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Why Is Voya (VOYA) Down 3.1% Since Last Earnings Report?
VOYAVoya Financial(VOYA) ZACKS·2025-03-06 17:35

Core Viewpoint - Voya Financial reported a mixed performance in its Q4 2024 earnings, with adjusted operating earnings per share of 1.50,significantlybeatingestimatesbutshowingayear−over−yeardeclineof23.81.50, significantly beating estimates but showing a year-over-year decline of 23.8% due to higher loss ratios and lower spread-based assets [2][11]. Financial Performance - Adjusted operating revenues reached 1.9 billion, marking a 12.5% increase year-over-year, while net investment income slightly decreased by 0.2% to 521million[3].−Feeincomeroseby11521 million [3]. - Fee income rose by 11% to 543 million, and premiums increased by 17.4% to 790million[3].−Totalbenefitsandexpenseswere790 million [3]. - Total benefits and expenses were 1.8 billion, up 10% from the previous year [3]. Segment Analysis - Wealth Solutions saw adjusted operating earnings of 210million,a42.8210 million, a 42.8% increase year-over-year, driven by fee-based revenue growth and disciplined expense management [4]. - Health Solutions reported a pre-tax adjusted operating loss of 102 million, a decline from a profit of 44millioninthepreviousyear,primarilyduetohigherlossratios[5].−InvestmentManagementpostedpre−taxadjustedoperatingearningsof44 million in the previous year, primarily due to higher loss ratios [5]. - Investment Management posted pre-tax adjusted operating earnings of 66 million, up 46.7% year-over-year, benefiting from strong business momentum and positive capital markets [6]. - Corporate segment incurred pre-tax adjusted operating losses of 27million,animprovementfromalossof27 million, an improvement from a loss of 34 million in the prior year [7]. Financial Position - Voya Financial ended the quarter with cash and cash equivalents of 1.4billion,a49.31.4 billion, a 49.3% increase year-over-year, while total investments decreased by 4.3% to 35 billion [8]. - Long-term debt was 2.1billion,up0.22.1 billion, up 0.2% from the end of 2023, and the financial leverage ratio deteriorated by 250 basis points to 30.3% [8]. - Book value per share increased by 5.4% to 61.31, and the company had approximately 0.6billionofexcesscapital[8].CapitalDeployment−VoyaFinancialreturned0.6 billion of excess capital [8]. Capital Deployment - Voya Financial returned 800 million of excess capital to shareholders in 2024, including 140millioninsharerepurchasesand140 million in share repurchases and 43 million in dividends [10]. - As of December 31, 2024, the remaining share repurchase authorization stood at 761million[10].Full−YearHighlights−Forthefullyear2024,adjustedoperatingearningspersharewere761 million [10]. Full-Year Highlights - For the full year 2024, adjusted operating earnings per share were 7.79, a 3% decrease year-over-year, but still beating estimates by 17.3% [11]. - Adjusted operating revenues increased by 9.7% to $7.5 billion compared to the previous year [11]. Estimate Trends - Estimates for Voya Financial have trended downward, with a consensus estimate shift of -9.09% over the past month [12].