Voya Financial (VOYA) Second Quarter Profits and Revenue Surpass Estimates
Voya Financial, Inc.VOYA’s second quarter 2021 net operating income of $ 2.20 per share was 56% above Zacks’ consensus estimate. In addition, the bottom line has doubled year over year.
Results benefited from higher investment income, lower expenses and strong performance in each of its core businesses.
Revenue of $ 424 million was 58.2% higher than Zacks’ consensus estimate. In addition, revenue more than quadrupled from the level in the quarter a year ago.
Net investment income increased 11.9% to $ 656 million in the quarter.
Fee income was down 6% year-over-year to $ 435 million.
Premiums are down 14.9% year over year to $ 516 million.
Total benefits and expenses fell 13.8% year-over-year to $ 1.5 billion due to lower interest credited and other benefits to policy owners and policyholders. fonts.
Assets under management and administration stood at $ 721 billion as of June 30, 2021.
Voya Financial, Inc. Price, Consensus and BPA Surprise
Voya Financial, Inc. price-consensus-eps-surprise-chart | Quote from Voya Financial, Inc.
Wealth Solutions’ adjusted operating income of $ 295 million increased almost eightfold year over year due to $ 201 million increase in investment income of $ 67 million increase in fee margin, favorable change of $ 10 million in deferred acquisition costs and acquired business value (DAC / VOBA), $ 4 million in lower administrative costs and unlocking other intangible assets.
Investment Management posted adjusted operating income of $ 66 million, which more than tripled year-over-year due to $ 48 million in higher investment capital income and $ 15 million in Expanded fee margin dollars, partially offset by lower revenue due to lower company revenue on Jan. 4. , the sale in 2021 of its individual life insurance and other estate annuities business as well as $ 18 million in higher administrative costs.
It generated $ 440 million in institutional net flows in the second quarter, which plunged 94% year-on-year.
Health Solutions adjusted operating income was $ 63 million, up 75% year over year on $ 17 million of higher underwriting results and $ 25 million in revenue investment, partially offset by $ 10 million in higher administrative expenses.
Corporate incurred adjusted operating losses of $ 71 million, lower than the quarterly loss of $ 75 million last year. The results indicate Q2 2021 revenue from the Company’s transition service agreements and lower stranded costs associated with the individual life insurance transaction as well as a decrease in amortization of intangibles. These were partially offset by increased incentive compensation due to higher alternative investment income.
As of June 30, 2021, cash and cash equivalents were $ 1.8 billion, up 59% year-over-year.
As of June 30, 2021, total investments stood at $ 45.9 billion, down 17.2% year-over-year.
At the end of the second quarter, long-term debt stood at $ 2.9 billion, down 2.5% from the end-2020 level.
The leverage ratio increased by 200 basis points to 30.2% from the end of 2020 level.
As at June 30, 2021, the book value per share (excluding accumulated other comprehensive income) was $ 46.90, up 26.6% from the end of 2020 level.
Voya Financial ended the second quarter with $ 1.5 billion in excess capital.
Share buyback and dividend update
In the second quarter of 2021, Voya Financial repurchased shares for $ 518 million. The company has $ 332 million remaining under its existing stock buyback program as of June 30, 2021.
It approved a quarterly dividend of 165 cents per share to be paid on September 29, 2021 to its shareholders of record as of August 26.
Voya Financial currently wears a Zacks Rank # 3 (Hold). You can see The full list of today’s Zacks # 1 Rank (Strong Buy) stocks here.
Performance of other insurers
Among insurance industry players who have released second quarter results so far, earnings from Prudential Financial, Inc. PRU, MGIC investment company MTG and American financial group AFG beat the respective Zacks consensus estimate.
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