Voya Financial Reports Q1 2025 Results with $1.969 Billion Revenue, Net Income Decline

Voya Financial, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $1.969 billion, a decrease of 4% from $2.051 billion in the same period last year. The decline was primarily driven by a $63 million drop in premiums, which fell to $737 million, and a significant shift in net gains, moving from a gain of $43 million in Q1 2024 to a loss of $34 million in Q1 2025. However, net investment income increased by $31 million to $560 million, benefiting from onboarded assets from the recent acquisition of OneAmerica Financial and favorable interest rate movements.

The company's net income available to common shareholders was $139 million, or $1.45 per share, down from $234 million, or $2.29 per share, in the prior year. This decline in profitability was attributed to increased operating expenses, which rose to $824 million from $799 million, largely due to costs associated with the OneAmerica acquisition and investments in new business initiatives. The effective tax rate for the quarter was 12.7%, compared to a benefit of 0.3% in the previous year, reflecting changes in tax liabilities and the impact of prior year capital loss carrybacks.

Strategically, Voya completed the acquisition of OneAmerica Financial's full-service retirement plan business on January 2, 2025, for approximately $50 million in cash, with contingent consideration of up to $160 million based on future performance. This acquisition is expected to enhance Voya's capabilities in the Wealth Solutions segment, particularly in emerging and mid-market segments. The company also reported a significant increase in its assets under management (AUM) and assets under advisement (AUA), which reached $977.1 billion as of March 31, 2025, up from $848.6 billion a year earlier.

Operationally, Voya's Wealth Solutions segment saw a notable increase in client assets, driven by positive defined contribution flows and higher average equity markets. The Health Solutions segment, however, experienced a decrease in premiums, primarily due to strategic adjustments in the Stop Loss business, although growth was noted in the Voluntary business. The Investment Management segment maintained stable earnings, supported by strong commercial momentum and favorable market conditions.

Looking ahead, Voya Financial anticipates continued growth in its core business segments, supported by the integration of OneAmerica's assets and a focus on enhancing operational efficiencies. The company remains vigilant regarding market conditions and potential economic uncertainties, which could impact its performance. Voya's management emphasized its commitment to maximizing shareholder value through disciplined capital management and strategic investments in growth opportunities.