Voya Financial, Inc. Q1 FY2026 earnings call

• Retirement: Scaled franchise showing strength. Higher net revenues driven by fee-based growth. Outlook for flows unchanged with strong net inflows expected. • Investment Management: Client-focused solutions delivering investment performance. Strong demand for private market strategies. Retail international demand resilient. • Employee Benefits: Executing strategy to expand margins. Progress seen in earnings. Group life claims favorable. Stop loss actions and rate increases positioning for margin improvement. • Cash Flow: Strong cash flow quarter with excess capital generation ~$200 million. Returned ~$200 million to shareholders. Executing $150 million share repurchases in Q2. • Dividends and Share Repurchases: Steadily grown dividends over 5 years. Reduced diluted shares outstanding by ~14% since 2022. Payout ratio ~20%. Balanced returns with investment in business. • Policy Initiatives: Encouraged by legislative and regulatory momentum expanding retirement savings access for underserved workers.

Retirement: Generated $209 million adjusted operating earnings in the quarter, $960 million over trailing 12 months (14% Y/Y increase). Fee-based revenues up 8%, now ~60% of total net revenues. Margins over 39%. Investment Management: Generated $46 million adjusted operating earnings in Q1, up 12% Y/Y and 8% TTM. Net revenues drove result, supported by higher institutional and retail fees. Trailing margin 28.6%. Net flows positive in Q1, pipeline healthy. Employee Benefits: Generated $63 million adjusted operating earnings in Q1, $169 million over last 12 months. Key driver was strong net underwriting results. Group life claims experience favorable. Stop loss actions positioned to return margins to target. Released reserves in 2024 and 2025. 2026 business positioned for improvement with rate increases and underwriting discipline.

• Retirement: Expect expenses to step down in Q2 due to seasonality. Anticipate further expense reduction as One America integration concludes. Flows outlook unchanged with strong net inflows expected in Q2 and full year. • Investment Management: Confident in building on $7 billion net inflows over past year and driving strong organic growth at attractive margins in 2026. • Employee Benefits: Confident in path to further margin expansion. • Cash Flow: Expect continued strong cash flow generation. Plan to return capital to shareholders through share repurchases and dividends.

• Group Life: First quarter typically worst for loss ratio. Uncertainty on whether loss ratio will land at long-term target. • Stop Loss: Claims experience and reserving uncertainties. Potential impact of activist interest and strategic options evaluation on business. • Market Volatility: Impact on investment management flows and performance. • Medical Inflation: Effect on employee benefits claims and margins.

Q: About group life loss ratio, how is it trending and will it land at long-term target?

A: Q1 usually worst for group life. Encouraged by trend but early to say loss ratio will land at 77-80% for rest of year.

Q: On net flows in investment management, how about the rest of the year?

A: Trailing 12-month net inflows ~$7B, 2% organic growth. Confidence in maintaining growth driven by institutional insurance strength, international retail franchise, etc.

Q: On group stop loss loss pick and reserves, how is it?

A: 2026 loss pick 87%, reserving on high end. Confident in 2026 business improvement with actions taken.

Q: On activist interest in divesting or selling, comment?

A: Regularly engaging with shareholders. Board and management aligned on strategic path of growing franchise, maintaining balance sheet, returning capital. No daylight between board and management on strategic path.

Q: On stop loss loss ratio improvement, still confident?

A: Base case is calendar year improvement. Claims experience coming faster, reserves set high, seeing better performance than 2024.

Q: On stop loss intertwined with other employee benefits products, how?

A: Stop loss seen as risk transfer solution, door opener for brokers, deepening relationships. Positive commercial momentum in employee benefits.

Q: On stop loss claims coming in faster, cause?

A: Operational effects, talent brought in, claims experience from healthcare, severity and reporting speed.

Q: On healthcare trend moderation and impact on employee benefits, any visibility?

A: Seeing moderation, early sign, but results will illustrate progress.

Q: On activists and management strength, visibility on growth?

A: Progress on full-year basis. Retirement flows expected positive with back half-weighted growth. Wealth management showing 12% growth.

Q: On stop loss mid-year renewals, leaning into growth?

A: No, continue focus on margin improvement, disciplined with pricing.

Q: On stop loss loss trends and 24% rate increase, update?

A: Pricing to get back to target, reserving high, seeing better performance than prior year, confident in cash generation from it.

Q: On retirement One America outflows and retention, how?

A: One America integration near complete, retention over 95%, surrenders expected to moderate after end of second quarter.

Q: On stop loss unit volume with 87% loss pick and rate increases, how to think?

A: Being careful with risk selection, relative value of margin vs growth, block as healthy as possible.

Q: On board and alignment, why stock at discount?

A: Execution is key. Focus on delivering for customers, commercial momentum, earnings improvement, returning capital to shareholders.

Q: On retirement inorganic pipeline potential?

A: Active looking for roll-ups but nothing imminent, focus on deploying cash into highest value like share repurchases.

Q: On wealth business revenue growth, how driven?

A: 12% revenue growth, built on core foundation, demand for advice at workplace, recruitment of advisors, tools creating efficiencies.

Q: On stop loss two-year journey and margin target, timing?

A: Expect two-year journey, pricing business to be back in target loss ratio, seeing progress but will see how year progresses.

Q: On competitive positioning and fee compression, take?

A: Voya is top five in retirement, strong in investment management, fees holding up, confident in position, no expectation of fee compression.