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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
December 6, 2024
VOYA FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-35897
No.
52-1222820
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification Number)
230 Park Avenue
New York
New York
10169
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (212) 309-8200
N/A
(Former name or former address, if changed since last report)
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Common Stock, $.01 Par ValueVOYANew York Stock Exchange
Depositary Shares, each representing a 1/40thVOYAPrBNew York Stock Exchange
interest in a share of 5.35% Fixed-Rate Non-Cumulative Preferred Stock, Series B, $0.01 par value
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 



Item 5.02    Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On December 9, 2024, Voya Financial, Inc. (the “Company” or “we”) announced that Robert Grubka, CEO of Workplace Solutions, will depart from the Company at the end of the year.

Item 7.01    Regulation FD Disclosure
In advance of its participation in an investor conference on December 10, 2024, the Company is providing the following updates on the performance of its Stop Loss business.

Stop Loss Update

•We expect our loss ratio for the January 2024 policy year to increase to between 90% and 105%. This is a result of claims experience through November 30, 2024 continuing to be adverse relative to our expectations, driven by higher frequency of claims. Our previous estimate was 86%, which was based on claims experience through September 30, 2024. We estimate that claims experience for the January 2024 policy year increased from approximately one-third complete through September 30, 2024 to approximately 60% complete through November 30, 2024.
•Stop Loss liabilities are short-term in nature, and policies are re-priced and re-underwritten every year. We have executed and continue to execute on higher premium rates with a focus on margin over in-force premium growth for the January 2025 policy year. We expect this to meaningfully improve the loss ratio for that business, although we still expect it to be above our long-term target of 77-80%. Based on renewals and new business sales to date, we expect annualized in-force premiums for the January 2025 policy year to decline by 10% to 20% compared to the January 2024 policy year.
•We remain on track to return approximately $800 million of capital to shareholders in 2024. Excess capital usage in the first quarter of 2025 will be primarily focused on our acquisition of the OneAmerica retirement business.
•We will provide further updates on our business, including Stop Loss, capital and 2025 outlook on the upcoming fourth quarter and full year earnings call in February 2025.

The accompanying slides attached as Exhibit 99.1 provide further information about the performance of our Stop Loss business.

    These interim estimates incorporate projections of future claims based on historical known claims, involve the exercise of considerable judgment, and are subject to further adjustment based on additional claims experience after November 30, 2024. As a result, the Company’s reported loss ratios for the fourth quarter and full year 2024 could be materially different from these estimates.

The information and exhibits in this current report on Form 8-K include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company does not assume any obligation to revise or update these statements to reflect new information, subsequent events or changes in strategy. 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 Financial Condition and Results of Operations – Trends and Uncertainties” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in other documents filed from time to time with the SEC, as applicable, all of which are available at www.sec.gov.

As provided in General Instruction B.2 of Form 8-K, the information and exhibits provided pursuant to this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits
(d)    Exhibits
99.1    Slide Presentation (furnished and not filed)
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES
    Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Voya Financial, Inc.
(Registrant)

By:        /s/ My Chi To             
Name:    My Chi To
Title:    Executive Vice President, Chief Legal Officer and Corporate Secretary 
Dated: December 9, 2024


1Information contained herein is proprietary, confidential and non-public and is not for public release. Supplemental Stop Loss Slides Voya Financial December 9, 2024

 
Key messages Loss ratio for January 2024 Stop Loss policy year expected to be between 90-105%, as a result of claims experience through November 2024 Higher premium rates with focus on margin over in-force premium growth expected to meaningfully improve loss ratio in 2025 and lower annualized in-force premiums by 10-20% Excess capital usage in 1Q’25 primarily focused on acquisition of OneAmerica 2

 
❑ January 2024 book priced too low. Significantly favorable January 2022 and early experience for January 2023 impacted 2024 pricing ❑ Pricing decisions on January 2024 policy year led to significantly higher growth, relative to historical trends ❑ Increased claim frequency for 2024 policy year observed across most categories, most notably in cancer diagnoses across younger ages ❑ Updated view of loss ratios for January 2024 policy year is 90-105% as of 11/30, compared to 86% as of 9/30 ❑ Claims experience for January 2024 estimated to be approximately 60% complete o Loss ratio estimate for fourth quarter will be informed by claims experience in December at which time is expected to be 70% complete Loss Ratios for Stop Loss – Policy Year1 View Key drivers of 2024 Stop Loss block developing unfavorable to expectations 1. Policy year loss ratios represent the sum of inception to date paid claims and incurred but not reported (IBNR) claims reserves divided by inception to date earned premium by policy year, before reinsurance and rate credits for experience rated contracts. Subject to change based on additional claims or changes in IBNR by policy year after 11/30/2024. Refer to page 20 in the third quarter 2024 supplement. 2. As of 9/30/2024 our estimate of the loss ratio in Stop Loss was 86%. 3. As of 11/30/2024 our estimate of the loss ratio in Stop Loss is 90-105%. 4. Net effective premium rate increases achieved on January renewal business of respective policy year. 5. Paid loss ratio = stop loss claim reimbursements / stop loss premiums. Paid Loss Ratio through Nov5 41% 39% 39% 44% 53% Paid Loss Ratio after Nov5 37% 37% 31% 37% 37-52% (Estimated) 3 Premium Rate Increase4 18% 18% 16% 13% 12% 78% 76% 70% 81% 86%2 90-105%3 2020 2021 2022 2023 Jan-24 90-

 
12% 17% 20-24% Jan '24 Non Jan '24 Jan '25 Expected Significant premium rate increases on January 2025 renewal business, with greater increases on underperforming cases1 Focus on improving margin over premium growth 1. Voya assumes first dollar trend to be 8%, 8%, and 9% for January 2024, Non-January 2024, and 2025, respectively; consistent with industry expectations. $- $100 $200 $300 $400 $500 $600 Non Jan'23 Non Jan'24 Jan '23 Jan '24 Jan '25 Expected Lower new sales reflect increased focus on margin Jan 2025 new sales expected to be 40-50% lower YoY Jan 2025 new sales expected to be 5-10% lower vs. Jan 2023 4 Non Jan 2024 new sales 40% lower YoY

 
Expect loss ratios for Stop Loss in 2025 to meaningfully improve from 2024 1. 2025 loss ratio for Stop Loss expected to be above long-term target of 77-80%. 2. Chart not to scale. 5 Expected 2024 Loss Ratio Net premium rate increase, less expected increase in medical claims cost in 2025 Improved Risk Selection Expected 2025 Loss Ratio1,2 90-105% Net effect of premium rate increase of 20-24%, and expected increase in medical costs Improved risk selection on 2025 business reflected in our forecast for 10-20% lower annualized in-force premium in 2025 ❑ Focused on renewing a healthy book of business at increased average rates while addressing underperforming sub-segments of the block ❑ The 20-24% premium rate increase expected on January 2025 business is a weighted average across the entire book of business. Underperforming cases will be significantly above 20-24% ❑ Sales and renewals for January 2025 in-force premium to be nearly complete by end of December

 
Updated Stop Loss considerations 6 Metric As of 9/30/24 As of 11/30/24 Earnings sensitivity from changes in loss ratio1 1% change in loss ratio for Stop Loss +/- $15M 4Q’24 Health Solutions net underwriting gain2 $180M-$220M $(85)M-$140M Estimated loss ratio for January 2024 policy year 86% 90-105% Estimated claims completion % Approximately one-third Approximately 60% 1. Adjusted operating earnings on an annualized pre-tax basis (non-GAAP). 2. GAAP pre-tax.

 
Forward-Looking and Other Cautionary Statements 7 These interim estimates incorporate projections of future claims based on historical known claims, involve the exercise of considerable judgment, and are subject to further adjustment based on additional claims experience after November 30, 2024. As a result, Voya Financial, Inc.’s (the Company) reported loss ratios for the fourth quarter and full year 2024 could be materially different from these estimates. The information and exhibits in this presentation include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company does not assume any obligation to revise or update these statements to reflect new information, subsequent events or changes in strategy. 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 Financial Condition and Results of Operations – Trends and Uncertainties” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in other documents filed from time to time with the SEC, as applicable, all of which are available at www.sec.gov.

 
v3.24.3
Document And Entity Information
Dec. 06, 2024
Entity Information [Line Items]  
Document Type 8-K
Document Period End Date Dec. 06, 2024
Entity Registrant Name VOYA FINANCIAL, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-35897
Entity Tax Identification Number 52-1222820
Entity Address, Address Line One 230 Park Avenue
Entity Address, City or Town New York
Entity Address, State or Province NY
Entity Address, Postal Zip Code 10169
City Area Code 212
Local Phone Number 309-8200
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001535929
Amendment Flag false
Common Stock, $.01 Par Value  
Entity Information [Line Items]  
Title of 12(b) Security Common Stock, $.01 Par Value
Trading Symbol VOYA
Security Exchange Name NYSE
Depositary Shares, each representing a 1/40th  
Entity Information [Line Items]  
Title of 12(b) Security Depositary Shares, each representing a 1/40th
Trading Symbol VOYAPrB
Security Exchange Name NYSE
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