. achieved rate is of higher rate increase

selection. Second, we strengthened risk improve our to underwriting process

on we claims known was new were pricing business. focus on both renewals ensuring and appropriately Our

As of by XXXX loss the improve to XX%. result for these to the expect a January X% actions, we cohort ratio

expect earnings Stop Net Adjusted to revenues operating XX. for adjusted were Slide experience and million margins which year. claims reflect improve to this year. Loss, in the $XX Turning operating unfavorable the we

above expected driven were the in higher we claims voluntary, Within fourth utilization. what quarter by

Looking consistent to for voluntary our increase to ratios enhanced long-term ahead, with customers. continue drive we XXXX, plan expect is our loss value which in will

improve X-step and by investing actions new Loss. continue expansion taken for in margins as to for Loss, in Overall, leave expect process to meaningfully improve are XXXX. net into revenues Margin in XXXX, plan we capabilities and Stop management a we Stop driven XXXX will

prior Solutions. in total net Wealth fourth year. in nearly Full quarter, successfully we we X $X XXXX, contribution sales, that billion plans. in strong service as success to defined of of generated XXXX funded In recordkeeping mid-market driven the which Turning large Xx the Commercial year. continued flows grew were by sales the

XX impacted Wealth despite While retention. markets equity Higher the effect XX.X%, surrenders, strong strong for contribution have average values of Overall, in basis on up and points net markets net counterintuitive defined account a are was retention flows Solutions, it positive year-over-year. equity flows. increased XXXX sales which does

$XX in we year Looking commercially, pipeline. our solid into with wins XXXX, expect over of a billion

revenues added mitigated net increased on from above from high actions end we guidance. as Turning full million to and Wealth while markets. In driven impacts of the Higher favorable fee-based participant by up revenues XX. expectations the accounts assets spend. were $XXX management margins outperformed were XX% generated earnings year. our equity revenues Adjusted year-over-year lower for were controlling Slide revenue yield. operating we Spread-based we as spread-based Earnings Solutions, net and

net earnings In and we we flows. acquisitions, in of with do from line expect volatility revenues Typical XXXX, expectations. expect OneAmerica with added some

to transaction a is earnings now new However, start and with great Feedback that to the is off closed, fully and clients continues positive our be reflected are This partners. integration. we distribution from both in very guidance.

growth Additionally, due from XXXX spread expect income and we in levels moderate to high margins to lower investments.

spread expect implement wins as We strengthen lower billion we asset Wealth expect over offering. retail $XX be lower targeted and contribution spend defined of investments our to Management income given balances, and spread to higher we

Total Slide our on for and Voya billion, $XX.X total Management billion XXXX. drive a to Investment $X.X XX. executed as for contributing quarter to plan to year has for inflows Investment organic we of net on Turning XXXX growth. were a been expand the Management pivotal margins

across managed Insurance assets, our strong and We Institutional, clients relationship to advantage. continues flows XX expanded market investment-grade billion international of Retail in insurance insurance with intermediary across retail and a net Re. in half U.S. channels. in strategies. credit XXXX leading our over establishing In drove with our Allianz both the nearly including cash and $XX be credit of flows positive competitive asset Sconset private over external partner multi-sector, was position demand now management

With trends, sustainable. respect assets on yields industry client to levels external and expanded XXXX, counter these in we to expect fees, be to

Management, Full of high fees in year and to In million the quarter, results continued the Turning to fourth we Slide plan. earnings operating full and which contributed grew margins of XXXX operating ahead earnings growth revenues guidance expense year performance $XX margin expansion Investment XX%. discipline, strong net end were in our Adjusted of above included XX. XXXX. supporting

on builds clients and where momentum track which We performance, delivering differentiated XXXX. private This income and record fixed and into our strong includes provides heritage, globally. continue a for excellent have outcomes public to deliver long-term investment heading are solutions, we

margins to XXXX, in consistent as cost ahead XXXX we we expect intermediary private adjusted U.S. capabilities distribution. operating in with discipline and to XXXX Looking with investments targeted balance be

XX. Slide to Turning

capital approximately started balance program at our and approximately our the fulfilled shareholders net debt of completed repurchase XXXX. fourth share upcoming quarter. commitment $XXX to excess the was ASR in quarter, third XXbX-X million Our to the return XX/XX capital In maturity. million, in $XXX the our This of we of remainder

and investments. with capital also will growth well capital. that includes This between balanced year, be our Sconset management expect approach our of Re, above more partnership Allianz for returns excess growth capital return capital SconsetRe. capital our cost we to OneAmerica year-end are all and investments deployed Our leave in the

debt a of As reminder, proceeds the recent with the will first in maturing our we debt retire issuance. quarter,

and growth the weighted in year, stock repurchases plan. of components focus important as first to on We our continue towards repurchases share the half common to given of management half. Share be our second dividends expected capital view are the investments

to on excess Slide outlook XX. capital our Turning

profitable We call. the third expect highlighted and capital excess to our Stop our repricing, improved in OneAmerica deliver continued across growth This by on XXXX acquisition Loss as businesses. will quarter generation driven be

in million these expect our generation $XXX increase capital excess We by XXXX. will actions approximately

increase Stop in generation our and across to back Loss In our expect from continued a XXXX, excess businesses. margins growth we restore benefit profitable as we further capital target

to Turning on our outlook Slide XX.

expect we in to million As normalization we guiding performance excess to favorable both both of Note, before are a fees, investments. growth capital of incentive our slides, in highlighted $XXX compensation and previous XXXX. were approximately generate which XXXX in

are we generating approximately Finally, we to return we repurchases expect with balance investments capital as share the half and dividends. year this growth

Before to your turning I to near-term questions, key reiterate like priorities. would our

of execute in to in third, First, integrating capital and in Stop improving our second, drive commercial loss improvement each ratios momentum continuing and businesses. These successfully on will XXXX. OneAmerica; XXXX generation Loss; the and priorities

operator for to turn it over now your questions. I'll the

Operator

Fargo. is Instructions] from Greenspan first Wells Elyse with [Operator Our question

Elyse Greenspan

wanted XX% that for weaker the leave ROE said pieces right, the to presentation It XX% I year. You to investment right, result, moving XX% guys to guide, me, the this I with XX%, So last to year? with start management. at Loss right? outlook the guess, Stop had been in seem like the

And the target that would when your XX% brings lower get that remarks, results? on there prepayment be expectation to did prepared anything then 'XX. the also if you not sure you Mike, say, You missing bringing back you you XX% Loss expect would back in target within OneAmerica. 'XX ROE income range down. And are that else then that gets to in Stop to I'm I'm -- of

Michael Katz

question. I did the through step the pieces of here. generation really specific a got cash might give land the not think And I'll you've free we majority sense Thanks did but give Elyse, XXXX. bit, for it's in about EPS think a maybe flow EPS guide, where We but a back the Mike. to

would is up generation XX closing mid-Xs, flow I of approximately XX% in at ] a free EPS the X get cash [ to our about mid-$X. think that

net that $XX If primarily on leave. you million do talked we that's investments, of growth that about,

than You're less going get $X. to slightly

we'd to think that the we a relates high be on XXXX And have ROE I for As growth of I the end it above XX%. XX% know if to as investments, guide it piece, XX%. range. we the that adjust of about would

Elyse, maybe named make hit we're your me all Now, of them, let just them the with sure I variances, you think but to to complete answer.

would that loss well. voluntary the the we in Health you XXXX. note, I on ratios So affect journey a first, value around mentioned customers products, leave enhancing Solutions, I our as to investments did just on does also in are

of are lower spread additional also of new income we're billion to Wealth, we expecting that fee that's plans. be do One within we by -- aimed to at have Outside Second, XX over offset spend implementing and increase, income. America,

piece a that. is third The share We give of do sense repurchases.

year-over-year, on So highlight accelerate time. And where I that think being would Elyse. that timing finally, piece, versus economic. you million. as not down approximately we're to is that this It's then prepayments, guiding you have over prepayments $XX of just mentioned, the really income I investment

Elyse Greenspan

you weighted, on Okay. half very more your And a given the amount to just buy it's first is year? going buyback, are then of minimal back that shares half second the expectation that in of the

And would next to I then, my not question, year? that second know 'XX just would I kind on of out to Mike, of but XX% go the, expect that now, right expect you guess, last to back ROE you you're piece laying XX%

Michael Katz

Yes. Elyse, the thanks ROE coming for piece. back to

leave earlier, if of So adjust investment, as for mentioned north you'd the I XX%. you be

cash as a in but also we generation free flow to The only other increase piece flow generation not the 'XX, material. We're trying expecting XXXX. we're this is cash shared anchor meaningful free to in in

XX% that XX%. back the is absolutely, to get So to long-term to journey

repurchases, relates I on second it the primarily I the mentioned. the was focused half. management really key the them think Sconset important piece leave and just Heather share As just of the OneAmerica piece investments, would for some growth to mentioned It piece, reasons in

about I would we thought to though attention your point capital. how

repurchases share mentioned X-year and over about that talking XX% You time, of of flow year. XXX% of billion approximately But this over cash capital. approximately dividends. returned free look through $X.X return we at we're of XXXX, We period

and see opportunistic on those shareholders of long-term think do our going that I going we investments, shareholder all with commitment our come value, come. when to they We're they we're X them, it we pieces. is to see that Growth when be but to

Heather Lavallee

couple reiterate investments, commercial point organically And being momentum Mike's Elyse, is in to as or opportunistic inorganic. driving be want been a talking committed of about I'll capital they just and that balanced years, to being continue with we've through the final to business shareholders. And be value around we opportunistic we're returning in the whether to for

Operator

with Our next Evercore Tom question is from Gallagher ISI.

Thomas Gallagher

disability any First leave that 'XX? $XX Will strategic Or the zero million recur that and of question we on can management out? admin. spend is into

Michael Katz

I would expecting primarily leave we're also XXXX, from is XXXX. and think it's of that not that administration, disability assuming Tom, but it that in impacting the only revenue Mike. of we'll from part short-term be

this kind So in we positive of see as of a more breakeven earnings and XXXX generating in then XXXX and beyond.

So deeper and about get we'll about I year, the think thinking right, more talk But we obviously, as Tom. you're XXXX. more it in

Thomas Gallagher

Obviously, range to majority improvement level wide That's on looks from then the risk And rate selection, it XX of just not Stop helpful. actually trend. expectation. And XX is to ask the I the like of want about very XX. a the Loss versus

an side looks way? you situation. on you lessons Or What out it are better considering, had learned? led confidence what that in gives that selection you you unforced this Just like figured into error risk the underwriting a the

Michael Katz

Sure, Mike. briefly going Tom, that is that think rate get the view bigger gleaned just I risk of selection, improvement question before on to I'm hit in increase I XXXX. the as properly to which piece important. And your we you the it's

So business. for did rate that average we January as a net increase, effective average. achieve I an increase would on first, XXXX the view XX% the

addressed our we talked increase of So kind that underperforming some the frequency blocks, look of XX%, higher we the claims than was about of at and pricing. higher when much in we've that

it claims. risk a On key the known really on is selection, focus

key that a following book calendar as and that that's emerge at loss about the January ratio on see looked known when a higher year to XXXX, of claims making of within prediction the claims 'XX think in And in in driver business. the was we think we in going prior year. So calendar we how

just [ priced trend X% mentioned the higher fact first, it's the that ] that Stop that, feel for To your we first much I when on adequately question leverage, that's much, about addressing this, for. was dollar Loss

holding firm we data. on for request Second, were

wanted that third, most the that in quotes. full last saw there's So as you this to a ensuring year, margin team before see and results. as element over of growth, the we strategy the the And and finalizing we understood was premium talked recent data about that strategy well

Finally, very outcomes I've year of we're as that X% communicating pricing and what this this team worked to the the very the at end closely to as XX%. sure make with underwriting of comfortable far we're with

I comment, on there's question the XX%. because just make a Tom, other might I know probably just one

very are reserves that fourth sufficient the established to that We will be confident we claims. the in cover quarter future

can we're we've not at only you As this external And had looking this importantly, now on as been imagine, eyes in February. but internally, we've well.

So strengthened quarter and that future how going put our just January up sufficient we emerged, chance is a had we've the to what that's the see has in to to data fourth cover be claims. confidence

Heather Lavallee

have that following looking same what years. to right only response of sense also And Tom, seeing of is And business you book the at are similar detailed 'XX now very very scrutiny. with in the non-January very the prior Mike's can of it's we would I closely the we're imagine, build completion is the trends

And so we it. close pricing, stay year to increase to we held but has going as continue to last well, we're to took the actions think, very

Operator

Krueger Our with from next question is KBW. Ryan

Ryan Krueger

more I about was on particular, guess, I OneAmerica. shock more think, than volatility question this I lapses from first related XXXX? how give be assume flows. perspective the there guess, to in might think can normal on would you wealth My to I in any

So to that? frame just any way

Heather Lavallee

Thanks. Heather. take it's your Ryan, question. I'll

getting on the -- look So think 'XX. look about I'll before as back do to you 'XX on quick

that that are in full think the 'XX XXXX. the our bit is billion of delivered So little mentioned. specificity about strong. in The we year XX.X% wealth really, what retention in X flows, planned A business theme Mike DC main the and fundamentals more you the as

Our full up for year-over-year XX% were service sales 'XX.

So just thinking about that momentum.

for comparison we look into for full see 'XX that right time XX%. sales service we now take up 'XX, known is we a of the same As XX, what do versus same they're at if

So important metric. an

those that 'XX, XX some referenced plans will the and that be are already for that within are Mike funded. And have one, clarity, we funded of implementation. -- plans just billion of which

to To OneAmerica, your the of point you assumption our retention the of on that book reminder, XX%, XX.X% so as a business. just compare on was

into throughout little but So year much our the our financials. that as of and go in noise guidance flows, will a create bit it's of terms we very embedded

of the the do we of And so in into feel end at day, see fundamentals heading strong well. across terms that 'XX the we

Ryan Krueger

Stop Great. January, Loss. claims you And then that include get year to what the percentage When just a for cohort? quick would of full typically on you one

Michael Katz

not question. ask you it differently? maybe Ryan, Can your with tracking

Ryan Krueger

of You wondering too? XX% was December, said you in does much what I increase through that had the claims of how were January, the at end you and that

Michael Katz

to about to really way would just No, is QX That's with complete January. I X% I completion. another us Yes. and it. QX after would Ryan, important, think XX% approximately respect think the of

Operator

is from question Alex next Our Scott with Barclays.

Taylor Scott

I 'XX. the if I'm in forth. about Health. just ongoing assets to some And not on comment able like going to bring things I I'm to sure a there a of of investment, out? people asking and probe Solutions that expenses? pretty be of the concern it's wanted maybe could you optimistic bit or in that you on just 'XX higher make Wealth of also we lot and And just onetime on other to rate the of in just investment because to the they about But business. level in 'XX, I in from on went Health a guess, my Is continue particular, are 'XX invest run need and back just is to there's to capabilities whether missing that could think you'll things so and leave want need get build more investment Do make things on some ongoing the Solutions seem nature to sort growth just in then little

Heather Lavallee

financials. standpoint, strategic pass and to Mike then Alex, from on maybe start the a I'll I'll it

out the is where a management investment to of from investors of to perspective a think call view specifically it's one we in we're we the So transparency give investing. reasons important leave wanted

customer But capability. in really within strategic price right products. of a have I'll having insurance group hit the on seen this where provisions experience no about insurance It's we or longer your And just importance matters. significant trend the

one of license about in opportunity. and been actually continue the lease And leave our by leave making our in to component that XX% And they're -- on with often, workplace. where insurance evidenced we so of And that's key primary supplemental. it is the a of a shared really group XXX% of and around employers see is cases have And decisions supplemental, that grow that's wins have fact investing of the the this that's presentation the cases a some leave. disability who we stats bundle very going in an really today, our we see We've opportunity grower and to there. we and significant one fast think

a years the our just very the taking end about in about But at the -- don't coming Wealth, Management investments a clients, of retail often in provide we've think Jay maybe financial in adviser. talked we have access Wealth to and that our on as will briefly more strategy. and very lot day, Wealth, And making

offered advisory to of also And and what's capabilities. through so capabilities the needing they really and workplace look out broader plan

that we ultimately to investing of make growth. and is We're productive experience going in think for in investing the clients advisers. also technology more our more we're to advisers number there, the seamless capabilities drive So onboarding

But Mike?

Michael Katz

kind the I just with reiterate Health the moment well revenue with as ago, as Heather about just on leave as we the think exist next a will build is the year. a next get portion do but of the have paid what look, administration we for short-term onboard on those I around that Yes, Tom in side year, Yes. how of question No, offset only shared disability. leave expenses

to that's about. piece think a so And key

the would you Wealth. think said, a But that more the was across considerations that and piece. intangible having We guide the say just Heather the did on OneAmerica a for technical And XXXX effect done is an everything thing modeling we reason OneAmerica's give we in the as and the I that obviously commissions on on normal your side, of -- haven't I in seasonal effect Wealth kind effect note all segments. before. include of the expenses only the have

Taylor Scott

Got it. actually guide the to, over And piece mean, $XXX I million are pretax related follow-up pointing you I little there. XQ it the to guys looks last that if look maybe earnings. Wealth, a a of In at

I think about $XXX all, a was it around year number, million. the ago, I normalized after think

in XQ, about showing and more when So to I I'm from that's in year? the is growth we seemingly not begins XQ? when But a unique bottom XQ whole think Or grades anything little there. there? in up line yet and it to lot really weight just there's it that to the about trying a contribution, understand throughout whether I maybe $XX million OneAmerica some not and 'XX. And it get it's contributing of think OneAmerica the is that

Michael Katz

Alex, was $XX large Yes, quarter, implementation. investment is a lands in mean, that Heather plus that of I and first there talking as think about, just around I Wealth billion

Obviously, be there'll revenue an beginning year. the having at to follow. that's the of So effect

respect continue the picture add for you to see within To big and bit fully down expenses to with income $XX were Wealth, of plan that to earnings offsets mentioned. offset we're on your be I expecting And where year-over-year. balances question, just an also of spread is spread one a million of those

Operator

Our Partners. Joel Dowling next with question & from Hurwitz is

Joel Hurwitz

improve doing the the needed business Or response experience And to that's higher? the voluntary or what this provide on to do Can of is persistency you drive driving business you're competition? color is growth? some loss just in more this higher in you think

Heather Lavallee

say You I'd a for Joel. question, the Yes. think Thanks about of right? voluntary. couple things,

in that high space low insurance group the participation to rates have you're are the So it's typically in going where XXs. teens, unique

to XX% So I XX%. think somewhere

frankly, wanting want talk important we we customers these very our when about value, increased to So client utilize to drive products.

customers And are we ticking of see we is, claims see then means couple higher one, so these utilizing about would the think products. which when trends up, our know the utilization, that experience number that we I

you what got I what our would share do how in with guidance able is in stat the that participation we're a from high-XXs. But moved We've is we one business the and into traditional up voluntary of to supplemental where today. and rates increase So persistency at these Benefitfocus, on XX%, we're right I'd focusing open when we for we enrollment utilization see XXs. high our the in look products watch through education, the low leverage about

whether higher ben key they the is are because drive So clients rates, capabilities, as the of value participation it that participation administrative admin, higher these the it component really leave that's see seeing rates. be you whether products. real that's And be or

So think competitive I -- utilization. thoughtful about It's necessarily that around this sure really clients has versus the ratio. loss pricing really way getting very are and making the that's them would the on been pressure

Joel Hurwitz

That And Okay. disability. portion on sense. disability the forward? that Historically, just short-term start retaining wrote, it Or to you that that you've the plan makes of disability but then you'll a business just reinsured and retain? of you do is leave all moving

Heather Lavallee

liabilities leave the for The well of and disability complicated influence had frankly and, release, don't as tail increasingly and employees. leave we the say is long-standing that for long-term was disability. has reinsurer relationship in-source disability strategic rationale capital the experience for to a administration, employers is us I'd to we've frankly, a have with as the that absence given customer us

have they on or about leave leaves. somebody and to think file out X X You maternity going

experience ability most important. So thought was we the client our influence to

like of on near would risk, to and be have the taking partnership the that will one be we the tail we're going the taking say, the time. in space is I the things short-term where without we this of the with disability us, some in grow term. for we us it necessarily But over arrangement that to focusing in on that's So allows

Operator

Our next Wes question Autonomous is Research. with from Carmichael

Wesley Carmichael

follow-up A on OneAmerica.

you through volatile. provided more color impacts And But as is will you You that I net that? that flows surprising financial anything maybe was bit the you perhaps you be the some little But retention integrated know a talk renewals? and just acquisition about that there. experience can saw now closed, reiterated

Heather Lavallee

clients couple OneAmerica certainly be spending clients. surprises part Voya would advantage I've of market, this I had invested be the with things excited can and to And very pleasant already some and a think stayed close a new particularly we the have maybe and digital to mean the in. been Yes. But able time They're and advisers the the the to as refer we take things. I some to announcement. OneAmerican them that of to very, I to is of of couple of bring that in of favorable experiences

employees, thrilled are the talented very, We welcome team. to very OneAmerican

on say surprising. point, we the in that line with this would much at And the very see. nothing retention, It's I guide

for so And tracking much expected. us, just very this is as

on same I reiterate other they're to do ready that platform, the recordkeeping the very our period a would smooth think able be to is much implementation because time piece the teams And we've I technology are outlined. over

continue So of and to million just expected. reiterate we the $XX surprising, nothing accretion earnings

Wesley Carmichael

XXXX. little active and a needs there expected. over Got maybe capital it. have be through in bit maybe pretty last couple been would think years, Seems then back to I But my on I M&A more deployment. if think And the of follow-up than a you've some of recovery like

So active just M&A forward wondering if to where on be going front interested? the you're you might to be and be -- expecting still expected

Heather Lavallee

tried with Yes. accretive. expenses OneAmerica. in the that to I not talk well very capital We're this full-service I pleased think very think it scale both and us as as also management assets highly is mean spread-based at very, was We disciplined strategic allow highly only with opportunistic. about something we've to to business but being

think and points and of a have on to strategic is both opportunistic. will couple Sconset that, I'm add sure We Matt Re,

attention that we're and would both pay can for look say to we going capabilities. to opportunities that scale something it's can to So that new going potentially we're add businesses I our we

of done growth, final lot coming which And a be more done I accelerate a we But an a efficient us to with being think more bit I we build. comment with you're Think we've necessarily in capital is opportunities expect of inorganic what great builds. a on can AGI, are as on and organic than the like well board, it on as think focus to Jay partnerships. going think focus the to use

Matthew Toms

this Wes, is Yes. Matt.

our attractive, assets, income and example A have capital private wisely which Sconset. loans, on the build insurance fixed a few build play management mortgage to we quite well, of capabilities insurance using in namely, acumen leading where quickly further fast-growing, the is maybe core Just great asset upon call further sidecar infrastructure, market, commercial and out.

that So that's well return billion to as the as nice a you'll strategic attractive item billion relationship will a years AUM range targeted see build return with next $X in strategic Allianz, line story targeted over investment our that and built few $X profile. capital upon to that investment a

Operator

question Bhullar Our with Jimmy from JPMorgan. is next

Jamminder Bhullar

asset I a on had your question just business. management

growth noted outflows billion, it billion, suggest the would performance quarter billion had with the positive the billion couple I the commensurate of market businesses, But was You quarter, before. this think partly fairly like high in from the $X.X around last what asset flows $X.X of you've hasn't because in quarters. been $X flows, $X.X amount divested flows

those your way -- Can the assets, how what economics fee, risk? you talk are lower -- fee? more that much at is similar about then they obviously ongoing the How assets, are of how to? in to And flow does do and you relate of the have more present, that's numbers those that potentially much much not that just you higher but

Matthew Toms

Yes. This Jimmy. Matt. Thanks, Yes. the Thanks for is question.

enable flow that, go is So happy years. percent referenced X.X%, X-plus $XX.X very billion back about of to it. of visible, it manage growth costs against we above extremely well That and some is the divested rate cutting our businesses, an the around 'XX, been known a important you transition, X average really long-term now with organic growth right? flow, platform which that talked we've for this in our the So about in business, upfront is us

So we've seen a flow in XXXX.

you have one the can fee those see second in growth signaled we costs We XXXX. that also We And assets flow that component the take lower optimize around as coming are, more we referenced, that venerable in the as half. of we going forward.

the So transactions to These strategy investment of it's for a are broader Voya. Voya part great of divest.

rate the revenue profit, growth and and the there key higher outflows. though is operating is at The outpacing what's higher that higher the that outpacing fee growing is a line that and revenue level, item revenue message is the

Heather Lavallee

quarters of Jimmy, really, just set the about really our I in emphasize, very momentum year great And would flows record up think and management strong I flows, for X good that asset consecutive 'XX. feel business. We

Jamminder Bhullar

amount of will what's assets you that the And 'XX? leave the think in vulnerable

Matthew Toms

billion -- number is of the the in XXXX. half estimate current is second That $X.X

Jamminder Bhullar

gone? ] and will that, mostly And [indiscernible] beyond venerable the be [

Matthew Toms

That's correct.

Operator

next Burdis from is with Our James. question Raymond Wilma

Wilma Jackson Burdis

Could more into you of types just improving selection risk bit the of go into what a little went detail actions [indiscernible]? on

Michael Katz

around I Wilma, what pricing of that that case making sharing was underwriting. about for just I'd we're we feel the earlier kind probably reiterate every good very sure

sure strategy just ensuring and a making most relative finalizing And the big XX%. really our about that and think entire team trend. the premium the and to before Second, underwriters quotes. versus margin current data down you that on we focusing when understood have was then growth, medical mindset-wise, number of premium That's strategically

quickly. just more us would after think being Stop to XX% question maybe quickly. the in to annual range. nature reason about to just we range about just get X-step to get profitability the target is we say what disappointed, point Stop around XX%. why back the the after quite in the end still process happened I'd on I key broadly. to guiding -- here thing of that's renewable to Loss But like But to XX% margins how get low our Loss XXXX. Think that a of ability to to a allowed other product close really that's The We're obviously, We're quite X% to our

Wilma Jackson Burdis

sense. Makes

that [indiscernible] you Is quarterly were able to just, performing how So accounts. I guess, the of that works?

Heather Lavallee

about way that's think think right I Yes. to it. Well, the

renewing business. importance of talk book really You've healthy heard about of us a the

would so really, the performing cases. what were make renewing we over to wanted those. We about XX% think sure renewed strong of And I is we

the decline business, When Mike about we didn't. we holding reflected making the very block and was really and We didn't firm book that's much mix talked of we've we that about the needed renew and retention the the the on got of underwriting business. that in got sure and discipline, talked that we necessarily increase data, book it underperformers in rate

So that's absolutely right.

mention Wilma, in I frequency that the 'XX factoring the too, pricing. into final saw we higher is think of piece in claims 'XX the of I would importance the

book. we claims factored that's saw and frequency So in assumed the that pricing we 'XX for we also the 'XX adjustments that into made of will have higher throughout, continue the

Operator

Jefferies. Suneet with is question next from Kamath Our

Suneet Kamath

big if of Solutions participant you and dynamic compare historical? money we and out. on higher what I But at the changes that comes wanted to say, to changes there? any rate hit in, in the look the get seen Wealth XXXX withdrawal markets Any I flows. was more that have

Heather Lavallee

heading see surrenders participants did to markets. We've yes, Yes, QX I'll we of interest continue answer improvement did We when just would see into But that. participant still perhaps of the started taken 'XX, the elevated see uncertainty bit the start the in rates little to some an in down. we given be a you a improvement surrenders. cautious to come

Suneet Kamath

Got it.

companies on target this whole Okay. some the things of hearing in-plan space relatedly is, from other concept And the one that sort we're Wealth, guess, of within of in I then, wealth Do of to sort is think And I date an just And needs there? your get on you for that you was strategy happen curious, funds. to opportunity? product your what platform? that's what annuities

Heather Lavallee

question. the for Thanks Yes.

of do So a there products. provisions couple do that inside we have our of things is annuity today we are actually

our annuity We also have within within with different products we have solutions. as Matt's partner that well different certain asset and our own providers income -- other But as partnership team through broker-dealer. managers

are management as important well going both Certainly, I in we an address to coming implant Jay you're is this of our certainly And going component is us from investment that. product be annuity. more that consider enhancements the as the retail allow to options some of solutions quarters. out-of-plan different of things wealth think what realizing hear the or to and one in partnership But

this is a say see some I'd opportunity here. tuned. a of We stay So bit

Operator

from is with John question Piper final Our Barnidge Sandler.

John Barnidge

don't have My success already clients. and how clients, insurance had question is Voya existing Voya Management insurance on with them many Sconset cars? of has site previously Investment lot Of Re. existing the Management Investment of a

Matthew Toms

work know a Matt. that, but number with as of offshore exact as XX John, onshore business, number well and We the over I currently. this insurance clients is do our don't globally. good

smaller-sized mid- market. in the extremely We majority the company don't. say I'd to insurance to tend be competitive

some have they'll We We a of the this the at industry well. part broaden. to industry, Side larger and cars be part of could growing continue point. think clients as are that

guide like look don't. to provide them as look leverage that. our We investment whom So we client solutions of own down exposure, own some capability of alongside can have base, and of path them our own some also and across their their to

the insurance basis. gives us AUM So an on also advising leading win client but an the It market. industry both in basis, on to right our really position a

John Barnidge

income in quarter? And follow-up question. some my first Do No quarter can marks. any funds come visibility for some companies year variable the larger first X had near the on and you have sometimes term annual investment generally, quarter a ago, marks marks into lag annual no as

Matthew Toms

a difficult versus let and X% of lag if our laid asset Mike out this referenced, John. a The bit private Thanks, year in XXXX, think financial Matt markets, is to I as This Yes. assumption. markets. Always, alone saw you again. and you predict -- well, last

expectation think where That markets rates a think interest your about as We average. bit take so are return lower. today, higher long-term equity broadening towards little about tends opposed to we being that As narrow. to

So contract. in outkicked start think they now longer we we we that we're assumption where that X%. about term, will as or that we're it's we -- can be long-term where range that fair interest like the feel we on to But starting year, back think rates are possible a

Operator

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

Heather Lavallee

grow in enhance shareholder integration we Stop a momentum. OneAmerica messages, focused value. smooth By To and maintaining Loss commercial driving to focus, excess a continued XXXX, margins, we our improving summarize and ensuring strategic on capital remain will key continue the few

continually we at remain are center customers Our of experience dedicated to the their and all we enhancing outcomes. and do,

Thank Have year. updating day. you a today, progress for us the we throughout look our joining on you to great forward and

Operator

Thank today's conclude will This conference. you.

participation. at this disconnect you your may your time, thank for You lines and

Voya Financial (VOYA) 5 Feb 252024 Q4 Earnings call transcript