We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Voya Financial, Inc. (VOYA - Free Report) reported second-quarter 2024 adjusted operating earnings of $2.27 per share, which beat the Zacks Consensus Estimate by 3.6%.
The bottom line, however, decreased 1.7% year over year due to lower net underwriting gains in Health Solutions, partially offset by higher fee-based revenues in Wealth Solutions and Investment Management.
Behind the Headlines
Adjusted operating revenues amounted to $324 million, down 6.6% year over year. The top line missed the Zacks Consensus Estimate by 0.4%.
Voya Financial, Inc. Price, Consensus and EPS Surprise
Net investment income declined 5% year over year to $518 million. Meanwhile, fee income of $517 million increased 9.1% year over year.
Premiums totaled $790 million, up 16.7% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 9.3% from the year-ago quarter.
As of Jun 30, 2024, VOYA’s assets under management, assets under administration and advisement totaled $861.3 billion.
Segmental Update
Wealth Solutions reported pre-tax adjusted operating earnings of $214 million, which jumped 23% year over year, driven by fee-based revenue growth aided by both equity market appreciation and stable fee margins, as well as lower administrative expenses.
Total client assets as of Jun 30, 2024, were $581 billion, up 12% year over year, primarily due to higher equity market levels.
Health Solutions’ pre-tax adjusted operating earnings amounted to $60 million, which plunged 51.6% year over year, primarily due to lower stop loss net underwriting gains in the current period.
Annualized in-force premiums and fees grew 16% to $3.9 billion. The strong increase reflects growth across all product lines due to solid sales and favorable retention.
Investment Management posted pre-tax adjusted operating earnings of $50 million, flat year over year. Higher net revenues due to positive capital markets and strong 2024 business momentum were offset by higher administrative expenses, a portion of which was not recurring.
Net inflows were $4.8 billion, organically up 16% year over year, driven by Institutional US and Insurance channel flows and continued positive flows within Retail.
Corporate incurred a pre-tax adjusted operating loss, excluding Allianz's noncontrolling interest, of $53 million, flat year over year.
Financial Update
Voya Financial exited the quarter with cash and cash equivalents of $1.1 billion, which jumped 13.8% year over year. Total investments amounted to $35.2 billion, down 3.7% year over year.
Long-term debt as of Jun 30, 2024 was $395 million, up from $1 million at 2023 end. The financial leverage ratio (excluding accumulated other comprehensive income) deteriorated 20 basis points year over year to 28%.
As of Jun 30, 2024, book value per share (excluding AOCI) was $59.33, which increased 4.5% from 2013 end.
Voya Financial exited the second quarter with more than $0.2 billion in excess capital.
Capital Deployment
The company returned $0.2 billion of capital in second-quarter 2024, including $174 million in share repurchases and $40 million in common stock dividends.
The board approved a 12.5% hike in its quarterly dividend to 45 cents.
The Travelers Companies (TRV - Free Report) reported second-quarter 2024 core income of $2.51 per share, which beat the Zacks Consensus Estimate by 25.5%. The bottom line skyrocketed from 6 cents earned in the year-ago quarter, driven by solid underlying results, net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. Travelers’ total revenues increased 12.4% from the year-ago quarter to $11.3 billion, primarily driven by higher premiums. The top-line figure, however, missed the Zacks Consensus Estimate by 1%.
The Progressive Corporation’s (PGR - Free Report) second-quarter 2024 earnings per share of $2.65 beat the Zacks Consensus Estimate of $1.99. The bottom line improved more than five times year over year. Operating revenues of $18.3 billion beat the Zacks Consensus Estimate by 1.4% and increased 18.9% year over year.
Progressive’s net premiums earned grew 19% to $17.2 billion and beat our estimate of $16.7 billion. Combined ratio improved 850 bps from the prior-year quarter’s level to 91.9.
Selective Insurance Group, Inc. (SIGI - Free Report) reported second-quarter 2024 operating loss of $1.10 per share against the Zacks Consensus Estimate of earnings of $1.56. The company had reported an operating income of 99 cents per share in the prior year quarter. The quarterly results reflected poor underwriting performance, unfavorable prior-year casualty reserve development and escalating costs, offset by higher premiums and net investment income.
Selective Insurance’s total revenues of $1.2 billion increased 15% from the year-ago quarter’s figure, primarily due to higher premiums earned, net investment income and net premiums written. The top line missed the Zacks Consensus Estimate by 1.3%.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Voya Financial (VOYA) Q2 Earnings Beat, Dividend Raised
Voya Financial, Inc. (VOYA - Free Report) reported second-quarter 2024 adjusted operating earnings of $2.27 per share, which beat the Zacks Consensus Estimate by 3.6%.
The bottom line, however, decreased 1.7% year over year due to lower net underwriting gains in Health Solutions, partially offset by higher fee-based revenues in Wealth Solutions and Investment Management.
Behind the Headlines
Adjusted operating revenues amounted to $324 million, down 6.6% year over year. The top line missed the Zacks Consensus Estimate by 0.4%.
Voya Financial, Inc. Price, Consensus and EPS Surprise
Voya Financial, Inc. price-consensus-eps-surprise-chart | Voya Financial, Inc. Quote
Net investment income declined 5% year over year to $518 million. Meanwhile, fee income of $517 million increased 9.1% year over year.
Premiums totaled $790 million, up 16.7% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 9.3% from the year-ago quarter.
As of Jun 30, 2024, VOYA’s assets under management, assets under administration and advisement totaled $861.3 billion.
Segmental Update
Wealth Solutions reported pre-tax adjusted operating earnings of $214 million, which jumped 23% year over year, driven by fee-based revenue growth aided by both equity market appreciation and stable fee margins, as well as lower administrative expenses.
Total client assets as of Jun 30, 2024, were $581 billion, up 12% year over year, primarily due to higher equity market levels.
Health Solutions’ pre-tax adjusted operating earnings amounted to $60 million, which plunged 51.6% year over year, primarily due to lower stop loss net underwriting gains in the current period.
Annualized in-force premiums and fees grew 16% to $3.9 billion. The strong increase reflects growth across all product lines due to solid sales and favorable retention.
Investment Management posted pre-tax adjusted operating earnings of $50 million, flat year over year. Higher net revenues due to positive capital markets and strong 2024 business momentum were offset by higher administrative expenses, a portion of which was not recurring.
Net inflows were $4.8 billion, organically up 16% year over year, driven by Institutional US and Insurance channel flows and continued positive flows within Retail.
Corporate incurred a pre-tax adjusted operating loss, excluding Allianz's noncontrolling interest, of $53 million, flat year over year.
Financial Update
Voya Financial exited the quarter with cash and cash equivalents of $1.1 billion, which jumped 13.8% year over year. Total investments amounted to $35.2 billion, down 3.7% year over year.
Long-term debt as of Jun 30, 2024 was $395 million, up from $1 million at 2023 end. The financial leverage ratio (excluding accumulated other comprehensive income) deteriorated 20 basis points year over year to 28%.
As of Jun 30, 2024, book value per share (excluding AOCI) was $59.33, which increased 4.5% from 2013 end.
Voya Financial exited the second quarter with more than $0.2 billion in excess capital.
Capital Deployment
The company returned $0.2 billion of capital in second-quarter 2024, including $174 million in share repurchases and $40 million in common stock dividends.
The board approved a 12.5% hike in its quarterly dividend to 45 cents.
Zacks Rank
Voya Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies (TRV - Free Report) reported second-quarter 2024 core income of $2.51 per share, which beat the Zacks Consensus Estimate by 25.5%. The bottom line skyrocketed from 6 cents earned in the year-ago quarter, driven by solid underlying results, net favorable prior year reserve development and higher net investment income, partially offset by higher catastrophe losses. Travelers’ total revenues increased 12.4% from the year-ago quarter to $11.3 billion, primarily driven by higher premiums. The top-line figure, however, missed the Zacks Consensus Estimate by 1%.
The Progressive Corporation’s (PGR - Free Report) second-quarter 2024 earnings per share of $2.65 beat the Zacks Consensus Estimate of $1.99. The bottom line improved more than five times year over year. Operating revenues of $18.3 billion beat the Zacks Consensus Estimate by 1.4% and increased 18.9% year over year.
Progressive’s net premiums earned grew 19% to $17.2 billion and beat our estimate of $16.7 billion. Combined ratio improved 850 bps from the prior-year quarter’s level to 91.9.
Selective Insurance Group, Inc. (SIGI - Free Report) reported second-quarter 2024 operating loss of $1.10 per share against the Zacks Consensus Estimate of earnings of $1.56. The company had reported an operating income of 99 cents per share in the prior year quarter. The quarterly results reflected poor underwriting performance, unfavorable prior-year casualty reserve development and escalating costs, offset by higher premiums and net investment income.
Selective Insurance’s total revenues of $1.2 billion increased 15% from the year-ago quarter’s figure, primarily due to higher premiums earned, net investment income and net premiums written. The top line missed the Zacks Consensus Estimate by 1.3%.