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Voya Financial, Inc. (VOYA - Free Report) reported fourth-quarter 2024 adjusted operating earnings of $1.50 per share, which beat the Zacks Consensus Estimate by more than two-fold. The bottom line decreased 23.8% year over year. The decline was due to higher loss ratios in Stop Loss in Health Solutions and lower spread-based assets in Wealth Solutions. It was partially offset by growth in fee-based revenues in Wealth Solutions and Investment Management and higher alternative investment income.
Adjusted operating revenues amounted to $1.9 billion, which increased 12.5% year over year.
Net investment income decreased 0.2% year over year to $521 million. Meanwhile, fee income of $543 million increased 11% year over year. Premiums totaled $790 million, up 17.4% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 10% from the year-ago quarter.
As of Dec. 31, 2024, VOYA’s assets under management and assets under administration and advisement totaled $893.5 million.
Segmental Update
Wealth Solutions recorded adjusted operating earnings of $210 million, which increased 42.8% year over year. The increase was primarily due to growth in fee-based revenues, higher alternative investment income and disciplined expense management, partially offset by lower spread-based assets.
Full-service recurring deposits grew 10.7% to $3.8 billion, driven by growth in both Corporate and Tax-Exempt markets.
Health Solutions incurred pre-tax adjusted operating loss of $102 million against the year-ago period’s earnings of $44 million. The decline was primarily attributable to higher loss ratios in Stop Loss. Annualized in-force premiums and fees grew 16% to $3.9 billion on growth across all product lines due to strong sales and favorable retention.
Investment Management posted pre-tax adjusted operating earnings, excluding Allianz's noncontrolling interest, of $66 million, which increased 46.7% year over year. The increase was primarily due to higher fee-based revenues benefiting from strong business momentum, positive capital markets and performance fees. It was partially offset by higher variable compensation. Investment Management generated net inflows of $3.4 billion (excluding divested businesses) during the three months ended Dec. 31, 2024, representing organic growth of 1.1% for the reported quarter. Net flows reflect continued growth in the Insurance channel and further positive flows within Retail.
Corporate incurred pre-tax adjusted operating losses, excluding Allianz's noncontrolling interest, of $27 million, narrower than a loss of $34 million incurred in the year-ago quarter.
Financial Update
Voya Financial exited the quarter with cash and cash equivalents of $1.4 billion, which increased 49.3% year over year. Total investments amounted to $35 billion, down 4.3% 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 250 basis points year over year to 30.3%.
As of Dec. 31, 2024, book value per share (excluding AOCI) was $61.31, which increased 5.4% year over year. As of Dec. 31, 2024, Voya Financial had approximately $0.6 billion of excess capital.
Capital Deployment
Voya Financial returned $800 million of excess capital to shareholders in 2024, including through $140 million of share repurchases and $43 million of dividends in the reported quarter. As of Dec. 31, 2024, VOYA had a remaining share repurchase authorization of $761 million.
Full-Year Highlights
Full-year 2024 adjusted operating earnings per share of $7.79 decreased 3% year over year. The bottom line beat the Zacks Consensus Estimate by 17.3%. Adjusted operating revenues jumped 9.7% from the year-ago quarter to $7.5 billion.
Everest Group, Ltd. (EG - Free Report) reported fourth-quarter 2024 operating loss of $18.39 per share, wider than the Zacks Consensus Estimate of a loss of $16.65. EG had reported an operating income of $25.18 per share in the year-ago quarter. Everest Group’s total operating revenues of nearly $4.64 billion increased 26.7% year over year on higher premiums earned and net investment income. The top line beat the consensus mark by 4.4%. Gross written premiums improved 8% year over year to $4.7 billion. Our estimate was $5.1 billion.
Net investment income was $473 million, which increased 15.1% year over year. Our estimate was $419.5 million. The Zacks Consensus Estimate was pegged at $496 million. Pre-tax underwriting loss was $1.4 billion against the year-ago quarter’s pre-tax underwriting income of $245 million. Pre-tax catastrophe losses net of estimated recoveries and reinstatement premiums were $173 million, wider than the loss of $143 million in the year-ago quarter.
RLI Corp. (RLI - Free Report) reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year. The top line matched the Zacks Consensus Estimate. Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million.
Net investment income increased 19% year over year to $38.8 million. The Zacks Consensus Estimate and our estimate for the metric were both pegged at $38.1 million. The investment portfolio’s total return was negative 1.1% in the quarter. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4. The Zacks Consensus Estimate for the metric was pegged at 96, while our estimate was 102.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. Operating revenues came in at $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%.
Net investment income grew 1.3% to $317.4 million. The figure was lower than our estimate of $399.5 million. The Zacks Consensus Estimate was pegged at $342 million. Total expenses increased 8% to $2.9 billion due to higher losses and loss expenses. Our estimate was $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2. The Zacks Consensus Estimate was 91.
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Voya Financial Q4 Earnings Beat, Revenues & Premiums Rise Y/Y
Voya Financial, Inc. (VOYA - Free Report) reported fourth-quarter 2024 adjusted operating earnings of $1.50 per share, which beat the Zacks Consensus Estimate by more than two-fold. The bottom line decreased 23.8% year over year. The decline was due to higher loss ratios in Stop Loss in Health Solutions and lower spread-based assets in Wealth Solutions. It was partially offset by growth in fee-based revenues in Wealth Solutions and Investment Management and higher alternative investment income.
See the Zacks Earnings Calendar to stay ahead of market-making news
Voya Financial, Inc. Price, Consensus and EPS Surprise
Voya Financial, Inc. price-consensus-eps-surprise-chart | Voya Financial, Inc. Quote
Behind the Headlines
Adjusted operating revenues amounted to $1.9 billion, which increased 12.5% year over year.
Net investment income decreased 0.2% year over year to $521 million.
Meanwhile, fee income of $543 million increased 11% year over year. Premiums totaled $790 million, up 17.4% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 10% from the year-ago quarter.
As of Dec. 31, 2024, VOYA’s assets under management and assets under administration and advisement totaled $893.5 million.
Segmental Update
Wealth Solutions recorded adjusted operating earnings of $210 million, which increased 42.8% year over year. The increase was primarily due to growth in fee-based revenues, higher alternative investment income and disciplined expense management, partially offset by lower spread-based assets.
Full-service recurring deposits grew 10.7% to $3.8 billion, driven by growth in both Corporate and Tax-Exempt markets.
Health Solutions incurred pre-tax adjusted operating loss of $102 million against the year-ago period’s earnings of $44 million. The decline was primarily attributable to higher loss ratios in Stop Loss. Annualized in-force premiums and fees grew 16% to $3.9 billion on growth across all product lines due to strong sales and favorable retention.
Investment Management posted pre-tax adjusted operating earnings, excluding Allianz's noncontrolling interest, of $66 million, which increased 46.7% year over year. The increase was primarily due to higher fee-based revenues benefiting from strong business momentum, positive capital markets and performance fees. It was partially offset by higher variable compensation. Investment Management generated net inflows of $3.4 billion (excluding divested businesses) during the three months ended Dec. 31, 2024, representing organic growth of 1.1% for the reported quarter. Net flows reflect continued growth in the Insurance channel and further positive flows within Retail.
Corporate incurred pre-tax adjusted operating losses, excluding Allianz's noncontrolling interest, of $27 million, narrower than a loss of $34 million incurred in the year-ago quarter.
Financial Update
Voya Financial exited the quarter with cash and cash equivalents of $1.4 billion, which increased 49.3% year over year. Total investments amounted to $35 billion, down 4.3% 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 250 basis points year over year to 30.3%.
As of Dec. 31, 2024, book value per share (excluding AOCI) was $61.31, which increased 5.4% year over year. As of Dec. 31, 2024, Voya Financial had approximately $0.6 billion of excess capital.
Capital Deployment
Voya Financial returned $800 million of excess capital to shareholders in 2024, including through $140 million of share repurchases and $43 million of dividends in the reported quarter. As of Dec. 31, 2024, VOYA had a remaining share repurchase authorization of $761 million.
Full-Year Highlights
Full-year 2024 adjusted operating earnings per share of $7.79 decreased 3% year over year. The bottom line beat the Zacks Consensus Estimate by 17.3%.
Adjusted operating revenues jumped 9.7% from the year-ago quarter to $7.5 billion.
Zacks Rank
Voya Financial currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Everest Group, Ltd. (EG - Free Report) reported fourth-quarter 2024 operating loss of $18.39 per share, wider than the Zacks Consensus Estimate of a loss of $16.65. EG had reported an operating income of $25.18 per share in the year-ago quarter. Everest Group’s total operating revenues of nearly $4.64 billion increased 26.7% year over year on higher premiums earned and net investment income. The top line beat the consensus mark by 4.4%. Gross written premiums improved 8% year over year to $4.7 billion. Our estimate was $5.1 billion.
Net investment income was $473 million, which increased 15.1% year over year. Our estimate was $419.5 million. The Zacks Consensus Estimate was pegged at $496 million. Pre-tax underwriting loss was $1.4 billion against the year-ago quarter’s pre-tax underwriting income of $245 million. Pre-tax catastrophe losses net of estimated recoveries and reinstatement premiums were $173 million, wider than the loss of $143 million in the year-ago quarter.
RLI Corp. (RLI - Free Report) reported fourth-quarter 2024 operating earnings of 41 cents per share, which missed the Zacks Consensus Estimate by 14.5%. The bottom line decreased 46.8% from the prior-year quarter. Operating revenues for the reported quarter were $436 million, up 15.3% year over year. The top line matched the Zacks Consensus Estimate. Gross premiums written increased 9% year over year to $473.2 million. This uptick can be attributed to the solid performance of the Casualty segment (up 18.3%). Our estimate was $550 million.
Net investment income increased 19% year over year to $38.8 million. The Zacks Consensus Estimate and our estimate for the metric were both pegged at $38.1 million. The investment portfolio’s total return was negative 1.1% in the quarter. Underwriting income of $22.2 million decreased 62.8% year over year. The combined ratio deteriorated 1,170 bps year over year to 94.4. The Zacks Consensus Estimate for the metric was pegged at 96, while our estimate was 102.
W.R. Berkley Corporation’s (WRB - Free Report) fourth-quarter 2024 operating income of $1.13 per share beat the Zacks Consensus Estimate by 20.2%. The bottom line improved 17.7% year over year. W.R. Berkley’s net premiums written were $2.9 billion, up 8% year over year. The figure was lower than our estimate of $3 billion. Operating revenues came in at $3.5 billion, up 9.2% year over year. The top line beat the consensus estimate by 4.2%.
Net investment income grew 1.3% to $317.4 million. The figure was lower than our estimate of $399.5 million. The Zacks Consensus Estimate was pegged at $342 million. Total expenses increased 8% to $2.9 billion due to higher losses and loss expenses. Our estimate was $3 billion. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 180 bps year over year to 90.2. The Zacks Consensus Estimate was 91.