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Voya Financial (VOYA) Misses Q3 EPS by 19c

November 4, 2020 4:19 PM

Voya Financial (NYSE: VOYA) reported Q3 EPS of $1.19, $0.19 worse than the analyst estimate of $1.38.

"We delivered strong results in the third quarter, demonstrating the strength of Voya’s earnings and growing adjusted operating earnings per share 8% compared with the third quarter of 2019," said Rodney O. Martin, Jr., chairman and CEO, Voya Financial, Inc. "We also once again achieved organic growth across our businesses. In Retirement, we continued to attract new clients, and full-service recurring deposits increased 8.4% compared with the trailing 12 months ended Sept. 30, 2019. In Investment Management, we generated $1.8 billion in positive net flows (excluding divested annuities and sub-advisor replacements) in the third quarter of 2020, driven by continued strong Institutional net inflows. And in Employee Benefits, we grew in-force premiums 5.7% compared with the prior-year period due to continued demand for our protection solutions, particularly in the Voluntary business.

"During the quarter, we conducted our annual assumption review and updated long-term interest rate assumptions from 3.75% to 2% and lowered long-term equity market assumptions from 9% to 8%. These changes include our updated expectations for future long-term rates and long-term equity market performance. That said, the adjustments had no impact on our excess capital, which was $642 million as of Sept. 30, 2020.

"As it pertains to our pending sale of our Individual Life and other legacy non-retirement annuities businesses, we have completed all the operational and financial requirements needed to close the transaction. We continue to make good progress on the remaining regulatory approvals needed to complete the transaction. We are confident that the regulatory reviews will be completed before the end of 2020, and we expect that the transaction will be completed by Jan. 4, 2021. We also continue to expect that the transaction will provide approximately $1.5 billion in deployable capital.

"Our success — despite the many challenges presented in 2020 — is due to the commitment of our employees and our focus on helping our clients navigate the many financial challenges they are facing. For example, last month we expanded upon Voya’s efforts to help Americans address the financial challenges of COVID-19 with the launch of our Just Right Advantage Program to support minority, women, veteran, disability, and LGBTQ-owned businesses, along with nonprofit organizations that serve them. The program will specifically help employers and organizations within undercapitalized, underserved and 'under-saved' communities by offering a fee credit when they establish or retain their retirement plan. We will continue to take actions that advance everyone’s opportunity for a better financial future, and that will help us achieve our vision to be America's Retirement Company," added Martin.

For earnings history and earnings-related data on Voya Financial (VOYA) click here.

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