Voya Financial helps to steer the financial voyages of many Americans. It offers retirement, investment, and insurance (mostly life) services to 13 million individual and corporate customers. Retirement products include 401(k)s, IRAs, brokerage accounts, and annuities. Its investment management division offers international and domestic equity, fixed-income, and multi-asset products. Insurance covers individual, term, and universal life, as well as employee benefits (stop loss, group life, disability), which it sells to midsized and large companies. Launched in the US in 1975 as a subsidiary of Netherlands-based ING Groep N.V., it spun off and went public in 2013.
Change in Company Type
ING U.S. used its 2013 IPO proceeds to pay down debt in conjunction with ING's recapitalization plan. The public offering was part of
Voya Financial operates five reportable segments: Retirement, Individual Life, Employee Benefits, Annuities, and Investment Management. It also has two other buckets into which it classifies financial results: Corporate and Close Block Variable Annuity, which it is winding down.
The Retirement segment generates about 30% of total revenue. It provides tax-deferred, employer-sponsored retirement savings plans and administrative services (for example, a 401(k) plan), stable value products such as CDs and money market accounts, individual retirement accounts ("IRAs"), and comprehensive financial services to individual customers.
The Individual Life segment (about 25% of revenue) provides wealth protection and transfer opportunities through universal and variable life products. The Employee Benefits segment (15% of revenue) provides stop loss, group life, voluntary employee-paid and disability products. Annuities (12% of revenue) primarily provides fixed and indexed annuities, tax-qualified mutual fund custodial products and other investment-only products and payout annuities for pre-retirement wealth accumulation and postretirement income management.
The Investment Management segment provides investment products and retirement solutions across a broad range of geographies, market sectors, investment styles and capitalization spectrums.
The company has $485 billion in assets under management or administration; the majority of them are held in the Retirement and Investment Management segments.
Voya Financial is a holding company and performs much of its activities via a series of subsidiaries, which include Voya Retirement Insurance and Annuity, ReliaStar Life Insurance, Security Life of Denver Insurance Company, Roaring River II, Inc.
New York, NY-headquartered Voya Financial has offices in Atlanta, Georgia; Braintree, Massachusetts; Des Moines, Iowa; Jacksonville, Florida; Minneapolis, Minnesota; New York City; Scottsdale, Arizona; West Chester, Pennsylvania; and Windsor, Connecticut. It owns or leases nearly 70 locations throughout the US.
Sales and Marketing
Voya is systematic about its market definitions. It addresses two primary markets: Individuals and Institutions. It refines the Individuals market into Mass Market (investible assets less than $100,000), Middle Market & Mass Affluent (investible assets under $2 million), and Affluent & Wealth Management (investible assets greater than $2 million). In the Institutions market is targets Small-Mid (assets up to $75 million), Large (assets between $75 million and $1 billion), and Mega (assets greater than $1 billion)
Voya targets its products and services to a wide range of customers, including retirement plan sponsors, retirement plan participants, institutional investment clients, retail investors, corporations or professional groups offering employee benefits solutions, insurance policyholders, annuity contract holders, and holders of Individual Retirement Accounts ("IRAs"). Industries that it typically pursues include small to medium sized businesses, education institutions (K-12 and college/university), healthcare and other non-profit organizations, state and local government entities, large corporations, and mass market consumers.
Although Voya’s revenue generation in recent years has been steady, its net income performance has been erratic, spiking to $2.3 billion in 2014 before falling precipitously to a more than $400 million loss in 2016. In the same period, revenue generally stayed in a range between $9.5 billion and $11.0 billion
Revenue in 2016 fell 4% to $10.8 billion, compared to prior year. Revenue grew in the Retirement and Employee Benefits segments and remained mostly steady in the other segments. The company’s CBVA activities focus on protecting regulatory and rating agency capital (to manage overall corporate risk) and its revenue fluctuates from year to year; it fell nearly $300 million in 2016.
Net income continued its plummet, dropping in 2016 to a $428 million loss, compared to a $408 million profit in 2015 and a $2.3 billion profit in 2014. The fall was due primarily to two events: an annual review of its actuarial assumptions, which marked down the value of many of its holdings (life insurance, annuities, etc.) and a large loss with its CBVA activities. The negative effects were marginally mitigated with a tax loss carryforward.
Cash on hand at the end of 2016 was $2.9 billion, about $400 million more than at the end of 2015. Operating activities, despite the net income loss, contributed $3.6 billion to the cash coffers mainly from adjustments made for future policy benefits and net realized capital losses. Investing activities used $3.6 billion to acquire a variety of financial instruments (bonds, mortgage loans, etc.). Inflows of new investor deposits helped Financing activities contribute $400 million to cash.
Voya’s strategy is straightforward, focusing on tighter customer relationships, improved customer experiences, and better operational efficiencies.
With closer customer relationships, Voya believes it can cross sell and upsell existing clients with new, or supplemental, services. For example, through sales and marketing efforts it encourages greater employee participation in the 401(k) and IRA plans that it administers. In mid-2017 Voya merged its Annuities and Life Insurance businesses, in part to aid cross-selling of products, though also to simplify internal operations and attain cost savings.
Whether the customer is a large corporation, a university endowment, or an individual consumer, Voya wants to be sure the customer’s experience with its services, products, and advisors is seamless, helpful, and efficient. Through its Connect2 initiatives is provides a unified customer view of Voya accounts across the company, financial wellness guidance, improved login experience, and customer-friendly communication through text and video.
In 2016 the company began implementing a series of initiatives to simplify operations and improve corporate flexibility. Voya incurred about $34 million in restructuring charges in 2016. The end goal is to reduce annual expenses by at least $100 million starting in 2018. Part of this effort was the merger of the Annuities and Life Insurance businesses.
230 PARK AVE
New York, NY 10169-1502
Phone: 1 (212) 309-8200
Employer Type: Publicly Owned
Stock Symbol: VOYA
Stock Exchange: , NYSE
COO: Alain M. Karaoglan
Chairman and CEO: Rodney O. Martin
EVP Technology, Innovation, and Operations: Margaret M. Parent
Employees (This Location): 1,200
Employees (All Locations): 6,000
New York, NY
Boca Raton, FL
Coral Springs, FL
Fort Lauderdale, FL
Safety Harbor, FL
Saint Paul, MN
Saint Charles, MO
North Chesterfield, VA