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VOYA Q2 Earnings Beat Estimates on Strong Net Investment Income
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Key Takeaways
{\"0\":\"VOYA reported Q2 adjusted operating earnings of $2.4 per share, up 5.7% year over year.\",\"1\":\"Adjusted operating revenues were $356 million, up 9.8% and beating estimates by 19.38%.\",\"2\":\"Total client assets reached $757 billion as of June 30, 2025, up 30% from the prior year.\"}
Voya Financial, Inc. (VOYA - Free Report) reported second-quarter 2025 adjusted operating earnings of $2.4 per share, which beat the Zacks Consensus Estimate by 14.8%. The bottom line increased 5.7% year over year.
The results reflected accretion from business from OneAmerica, positive capital markets and net inflows across the business, partially offset by higher expenses in Employee Benefits due to strategic investments in Short-Term Disability and Leave Management.
Behind the Headlines
Adjusted operating revenues amounted to $356 million, up 9.8% year over year. The top line beat the Zacks Consensus Estimate by 19.4%.
Voya Financial, Inc. Price, Consensus and EPS Surprise
Net investment income increased 12.7% year over year to $584 million. Moreover, fee income of $577 million increased 11.7% year over year.
Premiums totaled $718 million, down 9.1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 2.1% from the year-ago quarter.
As of June 30, 2025, VOYA’s total client assets were $757 billion, up 30% year over year, primarily due to assets onboarded from OneAmerica, positive capital markets and significant recordkeeping wins.
Segmental Update
Retirement reported pre-tax adjusted operating earnings of $235 million, which increased 9.8% year over year, primarily due to the acquired business from OneAmerica.
Total client assets as of June 30, 2025, were $757 billion, up 30% year over year, primarily due to assets onboarded from OneAmerica, positive capital markets, and significant recordkeeping wins.
Employee Benefits pre-tax adjusted operating earnings amounted to $69 million, which increased 15% year over year. This increase was primarily due to positive claim development in stop loss and favorable Group Life underwriting gains, which were partially offset by lower Voluntary underwriting gains and strategic investments in Short-Term Disability and Leave Management. Annualized in-force premiums and fees declined 6% year over year to $3.6 billion.
Investment Management posted pre-tax adjusted operating earnings of $51 million, up 2% year over year. Growth in fee-based revenues was driven by strong business momentum and positive capital markets year over year, offset by lower investment capital results.
Investment Management generated net inflows of $1.8 billion (excluding divested businesses), representing organic growth of 2.5% for the quarter. The increase reflects continued momentum in the Institutional, Insurance and Intermediary channels.
Corporate incurred a pre-tax adjusted operating loss, excluding Allianz's noncontrolling interest, of $67 million, up 26.4% year over year.
Financial Update
Voya Financial exited the quarter with cash and cash equivalents of $1.2 billion, which jumped 10.6% year over year. Total investments amounted to $37.5 billion, up 6.7% year over year.
Long-term debt at the quarter-end was $1.6 billion, down 21.2% from the end of 2024. The financial leverage ratio, excluding AOCI, improved 60 basis points year over year to 27.4%.
As of June 30, 2025, book value per share (excluding AOCI) was $63.18, which increased 4% year over year.
Voya Financial exited the second quarter with more than $0.2 billion in excess capital.
Capital Deployment
The company returned $44 million to shareholders through common stock dividends.
Prudential Financial, Inc. (PRU - Free Report) reported second-quarter 2025 adjusted operating income of $3.58 per share, which beat the Zacks Consensus Estimate by 11.5%. The bottom line rose 5.6% year over year. Total revenues of $13.5 billion beat the Zacks Consensus Estimate by 0.2% but declined 2.4% year over year. The decrease in revenues was due to lower premiums. Total benefits and expenses amounted to $11.8 billion, which declined 3.6% year over year in the second quarter. This decrease was due to lower insurance and annuity benefits. The figure was lower than our estimate of $12 billion.
Radian Group Inc. (RDN - Free Report) reported second-quarter 2025 adjusted operating income of 1.01 per share, which beat the Zacks Consensus Estimate by 8.6%. The bottom remained flat year over year. Operating revenues remained flat year over year at $312 million and missed the Zacks Consensus Estimate by 1.5%. Net premiums earned were $237.5 million, down 0.1% year over year. Net investment income decreased 1.4% year over year to $72.7 million. MI new insurance written increased 2.9% year over year to $14.3 billion. Primary mortgage insurance in force increased 1.4% year over year to record $276.7 billion.
Everest Group, Ltd.’s (EG - Free Report) second-quarter 2025 operating income of $17.36 per share beat the Zacks Consensus Estimate by 14.7%. The bottom line increased 3% year over year. Everest Group’s total operating revenues of $4.5 billion increased 6.3% year over year on higher premiums earned and net investment income. The top line beat the consensus mark by 2%. Gross written premiums deteriorated 0.7% year over year to $4.7 billion due to a decline of 3.3% in Insurance, partially offset by 1.6% growth in Reinsurance. Our estimate was $5 billion.
Net investment income was $532 million, which increased 0.7% year over year. The upside was driven by a larger asset base as well as strong core fixed income and alternative investment returns. Our estimate was $475.6 million. The Zacks Consensus Estimate was pegged at $495 million.
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VOYA Q2 Earnings Beat Estimates on Strong Net Investment Income
Key Takeaways
Voya Financial, Inc. (VOYA - Free Report) reported second-quarter 2025 adjusted operating earnings of $2.4 per share, which beat the Zacks Consensus Estimate by 14.8%. The bottom line increased 5.7% year over year.
The results reflected accretion from business from OneAmerica, positive capital markets and net inflows across the business, partially offset by higher expenses in Employee Benefits due to strategic investments in Short-Term Disability and Leave Management.
Behind the Headlines
Adjusted operating revenues amounted to $356 million, up 9.8% year over year. The top line beat the Zacks Consensus Estimate by 19.4%.
Voya Financial, Inc. Price, Consensus and EPS Surprise
Voya Financial, Inc. price-consensus-eps-surprise-chart | Voya Financial, Inc. Quote
Net investment income increased 12.7% year over year to $584 million. Moreover, fee income of $577 million increased 11.7% year over year.
Premiums totaled $718 million, down 9.1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 2.1% from the year-ago quarter.
As of June 30, 2025, VOYA’s total client assets were $757 billion, up 30% year over year, primarily due to assets onboarded from OneAmerica, positive capital markets and significant recordkeeping wins.
Segmental Update
Retirement reported pre-tax adjusted operating earnings of $235 million, which increased 9.8% year over year, primarily due to the acquired business from OneAmerica.
Total client assets as of June 30, 2025, were $757 billion, up 30% year over year, primarily due to assets onboarded from OneAmerica, positive capital markets, and significant recordkeeping wins.
Employee Benefits pre-tax adjusted operating earnings amounted to $69 million, which increased 15% year over year. This increase was primarily due to positive claim development in stop loss and favorable Group Life underwriting gains, which were partially offset by lower Voluntary underwriting gains and strategic investments in Short-Term Disability and Leave Management. Annualized in-force premiums and fees declined 6% year over year to $3.6 billion.
Investment Management posted pre-tax adjusted operating earnings of $51 million, up 2% year over year. Growth in fee-based revenues was driven by strong business momentum and positive capital markets year over year, offset by lower investment capital results.
Investment Management generated net inflows of $1.8 billion (excluding divested businesses), representing organic growth of 2.5% for the quarter. The increase reflects continued momentum in the Institutional, Insurance and Intermediary channels.
Corporate incurred a pre-tax adjusted operating loss, excluding Allianz's noncontrolling interest, of $67 million, up 26.4% year over year.
Financial Update
Voya Financial exited the quarter with cash and cash equivalents of $1.2 billion, which jumped 10.6% year over year. Total investments amounted to $37.5 billion, up 6.7% year over year.
Long-term debt at the quarter-end was $1.6 billion, down 21.2% from the end of 2024. The financial leverage ratio, excluding AOCI, improved 60 basis points year over year to 27.4%.
As of June 30, 2025, book value per share (excluding AOCI) was $63.18, which increased 4% year over year.
Voya Financial exited the second quarter with more than $0.2 billion in excess capital.
Capital Deployment
The company returned $44 million to shareholders through 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
Prudential Financial, Inc. (PRU - Free Report) reported second-quarter 2025 adjusted operating income of $3.58 per share, which beat the Zacks Consensus Estimate by 11.5%. The bottom line rose 5.6% year over year. Total revenues of $13.5 billion beat the Zacks Consensus Estimate by 0.2% but declined 2.4% year over year. The decrease in revenues was due to lower premiums. Total benefits and expenses amounted to $11.8 billion, which declined 3.6% year over year in the second quarter. This decrease was due to lower insurance and annuity benefits. The figure was lower than our estimate of $12 billion.
Radian Group Inc. (RDN - Free Report) reported second-quarter 2025 adjusted operating income of 1.01 per share, which beat the Zacks Consensus Estimate by 8.6%. The bottom remained flat year over year. Operating revenues remained flat year over year at $312 million and missed the Zacks Consensus Estimate by 1.5%. Net premiums earned were $237.5 million, down 0.1% year over year. Net investment income decreased 1.4% year over year to $72.7 million. MI new insurance written increased 2.9% year over year to $14.3 billion. Primary mortgage insurance in force increased 1.4% year over year to record $276.7 billion.
Everest Group, Ltd.’s (EG - Free Report) second-quarter 2025 operating income of $17.36 per share beat the Zacks Consensus Estimate by 14.7%. The bottom line increased 3% year over year. Everest Group’s total operating revenues of $4.5 billion increased 6.3% year over year on higher premiums earned and net investment income. The top line beat the consensus mark by 2%. Gross written premiums deteriorated 0.7% year over year to $4.7 billion due to a decline of 3.3% in Insurance, partially offset by 1.6% growth in Reinsurance. Our estimate was $5 billion.
Net investment income was $532 million, which increased 0.7% year over year. The upside was driven by a larger asset base as well as strong core fixed income and alternative investment returns. Our estimate was $475.6 million. The Zacks Consensus Estimate was pegged at $495 million.