WINDSOR, Conn. - Voya Financial, Inc. (NYSE: NYSE:VOYA) has reached a significant growth milestone, surpassing $100 billion in assets across its multiple employer solutions, the company reported today. This achievement marks a 15% increase in total assets since last year for Voya's Multiple Employer Plans (MEPs), Pooled Employer Plans (PEPs), Employer Aggregation Programs, and other customized solutions.
Ginger Brennan, SVP at Voya Financial, emphasized the company's longstanding commitment to the multiple employer plan space and noted the growth in the pooled employer plan segment as a key differentiator for Voya. The company's expansion in this market is attributed to its diversified offerings across plan sizes, industries, and tax codes.
In response to the growth, Voya has created new positions aimed at supporting sales in this segment, focusing on engaging advisors and plan sponsors, and facilitating the development of new solutions. These roles are integral to Voya's strategy to capture a larger market share and to provide support for retirement plan sponsors and advisors.
Voya's Wealth Solutions business, in particular, has seen a notable increase, with 34% of employer-sponsored Defined Contribution plans participating in a multiple employer plan solution. Additionally, following the SECURE Act 2.0 legislation, Voya became the recordkeeper for the first 403(b) Pooled Employer Plan, expanding retirement plan access for employees of nonprofit organizations and health care entities.
The company's broad spectrum of employer solutions underscores its position as an industry leader focused on delivering benefits, savings, and investment solutions. Voya's mission is to ensure a secure financial future for individuals, families, and institutions.
This growth report is based on Voya's internal data as of June 30, 2024. Voya Financial continues to be recognized for its commitment to ethical business practices, gender equality, disability inclusion, and its overall contribution to a fulfilling life for its clients.
"In other recent news, Voya Financial reported a solid second quarter in 2024, achieving an adjusted operating earnings per share (EPS) of $2.18 and a GAAP net income of $201 million. Despite higher-than-anticipated loss ratios in the Health segment, the company's Wealth and Investment Management segments demonstrated growth, contributing to a robust excess capital position of approximately $200 million. However, Morgan Stanley (NYSE:MS) has downgraded Voya's stock from Overweight to Equalweight, citing concerns about the Health Solutions segment's performance and the integration of Benefitfocus (NASDAQ:BNFT) into Voya's operations. This downgrade follows a fourth consecutive quarter of weaker than expected earnings in the Health Solutions segment, impacted by unfavorable stop-loss underwriting. Morgan Stanley also noted that Voya Financial's full-year loss ratio for Health Solutions is now expected to be worse than previously guided. Despite these challenges, Voya's management plans to address these issues with new pricing strategies and measures, although the effectiveness of these strategies remains uncertain. These recent developments signal a more cautious outlook on Voya Financial's future performance."
InvestingPro Insights
As Voya Financial (NYSE: VOYA) celebrates its milestone in the employer solutions segment, the company's strategic moves appear to be paying off according to the latest metrics from InvestingPro. Voya's aggressive share buyback program is a strong signal of management's confidence in the company's value, aligning with an impressive shareholder yield. With a robust track record of dividend payments over the past 12 years, including six years of consecutive increases, Voya demonstrates a commitment to returning value to shareholders.
InvestingPro data also highlights Voya's solid financial position, with a market capitalization of $6.68 billion and a low P/E ratio of 8.75, suggesting that the company is trading at a reasonable price relative to its near-term earnings growth. Additionally, Voya's revenue growth remains strong, with a 16.95% increase in the last twelve months as of Q2 2024, and its gross profit margin stands at a healthy 54.4%. These figures underscore Voya's operational efficiency and its ability to translate revenue into profit effectively.
For investors looking for more comprehensive analysis and additional InvestingPro Tips, Voya Financial has 9 more tips listed on InvestingPro, ranging from analysts' earnings revisions to predictions about the company's profitability this year. These insights can be accessed at InvestingPro's Voya Financial page, providing a deeper dive into the company's financial health and future prospects.
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