Wed, Nov. 4, 12:41 PM
- Though Retirement and Investment Solutions accounted for 78% of Voya Financial's (VOYA -3.8%) Q3 pretax operating income, it was a 2nd consecutive month of elevated mortality in the Individual Life unit which caused the sizable earnings miss, writes BTIG's Mark Palmer.
- The mortality ratio was more than two standard deviations above the expected level - the first time such an unfavorable variance has occurred since 2007, says management. The unit paid 35 claims of more than $1M during the quarter, totaling $65M. One year ago it paid 25 claims of more than $1M totaling $34M.
- Calling the miss an "actuarial blip," and the stock at just 0.7x book value very inexpensive, Palmer reiterates his Buy rating and $50 price target.
- Previously: Voya Financial misses by $0.09, misses on revenue (Nov. 4)
Wed, Aug. 5, 12:00 PM
- Q2 after-tax operating earnings of $179M or $0.78 per share v.s $213M or $0.83 one year ago. Ongoing business adjusted operating earnings of $319M vs. $346M.
- Retirement operating earnings of $128M down 6% Y/Y. Annuities operating earnings of $61M down 5%. Investment management operating earnings of $47M down 15%. Individual life operating earnings of $38M down 40%. Employee benefits operating earnings of $38M flat.
- 2.77M shares bought back during quarter at an average price of $46.22 each, or total of $128M. Book value per share rises to $56.33 from $54.88.
- Previously: Voya Financial misses by $0.05, misses on revenue (Aug. 5)
- VOYA -2.7% to $45.26.
Tue, Jun. 2, 1:04 PM
- The previous operating ROE target for 2018 of 13-14% is boosted by 50 basis points at both ends.
- The company lifts its buyback authorization by $750M, bringing the total to $808M. Voya (VOYA +1.1%) made $72M in buybacks during April and May.
- Source: Press Release
- The company's investor day is just getting underway. Presentation slides are here.
Fri, Apr. 17, 9:42 AM
Wed, Mar. 4, 10:32 AM
- ING Group (ING -0.8%) sells 32M shares of Voya Financial (VOYA +0.5%) in a public secondary offering at $44.20 each, and Voya agrees to purchase another 13.6M shares directly from ING for $44.12 each.
- The direct purchase will leave Voya with $161M remaining under its buyback authorization.
- Source: Press release
- The sales complete ING's divestment of Voya Financial. ING first entered the U.S. life insurance market forty years ago with the purchase of Wisconsin National Life.
- Previously: ING unloading the rest of its Voya stock (March 3)
Tue, Jan. 27, 5:35 PM
Tue, Jan. 6, 3:30 PM
- It's been a rough start to the year for the group as investors - who had bid up the names at least partly in hope of higher interest rates giving a boost to returns - rethink those assumptions yet again as the 10-year Treasury yield tumbles below 2%.
- MetLife (MET -2.5%), Prudential (PRU -1.5%), Manulife (MFC -2.2%), Sun Life (SLF -3.2%), Lincoln National (LNC -2.8%), Primerica (PRI -1.5%), Voya Financial (VOYA -2.1%).
Nov. 13, 2014, 9:07 AM
- ING Group sells 30.03M shares of Voya Financial (NYSE:VOYA) to the underwriters at $39.15 each (Voya receives no proceeds from the sale), and, in connection, Voya agrees to buy back 4.47M shares directly from ING for the same price per share (total of $175M).
- In total ING is selling 34.5M shares, bringing its stake in Voya down to 19% from 32.5%. After Voya's purchase from ING, it will have about $11M remaining in its repurchase authorization.
- Source: Press Release
- VOYA -2.1% premarket to $39.15. ING -0.2%
- Previously: ING selling another 34.5M shares of Voya Financial
Nov. 12, 2014, 4:43 PM
- The sale comes in two parts, with Voya (NYSE:VOYA) agreeing to buy $175M of its stock directly from ING Group, and the rest to be sold in a public offering. The price of the public offering will set the price for Voya's private purchase.
- The sale will bring ING's stake in Voya down to 19% from 32.5%.
- Source: Press Release
- VOYA -1.2% after-hours
Sep. 17, 2014, 3:16 PM
- Leading markets higher as the reality of higher interest rates gets nearer is the financial sector (XLF +0.9%). Whether its banks, brokerages, or insurers, a higher benchmark rate for some time has been considered a key bullish catalyst. An especially large move is being seen in the online brokerage names who have been forced to forego money market fees for years thanks to ZIRP: E*Trade (ETFC +3%), Schwab(SCHW +3.2%), Ameritrade (AMTD +2%).
- Morgan Stanley (MS +1.8%), Bank of America (BAC +1.2%), JPMorgan (JPM +0.9%)
- U.S. Bancorp (USB +1.1%), Regions Financial (RF +2%), New York Community Bank (NYCB +0.8%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1.3%)
- MetLife (MET +0.6%), Voya Financial (VOYA +0.7%).
- Chubb(CB +0.4%), AIG (AIG +1.1%), Hartford (HIG +0.8%)
- Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, KBWP, RYF, KBWI, KRS, FINZ
May 21, 2014, 8:14 AM
May 7, 2014, 3:32 PM
- Looking closely into the 8-K from Voya's (VOYA -2.9%) mid-March secondary offering, analyst Mark Palmer notes the company tipping off Q1 seasonality resulting in lower revenues and higher expenses, and that 2014 would be no different. In particular, says Palmer. Voya pointed to higher administrative expenses such as payroll taxes and audit fees, higher loss ratios in group life, and lower income on alternatives. Take advantage of selloff to get long, advises Palmer.
- Previously: ING U.S. misses by $0.08, misses on revenue
- Previously: Voya higher on BTIG upgrade
- Previously: More on VOYA Q1 results
Apr. 29, 2014, 8:32 AM
- Voya Financial (VOYA) is up 1.2% premarket after BTIG's Mark Palmer upgrades the stock to a Buy with $41 price target. Bullish from nearly the get-go when Voya was spun off from ING one year ago, Palmer pulled his initial Buy rating in January after a big run for the stock. About a 10% dip in the price since makes him a buyer again.
Mar. 18, 2014, 10:08 AM
Jan. 9, 2014, 8:25 AM
- Following ING U.S. (VOYA) hitting his $37 price target, BTIG's Mark Palmer downgrades the stock to a Neutral.
- "Our view that improved performance in VOYA’s closed block variable annuity (CBVA) unit would drive stock appreciation has been validated, as the shares now trade at 0.89x Q3 book value excluding AOCI of $41.49, which is more in line with the valuation of peers such as Hartford Financial."
- "We appreciate the boost that VOYA potentially stands to benefit from higher interest rates that serve as a tonic to its CBVA unit ... However, the likelihood of potential equity offerings from ING, which still owns 57% of VOYA, has become greater as its share price has risen."
- Palmer notes ING must reduce its stake in VOYA to 50% by the end of the year and fully divest its holdings by the end of 2016.
- Shares -1.2% premarket after a tidy near-80% run since the May IPO. Kudos.
Sep. 19, 2013, 10:51 AM
- Life insurers continue to slide following yesterday's non-taper as investors face the prospect of interest rates maybe not rising as quickly as hoped.
- Mike Newton reminds: Sunlife (SLF -1.6%) disclosed in its recent quarterly report a 100 basis point move higher in rates would boost EPS BY $0.23 per share; for Manulife (MFC -2.6%) it's $0.16.
- MetLife (MET -2.4%), Prudential (PRU -1.4%), Hartford (HIG -1.7%), ING U.S. (VOYA -3.7%), Lincoln National (LNC -4.5%).
- ETFs of interest: KIE, IAK, KBWP, KBWI.
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