-
Adjusted operating earnings per share (EPS) growth of at least 10%
annually through 2021, on a normalized1 basis, to be driven
by organic growth, cost savings and capital deployment
-
Organic growth: Voya’s core
businesses — Retirement, Investment Management and Employee
Benefits — to drive high quality and sustainable earnings;
expected total free cash flow conversion of 85% to 95%
-
Cost savings: Voya is targeting an
additional $100 million of run-rate savings, incremental to
expense savings previously announced, expected by the end of 2020
-
Capital deployment: Continued share
repurchases planned; Voya’s common stock dividend expected to
increase to achieve at least a 1% dividend yield by mid-2019
-
Adjusted operating earnings per share growth to be achieved while
maintaining strong returns and generating an enterprise operating
return on equity of 13% to 15%2
-
Management to Discuss Growth Plans and Financial Targets at Investor
Day
NEW YORK--(BUSINESS WIRE)--
Voya Financial, Inc. (NYSE: VOYA), announced today its plans to achieve
an adjusted operating earnings per share (EPS) annual growth rate of at
least 10% (on a normalized basis) through 2021. The company expects to
achieve its plan through a combination of organic business growth, cost
savings and share repurchases. Senior management will discuss further
details about Voya’s growth strategy at the company’s 2018 investor day
meeting beginning at approximately 1 p.m. ET today.
“With our competitive advantages and renewed focus on our chosen
businesses, Voya Financial is poised to achieve significant earnings per
share growth of at least 10% annually over the next three years,” said
Rodney O. Martin, Jr., chairman and chief executive officer of Voya
Financial, Inc. “Importantly, we believe that we can generate this level
of adjusted operating EPS improvement while also achieving an operating
return on equity of between 13% and 15%.”
Organic Growth
“The foundation of our plans starts with our higher-growth,
higher-return, capital-light Retirement, Investment Management and
Employee Benefits businesses. With our established positions in the
workplace and with institutions, we will continue to expand our
offerings to existing clients, while also attracting new customers. In
addition to executing on growth plans that are specific to each
business, we will continue to leverage opportunities to deliver
holistic, comprehensive solutions across our businesses. With our
significant reach and strong brand awareness, we are well positioned to
help our customers achieve their goals with confidence,” Martin added.
On a normalized basis, Voya expects its Retirement business to grow
earnings by 4% to 7%; Investment Management to grow earnings by 5% to
8%; and Employee Benefits to grow earnings between 7% and 10%, in each
case annually through 2021. Voya will also continue to benefit from
earnings in its Individual Life segment, which Voya recently announced
will cease new business sales effective Dec. 31, 2018.
“Voya has a favorable profile and diverse businesses that are expected
to generate high-quality and sustainable earnings as well as significant
free cash flow. Specifically, we expect total free cash flow conversion
of 85% to 95%, which includes the benefit of improved free cash flow
from our Individual Life segment,” said Martin.
Cost Savings
“Over the past several years, we have demonstrated our ability to
execute and become more efficient as we’ve narrowed our focus and
simplified our company. We have also leveraged our Continuous
Improvement program to achieve efficiencies and advance operational
excellence. At the same time, we have invested in our company, ensuring
that we are well positioned to grow.
“Based on our track record, we believe that we can achieve an additional
$100 million of cost savings by the end of 2020 — this is in addition to
our previously shared target of $110 to $130 million of cost savings by
the middle of 2019 and the $20 million of expected savings from our
recent decision to cease sales of individual life insurance,” added
Martin.
Capital Deployment
“We will continue to be good stewards of shareholder capital and build
upon the nearly $5 billion in excess capital that we have returned to
shareholders via stock buybacks. With an expected strong free cash flow
that will support excess capital generation, our capital deployment
plans will continue to emphasize share repurchases.
“In addition to share repurchases, we also intend to increase our common
stock dividend to a dividend yield of at least 1% by mid-2019. The board
of directors will determine the appropriate level of dividend as we
continue to execute on share repurchases at these attractive valuation
levels. As we advance our plans next year and beyond, we may further
grow the dividend to deliver even greater shareholder value as well as
attract new investors seeking a higher-yielding dividend,” said Martin.
“We are excited about our plans and are committed to building upon our
financial, operational and cultural improvements over the past few years
as we focus on achieving our vision to be America’s Retirement Company,”
concluded Martin.
Webcast and Slide Presentation
Voya Financial will host an audio and video webcast of its 2018 investor
day beginning at approximately 1 p.m. ET today. The webcast, which will
include a slide presentation, will be available live via the internet
and can be accessed at investors.voya.com.
Participants should join the webcast at least 15 minutes prior to the
start of the event to download and install any necessary software. A
replay of the webcast will be available at investors.voya.com
starting at approximately 10 a.m. ET on Wednesday, Nov. 14, 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 14.3 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 $543
billion in total assets under management and administration as of
September 30, 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; as a
member of the Bloomberg Gender Equality Index; and as a “Best Place to
Work for Disability Inclusion” on the Disability Equality Index by
Disability:IN. For more information, visit voya.com.
Follow Voya Financial on Facebook,
LinkedIn
and Twitter @Voya.
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 manage the separation of the fixed and variable
annuities business that Voya sold to VA Capital LLC on June 1, 2018,
including the transition services, on the expected timeline and economic
terms. 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 Sept. 30, 2018, which the company filed with the Securities and
Exchange Commission on Nov. 1, 2018.
VOYA-IR
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1 When presented on a “normalized” basis, amounts are
adjusted to exclude (i) unlocking of deferred acquisition costs,
value of business acquired, and other intangibles, (ii) prepayments
and alternatives income to the extent such income is above or below
our long-term expectations, and (iii) in the case of 2018 financial
results against which Adjusted EPS growth targets are measured,
investment management adjusted operating earnings associated with
the fixed and variable annuities business that Voya sold to VA
Capital LLC on June 1, 2018.
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2 Operating return on equity excludes deferred tax assets
(including AMT receivables) and accumulated other comprehensive
income but includes all other sources of shareholders’ equity under
GAAP. In distinction to the definition of adjusted operating return
on equity used by the company from 2013 – 2017, this measure
includes the operating results of all company segments, including
its Corporate segment.
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View source version on businesswire.com:
https://www.businesswire.com/news/home/20181113005998/en/
Voya Financial, Inc.
Media:
Christopher Breslin,
212-309-8941
christopher.breslin@voya.com
Investors:
Michael
Katz, 212-309-8999
IR@voya.com
Source: Voya Financial, Inc.