Voya Financial(VOYA) - 2024 Q4 - Annual Results

Financial Performance - Voya Financial reported Adjusted Operating Earnings Before Income Taxes, which is a key measure for evaluating business performance, focusing on core segments and excluding variable items [4]. - The company emphasized the importance of Adjusted Operating Revenues, which are calculated by adjusting total revenues for net investment gains and losses, among other factors [6]. - Net Revenue is defined as the sum of investment spread, fee-based margin, and net underwriting gain or loss, providing insight into revenue growth and margin expansion [9]. - The Adjusted Operating Margin is calculated as Adjusted Operating Earnings Before Income Taxes divided by Net Revenue, highlighting the efficiency of operations [9]. - Voya Financial's performance metrics are designed to help investors understand the underlying trends and operational efficiency of the business [4]. - Voya Financial reported a net income of $93 million for Q4 2024, a decrease of 5.1% from$ 98 million in Q3 2024, but an increase from $118 million in Q4 2023 [10]. - Adjusted operating earnings before income taxes for Q4 2024 were$ 147 million, down 36.1% from $230 million in Q3 2024, but up 27.2% from$ 202 million in Q4 2023 [14]. - Total revenues for Q4 2024 reached $2.01 billion, a 2.8% increase from$ 1.96 billion in Q3 2024 and a 10.5% increase from $1.82 billion in Q4 2023 [12]. - Total adjusted operating earnings for the three months ended December 31, 2024, were$ 147 million, with an EPS of $1.40, compared to$ 224 million and EPS of $1.88 in the same quarter of 2023 [61]. - Year-to-date adjusted operating revenues reached$ 7,487 million for the twelve months ended December 31, 2024, compared to $6,822 million in the previous year, indicating a 9.7% growth [64]. Revenue and Earnings Breakdown - The company aims to provide insights into the main drivers of Adjusted Operating Earnings, focusing on revenue growth and margin expansion [9]. - Adjusted operating revenues for Q4 2024 reached$ 1,897 million, up from $1,686 million in Q4 2023, representing a 12.5% increase [15]. - Wealth Solutions segment reported adjusted operating revenues of$ 731 million for the three months ended December 31, 2024, up from $686 million year-over-year, reflecting a 6.6% growth [66]. - Health Solutions segment achieved adjusted operating revenues of$ 888 million for the three months ended December 31, 2024, compared to $764 million in the prior year, marking a 16.3% increase [66]. - Investment Management segment's adjusted operating revenues rose to$ 271 million for the three months ended December 31, 2024, from $228 million a year earlier, representing an 18.9% growth [67]. - Total gross premiums and deposits for the twelve months ended December 31, 2024, reached$ 3,601 million, up from $3,054 million in 2023, indicating a growth of 17.9% [33]. Expenses and Margins - Administrative expenses are reported net of amounts capitalized as acquisition expenses, excluding commission expenses [9]. - The adjusted operating margin for the twelve months ended December 31, 2024, improved to 39.9%, up from 33.6% in the previous year, indicating enhanced operational efficiency [22]. - The adjusted operating margin for the twelve months ended December 31, 2024, was 4.1%, down from 26.6% in the same period last year [29]. - The adjusted operating margin for Wealth Solutions was 41.5% in Q4 2024, up from 37.2% in Q4 2023, showing a significant improvement [47]. Shareholder Returns and Equity - Total cash returned to common shareholders in 2024 was$ 803 million, significantly higher than $499 million in 2023, with$ 635 million in share repurchases [10]. - Book value per common share (excluding AOCI) increased to $61.31 as of December 31, 2024, compared to$ 58.12 a year earlier [10]. - Total Shareholders' Equity decreased to $5,788 million as of December 31, 2024, from$ 5,878 million a year prior, influenced by changes in accumulated other comprehensive income [19]. - The company reported a total of $68 million in alternative investment income below long-term expectations for the twelve months ended December 31, 2024 [62]. Assets and Liabilities - Total assets as of December 31, 2024, were$ 163,889 million, a decrease from $166,933 million as of September 30, 2024 [17]. - The total liabilities as of December 31, 2024, were$ 157,882 million, down from $160,351 million as of September 30, 2024 [17]. - Total Financial Debt as of December 31, 2024, is$ 2,502 million, an increase from $2,098 million in the previous year [19]. - The debt-to-capital ratio increased to 38.5% in Q4 2024 from 33.3% in Q4 2023, indicating a rise in leverage [10]. Market Performance and Flows - Institutional AUM net flows for Q4 2024 were$ 2.001 billion, compared to a net outflow of $5.390 billion in Q4 2023, indicating a significant turnaround in client retention [39]. - Retail AUM net flows for Q4 2024 were$ 1.353 billion, a recovery from a net outflow of $36 million in Q4 2023, showcasing improved market conditions [39]. - The total net flows for the company in Q4 2024 were$ 3.038 billion, a significant improvement from a net outflow of $5.962 billion in Q4 2023 [39]. - Client Assets reached$ 612,205 million as of December 31, 2024, a significant increase from $544,319 million a year earlier, driven by growth in fee-based assets [22]. Investment Performance - The company reported net investment income and net gains of$ 1,928 million for the twelve months ended December 31, 2024, compared to $1,932 million in 2023, indicating a slight decline [16]. - The total book value of invested assets was$ 36,350 million as of December 31, 2024, with a gross investment income of $489 million, resulting in an annualized earned rate of 5.4% [53]. - Public corporate investments accounted for 28.0% of the total book value, with a gross investment income of$ 140 million and an earned rate of 5.4% for the latest quarter [53].