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.