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Voya Financial Inc (NYSE:VOYA) presented its second quarter 2025 results on August 6, showing continued momentum in its core businesses despite mixed performance across segments. The financial services company reported adjusted operating earnings per share of $2.46, up from $2.18 in the same quarter last year, driven by strong commercial results in Retirement and Investment Management segments.
Quarterly Performance Highlights
Voya reported adjusted operating earnings of $240 million for Q2 2025, a 7.6% increase from $223 million in Q2 2024. However, net income declined to $162 million from $201 million in the prior-year period. The company maintained its excess capital generation at $0.2 billion, consistent with the previous year.
As shown in the following comprehensive financial results summary:
The company attributed its strong performance to favorable Employee Benefit results, improved Stop Loss performance, OneAmerica earnings contribution, disciplined expense management, and robust commercial momentum across business segments.
"Our diverse and complementary businesses continue to generate attractive returns and consistent strong free cash flow while maintaining a healthy balance sheet," said Heather Lavallee, Chief Executive Officer, according to the presentation.
Segment Performance Analysis
The Retirement segment emerged as the standout performer, with adjusted operating earnings increasing to $235 million in Q2 2025 from $214 million in Q2 2024. On a trailing twelve-month basis, the segment’s earnings grew by an impressive 19% to $863 million.
The strong performance in Retirement was driven by favorable equity markets, disciplined expense management, and the successful integration of OneAmerica. Year-to-date defined contribution net flows reached $41 billion, including $11.6 billion in Q2 alone.
The following chart illustrates the Retirement segment’s earnings growth:
Investment Management also delivered solid results, with adjusted operating earnings of $51 million in Q2 2025, slightly up from $50 million in Q2 2024. On a trailing twelve-month basis, the segment’s earnings grew by 15% to $214 million, supported by commercial momentum, AUM growth, and expense discipline.
The segment achieved year-to-date organic growth of 3.1%, as shown in the following earnings summary:
The Employee Benefits segment showed signs of improvement with adjusted operating earnings of $69 million in Q2 2025, up from $60 million in Q2 2024. However, on a trailing twelve-month basis, the segment’s earnings declined significantly by 83% to $36 million from $216 million.
The company highlighted positive claim development across all products in Employee Benefits, with particular improvement in the Stop Loss business:
Balance Sheet and Capital Position
Voya maintained a strong balance sheet with $0.3 billion in excess capital and a Risk-Based Capital (RBC) ratio of 401%, well above its target of 375%. The company’s financial leverage ratio stood at 27.4%, comfortably within its target range of 25-30%.
These key metrics demonstrate Voya’s financial strength:
The company has maintained a consistent track record of generating free cash flow with a conversion rate close to 100% in recent years. Return on equity excluding accumulated other comprehensive income (AOCI) and net operating loss (NOL) deferred tax assets (DTA) remained above 17%.
The following chart illustrates Voya’s strong cash flow generation capabilities:
Strategic Initiatives and Outlook
Voya highlighted three key strategic priorities: driving continued organic growth in Retirement and Investment Management, advancing the OneAmerica integration, and improving Employee Benefits margins through enhanced Stop Loss execution.
The company’s investment portfolio remains well-diversified, with 96% of its $39 billion general account investment portfolio rated as investment grade. However, the company noted that alternative investment income is expected to be lower in the third quarter.
The integration of OneAmerica appears to be progressing well, with plan retention consistent with expectations at 90%. This acquisition has significantly contributed to the growth in Retirement segment earnings and expanded Voya’s participant base, which has grown at an 11% CAGR from 2020 to 2025, approaching 10 million accounts.
For investors, Voya’s presentation reinforces its position as a company with diverse revenue streams capable of generating consistent free cash flow across market cycles. The stock closed at $67.95 on August 5, 2025, up 0.13% for the day, and has traded between $52.43 and $84.30 over the past 52 weeks.
While the company faces challenges in its Employee Benefits segment, the strong performance in Retirement and Investment Management, coupled with disciplined expense management and strategic initiatives, positions Voya well for continued growth in the remainder of 2025.
Full presentation:
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