Voya Financial (VOYA) 2 Nov 222022 Q3 Earnings call transcript

Good morning, and welcome to Voya Financial's Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen only mode. A question-and-answer session will follow the formal presentation. [Operator instruction] Please note this conference is being recorded.

I will now turn the conference over to our host, Mike Katz, Executive Vice-President of Finance. you. Thank

begin. may You

good conference to of call. us have and quarter you Financial's XXXX joined call. this earnings We for morning. you, Voya Welcome third who Thank appreciate all

or call reminder a on at materials today's via As are webcast. the for our available website investors.voya.com

slide to Turning two.

certain Some comments more referring you refer to our this slide for made financial conference forward-looking be may contain non-GAAP I of within securities the reconciliations website. and to in law. We'll GAAP the information. today also press statements our on meaning financial during are call of measures, federal the found supplement available release

me Lavallee, our Officer. After Joining Chairman Heather our our President will Martin, their prepared and Chief Financial remarks, Officer-elect; are your the Smith, on we questions. Chief Rod Mike Officer; and Chief take Executive Executive call and

Investment invited For Chairman specifically well the that heads Vice of Nelson; Health and Chief Hurtsellers, and have session, businesses, as we Officer, Charlie, Solutions. as Management Q&A our Rob Grubka, also Growth Christine

With turn Rod. the three call as that, I to slide over turn let's to

Good morning.

approximately operating things. excluding of slide the our our the macroeconomic key third and components adjusted growth with margin We some capital quarter, exceptional execution year-over-year XX% challenging of This EPS delivered $X.XX. strong begin on performance grew during Let's particularly results by four given notables to continued We environment. the EPS reflects organic growth, points.

our XX% we original As target to year. we we've XXXX, achieve XX% macroeconomic a result, challenges despite this experienced now will believe for EPS the

prior already third ahead and our GI have from costs we which the removal of assets on related including and transaction including we of factors, on revenue benefits achieving the associated our driven of the of with quarter several schedule. boarded diversity divestitures, the of the interest the claims, target COVID wealth on stranded achieved we streams decline is business, during Allianz all markets in revenue confidence the rates continued serve, this positive impact the realized Our our by

all closely businesses annual our organic and in quarter months, growth of our performance, trailing XX our more Looking achieved with at this targets. over the line

This net Investment $X.X months. During voluntary generated product last Wealth initial of annualized a XX.X% premiums transaction was prior the the of third strong billion. and year of billion Management growth this In with trailing our represents were benefits of including full flows Solutions, In we driven across prior $XXX nearly service billion. compared billion. the flows product lines line. in with over net period And over compared our to solutions, $XX contributing the recurring net GI. Allianz deposits force health organic year XX flows in positive growth to million the Full with period in grew X.X% increase to grew $XX all months quarter, the $X.X by our XX% XX service

XX third approximately brings capital. capital trailing months stock $XXX XX with $X.X million excess ended the to debt common $XXX the concluded our third quarter dividends. We quarter over deployed deployed approximately In we pay This to excess extinguish total and September million billion. the of

financially to of acquisition strategy both our our that and further Benefitfocus our immediate deployment given and of This for strategy. while to key intermediaries the believe this the it also leading wealth our solutions improved integrate We opportunity an priority announced This and revenue attractive transaction form that accretion transaction we for of our strategic term acquisition long strategic and Finally, long outcomes represents brings opportunities our growth capital and is an cash term highly customers, highly health immediate shareholders. accelerating Voya. and growth enables a It capability yesterday. is accelerates compelling.

a In strong to value track how and our our moment, Heather details this strategy. We strategic more on delivering health accelerates of record acquisition wealth returns share our build will continue shareholders. and on for

continue on slide and to focus brand Voya. our five, culture differentiate to Turning

During month. our number to special annual highlight October, part teamed Voya supported a Disability and with a awareness We of disabilities increase Disability of to for third the IN with virtual up concert And National Voya's events the in people employment of as the engaged need needs. was during improve rate rate and XX% Employment more annual the times history. giving rate three held donated September our of our And participation average campaign, month, company. we employee our employees highest in of the activities than the people giving in at that

further seventh consecutive was people honor our a the to our earned work and culture And a we as great recertification Our recognitions from place and to These to of work in of Fortune. of confident continue how our year. reflect company effectively can through of validated we by our the shared controlling we environment the strong our the strength history our advance in actions with Investor executing for and all With culture our we regardless Day. the and you what we that remain carries macroeconomic that do. plans at plans control similar on

on let Benefitfocus our well of Heather. that executing additional Heather as exciting ask to With as me strategy. details we're on on our share more details how acquisition

Thank you, Ron.

that result financial strategy As our businesses to results. execution shared, Day strong Ron shared our across Investor in of with we continues at outcomes exceptional and the you

growth, our to potential we growth that investments organic able the successful inorganic of the well we to the demonstrate as of to business, addition additive have been outcomes made opportunities In have as pursue. we continue in

capabilities is Benefitfocus. agreement slide strategy our with begin Wealth This administration to presents move and Benefitfocus benefits we the acquisition Let's across seven to At adding same broad-based accelerate new the for inorganic Health time, that opportunity extend a Voya's workplace opportunity to to announced an benefits savings. exciting and acquire strong that growth. yesterday, our a foundation definitive in Solutions, reach customer-centered

able capabilities will to expertise. to further were we leverage be digital operational attracted will transformation believe clients our that Benefitfocus well. as that executed, value scale, and Voya, Importantly, the significant of add technology, part This ultimately, has Benefitfocus it Voya's we as to and and

industry. experienced year time capabilities that We've We across spent extensive he team who has impressed and with reach strong the CEO joined their Benefitfocus meaningful Matt talent, assembled. by as Levin, exceptional and help been last this plans believe We employers and the transaction members. health financial, physical employees ability improve and for deliver expand emotional will of solutions to our and Benefits innovative the their and well-being

transaction before buybacks Finally, and will immediately synergies. the to future important, just as accretive cash relative even be revenue

more Benefitfocus to important revenue strategy levers growth shared growth. and Turning year, this role. valuable last share about supports our transaction Investor also play our revenue a our and like we driving I'd while Day eight. how accelerates slide to will with you. At

will both and our we relationships, continue deepen employer to First, clients with intermediary partners.

our approach. so We remain will spend customers positive product-agnostic helping make connections we an benefits by outcomes to can their employees. for do and optimize will committed and open-architecture the savings In benefit so, their to generate so workplace doing that across

Second, we growing are customer base. grow our and will

individuals roughly workplace the We lives on customers, solutions industry, drive in firms million continue million even or adding provide have the in organic touching platform. our brokerage completion than retention, one leading expanding Americans approximately XX XX consulting with XX With its Voya Combined Benefits we existing new this our momentum. through Health and demonstrated will acquisition. following Benefitfocus, reach customers. serve more and and of ability our the serves to to broader the Benefitfocus Voya be customers this growth at client will

able and being play a as goal, important a clients Our their and role intermediary expanding to in more new to helping savings partners they to workplace play role as well in and clients achieve both Voya. capabilities valuable customers will benefits key our bring

are meeting growing lead app for streams at which our digital adjacencies. experiences example further enable finally, And as results to us This we work demand A positive I'll to leading our the our the is our expand savings for here improve we innovative by how mobile will to benefits moment, an myVoyage a clients includes better the and give grow Voya. our In will continue is you such new that and key solutions our to of comprehensive outcomes. for and offerings into capabilities, expand aspect revenue and workplace. introducing, solutions

summary, compelling all clients, and deliver and our and of for exciting with intermediaries enable our relationships to opportunity Benefitfocus our expand strategy, inorganic aligns will including and shareholders. In greater value growth customers with represents stakeholders, a us that deepen

move slide nine. Let's to

future Health, our Wealth that experience and the in evolution by commercial leading easy workplace our strategy, expertise savings accounts in digital Solutions. guidance provides benefits, Wealth, our the Health personalized the next the This Investment to application. myVoyage and It is and data its opportunities addition a with gained leveraging our across transaction, represents In growth Benefitfocus to one the success kind, and access along of capabilities, strong see launch we app financial app. includes a to solutions of businesses. like continue first The new of personal

stages, we seeing are early are attracted existing that solutions. to in new clients digital While our

Bass existing a undeniable, just client drive benefits examples savings revenue of opportunities are Serco Shops add these testament our how example, connecting Pro growth of employees. and growth provides and a are strategy to two support our who engagement workplace nearly Both bringing clients our us. of to their is strong to to digital one wins The latest few For and are combined and importance solutions team's of to and chose we large are life. it for numerous XX,XXX market

overall our continue and where offerings workplace solutions will beyond. help experience financial advance across create expand Moving customers' ultimately and outcomes Wealth, forward, Health we additional to greater our purposely the at and can

Turning to XX. slide

the Investment existing strategic us the with emerging will of the already distribution the including add to our along completing the new value our of benefits great of We assets to our acquisition, make to also this the business retention continue partnership, progress AllianzGI. associated momentum value enable in both our with July, added with to capabilities customers XX% partnership This and transaction. due of we shareholders. from the and the are After AllianzGI seeing transaction Management in

adjusted For accretion EPS for operating example, XXXX. continue X% estimate to cash X% to to at company's the we

transaction, resulting We for new international revenues and including a are asset our this scale strategies. management diversified existing asset expertise global opportunities for partner significant management distribution and with and excited about leading from business

we shared Overall, on all of with executing have that are we strategy the you.

our outcomes about that AllianzGI both transactions We we benefits Benefitfocus and of the and all to excited are delivering are our additive bring will great all of stakeholders, stakeholders. for

provide to financial it our me you Mike and to with that, With turn on performance let details results. more over

Thank you, Heather.

very results slide results Let's per items. $X.XX with adjusted earnings third our operating three notable includes This we of the share. In turn quarter to XX. on delivered strong

release unlocking of our and favorable long net non-cash third Solutions, of DAC to term annual related by $X.XX Health $X.XX review. $X.XX second, reserve assumption First, our favorable of alternative also expectations; income in assumption below review; driven

strong wealth, adjusted grew earnings and we management and Both reflected per underwriting investment net by in close $X.XX. AllianzGI share items, Health to results in the spread these investment from year-over-year of Excluding operating earnings the XX% transaction. higher revenue

in Third costs, million. by businesses net were offset transaction income driven we operating and related spreads increases $XXX was and losses investment Strong modest to exited. by quarter rates losses have GAAP earnings modestly AllianzGI

revenue quarter diverse very us businesses pleased rapidly results, are exemplify through streams with economic We effectively our and how navigate the complementary which changing landscape. our third to enable

strong business for diversified our Moving revenue Solutions to delivered of demonstrating slide the results XX, quarter sources. mix wealth and the strength

quarter million. alternative period notables $XX DAC were unfavorable $XX long higher despite earnings favorable prior the This operating of Third operating equity our adjusted below and market. earnings excluding income $XXX unlocking. year million Adjusted term than were of million expectations included

trailing on XX Net grew month basis. revenues ex a notables X% over

higher from than Our margin. the equity rates, our of spread impact fee benefited based revenues on which based interest markets offset more

quarter interest We credited and third and second income is quarter not as quarter expect between in favorability spread expected be third repeat. to to yields fourth levels

XX.X% our macro was a target This basis. month XX XX%, on margin ability of operating to spend adjusted quarter cycles. through our range demonstrating was manage trailing to above Third XX% challenging

on grew XX% to deposits for trailing with basis month expectations XX a recurring of to full Full year deposits XX% inflows. Turning service growth by XX%. deposit approximately

increased X% average see to employees continue X%. while participant deferrals deferring favorable year-over-year have trends. We has increased of The number

service Full As strong match healthy, an employees million and employer This of the number second $XXX has service. upon plan remain favorable inflows strong increased sales this were employment quarter generated in reflecting net builds quarter X%. trends flows retention. receiving full the

to due withdrawals. billion, case $X favorable and participant were inflows net large keeping new a Record

and to Looking a ahead, we cash a net favorable we full in XXXX. have service in coming pipeline continue expect flows significant trend

along proposition term well is value by a brand distribution supported business across solutions we well with When long wealth markets national and consider Our are this success. strong footprint. leading diversified positioned our we for differentiated

reserve million included unfavorable $XXX of Turning release XX, health a to operating third which adjusted alternative $X and slide earnings favorable solutions income $XX quarter were million, million.

Given release, items this nature reserve notable a size and the treating of quarter. are as the non-cash we this

growth operating with XX% earnings items, solid within these range. million, and target to year-over-year $XX adjusted our revenue to margins XX% XX% grew Excluding

on basis, both in our a product this premiums across XX at loss was of Third underwriting quarter growth XX% year-over-year year-over-year, revenues end premium net month stop by trailing and grew XX% the range, voluntary. force reflecting lines. in results grew all target favorable Annualized and growth to X% X.X% driven top

we loss the trailing impact month ratios on results. reserve as a to each excluding performance favorable product were XX% aggregate quarter's release in our experienced In Total of XX this distort so basis the quarter, favorable not of the lines.

strategy discipline market. expect wealth confident continue renewal season. in the are for ability a we and to book we maintaining and remain our pricing seeing our early indications grow health with strong our broadly, ahead, Looking and to sales resonating More while

XX, adjusted Moving million to of third quarter in net $XX Management the earnings million Investment interest. AllianzGI's operating or slide $XX delivered of

our earnings was the quarter, Adjusted investment net on this revenues boarded revenues X%, by term offset capital unfavorable Excluding ex helped $XX partly in returns net by AllianzGI's were fees. from AllianzGI long interest. impact macro grew on million asset of below notables, expectations. operating Net

adjusted than partially markets, to operating XX% due was margin equity by on trailing prior AllianzGI. period lower XX year basis, a quarter Third month unfavorable offset the

in accretive retail growth operating our expect private to growth assets, We in discipline continued our expense overall assets alternative and margin. and to be

in Management's the now quantify some equity specific We relative macro term better fixed second and appendix. to in rates stabilization the include of near markets saw help interest changes, To income quarter. performance to sensitivities impact Investment we

five basis strong respectively. XX fixed Importantly, performance remained investment a our and of income long XXX% and term as XX% outperformed year our funds on

in against Turning outflows fixed-income our with flows, million backdrop materially, the were markets the $XXX down quarter. to challenging net equity market markets and

largely for channel offset and income alternative was fixed flows fund. by inflows $XXX from demand the private saw Income insurance strategies. outflows Retail from income. million. year-to-date in retail Fund and core remain from Growth fixed credit over private domestic However, closings net by In and fund institutional, offset outflows, was equity quarter the contribution positive This core AllianzGI our

XXXX growth rate we full be ahead, expect organic overall Looking year to roughly zero.

confident in future to remain X% X% in we growth So our organic years. expectation

mortgage strategy the Additionally, derivative to long-term future. performed to and exceptionally fees strategy. performance not performance realized we well do the in to That said, related the the expect expect return fourth quarter in has our over fees we

unfunded reach Looking contributions We've long-term deliver near to income excellent macro we alternative through strategic long-term headwinds, the and partnerships, continue we bullish and remain a from term on our prospects. with notable expanded investment strong and fixed performance. private our have pipeline strategies global

slide XX. to Turning

position million million capital capital $XXX quarter, the Our past the deployed have in $XXX ending with generated approximately months. billion deployed over we second excess in third and of XX was quarter. line capital we of quarter, Including as $X.X largely

Our financial leverage the at XX.X%. ended quarter ratio

as neutral any as on will transaction relates will leverage it the be of the debt transaction. part Benefitfocus, we As to take not

of the attractive accretive an growth earlier, our add immediately capital will Voya's Benefitfocus we operating cash earnings of deployment enhance As as revenue view form earnings. to that and it prospects, acquisition noted is

return Looking balance capital share by robust generation. and strong. of we expect extinguishment position ahead, Overall, repurchase in capital the debt and our XXXX, to to remain supported activity sheet middle a

business continue will to deliver diversified and are through portfolio confident capital investment our that cycle. well risk adjusted returns We the attractive

story in It you a team prospects they and the nonetheless honor making as bullish over the As be the XXth been on move played is years. in for Analyst likely my to not I of Voya industry our Call have a XX last And CFO entire and privilege Voya forward. transformation as, know, this more has Heather an leading Voya. part the could

commercial Summarizing another benefit we of and business the which mix and quarter, quarter sources. diversified demonstrated earnings, are positive pleased strong with continued the revenue of our our momentum

of strategy the through delivering We our an with progress around and capital Benefitfocus. wealth about continue eye are our we value. activate our to shareholder And be acquisition toward health excited disciplined to

your I to the questions. will we turn take can operator With that, that so the call-back

we your and Jefferies. gentlemen question. question ladies And [Operator this from Instructions] at first conduct Kamath you. Suneet question-and-answer a Thank comes with Our time state will session. Please

side? morning could, Mike future. in I if curious wanted the you, what's the Thanks to Benefitfocus of it's as we should working Good then luck be baseline just thinking revenue numbers well on start talk the with and if near about everyone. about sort of great with expense out opportunities earnings of-the synergies of best you you sort gate term could any around as

will take Suneet, Heather Sure this.

be your opportunity it we we clients management Voya have start so the little our as we so just capability important the has partner saying investment thank offers. at morning, much couldn't experience management into And that question, to more And within the keeping the very guidance as solutions that I'll and administration a retirement might I for if by asset of think have the benefit strategic question. we user bring before have offer about capabilities the solutions the already you companies. be I the excited space, and capabilities, in of give Good we address broad engines solution Benefitfocus' to when that asset we serve the Suneet, the well the think more about breadth employer record of company to rationale why thought offered helpful workplace, broad is Voya. you both our then you And

to and experience health for did protection front-end health health partners the our providers, our user the to end front does providers help while of we we've has benefits with experience have solutions a side benefits the leveraging capability connect that it the allows different both got breadth on what the have what really administration offer this the employers very about we is typically to so connect or us benefit administration user think not but been all that you needs, unconnected. to capability of when And voluntary solutions myVoyage us

a rationale. with sure So, got wanted in to, make grounding the that strategic just to we've I start that good

can company to expenses of of to is revenue we're organization some this million from of get immediately Benefitfocus our is publicly able an operational advantage they've on Now elimination of specifically that's as got Benefitfocus this run and accelerate and public to by digital we as about and synergies accretive is tax technology, expenses the our the advantage the taking think their about revenue our or that synergies our question think rate around you $XXX take when any synergies corporate margin in on traded you improve ability you your to help asset growth about recurring well run-rate, a that why that see we basis see immediate their of all it's expense our annual and revenue before experience. leveraging and see horizon for plan

So, probably actually let pause me question. your I me lot answered just and see let through if a

was point bit want get the point. launching did hear guess. revenue right we I we're XXX at so little that terms in be and good if I just be just like benefits. starting helpful. have a some assuming earnings just clarity I and again. that to wonder a more You we base can all that clear I we of the should the

clear. you to the specifics, a current some their close. company to with going is on we're Benefitfocus our information to expect specifics their information their with a can so going around get you more We've we're say margin, accretion back we back and I'll as revenue, public current more bit closer included come is in with presentation Yes, come see as today

I guess Okay, Mike. for that's great. then And

prepared on lot but a I think results your of in bit even a strong. like basis little remarks it a quite it normalized the segment were you looked covered

again. could segment of So kind sort of you walked I what was just through, maybe going think is just at sustainable the hoping forward of kind you level

Thanks. but make to hit want I have pieces. of some on think just all this, the sure. you I

spread. third in think I start the a a -- fourth quarter, Look, with see little that. macro equal I bit was continues environment turn. gave between to think them level a We quarter. We'll continues long Sure. do strong as that of largely and We in sustainable, that else performance will And be to driven should the sense there, all the each support to you side. pullback be so by quarter second investment a let's that Wealth

portfolio since Our it's years to probably substantially reinvestment hard saying was yield. is our rate and now, true. believe this, been is even now I'm higher that It's than XX

Obviously, continue margin year to out I think in that So be a is markets a have we've play consistently in that tailwind. solid. to year the should as ability will to current consistent good to equity role well. an manage and a But demonstrated margin very and

normalcy saw side, Health noise release, was, very results. Voluntary life reserve I from underwriting Group strong we if return the business what you the On Life results. still really take a block, the that for good think the out to And or

called see a across seasonality quarter And very the you with are you enrollment pleased reminded they the that results and then a normal quarter. there in out -- be as this pullback think through I the and benefits. in the continues Voluntary process that to fourth Loss see the board. have we've that a could very fourth we're the business Stop little is strong, these people on in before, There's

Life think thesis. in particularly Ex-COVID, we So tough viewed and been supports through as of that couple this that we've business, a quarter Group there I quarters. the noise,

new the AllianzGI see the expense watchword Management, explore. horizons going to capabilities, not adverse continued from us think, the benefit distribution only the of really Investment On of the to I plus but relationship the that market growth discipline also for is new in and face -- conditions, investment there we're

all and Voya that very for strong think, forward. a a to, going think picture I goes I sustainable very think of So I

your next Burdiss Raymond James. Please our from question. Wilma question comes state and you Thank with

Thanks. Hi, good morning.

I they material quantify the given you following could synergies, Just they be some up has of costs other think the could things. company company seem us on public like and question, help Suneet's pretty expense

is Heather. take the question. I'll this Wilma,

is a company. think Benefitfocus So if about you small-cap it,

So cash we're accretion. expense achieve amount able an relatively have to and immediate of synergies small

in back So think really, on impact terms come expense have a does just small of it of amount we'll with the about synergies, accretion. more it But specifics. meaningful

you. Thank Okay.

could through Thank deal closes what XQ. the expect you. walk capital you question, should please us in Second the after regarding we excess position

that could with I quite just you well, I to repeat it a catch garbled. it was Sure little didn't but excess capital. do had it,

if expected 'XX. Yes, could closes the capital in just position the you through walk us excess deal XQ after

quarter Well, give what to lot Okay. we're to think going then because the or to with things think quarter you project end quarter. the I'll second excess expected in first The like of way $XXX-ish we'll be close to of about. capital transaction million earnings in first have I The a the million of there's meantime, is transaction don't first ground about and the will third in the close to this consume, $XXX is 'XX. fourth about generated quarter But call quarter in again quarter it, know from going in capital that is capital. We to 'XX of will the the that. excess cover.

those a position level. we should where quarter, at meaningful and the what RBC first be on beyond XXX% of you the depending excess So see ultimately in capital above the end there's still, in quarters,

tell. So time will

cash the to about, way six We're optimistic pretty -- we talked about at to the be it. Longer think money five a But -- think that's least the that we over or feel to to cover credit off environment continue term, four lot that or the term. months months potentially off. near written. I that's transaction, the not yet about

would is going as being strategy that that expect as we capital of we'll to And remain we're 'XX. can 'XX, shareholder be to is always capital to to Wilma, that capital more it's have Heather, and going deployment into with and around been it stewards continue I one we our add into you good disciplined going continue point

you. Thank

Our next question Bass Erik state question. Please Autonomous with Research. your comes from

you. thank Hi,

in relatively XXXX revenues And like so XXXX. expects Benefitfocus flat it versus looks

accelerate you weighing could and just this was what's you been talk hoping what recently growth confidence forward. I can So about that gives on going

Eric, it's I'm morning question. to take happy your good Hey, again Heather

going first, road drive Benefit a very, space. experience new in but clear around team And what gives management the achievable So got Benefitfocus as revenue a path seasoned forward me administration us with a combined with years' growth clear over let they've to has confidence as enhance start map to but the forward, path is capability. a XXX well very very

look attributed have tremendous when Matt been management that's past they team. really revenues and some stumbling why this team, at not you as us largely Now gives and with they what few flat were over blocks new had to the years, that with and confidence his

committed is And one In Voya product-agnostic Benefitfocus I this intermediary to recommendations terms around to product partnership. placement, absolutely we're brokers, of one is and architecture are approach that an an of both things the retirement, the would consultants, really open ben advisers are the centric the are point committed other and making of to items admin, that that business, and ones focus. our in

confident achievable with feel the plan do very we So very, forward. going

going maybe revenue time, to also you existing a their benefits come going growing be products? base for it and from think Or it follow-up And Thank as just you. about is over to the the Voya-produced well? is financial products revenue mostly synergies ultimately on distribution is as opportunities

Yes.

potential. and to add to going the in growth some commentary ask start me Let around Charlie I'm

not scale, our of to did technology, the we they distribution reasonable them their of And set just we property that it our can that does aid current from in of help out. the of plan, footprint, valuation things that talked achieve ability plan valuation of any accelerating we about So bit for very Voya when plan really of on basing were some contemplate terms their the all of et our on their leveraging cetera. Benefitfocus,

not about turn the again, opportunities some excited very much additional additional going in accretion. are drive is around the forward, Charlie growth -- to I'm going add And this We thoughts. to to revenue it to

Yes. Heather. Thanks,

ben-admin benefits half ben-admin at at you and decisioning of look administration want Ben to if eligibility, what we are driving, is got workplace XX market. in to a step And benefits. capabilities people the is as that back, an Just about benefits eligible the employer, as think And have you've know take the about they various usage. about, core about different and we talked typically enrolling who's core the benefits.

get -- who's billing to enrolled then got someone's all and them providers. eligible, the who benefit is various So

-- analytics growing guidance core national market benefit market administrative got benefit benefit And really It's or then large claims, and solutions, recovery services. ancillary total based the a The whether navigation, basis. a there's on it's addressable is insights, a data market.

just core what communication about within our future. I been we we're you think an And it's synergies, valuation excited obviously, So capability, tremendous so revenue synergies, think the brings and about our assumes clear in that. business see opportunities no far, in and Benefitfocus as revenue is the but the that when ben-admin enriched very

we XXX(k), revenue over And HSA and And emerge those give holistic take across. for mentioned savings, time of kind we're to it's as just these because non-qual, we well That's Benefitfocus Heather benefits about and because to digital able potential and capability. you is HSA, going me What excited myVoyage, think savings, the and a are that synergies a Voya. little which doing app leverage with ability will our to to time, whether integrated it's drive workplace couple. let guidance very also be as one over emergency time. of both opportunity

as because to most to back the pipeline benefit of 'XX will been well middle have as decisions But question take benefits got going 'XX, it benefits of the this in confidence of around health. as in and first with remember, benefits enrollment the to you've part made they're your administration kind for Now in relates decisioning. time

So as well, good we a capabilities. line into future feel obviously, about really when good sight, we've think about got of 'XX, pretty the and these especially you additional

And might before the Charlie. relationship just add move next and long Thanks one final thing a is his perspective. Benefitfocus, with we've ask got to we Rod question to I

sure. Yes, Heather. Thanks,

top runs a be past, perspective variety it's in Benefitfocus whether we've that So their a as to XX with, of from premium to us. companies the it ben-admin group platform count a bit. our would put the north about that total partner through a a talked little it's or of we XX number and dimensionalize for in is space

know So we firm that they're a well. really

as it, corner you to done, and north and book this shoots of about protect very the to they're on a experience in the growth It a Matt which in of to market. on bit see leverage we turned and and a they focus, the think, got do takes as opportunity. that business much little the on XX the that growth swings the create they've property having them. revenue with few of has to it's as That have. and we the is and years move book team again, started to and think a pace we've they've green for market with we question business focused the they've get had -- forward. reception worked And of started a perception retraction with integrated But drive that have meaningful And just them creating

only how things insight better We think process it's they're we've better have into before and due diligence, good execute about really and a and gone that gives they're deeper view us thinking trying to how through that forward. as moving gotten

our from state question. next with you Ryan your Please Krueger question Thank KBW. comes

Hi. the good flows closed? how some perspective Could they've give trended Thanks, on the AGI-specific you and transaction morning. since

Christine?

flows $X.X we closed at positive We acquired of of about billion the from net since end AGI cash July. actually had

and value So are client bear. relationships clients couple strong a Investors investors again, and to real bringing for that is just really just testimony really Global that a Allianz of the strength the to things, the the delivering

just as talked We assets, retained XX% we approval. full of regulatory so to step remarkable. I back, quarter, a little kind mean bit take And the about last really a of

we thinking And the originally much again, on in terms were we deal modeling we this, in what when were be. thought outflows would conservative of more

So inflows. actually -- they're and

what client really with we're point the is retention. of really than I excited that So faster going is. expanding the given makes strategies, just leveraging anticipated, much again, the offense me team mean, strength on we

products related is distribution? just And pipeline non-US lead you through think build up their time new how question as to Thanks. to about Great. the sell the

already off we we're launching number managed and is UCITS of having on client sort call international of a What in we are as of SMAs. Currently, accounts working or well discussions Sure. their opportunities single platform. some what

the strategies queue. so in we number have of a And

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Great. Thank you good luck, and Mike.

from state comes question your Tom next Evercore Our Gallagher question. ISI. Please with

Good morning.

back Benefitfocus. Just to coming

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together businesses with longer-term terms have open As about had we believe keep it, we that strategy sure Benefitfocus, what we a we on we we've these the making talked of very bring importance of relationship and as Rod like-minded this mentioned, product-agnostic with a architecture approach. and in can

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lot just it. your I a question, So if let to I parts are know And of see pause. there and hit Tom, me

Heather. Thanks Yes.

I got for of think them all the multi you sorry partner.

okay. That's

transaction. Just allow in utilization, is being Voya's you to or quick The DTA accelerate follow-up. tax asset one the your does tax transferred that asset

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you. Thank

Lee next with question Markets. Please RBC Kenneth Our comes Capital go ahead. from

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you. Thank

with Sachs. Scott Alex from state comes Goldman Please question next Our your question.

Hi.

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do chime in. Happy Yes. so. to Heather, It's I'll

wheelhouse. to $XXX recurring as $X year-to-date, with So very saw strong the within us flows in full-service you quarter, right million deposits the brings flows of billion

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business, we longer-term lead much have there's to because horizon about turn recordkeeping quickly take a times. longer recordkeeping, the that we've I talked past in if And to

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good Full about very, feel Service momentum across we commercial and very So recordkeeping. both

I'll we and all for today. the the floor that's time management Thank hand remarks. questions for now back to closing you have

Mike, his share grateful. I'd you to I Voya leadership contributions are deeply heartfelt to you. and XX significant Smith thank Thank Mike to years. like am past for during a we the

very your best. For wish service you family Voya the to and we and your

term growth, Our our execution we'll strategy businesses as success diverse people. We capital and our reflect as well continue focus long of our the dedication commitment and to continues execute initiatives. remain strategy clear and our confident margin when on in to on organic

look to We and to Thank our wealth, customers. the you will our actions health, and address purposeful to our expand We day. forward updating take and on advance to you progress. ability investment of our good continue strategy needs

you. today's may concludes conference. All Thank day. Have That good a disconnect. parties