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Form 8-K Voya Financial, Inc. For: Aug 02

August 2, 2022 4:19 PM
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
August 2, 2022
VOYA FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-35897
No.
52-1222820
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification Number)
230 Park Avenue
New York
New York
10169
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (212) 309-8200
N/A
(Former name or former address, if changed since last report)
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Common Stock, $.01 Par ValueVOYANew York Stock Exchange
Depositary Shares, each representing a 1/40thVOYAPrBNew York Stock Exchange
interest in a share of 5.35% Fixed-Rate Non-Cumulative Preferred Stock, Series B, $0.01 par value
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  




Item 2.02Results of Operations and Financial Condition
On August 2, 2022 Voya Financial, Inc. (“Voya Financial”) reported its financial results for the three months and six months ended June 30, 2022. A copy of the press release containing this information is furnished as Exhibit 99.1 hereto and is incorporated by reference in this item 2.02.
As previously announced, Voya Financial will host a conference call on Wednesday, August 3, 2022 at 10:00 am ET to discuss its second-quarter 2022 results. The call can be accessed via Voya Financial’s investor relations website at http://investors.voya.com. In addition, more detailed financial information can be found in Voya Financial’s Quarterly Investor Supplement for the quarter ended June 30, 2022, available on Voya Financial’s investor relations website at http://investors.voya.com. The Quarterly Investor Supplement for the quarter ended June 30, 2022 is furnished herewith as Exhibit 99.2 and is incorporated by reference in this item 2.02.
As provided in General Instruction B.2 of Form 8-K, the information and exhibits provided pursuant to this Item 2.02 shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set for by specific reference in such filing.
Item 7.01Regulation FD Disclosure
On August 2, 2022, Voya Financial made available a slide presentation that will accompany the conference call described above in Item 2.02. These slides are available on Voya Financial’s investor relations website at http://investors.voya.com.
As provided in General Instruction B.2 of Form 8-K, the information provided pursuant to this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
 
Item 9.01Financial Statements and Exhibits
(d) Exhibits

99.1    Press release of Voya Financial, Inc., dated August 2, 2022 (furnished and not filed)
99.2    Quarterly Investor Supplement for the quarter ended June 30, 2022 (furnished and not filed)
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)





SIGNATURES
    Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Voya Financial, Inc.
(Registrant)

By:        /s/ Trevor Ogle             
Name:    Trevor Ogle
Title:    Senior Vice President and Deputy General Counsel 
Dated: August 2, 2022


Exhibit 99.1
newsreleaseheadera07a.jpg

Voya Financial announces second-quarter 2022 results
NEW YORK, Aug. 2, 2022 — Voya Financial, Inc. (NYSE: VOYA), announced today financial results for the second quarter of 2022:
Net income available to common shareholders of $0.57 per diluted share, which includes certain investment losses and other non-operating losses.
After-tax adjusted operating earnings1 of $1.67 per diluted share2.
Results reflect continued organic growth across all businesses.
Further excess capital deployed to provide additional shareholder value in the second quarter and first half of 2022:
Approximately $300 million in excess capital deployed in the second quarter, including $250 million in share repurchases, $22 million in debt redemption and $20 million in common stock dividends.
Approximately $1 billion in excess capital deployed in the first half of 2022.
As of June 30, 2022, Voya had approximately $700 million of excess capital, including approximately $100 million generated in the second quarter.

"In the second quarter, we delivered an 18% increase in adjusted operating earnings per share, excluding notable items, as we continued to execute on our long-term strategy and growth plans," said Rodney O. Martin, Jr., chairman and CEO, Voya Financial, Inc. "For the trailing twelve months ended June 30, 2022, Wealth Solutions full service recurring deposits grew 11.2% compared with the prior-year period to $12.8 billion. In Health Solutions, annualized in-force premiums in the second quarter of 2022 increased 9.3% compared with the prior-year period to $2.7 billion. In addition, Investment Management generated $559 million of net inflows in the second quarter of 2022 and achieved 4.6% organic growth for the trailing twelve months ended June 30, 2022. These results reflect our commitment to delivering on the needs of our clients and remaining focused on what we can control, despite the challenges and changes in the macro environment.

"During the second quarter, we deployed approximately $300 million in excess capital through a combination of share repurchases, debt redemption and common stock dividends. This now brings our total excess capital deployed in the first half of 2022 to approximately $1 billion. We also concluded the quarter with approximately $700 million of excess capital.

1 This press release includes certain non-GAAP financial measures, including adjusted operating earnings. More information on non-GAAP measures and reconciliations to the most comparable U.S. GAAP measures can be found in the “Use of Non-GAAP Financial Measures” section of this release and in the company’s Quarterly Investor Supplement.
2 Second-quarter 2022 results include the following notable items: $(0.06) of investment income from alternative investments and prepayments below long-term expectations, net of variable and incentive compensation and $(0.03) of unfavorable deferred acquisition costs and value of business acquired (“DAC/VOBA”) and other intangibles unlocking. Please see the tables at the end of this press release for more details on notable items.
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"As we look forward, we remain confident in our long-term strategy and will continue to execute on a number of organic growth, capital and margin initiatives to achieve our plans. At the same time, we are excited about the additive, inorganic growth that will result from our recently completed transfer of certain assets and teams comprising the substantial majority of Allianz Global Investors’ U.S. business to Voya. This transaction — along with our continued investments in technologies and capabilities that will meet the broad health, wealth and investment needs of our clients — will enable us to continue to drive positive outcomes for our customers, our employees and our shareholders," added Martin.


HIGHLIGHTS
Wealth Solutions full-service recurring deposits were $12.8 billion for the trailing twelve months (TTM) ended June 30, 2022, up 11.2% compared with the prior-year period and at the high end of the company’s annual target of 10–12%. Second-quarter 2022 full-service recurring deposits were $3.3 billion.
Health Solutions annualized in-force premiums were $2.7 billion in the second quarter of 2022, up 9.3% compared with the prior-year period and at the high end of the company's 7–10% annual target. The increase in annualized in-force premiums reflects growth across all product lines, including a 24% increase in Voluntary.
Investment Management net inflows (excluding sub-advisor replacements and divested businesses) were $9.8 billion for the TTM ended June 30, 2022, representing organic growth of 4.6% and above the company's annual target of 2–4%. Second-quarter 2022 net inflows were $559 million.
Voya deployed approximately $300 million of excess capital during the second quarter and approximately $1 billion in the first half of 2022.
On July 28, 2022, Voya's board of directors declared a third-quarter 2022 common stock dividend of $0.20 per share, maintaining Voya's dividend yield above 1%.
On July 25, 2022, Voya announced that it had completed the transfer of income and growth, fundamental equity, and private placement investment teams and the associated approximately $93 billion (as of June 30, 2022) in assets under management (AUM) that comprised the substantial majority of Allianz Global Investors’ (AllianzGI) U.S. business (AGI U.S.) to Voya Investment Management. On a pro forma basis and based on AUM as of June 30, 2022, Voya IM’s AUM has increased to approximately $330 billion, which consists of approximately 44% public fixed income; 24% private fixed income; 25% equity; 6% alternatives; and 1% money market assets. In addition, Voya and AllianzGI have formed a long-term, strategic distribution partnership whereby AllianzGI will distribute Voya Investment Management investment strategies outside the U.S. and Canada.



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CONSOLIDATED RESULTS
Second-quarter 2022 net income available to common shareholders was $64 million, or $0.57 per diluted share, compared with $459 million, or $3.53 per diluted share, in the second quarter of 2021. The decline was primarily due to a $220 million after-tax gain in the prior-year period related to Voya's sale of the independent financial planning channel of Voya Financial Advisors (FPC); $102 million of lower after-tax adjusted operating earnings compared with the prior-year period; $41 million of after-tax investment losses in second quarter of 2022, primarily due to negative revaluations due to increasing interest rates; and a $25 million after-tax impairment on owned real estate in second-quarter 2022.

Second-quarter 2022 after-tax adjusted operating earnings were $185 million, or $1.67 per diluted share, compared with $287 million, or $2.20 per diluted share in the second quarter of 2021. The decline was primarily due to lower alternative investment income; lower investment capital revenues in Investment Management; an unfavorable change in DAC/VOBA and other intangibles unlocking and lower fee-based margin in Wealth Solutions, in each case compared with second-quarter 2021. On a per-share basis, second-quarter 2022 results reflect the benefit of share repurchases in 2021 and the first half of 2022.

SEGMENT DISCUSSIONS
The following segment discussions compare the second quarter of 2022 with the second quarter of 2021, unless otherwise noted. All figures are presented before income taxes.

Wealth Solutions
Wealth Solutions adjusted operating earnings were $186 million, compared with $295 million. The change primarily reflects:
$75 million of lower investment income, primarily due to lower alternative investment income;
$30 million of lower fee-based margin as business growth was more than offset by lower retail assets due to the second-quarter 2021 sale of the FPC and lower full-service fee revenues;
a $22 million unfavorable change in DAC/VOBA and other intangibles unlocking, largely due to lower equity market levels; and
$5 million of lower administrative expenses primarily due to the impact of the sale of the FPC, partially offset by business growth.


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Trailing 12 months endedTrailing 12 months ended
($ in millions)6/30/20226/30/2021
Net revenue$2,225 $2,152 
Net revenue, excluding notables1,951 1,810 
Adjusted operating margin42.7 %38.7 %
Adjusted operating margin, excluding notables36.2 %35.0 %
Full Service recurring deposits$12,783 $11,491 
Full Service net flows$917 $2,308 
Three months ended or as ofThree months ended or as of
($ in millions)6/30/20226/30/2021
Total client assets$466,139 $527,835 
Full Service recurring deposits$3,303 $2,958 
Full Service net flows$1,000 $238 
Full Service client assets$158,956 $180,515 

Total client assets as of June 30, 2022 were $466 billion, down from June 30, 2021 as growth in the business, including positive net flows over the period, was more than offset by lower equity market levels.

Health Solutions
Health Solutions adjusted operating earnings were $47 million, compared with $63 million. The change primarily reflects:
$11 million of higher underwriting results as growth in the business and lower COVID-related claims were partially offset by higher non-COVID claims in Group Life and slightly higher loss ratios in Stop Loss and Voluntary;
$5 million of lower investment income; and
$22 million of higher net expenses, largely due to growth in the business, including the company's acquisition of Benefit Strategies in the third quarter of 2021.

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Trailing 12 months ended Trailing 12 months ended
($ in millions)6/30/20226/30/2021
Net revenue$738 $680 
Net revenue, excluding notables803 712 
Adjusted operating margin23.4 %30.3 %
Adjusted operating margin, excluding notables29.5 %33.4 %
Total aggregate loss ratio73.1 %71.6 %
Three months endedThree months ended
($ in millions)3/31/20223/31/2021
Group Life, Disability and Other$811 $749 
Stop Loss1,231 1,191 
Voluntary681 550 
Total annualized in-force premiums$2,722 $2,490 

Investment Management
Investment Management adjusted operating earnings were $40 million, compared with $66 million. The change primarily reflects:
$21 million of lower investment capital revenues, including lower private equity results in the second quarter of 2022;
relatively unchanged fee-based margin as higher private equity management and other fees were offset by lower fixed income and equity markets; and
$4 million of higher administrative expenses, primarily due to growth and investments in the business.
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Trailing 12 months endedTrailing 12 months ended
($ in millions)6/30/20226/30/2021
Net revenue$750 $790 
Net revenue, excluding notables732 681 
Adjusted operating margin26.8 %32.3 %
Adjusted operating margin, excluding notables25.0 %25.3 %
Institutional net flows$12,982 $1,765 
Retail net flows(3,193)(1,486)
Total net flows*9,789 279 
Three months ended or as ofThree months ended or as of
($ in millions)6/30/20226/30/2021
Institutional net flows$1,998 $440 
Retail net flows(1,439)(191)
Total net flows*559 249 
Fixed income - public and other$107,137 $115,959 
Privates and alternatives80,786 75,361 
Equity48,429 62,118 
Total AUM$236,352 $253,438 
* Excludes sub-advisor replacements and divested businesses.

Total AUM was $236 billion as of June 30, 2022, down 7% from June 30, 2021 as lower equity and fixed income markets more than offset positive net flows over the period, including strong Institutional net flows of $2 billion in the second quarter of 2022.

Corporate
Corporate adjusted operating losses were $49 million compared with adjusted operating losses of $71 million. The change was primarily driven by lower incentive compensation, lower interest expense due to debt extinguishments, and lower net stranded costs associated with the Individual Life transaction.

Share Repurchases
During the second quarter, Voya entered into an accelerated share repurchase (ASR) agreement to repurchase $250 million of its common stock — $200 million, or 3,382,950 shares, of which were delivered during the second quarter; the remaining $50 million will be delivered in the third quarter
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of 2022. Also in the second quarter, Voya received approximately $55 million, or 890,112 shares, related to an ASR agreement that was entered into with a third party in the first quarter of 2022.

Accounting for the previously mentioned $250 million ASR that Voya entered into in the second quarter, the company had approximately $271 million remaining under its share repurchase authorization.

Supplementary Financial Information
More detailed financial information can be found in the company’s Quarterly Investor Supplement, which is available on Voya’s investor relations website, investors.voya.com.

Earnings Call and Slide Presentation
Voya will host a conference call on Wednesday, Aug. 3, 2022, at 10 a.m. ET, to discuss the company’s second-quarter 2022 results. The call and slide presentation can be accessed via the company’s investor relations website at investors.voya.com. A replay of the call will be available on the company’s investor relations website at investors.voya.com starting at 1 p.m. ET on Aug. 3, 2022.

Media Contact:                    Investor Contact:
Christopher Breslin                    Hima Inguva
212-309-8941                        212-309-8999
Christopher.Breslin@voya.com            IR@voya.com

About Voya Financial
Voya Financial, Inc. (NYSE: VOYA), is a leading health, wealth and investment company that provides products, solutions and technologies that help Americans become well planned, well invested and well protected. Serving the needs of 14.3 million individual, workplace and institutional clients, Voya has approximately 6,000 employees and had $644 billion in total assets under management and administration as of June 30, 2022. Certified as a “Great Place to Work” by the Great Place to Work® Institute, Voya is purpose-driven and is equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible. Voya has earned recognition as: one of the World’s Most Ethical Companies® by the Ethisphere Institute; a member of the Bloomberg Gender-Equality Index; and a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.

Use of Non-GAAP Financial Measures
We believe that Adjusted operating earnings before income taxes provides a meaningful measure of its business and segment performance and enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions or other factors. We use the same accounting policies and procedures to measure segment Adjusted operating earnings before income taxes as we do for the directly comparable U.S. GAAP measure, which is Income (loss) from continuing operations before income taxes.

Adjusted operating earnings before income taxes does not replace Income (loss) from continuing operations before income taxes as a measure of our consolidated results of operations. Therefore, we believe that it is useful to evaluate both Income (loss) from continuing operations before income taxes and Adjusted operating earnings before income taxes
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when reviewing our financial and operating performance. Each segment’s Adjusted operating earnings before income taxes is calculated by adjusting Income (loss) from continuing operations before income taxes for the following items:
Net investment gains (losses), net of related amortization of DAC, VOBA, sales inducements and unearned revenue, which are significantly influenced by economic and market conditions, including interest rates and credit spreads, and are not indicative of normal operations. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the FVO unrelated to the implied loan-backed security income recognition for certain mortgage-backed obligations and changes in the fair value of derivative instruments, excluding gains (losses) associated with swap settlements and accrued interest;
Net guaranteed benefit gains (losses), which are significantly influenced by economic and market conditions and are not indicative of normal operations, include changes in the fair value of derivatives related to guaranteed benefits, net of related reserve increases (decreases) and net of related amortization of DAC, VOBA and sales inducements, less the estimated cost of these benefits. The estimated cost, which is reflected in operating results, reflects the expected cost of these benefits if markets perform in line with our long-term expectations and includes the cost of hedging. Other derivative and reserve changes related to guaranteed benefits are excluded from operating results, including the impacts related to changes in nonperformance spread;
Income (loss) related to businesses exited or to be exited through reinsurance or divestment, which includes gains and (losses) associated with transactions to exit blocks of business within continuing operations (including net investment gains (losses) on securities sold and expenses directly related to these transactions) and residual run-off activity (including an insignificant number of Individual Life, and non-Wealth Solutions annuities policies that were not part of the divested businesses). Excluding this activity, which also includes amortization of intangible assets related to businesses exited or to be exited, better reveals trends in our core business and more closely aligns Adjusted operating earnings before income taxes with how we manage our segments;
Income (loss) attributable to noncontrolling interest, which represents the interest of shareholders, other than those of Voya Financial, Inc., in the gains and (losses) of consolidated entities, or the attribution of results from consolidated VIEs or VOEs to which we are not economically entitled;
Dividend payments made to preferred shareholders are included as reductions to reflect the Adjusted operating earnings that is available to common shareholders;
Income (loss) related to early extinguishment of debt, which includes losses incurred as a result of transactions where we repurchase outstanding principal amounts of debt; these losses are excluded from Adjusted operating earnings before income taxes since the outcome of decisions to restructure debt are not indicative of normal operations;
Impairment of goodwill, value of management contract rights and value of customer relationships acquired, which includes losses as a result of impairment analysis; these represent losses related to infrequent events and do not reflect normal, cash-settled expenses;
Immediate recognition of net actuarial gains (losses) related to our pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments, which includes actuarial gains and (losses) as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period. We immediately recognize actuarial gains and (losses) related to pension and other postretirement benefit obligations and gains (losses) from plan adjustments and curtailments. These amounts do not reflect normal, cash-settled expenses and are not indicative of current Operating expense fundamentals; and
Other adjustments not indicative of normal operations or performance of our segments or may be related to events such as capital or organizational restructurings undertaken to achieve long-term economic benefits, including certain costs related to debt and equity offerings, acquisition / merger integration expenses, severance and other third-party expenses associated with such activities, and expenses attributable to vacant real estate. These items vary widely in timing, scope and frequency between periods as well as between companies to which we are compared. Accordingly, we adjust for these items as we believe that these items distort the ability to make a meaningful evaluation of the current and future performance of our segments.

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The adjusted operating earnings, after tax, is adjusted for tax expense. The adjusted operating tax expense is based on the actual income tax expense for the current period related to Income (loss) from continuing operations, adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate.

Income (loss) related to businesses exited or to be exited through reinsurance or divestment (including net investment gains (losses) on securities sold and expenses directly related to these transactions, and insignificant number of Individual Life, and non-Wealth Solutions annuities policies that were not part of the divested businesses) are excluded from Adjusted operating earnings before income taxes. When we present the adjustments to Income (loss) from continuing operations before income taxes on a consolidated basis, each adjustment excludes the relative portions attributable to businesses exited or to be exited through reinsurance or divestment.

The most directly comparable U.S. GAAP measure to Adjusted operating earnings before income taxes is Income (loss) from continuing operations before income taxes. For a reconciliation of Adjusted operating earnings before income taxes to Income (loss) from continuing operations before income taxes, see the tables that accompany this release, as well as our Quarterly Investor Supplement.

As a result of the Individual Life Transaction, the historical revenues and certain expenses of the divested businesses have been classified as discontinued operations. Historical revenues and certain expenses of the businesses that have been divested via reinsurance at closing of the Individual Life Transaction (including an insignificant amount of Individual Life and non-Wealth Solutions annuities that are not part of the transaction) are reported within continuing operations, but are excluded from adjusted operating earnings as businesses exited or to be exited through reinsurance or divestment. Expenses classified within discontinued operations and businesses exited or to be exited through reinsurance include only direct operating expenses incurred by these businesses and then only to the extent that the nature of such expenses was such that we ceased to incur such expenses upon the close of the Individual Life Transaction. Certain other direct costs of these businesses, including those which relate to activities for which we provide transitional services and for which we are reimbursed under transition services agreements (“TSAs”) are reported within continuing operations along with the associated revenues from the TSAs. Additionally, indirect costs, such as those related to corporate and shared service functions that were previously allocated to the businesses sold or divested via reinsurance, are reported within continuing operations. These costs ("Stranded Costs") and the associated revenues from the TSAs are reported within continuing operations in Corporate, since we do not believe they are representative of the future run-rate of revenues and expenses of the continuing operations of our business segments. We have implemented a cost reduction strategy to address Stranded Costs.

In addition to Net income (loss) per common share, we report Adjusted operating earnings per common share (diluted) because we believe that Adjusted operating earnings before income taxes provides a meaningful measure of its business and segment performances and enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions and/or other factors.

Net Revenue and Adjusted Operating Margin
Adjusted operating margin is defined as adjusted operating earnings before income taxes divided by net revenue.
•    Net revenue is the sum of investment spread and other investment income, fee based margin, and net underwriting gain (loss). Refer to our Quarterly Investor Supplement for a reconciliation of net revenue to adjusted operating revenue for each of our segments.
•    We report net revenue and adjusted operating margin for each of our segments, since they provide a meaningful measure for the two primary drivers for adjusted operating earnings – revenue growth and margin expansion.
•    We also report net revenue and adjusted operating margin excluding notable items, such as alternative investment income above or below our long-term expectations. Refer to our Quarterly Investor Supplement for a reconciliation of net revenue to net revenues excluding notable items and of adjusted operating earnings before income taxes to adjusted operating earnings excluding notable items.
•    We report net revenue and adjusted operating margin excluding notable items since it provides the main drivers for adjusted operating earnings excluding the effects of items that are not expected to recur at the same level.



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Forward-Looking and Other Cautionary Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company does not assume any obligation to revise or update these statements to reflect new information, subsequent events or changes in strategy. Forward-looking statements include statements relating to future developments in our business or expectations for our future financial performance and any statement not involving a historical fact. Forward-looking statements use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. Actual results, performance or events may differ materially from those projected in any forward-looking statement due to, among other things, (i) general economic conditions, particularly economic conditions in our core markets, (ii) performance of financial markets, (iii) the frequency and severity of insured loss events, (iv) the effects of natural or man-made disasters, including pandemic events and specifically the current COVID-19 pandemic event, (v) mortality and morbidity levels, (vi) persistency and lapse levels, (vii) interest rates, (viii) currency exchange rates, (ix) general competitive factors, (x) changes in laws and regulations, such as those relating to Federal taxation, state insurance regulations and NAIC regulations and guidelines, (xi) changes in the policies of governments and/or regulatory authorities, (xii) our ability to successfully manage the separation of our individual life business on the expected timeline and economic terms, and (xiii) our ability to realize the expected benefits from the transaction with AllianzGI. Factors that may cause actual results to differ from those in any forward-looking statement also include those described under “Risk Factors” and “Management’s Discussion and Analysis of Results of Operations and Financial Condition (“MD&A”) – Trends and Uncertainties” in our Annual Report on Form 10-K for the year ended Dec. 31, 2021, as filed with the Securities and Exchange Commission (“SEC”) on Feb. 22, 2022 and in our Quarterly Report on Form 10-Q for the three months ended June 30, 2022, to be filed with the SEC on or before Aug. 9, 2022.

VOYA-IR VOYA-CF

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Reconciliation of Net Income (Loss) to Adjusted Operating Earnings and Earnings Per Share (Diluted)
Three Months Ended
($ in millions, except per share)6/30/20226/30/2021
Pre-tax
Tax Effect (1)
After-taxPer sharePre-tax
Tax Effect (1)
After-taxPer share
Net Income (loss) available to Voya Financial, Inc.'s common shareholders$64 $0.57 $459 $3.53 
Less: Preferred stock dividends(4)(0.04)(4)(0.03)
Net Income (loss) available to Voya Financial, Inc.$68 $0.61 $463 $3.56 
Plus: Net income (loss) attributable to noncontrolling interest75 0.68 447 3.43 
Net Income (loss)$143 $1.29 $910 $6.99 
Less: Income (loss) from discontinued operations, net of tax— — (6)(0.04)
Income (loss) from continuing operations$153 $10 $143 $1.29 $1,028 $112 $916 $7.04 
Less:
Net Investment gains (losses) and related charges and adjustments(52)(11)(41)(0.37)29 23 0.18 
Net guaranteed benefit gains (losses) and related charges and adjustments0.02 (5)(1)(4)(0.03)
Income (loss) related to businesses exited or to be exited through reinsurance or divestment(50)(10)(39)(0.35)247 52 195 1.50 
Net income (loss) attributable to noncontrolling interest75 — 75 0.68 447 — 447 3.43 
Income (loss) on early extinguishment of debt— — — — — — 
Immediate recognition of net actuarial gains (losses) related to pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments— — — — — — — — 
Dividend payments made to preferred shareholders— 0.04 — 0.03 
Other adjustments (2)
(51)(8)(44)(0.40)(46)(11)(35)(0.27)
Adjusted operating earnings$223 $38 $185 $1.67 $353 $66 $287 $2.20 
(1) The adjusted operating tax expense is based on the actual income tax expense for the current period related to Income (loss) from continuing operations, adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate.
(2) “Other adjustments” primarily consists of restructuring expenses (severance, lease write-offs, etc.) and tax adjustments.


Reconciliation of Basic Weighted Average Shares to Adjusted Operating Diluted Weighted Average Shares
Three Months Ended
(in millions)6/30/20226/30/2021
Weighted-average common shares outstanding - Basic102 121 
Dilutive effect of warrants
Other dilutive effects (1)
Weighted-average common shares outstanding - Diluted111 130 
Dilutive effect of the exercise or issuance of stock based awards— — 
Weighted average common shares outstanding - Adjusted Diluted (2)
111 130 
(1) Includes stock-based compensation awards such as restricted stock units (RSU), performance stock units (PSU), or stock options.
(2) For periods in which there is Net loss from continuing operations available to common shareholders, adjusted operating earnings per common share (EPS) calculation includes additional dilutive shares, as the inclusion of these shares for stock compensation plans would not be anti-dilutive to the adjusted operating EPS calculation.


11





Adjusted Operating Earnings, Net Revenue, Adjusted Operating Margin, and Notable Items
Three Months Ended June 30, 2022
(in millions)Amounts including Notable items
Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1)
COVID-19 Impacts
Other (2)
Amounts excluding Notable items
Adjusted operating earnings
Wealth Solutions$186 $(7)$— $(4)$197 
Health Solutions47 — — — 47 
Investment Management40 (2)— — 42 
Adjusted operating earnings, excluding Corporate $273 $(9)$— $(4)$286 
Corporate(49)— — — (49)
Adjusted operating earnings, pre-tax$223 $(9)$ $(4)$237 
Net revenue
Wealth Solutions$486 $(7)$— $— $494 
Health Solutions195 — — — 195 
Investment Management171 (3)— — 173 
Total Net revenue$852 $(10)$ $ $862 
Adjusted operating margin
Wealth Solutions38.3 %39.9 %
Health Solutions24.1 %24.1 %
Investment Management23.4 %24.3 %
Adjusted operating margin, excluding Corporate & Notable items32.0 %33.2 %
Adjusted operating margin, including Corporate26.2 %27.5 %
(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable and incentive compensation.
(2) Includes DAC, VOBA, and other intangible unlocking.
12





Adjusted Operating Earnings, Net Revenue, Adjusted Operating Margin, and Notable Items
Three Months Ended June 30, 2021
(in millions)Amounts including Notable items
Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1)
COVID-19 Impacts
Other (2)
Amounts excluding Notable items
Adjusted operating earnings
Wealth Solutions$295 $96 $— $23 $176 
Health Solutions63 11 (15)62 
Investment Management66 18 — — 48 
Adjusted operating earnings, excluding Corporate $424 $125 $(15)$26 $286 
Corporate(71)(19)— — (52)
Adjusted operating earnings, pre-tax$353 $106 $(15)$26 $234 
Net revenue
Wealth Solutions$583 $96 $— $10 $477 
Health Solutions189 11 (15)188 
Investment Management192 20 — — 172 
Total Net revenue$964 $127 $(15)$13 $837 
Adjusted operating margin
Wealth Solutions50.6 %36.9 %
Health Solutions33.3 %33.0 %
Investment Management34.4 %27.9 %
Adjusted operating margin, excluding Corporate & Notable items44.0 %34.2 %
Adjusted operating margin, including Corporate36.6 %28.0 %
(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable and incentive compensation.
(2) Includes DAC, VOBA, and other intangible unlocking, revenue and expenses in Wealth Solutions related to the FPC prior to its divestment in June 2021, and changes in certain legal and other reserves not expected to recur at the same level.




13





Adjusted Operating Earnings, Net Revenue, Adjusted Operating Margin, and Notable Items
Twelve Months Ended June 30, 2022
(in millions)Amounts including Notable items
Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1)
COVID-19 Impacts
Other (2)
Amounts excluding Notable items
Adjusted operating earnings
Wealth Solutions$951 $274 $— $(30)$707 
Health Solutions173 28 (102)10 237 
Investment Management201 32 — (14)183 
Adjusted operating earnings, excluding Corporate $1,325 $334 $(102)$(34)$1,127 
Corporate(226)(31)— — (195)
Adjusted operating earnings, pre-tax$1,099 $303 $(102)$(34)$932 
Net revenue
Wealth Solutions$2,225 $274 $— $— $1,951 
Health Solutions738 28 (102)10 803 
Investment Management750 33 — (15)732 
Total Net revenue$3,713 $335 $(102)$(5)$3,486 
Adjusted operating margin
Wealth Solutions42.7 %36.2 %
Health Solutions23.4 %29.5 %
Investment Management26.8 %25.0 %
Adjusted operating margin, excluding Corporate35.7 %32.3 %
Adjusted operating margin, including Corporate29.6 %26.7 %
(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable and incentive compensation.
(2) Includes DAC, VOBA, and other intangible unlocking, performance fees above (below) expectations net of related variable compensation, and changes in certain legal and other reserves not expected to recur at the same level.
14





Adjusted Operating Earnings, Net Revenue, Adjusted Operating Margin, and Notable Items
Twelve Months Ended June 30, 2021
(in millions)Amounts including Notable items
Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1)
COVID-19 Impacts
Other (2)
Amounts excluding Notable items
Adjusted operating earnings
Wealth Solutions$833 $286 $— $(86)$633 
Health Solutions206 30 (76)14 238 
Investment Management255 55 — 28 172 
Adjusted operating earnings, excluding Corporate $1,294 $371 $(76)$(44)$1,043 
Corporate(324)(29)— (69)(226)
Adjusted operating earnings, pre-tax$970 $342 $(76)$(113)$817 
Net revenue
Wealth Solutions$2,152 $286 $— $56 $1,810 
Health Solutions680 30 (76)14 712 
Investment Management790 65 — 44 681 
Total Net revenue$3,623 $381 $(76)$114 $3,203 
Adjusted operating margin
Wealth Solutions38.7 %35.0 %
Health Solutions30.3 %33.4 %
Investment Management32.3 %25.3 %
Adjusted operating margin, excluding Corporate35.7 %32.6 %
Adjusted operating margin, including Corporate26.8 %25.5 %
(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable and incentive compensation.
(2) Includes DAC, VOBA, and other intangible unlocking, revenue and expenses in Wealth Solutions related to the FPC prior to its divestment in June 2021 and in Investment Management related to the divestment of Individual Life, stranded costs in Corporate prior to the closing of the Individual Life Transaction, performance fees above (below) expectations net of related variable compensation, and changes in certain legal and other reserves not expected to recur at the same level.

15
Exhibit 99.2



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Quarterly Investor Supplement


June 30, 2022



This report should be read in conjunction with Voya Financial, Inc.'s Quarterly Report on Form 10-Q for the Three Months Ended June 30, 2022. Voya Financial's Annual Reports on Form 10-K, and Quarterly Reports on Form 10-Q, can be accessed upon filing at the Securities and Exchange Commission’s website at www.sec.gov, and at our website at investors.voya.com. All information is unaudited.
Corporate Offices:Media Contact:Investor Contact:
Voya FinancialChristopher BreslinHima Inguva
230 Park Avenue212-309-8941212-309-8999
New York, New York 10169Christopher.Breslin@voya.comIR@voya.com
NYSE Ticker:Web Site:
VOYAinvestors.voya.com
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Table of Contents
PagePage
ConsolidatedInvestment Information
Explanatory Note on Non-GAAP Financial Information3 - 5Portfolio Results GAAP Book Value, Gross Investment Income, and
Key Metrics  Earned Rate by Asset Class
Consolidated Statements of OperationsPortfolio Results Statutory Carrying Values by Asset Class and NAIC
Consolidated Adjusted Operating Earnings Before Income Taxes  Ratings
Adjusted Operating Earnings by Segment (QTD)Alternative Investment Income
Adjusted Operating Earnings by Segment (YTD)Alternative Income and Prepayments Above (Below) Long-Term
Consolidated Balance Sheets  Expectations
DAC/VOBA Segment Trends Reconciliations
Consolidated Capital StructureReconciliation of Consolidated Statements of Operations
Consolidated Assets Under Management, Assets Under AdministrationReconciliation of Adjusted Operating Revenues
  and AdvisementReconciliation of Net Revenues by Segment42 - 43
Wealth SolutionsReconciliation of Adjusted Operating Earnings by Segment
Sources of Adjusted Operating Earnings and Key MetricsReconciliation of Adjusted Operating Earnings and Earnings
Client Assets Rollforward by Product Group17 - 18  Per Common Share (Diluted) (QTD)
Health SolutionsReconciliation of Adjusted Operating Earnings and Earnings
Sources of Adjusted Operating Earnings  Per Common Share (Diluted) (YTD)
Key MetricsReconciliation of Book Value Per Common Share, Excluding AOCI,
Investment Management  Leverage Ratio, and Adjusted Diluted Shares
Sources of Adjusted Operating Earnings
Analysis of AUM and AUA
Account Value Rollforward by Source
Account Value by Asset Type
Corporate
Adjusted Operating Earnings
Net Revenue, Adjusted Operating Margin, Administrative
Expenses, and Adjusted Operating Return on Capital
Net Revenue and Adjusted Operating Margin
Administrative Expenses
Adjusted Operating Return on Allocated Capital Excluding Unlocking32 - 33
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Voya Financial
Page 3 of 47
Explanatory Note on Non-GAAP Financial Information
Adjusted Operating Earnings Before Income Taxes
We believe that Adjusted operating earnings before income taxes provides a meaningful measure of its business and segment performance and enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions or other factors. We use the same accounting policies and procedures to measure segment Adjusted operating earnings before income taxes as we do for the directly comparable U.S. GAAP measure, which is Income (loss) from continuing operations before income taxes.
Adjusted operating earnings before income taxes does not replace Income (loss) from continuing operations before income taxes as a measure of our consolidated results of operations. Therefore, we believe that it is useful to evaluate both Income (loss) from continuing operations before income taxes and Adjusted operating earnings before income taxes when reviewing our financial and operating performance. Each segment’s Adjusted operating earnings before income taxes is calculated by adjusting Income (loss) from continuing operations before income taxes for the following items:
Net investment gains (losses), net of related amortization of DAC, VOBA, sales inducements and unearned revenue, which are significantly influenced by economic and market conditions, including interest rates and credit spreads, and are not indicative of normal operations. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the FVO unrelated to the implied loan-backed security income recognition for certain mortgage-backed obligations and changes in the fair value of derivative instruments, excluding gains (losses) associated with swap settlements and accrued interest;
Net guaranteed benefit gains (losses), which are significantly influenced by economic and market conditions and are not indicative of normal operations, include changes in the fair value of derivatives related to guaranteed benefits, net of related reserve increases (decreases) and net of related amortization of DAC, VOBA and sales inducements, less the estimated cost of these benefits. The estimated cost, which is reflected in operating results, reflects the expected cost of these benefits if markets perform in line with our long-term expectations and includes the cost of hedging. Other derivative and reserve changes related to guaranteed benefits are excluded from operating results, including the impacts related to changes in nonperformance spread;
Income (loss) related to businesses exited or to be exited through reinsurance or divestment, which includes gains and (losses) associated with transactions to exit blocks of business within continuing operations (including net investment gains (losses) on securities sold and expenses directly related to these transactions) and residual run-off activity (including an insignificant number of Individual Life, and non-Wealth Solutions annuities policies that were not part of the divested businesses). Excluding this activity, which also includes amortization of intangible assets related to businesses exited or to be exited, better reveals trends in our core business and more closely aligns Adjusted operating earnings before income taxes with how we manage our segments;
Income (loss) attributable to noncontrolling interest, which represents the interest of shareholders, other than those of Voya Financial, Inc., in the gains and (losses) of consolidated entities, or the attribution of results from consolidated VIEs or VOEs to which we are not economically entitled;
Dividend payments made to preferred shareholders are included as reductions to reflect the Adjusted operating earnings that is available to common shareholders;
Income (loss) related to early extinguishment of debt, which includes losses incurred as a result of transactions where we repurchase outstanding principal amounts of debt; these losses are excluded from Adjusted operating earnings before income taxes since the outcome of decisions to restructure debt are not indicative of normal operations;
Impairment of goodwill, value of management contract rights and value of customer relationships acquired, which includes losses as a result of impairment analysis; these represent losses related to infrequent events and do not reflect normal, cash-settled expenses;
Immediate recognition of net actuarial gains (losses) related to our pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments, which includes actuarial gains and (losses) as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period. We immediately recognize actuarial gains and (losses) related to pension and other postretirement benefit obligations and gains (losses) from plan adjustments and curtailments. These amounts do not reflect normal, cash-settled expenses and are not indicative of current Operating expense fundamentals; and
Other adjustments not indicative of normal operations or performance of our segments or may be related to events such as capital or organizational restructurings undertaken to achieve long-term economic benefits, including certain costs related to debt and equity offerings, acquisition / merger integration expenses, severance and other third-party expenses associated with such activities, and expenses attributable to vacant real estate. These items vary widely in timing, scope and frequency between periods as well as between companies to which we are compared. Accordingly, we adjust for these items as we believe that these items distort the ability to make a meaningful evaluation of the current and future performance of our segments.
Income (loss) related to businesses exited or to be exited through reinsurance or divestment (including net investment gains (losses) on securities sold and expenses directly related to these transactions, and insignificant number of Individual Life, and non-Wealth Solutions annuities policies that were not part of the divested businesses) are excluded from Adjusted operating earnings before income taxes. When we present the adjustments to Income (loss) from continuing operations before income taxes on a consolidated basis, each adjustment excludes the relative portions attributable to businesses exited or to be exited through reinsurance or divestment.
The most directly comparable U.S. GAAP measure to Adjusted operating earnings before income taxes is Income (loss) from continuing operations before income taxes. For a reconciliation of Adjusted operating earnings before income taxes to Income (loss) from continuing operations before income taxes, refer to the "Reconciliations" section in this document.


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Voya Financial
Page 4 of 47


Explanatory Note on Non-GAAP Financial Information
Stranded Costs
As a result of the Individual Life Transaction, the historical revenues and certain expenses of the divested businesses have been classified as discontinued operations. Historical revenues and certain expenses of the businesses that have been divested via reinsurance at closing of the Individual Life Transaction (including an insignificant amount of Individual Life and non-Wealth Solutions annuities that are not part of the transaction) are reported within continuing operations, but are excluded from adjusted operating earnings as businesses exited or to be exited through reinsurance or divestment. Expenses classified within discontinued operations and businesses exited or to be exited through reinsurance include only direct operating expenses incurred by these businesses and then only to the extent that the nature of such expenses was such that we ceased to incur such expenses upon the close of the Individual Life Transaction. Certain other direct costs of these businesses, including those which relate to activities for which we provide transitional services and for which we are reimbursed under transition services agreements (“TSAs”) are reported within continuing operations along with the associated revenues from the TSAs. Additionally, indirect costs, such as those related to corporate and shared service functions that were previously allocated to the businesses sold or divested via reinsurance, are reported within continuing operations. These costs ("Stranded Costs") and the associated revenues from the TSAs are reported within continuing operations in Corporate, since we do not believe they are representative of the future run-rate of revenues and expenses of the continuing operations of our business segments. We have implemented a cost reduction strategy to address Stranded Costs.
Adjusted Operating Earnings per Common Share (Diluted)
In addition to Net income (loss) per common share, we report Adjusted operating earnings per common share (diluted) because we believe that Adjusted operating earnings before income taxes provides a meaningful measure of its business and segment performances and enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions and/or other factors. For a reconciliation of these non-GAAP measures to the most directly comparable U.S. GAAP measures, refer to the "Reconciliation of Adjusted Operating Earnings and Earnings Per Common Share" page of this document.
Shareholders' Equity/Book Value per Common Share, Excluding AOCI
In addition to book value per common share including Accumulated other comprehensive income (AOCI), we also report book value per common share excluding AOCI and shareholders' equity excluding AOCI and preferred stock. Included in AOCI are investment portfolio unrealized gains or losses. In the ordinary course of business we do not plan to sell most investments for the sole purpose of realizing gains or losses, and book value per common share excluding AOCI and common shareholders' equity excluding AOCI provide a measure consistent with that view. For a reconciliation of these non-GAAP measures to the most directly comparable U.S. GAAP measures, refer to the Reconciliation of Book Value Per Common Share, Excluding AOCI" page of this document.
Adjusted Return on Capital
We report Adjusted return on capital ("ROC") because we believe this measure is a useful indicator of how effectively we use capital resources allocated to our segments apart from Corporate and closed block activities, which include our Wealth Solutions, Investment Management and Health Solutions segments. Capital is allocated to each of our segments in proportion to each segment’s target statutory capital, plus an allocation of the differences between statutory capital and total Voya Financial, Inc. shareholders' equity on a GAAP basis (excluding AOCI), based on each segment’s portion of these differences. Statutory surplus in excess of target statutory capital and certain Corporate assets and liabilities, such as certain deferred tax assets and liabilities for unfunded pension plans, are allocated to Corporate.
Adjusted Operating Effective Tax Rate
The adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss) from continuing operations, adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate.
Adjusted Operating Revenues
Adjusted operating revenues is a measure of our segment revenues and a non-GAAP financial measure. Each segment's Adjusted operating revenues are calculated by adjusting Total revenues for the following items:
Net investment gains (losses) and related charges and adjustments, which are significantly influenced by economic and market conditions, including interest rates and credit spreads and are not indicative of normal operations. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the FVO unrelated to the implied loan-backed security income recognition for certain mortgage-backed obligations and changes in the fair value of derivative instruments, excluding gains (losses) associated with swap settlements and accrued interest. These are net of related amortization of unearned revenue;
Gain (loss) on change in fair value of derivatives related to guaranteed benefits, which is significantly influenced by economic and market conditions and not indicative of normal operations, includes changes in the fair value of derivatives related to guaranteed benefits, less the estimated cost of these benefits. The estimated cost, which is reflected in operating results, reflects the expected cost of these benefits if markets perform in line with our long-term expectations and includes the cost of hedging. Other derivative and reserve changes related to guaranteed benefits are excluded from operating revenues, including the impacts related to changes in nonperformance spread;
Revenues related to businesses exited or to be exited through reinsurance or divestment, which includes revenues associated with transactions to exit blocks of business within continuing operations (including net investment gains (losses) on securities sold related to these transactions) and residual run-off activity (including an insignificant number of Individual Life and non-Wealth Solutions annuities policies that were not part of the divested businesses). Excluding this activity better reveals trends in our core business and more closely aligns Adjusted operating revenues with how we manage our segments;
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Page 5 of 47


Explanatory Note on Non-GAAP Financial Information
Revenues attributable to noncontrolling interest, which represents the interests of shareholders, other than those of Voya Financial, Inc., in consolidated entities. Revenues attributable to noncontrolling interest represents such shareholders' interests in the revenues of those entities, or the attribution of results from consolidated VIEs or VOEs to which we are not economically entitled; and
Other adjustments to total revenues primarily reflect fee income earned by our broker-dealers for sales of non-proprietary products, which are reflected net of commission expense in our segments’ operating revenues, other items where the income is passed on to third parties and the elimination of intercompany investment expenses included in Adjusted operating revenues.
The most directly comparable U.S. GAAP measure to Adjusted operating revenues is Total revenues. For a reconciliation of Adjusted operating revenues to Total revenues, refer to the "Reconciliations" section of this document.
Sources of Earnings
We analyze our segment performance based on the sources of earnings. We believe this supplemental information is useful in order to gain a better understanding of our Adjusted operating earnings before income taxes for the following reasons: (1) we analyze our business using this information and (2) this presentation can be helpful for investors to understand the main drivers of Adjusted operating earnings (loss) before income taxes. The sources of earnings are defined as such:
Investment spread and other investment income consists of net investment income and net gains (losses) associated with swap settlements and accrued interest, less interest credited to policyholder reserves.
Fee based margin consists primarily of fees earned on assets under management ("AUM"), assets under administration and advisement ("AUA"), and transaction based recordkeeping fees.
Net underwriting gain (loss) and other revenue contains the following: the difference between fees charged for insurance risks and incurred benefits, including mortality, morbidity, surrender results, and contractual charges.
Administrative expenses are general expenses, net of amounts capitalized as acquisition expenses and exclude commission expenses.
Net commissions are commissions paid that are not deferred and thus recorded directly to expense.
For a detail explanation of DAC/VOBA and other intangibles amortization/unlocking see “Unlocking of DAC/VOBA and Other Intangibles” in our SEC filings.
Net Revenue and Adjusted Operating Margin
•    Adjusted operating margin is defined as adjusted operating earnings before income taxes divided by net revenue.
•    Net revenue is the sum of investment spread and other investment income, fee based margin, and net underwriting gain (loss). Please see the “Reconciliations” section of this document for a
reconciliation of net revenue to adjusted operating revenue for each of our segments.
•    We report net revenue and adjusted operating margin for each of our segments, since they provide a meaningful measure for the two primary drivers for adjusted operating earnings – revenue growth and margin expansion.
•    We also report net revenue and adjusted operating margin excluding notable items, such as alternative investment income above or below our long-term expectations. Please see the “Reconciliations” section of this document for a reconciliation of net revenue to net revenues excluding notable items and of adjusted operating earnings before income taxes to adjusted operating earnings excluding notable items.
•    We report net revenue and adjusted operating margin excluding notable items since it provides the main drivers for adjusted operating earnings excluding the effects of items that are not expected to recur at the same level.
Other Information    
Financial information, unless otherwise noted, is rounded to millions, therefore may not sum to its corresponding total.
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Voya Financial
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Key Metrics
Three Months Ended or As ofYear-to-Date or As of
(in millions USD, unless otherwise indicated)6/30/20223/31/202212/31/20219/30/20216/30/20216/30/20226/30/2021
Net income (loss) available to Voya Financial, Inc.'s common shareholders64 27 403 142 459 91 1,545 
Per common share (basic)0.62 0.26 3.66 1.24 3.81 0.88 12.71 
Per common share (diluted)0.57 0.24 3.36 1.15 3.53 0.80 11.84 
Adjusted operating earnings: (1)
Before income taxes223 209 279 388 353 431 626 
After income taxes185 172 229 315 287 357 510 
Effective tax rate17.1 %17.4 %18.0 %18.8 %18.7 %17.2 %18.5 %
Per common share (Adjusted diluted)1.67 1.47 1.90 2.57 2.20 3.14 3.90 
Shareholder's equity:
Total Voya Financial, Inc. Common Shareholders' Equity3,904 5,586 7,641 7,777 7,750 3,904 7,750 
Total Voya Financial, Inc. Common Shareholders' Equity - Excluding AOCI (1)
4,867 5,059 5,541 5,461 5,319 4,867 5,319 
Book value per common share (including AOCI)39.88 54.66 70.88 69.19 68.34 39.88 68.34 
Book value per common share (excluding AOCI) (1)
49.71 49.50 51.40 48.59 46.90 49.71 46.90 
Leverage Ratios:
Debt to Capital34.6 %28.0 %23.9 %26.2 %26.2 %34.6 %26.2 %
Financial Leverage (1)
36.9 %31.9 %27.6 %29.5 %30.2 %36.9 %30.2 %
Shares:
Weighted-average common shares outstanding
Basic102 106 110 113 121 104 122 
Dilutive effect of warrants
Other dilutive effects (2)
Diluted111 117 120 122 130 114 131 
Adjusted Diluted (1)
111 117 120 122 130 114 131 
Ending shares outstanding98 102 108 112 113 98 113 
Returned to Common Shareholders:
Repurchase of common shares, excluding commissions255 445 310 80 518 700 753 
Dividends to common shareholders20 21 21 19 20 41 40 
Total cash returned to common shareholders275 466 331 99 538 741 793 
(1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 39 of this document.
(2) Includes stock-based compensation awards such as restricted stock units (RSU), performance stock units (PSU), or stock options.
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Consolidated Statements of Operations
Three Months EndedYear-to-Date
(in millions USD)6/30/20223/31/202212/31/20219/30/20216/30/20216/30/20226/30/2021
Revenues (1)
Net investment income581 630 673 731 656 1,211 1,370 
Fee income411 433 446 487 436 844 894 
Premiums595 613 544 573 516 1,208 (4,471)
Net gains (losses)(227)(285)(179)(103)(37)(512)1,705 
Other revenues44 40 49 46 374 84 484 
Income (loss) related to consolidated investment entities115 83 142 275 558 198 564 
Total revenues1,519 1,514 1,675 2,009 2,503 3,033 546 
Benefits and expenses (1)
Interest credited and other benefits to contract owners/policyholders(643)(665)(627)(714)(686)(1,308)3,504 
Operating expenses(605)(632)(636)(642)(706)(1,237)(1,308)
Net amortization of DAC/VOBA(67)(80)(40)(190)(26)(147)(565)
Interest expense(33)(40)(59)(39)(39)(73)(88)
Operating expenses related to consolidated investment entities(18)(6)(13)(13)(18)(24)(23)
Total benefits and expenses(1,366)(1,423)(1,375)(1,598)(1,475)(2,789)1,520 
Income (loss) from continuing operations before income taxes153 91 300 411 1,028 244 2,066 
Less:
Net investment gains (losses) and related charges and adjustments(52)(87)(86)(1)29 (139)67 
Net guaranteed benefit gains (losses) and related charges and adjustments(22)(3)(3)(5)(19)
Income (loss) related to businesses exited or to be exited through reinsurance or divestment (2)
(50)(47)14 (173)247 (97)971 
Income (loss) attributable to noncontrolling interests75 43 100 214 447 118 447 
Income (loss) on early extinguishment of debt(5)(21)— — (4)(10)
Immediate recognition of net actuarial gains (losses) related to pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments— 33 — — — 
Dividend payments made to preferred shareholders14 14 18 18 
Other adjustments(51)(17)(19)(28)(46)(68)(57)
Adjusted operating earnings before income taxes (3)
223 209 279 388 353 431 626 
(1) Year-to-Date 2021 results include impacts related to the Individual Life and the Non-Wealth Solution Annuities businesses that were ceded at the close of the Individual Life Transaction on January 4 ,2021: Premiums and Interest credited and other benefits include the FAS 60 reserves that were ceded at closing; Net gains (losses), Interest credited and other benefits, and Net amortization of DAC/VOBA include the investment gains and related intangible amortization and charges due to the transfer of assets to a comfort trust at closing; all Revenue and Benefit and expense lines are lower than prior periods due to the revenue and expenses related to the businesses ceded that ceased at closing.
(2) Year-to-Date 2021 results include the investment gains, net of related intangible amortization and charges, due to the transfer of assets to a comfort trust pursuant to reinsurance agreements entered into concurrent with the close of the Individual Life Transaction.
(3) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 39 of this document.
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Voya Financial
Page 8 of 47


Consolidated Adjusted Operating Earnings Before Income Taxes
Three Months EndedYear-to-Date
(in millions USD)6/30/20223/31/202212/31/20219/30/20216/30/20216/30/20226/30/2021
Consolidated Adjusted Operating Earnings Before Income Taxes
Adjusted operating revenues
Net investment income and net gains (losses)486 536 571 646 596 1,021 1,170 
Fee income418 440 467 458 440 858 865 
Premiums588 591 539 543 535 1,178 1,085 
Other revenue42 35 41 42 43 77 89 
Adjusted operating revenues (1)
1,534 1,601 1,618 1,689 1,614 3,135 3,209 
Adjusted operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(667)(694)(650)(633)(627)(1,362)(1,280)
Operating expenses(564)(594)(611)(582)(570)(1,158)(1,149)
Net amortization of DAC/VOBA(41)(52)(34)(29)(19)(92)(54)
Interest expense (2)
(40)(52)(44)(56)(46)(92)(101)
Adjusted operating benefits and expenses(1,311)(1,393)(1,339)(1,301)(1,261)(2,704)(2,583)
Adjusted operating earnings before income taxes (1)
223 209 279 388 353 431 626 
Adjusted Operating Revenues and Adjusted Operating Earnings by Segment
Adjusted operating revenues
Wealth Solutions706 754 791 857 807 1,460 1,589 
Health Solutions640 647 599 606 591 1,287 1,190 
Investment Management171 178 201 200 193 349 382 
Corporate17 22 27 25 24 39 48 
Adjusted operating revenues (1)
1,534 1,601 1,618 1,689 1,614 3,135 3,209 
Adjusted operating earnings
Wealth Solutions186 205 241 319 295 391 550 
Health Solutions47 22 33 71 63 68 100 
Investment Management40 39 59 63 66 79 118 
Corporate(49)(58)(54)(65)(71)(107)(142)
Adjusted operating earnings before income taxes (1)
223 209 279 388 353 431 626 
(1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 39 of this document.
(2) Includes dividend payments made to preferred shareholders.
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Voya Financial
Page 9 of 47


Adjusted Operating Earnings by Segment
Three Months Ended June 30, 2022
(in millions USD)Wealth SolutionsHealth SolutionsInvestment ManagementCorporate Consolidated
Adjusted operating revenues
Net investment income and net gains (losses)446 35 — 486 
Fee income239 19 160 — 418 
Premiums— 588 — — 588 
Other revenue21 (2)17 42 
Adjusted operating revenues (1)
706 640 171 17 1,534 
Adjusted operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(222)(445)— — (667)
Operating expenses(265)(141)(131)(26)(564)
Net amortization of DAC/VOBA(33)(8)— — (41)
Interest expense (2)
— — — (40)(40)
Adjusted operating benefits and expenses(520)(594)(131)(66)(1,311)
Adjusted operating earnings before income taxes (1)
186 47 40 (49)223 
Three Months Ended June 30, 2021
Wealth SolutionsHealth SolutionsInvestment ManagementCorporateConsolidated
Adjusted operating revenues
Net investment income and net gains (losses)525 42 27 596 
Fee income262 15 163 — 440 
Premiums— 535 — — 535 
Other revenue20 (2)22 43 
Adjusted operating revenues (1)
807 591 193 24 1,614 
Adjusted operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(223)(403)— — (627)
Operating expenses(277)(117)(127)(49)(570)
Net amortization of DAC/VOBA(12)(6)— — (19)
Interest expense (2)
— — — (45)(46)
Adjusted operating benefits and expenses(512)(527)(127)(95)(1,261)
Adjusted operating earnings before income taxes (1)
295 63 66 (71)353 
(1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 39 of this document.
(2) Includes dividend payments made to preferred shareholders.
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Voya Financial
Page 10 of 47


Adjusted Operating Earnings by Segment
Six Months Ended June 30, 2022
(in millions USD)Wealth SolutionsHealth SolutionsInvestment ManagementCorporateConsolidated
Adjusted operating revenues
Net investment income and net gains (losses)931 74 16 1,021 
Fee income495 38 325 — 858 
Premiums— 1,178 — — 1,178 
Other revenue34 (3)38 77 
Adjusted operating revenues (1)
1,460 1,287 349 39 3,135 
Adjusted operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(441)(921)— — (1,362)
Operating expenses(551)(282)(271)(54)(1,158)
Net amortization of DAC/VOBA(77)(16)— — (92)
Interest expense (2)
— — — (92)(92)
Adjusted operating benefits and expenses(1,069)(1,219)(271)(146)(2,704)
Adjusted operating earnings before income taxes (1)
391 68 79 (107)431 
Six Months Ended June 30, 2021
Wealth SolutionsHealth SolutionsInvestment ManagementCorporateConsolidated
Adjusted operating revenues
Net investment income and net gains (losses)1,034 77 55 1,170 
Fee income514 31 321 — 865 
Premiums— 1,085 — — 1,085 
Other revenue41 (3)45 89 
Adjusted operating revenues (1)
1,589 1,190 382 48 3,209 
Adjusted operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders(440)(841)— — (1,280)
Operating expenses(560)(236)(264)(89)(1,149)
Net amortization of DAC/VOBA(41)(13)— — (54)
Interest expense (2)
— — — (101)(101)
Adjusted operating benefits and expenses(1,040)(1,090)(264)(190)(2,583)
Adjusted operating earnings before income taxes (1)
550 100 118 (142)626 
(1) This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer to the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 39 of this document.

(2) Includes dividend payments made to preferred shareholders.
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Voya Financial
Page 11 of 47


Consolidated Balance Sheets
Balances as of
(in millions USD)6/30/20223/31/202212/31/20219/30/20216/30/2021
Assets
Total investments40,913 42,950 45,581 46,429 45,995 
Cash and cash equivalents954 1,011 1,402 1,677 1,765 
Assets held in separate accounts80,017 93,108 100,433 96,794 97,098 
Premium receivable and reinsurance recoverable, net13,079 13,261 13,635 13,580 13,490 
Short term investments under securities loan agreement and accrued investment income 1,536 1,507 1,536 1,652 1,481 
Deferred policy acquisition costs, Value of business acquired2,480 1,921 1,378 1,337 1,446 
Current and deferred income taxes (1)
1,795 1,405 986 696 703 
Other assets (2)
2,581 2,710 2,532 2,626 2,762 
Assets related to consolidated investment entities4,165 3,933 3,779 3,626 3,454 
Total Assets 147,520 161,806 171,262 168,417 168,194 
Liabilities
Future policy benefits and contract owner account balances53,151 52,765 52,758 52,943 52,598 
Liabilities related to separate accounts80,017 93,108 100,433 96,794 97,098 
Payables under securities loan agreements, including collateral held1,220 1,124 1,183 1,201 1,004 
Short-term debt
Long-term debt2,385 2,406 2,595 2,970 2,969 
Other liabilities (3)
2,379 2,596 2,578 2,807 3,019 
Liabilities related to consolidated investment entities2,154 2,102 1,893 1,706 1,730 
Total Liabilities141,307 154,102 161,441 158,422 158,419 
Shareholders' Equity
Preferred stock— — — — — 
Common stock
Treasury stock(821)(565)(80)(1,906)(1,820)
Additional paid-in capital7,500 7,504 7,542 11,215 11,143 
Retained earnings (deficit)(1,201)(1,269)(1,310)(3,238)(3,394)
Total Voya Financial, Inc. Shareholders' Equity - Excluding AOCI5,479 5,671 6,153 6,073 5,931 
Accumulated other comprehensive income(963)527 2,100 2,316 2,431 
Total Voya Financial, Inc. Shareholders' Equity4,516 6,198 8,253 8,389 8,362 
Noncontrolling interest1,697 1,506 1,568 1,606 1,413 
Total Shareholders' Equity6,213 7,704 9,821 9,995 9,775 
Total Liabilities and Shareholders' Equity147,520 161,806 171,262 168,417 168,194 
(1) Current and deferred income taxes:
Deferred Tax Asset primarily related to Federal NOL's1,507 1,520 1,504 1,517 1,638 
Tax valuation allowance related to Federal NOL's— — — (180)(180)
Deferred Tax Asset (Liability) related to Unrealized Capital Gains and Losses290 (106)(525)(582)(613)
Other Net Deferred Tax Asset (Liability) related to DAC, reserves, and other temporary differences(2)(9)(59)(142)
Total Current and deferred income taxes1,795 1,405 986 696 703 
Gross Unrealized Gains (losses) reflected in AOCI(1,379)507 2,499 2,772 2,917 
21% Tax Effect290 (106)(525)(582)(613)
(2) Includes Other assets, Sales inducements to contract holders, Goodwill and other intangible assets.
(3) Includes Other liabilities, Derivatives, Pension and other postretirement provisions, Funds held under reinsurance agreements, and Current income taxes.
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Voya Financial
Page 12 of 47


DAC/VOBA Segment Trends
Three Months EndedYear-to-Date
(in millions USD)6/30/20223/31/202212/31/20219/30/20216/30/20216/30/20226/30/2021
Wealth Solutions
Balance as of Beginning-of-Period975 430 381 332 456 430 207 
Deferrals of commissions and expenses16 17 17 17 17 33 33 
Amortization(12)(9)(12)(32)(23)(21)(48)
Unlocking(35)(51)(8)10 27 (86)10 
Change in unrealized capital gains/losses586 588 53 53 (144)1,174 130 
Balance as of End-of-Period1,530 975 430 381 332 1,530 332 
Deferred Sales Inducements as of End-of-Period (1)
26 25 23 24 24 26 24 
Other (2)
Balance as of Beginning-of-Period163 152 148 143 142 152 134 
Deferrals of commissions and expenses17 10 10 11 27 20 
Amortization(8)(8)(6)(3)(10)(16)(19)
Unlocking— — — — — — — 
Change in unrealized capital gains/losses(2)— 16 
Balance as of End-of-Period180 163 152 148 143 180 143 
Total
Balance as of Beginning-of-Period1,138 582 528 475 598 582 341 
Deferrals of commissions and expenses33 27 26 27 28 60 53 
Amortization(20)(17)(18)(35)