8-K: Voya Financial Expects Lower Than Anticipated Alternative Investment Income for Q1 2025

Voya Financial anticipates alternative investment income for Q1 2025 to be below long-term expectations, estimating a $15 million to $25 million shortfall.

Summary

• Voya Financial anticipates alternative investment income for the first quarter of 2025 to be approximately $24 million $34 million (pre-tax).
• This is approximately $15 million $25 million below the company's long-term expectations, before variable and incentive compensation.
• The long-term expectation for alternative investments is a 9% annual return.
• The company's quarterly earnings release is scheduled for May 6, 2025.
• These are preliminary results and are subject to change upon completion of financial closing procedures and review by Ernst & Young LLP.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the underperformance of alternative investments compared to expectations. However, the company is transparently disclosing this information, which is a positive aspect.

Negatives

• Alternative investment income for Q1 2025 is expected to be below long-term expectations by $15 million to $25 million.
• The preliminary financial results are subject to change and may differ materially from actual results.

Risks

• The preliminary financial results are subject to change upon completion of financial closing procedures.
• Ernst & Young LLP has not audited, reviewed, or compiled these preliminary financial results.
• Material adjustments may be required during the preparation of consolidated financial statements.
• The preliminary financial results are not necessarily indicative of future performance.

Future Outlook

The preliminary financial results are not necessarily indicative of the results to be achieved in any future period.

Industry Context

It's difficult to assess the full industry context without knowing the specific alternative investments Voya holds, but underperformance in this area could reflect broader market trends affecting private equity, hedge funds, real estate, or other alternative asset classes. Other financial institutions with significant alternative investment portfolios may be experiencing similar headwinds.

Comparison to Industry Standards

• Without specific details on Voya's alternative investment portfolio composition, it's challenging to provide a precise comparison to industry standards.
• However, a 9% annual return target is a common benchmark for many alternative investment strategies.
• Companies like Blackstone, Apollo, and KKR, which specialize in alternative asset management, often target similar or higher returns, but their actual performance varies depending on market conditions and investment choices.

Stakeholder Impact

• Shareholders may react negatively to the lower-than-expected alternative investment income.
• The company's overall financial performance could be affected by the underperformance of alternative investments.

Next Steps

• The company will complete its financial closing procedures for the three months ended March 31, 2025.
• Ernst & Young LLP will review the financial results.
• The company will release its quarterly earnings on May 6, 2025.

Key Dates

Keywords

alternative investment income, Voya Financial, Q1 2025, earnings, investment management, financial results