Voya Financial Inc (VOYA) Reports Mixed Results for Q4 and Full-Year 2023
Net Income: Q4 net income at $118 million, full-year climbs to $589 million.
Diluted EPS: Q4 EPS stands at $1.10, with full-year EPS reaching $5.42.
Adjusted Operating Earnings: Q4 adjusted earnings fall to $174 million, full-year totals $763 million.
Health Solutions: Record earnings despite a Q4 dip, with annualized in-force premiums and fees growing 19.8%.
Wealth Solutions: Full-service recurring deposits up 10.4%, with total client assets increasing by 14%.
Investment Management: Q4 earnings rise, despite $14 billion of net outflows over the year.
Capital Generation: Approximately $0.8 billion of excess capital generated in 2023.
On February 6, 2024, Voya Financial Inc (NYSE:VOYA) released its 8-K filing, detailing its financial performance for the fourth quarter and the full year of 2023. Voya Financial, a prominent financial services company, provides a range of investment, insurance, and retirement solutions to its clients. Operating through Wealth Solutions, Investment Management, and Health Solutions, the company has reported mixed results, reflecting both achievements and challenges in the financial landscape.
Financial Performance Overview
Voya Financial Inc (NYSE:VOYA) has reported a net income available to common shareholders of $118 million, or $1.10 per diluted share, for the fourth quarter of 2023, a decrease from the $190 million, or $1.78 per diluted share, in the fourth quarter of 2022. The full-year net income, however, rose to $589 million, or $5.42 per diluted share, from $474 million, or $4.30 per diluted share, in 2022. The company attributes the annual increase to lower investment losses and reduced losses within businesses exited, despite higher integration and severance costs.
Adjusted operating earnings for the fourth quarter were $174 million, or $1.63 per diluted share, down from $227 million, or $2.13 per diluted share, in the same quarter of the previous year. The full-year adjusted operating earnings reached $763 million, or $7.02 per diluted share, a slight decrease from $807 million, or $7.32 per diluted share, in 2022. This decline was primarily due to the absence of favorable foreign tax credit adjustments and annual assumption updates in Health Solutions that occurred in the previous year.
Segment Highlights and Capital Management
The Wealth Solutions segment saw a modest increase in pre-tax adjusted operating earnings for the fourth quarter, driven by higher alternative investment income and favorable equity market impacts. The Health Solutions segment, despite a decrease in fourth-quarter earnings due to exceptionally strong underwriting results in the prior year, achieved record earnings for the full year, bolstered by the Benefitfocus acquisition and in-force premium growth.
Investment Management experienced an uptick in fourth-quarter earnings, thanks to higher fee revenues and positive investment capital returns. However, the segment faced $14 billion in net outflows over the year, attributed to macroeconomic headwinds and the unwinding of a former international distribution partnership.
Voya Financial generated approximately $0.8 billion of excess capital in 2023, deploying around $1.3 billion, including share repurchases and dividends. As of December 31, 2023, the company had about $0.4 billion of excess capital.
"Our fourth-quarter and full-year 2023 results demonstrate our commitment to execution; discipline in managing expenses while continuing to reinvest in our businesses; and the benefits of Voyas diversified, capital-light business mix," said Heather Lavallee, CEO of Voya Financial. "Looking ahead, our diversified revenue sources and prudent expense-management track record give us confidence in our ability to consistently generate strong free cash flows, and our capital deployment focus in 2024 will be on share repurchases and dividends."
Looking Forward
Voya Financial Inc (NYSE:VOYA) remains optimistic about its commercial momentum in 2024, expecting additional growth, healthy margins, strong cash generation, and further return of excess capital to shareholders. The company's diversified revenue sources and expense management are anticipated to support consistent free cash flow generation and capital deployment strategies focused on shareholder returns.
For more detailed financial information, including the companys quarterly investor supplement, please visit Voyas investor relations website at investors.voya.com. Voya will also host a conference call to discuss the fourth-quarter and full-year 2023 results, further demonstrating its commitment to transparency and stakeholder engagement.
Explore the complete 8-K earnings release (here) from Voya Financial Inc for further details.
This article first appeared on GuruFocus.
