Q2 2026 Voya Financial Inc Earnings Call Transcript
Key Points
- Strong commercial momentum in retirement with over $8 billion in defined contribution net inflows and high client retention.
- Investment Management delivered positive net flows and 12% year-over-year adjusted operating earnings growth, supported by strong investment performance.
- Employee Benefits showed a 5-point improvement in aggregate loss ratios over the last 12 months, with early 2026 stop-loss claims experience emerging favorably.
- Completed the final phase of the One America integration, which exceeded financial goals and enhanced distribution capabilities.
- Generated approximately $150 million of excess capital in Q2 with cash conversion above 100%, and returned $200 million to shareholders through buybacks and dividends.
- Adjusted operating earnings were negatively impacted by approximately $0.90 per share from lower alternative investment performance and severance costs.
- Alternative investment performance was below expectations, driven by macro market conditions affecting the private equity portfolio.
- Employee Benefits sales declined in Q2, partly due to disciplined pricing and underwriting actions, particularly in Group Life.
- Investment Management faces a headwind from the wind-down of a legacy relationship in the second half, which will modestly offset momentum.
- Voluntary loss ratios were elevated in Q2 due to non-recurring items, including billing true-ups and reserve adjustments.
Good morning. Welcome to Voya Financial's second quarter 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.
After today's presentation, there will be an opportunity to ask questions.
To ask a question, you may press star then 1 on your touch-tone phone. To withdraw your question, press star 2. Participants are limited to one question and one follow-up. Please note this event is being recorded. I would now like to turn the call over to Maini Chu, Head of Investor Relations. Please go ahead.
Good morning, and thank you for joining our second quarter earnings conference call.
We will begin with prepared remarks by Heather Lavallee, our Chief Executive Officer and Mike Katz, our Chief Financial Officer.
Following their prepared remarks, we will take your questions.
Also joining the call are Jay
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