Voya Financial, Inc. (VOYA Quick QuoteVOYA - Free Report) reported third-quarter 2024 adjusted operating earnings of $2.12 per share, which beat the Zacks Consensus Estimate by about 4.8%. The bottom line increased 2.4% year over year.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Behind the Headlines

Adjusted operating revenues amounted to $1.97 billion, which increased 7.6% year over year. The increase was driven by higher fee income, premiums and other revenues.

Net investment income decreased 7.5% year over year to $506 million.
Meanwhile, fee income of $489 million increased 10.4% year over year. Premiums totaled $796 million, up 16.7% from the year-ago quarter.

Total benefits and expenses were $1.8 billion, up 11.4% from the year-ago quarter.

As of Sept. 30, 2024, VOYA’s assets under management, assets under administration and advisement totaled $391.6 million.

Segmental Update

Wealth Solutions recorded adjusted operating earnings of $211 million, which rose 17.8% year over year. The increase was primarily due to growth in fee-based revenues. Full-service recurring deposits grew 10.5% to $3.9 billion, driven by growth in Corporate and Tax-Exempt markets.

Health Solutions adjusted operating earnings amounted to $23 million, which declined 56.6% year over year. Annualized in-force premiums and fees grew 16% to $3.9 billion. The increase reflects growth across all product lines due to strong sales and favorable retention. 

Investment Management posted adjusted operating earnings, excluding Allianz's noncontrolling interest, of $55 million, which increased 12.2% year over year. The increase was primarily due to higher fee-based revenues benefiting from positive capital markets and strong business momentum. Net inflows were $3.8 billion during the three months ended Sept. 30, 2024, generating organic growth of 1.3%. This reflects further growth from Insurance channel clients and continued positive flows within Retail.

Corporate incurred pre-tax adjusted operating losses, excluding Allianz's noncontrolling interest, were $59 million, wider than $52 million loss incurred in the year-ago quarter. The losses reflect the impact of the preferred stock dividend reset in the prior year.

Financial Update

Voya Financial exited the quarter with cash and cash equivalents of $1.4 billion, which surged 75.7% year over year. Total investments amounted to $36 billion, down 0.4% year over year.

Long-term debt at quarter-end was $2.1 billion, up 0.2% from 2023-end. The financial leverage ratio, excluding AOCI, deteriorated 280 basis points year over year to 30.6%. As of June 30, 2023, book value per share (excluding AOCI) was $60.96, which increased 5.9% year over year.

As of Sept. 30, 2024, Voya Financial had approximately $0.4 billion of excess capital.

Capital Deployment

Voya Financial returned $0.2 billion of excess capital in third-quarter 2024 through $149 million of share repurchases and $44 million of common stock dividends.

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

Reinsurance Group of America, Incorporated (RGA Quick QuoteRGA - Free Report) reported third-quarter 2024 adjusted operating earnings of $6.13 per share, which beat the Zacks Consensus Estimate by 19%. Moreover, the bottom line increased 10% from the year-ago quarter’s figure. Net foreign currency fluctuations had a favorable effect of 2 cents per share on adjusted operating income. 

RGA's operating revenues of $5.7 billion beat the Zacks Consensus Estimate by 13.8%. The top line also improved 8.5% year over year due to higher net premiums. Net premiums of $4.4 billion rose 3.2% year over year. Investment income increased 28.8% from the prior-year quarter to $1.2 billion. The average investment yield increased to 5.08% in the third quarter from 4.72% in the prior-year period due to higher new money rates. Total benefits and expenses at Reinsurance Group increased 14% year over year to $5.4 billion.

Chubb Limited (CB Quick QuoteCB - Free Report) reported third-quarter 2024 core operating income of $5.72 per share, which outpaced the Zacks Consensus Estimate by 16%. The bottom line increased 15.6% year over year. Net premiums written improved 5.5% year over year to $13.8 billion in the quarter. Our estimate and the Zacks Consensus Estimate were both pegged at $14.3 billion. Pre-tax net investment income was $1.5 billion, up 14.7% year over year. The figure matched both the Zacks Consensus Estimate as well as our estimate.

Revenues of $15 billion missed the consensus estimate by 1.5% and improved 6.5% year over year. Property and casualty (P&C) underwriting income was $1.4 billion, up 11.7% year over year. The Zacks Consensus Estimate was pegged at $1.1 billion. Chubb incurred a pre-tax P&C catastrophe loss, net of reinsurance and including reinstatement premiums of $765 million, which was wider than the year-ago catastrophe loss of $670 million. 

Kinsale Capital Group (KNSL Quick QuoteKNSL - Free Report) delivered third-quarter 2024 net operating earnings of $4.20 per share, which outpaced the Zacks Consensus Estimate by 13.5%. The bottom line increased 26.9% year over year. Operating revenues jumped 33.1% year over year to $418 million. The growth can primarily be attributed to a rise in premiums, fee income, higher net investment income and other income. Revenues beat the consensus estimate by 4.2%.

Gross written premiums of $448.6 million rose 18.8% year over year. Our estimate was $475.1 million. Net written premiums climbed 18.9% year over year to $349.9 million in the quarter. Our estimate was pegged at $370.2 million. Net investment income increased 46.4% year over year to $39.6 million in the quarter and beat our estimate of $38.6 million. The Zacks Consensus Estimate was pegged at $37.7 million.