-
First-quarter 2018 net income available to common shareholders of
$2.50 per diluted share
-
First-quarter 2018 adjusted operating earnings1
of $0.77 per diluted share, after-tax, reflecting:
-
$(0.31) per diluted share, after-tax, of unfavorable deferred
acquisition costs and value of business acquired (“DAC/VOBA”) and
other intangibles unlocking, and
-
$0.05 per diluted share, after-tax and DAC/VOBA, of prepayment
fees and alternative investment income above the company’s
long-term expectations.
-
Business segment highlights:
-
Retirement total deposits of $4.5 billion; full-service Corporate
market net flows of $271 million; adjusted operating earnings of
$109 million
-
Investment Management sourced net flows of $56 million; adjusted
operating margin excluding investment capital results1
of 28.6%
-
Employee Benefits in-force premium growth driven by Group Life and
Voluntary; loss ratios of 79.3% for Group Life, 80.2% for Stop Loss
-
Total assets under management and administration of $541 billion
-
Adjusted debt-to-capital ratio, excluding accumulated other
comprehensive income (AOCI), of 28.1%1
-
Estimated combined risk-based capital ratio of 463%2
-
Excess capital of $548 million2
NEW YORK--(BUSINESS WIRE)--
Voya Financial, Inc. (NYSE:VOYA) announced today first-quarter 2018 net
income available to common shareholders of $446 million, or $2.50 per
diluted share, compared with a first-quarter 2017 net loss available to
common shareholders of $143 million, or $0.74 per diluted share. The
improvement largely reflects a first-quarter 2018 $449 million after-tax
favorable adjustment to the estimated loss on the company's previously
announced transaction to sell the majority of its variable and fixed
annuities business. Voya is required to remeasure the estimated fair
value and loss on sale at the end of each quarter until closing.
First quarter 2018 adjusted operating earnings1 were $137
million, or $0.77 per diluted share, after-tax, up from $99 million, or
$0.51 per diluted share, after-tax, in the first quarter of 2017. The
increase was largely driven by higher fee-based margins in Retirement
and Investment Management and a higher underwriting gain in Employee
Benefits. This was partially offset by higher negative DAC/VOBA and
other intangibles unlocking driven by unfavorable mortality experience
on interest-sensitive products in Individual Life and changes in
guaranteed minimum interest rate ("GMIR") provisions for certain
retirement plan contracts. While the adjustments in GMIR provisions
create negative DAC/VOBA and other intangibles unlocking, these changes
reduce the company's interest rate exposure on new deposits and
transfers for certain retirement plan contracts with fixed investment
options.
“We delivered strong results in the first quarter, as demonstrated by
the 51% year-over-year increase in adjusted operating earnings per share
that we achieved,” said Rodney O. Martin, Jr., chairman and CEO, Voya
Financial, Inc. “Our results reflect solid sales performance across our
businesses as we continued to execute on our growth plans for 2018. In
addition, we made strong progress this quarter toward completing our
previously announced transaction to sell the majority of our variable
and fixed annuities business. We remain on schedule to complete the
transaction sometime during the second or third quarter as we continue
to transform to a company that is positioned for accelerated growth,
greater efficiency and better equipped to meet our customers’ needs.
“We concluded the quarter with $548 million in excess capital. In line
with our commitment to effectively use our excess capital to repurchase
shares, we have already begun additional buybacks that will enable us to
deliver on our commitment to repurchase $1 billion in Voya shares by
June 30.
"Looking ahead, we will continue to execute on our priorities for 2018,
including advancing our plans to increase profitable growth in our
high-return businesses, grow adjusted operating earnings per share and
best position Voya to achieve its vision to be America's Retirement
Company,” added Martin.
|
FIRST QUARTER 2018 SUMMARY
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
March 31, 2018
|
|
March 31, 2017
|
|
|
|
($ in millions)
|
|
(per share)
|
|
($ in millions)
|
|
(per share)
|
|
Net income (loss) available to common shareholders
|
|
$446
|
|
$2.50
|
|
$(143)
|
|
$(0.74)
|
|
Adjusted operating earnings, after-tax
|
|
$137
|
|
$0.77
|
|
$99
|
|
$0.51
|
|
Book value
|
|
|
|
$54.65
|
|
|
|
$67.88
|
|
Book value, excluding AOCI 1
|
|
|
|
$45.84
|
|
|
|
$56.76
|
|
Weighted avg common shares outstanding (in millions):
|
|
|
|
|
|
|
|
|
|
Basic
|
|
172
|
|
|
|
192
|
|
|
|
Diluted
|
|
178
|
|
|
|
195
|
|
|
|
_________________________
|
|
1 This press release includes certain non-GAAP
financial measures. More information on these measures and
reconciliations to the most comparable U.S. GAAP measures can be
found in the “Use of Non-GAAP Financial Measures” section of this
release and in the company’s Quarterly Investor Supplement.
|
|
2 Excess capital as of March 31, 2018 of $548 million
is that which is above the company’s holding company liquidity
target of $200 million and estimated statutory surplus in excess
of a 425% combined risk-based capital (RBC) ratio. First-quarter
2018 excess capital and estimated combined RBC ratio assumes no
change to fourth-quarter 2017 levels for the insurance subsidiary
that will be disposed of as part of the sale of the company’s
variable and fixed annuities business.
|
|
|
BUSINESS SEGMENT DISCUSSIONS
The following discussions compare the first quarter of 2018 with the
first quarter of 2017, unless otherwise noted. All figures are presented
before income taxes.
Retirement
Retirement adjusted operating earnings were $109 million compared with
$148 million. First-quarter 2018 results reflect $41 million of negative
DAC/VOBA and other intangibles unlocking primarily due to the previously
mentioned impact of changes in terms related to GMIR provisions, which
reduce the company's interest rate exposure on new deposits and
transfers for certain retirement plan contracts with fixed investment
options. Conversely, the first quarter of 2017 benefited from $13
million of positive DAC/VOBA and other intangibles unlocking.
During the first quarter of 2018, results from certain investment-only
products were moved from Corporate to the Retirement segment.
Key earnings drivers included:
-
Investment spread revenues
-
Prepayment fee and alternative investment income was, in
aggregate, $3 million above long-term expectations (before the
effect of income taxes and DAC).
-
Excluding alternative investment income and prepayment fees,
investment spread revenues declined slightly.
-
Fee-based revenues net of asset-based commissions increased due to
higher average AUM, business growth and the benefit of higher fees
from investment-only products.
-
Expenses increased primarily as a result of the movement of
investment-only products from Corporate to Retirement; separately,
strategic investment spending that was reallocated from Corporate to
Retirement was largely offset by continued expense management in the
business.
Retirement net outflows were $362 million, compared with net outflows of
$476 million in the fourth quarter of 2017 and net inflows of $611
million in the first quarter of 2017. Net flows vary in size and timing,
sometimes substantially, from one quarter to the next.
Retirement AUM was $144 billion, up from $138 billion as of December 31,
2017 largely due to the transfer of investment-only products to
Retirement. Retirement AUM was $126 billion as of March 31, 2017.
Investment Management
Investment Management adjusted operating earnings were $61 million
compared with $49 million.
Key earnings drivers included:
-
Fee-based revenues increased $12 million due to higher fees from
higher average AUM.
-
Investment capital revenues increased $2 million, and were $5 million
higher than long-term expectations (before the effect of income taxes).
-
Expenses increased $2 million primarily due to higher volume expenses
associated with higher revenue.
|
Investment Management Net Flows
|
|
($ in billions)
|
|
1Q 2018
|
|
4Q 2017
|
|
1Q 2017
|
|
Investment Management Sourced
|
|
$
|
0.1
|
|
|
$
|
0.8
|
|
|
$
|
0.6
|
|
|
Affiliate Sourced
|
|
|
(0.5
|
)
|
|
|
(0.5
|
)
|
|
|
(0.3
|
)
|
|
Variable Annuities
|
|
|
(0.7
|
)
|
|
|
(1.4
|
)
|
|
|
(1.4
|
)
|
|
Total
|
|
$
|
(1.2
|
)
|
|
$
|
(1.1
|
)
|
|
$
|
(1.2
|
)
|
|
|
During the first quarter of 2018, Investment Management sourced net
inflows were driven by institutional net flows, including flows from
alternative asset classes.
Third-party sales (which exclude general account assets of Voya
Financial’s insurance company subsidiaries) were $4.7 billion, compared
with $5.1 billion in the fourth quarter of 2017 and $5.0 billion in the
first quarter of 2017. Third-party AUM totaled $141 billion as of March
31, 2018, down from $142 billion as of Dec. 31, 2017, and up from $131
billion as of March 31, 2017.
Employee Benefits
Employee Benefits adjusted operating earnings were $32 million compared
with $11 million. First-quarter 2018 and 2017 results both reflected $1
million of negative DAC/VOBA and other intangibles unlocking.
Key earnings drivers included:
-
Investment spread revenues
-
Prepayment fee and alternative investment income were, in
aggregate, $1 million above long-term expectations.
-
Excluding alternative investment income and prepayment fees,
investment spread revenues were flat.
-
Underwriting results improved primarily due to higher volumes in Group
Life and Voluntary.
-
Expenses were flat as higher volume expenses were offset by continued
expense management.
The loss ratio for Group Life was 79.3%, compared with 83.2% in the
first quarter of 2017. The loss ratio for Stop Loss was 80.2%, compared
with 81.0% in the first quarter of 2017. The company typically expects
an annual loss ratio for Stop Loss and Group Life between 77-80%.
Total Employee Benefits in-force premiums increased slightly. Sales were
$304 million, down from $341 million given the company's focus on
maintaining pricing discipline.
Individual Life
Individual Life adjusted operating earnings were $17 million compared
with $32 million. First-quarter 2018 results reflect $21 million of
higher negative DAC/VOBA and other intangibles unlocking driven by
unfavorable mortality experience on interest-sensitive products.
Key earnings drivers included:
-
Investment spread revenues
-
Prepayment fee and alternative investment income were, in
aggregate, $1 million above long-term expectations.
-
Excluding alternative investment income and prepayment fees,
investment spread revenues increased slightly.
-
Underwriting results (including DAC/VOBA and other intangibles
amortization) were lower as unfavorable mortality due to higher
severity and frequency was partially offset by favorable intangibles
amortization.
-
Expenses were flat as strategic investment spending that was
reallocated from Corporate to Individual Life was more than offset by
continued expense management in the business.
Total Individual Life sales, which primarily consist of indexed life
insurance, were $17 million, down from $25 million. First-quarter 2017
results reflected sales of more capital intensive products, which have
since been discontinued.
Corporate
Corporate adjusted operating losses were $56 million, compared with
losses of $95 million. The improvement was largely due to higher
earnings from legacy annuities, which are those that are not included in
the transaction to sell the majority of the company's variable and fixed
annuities business. First-quarter 2018 results in Corporate also
benefited from the reallocation of strategic investment spending into
the business segments. In addition, results in the first quarter of 2017
were also negatively impacted by a loss in a closed block of business
and implementation expenses in preparation for the Department of Labor
fiduciary rule.
Share Repurchases
In the first quarter of 2018, Voya completed the accelerated share
repurchase (“ASR”) agreement entered into with a third-party during the
fourth quarter of 2017 to repurchase an aggregate of $500 million of
Voya’s common stock. Under this agreement, approximately 10 million
shares of common stock were repurchased. This includes the 8 million
shares that were received by Voya in 4Q 2017 as part of the ASR
agreement.
Voya had $1 billion remaining under its share repurchase authorization
as of March 31, 2018.
Supplementary Financial Information
More detailed financial information can be found in the company’s
Quarterly Investor Supplement, which is available on Voya’s investor
relations website, investors.voya.com.
Earnings Call and Slide Presentation
Voya will host a conference call on Wednesday, May 2, 2018, at 10 a.m.
ET, to discuss the company’s first-quarter 2018 results. The call and
slide presentation can be accessed via the company’s investor relations
website at investors.voya.com.
A replay of the call will be available on the company’s investor
relations website at investors.voya.com
starting at 1 p.m. ET on May 2, 2018.
About Voya Financial
Voya Financial, Inc. (NYSE:VOYA), helps Americans plan, invest and
protect their savings - to get ready to retire better. Serving the
financial needs of approximately 14.7 million individual and
institutional customers in the United States, Voya is a Fortune 500
company that had $8.6 billion in revenue in 2017. The company had $541
billion in total assets under management and administration as of March
31, 2018. With a clear mission to make a secure financial future
possible - one person, one family, one institution at a time - Voya’s
vision is to be America’s Retirement Company®. Certified as a
“Great Place to Work” by the Great Place to Work® Institute,
Voya is equally committed to conducting business in a way that is
socially, environmentally, economically and ethically responsible. Voya
has been recognized as one of the 2018 World’s Most Ethical Companies®
by the Ethisphere Institute, one of the 2018 World’s Most Admired
Companies by Fortune magazine and one of the Top Green Companies
in the U.S. by Newsweek magazine. For more information, visit voya.com.
Follow Voya Financial on Facebook,
LinkedIn
and Twitter @Voya.
Use of Non-GAAP Financial Measures
Adjusted operating earnings before income taxes is a measure used to
evaluate segment performance. We believe that adjusted operating
earnings before income taxes provides a meaningful measure of Voya's
business and segment performances and enhances the understanding of our
financial results by focusing on the operating performance and trends of
the underlying business segments and excluding items that tend to be
highly variable from period to period based on capital market conditions
and/or other factors. We use the same accounting policies and procedures
to measure segment adjusted operating earnings before income taxes as we
do for the directly comparable U.S. GAAP measure Income (loss) from
continuing operations before income taxes.
Adjusted operating earnings before income taxes does not replace Income
(loss) from continuing operations before income taxes as the comparable
U.S. GAAP measure of our consolidated results of operations. Therefore,
we believe that it is useful to evaluate both Income (loss) from
continuing operations before income taxes and Adjusted operating
earnings before income taxes when reviewing our financial and operating
performance. Each segment’s adjusted operating earnings before income
taxes is calculated by adjusting Income (loss) from continuing
operations before income taxes for the following items:
-
Net investment gains (losses), net of related amortization of DAC,
VOBA, sales inducements and unearned revenue, which are significantly
influenced by economic and market conditions, including interest rates
and credit spreads, and are not indicative of normal operations. Net
investment gains (losses) include gains (losses) on the sale of
securities, impairments, changes in the fair value of investments
using the fair value option ("FVO") unrelated to the implied
loan-backed security income recognition for certain mortgage-backed
obligations and changes in the fair value of derivative instruments,
excluding realized gains (losses) associated with swap settlements and
accrued interest;
-
Net guaranteed benefit hedging gains (losses), which are significantly
influenced by economic and market conditions and are not indicative of
normal operations, include changes in the fair value of derivatives
related to guaranteed benefits, net of related reserve increases
(decreases) and net of related amortization of DAC, VOBA and sales
inducements, less the estimated cost of these benefits. The estimated
cost, which is reflected in operating results, reflects the expected
cost of these benefits if markets perform in line with our long-term
expectations and includes the cost of hedging. Other derivative and
reserve changes related to guaranteed benefits are excluded from
operating results, including the impacts related to changes in
nonperformance spread;
-
Income (loss) related to businesses exited through reinsurance or
divestment that do not qualify as discontinued operations, which
includes gains and (losses) associated with transactions to exit
blocks of business (including net investment gains (losses) on
securities sold and expenses directly related to these transactions)
and residual run-off activity; these gains and (losses) are often
related to infrequent events and do not reflect performance of
operating segments. Excluding this activity better reveals trends in
our core business, which would be obscured by including the effects of
business exited, and more closely aligns Adjusted operating earnings
before income taxes with how we manage our segments;
-
Income (loss) attributable to noncontrolling interest, which
represents the interest of shareholders, other than those of Voya
Financial, Inc., in consolidated entities. Income (loss) attributable
to noncontrolling interest represents such shareholders' interests in
the gains and (losses) of those entities, or the attribution of
results from consolidated VIEs or VOEs to which we are not
economically entitled;
-
Income (loss) related to early extinguishment of debt, which includes
losses incurred as a result of transactions where we repurchase
outstanding principal amounts of debt; these losses are excluded from
Adjusted operating earnings before income taxes since the outcome of
decisions to restructure debt are not indicative of normal operations;
-
Impairment of goodwill, value of management contract rights and value
of customer relationships acquired, which includes losses as a result
of impairment analysis; these represent losses related to infrequent
events and do not reflect normal, cash-settled expenses;
-
Immediate recognition of net actuarial gains (losses) related to our
pension and other postretirement benefit obligations and gains
(losses) from plan amendments and curtailments, which includes
actuarial gains and losses as a result of differences between actual
and expected experience on pension plan assets or projected benefit
obligation during a given period. We immediately recognize actuarial
gains and (losses) related to pension and other postretirement benefit
obligations and gains and losses from plan adjustments and
curtailments. These amounts do not reflect normal, cash-settled
expenses and are not indicative of current Operating expense
fundamentals; and
-
Other items not indicative of normal operations or performance of our
segments or may be related to infrequent events including capital or
organizational restructurings including certain costs related to debt
and equity offerings as well as stock and/or cash based deal
contingent awards; expenses associated with the rebranding of Voya
Financial, Inc.; severance and other third-party expenses associated
with the 2016 Restructuring. These items vary widely in timing, scope
and frequency between periods as well as between companies to which we
are compared. Accordingly, we adjust for these items as we believe
that these items distort the ability to make a meaningful evaluation
of the current and future performance of our segments. Additionally,
with respect to restructuring, these costs represent changes in
operations rather than investments in the future capabilities of our
operating businesses.
Adjusted operating earnings before income taxes for Corporate in the
prior period includes Net investment gains (losses) and Net guaranteed
benefit hedging gains (losses) associated with the retained CBVA and
annuities businesses that are not components of discontinued operations.
These retained amounts are insignificant and do not distort the ability
to make a meaningful evaluation of the trends of Corporate activities.
Income (loss) related to businesses exited through reinsurance or
divestment (including net investment gains (losses) on securities sold
and expenses directly related to these transactions) is excluded from
the results of operations from adjusted operating earnings before income
taxes. When we present the adjustments to income (loss) from continuing
operations before income taxes on a consolidated basis, each adjustment
excludes the relative portions attributable to businesses exited through
reinsurance or divestment.
The most directly comparable U.S. GAAP measure to adjusted operating
earnings before income taxes is income (loss) from continuing operations
before income taxes. For a reconciliation of income (loss) from
continuing operations before income taxes to adjusted operating earnings
before income taxes, see the tables that accompany this release, as well
as our Quarterly Investor Supplement.
Adjusted operating earnings - excluding unlocking is also a non-GAAP
financial measure. This measure excludes from adjusted operating
earnings before income taxes the following items:
-
DAC/VOBA and other intangibles unlocking; and
-
The net gains included in adjusted operating earnings from a
distribution of cash and securities in conjunction with a Lehman
Brothers bankruptcy settlement ("Lehman Recovery"), and losses as a
result of the decision to dispose of certain Low Income Housing Tax
Credit partnerships ("LIHTC") as a mean of exiting this asset class.
Because DAC/VOBA and other intangibles unlocking can be volatile,
excluding the effect of this item can improve period to period
comparability. The net gain from the Lehman Recovery and loss from the
disposition of LIHTC partnerships affected run-rate results and we
believe that this effect is not reflective of our ongoing performance.
In addition to net income (loss) per share, we report adjusted operating
earnings per share (diluted) because we believe that adjusted operating
earnings before income taxes provides a meaningful measure of its
business and segment performances and enhances the understanding of our
financial results by focusing on the operating performance and trends of
the underlying business segments and excluding items that tend to be
highly variable from period to period based on capital market conditions
and/or other factors.
In addition to book value per share including accumulated other
comprehensive income (AOCI), we also report book value per share
excluding AOCI and shareholders' equity excluding AOCI. Included in AOCI
are investment portfolio unrealized gains or losses. In the ordinary
course of business we do not plan to sell most investments for the sole
purpose of realizing gains or losses, and book value per share excluding
AOCI and shareholders' equity excluding AOCI provide a measure
consistent with that view. The adjusted debt to capital calculation
excludes AOCI and includes a 25% equity treatment afforded to
subordinated debt.
In our Investment Management business, adjusted operating margin
excluding Investment Capital results is reported because results from
Investment Capital can be volatile and excluding the effect of this item
can improve period-to-period comparability.
For a reconciliation of these non-GAAP measures to the most directly
comparable U.S. GAAP measures, refer to the tables that accompany this
release, as well as our Quarterly Investor Supplement.
We also analyze our segment performance based on the sources of
earnings. We believe this supplemental information is useful in order to
gain a better understanding of our adjusted operating earnings before
income taxes for the following reasons: (1) we analyze our business
using this information and (2) this presentation can be helpful for
investors to understand the main drivers of adjusted operating earnings
(loss) before income taxes. The sources of earnings are defined as such:
-
Investment spread and other investment income consists of net
investment income and net realized investment gains (losses)
associated with swap settlements and accrued interest, less interest
credited to policyholder reserves.
-
Fee based margin consists primarily of fees earned on assets under
management ("AUM"), assets under administration ("AUA"), and
transaction based recordkeeping fees.
-
Net underwriting gain (loss) and other revenue contains the following:
the difference between fees charged for insurance risks and incurred
benefits, including mortality, morbidity, and surrender results,
contractual charges for universal life and annuity contracts, the
change in the unearned revenue reserve for universal life contracts,
and that portion of traditional life insurance premiums intended to
cover expenses and profits. Certain contract charges for universal
life insurance are not recognized in income immediately, but are
deferred as unearned revenues and are amortized into income in a
manner similar to the amortization of DAC.
-
Administrative expenses are general expenses, net of amounts
capitalized as acquisition expenses and exclude commission expenses
and fees on letters of credit.
-
Trail commissions are commissions paid that are not deferred and thus
recorded directly to expense.
-
For a detail explanation of DAC/VOBA and other intangibles
amortization/unlocking see Management’s Discussion and Analysis of
Financial Condition and Results of Operations - Unlocking of DAC/VOBA
and other Contract Owner/Policyholder Intangibles in our Annual Report
on Form 10-K for the twelve-month period ended Dec. 31, 2017, which
the company filed with the Securities and Exchange Commission on Feb.
23, 2018 and in our Quarterly Report on Form 10-Q for the three-month
period ended March 31, 2018, which the company expects to file with
the Securities and Exchange Commission on or before May 10, 2018.
More details on these sources of earnings can be found in Voya
Financial’s Quarterly Investor Supplement, which is available on Voya
Financial’s investor relations website, investors.voya.com.
Forward-Looking and Other Cautionary Statements
This press release contains forward-looking statements. 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) general economic conditions, particularly economic
conditions in our core markets, (ii) performance of financial markets,
including emerging markets, (iii) the frequency and severity of insured
loss events, (iv) mortality and morbidity levels, (v) persistency and
lapse levels, (vi) interest rates, (vii) currency exchange rates, (viii)
general competitive factors, (ix) changes in laws and regulations, such
as those relating to Federal taxation, state insurance regulations and
NAIC regulations and guidelines, including those affecting reserve
requirements for variable annuity policies and the use of and possible
application of NAIC accreditation standards to captive reinsurance
entities, those made pursuant to the Dodd-Frank Wall Street Reform and
Consumer Protection Act, and the U.S. Department of Labor’s final rules
and exemptions pertaining to the fiduciary status of providers of
investment advice, or any amendments thereto, (x) changes in the
policies of governments and/or regulatory authorities, and (xi) our
ability to successfully complete the transaction entered into on Dec.
20, 2017. 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 Results of
Operations and Financial Condition - Trends and Uncertainties” in our
Annual Report on Form 10-K for the year ended Dec. 31, 2017, which the
company filed with the Securities and Exchange Commission on Feb. 23,
2018 and in our Quarterly Report on Form 10-Q for the three-month period
ended March 31, 2018, which the company expects to file with the
Securities and Exchange Commission on or before May 10, 2018.
VOYA-IR
|
Reconciliation of Net Income (Loss) to Adjusted Operating
Earnings - Quarter-to-Date
|
|
|
|
|
|
|
|
Three Months Ended
|
|
(in millions USD)
|
|
3/31/2018
|
|
3/31/2017
|
|
|
|
|
|
|
|
Net Income (loss) available to Voya Financial, Inc.'s common
shareholders
|
|
$
|
446
|
|
|
$
|
(143
|
)
|
|
Less: Net income (loss) attributable to noncontrolling interest
|
|
—
|
|
|
1
|
|
|
Net Income (loss)
|
|
446
|
|
|
(142
|
)
|
|
Less: Income from Discontinued Operations, net of tax
|
|
429
|
|
|
(162
|
)
|
|
Net Income (loss) from continuing operations
|
|
17
|
|
|
20
|
|
|
Less: Adjustments to adjusted operating earnings
|
|
|
|
|
|
Net Investment gains (losses) and related charges and adjustments
|
|
(61
|
)
|
|
(20
|
)
|
|
Other adjustments (2)
|
|
(81
|
)
|
|
(12
|
)
|
|
Total Adjustments to adjusted operating earnings before tax effect
|
|
(142
|
)
|
|
(32
|
)
|
|
Income taxes on adjustments to adjusted operating earnings (1)
|
|
30
|
|
|
11
|
|
|
Total Adjustments to adjusted operating earnings, after tax(1)
|
|
(112
|
)
|
|
(21
|
)
|
|
Less: Difference between actual tax (expense) benefit and assumed
tax rate
|
|
(8
|
)
|
|
(58
|
)
|
|
Adjusted Operating earnings, after-tax (1)
|
|
137
|
|
|
99
|
|
|
Less: Income taxes (1)
|
|
(26
|
)
|
|
(46
|
)
|
|
Adjusted operating earnings before income taxes
|
|
$
|
163
|
|
|
$
|
145
|
|
|
|
|
Reconciliation of Net Income per Share to Adjusted Operating
Earnings per Share
|
|
|
|
|
|
|
|
Three Months Ended
|
|
(in USD per diluted share)
|
|
3/31/2018
|
|
3/31/2017
|
|
|
|
|
|
|
|
Net Income (loss) available to Voya Financial, Inc.'s common
shareholders
|
|
$
|
2.50
|
|
|
$
|
(0.74
|
)
|
|
Less: Net income (loss) attributable to noncontrolling interest
|
|
—
|
|
|
|
|
Less: Income from Discontinued Operations, net of tax
|
|
2.40
|
|
|
(0.83
|
)
|
|
Net Income (loss) from continuing operations
|
|
0.10
|
|
|
0.09
|
|
|
Less: Net Investment gains (losses) and related charges and
adjustments, after-tax
|
|
(0.27
|
)
|
|
(0.07
|
)
|
|
Less: Other adjustments, after-tax (2)
|
|
(0.36
|
)
|
|
(0.05
|
)
|
|
Less: Effect of assumed tax rate vs. actual tax rate
|
|
(0.04
|
)
|
|
(0.30
|
)
|
|
Less: Adjustment due to antidilutive effect of net loss in the
current period
|
|
—
|
|
|
—
|
|
|
Adjusted Operating earnings, after-tax (1)
|
|
$
|
0.77
|
|
|
$
|
0.51
|
|
|
|
|
Reconciliation of Fully Diluted Weighted Average Shares to
Adjusted Operating Diluted Weighted Average Shares
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
3/31/2018
|
|
3/31/2017
|
|
|
|
|
|
|
|
Fully Diluted weighted average shares outstanding
|
|
178
|
|
|
195
|
|
|
Dilutive effect of the exercise or issuance of stock based awards
|
|
—
|
|
|
—
|
|
|
Weighted average common shares outstanding - diluted (adjusted
operating)
|
|
178
|
|
|
195
|
|
|
|
|
(1) Voya Financial assumes a 32% tax rate on adjusted
operating earnings and all components of adjusted operating earnings
described as "after tax" for 2017. For 2018, The Adjusted operating
effective tax rate is based on the actual income tax expense for the
current period related to Income (loss) from continuing operations,
less estimated taxes on non-operating items assuming a 21% corporate
tax rate. A 35% tax rate is applied to all non-operating items in
2017 and 21% in 2018. The 32% tax rate for 2017 adjusted operating
earnings and components reflects the estimated benefit of the
dividend received deduction related to the company's Retirement,
Investment Management, Employee Benefits and Individual Life
segments.
|
|
(2) “Other adjustments” consists of net guaranteed
benefit hedging gains (losses) and related charges and adjustments;
income (loss) from business exited; income (loss) attributable to
non-controlling interests; immediate recognition of net actuarial
gains (losses) related to pension and other post-retirement benefit
obligations and gains (losses) from plan amendments and
curtailments; expenses associated with the rebranding of Voya
Financial from ING U.S.; and restructuring expenses (severance,
lease write-offs, etc.).
|
|
|
|
Reconciliation of Book Value per Share to Book Value per Share
excluding AOCI
|
|
|
|
As of March 31, 2018
|
|
As of March 31, 2017
|
|
Book value per share, including AOCI
|
|
$
|
54.65
|
|
|
$
|
67.88
|
|
|
Per share impact of AOCI
|
|
(8.81
|
)
|
|
(11.12
|
)
|
|
Book value per share, excluding AOCI
|
|
$
|
45.84
|
|
|
$
|
56.76
|
|
|
|
|
Reconciliation of Investment Management Adjusted Operating Margin
to Adjusted Operating Margin Excluding Investment Capital
|
|
|
|
|
|
|
|
Three Months Ended
|
|
(in millions USD, unless otherwise indicated)
|
|
3/31/2018
|
|
12/31/2017
|
|
3/31/2017
|
|
|
|
|
|
|
|
|
|
Adjusted Operating revenues
|
|
$
|
185
|
|
|
$
|
185
|
|
|
$
|
171
|
|
|
Adjusted operating expenses
|
|
(124
|
)
|
|
(125
|
)
|
|
(122
|
)
|
|
Adjusted operating earnings before income taxes
|
|
$
|
61
|
|
|
$
|
60
|
|
|
$
|
49
|
|
|
Adjusted operating margin
|
|
32.9
|
%
|
|
32.3
|
%
|
|
28.8
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted Operating revenues
|
|
$
|
185
|
|
|
$
|
185
|
|
|
$
|
171
|
|
|
Less:
|
|
|
|
|
|
|
|
Investment Capital Results
|
|
11
|
|
|
8
|
|
|
9
|
|
|
Adjusted operating revenues excluding Investment Capital
|
|
174
|
|
|
177
|
|
|
163
|
|
|
Adjusted operating expenses
|
|
(124
|
)
|
|
(125
|
)
|
|
(122
|
)
|
|
Adjusted operating earnings excluding Investment Capital
|
|
$
|
50
|
|
|
$
|
52
|
|
|
$
|
41
|
|
|
Adjusted operating margin excluding Investment Capital
|
|
28.6
|
%
|
|
29.3
|
%
|
|
25.0
|
%
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180501006791/en/
Source: Voya Financial, Inc.