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Voya Financial in Talks with Insurance Groups to Sell Business

Zacks Equity Research

Voya Financial, Inc. VOYA is considering selling its business to other insurance groups.

In connection with the divestiture, Voya has discussed with the companies, which are interested in its purchase. The companies include insurer American International Group Inc., asset manager Principal Financial Group Inc. and life insurance and retirement plan provider Prudential Financial Incorporation.

This divestiture could value the U.S. retirement and insurance plan provider at $10 billion or more, which is above its current market capitalization of $8 billion.

Voya sold its annuity business to a consortium led by private equity group Apollo, two years back. In December, it divested another $2.5 billion block of life insurance business to Resolution. This, in turn, makes Voya more attractive to an acquirer, who focuses on capital-light markets, in which it specializes. Currently, the company is focused on selling its remaining business lines, which include retirement, investment management and employee benefits plan.

This Zacks Rank #3 (Hold) stock has outperformed its industry in the past year. Shares of the company have gained 47.6% compared with the industry’s growth of 26.7%.


 

Stocks to Consider

Some better-ranked stocks from the same space are American Equity Investment Life Holding Co. AEL, Sun Life Financial Inc. SLF and Brighthouse Financial Inc. BHF, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

American Equity Investment Life Holding Co. provides life insurance products and services in the United States. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, the beat being 47.63%, on average.

Sun Life Financial is a financial services company. It provides insurance, wealth, and asset management solutions to individuals and corporate clients worldwide. The company outpaced earnings estimates in two of the last four reported quarters, the beat being 2.13%, on average.

Brighthouse Financial offers annuity and life insurance products in the United States. The company topped earnings estimates in two of the last four reported quarters, the beat being 0.70%, on average.

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Sun Life Financial Inc. (SLF) : Free Stock Analysis Report
 
Voya Financial, Inc. (VOYA) : Free Stock Analysis Report
 
American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report
 
Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
 
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