We are prioritizing higher margins over premium growth for the 2025 book. We are executing on substantial rate increases across both renewals and new business.
— Heather Lavallee
03Detailed Report
VOYA-PB
Company VOYA-PB
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 15, 2026
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Executive Summary
Voya Financial delivered a mixed Q3 2024, with solid top-line momentum and margin expansion in Wealth Solutions and Investment Management, offset by adverse Stop Loss results in Health Solutions. GAAP net income of $114 million and earnings per share (EPS) of $1.00 (diluted $0.98) contrast with an adjusted operating earnings per share (EPS) of $1.90 for the quarter, reflecting the company’s ongoing efforts to rebalance the portfolio and improve profitability. Management highlighted almost 20% year-over-year growth in Wealth Solutions earnings and >10% growth in Investment Management earnings, underscoring the strength of the core retention and asset-gathering franchises.
The quarter was characterized by two major strategic priorities: (1) aggressive Stop Loss margin restoration, including significant rate actions for renewals and new business to return the Stop Loss block to target margins; and (2) the integration of OneAmerica’s full-service retirement business, which is on track to close on January 1. Management projects at least $75 million of pretax operating earnings plus over $200 million of net revenue in the first year from OneAmerica, signaling meaningful scale benefits to Voya’s retirement platform. The company reaffirmed its capital return commitment, targeting $800 million in excess capital to shareholders in 2024 and signaling a stronger capital-generation trajectory in 2025.
Looking ahead, management framed a three-part path to 2025: (i) Stop Loss repricing to materially improve net underwriting results; (ii) successful completion and integration of OneAmerica; and (iii) continued profitable growth in Wealth Solutions and Investment Management to sustain above-target margins. While the Stop Loss block remains a near-term headwind, the combination of higher-margin pricing, OneAmerica synergies, and ongoing organic growth supports an improving earnings trajectory and enhanced capital flexibility into 2025.
Key Performance Indicators
Revenue
Increasing
1.96B
QoQ: -3.79% | YoY: 7.30%
Gross Profit
Increasing
1.96B
1.00% margin
QoQ: -1.76% | YoY: 7.30%
Operating Income
Decreasing
-168.00M
QoQ: -160.87% | YoY: -115.19%
Net Income
Decreasing
114.00M
QoQ: -44.39% | YoY: -56.49%
EPS
Decreasing
1.00
QoQ: -50.00% | YoY: -57.45%
Revenue Trend
Margin Analysis
Financial Highlights
Quarterly revenue: $1.956 billion (Q3 2024) versus prior-year period growth of 7.3% YoY and a QoQ decline of 3.8%.
- Gross profit: $1.956 billion (gross margin effectively 100% in reported line items).
- Operating income: $(168) million, operating margin −8.59%.
- Total other income/expenses: $284 million (net favorable item supporting income before tax).
- Income before tax: $116 million; income tax expense $18 million; net income $114 million (net margin 5.83%).
- EPS (basic/diluted): $1.00 / $0.98 (GAAP), with adjusted operating EPS of $1.90 for the quarter.
- Weighted shares outstanding: ~116.33 million; diluted ~100.40 million.
- Cash flow: operating cash flow $719 million; net cash provided by operating activities $719 million; free cash flow $719 million; cash at period-end $1.545 billion.
- Balance sheet (selected): Total assets $166.9B; total liabilities $160.4B; total stockholders’ equity $4.72B; net debt $1.04B; leverage 28% pro forma after recent debt issuance; liquidity generation remains robust with Fitch upgrade noted in Q3.
- Cash/asset generation: Q3 total capital return $193 million; stock repurchases $149 million; 2024 full-year capital return target of $800 million reaffirmed.
- Segment highlights: Wealth Solutions adjusted operating earnings $211 million (up 18% YoY); Investment Management adjusted operating earnings $55 million; Health Solutions adjusted operating earnings $23 million (impacted by Stop Loss margin pressure).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.96B
7.30%
-3.79%
Gross Profit
1.96B
7.30%
-1.76%
Operating Income
-168.00M
-115.19%
-160.87%
Net Income
114.00M
-56.49%
-44.39%
EPS
1.00
-57.45%
-50.00%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Excellent
60.40%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Fair
5.83%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.07%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.42%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.47
Current ratio below safe levels, potential liquidity risk
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