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Voya Financial Posts Strong Q1 Adjusted EPS, Beats Estimates

EditorLina Guerrero
Published 30/04/2024, 22:56
© Reuters.
VOYA
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NEW YORK - Voya Financial, Inc. (NYSE: NYSE:VOYA) has released its first-quarter financial results for 2024, showcasing a robust performance with adjusted earnings per share (EPS) that exceeded analyst expectations. The company reported an adjusted EPS of $1.77, which is $0.13 higher than the analyst estimate of $1.64. Revenue for the quarter was also strong, coming in at $2.05 billion, surpassing the consensus estimate of $1.8 billion.

The financial services provider attributed its impressive first-quarter results to significant growth in fee-based revenue across all business segments and effective expense management. Compared to the same quarter last year, Voya Financial's adjusted operating EPS grew by 23%, highlighting the company's ability to leverage its diversified revenue streams and maintain strict cost discipline.

Heather Lavallee, CEO of Voya Financial, commented on the company's performance, stating, "In the first quarter of 2024, adjusted operating EPS grew 23% compared with the prior-year period, reflecting the strength of our diversified revenues and expense discipline." She emphasized the company's strategic execution, which included record sales in Health Solutions, improvements in Wealth Solutions, and a return to positive flows in Investment Management.

Voya Financial's Wealth Solutions segment reported pre-tax adjusted operating earnings of $186 million, up from $132 million in the prior-year period, driven by favorable equity market impacts and lower administrative expenses. Health Solutions experienced a 17% growth in annualized in-force premiums and fees, reaching $3.9 billion, though pre-tax adjusted operating earnings for the quarter were $59 million, down from $94 million in the prior-year period due to normalizing Stop Loss net underwriting gains.

The Investment Management segment saw an increase in pre-tax adjusted operating earnings to $42 million, up from $33 million, benefiting from positive capital markets and strong sales in Retail and insurance.

Voya's capital generation remained strong, with approximately $0.2 billion generated and returned in the first quarter, including $172 million in share repurchases and $41 million in common stock dividends. The board of directors has also authorized an additional $500 million for common stock repurchases, demonstrating confidence in the company's financial health and commitment to shareholder returns.

While the company did not provide specific guidance for future quarters or fiscal years in the press release, the current quarter's performance and management's focus on strategic priorities suggest a positive outlook for Voya Financial's continued growth and profitability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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