Voya Financial Investor Presentation May 2021
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Voya Financial Investor Presentation May 2021
Forward-Looking and Other Cautionary Statements
This presentation and the remarks made orally contain forward-looking statements. The company does not assume any obligation to
revise or update these statements to reflect new information, subsequent events or changes in strategy. Forward-looking statements
include statements relating to future developments in our business or expectations for our future financial performance and any
statement not involving a historical fact. Forward-looking statements use words such as “anticipate,” “believe,” “estimate,” “expect,”
“intend,” “plan,” and other words and terms of similar meaning in connection with a discussion of future operating or financial
performance. Actual results, performance or events may differ materially from those projected in any forward-looking statement due to,
among other things, (i) general economic conditions, particularly economic conditions in our core markets, (ii) performance of financial
markets, (iii) the frequency and severity of insured loss events, (iv) the effects of natural or man-made disasters, including pandemic
events and specifically the current COVID-19 pandemic event, (v) mortality and morbidity levels, (vi) persistency and lapse levels, (vii)
interest rates, (viii) currency exchange rates, (ix) general competitive factors, (x) changes in laws and regulations, such as those relating
to Federal taxation, state insurance regulations and NAIC regulations and guidelines, (xi) changes in the policies of governments and/or
regulatory authorities, and (xii) our ability to successfully manage the separation of our individual life and legacy variable annuities
businesses on the expected timeline and economic terms. Factors that may cause actual results to differ from those in any forward-
looking statement also include those described under “Risk Factors” and “Management’s Discussion and Analysis of Results of
Operations and Financial Condition (“MD&A”) – Trends and Uncertainties” in our Annual Report on Form 10-K for the year ended
December 31, 2020, as filed with the Securities and Exchange Commission (“SEC”) on March 1, 2021 and in our Quarterly Report on
Form 10-Q for the three months ended March 31, 2021, to be filed with the SEC on or before May 10, 2021.
This presentation and the remarks made orally contain certain non-GAAP financial measures. Non-GAAP measures include Adjusted
Operating Earnings, Adjusted Operating Return on Capital, Adjusted Operating Margin, and Adjusted debt-to-capital ratio. Information
regarding these and other non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial
measures, is provided in our quarterly earnings press releases and in our quarterly investor supplements, all of which are available at
the Investor Relations section of Voya Financial’s website at investors.voya.com.
2Compelling Investment Story
Cost Savings and Deferred
High Quality Mix of Strong Pro Forma Tax Assets are Key Sources
Businesses Capital Position of Value
■ Significant earnings driven by 3 ■ $1.6 billion of excess capital1 ■ Estimated $1.05 billion of deferred
complementary high-free cash tax assets on an NPV basis at year-
flow generating, high-return, ■ Estimated combined RBC ratio1 of end 2020
capital-light businesses 603% as of 1Q’21, above 400%
target
■ Top 5 Retirement provider ■ Minimal to no cash taxes for the
■ Free cash flow above 90% next 5 – 8 years
■ Full-service asset manager with
unique capabilities in specialized ■ Quarterly common stock dividend
asset classes of $0.165 with annual yield of >1% ■ Achieved $250 million of run-rate
savings in 2Q’20 with further
■ Focused Employee Benefits savings expected
■ Completed Individual Life
provider across 2,100 active transaction resulting in $1.4 billion
employers with leading market of deployable capital
positions in solutions offered
■ Expect over $300 million of
deployable capital upon closing
announced sale of our independent
financial planning channel, on track
to close by 3Q’21
1. 1Q’21 Analyst Presentation.
3Complementary Businesses with Presence in Multiple
Markets Positioning Voya for Growth
High Quality Business Mix
1Q’21 TTM Adjusted Operating Earnings
by Segment ($ million)1
■ Market Cap2: $7.7 billion
Health ■ AUM / AUA3: $729 billion
Solutions
Wealth ■ High-FCF generating, high-return, capital-
19% Solutions light businesses:
– Top 5 Retirement franchise with strong
market share
$964
million – $249 billion in Investment Management
22% 60% AUM
Investment – “Must quote” Employee Benefits Stop
Management Loss provider
■ Customers4: ~15 million
1. Pre-tax. Excludes adjusted operating earnings attributable to Corporate and all unlocking of DAC/VOBA and other intangibles. Adjusted operating earnings excluding unlocking of DAC/VOBA
and other intangibles is a non-GAAP financial measure. Information regarding this non-GAAP financial measure, and a reconciliation to most comparable U.S. GAAP measure, is provided in the
“Reconciliations” section of the Quarterly Investor Supplement.
2. As of March 31, 2021.
3. As of March 31, 2021.
4. Approximate as of March 31, 2021.
4Emphasis on ESG and Leading ESG Practices
Governance Social Environmental
Robust, independent Aligned social purpose Encouraging
oversight aligning and empowering sustainable practices
business with individuals at home and the
shareholder interests workplace
• Board Gender parity • Socially responsible • Green supply chain
with 55% of investment solutions, procurement initiative
independent ESG integration, ESG
members female and proxy voting and ESG • Voya IM voted in
66% of Board Leadership favor of 74% of
Committees chaired environmental proxy
by women • Investing in proposals in 2019
communities and
• 28% of Executive diversity inclusion • Developed an ESG
Committee is female initiatives with Voya Risk Policy approved
Cares by Board of Directors
• ESG Board to align investment
Executive Committee Committee • Driving superior and business
Led Firmwide retirement outcomes partnerships to
ESG Council through holistic Corporate Values
• Robust ownership
financial wellness
and incentives
alignment for
management
5Our Competitive Advantages Align with Significant Market
Opportunities
Key Competitive Advantages Significant Market Opportunity
Of American Households with
Focused Distribution Size and 50% Defined Contribution Plan
Underprepared for Retirement1
Business Relationships Scale
Portfolio
$8 trillion Total Defined
Contribution Market2
Active Investment
Brand and Operating Embed Management
Culture Efficiency Technology
$4 trillion Portion of Defined
Contribution
Opportunity3
300% Growth in Voluntary Premiums
Over Last 3 Years4
1. Center for Retirement Research, Net Retirement Risk Index (2018).
2. Cerulli Associates.
3. McKinsey & Company.
4. Industry defined as including critical illness, accident and hospital indemnity; In-force premiums; Year-End Worksite In-force Report, LIMRA 2014 – 2017 (latest available).
6Industry Leading Provider of Wealth Solutions Across a
Large and Diverse Customer Base
Scale Provider in the DC Market:
Healthcare
Education
■ #1 in Government2
■ #4 in Plans3
Retail Wealth
Large / Mega
Corporate
■ #5 in Participants3
Management
■ #6 in Total Assets3
■ Over 51,000 DC Plans4
$540Bn
Stable Value ■ Over 6.2Mn Participant Accounts4
& Other6 AUM/AUA1
Sizeable Retail Business Providing
Small / Mid
Corporate Wealth Management, Advisory, and IRA:
Government
■ Over 1,400 Advisors4
■ Top 20 ranked Independent Broker
Dealer5
1. As of March 31, 2021. See 1Q’21 Investor Supplement for more details on assets.
2. LIMRA 4Q20 Not-for-Profit Sales and Assets Survey of 18 reporting companies; ranking based on AUM as of December 31, 2020.
3. Rankings based on Pensions and Investments DC Recordkeeper Survey of participating companies self-reported data as of September 30, 2020, published April 2021.
4. Voya data as of March 31, 2021.
5. Investment News Independent Broker Dealer Listing of 133 independent broker dealers, published March 2020 (latest available) with rankings based on total assets (Rank #15), number of
producing representatives (Rank #15), and on total revenue (Rank #16).
6. IncludesInvestment Management has a Diverse Asset Base
Delivering Specialty and Retirement Capabilities
Diversified Asset Base Broad Range of Clients1,2
($ billion) ($ billion)
12 10 2019 39 ■ Strength in hard to replicate
24 specialized asset classes
25
49
21 25
$249B 122 $249B 52 52 ■ Retirement-oriented investing that
aligns with asset / liability
25
management solution expertise
60
6464
Public Fixed Income Voya General Account ■ Efficient, scalable infrastructure,
Public Equity Retirement Providers2 and top-tier client service
Private Fixed Income Domestic Institutions practices
Bank Loans Retail Intermediaries
Commercial Real Estate Third-Party Insurers
Private Equity International Institutions
1. As of March 31, 2021, AUM by asset base and client may not sum to total AUM due to rounding.
2. Total Retirement Providers AUM of $52 billion differs from Retirement and Wealth Management Assets as disclosed in the Investor Supplement as it excludes Retail Wealth Management AUM of
$25 billion (captured through Retail Intermediaries) and General Account AUM of $32 billion.
8Focused Health Benefits Provider with Proven Success in
Mid-to-Large Market
1Q’21 Annualized In-Force Premium
($ million)
■ 6.2 million lives covered across 2,100
active employers
Voluntary Group
$553 Life &
Disability ■ Focused Health Benefits provider:
$730
- #7 largest Stop Loss provider2
$2.5B in - Top 10 and fast growing Voluntary
provider3
premiums
- Maintaining market share in Group Life
with average employer of 1,000 lives4
Stop
Loss
■ Growing share of premium with top
$1,182 intermediaries
1. As of March 31, 2021. See 1Q’21 Investor Supplement.
2. Overall. #3 non-integrated third party stop-loss carrier (NAIC insurer financial statement filing).
3. Ranked within top 10 in Accidents, Critical Illness, and Hospital Indemnity categories; LIMRA’s U.S. Worksite/Voluntary In Force 2017 Annual Report.
4. Market average of 228 lives, GenRe (2017).
9Robust Capital Position with Strong Free Cash Flow
Generation
Capital Returned to Shareholders Excess Capital
($ millions) ($ billions)1
$1,131 $1,140
$1,031
$8
$6 $44 Paused repurchases in
2Q’20 to be prudent
during COVID-19.
Resumed repurchases in
4Q’20.
$1.6
$602
Projected Free Cash Flow
$1,125 $1,096 $76
$1,023 Conversion
$255
$526 $20
2017 2018 2019 2020
$235
YTD
90%+
Buyback Dividends
Estimated Combined Adjusted
$7.0B Total Capital Returned Since IPO 603% RBC Ratio2 32.4% Financial Leverage Ratio3
1. Estimated statutory Total Adjusted Capital in excess of 400% RBC level, net of any outstanding loans ($155 million as of March 31, 2021); and Holding Co. Working Capital Above $200 million Target. Holding company
liquidity includes cash, cash equivalents, and short term investments; holding company is defined as Voya Financial Inc. and Voya Holdings Inc. 1Q’21 holding company liquidity includes loans to noninsurance subsidiaries
considered short term investments net of pro forma adjustments related to timing of tax sharing payments. Excludes expected proceeds from our Independent Financial Planning Channel sale, on track to close by 3Q’21.
2. Estimated combined adjusted RBC ratio primarily for our principal U.S. insurance subsidiaries and adjusted for an intercompany loan of $155 million as of March 31, 2021.
3. Financial leverage ratio eliminates equity credit for hybrids and preferreds and includes AOCI and non-controlling interest; See page 14 of the first quarter investor supplement for further details.
10Strong Free Cash Flow Conversion at Higher End of 85% - 95% from our
Core Businesses
Projected Free Cash Flow Conversion by Segment
Wealth 75 – 85%
Investment Management 90 – 100%
Health 75 – 85%
Corporate / Tax Asset Utilization Benefit 0 – 5%
Total Free Cash Flow Conversion 85 – 95%
1. Capital deployment as a percentage of GAAP Net Income Available to Common Shareholders.
11Appendix
12Guidance 2021
Target Metrics 2021 Guidance1
4Q’21 YoY
Voya Normalized Adjusted Operating EPS Growth2 8 – 12% growth
expected to
be 12 – 18%
Full Service Recurring Deposits Growth, TTM 6 – 8%
Wealth
Pre-tax Normalized Adjusted Operating Earnings Growth2 8 – 12%
AUM Organic Growth Rate3 2 – 4%
Investment Pre-tax Normalized Adjusted Operating Earnings Growth (ex
8 – 12%
Management performance fees)2,4
Operating Margin5 27 – 30%
Annualized In-Force Premium Growth 7 – 10%
Health Pre-tax Normalized Adjusted Operating Earnings Growth2 1 – 4%
Total Aggregate Loss Ratio, TTM 70 – 73%
Assumptions:
1. Current forecast as of 12/31/2020. • 300k Covid deaths, weighted toward 1H’21
2. Updated guidance on Normalized EPS reflects impacts of previously announced sale of independent financial • 8% Equity market total return
planning channel, COVID impacts on repurchases (average shares), timing of Life close, and interest rates. EPS • Interest rates follow forward curve1
Growth is off of a base that includes performance fees in VIM and is inclusive of net stranded costs in 2021 not
included in 2020 earnings. Annual Sensitivities:
3. AUM Organic Growth represents Net Flows as a % of Beginning Period Commercial AUM (excludes General
• $1mm to $2mm in claims per 10k Covid deaths
Account and Market Appreciation).
4. Investment Management Pre-tax Normalized Adjusted Operating Earnings Growth, including (net) performance • $4 mm to $5mm pre-tax impact for every 1% change in S&P vs. assumption
fees of $32mm in 2020, is expected to be flat in 2021. • $(10)mm to $(20)mm pre-tax impact from a 100bps decline in rates
5. Operating Margin including Investment Capital • $20mm to $30mm pre-tax impact from a 100bps increase in rates
13Our Journey So Far to be America’s Retirement Company
Voya IPO Delivered on Improved De-Risked
Focus on Long-Term Growth
May 2, 2013 Performance | 2013 - 2015 2015 - 2017
Voya’s IPO was the second Voya’s stock continues to Voya executes a highly strategic Voya is focused on its
best performing IPO in 2013 perform well above peers and transformative transaction high FCF generating, high
delivering value to shareholders return, capital light businesses
Announces landmark Puts Individual Life
transaction to divest business into runoff
Stock trades up
+56% in the first 4 Achieves full year Adj. ROE of CBVA block
months of trading 12.1%, marking early achievement
on 2016 target of 12-13% 2019 2019
2018
2018
2017
2015-2017
Establishes long-
term ROE walk to 2015
systematically
improve returns 2014 2014 Proactive approach
to cost management
with continuous
Efficient expense focus on reducing
2013 management results operating expenses
in increasing FCF Transformative initiative to invest
conversion to ~70% $350mm in technology to
consolidate IT platforms, migrate Announces
2013 Continue to invest in
to cloud environment, and digitize sale of
Recognized as improving digital
processes Individual Life
one of the World’s capabilities and a business
Most Ethical scalable platform
Companies
Voya has achieved #1 brand
association with Retirement in U.S.
14Voya’s Strategic Priorities Enabling Future Growth
Wealth Health Investment Management
Leverage Scale, Brand and Expand share in faster Leverage and deepen
Culture to drive growth growing Stop Loss & distribution and external
across all Markets Voluntary benefits markets intermediary relationships
Expand and deepen Disciplined pricing and Expand specialty
distribution relationships service excellence to drive capabilities and offerings
strong growth and returns
Expand use of robotics, AI Grow customized
and automation to drive Grow voluntary solution set investment solutions
enhanced customer to engage consumers more
experience and efficiency broadly
15Reliable Long-Term Investment Performance Critical to
Future Success
% AUM Above Benchmark or Peer Median1
98
94 95
85
81 83
72
65 65
40
19 19
Equity Multi-Asset Fixed Voya IM
Income Total
3 Year 5 Year 10 Year
1. Voya Investment Management calculations as of March 31, 2021. Metrics presented are based on a prescribed criteria to measure each asset class based on its respective success in either, A) ranking above the median
of its peer category; or B) outperforming its benchmark on a gross-of-fee basis. Metrics are calculated on an annualized basis and inclusive of fully-actively managed mutual funds, collective investment trusts, and
separately-managed institutional mandates included in traditional (long-only) third-party accounts remaining open as of March 31, 2021. Above median metrics represent a mix of net-of-fee rankings from Morningstar and
gross-of-fee rankings from eVestment. Past performance is not a guarantee or reliable indicator of future results. All investments involve risk including the possible loss of capital.
16Well-Diversified Investment Portfolio Built for Through-The-
Cycle Risk Adjusted Returns
$39 Billion
General Account Investment Portfolio1
Munis LP/Equity
2% 4% Short
Term/Treasury
2% 6%
Public CML 43%
Corporate 14%
31%
52%
Securitized
25%
2
Private Fixed Maturity Ratings
Credit
21%
NAIC 1 NAIC 2 BIG
Improved Investment Allocation
Private Credit and CML allocations benefit from structural features that provide downside protection
1. GA Portfolio represents statutory carrying value weights for Voya’s operating insurance companies (RLI, RNY, and VRIAC).
2. Fixed maturity includes Public Corporate, EMD, Private Credit, Munis, Securitized Non-Agency, and Securitized Agency.
17Spotlight: Commercial Mortgage Loans
Key Message: ~$5.6 billion allocation1 with weighted average debt service coverage ratio (DSCR) of 2.2x and
weighted average loan-to-value (LTV) ratio of 46%2. Retail focus on need driven properties, such as grocery
anchored. No material exposure to real estate equity outside of home office.
Diversified Portfolio Exposure
$6,000M
Mixed Use, 1%
Manufactured Housing Hotel, 2%
$5,000M Community, 3% Other, 1%
$4,000M
Self Storage,
$3,000M 8%
~60% of this exposure (~$3bn) Multifamily, 27%
$2,000M has LTV 0% - 50% and DSCR >1.5X
Office, 16%
$1,000M
$0M
LTV 0% -
LTV >60% Retail, 23%
60%
95% 93%
Industrial/Warehouse,
DSCR < 1.25X $536 72%
$45
19%
DSCR > 1.25X $4,801 $230 55% 59%
CML Portfolio 87.0% 12.1%
1.0%
CM 1 CM 2 CM 3 and below
1. Represents U.S. GAAP value weight for Voya’s operating insurance companies.
2. LTV based on current loan balance and MAI appraised value at funding.
18Spotlight: Collateralized Loan Obligations
Key Message: ~$1.3 billion allocation1,2 with significant Credit Enhancement (CE)3 to mitigate the risk of par
losses. 96% rated NAIC 1 with all NAIC 2 and below holdings in Voya-issued transactions.
Generic CLO Structure4
• Collateral losses are
allocated in reverse
order of capital
structure seniority Total
NAIC NRSRO USG BV (mln) CE BV%
• AAA rated tranches
AAA
would not be AAA $229 36 18%
allocated losses until
rated collateral pool losses
1 AA $323 25 26%
tranche reached 37% 3 A $669 18 53%
63%
NAIC 1
• Structural protections
2 BBB $12 11 1%
include collateral 3 BB $6 7 0%
tests which can
trigger the redirection 4 B $11 4 1%
of cash flow from 5 Equity $14 0 1%
subordinated
AA 12% tranches to the $1,265 22 100%
95% 93%
72% senior-most class
A 6% outstanding
55% 59%
NAIC 2
BBB 6%
• Underlying CLO
BB 5%
NAIC 3, collateral portfolios
NR Equity 8% are actively managed
1. Represents U.S. GAAP value weight for Voya’s operating insurance companies.
2. As of 3/31/21 there are $161M USG BV of additional CLO investments, including warehouse facilities, in Voya managed deals held outside of the GA by Voya Investment Management.
3. CE = Credit Enhancement or the amount of loss that can absorbed by the structure before impacting the owned tranche (see AAA rated tranches bullet in Generic CLO structure for example of CE of 37%).
4. Generic CLO structure is a representative structure that is not indicative of all CLO structures and does not reflect Voya CLO portfolio composition.
19Spotlight: Energy Exposure
Key Message: ~$1.9 billion portfolio1 is 78% rated NAIC 1 / 2. Exposure has been steadily declining and is
currently 5.9% as a percentage of fixed maturity assets. 64%/36% split between Public and Private Credit.
Energy Exposure
Concentrated in Midstream
9.0% 11.6%
7%
6.4%
8.5% 8%
15.5%
8.0% 20%
7.5% 24.3%
22%
7.0%
6.5%
42.1%
6.0%
43%
5.5%
95% 93%
72%
5.0% 55% 59%
1Q-18 2Q-18 3Q-18 4Q-18 1Q-19 2Q-19 3Q-19 4Q-19 1Q-20* 2Q-20* 3Q-20* 4Q-20* 1Q-21* USG BV %
Energy % of Fixed Maturity Assets
Midstream Independent Energy
*Estimated
Integrated Energy Oil Field Services
Refining
1. Represents U.S. GAAP value weight for Voya’s operating insurance companies.
20Spotlight: BBB Exposure
Key Message: ~$14.7 billion NAIC 2 portfolio1,2 is approximately 64%/36% split between Public and Private.
Private exposure provides combination of structural protections and attractive value. Minimal below investment
grade allocation is opportunistic.
100% % of Fixed Maturity Assets4
11.6%
6.4%
15.5%
75% 50% NAIC 1
24.3%
50%
16% Private 42.1%
44% NAIC 2 11% BBB+
95% 25%
29% Public
11% BBB 3
2% Non-Corporate
6% BBB- 4% Positive/Stable
6% BIG 1% Negative
0%
NAIC Ratings Public vs. Notch Rating Outlook
Private
1. Represents the statutory carrying value weights for Voya’s operating insurance companies.
2. Based on NAIC and NRSRO composite using the middle of three or lower of two ratings.
3. Refers to securitized assets in the broad NAIC 2 category, 2% of which are BBB- on an NRSRO basis.
4. Fixed maturity includes Public Corporate, EMD, Private Credit, Munis, and Securitized.
21Investment Portfolio COVID-19 Exposure and Stress Tests
COVID-19 Sector Exposure1 Investment Portfolio Stress Test1
Prospective Impact to Excess Capital
Remaining
GA from Rating Migration and Impairments in 20212
89%
Stress Case One Stress Case Two
~$170 million ~$320 million
COVID-19 Prospective impact assumes no active
Sectors management
11%
Negative ratings migration is the dominant driver of
COVID-19 Exposure Composition stressed capital in each scenario
Asset Class Industry
Net cumulative impact post management actions of
10%
4% 4% 1% 3% Energy approximately $130 million from credit impairments
9% 51% and ratings migrations3
Retailers
~$3.2 billion unrealized gains in investment
7% Metals
portfolio
Automotive
Both scenarios are manageable given current
54% Airlines/Aircraft excess capital and future free cash flow
32% 13%
Leasing
Airports
Lodging
12%
Corporate - Public Corporate - Private
Restaurants
Securitized Lodging (CML)
Note: COVID Sensitivity: $1 – 2 million of COVID-19 claims per incremental 10,000 U.S. mortalities.
1. Based on U.S. GAAP Voya General Account portfolio.
2. Reflects estimated prospective impact to excess capital from rating migrations and impairment from Q2 2021 to Q4 2021. Overall cumulative impact of ~300 million under stress case one and ~450 million under stress case
two estimated from Q1 2020 to Q4 2021.
3. Impact of $130 million from Q2 2020 to Q1 2021.
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