Voya Financial (VOYA) Misses Q1 EPS by 5c

Voya Financial (NYSE: VOYA) reported Q1 EPS of $0.83, $0.05 worse than the analyst estimate of $0.88.

“As the world confronts the many health and economic challenges due to COVID-19, we are incredibly grateful to all those working on the front lines to help the United States address this global pandemic. All of us at Voya proudly support and thank the many individuals who are providing medical support as well as the delivery of food and other resources as they admirably put others first to help our country manage through this unprecedented time,\" said Rodney O. Martin, Jr., chairman and CEO, Voya Financial, Inc. \"I also am extremely proud of our 6,000 employees and the dedication and commitment that they have shown for our customers. We have quickly pivoted and shifted to having more than 95% of our employees working remotely to help keep our employees safe and ensure that we can provide our customers with support and service at a time when they need us most. This would not have been possible without the significant commitment and adaptability that our employees are demonstrating.

"Last month, Voya was the first major retirement plan provider to announce that — in alignment with the Coronavirus Aid, Relief, and Economic Security (CARES) Act — we would credit back to participants in our defined contribution plans the fees associated with coronavirus-related distributions allowed under the CARES Act, hardship distribution fees, and loan initiation fees. Voya is also providing Americans with free access to a range of online resources as well as phone access with financial professionals with Voya Financial Advisors. These actions, along with efforts we are taking to support our communities, represent our desire to do our part to help our customers, and all Americans, manage through this difficult time.

"As a result of the proactive, strategic decisions that we have made during the past few years to significantly de-risk our business portfolio, strengthen our balance sheet, simplify our company and streamline our focus on the workplace and institutional clients, Voya is well positioned for the challenges and headwinds facing the broader economy and our industry. We had $612 million of excess capital as of March 31, 2020, and we continue to benefit from our high free cash flow business mix. Moving forward, we will continue to demonstrate prudent capital management.

"Despite the impacts of COVID-19 that began in March, first-quarter 2020 normalized adjusted operating earnings per share (EPS) grew 26% compared with the prior-year period, driven in part by record earnings in Employee Benefits. We also generated strong organic growth in each of our businesses. Specifically, Retirement full-service recurring deposits increased 10.6% compared with the trailing 12 months ended March 31, 2019; Investment Management generated $2.2 billion in positive net flows (excluding divested annuities and sub-advisor replacements) in the first-quarter of 2020; and Employee Benefits grew in-force premiums 5.0% compared with the prior-year period.

"Looking ahead, we expect that our earnings growth outlook — as with others in the industry — will be affected by the uncertainties created by COVID-19, such as the magnitude of claims, changes to employment levels, and the ultimate shape of a future economic recovery. This uncertainty makes it very difficult to confidently provide medium and long-term earnings growth guidance. We will revisit our earnings growth guidance ranges, including the previously shared $1.80 to $1.90 EPS guidance for the fourth quarter 2021, as we gain improved visibility. Having said that, we will continue to execute on what we can control. For example, our targeted cost savings of at least $250 million by the end of 2020 remain on track, as is the expected closing of the sale of our Individual Life and other legacy non-retirement annuities businesses by Sept. 30, 2020. I\'m confident in the talent that we have at Voya to enable us to execute on our organic growth, cost savings, and capital management plans to ensure that we can continue to position Voya for long-term success,\" added Martin.

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