Voya Financial Reports 7.3% Revenue Growth, Net Income Decline in Q3 2024

Voya Financial, Inc. reported significant financial developments in its quarterly filing for the period ending September 30, 2024. The company achieved total revenues of $1,956 million for the third quarter, marking a 7.3% increase from $1,823 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues rose to $6,040 million, up from $5,529 million year-over-year.

The increase in revenue was driven by a rise in fee income, which reached $540 million in Q3 2024, compared to $489 million in Q3 2023. Premiums also saw a notable increase, climbing to $796 million from $682 million in the prior year. However, policyholder benefits surged to $681 million, up from $471 million, contributing to a rise in total benefits and expenses to $1,840 million from $1,651 million.

Despite the revenue growth, Voya's net income available to common shareholders for Q3 2024 fell to $98 million, down from $248 million in Q3 2023. This decline was attributed to increased operating expenses, which rose to $775 million from $717 million, driven by growth investments and severance costs. The net income per common share decreased to $1.00 from $2.35 in the same quarter last year.

For the nine-month period, net income available to common shareholders increased to $533 million from $471 million, with basic earnings per share rising to $5.32 from $4.62. The company reported total assets of $166,933 million as of September 30, 2024, up from $157,085 million at the end of 2023, while total liabilities increased to $160,351 million from $151,032 million.

Strategically, Voya Financial has been active in acquisitions, including the purchase of Benefitfocus, Inc. for $595 million in January 2023, and VFI SLK Global Services Private Limited for approximately $53 million in August 2023. Additionally, the company announced an agreement to acquire OneAmerica Financial's retirement plan business for approximately $50 million in cash, with contingent consideration of up to $160 million, expected to close on January 1, 2025.

The company also reported a significant increase in cash and cash equivalents, which rose to $1,457 million from $937 million at the end of 2023. Voya's total shareholders' equity increased to $6,384 million from $5,878 million, reflecting a strong capital position despite the challenges faced in the current fiscal period.