Voya Financial's Q1 2025: Key Contradictions in Loss Ratios, OneAmerica Retention, and Expense Management

Voluntary loss ratio expectations, stop loss loss ratio expectations, oneAmerica retention expectations, voluntary loss ratios and reserves, and expense management and OneAmerica integration are the key contradictions discussed in Voya Financial's latest 2025Q1 earnings call.



Strong Financial Performance:
- Voya Financial reported $2 per share in adjusted operating earnings for the first quarter, representing a 13% increase over the prior year.
- This growth was driven by favorable performance in Health Solutions, earnings contributions from the OneAmerica acquisition, and strong commercial momentum across Wealth Solutions and Investment Management.

Wealth Solutions and Investment Management:
- Voya's Wealth Solutions generated $207 million in adjusted operating earnings, reflecting a 11% year-over-year increase.
- The company achieved defined contributions organic net flows of approximately $30 billion and added $60 billion in assets from the OneAmerica acquisition.
- Strong momentum in 2025 is evident, with a 7% increase in full-service known sales compared to the prior year.

Investment Management Success:
- Investment Management reported adjusted operating earnings of $41 million, with net inflows of $7.7 billion, representing a 2.5% organic growth in the quarter.
- The strong performance was attributed to broad net inflows across institutional and retail markets, and the launch of new funds and strategies.

Health Solutions Improvements:
- Health Solutions posted adjusted operating earnings of $46 million, with a focus on stabilizing Stop Loss experience.
- The January 2024 Stop Loss cohort is over 90% complete, with an estimated loss ratio for the January 2025 cohort at 87%.
- The improvements are due to better reserve management and rates applied to the 2025 business.