Voya Financial, Inc. VOYA has declared certain steps to assist Americans facing financial problems as a result of the novel coronavirus pandemic.
There has been an increase in loans and adversities since early March and the same is expected to continue in the coming months. Some people are utilizing their retirement savings to meet health care costs and other unexpected expenses. Voya is offering its customers withdrawal and loan fee-credits in a bid to overcome financial challenges.
Voya will rebate fees associated with coronavirus-related distributions allowed under the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act, hardship distribution fees and loan initiation fees from Apr 1 through Sep 30 to participants in the defined contribution (DC) plans.
According to the Cares Act, COVID-19 affected people can withdraw up to $100,000 without the usual 10% penalty. It will also allow loans of up to $100,000.
Depending on the use of credits, Voya estimates that the fees it credits back on those transactions to total $10 million to $20 million among its DC plan clients.
Per the announcement, the company will further offer free access to a range of online resources, which include videos addressing relief under the Cares Act and virtual group meetings through Sep 30. This free educational guidance is aimed at assisting individuals in following the CARES Act and the trade-offs involved in choosing among available financial resources.
Shares of this Zacks Rank #3 (Hold) life insurer have lost 27.5% compared with the industry’s decline of 34.4%.
Stocks to Consider
A few better-ranked stocks in the life insurance sector are American Equity Investment Life Holding Company AEL, Primerica, Inc. PRI and FGL Holdings FG. While American Equity Investment sports a Zacks Rank #1 (Strong Buy), Primerica and FGL Holdings carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
American Equity Investment and Primerica outpaced estimates in each of the last four quarters, the positive surprise being 53.38% and 3.69% on average, respectively.
FGL Holdings surpassed estimates in three of the last four quarters, the positive surprise being 15.73%, on average.
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American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report
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