Voya Financial : Q1 2026 Voya Financial Earnings Presentation

Published: 2026-05-06 00:10:07 ET VOYA

Published on 05/06/2026 at 12:10 am EDT

Voya Financial

First Quarter 2026 Call

May 6, 2026

Information contained herein is proprietary, confidential and non-public and is not for public release.

Forward-Looking and Other Cautionary Statements

This presentation and the remarks made orally contain forward-looking statements. The company does not assume any obligation to revise or update these statements to reflect new information, subsequent events or changes in strategy. Forward-looking statements include statements relating to future developments in our business or expectations for our future financial performance and any statement not involving a historical fact. Forward-looking statements use words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. Actual results, performance or events may differ materially from those projected in any forward-looking statement due to, among other things, (i) global market and geopolitical risks (including war and terrorism), including general economic conditions, impacts of a U.S. government shutdown, interest rates, inflation, tariffs imposed or proposed by the U.S. or foreign governments and our ability to manage such risks; (ii) liquidity and credit risks, including financial strength or credit ratings downgrades, requirements to post collateral, and availability of funds through dividends from our subsidiaries or lending programs;

(iii) strategic and business risks, including our ability to maintain market share, achieve desired results from our acquisitions and dispositions, adapt to disruptive technology or innovations, or otherwise manage our third-party relationships; (iv) investment risks, including the ability to achieve desired returns or liquidate certain assets; (v) operational risks, including cybersecurity and privacy failures and our dependence on third parties; and (vi) tax, regulatory and legal risks, including limits on our ability to use deferred tax assets, changes in law, regulation or accounting standards, and our ability to comply with regulations. Factors that may cause actual results to differ from those in any forward-looking statement also include those described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") - Trends and Uncertainties" in our Annual Report on Form 10-K for the year ended Dec. 31, 2025 as filed with the SEC on February 20, 2026, and in our Quarterly Report on Form 10-Q for the three months ended Mar. 31, 2026, to be filed with the SEC on or before May 11, 2026.

This presentation and the remarks made orally contain certain non-GAAP financial measures. Non-GAAP measures include Adjusted Operating Earnings, Adjusted Operating Return on Common Equity, Adjusted Operating Earnings Per Share, Net Revenue, Adjusted Operating Margin, and Financial Leverage. Information regarding these and other non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures, is provided in our quarterly earnings press releases and in our quarterly investor supplements, all of which are available at the Investor Relations section of Voya Financial's website at investors.voya.com.

Key Themes & Strategic Priorities

Heather Lavallee, Chief Executive Officer

Information contained herein is proprietary, confidential and non-public and is not for public release. 3

1Q'26 Highlights

Disciplined execution on priorities delivers strong earnings results

Strong adjusted operating earnings of $2.26 per share, driven by higher earnings across all businesses

Durable cash generation of approximately $200 million, driving first half

2026 capital return

Robust and sustainable margins in Retirement and Investment

Management, while executing on margin expansion in Employee Benefits

Financial Highlights & Business Segment Performance

Mike Katz, Chief Financial Officer

1Q'26 Financial Results

Higher earnings across all segments and robust capital return

$214

$195

+10%

After Tax (Millions)

$2.26

$2.00

+13%

Per Diluted Share

1Q'25 1Q'26 1Q'25 1Q'26

Available to Common Shareholders (Millions)

$139 $165

$7.48 $9.11

Retirement

High quality and scaled franchise driving robust earnings growth and sustainable margins

$842

$207

$209

$960

+14%

(Millions)

+1%

Adjusted operating earnings for 1Q'26 TTM

increased 14% year-over-year

Revenue growth of 15% while maintaining operating margins over 39%

1Q'26 net revenues increased 5% driven by higher fee-based revenues up 8% year-over-year

2Q'26 and FY'26 strong net inflows expected, following record year in FY'25

1Q'25 1Q'26 1Q'25 TTM 1Q'26 TTM

Investment Management

Earnings growth underscores diversified platform strength and disciplined expense management

+8%

$231

$213

+12%

$41

$46

Excludes Noncontrolling Interest (Millions)

1Q'25 1Q'26 1Q'25 TTM 1Q'26 TTM

Adjusted operating earnings for 1Q'26 TTM

increased 8% year-over-year

Performance reflects strong commercial momentum, sustained investment performance, and continued expense management

1Q'26 earnings rose 12%, primarily on higher

management fees

Net inflows of $6.9 billion over the last twelve

months, representing organic growth of 2.3%

2Q'26 and FY'26 positive net flows expected

Employee Benefits

Executing on margin improvement across all product lines

+526%

(Millions)

Adjusted operating earnings for 1Q'26 TTM

+37%

$169

$46

$63

$27

increased meaningfully year-over-year

Performance reflects improved net

underwriting from expanded margins

Stop Loss reported loss ratio of 79.5% in 1Q'26

reflects favorable claims experience1

Group Life loss ratio of 70.6%, driven by lower frequency and severity

Voluntary loss ratio of approximately 50%, in

line with expectations

1Q'25 1Q'26 1Q'25 TTM 1Q'26 TTM

Reflects $25M of reserve released in the quarter, primarily driven by 2024 and prior policy years, with a smaller contribution from the 2025 policy year. 9

Durable Free Cash Flow and Strong Return on Equity

Free Cash Flows (Billions)2

18.6%

18.7%

16.5%

$0.8 $0.8

$0.6

1Q'26

Target FCF 90%

90%

$0.2

90%

FY'24 FY'25 1Q'26 TTM

Excess capital generation prior to share repurchases, common dividends, and inorganic growth investments. See page 15 for definition of excess capital.

The amounts and percentages displayed on this page are approximate and rounded. Free cash flow conversion defined as excess capital generated as a percentage of Adjusted Operating Earnings after tax.

Please refer to Investor Supplement for the definition of Adjusted Operating Return on Equity ex. AOCI and NOL DTA and a reconciliation to the most comparable U.S. GAAP measure.

Capital Return Driving Meaningful Value for Shareholders

$1.70

$1.82

$1.84

$1.20

$0.80

110

109

101

2022 2023 2024 2025 1Q'26 TTM

2022 2023 2024 2025 2026

Mar. 31

Weighted average diluted common shares outstanding in Millions at 12/31, unless otherwise noted. 11

A Strong Start to 2026 Builds on 2025 Momentum

Disciplined execution and clear priorities support shareholder value creation

Grow excess cash generation in 2026 while maintaining balance sheet strength and capital flexibility

Continue to drive strong commercial momentum across the business

Further improve margins in Employee Benefits

Investor Value Proposition

Well positioned Retirement, Investment Management, and Employee Benefits company

Diverse and complementary businesses with attractive returns

Consistent and growing free cash flow

Healthy balance sheet

Appendix

27.2%

Strong and Well-Positioned Balance Sheet

$0.25B

396%

Excess Capital is defined as Statutory Total Adjusted Capital (TAC) in excess of 375% RBC level, Holding Company Liquidity in excess of required liquidity, and Voya Investment Management tangible capital in excess of target. Holding

Company Liquidity includes cash, cash equivalents, and short-term investments held at Voya Financial, Inc. and Voya Holdings Inc. Excess Capital and RBC are both adjusted for certain intercompany loans and transactions.

Balance is approximate and rounded, reflects OneAmerica earn out payment made in the quarter, and a pro forma adjustment to exclude the $400m debt issuance with net proceeds expected to be used to fund a second-quarter maturity.

Key Sensitivities

Annualized Pre-tax Earnings Impact (Millions)

Total

Retirement

Investment Management1

Employee Benefits

S&P 500 Change +/- 10%

+/- $65 - $90

+/- $50 - $65

+/- $15 - $25

Interest Rate Changes +/- 100 bps2

+/- $15 - $35

+/- $30 - $40

-/+ $5 - $15

$1B Change in Spread Assets

+/- $20 - $30

$1B Change in Net Flows

+/- $1.5 - $2.5

1% Change in Aggregate Loss ratio

+/- $25 - $35

Alternative Investment return +/- 1%

+/- $19 - $21.5

+/- $15 - $16

+/- $2 - $3

+/- $2 - $2.5

Annualized pre-tax is net of variable compensation and excludes noncontrolling interest.

Reflects a parallel shift in forward curve, excluding impacts to Retirement spread assets and Investment Management net flows due to customer behavior, which are shown separately.

Seasonality

Retirement

Investment Management

Employee Benefits

Corporate & Other

All Segments

Defined Contribution tends to have the highest recurring deposits

Withdrawals tend to increase

90 fee and crediting interest days in quarter

Group Life loss ratio tends to be highest

Sales tend to be the highest

Seasonally higher preferred dividend

Admin expenses tend to be

the highest

Payroll taxes and long-term incentive tend to be highest

Other annual expenses are concentrated in 1Q

91 fee and crediting interest days in quarter

Seasonally lower preferred dividend

92 fee and crediting interest days in quarter

Sales tend to be second highest

Seasonally higher preferred dividend

Defined Contribution tends to see highest transfer / single deposits

Withdrawals tend to increase

Recurring deposits in Defined Contribution tend to be lower

92 fee and crediting interest days in quarter

Admin expenses tend to be seasonally higher

Performance fees tend to be

highest

Expenses tend to be higher

for open enrollment

Seasonally lower preferred dividend

Effective tax rate tends to be impacted by filing of prior year tax return

1Q'26 Adjusted Operating to Net Income Walk

Primarily Non-Cash

(Millions)

$195

$13

$(3)

$214

$(30)

$165

$(21)

1Q'25 Adj. Op.

Retirement

Investment

Employee

Corporate

1Q'26 Adj. Op.

Net

Business

Other 3

1Q'26

Earnings

Management

Benefits

Earnings

Investment

Exited 2

Net Income 4

After-Tax

Gain/(Loss)1

Net investment losses primarily due to investment revaluations from interest rates movements.

Loss related to businesses exited primarily includes amortization of intangibles.

Includes a gain on the sale of an office building, offset by amortization of acquisition intangibles and OneAmerica integration costs.

For adjusted operating earnings, we apply a 21% tax rate and adjust for the dividends received deduction, tax credits, nondeductible compensation, and other tax benefits and expenses that relate to adjusted operating earnings. For net investment gains (losses), Income (loss) related to businesses exited, and other non-operating items, we apply a 21% tax rate and adjust for related tax benefits and expenses, including changes to tax valuation allowances and impacts related to changes in tax law.

Retirement

Defined Contribution assets grew at a 10% CAGR from 2021 to 1Q'26, outpacing the industry1

(Billions)

Drive continued commercial momentum

$467

$284

$188

$418

$728

$712

$255

$163

$447

$439

$340

$298

$549

$483

$185

$208

$272

$281

Expand our solutions and capabilities in Wealth Management

Participant Accounts (Millions)

FY'21 FY'22 FY'23 FY'24 FY'25 1Q'26

Continue to enhance productivity while investing for growth

6.3 6.7 6.9 7.5 9.9 9.9

Cerulli US DC Distribution 2025 Report.

Net flows were driven largely by the timing of plan fundings, including one expected large plan surrender.

Investment Management

Diversified platform and solutions positioned to capitalize on growth opportunities

Maintain strong momentum in insurance asset management and retail international channels

Scale and expand alternatives and private asset strategies across distribution channels

$353

$360

(Billions)

$264

$322

$321

$339

Organic Growth Rate2

FY'21 FY'22 FY'23 FY'24 FY'25 1Q'26

Continue to enhance operational productivity while investing for growth

Expand U.S. Intermediary product array to capture

new and scale in flagship strategies

4.2% 0.5% (4.9)% 4.4% 4.8% 0.0%

Excludes net flows from divested businesses.

Organic Growth Rate represents net flows as a percentage of beginning of period commercial AUM, excluding General Account and market appreciation.

One third of 2023 flows was attributed to transition items.

Disclaimer

Voya Financial Inc. published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 04:09 UTC.