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What changed in Voya Financial, Inc.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Voya Financial, Inc.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+509 added−521 removedSource: 10-K (2025-02-21) vs 10-K (2024-02-23)

Top changes in Voya Financial, Inc.'s 2024 10-K

509 paragraphs added · 521 removed · 418 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

123 edited+25 added−37 removed118 unchanged
Biggest changeProduct/ Service Model AUM/AUA (As of December 31, 2023) Key Market Segments/ Product Lines Primary Internal Revenue Code Section Core Products* Full Service Plans $185.4 billion** Small-Mid Corporate 401(k) Voya MAP Select, Voya Framework K-12 Education 403(b) Voya Custom Choice II, Voya Retirement Choice II, Voya Framework Higher Education 403(b) Voya Retirement Choice II, Voya Retirement Plus II, Voya Framework Healthcare & Other Non-Profits 403(b) Voya Retirement Choice II, Voya Retirement Plus II, Voya Framework Government (Local & State) 457 RetireFlex-SA, RetireFlex-MF, Voya Health Reserve Account, Voya Framework Recordkeeping Business $298.1 billion Mid-Large Corporate 401(k) *** Government (Local & State) 457 *** Non Qualified Business **** All Markets 409A **** Stable Value/Other $40.1 billion***** All Markets All tax codes Separate Account and Synthetic GICs * Core products actively being sold. ** Includes a small block of assets associated with legacy K-12 Education market products, primarily fixed annuities, issued by RLI.
Biggest changeProduct/ Service Model AUM/ AUA (1) Key Market Segments/ Product Lines Primary IRC Section Core Products and Services Actively Sold Full Service Plans $208.4 billion (2) Small-Mid Corporate 401(k) Voya MAP Select, Voya Framework K-12 Education 403(b) Voya Custom Choice II, Voya Retirement Choice II, Voya Framework Higher Education 403(b) Voya Retirement Choice II, Voya Retirement Plus II, Voya Framework Healthcare & Other Non-Profits 403(b) Voya Retirement Choice II, Voya Retirement Plus II, Voya Framework Government (Local & State) 457 RetireFlex-SA, RetireFlex-MF, Voya Health Reserve Account, Voya Framework Recordkeeping Business $340.3 billion Mid-Large Corporate 401(k) Administration services and investment options, including mutual funds, commingled trusts and separate accounts Government (Local & State) 457 Other Assets $5.5 billion (3) All Markets 409A Specialized administration services, consultative plan design and financing strategies, flexible funding options and tailored participant services Stable Value/Other $34.6 billion (4) All Markets All tax codes Separate Account and Synthetic GICs (1) Excludes AUM and AUA related to Wealth Management (retail) clients and intersegment eliminations.
The following chart presents a summary of the current competitive landscape where we offer our Workplace Retirement Plans and stable value solutions: Market/Product Segment Competitive Landscape Select Competitors Small-Mid Corporate Primary competitors are mutual fund companies and insurance-based providers with third-party administration and relationships Fidelity Empower K-12 Education Primary competitors are insurance-based providers that focus on school districts across the nation Equitable Corebridge Higher Education Competitors are 403(b) plan providers, asset managers and some insurance-based providers TIAA Fidelity Healthcare & Other Non-Profits Competition varies across 403(b) plan providers, asset managers and some insurance-based providers Fidelity TIAA Government Competitors are primarily insurance-based providers, but also include asset managers and 457 providers Empower Nationwide Mid-Large Corporate Recordkeeping Competitors are primarily asset managers and business consulting services firms, but also include payroll firms and insurance-based providers Fidelity Empower Stable Value Competitors are primarily select insurance companies who are also dedicated to the Stable value market, but also include certain banking institutions Prudential MetLife Wealth Management Products and Services Our Wealth Management business offers a variety of investments and protection products, along with advice and guidance delivered to individuals through field-based advisory representatives and home office phone-based representatives.
The following chart presents a summary of the current competitive landscape where we offer our Workplace Retirement Plans and stable value solutions: Market/Product Segment Competitive Landscape Select Competitors Small Corporate Primary competitors are mutual fund companies and insurance-based providers with third-party administration and relationships Empower Fidelity K-12 Education Primary competitors are insurance-based providers that focus on school districts across the nation Equitable Corebridge Higher Education Competitors are 403(b) plan providers, asset managers and some insurance-based providers TIAA Fidelity Healthcare & Other Non-Profits Competition varies across 403(b) plan providers, asset managers and some insurance-based providers Fidelity TIAA Government Competitors are primarily insurance-based providers, but also include asset managers and 457 providers Empower Nationwide Mid-Large Corporate Recordkeeping Competitors are primarily asset managers and business consulting services firms, but also include payroll firms and insurance-based providers Fidelity Empower Stable Value Competitors are primarily select insurance companies who are also dedicated to the Stable value market, but also include certain banking institutions Prudential MetLife Wealth Management Products and Services Our Wealth Management business offers a variety of investments and protection products, along with advice and guidance delivered to individuals through field-based advisory representatives and home office phone-based representatives.
NYDFS's Cybersecurity Requirements specifically provide for: (i) controls relating to the governance framework for a cybersecurity program; (ii) risk-based minimum standards for technology systems for data protection; (iii) minimum standards for cyber breach responses and business continuity and disaster recovery, including notice to the NYDFS of material events; and (iv) identification and documentation of material deficiencies, remediation plans and annual certification of regulatory compliance with the NYDFS.
The NYDFS requirements specifically provide for: (i) controls relating to the governance framework for a cybersecurity program; (ii) risk-based minimum standards for technology systems for data protection; (iii) minimum standards for cyber breach responses and business continuity and disaster recovery, including notice to the NYDFS of material events; and (iv) identification and documentation of material deficiencies, remediation plans and annual certification of regulatory compliance with the NYDFS.
In October 2023, California’s governor signed into law climate disclosure and financial reporting legislation entitled the Climate Corporate Data Accountability Act and the Climate-Related Financial Risk Act. These laws impose new reporting requirements on companies doing business in California that generate over $1 billion in gross annual revenue.
In October 2023, California’s governor signed into law climate disclosure and financial reporting legislation entitled the Climate Corporate Data Accountability Act and the Climate-Related Financial Risk Act. These laws impose new reporting requirements on companies doing business in California that generate over $1.0 billion in gross annual revenue.
Our custodial mutual fund IRA product is also sold to individuals by unaffiliated brokers and advisors. 11 Table of Contents Competition Our Wealth Management advisory services and product solutions compete for rollover and other asset consolidation opportunities against integrated financial services companies and independent broker-dealers who also offer individual retirement products, all of which currently have more market share than insurance-based providers in this space.
Our custodial mutual fund IRA product is also sold to individuals by unaffiliated brokers and advisors. 10 Table of Contents Competition Our Wealth Management advisory services and product solutions compete for rollover and other asset consolidation opportunities against integrated financial services companies and independent broker-dealers who also offer individual retirement products, all of which currently have more market share than insurance-based providers in this space.
Through ING Group, we entered the U.S. life insurance market in 1975 with the acquisition of Wisconsin National Life Insurance Company, followed with ING Group's acquisition of Midwestern United Life Insurance Company in 1976 and Security Life of Denver Insurance Company in 1977.
Through ING Group, we entered the U.S. life insurance market in 1975 with the acquisition of Wisconsin National Life Insurance Company, followed by ING Group's acquisition of Midwestern United Life Insurance Company in 1976 and Security Life of Denver Insurance Company in 1977.
These laws, regulations and directives also: • provide additional protections regarding the use and disclosure of certain information such as national identification numbers (e.g., Social Security numbers); • require notice to affected individuals, law enforcement, regulators and others if there is a breach of the security of certain personal information; • require financial institutions to implement effective programs to detect, prevent, and mitigate identity theft; • regulate the ability of financial institutions to make telemarketing calls and send e-mail, text or fax messages to consumers and customers; • require oversight of third parties that have access to, and handle, personal information; and • prescribe the permissible uses of certain personal information, including customer information and consumer report information.
These laws, regulations and directives also: • provide additional protections regarding the use and disclosure of certain information such as national identification numbers (e.g., Social Security numbers); • require notice to affected individuals, law enforcement, regulators and others if there is a breach of the security of certain personal information; • require financial institutions to implement effective programs to detect, prevent, and mitigate identity theft; 21 Table of Contents • regulate the ability of financial institutions to make telemarketing calls and send e-mail, text or fax messages to consumers and customers; • require oversight of third parties that have access to, and handle, personal information; and • prescribe the permissible uses of certain personal information, including customer information and consumer report information.
Because the selection of a benefits administration provider involves a significant commitment on the part of the employer client, sales cycles tend to be long. Our principal competitors include Alight, Businesssolver and BSwift. 13 Table of Contents In Health Account Solutions, price and administrative capabilities are among the most important competitive factors.
Because the selection of a benefits administration provider involves a significant commitment on the part of the employer client, sales cycles tend to be long. Our principal competitors include Alight, Businesssolver and BSwift. 12 Table of Contents In Health Account Solutions, price and administrative capabilities are among the most important competitive factors.
The following organizational chart presents the ownership and jurisdiction of incorporation of our principal subsidiaries as of December 31, 2023: This chart shows our principal intermediate holding company, Voya Holdings; our principal insurance operating entities, VRIAC and RLI; and Voya IM, the parent company of the various entities through which we operate our Investment Management segment.
The following organizational chart presents the ownership and jurisdiction of incorporation of our principal subsidiaries as of December 31, 2024: This chart shows our principal intermediate holding company, Voya Holdings; our principal insurance operating entities, VRIAC and RLI; and Voya IM, the parent company of the various entities through which we operate our Investment Management segment.
Pricing for our group disability products is determined by our reinsurer, FullScopeRMS, and we assume no underwriting risk in connection with such products. Stop-loss insurance pricing reflects the risk characteristics and claims experience for each employer group. The product is annually renewable and the underwriting information is reviewed annually as a result.
Pricing for our group disability products is determined by our reinsurer, FullScopeRMS, and we assume limited underwriting risk in connection with such products. Stop-loss insurance pricing reflects the risk characteristics and claims experience for each employer group. The product is annually renewable and the underwriting information is reviewed annually as a result.
In addition, the SEC has promulgated more prescriptive investor disclosure rules regarding cybersecurity incidents, as well as cybersecurity risk management and governance. Twenty-three states have adopted versions of the NAIC’s Insurance Data Security Model Law (the "Model Law"), and other states may adopt versions of the Model Law in the future.
In addition, the SEC has promulgated more prescriptive investor disclosure rules regarding cybersecurity incidents, as well as cybersecurity risk management and governance. Twenty-six states have adopted versions of the NAIC’s Insurance Data Security Model Law (the "Model Law"), and other states may adopt versions of the Model Law in the future.
We became a public company in May 2013 and ING Group completely divested its ownership of Voya Financial, Inc. common stock between 2013 and 2015. Since Voya’s IPO in 2013, we have evolved as a company through the divestiture of substantially all of our closed block variable annuity, life insurance and legacy non-retirement annuity businesses and related assets.
We became a public company in May 2013 and ING Group completely divested its ownership of Voya Financial, Inc. common stock between 2013 and 2015. We have evolved as a company through the divestiture of substantially all of our closed block variable annuity, life insurance and legacy non-retirement annuity businesses and related assets.
In accordance with statutory requirements, Voya regularly prepares and submits ORSA summary reports. Several of our insurance subsidiary domiciliary regulators have adopted the Corporate Governance Annual Filing Model Act, which requires insurers, including Voya, to make an annual confidential filing regarding their corporate governance policies. 18 Table of Contents Dividend Payment Restrictions.
In accordance with statutory requirements, Voya regularly prepares and submits ORSA summary reports. Several of our insurance subsidiary domiciliary regulators have adopted the Corporate Governance Annual Filing Model Act, which requires insurers, including Voya, to make an annual confidential filing regarding their corporate governance policies. Dividend Payment Restrictions.
Utilizing core capabilities in asset allocation, manager selection, asset/liability modeling, risk management and financial engineering, the MASS team has developed a suite of target date and target risk funds that are distributed through our 15 Table of Contents Wealth Solutions segment and to institutional and retail investors. These funds can incorporate multi-manager funds.
Utilizing core capabilities in asset allocation, manager selection, asset/liability modeling, risk management and financial engineering, the MASS team has developed a suite of target date and target risk funds that are distributed through our Wealth Solutions segment and to institutional and retail investors. These funds can incorporate multi-manager funds.
Our private asset and alternative capabilities include investment strategies such as private equity, private credit (investment grade and high yield), commercial mortgage loans, mortgage derivatives, leveraged credit and CLOs. The onboarding of former AllianzGI investment strategies has increased our product offering across thematic and fundamental equity and added multi-asset fund offerings. Fixed Income.
Our private asset and alternative capabilities include investment strategies such as private equity, private credit (investment grade and high yield), commercial mortgage loans, mortgage derivatives, leveraged credit and collateralized loan obligations ("CLOs"). The onboarding of former AllianzGI investment strategies has increased our product offering across thematic and fundamental equity and added multi-asset fund offerings. Fixed Income.
For further details, refer to the Business, Basis of Presentation and Significant Accounting Policies Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. OUR BUSINESSES Workplace Solutions Our Workplace Solutions business comprises our Wealth Solutions and Health Solutions segments.
For further details, refer to the Business, Basis of Presentation and Significant Accounting Policies Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. 6 Table of Contents OUR BUSINESSES Workplace Solutions Our Workplace Solutions business comprises our Wealth Solutions and Health Solutions segments.
These are collectively referred to as "our insurance subsidiaries" and VRIAC and RLI are referred to as our "Principal Insurance Subsidiaries" in this Annual Report on Form 10-K for purposes of discussions of U.S. insurance regulatory matters. 17 Table of Contents Our insurance subsidiaries are subject to comprehensive regulation and supervision under U.S. state and federal laws.
These are collectively referred to as "our insurance subsidiaries" and VRIAC and RLI are referred to as our "Principal Insurance Subsidiaries" in this Annual Report on Form 10-K for purposes of discussions of U.S. insurance regulatory matters. Our insurance subsidiaries are subject to comprehensive regulation and supervision under U.S. state and federal laws.
Rowe Price, Franklin Templeton, Janus Henderson and Virtus Investment Partners. Human Capital Resources Voya's human capital strategy strives to recruit the best talent to deliver exceptional service to, and meet the evolving needs of, our diverse customer base.
Rowe Price, Franklin Templeton, Janus Henderson and Virtus Investment Partners. 15 Table of Contents Human Capital Resources Voya's human capital strategy strives to recruit the best talent to deliver exceptional service to, and meet the evolving needs of, our diverse customer base.
Our insurance subsidiaries prepare statutory financial statements in accordance with accounting practices and procedures developed by regulators to monitor and regulate the solvency of insurance companies and their ability to pay current and future policyholder obligations.
Our insurance subsidiaries prepare statutory financial statements in accordance 16 Table of Contents with accounting practices and procedures developed by regulators to monitor and regulate the solvency of insurance companies and their ability to pay current and future policyholder obligations.
If anticipated amendments to these rules render them more onerous than Regulation Best Interest ("Regulation BI") as further 20 Table of Contents described in — Broker-Dealers and Investment Advisers , and existing or proposed DOL rules, or result in a conflict with Regulation BI or existing or proposed DOL rules, the impact on us could be more substantial.
If anticipated amendments to these rules render them more onerous than Regulation Best Interest ("Regulation BI") as further described in — Broker-Dealers and Investment Advisers , and existing or proposed DOL rules, or result in a conflict with Regulation BI or existing or proposed DOL rules, the impact on us could be more substantial.
As of December 31, 2023, there were $16 billion in alternatives AUM. MASS. Investment Management’s MASS platform offers a variety of investment products and strategies that combine multiple asset classes using asset allocation techniques.
As of December 31, 2024, there were $16.3 billion in alternatives AUM. MASS. Investment Management’s MASS platform offers a variety of investment products and strategies that combine multiple asset classes using asset allocation techniques.
As of December 31, 2023, Pomona Capital managed assets totaling $11 billion across a suite of limited partnerships and the Pomona Investment Fund, a registered investment fund available to accredited investors. In addition, Investment Management's alternatives platform includes privately-placed open-end and closed-end funds, the underlying strategies of which leverage our core private credit and mortgage loan investment capabilities.
As of December 31, 2024, Pomona Capital managed assets totaling $10.5 billion across a suite of limited partnerships and the Pomona Investment Fund, a registered investment fund available to accredited investors. In addition, Investment Management's alternatives platform includes privately-placed open-end and closed-end funds, the underlying strategies of which leverage our core private credit and mortgage loan investment capabilities.
As of December 31, 2023, on a consolidated basis, we had $813.5 billion in total assets under management ("AUM") and assets under administration ("AUA") and total shareholders' equity, excluding accumulated other comprehensive income/loss ("AOCI") and noncontrolling interest, of $6.6 billion.
As of December 31, 2024, on a consolidated basis, we had $893.5 billion in total assets under management ("AUM") and assets under administration ("AUA") and total shareholders' equity, excluding accumulated other comprehensive income/loss ("AOCI") and noncontrolling interest, of $6.5 billion.
The employer’s claims experience is reviewed at time of policy issuance and periodically thereafter, resulting in ongoing pricing adjustments. The key pricing and underwriting criteria are morbidity and mortality assumptions, the employer group’s demographic composition, the industry, geographic location, regional and national economic trends, plan design and prior claims experience.
The employer’s claims experience is reviewed at time of policy issuance and periodically thereafter, resulting in ongoing pricing adjustments upon expiration of rate guarantee periods. The key pricing and underwriting criteria are morbidity and mortality assumptions, the employer group’s demographic composition, the industry, geographic location, regional and national economic trends, plan design and prior claims experience.
We offer retail wealth services, including IRA accounts and advice, to individuals through the workplace and telephonically. A top provider of supplemental health and other group benefits covering approximately 7.2 million individual lives in the U.S. providing a comprehensive portfolio of stop loss, life, disability and voluntary insurance products, along with health savings and spending accounts.
We offer retail wealth services, including IRA accounts, financial planning and advice, to individuals through the workplace and to retail clients. A leading provider of supplemental health and other group benefits covering approximately 7.2 million individual lives in the U.S. providing a comprehensive portfolio of stop loss, life, disability and voluntary insurance products, along with health savings and spending accounts.
Financial Regulation Policy and Contract Reserve Sufficiency Analysis. Under the laws and regulations of their states of domicile, our insurance subsidiaries are required to conduct annual analyses of the sufficiency of their statutory reserves . Other jurisdictions in which these subsidiaries are licensed may have certain reserve requirements that differ from those of their domiciliary jurisdictions .
Under the laws and regulations of their states of domicile, our insurance subsidiaries are required to conduct annual analyses of the sufficiency of their statutory reserves. Other jurisdictions in which these subsidiaries are licensed may have certain reserve requirements that differ from those of their domiciliary jurisdictions.
Channel Distribution Activities Unaffiliated Distribution Independent Sales Agents • Over 2,600 sales agents • Primarily sell fixed annuity products from multiple vendors in the education market • Representatives focus on increasing participant enrollments and deferral amounts in existing K-12 education segment plans Brokers and Advisors • Over 12,000 wirehouse and independent regional and local brokers, specialty retirement plan advisors plus registered investment advisors • Primarily distribute to the small-mid corporate market, as well as education, healthcare and government markets • Typically present plan options from multiple vendors • Assist with enrollment and education Third Party Administrators ("TPAs") • Over 1,000 TPAs • Primarily sell products to our small-mid corporate markets and select tax-exempt market plans • Typically present plan options from multiple vendors • Typically focus on providing plan services, but may initiate and complete the sales process • Connecting point between our wholesale team and unaffiliated producers who seek references for determining which providers to recommend Affiliated Distribution Voya Financial Advisors ("VFA") • Approximately 450 VFA field and phone-based financial professionals • Sell workplace retirement plans • Support plan participants with enrollment, education, advice and guidance services • Field-based representatives focus on enrollment and contribution activities within our education, healthcare and government market workplace retirement plans • Phone-based representatives focus on education, guidance and rollover support services to workplace retirement plan participants Wholesale Field Force • Locally based wholesalers • Focus on expanding and strengthening relationships with unaffiliated distribution partners and TPAs who sell and service workplace retirement plan offerings Dedicated Voya Sales Teams • Our employee sales teams work with over 200 different pension specialty consulting firms, including national aggregators with both affiliated and unaffiliated firm-level business models that represent employers in corporate and tax-exempt markets seeking large-mega retirement plans, stable value solutions and non-qualified executive compensation offerings • Our sales teams focus on close collaboration with these firms as their continued growth expands our distribution reach through the consultant marketplace Competition Our Retirement Plans business competes with other large, well-established insurance companies, asset managers, record keepers and diversified financial institutions.
Channel Distribution Activities Unaffiliated Distribution Independent Sales Agents • Approximately 2,500 sales agents • Primarily sell fixed annuity products from multiple vendors in the education market • Focus on increasing participant enrollments and deferral amounts in existing K-12 education segment plans Brokers and Advisors • Over 14,000 wirehouse and independent regional and local brokers, specialty retirement plan advisors and registered investment advisors • Primarily distribute to the small-mid corporate market, as well as education, healthcare and government markets • Typically present plan options from multiple vendors • Assist with enrollment and education Third Party Administrators ("TPAs") • Over 1,000 TPAs • Primarily sell products to our small-mid corporate markets and select tax-exempt market plans • Primarily present plan options from multiple vendors • Typically focus on providing plan services, but may initiate and complete the sales process • Connects our wholesale team and unaffiliated producers who seek references for determining which plan vendors to recommend Affiliated Distribution Voya Financial Advisors ("VFA") • Over 450 VFA field and phone-based financial professionals • Sell workplace retirement plans • Support plan participants with enrollment, education, advice and guidance services • Field-based representatives focus on enrollment and contribution activities within our education, healthcare and government market workplace retirement plans • Phone-based representatives focus on education, guidance and rollover support services to workplace retirement plan participants in all markets Wholesale Field Force • Locally based wholesalers • Focus on expanding and strengthening relationships with unaffiliated distribution partners and TPAs who sell and service workplace retirement plan offerings Dedicated Voya Sales Teams • Our employee sales teams work with over 200 different pension specialty consulting firms (including national aggregators with both affiliated and unaffiliated firm-level business models whose continued growth expands our distribution reach) that represent employers in corporate and tax-exempt markets seeking large-mega retirement plans, stable value solutions and non-qualified executive compensation offerings 9 Table of Contents Competition Our Retirement Plans business competes with other large, well-established insurance companies, asset managers, record keepers and diversified financial institutions.
For the year ended December 31, 2023, we generated $678 million of Income (loss) from continuing operations before income taxes, and $916 million of Adjusted operating earnings before income taxes. Adjusted operating earnings before income taxes is a non-GAAP financial measure.
For the year ended December 31, 2024, we generated $799 million of Income (loss) from continuing operations before income taxes, and $916 million of Adjusted operating earnings before income taxes. Adjusted operating earnings before income taxes is a non-GAAP financial measure.
Market Employee Size Asset Range Typical Customer Solutions Corporate Markets Small Market $0-$50 million • Full service retirement plans • Retirement plan recordkeeping services • Investment options, including stable value solutions • Executive benefit plans • Health account services • Financial wellness, guidance and advice services to individuals Mid-Market 1,000-10,000 $50-$250 million Large Market >10,000 >$250 million Tax-Exempt Markets Education Market All sizes All sizes Healthcare/Other Non-Profits Market All sizes All sizes Government Market All sizes All sizes 9 Table of Contents Our Retirement Plans are distributed nationally through multiple unaffiliated channels supported by our employee wholesale field force and dedicated sales teams and through other affiliated distribution such as our broker-dealer and investment advisor, VFA.
Market Employee Size Asset Range Typical Customer Solutions Corporate Markets Small Market $0-$50 million • Full service retirement plans • Retirement plan recordkeeping services • Investment options, including stable value solutions • Executive benefit plans • Health account services • Financial wellness, guidance and advice services to individuals Mid-Market 1,000-10,000 $50-$250 million Large Market >10,000 >$250 million Tax-Exempt Markets Education Market All sizes All sizes Healthcare/Other Non-Profits Market All sizes All sizes Government Market All sizes All sizes Our Retirement Plans are distributed nationally through multiple unaffiliated channels with local support provided by our employee wholesale field force and dedicated sales teams and through other affiliated distribution such as our broker-dealer and investment advisor, Voya Financial Advisors ("VFA").
We use our Wealth Management business to deepen our long-term relationships with the approximately 7 million defined contribution plan participants on our retirement platform.
We use our Wealth Management business to deepen our long-term relationships with the defined contribution plan participants on our retirement platform.
For a summary of ordinary dividends and extraordinary distributions paid by each of our insurance subsidiaries to Voya Financial, Inc. or Voya Holdings in 2022 and 2023, and a discussion of ordinary dividend capacity for 2024, see Liquidity and Capital Resources—Restrictions on Dividends and Returns of Capital from Subsidiaries in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7. of this Annual Report on Form 10-K.
For a summary of ordinary dividends and extraordinary distributions paid by each of our insurance subsidiaries to Voya Financial, Inc. or Voya Holdings in 2022 and 2023, and a discussion of ordinary dividend capacity for 2024, see Liquidity and Capital Resources—Restrictions on Dividends and Returns of Capital from Subsidiaries in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7. of this Annual Report on Form 10-K. 17 Table of Contents Financial Regulation Policy and Contract Reserve Sufficiency Analysis.
Certain of our products and services are subject to HIPAA, which establishes privacy and security standards that limit the use and disclosure of protected health information and require the implementation of administrative, physical and technical safeguards to ensure the confidentiality, integrity, availability, and privacy of protected health information.
Certain of our products and services are subject to HIPAA, which establishes privacy and security standards that govern the use and disclosure of protected health information and requires the implementation of administrative, physical, and technical safeguards to ensure the confidentiality, integrity, availability, and privacy of such information.
Stable Value. Stable value investment options may be offered within our full service institutional plans, or as investment-only options within our recordkeeping services plans or within other vendor plans. Our product offering includes both separate account guaranteed investment contracts ("GICs") and synthetic GICs managed by either proprietary or outside investment managers.
Stable value investment options may be offered within our Full-Service institutional plans, or as investment-only options within either our recordkeeping services plans or other vendor plans. Our product offering includes both separate 7 Table of Contents account guaranteed investment contracts ("GICs"), synthetic GICs managed by either proprietary or outside investment managers, and pooled funds.
The equities platform is a multi-cap and multi-style research-driven platform comprising thematic, fundamental and quantitative equity strategies for institutional and retail investors. As of December 31, 2023, there were $91.6 billion in AUM on the equities platform covering both domestic and international markets.
The equities platform is a multi-cap and multi-style research-driven platform comprising thematic, fundamental and quantitative equity strategies for institutional and retail investors. As of December 31, 2024, there were $98.0 billion in AUM on the equities platform covering both domestic and international markets.
The following chart presents our Retirement Plans product/service models and corresponding AUM and AUA, key markets in which we compete, primary defined contribution plan Internal Revenue Code sections and core products offered for each market segment.
The following chart presents our Retirement Plans product/service models and corresponding AUM and AUA as of December 31, 2024, key markets in which we compete, primary defined contribution plan Internal Revenue Code ("IRC") sections and core products offered for each market segment.
We are monitoring further guidance regarding implementation of the new laws but do not believe that the laws will have a material impact on our business and operations. The SEC has proposed similar disclosure rules for publicly reporting companies, which rules have not yet been finalized.
We are monitoring further guidance regarding implementation of the new laws but do not believe that the laws will have a material impact on our business and operations. The SEC also finalized similar disclosure rules for publicly reporting companies.
Through Benefitfocus, we offer open-architecture, product-agnostic benefits administration and utilization solutions to employers and health plans, with approximately 12.2 million employees on the platform as of December 31, 2023. A leading international asset manager with global distribution capabilities, managing public and private fixed income, equities, multi-asset solutions and alternative strategies for institutions, financial intermediaries and individual investors.
Through Benefitfocus, Inc. ("Benefitfocus"), we offer open-architecture benefits administration and utilization solutions to employers and health plans, with approximately 11.9 million employees on the platform as of December 31, 2024. A leading international asset manager with global distribution capabilities, managing public and private fixed income, equities, multi-asset solutions and alternative strategies for institutions, financial intermediaries and individual investors.
Serving the needs of approximately 15.2 million workplace customers as of December 31, 2023, we are committed to responsible business practices centered on our culture of service to our customers, colleagues and communities.
Serving the needs of approximately 15.7 million customers as of December 31, 2024, we are committed to responsible business practices centered on our culture of service to our customers, colleagues and communities.
Our principal competitors include Sun Life, Tokio Marine HCC (formerly Houston Casualty) and Symetra. The group life market is the most mature of our market segments and most often sold alongside disability where competitive drivers for both are price, claim servicing, and additional administrative capabilities (such as leave management). Our principal competitors include MetLife, New York Life and Unum.
Our principal competitors include Sun Life, Tokio Marine HCC and Symetra. The group life market is the most mature of our market segments and most often sold alongside disability and increasingly supplemental benefits where competitive drivers are price, claim servicing, and additional administrative capabilities (such as leave management). Our principal competitors include MetLife, New York Life and Unum.
The following chart presents the key Health Solutions products we offer, along with annualized in-force premiums and fees for each product: ($ in millions) Annualized In-Force Premiums and Fees Health Solutions Products Year Ended December 31, 2023 Stop Loss $ 1,500 Group Life 636 Group Disability 268 Voluntary and Other 926 Markets and Distribution Our Health Solutions segment works primarily with national and regional benefits consultants, brokers, TPAs, enrollment firms and technology partners.
The following chart presents the key Health Solutions products we offer, along with annualized in-force premiums and fees for each product: ($ in millions) Annualized In-Force Premiums and Fees Health Solutions Products Year Ended December 31, 2024 Stop Loss $ 1,821 Group Life 685 Group Disability 293 Voluntary and Other 1,057 Markets and Distribution Our Health Solutions segment works primarily with national and regional benefits consultants, brokers, TPAs, enrollment firms and technology partners.
The key pricing and underwriting criteria are medical cost trends, morbidity assumptions, the employer group’s demographic composition, the industry, geographic location, plan design and prior claims experience. Pricing in the stop-loss insurance market is generally cyclical. Reinsurance Our Health Solutions reinsurance strategy seeks to limit our exposure to any one individual which helps limit and control risk.
The key pricing and underwriting criteria are medical cost trends, morbidity assumptions, the employer group’s demographic composition, the industry, geographic location, plan design and prior claims experience. Reinsurance Our Health Solutions reinsurance strategy seeks to limit our exposure to any one individual which helps limit and control risk.
As of January 1, 2023, Stop Loss has a reinsurance program that limits our exposure on any one specific claim to $5.0 million, with aggregate stop-loss reinsurance that limits our exposure to $5.0 million over the Policyholder's Aggregate Excess Retention.
As of January 1, 2024, 2023 and 2022, Stop Loss has or had a reinsurance program that limits our exposure on any one specific claim to $5 million, with aggregate stop-loss reinsurance that limits our exposure to $5 million over the Policyholder's Aggregate Excess Retention.
Typically, these associations levy assessments, up to prescribed limits, on member insurers based on of the member insurer’s proportionate share of the business in the relevant jurisdiction in the lines of business in which the impaired or insolvent insurer is engaged.
Typically, these associations levy assessments, which can be meaningful, up to prescribed limits, on member insurers based on 18 Table of Contents the member insurer’s proportionate share of the business in the relevant jurisdiction in the lines of business in which the impaired or insolvent insurer is engaged.
We serve individual investors through an intermediary-focused distribution platform, consisting of business development and wholesale forces that partner with banks, broker-dealers and independent financial advisers, as well as our affiliate and third-party retirement platforms.
Our strategic distribution partnership with AllianzGI significantly enhances our distribution reach globally. We serve individual investors through an intermediary-focused distribution platform, consisting of business development and wholesale forces that partner with banks, broker-dealers and independent financial advisers, as well as our affiliate and third-party retirement platforms.
Our approximately 9,000 employees (as of December 31, 2023), throughout the U.S. and in our global services hub in India, are united by our Company's purpose: fighting together for everyone's opportunity for a better financial future.
Our approximately 10,000 employees (as of December 31, 2024), throughout the U.S. and in our global services hub in India, are united by our Company's purpose: together we fight for everyone's opportunity for a better financial future.
Plan sponsors may select from a variety of investment structures and products, such as general account, separate account, mutual funds, stable value or collective investment trusts and a variety of underlying asset types (including their own employer 7 Table of Contents stock, socially responsible funds, and a private equity option within non-qualified executive plans).
Plan sponsors may select from a variety of structures for the investment component of their plan, such as general account, separate account, mutual funds, stable value or collective investment trusts and a variety of underlying asset types (including their own employer stock and a private equity option within non-qualified executive plans).
In our Workplace Solutions business, digital capabilities power our market-leading customer experience for both employers and employees alike, including our myVoyage mobile application, which provides a comprehensive guidance tool for employees to see their entire financial picture and engage with their workplace benefits and savings.
Furthermore, our digital capabilities power our market-leading customer experience for employers and employees alike, including through our MyVoyage mobile application, which provides a comprehensive guidance tool for employees to see their entire financial picture and engage with their workplace benefits and savings. Full-Service .
See Quantitative and Qualitative Disclosures About Market Risk—Risk Management in Part II, Item 7A. of this Annual Report on Form 10-K. We also use an annually renewable reinsurance transaction which lowers required capital of the Health Solutions segment.
See Quantitative and Qualitative Disclosures About Market Risk—Risk Management in Part II, Item 7A. of this Annual Report on Form 10-K. We also use several reinsurance arrangements which lower required capital of the Health Solutions segment.
SECURE 2.0 Act On December 29, 2022, the SECURE 2.0 Act ("SECURE 2.0") was signed into law. SECURE 2.0 includes numerous provisions affecting retirement plans that: expand participant coverage; facilitate the establishment of retirement plans by smaller employers, the creation of emergency savings accounts, and opportunities for participants with student debt to begin building retirement savings; and simplify plan administration.
SECURE 2.0 includes numerous provisions affecting retirement plans that: expand participant coverage; facilitate the establishment of retirement plans by smaller employers, the creation of emergency savings accounts, and opportunities for participants with student debt to begin building retirement savings; and simplify plan administration.
As of December 31, 2023, total AUM from these channels was $138.2 billion, including $15 billion of AUM managed on behalf of divested businesses. • Institutional client segment : This segment consists of individual and pooled accounts, targeting defined benefit, defined contribution recordkeeping and retirement plans, Taft Hartley plans and endowments and foundations.
As of December 31, 2024, total AUM from these channels was $149.2 billion, including $7.7 billion of AUM managed on behalf of divested businesses. • Institutional client segment : This segment consists of individual and pooled accounts, targeting defined benefit, defined contribution recordkeeping and retirement plans, multiemployer plans and endowments and foundations.
Through our retirement platform and associated retail wealth capabilities, we reach approximately seven million individual retirement plan participants as they enroll in retirement plans, choose contribution amounts, manage investment options, build wealth and improve financial wellness. As a result of our acquisition of Benefitfocus, Inc.
Through our retirement platform and associated retail wealth capabilities, we reach over seven million individual retirement plan participants as they enroll in retirement plans, choose contribution amounts, manage investment options, build wealth and improve financial wellness.
Investment Management’s fixed income platform manages assets for domestic and international institutional investors, retail investors and our general account. As of December 31, 2023, there was $214.1 billion in AUM on the fixed income platform, of which $34.7 billion were general account assets.
Investment Management’s fixed income platform manages assets for domestic and international institutional investors, retail investors and our general account. As of December 31, 2024, there was $225.1 billion in AUM on the fixed income platform, of which $33.6 billion were general account assets.
We offer our products and services through a broad group of financial intermediaries, independent producers, affiliated advisors and dedicated sales specialists throughout the U.S., and also offer investment management services to international clients through our distribution partnership with Allianz Global Investors U.S. LLC ("AllianzGI").
We offer our products and services through a broad group of financial intermediaries, independent producers, affiliated advisors and dedicated sales specialists throughout the U.S., and also offer investment management services to international clients.
The CFTC is charged with the administration of the Commodity Exchange Act and the regulations adopted under that Act. Some of our subsidiaries are registered with the CFTC as commodity pool operators and commodity trading advisors.
The CFTC is charged with the administration of the Commodity Exchange Act and the regulations adopted under that Act. Some of our subsidiaries are registered with the CFTC as commodity pool operators and commodity trading advisors. Our futures business is also regulated by the National Futures Association.
We refer to our Wealth Solutions and Health Solutions segments collectively as our Workplace Solutions business. Workplace Solutions Investment Management Wealth Solutions Health Solutions A leading provider of retirement solutions and technology for plan administration, serving approximately 38,000 U.S. employers across all defined contribution tax code sections and market segments, and approximately 7 million plan participants.
Workplace Solutions Investment Management Wealth Solutions Health Solutions A leading provider of retirement solutions and technology for plan administration, serving approximately 39,000 U.S. employers across all defined contribution tax code sections and market segments, and over 7 million workplace retirement plan participants.
Benefitfocus provides market-leading benefits enrollment and administration services to employers and plan enrollment services to health plans. Benefitfocus also provides a benefits marketplace through which employees can select and enroll in voluntary benefits offered by their employers. Our Benefitfocus platform is open-architecture and product-agnostic, enrolling and administering benefits from a variety of third-party carriers.
It also provides a benefits marketplace through which employees can select and enroll in voluntary benefits offered by their employers. Our Benefitfocus platform is open-architecture and product-agnostic, enrolling and administering benefits from a variety of third-party carriers.
As of December 31, 2023, Investment Management had 357 institutional clients, representing $148.7 billion of AUM primarily in separately managed accounts and collective investment trusts. 16 Table of Contents Competition Investment Management competes with a wide array of asset managers and institutions in the highly fragmented U.S. and global investment management industry.
As of December 31, 2024, Investment Management had 358 institutional clients, representing $156.6 billion of AUM primarily in separately managed accounts and collective investment trusts. Competition Investment Management competes with a wide array of asset managers and institutions in the highly fragmented U.S. and global investment management industry.
As of December 31, 2023, our Investment Management segment managed $259 billion for third-party institutional and individual investors (including third-party variable annuity-sourced assets), $28 billion in separate account assets for our other businesses and $36 billion in general account assets.
As of December 31, 2024, our Investment Management segment managed $277.3 billion for third-party institutional and individual investors (including third-party variable annuity-sourced assets), $28.5 billion in separate account assets for our other businesses and $33.6 billion in general account assets.
The Task Force has implemented the NAIC's annual Climate Risk Disclosure Survey and developed proposed enhancements to existing regulatory tools to address climate-related risks. 24 Table of Contents The NYDFS, in a "Circular Letter No. 15," dated September 22, 2020 and in "Guidance for New York Domestic Insurers on Managing the Financial Risks from Climate Change," dated November 15, 2021, provided that all New York insurers should start integrating the consideration of the financial risks from climate change into their governance frameworks, business strategies, risk management processes and scenario analysis, and develop their approach to climate-related financial disclosure.
The NYDFS, in a "Circular Letter No. 15," dated September 22, 2020 and in "Guidance for New York Domestic Insurers on Managing the Financial Risks from Climate Change," dated November 15, 2021, provided that all New York insurers should start integrating the consideration of the financial risks from climate change into their governance frameworks, business strategies, risk management processes and scenario analysis, and develop their approach to climate-related financial disclosure.
As of December 31, 2023, we had approximately 9,000 employees, 80% of whom are U.S.-based and 20% of whom are India-based. Our primary office locations are in New York, NY; Windsor, CT; Minneapolis, MN; Atlanta, GA; Braintree MA; Scottsdale, AZ; San Francisco, CA, San Diego, CA and Bangalore, India.
As of December 31, 2024, we had approximately 10,000 employees, 72% of whom are U.S.-based and 28% of whom are India-based. Our primary office locations are in New York, NY; Windsor, CT; Minneapolis, MN; Atlanta, GA; Braintree, MA; Scottsdale, AZ; Walnut Creek, CA; San Diego, CA; and Bengaluru, India.
("Benefitfocus"), a leading benefits administration provider, we also engage directly with over twelve million employees in the U.S. as they enroll in and use workplace benefits on our open-architecture, product-agnostic, desktop and mobile administration platforms.
We are also a leading provider of benefits administration services, through which we engage directly with approximately 11.9 million employees in the U.S. as they enroll in and use workplace benefits on our open-architecture, product-agnostic, desktop and mobile administration platforms.
In our Investment Management business, our strong culture of client service and specialized capabilities for institutional clients have established us as a leading manager for institutional mandates, especially in the insurance and pension fund markets. Our private asset capabilities, with particular strength in private fixed income and secondary private equity, distinguish us in both the institutional and intermediary markets.
In our Investment Management business, our strong culture of client service and specialized capabilities for institutional clients have established us as a leading manager for institutional mandates, especially in the insurance and pension fund markets.
The requirements provide a method for analyzing the minimum amount of adjusted capital (statutory capital and surplus plus other adjustments) appropriate for an insurance company to support its overall business operations, including the risk characteristics of the company’s assets, liabilities and certain off-balance sheet items . State insurance regulators use RBC requirements to identify possibly inadequately capitalized insurers .
The NAIC has adopted RBC requirements for life, health and property and casualty insurance companies. The requirements provide a method for analyzing the minimum amount of adjusted capital (statutory capital and surplus plus other adjustments) appropriate for an insurance company to support its overall business operations, including the risk characteristics of the company’s assets, liabilities and certain off-balance sheet items.
The regulations and legislation generally focus on companies developing a risk management framework to protect the privacy of individuals and protect them against discrimination. Anti-Money Laundering, Sanctions, and Anti-Corruption Laws The Patriot Act contains anti-money laundering and financial transparency laws applicable to broker-dealers and other financial services companies, including insurance companies.
The regulations and legislation generally focus on companies developing a risk management framework to protect the privacy of individuals and protect them against discrimination. 22 Table of Contents Anti-Money Laundering, Sanctions, and Anti-Corruption Laws The Bank Secrecy Act, as amended by the Patriot Act, contains anti-money laundering and financial transparency laws applicable to broker-dealers and other financial institutions, including, among others, insurance companies, trust banks and mutual funds.
Full-service retirement products provide plan sponsors with options that meet their needs for both administrative and investment services, which include recordkeeping and plan administration support, tailored participant communications and education programs, supportive digital capabilities for intermediaries, sponsors and plan participants (plus mobile capabilities for participants), trustee services and institutional and retail investments.
Full-service retirement products provide plan sponsors with options that meet their needs for both administrative and investment services, which include recordkeeping and plan administration support, trustee services and institutional and retail investments.
We also provide leave administration services. We partner with 12 Table of Contents FullScopeRMS (formerly DisabilityRMS), a third-party insurer, to provide leave management and reinsure 100% of our group disability. Voluntary Benefits. Our voluntary benefits business involves the sale of whole life insurance, critical illness, accident and hospital indemnity insurance, while also servicing universal life insurance policies.
We partner with FullScopeRMS, a third-party insurer, to provide leave management and reinsure 100% of our group disability. Voluntary Benefits. Our voluntary benefits business involves the sale of whole life insurance, term life insurance, critical illness, accident and hospital indemnity insurance, while also servicing universal life insurance policies. This product lineup is mostly employee-paid through payroll deduction. Benefits Administration .
Our Retirement Plans business serves corporations of all sizes, public and private school systems, higher education institutions, hospitals and healthcare facilities, not-for-profit organizations and state and local governments. Our Retirement Plans business is diversified across economic sectors, market segments and plan sizes, and provides services to U.S. employers covering approximately 7 million plan participants as of December 31, 2023.
Retirement Plans Products and Services Our Retirement Plans business provides services to U.S. employers covering over 7 million workplace retirement plan participants as of December 31, 2024 . Our diverse client base includes corporations of all sizes, public and private school systems, higher education institutions, hospitals and healthcare facilities, not-for-profit organizations and state and local governments.
A broad selection of funds is available for our products in all asset categories from over 200 fund families, including the Voya family of mutual funds managed by Voya IM. An open architecture investment platform (which offers most funds for which trades are cleared through the National Securities Clearing Corporation) is also available in certain products for larger full-service plans.
A broad selection of funds is available for our products in all asset categories from over 250 fund families, including the Voya family of mutual funds managed by Voya IM. An open architecture investment platform is also available in certain products for larger plans. Recordkeeping .
This product line involves the sale of health savings accounts, flexible spending accounts and health reimbursement arrangements, commuter and dependent care benefits, COBRA administration and direct billing services. Financial Wellness and Decision Support .
This product line involves the sale of HSA, FSA, HRA, commuter and dependent care benefits, COBRA administration and direct billing services. Financial Wellness and Decision Support .
The AllianzGI Transaction has increased Investment Management's international scale and distribution and provided us with new investment strategies that help us meet the needs of a larger and more global client base.
LLC ("AllianzGI") , pursuant to which we acquired assets and investment teams comprising specified strategies previously managed by AllianzGI. The AllianzGI Transaction has increased Investment Management's international scale and distribution and provided us with new investment strategies that help us meet the needs of a larger and more global client base.
The IRA products include certain tax-qualified mutual fund custodial products that were retained from the Annuities business we divested in 2018, which are also sold by our employee wholesale team that works directly with affiliated and unaffiliated brokers and advisers who sell individual retirement accounts to individuals or small businesses.
Our current investment solutions include mutual fund custodial IRA products, managed accounts and advisory programs, and brokerage accounts. The IRA products include certain tax-qualified mutual fund custodial products, which are also sold by our employee wholesale team that works directly with affiliated and unaffiliated brokers and advisers who sell to individuals or small businesses.
Internal practices, procedures and controls are required to meet the obligations of financial institutions to identify their customers, watch for and report suspicious transactions, respond to requests for information by regulatory authorities and law enforcement agencies and share information with other financial institutions.
Anti-money laundering laws outside of the U.S. contain provisions that may be different, conflicting or more rigorous. Internal practices, procedures and controls are required to meet the obligations of financial institutions to identify their customers, watch for and report suspicious transactions, respond to requests for information by regulatory authorities and law enforcement agencies and share information with other financial institutions.
For plans in the full service tax-exempt market, we offer a variety of products including: • Voya Retirement Choice II and RetireFlex-MF , mutual fund products providing flexible funding vehicles and are designed to provide a diversified menu of mutual funds in addition to a guaranteed option (available through a group fixed annuity contract or stable value product). • Voya Retirement Plus II and Voya Custom Choice II , registered group annuity products featuring variable investment options held in a variable annuity separate account and a fixed investment option held in the general account. • RetireFlex-SA , an unregistered group annuity product featuring variable investment options held in a variable annuity separate account and a guaranteed option (available through a group fixed annuity contract or stable value product).
A variety of other products offered in the Full-Service tax-exempt market include the following: • Voya Retirement Choice II and RetireFlex-MF , mutual fund products providing flexible funding vehicles and are designed to provide a diversified menu of mutual funds in addition to a guaranteed option (available through a group fixed annuity contract or stable value product). • Voya Retirement Plus II and Voya Custom Choice II , registered group annuity products featuring variable investment options held in a variable annuity separate account and a fixed investment option held in the general account. • RetireFlex-SA , an unregistered group annuity product featuring variable investment options held in a variable annuity separate account and a guaranteed option (available through a group fixed annuity contract or stable value product). 8 Table of Contents Additional products and services are available through our Voya Cares® program, which serves aging people and people with special needs and disabilities, as well as their families and caregivers.
We also provide decision support tools through the Benefitfocus enrollment platform and through our MyVoyage mobile application, which provides a comprehensive guidance tool for employees to see their entire financial picture and engage with their workplace benefits and savings.
In addition, we also provide decision support tools through the Benefitfocus enrollment platform and through our MyVoyage mobile application, which provides a comprehensive guidance tool for employees to see their entire financial picture including their workplace benefits and savings. We support employers by taking on the administrative burden of benefits enrollment and administration, leave management, COBRA administration, and other obligations.
Approximately 85.5% of our U.S.-based workforce is fully remote, approximately 13.5% is hybrid (working in an office location for part of their time) and approximately 1% are office-essential workers.
Approximately 85.4% of our U.S.-based workforce is fully remote, approximately 13.8% is hybrid (working in an office location for part of their time) and approximately 1% are office-essential workers. Talent Management & Development Voya is committed to developing employees through robust learning programs.
On November 1, 2023, the NYDFS adopted amendments to its cybersecurity regulations increasing mandatory controls and adding further cybersecurity requirements for larger companies. 22 Table of Contents Privacy Laws and Regulation We are subject to laws, regulations and directives that require financial institutions and other businesses to protect the security and confidentiality of personal information, including health-related and customer information, and to notify their customers and other individuals of their policies and practices relating to the collection, use, and disclosure of customer information.
Privacy Laws and Regulation We are subject to laws, regulations and directives that require financial institutions and other businesses to protect the security and confidentiality of personal information, including health-related and customer information, and to notify their customers and other individuals of their policies and practices relating to the collection, use, and disclosure of customer information.
GDPR set out a number of requirements that must be complied with when handling the personal data of such EU and U.K.-based data subjects respectively including: the obligation to appoint data protection officers in certain circumstances; new rights for individuals to be "forgotten" and rights to data portability; the principle of accountability and the obligation to make public notification of significant data breaches. 23 Table of Contents The Privacy Protections Working Group, formed by the NAIC in 2019 to review state insurance privacy protections regarding the collection, use and disclosure of information gathered in connection with insurance transactions, is currently drafting a new Privacy Protections Model Act.
GDPR set out a number of requirements that must be complied with when handling the personal data of such EU and U.K.-based data subjects respectively including: the obligation to appoint data protection officers in certain circumstances; new rights for individuals to be "forgotten" and rights to data portability; the principle of accountability and the obligation to make public notification of significant data breaches.
Our full-service business also competes on the breadth of our service and investment offerings, technical and regulatory expertise, industry experience, local enrollment and education support, investment flexibility and our ability to offer industry tailored product features to meet the financial wellness and retirement income needs of our clients.
Our Full-Service business also competes on the breadth of our service and investment offerings, technical and regulatory expertise, reputation and industry experience, local enrollment and education support, and investment flexibility.
A ratio falling outside the prescribed "usual range" is not considered a failing result. Rather, unusual values are viewed as part of the regulatory early monitoring system.
A ratio falling outside the prescribed "usual range" is not considered a failing result. Rather, unusual values are viewed as part of the regulatory early monitoring system. In many cases, it is not unusual for financially sound companies to have one or more ratios that fall outside the usual range.
Our Investment Management segment also earns market-based fees from the management of the general account and mutual fund assets supporting the Retirement Plans business and certain Wealth Management products and advisory solutions . Retirement Plans Products and Services Full-Service .
Wealth Solutions generated Adjusted operating earnings before income taxes of $820 million for the year ended December 31, 2024. Our Investment Management segment also earns market-based fees from the management of the general account and mutual fund assets supporting the Retirement Plans business and certain Wealth Management products and advisory solutions .

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWe are exposed to various risks arising from natural disasters, including hurricanes, climate change, floods, earthquakes, tornadoes and pandemic disease, as well as man-made disasters and core infrastructure failures, including acts of terrorism, military actions, power grid and telephone/internet infrastructure failures, which may adversely affect AUM, results of operations and financial condition by causing, among other things: • Losses in our investment portfolio due to significant volatility in global financial markets or the failure of counterparties to perform; • Declines in fee revenues from lower AUM/AUA and plan participant counts, as a result of increased unemployment and furloughs, lower asset prices, suspensions or reductions in participant plan deposits or employer matching contributions, and an increase in plan loans and withdrawals; • Decreased spread-based revenues due to lower interest rates; • A decline in fund management carried interests and performance fees in our Investment Management business; • Increased impairments or credit rating downgrades within our general account portfolio, which could consume our excess capital, reduce the dividend capacity of our insurance subsidiaries, trigger requirements for additional statutory capital within our insurance subsidiaries; • Extraordinary assessments on our insurance subsidiaries, due to requirements in jurisdictions where those subsidiaries are admitted to transact business requiring life insurers to participate in guaranty associations, which raise funds to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers; 38 Table of Contents • Reductions in the carrying value of our deferred tax assets as a result of a need to establish an additional valuation allowance against such assets, which would decrease U.S.
Biggest changeWe are exposed to various risks arising from natural disasters, including hurricanes, climate change, floods, earthquakes, tornadoes and pandemic disease, as well as man-made disasters and core infrastructure failures, including acts of terrorism, military actions, power grid and telephone/internet infrastructure failures, which may adversely affect AUM, results of operations and financial condition by causing, among other things: • losses in our investment portfolio due to significant volatility in global financial markets or the failure of counterparties to perform, or adverse impacts to asset prices in affected sectors or geographies; • disruption of our normal business operations, including the ability to interact with existing or potential clients, due to catastrophic property damage, loss of life, or disruption of public and private infrastructure, including communications and financial services, or mandatory shutdowns and stay-at-home orders; • in some cases, sustained disruption of economic activity, such as what materialized in connection with the COVID-19 pandemic, which may have significant effects on our revenues, business performance, capital position, liquidity, and financial condition.
If the ability of our insurance or non-insurance subsidiaries to pay dividends or make other distributions or payments to Voya Financial, Inc. and Voya Holdings is materially restricted by regulatory requirements, other cash needs, bankruptcy or insolvency, or our need to maintain the financial strength ratings of our insurance subsidiaries, or is limited due to results of operations or other factors, we may be required to raise cash through the incurrence of debt, the issuance of equity or the sale of assets.
If the ability of our insurance or non-insurance subsidiaries to pay dividends or make other distributions or payments to Voya Financial, Inc. and Voya Holdings is materially restricted by regulatory requirements, other cash needs, bankruptcy or insolvency, or by our need to maintain the financial strength ratings of our insurance subsidiaries, or is limited due to results of operations or other factors, we may be required to raise cash through the incurrence of debt, the issuance of equity or the sale of assets.
Our use of additional or alternative third-party software would require us to enter into license agreements with third parties which could result in increased costs, business disruptions and other complications. Our international operations may result in increased risks to our business.
Our use of additional or alternative third-party software would require us to enter into additional license agreements with third parties which could result in increased costs, business disruptions and other complications. Our international operations may result in increased risks to our business.
The following is a summary of the material factors that could adversely affect our business, sales, revenues, AUM, reputation, results of operations, liquidity, profitability or financial condition. • Global Market Risks ◦ Conditions in the global capital markets, the economy and geopolitical events. ◦ The level of interest rates and in particular a period of rapidly increasing interest rates or a recurrence of a low interest rate environment. ◦ Unfavorable developments in interest rates, credit spreads and policyholder behavior related to our stable value products. ◦ The adequacy of our risk management policies and procedures, including hedging programs. • Liquidity, Credit and Investment Risks ◦ A downgrade or potential downgrade in our financial strength or credit ratings. ◦ The inability of counterparties to meet their financial obligations. ◦ Requirements to post collateral or make payments related to changes in market value of specified assets. ◦ Risks associated with our participation in securities lending and repurchase programs. ◦ Risks associated with our institutional funding with the Federal Home Loan Bank system. ◦ Our dependence on our subsidiaries' ability to transfer funds to us to meet our obligations. ◦ Risk of a decrease in the value of our invested assets and the investment returns credited to customers. ◦ The relative illiquidity of some of our investments as well as significant market valuation fluctuations of certain asset classes. ◦ Inherent uncertainty in methodologies, estimations and assumptions used to value our investments and determine allowances and impairments on such investments. • Strategic and Business Risks ◦ Our ability to increase or maintain our market share in highly competitive markets. 25 Table of Contents ◦ Our ability to achieve the desired results from recent acquisitions. ◦ The complexity of our products and services and our reliance on intermediaries. ◦ A deterioration in our AUM or the alteration or termination of our asset management agreements or our failure to realize certain performance hurdles under these agreements. ◦ Differences between actual policy experience and pricing, reserving or actuarial assumptions. ◦ Credit risk associated with reinsurance, as well as its general availability, affordability or adequacy. ◦ Our ability to effectively apply technology or to adapt to disruptive technology or innovations. ◦ Our ability to maintain client satisfaction with our services. • Operational Risks ◦ Interruption or other operational failures in telecommunication, cybersecurity, information technology and other operational systems. ◦ Our ability to protect the privacy and confidentiality of customer information. ◦ Our ability to attract and retain qualified employees. ◦ The occurrence of natural or man-made disasters. ◦ Potential difficulties arising from outsourcing relationships. ◦ Our dependence on third party software licenses. ◦ Risks related to our international operations. • Tax, Regulatory and Legal Risks ◦ Potential requirements to reduce the carrying value of our deferred income tax assets or establish an additional valuation allowance against them. ◦ Potential limitations on our ability to use certain beneficial deferred tax assets. ◦ Changes in tax laws and interpretations of existing tax law. ◦ Potential failure to comply with regulations governing our business and our products or those of our affiliates. ◦ Potential failure to comply with regulations governing our insurance businesses in particular, enforcement actions and regulatory investigations. ◦ A decrease in the RBC ratio of our insurance subsidiaries. ◦ Litigation or potential litigation. ◦ Changes in accounting standards.
The following is a summary of the material factors that could adversely affect our business, sales, revenues, AUM, reputation, results of operations, liquidity, profitability or financial condition. • Global Market Risks ◦ Conditions in the global capital markets, the economy and geopolitical events. ◦ The level of interest rates and in particular a period of rapidly increasing interest rates or a recurrence of a low interest rate environment. ◦ Unfavorable developments in interest rates, credit spreads and policyholder behavior related to our stable value products. ◦ Potential inadequacy of our risk management policies and procedures, including hedging programs. • Liquidity, Credit and Investment Risks ◦ A downgrade or potential downgrade in our financial strength or credit ratings. ◦ The inability of counterparties to meet their financial obligations. ◦ Requirements to post collateral or make payments related to changes in market value of specified assets. ◦ Risks associated with our participation in securities lending and repurchase programs. ◦ Risks associated with our institutional funding with the Federal Home Loan Bank system. ◦ Our dependence on our subsidiaries' ability to transfer funds to us to meet our obligations. ◦ Risk of a decrease in the value of our invested assets and the investment returns credited to customers. ◦ The relative illiquidity of some of our investments as well as significant market valuation fluctuations of certain asset classes. ◦ Inherent uncertainty in methodologies, estimations and assumptions used to value our investments and determine allowances and impairments on such investments. • Strategic and Business Risks ◦ Our ability to increase or maintain our market share in highly competitive markets. ◦ Our ability to achieve the desired results from recent acquisitions. ◦ The complexity of our products and services and our reliance on intermediaries. ◦ A deterioration in our AUM or the alteration or termination of our asset management agreements or our failure to realize certain performance hurdles under these agreements. ◦ Differences between actual policy experience and pricing, reserving or actuarial assumptions. ◦ Credit risk associated with reinsurance, as well as its general availability, affordability or adequacy. ◦ Our ability to effectively apply technology or to adapt to disruptive technology or innovations. ◦ Our ability to maintain client satisfaction with our services. • Operational Risks ◦ Interruption or other operational failures in telecommunication, cybersecurity, information technology and other operational systems. ◦ Our ability to protect the privacy and confidentiality of customer information. ◦ Our ability to attract and retain qualified employees. ◦ The occurrence of natural or man-made disasters. ◦ Potential difficulties arising from outsourcing relationships. ◦ Our dependence on third party software licenses. 24 Table of Contents ◦ Risks related to our international operations. • Tax, Regulatory and Legal Risks ◦ Potential requirements to reduce the carrying value of our deferred income tax assets or establish an additional valuation allowance against them. ◦ Potential limitations on our ability to use certain beneficial deferred tax assets. ◦ Changes in tax laws and interpretations of existing tax law. ◦ Potential failure to comply with regulations governing our business and our products or those of our affiliates. ◦ Potential failure to comply with regulations governing our insurance businesses in particular, enforcement actions and regulatory investigations. ◦ A decrease in the RBC ratio of our insurance subsidiaries. ◦ Litigation or potential litigation. ◦ Changes in accounting standards.
Factors including, geopolitics (including war and terrorism) and political uncertainty, potential government shutdowns, the ability of governments to respond in the event of national emergencies, government fiscal and tax policy, interest rates, credit spreads, equity prices, derivative prices and availability, real estate markets, exchange rates, the volatility and strength of the capital markets, changes in reference rates and the lack of historical performance information for such rates, and deflation and inflation, all affect our financial condition.
Factors including, geopolitics (including war and terrorism), political uncertainty and political instability, potential government shutdowns, the ability of governments to respond in the event of national emergencies, government fiscal and tax policy, interest rates, credit spreads, equity prices, derivative prices and availability, real estate markets, exchange rates, the volatility and strength of the capital markets, changes in reference rates and the lack of historical performance information for such rates, and deflation and inflation, all affect our financial condition.
In connection with the Individual Life Transaction, we have entered into large reinsurance agreements with Security Life of Denver ("SLD"), our former insurance subsidiary, with respect to the portion of the Individual Life and other legacy businesses that have been written by our insurance subsidiaries domiciled in Minnesota, Connecticut and New York.
In connection with the Individual Life Transaction, we have entered into large reinsurance agreements with Security Life of Denver ("SLD"), our former insurance subsidiary, with respect to the portion of our former individual life segment and other legacy businesses that have been written by our insurance subsidiaries domiciled in Minnesota, Connecticut and New York.
Ratings are not a recommendation to buy, sell or hold any security, and each agency's rating should be evaluated independently of any other agency's rating. The inability of counterparties to meet their financial obligations could have an adverse effect on our results of operations.
Ratings are not a recommendation to buy, sell or hold any security or other financial product, and each agency's rating should be evaluated independently of any other agency's rating. The inability of counterparties to meet their financial obligations could have an adverse effect on our results of operations.
We cede life insurance policies and annuity contracts or certain risks related to life insurance policies and annuity contracts to other insurance companies using various forms of reinsurance, including coinsurance, modified coinsurance, coinsurance with funds withheld, monthly renewable term and yearly renewable term.
We cede life and health insurance policies and annuity contracts or certain risks related to life and health insurance policies and annuity contracts to other insurance companies using various forms of reinsurance, including coinsurance, modified coinsurance, coinsurance with funds withheld, monthly renewable term and yearly renewable term.
Item 1A. Risk Factors We face a variety of risks that are substantial and inherent in our business, including market, liquidity, credit, operational, legal, regulatory and reputational risks.
Item 1A. Risk Factors We face a variety of risks that are substantial and inherent in our business, including market, liquidity, credit, strategic, operational, legal, regulatory and reputational risks.
Any attack or other breach of the security of our information technology systems that compromises personal information, or that otherwise results in unauthorized disclosure or use of personal information, could damage our reputation in the marketplace, deter purchases of our products, subject us to heightened regulatory scrutiny, sanctions, significant civil and criminal liability or other adverse legal consequences and require us to incur significant technical, legal and other expenses.
Any attack or other breach of the security of our information technology systems that compromises personal information, or that otherwise results in unauthorized disclosure or use of personal information, could damage our reputation in the marketplace, deter purchases of our products, subject us to heightened regulatory scrutiny, sanctions, significant civil and criminal liability or other adverse legal consequences and require us to incur significant technological, legal and other expenses.
Past or future misconduct by our employees, agents, intermediaries, representatives of our broker-dealer subsidiaries or employees of our vendors could result in violations of law by us or our subsidiaries, regulatory sanctions or serious reputational or financial harm, and the precautions we take to prevent and detect this activity may not be effective in all cases.
Past or future misconduct by our employees, agents, intermediaries, representatives of our broker-dealer and investment adviser subsidiaries or employees of our vendors could result in violations of law by us or our subsidiaries, regulatory sanctions or serious reputational or financial harm, and the precautions we take to prevent and detect this activity may not be effective in all cases.
We anticipate that we will continue to rely on such third-party software and development tools from third parties in the future. Although we believe that there are commercially reasonable alternatives to much of the third-party software we currently license, this may not always be the case, or it may be difficult or costly to replace.
We anticipate that we will continue to rely on such third-party software and development tools from third parties in the future. Although we believe that there are commercially reasonable alternatives to much of the third-party software we currently license, this may not always be the case, or it may be difficult, costly, or time-consuming to replace.
Should any of the acquisitions ultimately prove to be less beneficial than we anticipated, or should the integration costs, transition services or other developments resulting from the acquisitions create unanticipated difficulties for our business, our results of operations and financial condition could be adversely affected, including impairment to the value of goodwill and intangible assets which has materially increased as a result of our most recent acquisitions.
Should any of the acquisitions ultimately prove to be less beneficial than we anticipated, or should the integration costs, transition services or other developments resulting from the 31 Table of Contents acquisitions create unanticipated difficulties for our business, our results of operations and financial condition could be adversely affected, including impairment to the value of goodwill and intangible assets which has materially increased as a result of our most recent acquisitions.
If we are required to return 29 Table of Contents significant amounts of cash collateral on short notice and we are forced to sell securities to meet the return obligation, we may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than we otherwise would have been able to realize under normal market conditions, or both.
If we are required to return significant amounts of cash collateral on short notice and we are forced to sell securities to meet the return obligation, we may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than we otherwise would have been able to realize under normal market conditions, or both.
As data privacy and protection laws continue to proliferate, including due to increased focus on data use by artificial intelligence or other innovative technology, we may incur significant technological, administrative and other expenses and face other difficulties in complying with an increasing number of legal obligations with respect to data privacy and security, or with balancing competing requirements that may be inconsistent across jurisdictions.
As data privacy and protection laws continue to proliferate, including due to increased focus on data use by artificial intelligence or other innovative technology, we may incur significant technological, administrative and other 36 Table of Contents expenses and face other difficulties in complying with an increasing number of legal obligations with respect to data privacy and security, or with balancing competing requirements that may be inconsistent across jurisdictions.
Loss of reserve credit by an insurance subsidiary would require it to establish additional statutory reserves and would result in a decrease in the level of its capital, which could have a material adverse effect on our profitability, results of operations and financial condition. Our reinsurance recoverable balances are periodically assessed for uncollectability.
Loss of reserve credit by an insurance subsidiary would require it to establish additional statutory reserves and would result in a decrease in the level of its capital, which could have a material adverse effect on our profitability, results of operations and financial condition. 34 Table of Contents Our reinsurance recoverable balances are periodically assessed for uncollectability.
There can be no 32 Table of Contents assurance that we will continue to effectively compete within the industry or that competition will not have a material adverse impact on our business, results of operations and financial condition. Recent acquisitions, including managing the transition on the terms or timing currently contemplated, could have negative impacts on us.
There can be no assurance that we will continue to effectively compete within the industry or that competition will not have a material adverse impact on our business, results of operations and financial condition. Recent acquisitions, including managing the transition on the terms or timing currently contemplated, could have negative impacts on us.
See risk factor Interruption or other operational failures in telecommunication, cybersecurity, information technology and other operational systems, including as a result of human and process error or a failure to maintain the security, integrity, confidentiality, or privacy of such systems, could harm our business . We depend on licenses of third-party software to provide our services.
See risk factor Interruption or other operational failures in telecommunication, 37 Table of Contents cybersecurity, information technology and other operational systems, including as a result of human and process error or a failure to maintain the security, integrity, confidentiality, or privacy of such systems, could harm our business . We depend on licenses of third-party software to provide our services.
We need liquidity to pay our operating expenses, interest on our debt and dividends on our capital stock, to carry out any share repurchases that we may undertake, to maintain our securities lending activities, to collateralize certain obligations with respect to our indebtedness, to fund policyholder withdrawals and other benefits, and to replace certain maturing liabilities.
We need liquidity to pay our operating expenses, interest on our debt and dividends on our capital stock, to carry out any share repurchases that we may undertake, to maintain our securities lending activities, to collateralize certain obligations with respect to our indebtedness, to fund policyholder withdrawals and other benefits, to complete business acquisitions and to replace certain maturing liabilities.
See risk factor A decrease in the RBC ratio (as a result of a reduction in statutory surplus and/or increase in RBC requirements) of our insurance subsidiaries could result in increased scrutiny by insurance regulators and rating agencies and have a material adverse effect on our business, results of operations and financial condition .
See risk factor A decrease in the RBC ratio (as a result of a reduction in statutory surplus and/or increase in RBC requirements) of our insurance subsidiaries could result in increased scrutiny by insurance 29 Table of Contents regulators and rating agencies and have a material adverse effect on our business, results of operations and financial condition .
We derive operating revenues from providing investment management and related services. Our investment management related revenues are derived primarily from fees based on a percentage of the value of AUM. Any decrease in the value or 33 Table of Contents amount of our AUM because of market volatility, client withdrawals or other factors negatively impacts our revenues and income.
We derive operating revenues from providing investment management and related services. Our investment management related revenues are derived primarily from fees based on a percentage of the value of AUM. Any decrease in the value or amount of our AUM because of market volatility, client withdrawals or other factors negatively impacts our revenues and income.
In addition, rating agencies may implement changes to their capital models that may favorably or unfavorably affect our ratings. We cannot assure you that these ratings will remain in effect for any given period of time or that a rating will not be lowered, 28 Table of Contents suspended or withdrawn.
In addition, rating agencies may implement changes to their capital models that may favorably or unfavorably affect our ratings. We cannot assure you that these ratings will remain in effect for any given period of time or that a rating will not be lowered, suspended or withdrawn.
Alternatively, we may terminate one or more distribution agreements due to, for example, a loss of confidence in, or a change in control of, one of the distributors, which could reduce sales.
Alternatively, we may terminate one or more distribution agreements due to, for example, a loss of confidence in, or a change in control of, one of such distributors, which could reduce sales.
A sustained increase in the inflation rate in our principal markets may also negatively affect our business, financial condition and results of operations. A failure to accurately anticipate higher inflation and factor it into our product pricing assumptions may result in mispricing of our products, which could materially and adversely impact our results of operations.
A sustained increase in the inflation rate in our principal markets may negatively affect our business. A failure to accurately anticipate higher inflation and factor it into our product pricing assumptions may result in mispricing of our products, which could materially and adversely impact our results of operations.
Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), operate as anti-abuse rules, the general purpose of which is to prevent trafficking in tax losses and credits, but which can apply without regard to whether a "loss trafficking" transaction occurs or is intended.
Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), operate as anti-abuse rules, the general purpose of which is to prevent trafficking in tax losses and credits, but which can apply without regard 38 Table of Contents to whether a "loss trafficking" transaction occurs or is intended.
If we fail to address, or appear to fail to address, appropriately any of these matters, our reputation could be harmed and we could be subject to 41 Table of Contents additional legal risk, which could increase the size and number of claims and damages asserted against us or subject us to enforcement actions, fines and penalties.
If we fail to address, or appear to fail to address, appropriately any of these matters, our reputation could be harmed and we could be subject to additional legal risk, which could increase the size and number of claims and damages asserted against us or subject us to enforcement actions, fines and penalties.
If these steps are unsuccessful, or if unaffiliated non-accredited 35 Table of Contents reinsurers that have reinsured business from our insurance subsidiaries are unsuccessful in obtaining sources of qualifying reinsurance collateral, our insurance subsidiaries might not be able to obtain full statutory reserve credit.
If these steps are unsuccessful, or if unaffiliated non-accredited reinsurers that have reinsured business from our insurance subsidiaries are unsuccessful in obtaining sources of qualifying reinsurance collateral, our insurance subsidiaries might not be able to obtain full statutory reserve credit.
Press coverage and other public statements that assert some form of wrongdoing, regardless of the factual basis for the assertions being made, can lead to increased inquiries or investigation by regulators, legislators or law enforcement officials or in lawsuits.
Press coverage, social media commentary, and other public statements that assert some form of wrongdoing, regardless of the factual basis for the assertions being made, can lead to increased inquiries or investigation by regulators, legislators or law enforcement officials or in lawsuits.
Our international operations, including our operations in India, expose us to a variety of political, legal, operational and other risks, including: changes in laws, their application or interpretation; increased or conflicting regulatory restrictions; political 39 Table of Contents instability; non-compliance with anti-corruption and anti-bribery laws; economic or trade sanctions; dividend limitations; price controls; currency exchange controls or other transfer or exchange restrictions; difficulty in enforcing contracts; nationalization or expropriation of assets; imposition of limits on foreign ownership of local companies; and public or political criticism of our business and operations.
Our international operations, including our operations in India, expose us to a variety of political, legal, operational and other risks, including: changes in laws, their application or interpretation; increased or conflicting regulatory restrictions; political instability; non-compliance with anti-corruption and anti-bribery laws; economic or trade sanctions; restrictive tax regulations; dividend limitations; price controls; currency exchange controls or other transfer or exchange restrictions; difficulty in enforcing contracts; nationalization or expropriation of assets; imposition of limits on foreign ownership of local companies; and public or political criticism of our business and operations.
Our financial results are subject to risks around actuarial assumptions, including those related to mortality and the future behavior of policyholders, such as lapse rates and future claims payment patterns. These assumptions, which we use to determine our liabilities for future policy benefits, may not reflect future experience.
Our financial results are subject to risks around actuarial assumptions, including those related to mortality, morbidity and the future behavior of policyholders, such as lapse rates and future claims payment patterns. These assumptions, which we use to determine our liabilities for future policy benefits and claims incurred but not reported, may not reflect future experience.
If we experience difficulties arising from outsourcing relationships, our ability to conduct business may be compromised, which may adversely affect our business and results of operations. As we continue to focus on reducing the expense necessary to support our operations, we have increasingly used outsourcing strategies for a significant portion of our information technology and business functions.
If we experience difficulties arising from outsourcing relationships, our ability to conduct business may be compromised, which may adversely affect our business and results of operations. As we continue to focus on reducing the expense necessary to support our operations, we use outsourcing strategies for a significant portion of our information technology and business functions.
Furthermore, with respect to any such payments, we may have unsecured risk to the counterparty as these amounts may not be required to be segregated from the counterparty's other funds, may not be held in a third-party custodial account and may not be required to be paid to us by the counterparty until the termination of the transaction.
Furthermore, with respect to any such payments or collateral, we may have unsecured risk to the counterparty as these amounts may not be required to be segregated from the counterparty's other funds, may not be held in a third-party custodial account and may not be required to be returned to us by the counterparty until the termination of the transaction.
For example, U.S. federal income tax law imposes requirements relating to insurance and annuity product design, administration and investments that are conditions for beneficial tax treatment of such products under the Internal Revenue Code. Additionally, state and federal securities and insurance laws impose requirements relating to investment, insurance and annuity product design, offering and distribution and administration.
U.S. federal income tax law imposes requirements relating to insurance and annuity product design, administration and investments that are conditions for beneficial tax treatment of such products under the Internal Revenue Code. Additionally, state and federal securities and insurance laws impose requirements relating to investment, insurance and annuity product 39 Table of Contents design, offering, distribution and administration.
We cannot assure you that past or present investment performance in the investment products we manage will be indicative of future performance. Any poor investment performance may negatively impact our revenues and income.
We cannot assure you that past 32 Table of Contents or present investment performance in the investment products we manage will be indicative of future performance. Any poor investment performance may negatively impact our revenues and income.
Failure to manage or administer product features in accordance with contract provisions or applicable law, or to meet any of these complex tax, securities, or insurance requirements, could subject us to administrative penalties imposed by a particular governmental or self-regulatory authority, unanticipated costs associated with remedying such failure or other claims, harm to our reputation, interrupt our operations or adversely impact profitability.
Failure to manage or administer product features in accordance with contract provisions or applicable law, or to meet any of these complex tax, securities, or insurance requirements, could subject us to administrative penalties imposed by a particular governmental or self-regulatory authority, unanticipated costs associated with remedying such failure or other claims, or harm to our reputation.
As further described under –Organizational History and Structure–Recent Acquisitions in Part I, Item 1. of this Annual Report on Form 10-K, we completed several acquisitions in 2022 and 2023.
As further described under –Organizational History and Structure–Recent Acquisitions in Part I, Item 1. of this Annual Report on Form 10-K, we completed several acquisitions in 2023 and early 2025.
A decline in RBC ratios, whether or not it results in a failure to meet applicable RBC requirements, may still limit the ability of an insurance subsidiary to make dividends 42 Table of Contents or distributions to us, could result in a loss of customers or new business, and could be a factor in causing ratings agencies to downgrade the insurer’s financial strength ratings, each of which could have a material adverse effect on our business, results of operations and financial condition.
A decline in RBC ratios, whether or not it results in a failure to meet applicable RBC requirements, may still limit the ability of an insurance subsidiary to make dividends or distributions to Voya Financial, Inc., could result in a loss of customers or new business, and could be a factor in causing ratings agencies to downgrade the insurer’s financial strength ratings, each of which could have a material adverse effect on our business, results of operations and financial condition.
Further, we share ownership of VIM Holdings with Allianz, which holds a 24% equity interest in VIM Holdings. While we maintain full operational control of VIM Holdings, we may have less flexibility to engage in strategic transactions involving Voya IM or its subsidiaries.
Further, we share ownership of VIM Holdings with Allianz, which holds through an affiliated entity a 24% equity interest in VIM Holdings. While we maintain full operational control of VIM Holdings, we may have less flexibility to engage in strategic transactions involving Voya IM or its subsidiaries.
For additional information regarding new accounting standards, see the Business, Basis of Presentation and Significant Accounting Policies Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. Item 1B. Unresolved Staff Comments None.
For additional information regarding new accounting standards, see the Business, Basis of Presentation and Significant Accounting Policies Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K.
Some of our investments are relatively illiquid and in some cases are in asset classes that have been experiencing significant market valuation fluctuations. We hold certain assets that may lack liquidity, such as privately placed fixed income securities, commercial mortgage loans, policy loans and limited partnership interests.
Some of our investments are relatively illiquid and in some cases are in asset classes that may experience significant market valuation fluctuations. We hold certain assets that may lack liquidity, such as privately placed fixed income securities, commercial mortgage loans, policy loans, limited partnership interests and other alternative investments.
For example, it is possible that expected revenues may not fully materialize or that the value of the acquisitions to us is less than we anticipated. In addition, the costs of integrating these acquired businesses may be more than anticipated.
For example, it is possible that expected revenues may not fully materialize or that the value of the acquisitions to us is less than we anticipated. In addition, integrating these acquired businesses may be more costly and take longer than anticipated.
In addition, governmental scrutiny with respect to matters relating to compensation, compliance with regulatory and tax requirements, environmental laws and other business practices in the financial services industry has increased significantly in the past several years and has resulted in more aggressive and intense regulatory supervision and the application and enforcement of more stringent standards.
Governmental scrutiny with respect to matters relating to compensation, compliance with regulatory and tax requirements, environmental laws and business practices in the financial services industry has increased significantly in the past several years and has resulted in more aggressive and intense regulatory supervision and enforcement.
Management of operational, legal and regulatory risks requires, among other things, policies and procedures to record and verify large numbers of transactions and events, as well as technology, policies and procedures to manage increasingly complex and large amounts of information, including unstructured data, retained electronically.
Management of operational, legal and regulatory risks requires, among other things, policies and procedures to record and verify large numbers of transactions and events, as well as technology, policies and procedures to manage increasingly complex and large amounts of information, including unstructured data, retained electronically. These policies and procedures may not be fully effective.
We compete with other financial institutions to attract and retain commercial relationships in each of these channels, and our success in competing for sales through these distribution intermediaries depends on factors such as the amount of sales commissions and fees we pay, the breadth of our product offerings, the strength of our brand, our perceived stability and financial strength ratings, and the marketing and services we provide to, and the strength of the relationships we maintain with, individual distributors.
Our success in competing for sales through these distribution intermediaries depends on factors such as the amount of sales commissions and fees we pay, the breadth of our product offerings, the strength of our brand, our perceived stability and financial strength ratings, and the marketing and services we provide to, and the strength of the relationships we maintain with, individual distributors.
Changes in tax law, as well as changes in interpretation and enforcement of existing tax laws, could increase our future tax costs, reducing our profitability. In August 2022, President Biden signed into law the Inflation Reduction Act of 2022, which includes a 15% corporate alternative minimum tax ("CAMT") on the adjusted financial statement income of large corporations.
Changes in tax law, as well as changes in interpretation and enforcement of existing tax laws, could increase our future tax costs, reducing our profitability. For example, the Inflation Reduction Act of 2022 includes a 15% corporate alternative minimum tax ("CAMT") on the adjusted financial statement income of large corporations.
If we require significant amounts of cash on short notice in excess of normal cash requirements or are required to post or return collateral in connection with our investment portfolio, derivatives transactions or securities lending activities, we may have difficulty selling these investments in a timely manner, be forced to sell them for less than we otherwise would have been able to realize, or both. 31 Table of Contents We invest a portion of our invested assets in investment funds, many of which make private equity investments.
If we require significant amounts of cash on short notice in excess of normal cash requirements or are required to post or return collateral in connection with our investment portfolio, derivatives transactions or securities lending activities, we may have difficulty selling these investments in a timely manner, be forced to sell them for less than we otherwise would have been able to realize, or both.
Best, each of which currently maintain an investment grade rating with respect to us. Our ability to obtain secured or unsecured debt financing and our cost of secured or unsecured debt financing depend, in part, on our credit ratings.
Best, each of which currently maintain an investment grade rating with respect to us. Our ability to obtain secured or unsecured debt financing and the cost of such financing depend, in part, on our credit ratings. A credit rating downgrade could negatively impact our ability to obtain such financing and increase borrowing costs.
We are also subject to the risk that the underlying collateral within asset-backed securities, including mortgage-backed securities, may default on principal and interest payments causing an adverse change in cash flows.
We are subject to the risk that the issuers, or guarantors, of fixed income securities we own may default on principal and interest payments they owe us. We are also subject to the risk that the underlying collateral within asset-backed securities, including mortgage-backed securities, may default on principal and interest payments causing an adverse change in cash flows.
In addition to the potential effect of natural or man-made disasters, significant changes in mortality or morbidity could emerge gradually over time due to changes in the natural environment, the health habits of the insured population, technologies and 34 Table of Contents treatments for disease or disability, the economic environment, or other factors.
In addition to the potential effect of natural or man-made disasters, significant changes in mortality or morbidity could emerge gradually over time due to changes in the natural environment, including due to the impacts of climate change such as changes in temperature and air quality, the health habits of the insured population, technologies and treatments for disease or disability, the economic environment, or other factors.
These products provide a guaranteed annual credited rate on participant account values and generally allow immediately eligible participant withdrawals and transfers without a market value adjustment. 27 Table of Contents The sensitivity of our statutory reserves and surplus established for stable value products to changes in interest rates, credit spreads and policyholder behavior will vary depending on the magnitude of these changes, as well as on the market value of invested assets, participant account value, the market value of assets, credit losses, the guaranteed credited rates available to customers and other product features.
The sensitivity of our statutory reserves and surplus established for stable value products to changes in interest rates, credit spreads and policyholder behavior will vary depending on the magnitude of these changes, as well as on the market value of invested assets, participant account value, the market value of other assets generally, credit losses, the guaranteed credited rates available to customers and other product features.
Additionally, if we lose access to FHLB funding, we may be required to find other sources to replace it. This could occur if our creditworthiness falls below either of the FHLB's requirements or if legislative or other political actions cause changes to the FHLBs' mandate or to the eligibility of life insurance companies to be members of the FHLB system.
This could occur if our creditworthiness falls below either of the FHLB's requirements or if legislative or other political actions cause changes to the FHLBs' mandate or to the eligibility of life insurance companies to be members of the FHLB system.
Although we seek to limit our vulnerability to such events through technological and other means, it is not possible to anticipate or prevent all potential forms of cyberattack or to guarantee our ability to fully defend against all such attacks.
Like others in our industry, we may experience cybersecurity incidents in the ordinary course of our business. Although we seek to limit our vulnerability to such events through technological and other means, it is not possible to anticipate or prevent all potential forms of cyberattack or to guarantee our ability to fully defend against all such attacks.
We believe that a low interest rate environment would negatively affect our financial performance. In a period of changing interest rates, interest expense may increase and interest credited to policyholders may change at different rates than the interest earned on assets. Accordingly, changes in interest rates could decrease net interest margin.
In a period of changing interest rates, interest expense may increase and interest credited to policyholders may change at different rates than the interest earned on assets. Accordingly, changes in interest rates could decrease net interest margin.
Changes in interest rates may negatively affect the value of our assets and our ability to realize gains or avoid losses from the sale of those assets, all of which also ultimately affect earnings. In addition, our insurance and annuity products and certain of our retirement and investment products are sensitive to inflation rate fluctuations.
Changes in interest rates may negatively affect the value of our assets and our ability to realize gains or avoid losses from the sale of those assets, all of which also ultimately affect earnings.
For a summary of ordinary dividends and extraordinary distributions paid by each of our Principal Insurance Subsidiaries to Voya Financial or Voya Holdings in 2022 and 2023, and a discussion of ordinary dividend capacity for 2024, see Liquidity and Capital Resources—Restrictions on Dividends and Returns of Capital from Subsidiaries in Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7. of this Annual Report on Form 10-K and the Insurance Subsidiaries Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. 30 Table of Contents Our investment portfolio is subject to several risks that may diminish the value of our invested assets and the investment returns credited to customers, which could reduce our sales, revenues and results of operations.
For a summary of ordinary dividends and extraordinary distributions paid by each of our Principal Insurance Subsidiaries to Voya Financial or Voya Holdings in 2023 and 2024, and a discussion of ordinary dividend capacity for 2025, see Liquidity and Capital Resources—Restrictions on Dividends and Returns of Capital from Subsidiaries in Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7. of this Annual Report on Form 10-K and the Insurance Subsidiaries Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K.
Also, bank regulators and other supervisory authorities in the U.S. and elsewhere continue to scrutinize payment processing and other transactions under regulations governing such matters as money-laundering, prohibited transactions with countries subject to sanctions, and bribery or corruption.
Other aspects of our business which are regulated may include ethical issues, privacy, recordkeeping and marketing and sales practices. Also, bank regulators and other supervisory authorities in the U.S. and elsewhere continue to scrutinize payment processing and other transactions under regulations governing such matters as money-laundering, prohibited transactions with countries subject to sanctions, and bribery or corruption.
Should the FHLBs choose to change their definition of eligible collateral, change the lendable value against such collateral or if the market value of the pledged collateral decreases in value due to changes in interest rates or credit ratings, we may be required to post additional collateral in the form of cash or other eligible collateral.
These funding agreements are for a fixed term and cannot be terminated early by the FHLB. 28 Table of Contents Should the FHLBs choose to change their definition of eligible collateral, change the lendable value against such collateral or if the market value of the pledged collateral decreases in value due to changes in interest rates or credit ratings, we may be required to post additional collateral in the form of cash or other eligible collateral.
Even in the absence of a market downturn, our retirement, investment and insurance products, as well as our investment returns and our access to and cost of financing, are sensitive to equity, fixed income, real estate and other market fluctuations and general economic and political conditions. 26 Table of Contents Adverse capital market conditions may affect the availability and cost of borrowed funds, thereby impacting our ability to support or grow our business.
Even in the absence of a market downturn, our retirement, investment and insurance products, as well as our investment returns and our access to and cost of financing, are sensitive to equity, fixed income, real estate and other market fluctuations and general economic and political conditions.
Moreover, if we fail to meet our contractual obligations, we could be subject to legal liability or loss of client relationships. 36 Table of Contents Operational Risks Interruption or other operational failures in telecommunication, cybersecurity, information technology and other operational systems, including as a result of human and process error or a failure to maintain the security, integrity, confidentiality, or privacy of such systems, could harm our business.
Operational Risks Interruption or other operational failures in telecommunication, cybersecurity, information technology and other operational systems, including as a result of human and process error or a failure to maintain the security, integrity, confidentiality, or privacy of such systems, could harm our business.
Compliance with applicable laws and regulations is time consuming and personnel-intensive, and changes in laws and regulations may materially increase the cost of compliance and other expenses of doing business.
Compliance with applicable laws and regulations is time consuming and personnel-intensive, and changes in laws and regulations may materially increase the cost of compliance and other expenses of doing business. Compliance risks may arise where applicable regulations may be unclear, subject to multiple interpretations or under development.
We distribute certain products under agreements with affiliated distributors and other members of the financial services industry that are not affiliated with us.
We distribute certain products under agreements with affiliated distributors and other members of the financial services industry that are not affiliated with us. We compete with other financial institutions to attract and retain commercial relationships in each of these channels.
These policies and procedures may not be fully effective. 37 Table of Contents Any failure to protect the privacy and confidentiality of customer information could adversely affect our reputation and adversely affect our business, financial condition and results of operations.
Any failure to protect the privacy and confidentiality of customer information could adversely affect our reputation and adversely affect our business, financial condition and results of operations.
To the extent that any of the foregoing risks were to emerge in a manner that adversely affected general economic conditions, financial markets, or the markets for our products and services, our financial condition, liquidity, and results of operations could be materially adversely affected.
To the extent that any of the foregoing risks were to emerge in a manner that adversely affected general economic conditions, financial markets, or the markets for our products and services, our financial condition, liquidity, and results of operations could be materially adversely affected. 25 Table of Contents The level of interest rates may adversely affect our profitability, particularly during a period of rapidly increasing interest rates or in the event of a recurrence of a low interest rate environment.
We offer stable value products primarily as a fixed rate, liquid asset allocation option for employees of our plan sponsor customers within the defined contribution funding plans offered by our Wealth Solutions business.
We offer stable value products primarily as a fixed rate, liquid asset allocation option for employees of our plan sponsor customers within the defined contribution funding plans offered by our Wealth Solutions business. These products provide a guaranteed annual credited rate on participant account values and generally allow immediately eligible participant withdrawals and transfers without a market value adjustment.
In turn, maintaining our credit ratings depends on strong financial results and on other factors, including the outlook of the rating agencies on our sector and the market generally. A credit rating downgrade could negatively impact our ability to obtain secured or unsecured financing and increase borrowing costs.
In turn, maintaining our credit ratings depends on strong financial results and on other factors, including the outlook of the rating agencies on our sector and the market generally.
A portion of our institutional funding originates from the Federal Home Loan Bank system, which subjects us to liquidity risks. A portion of our institutional funding agreements originates from the FHLB of Boston and the FHLB of Des Moines. We have issued funding agreements in exchange for eligible collateral primarily in the form of cash, mortgage-backed securities and U.S.
A portion of our institutional funding originates from the Federal Home Loan Bank system, which subjects us to liquidity risks. A portion of our institutional funding originates from the Federal Home Loan Bank ("FHLB") of Boston and the FHLB of Des Moines.
The timing of distributions from the funds, which depends on particular events relating to the underlying investments, as well as the funds' schedules for making distributions and their needs for cash, can be difficult to predict. As a result, the amount of income that we record from these investments can vary substantially from quarter to quarter.
The amount and timing of income from alternative investments tend to be uneven. The timing of distributions from such investments can be difficult to predict and, in the case of investment funds, may depend on particular events relating to underlying investments, as well as the funds' schedules for making distributions and their needs for cash.
Without sufficient liquidity, we would be forced to curtail our operations, our ability to manage our capital structure would be adversely affected, and our business would suffer.
Without sufficient liquidity, we would be forced to curtail our operations, our ability to manage our capital structure would be adversely affected, and our business would suffer. In addition, our insurance and annuity products and certain of our retirement and investment products are sensitive to inflation rate fluctuations.
There may be certain asset classes that, although currently in active markets with significant observable data, could become illiquid in a difficult financial environment. As such, valuations may include inputs and assumptions that are less observable or require greater estimation, thereby resulting in values that may differ materially from the value at which the investments may be ultimately sold.
As such, valuations may include inputs and assumptions that are less observable or require greater estimation, thereby resulting in values that may differ materially from the 30 Table of Contents value at which the investments may be ultimately sold.
We routinely execute a high volume of transactions such as unsecured debt instruments, derivative transactions and equity investments with counterparties and customers in the financial services industry, resulting in large periodic settlement amounts which may result in our having significant credit exposure to one or more of such counterparties or customers.
Actual or anticipated changes or downgrades in counterparty credit ratings, including any announcement that such ratings are under review for a downgrade, could increase our corporate borrowing costs and limit our access to the capital markets, which could adversely impact our financial results. 27 Table of Contents We routinely execute a high volume of transactions such as unsecured debt instruments, derivative transactions and equity investments with counterparties and customers in the financial services industry, resulting in large periodic settlement amounts which may result in our having significant credit exposure to one or more of such counterparties or customers.
Despite the implementation of security and back-up measures, our information technology systems may remain vulnerable to disruptions, including disruptions due to events that are wholly or partially beyond our control (such as natural disasters and electrical/telecommunications outages) or to physical or electronic intrusions, viruses or other attacks.
Despite the implementation of security and back-up measures, our information technology systems or those of third parties upon whom we rely, may remain vulnerable to disruptions, delays and outages, including due to events that are wholly or partially beyond our control, such as natural disasters, electrical/telecommunications outages, infrastructure 35 Table of Contents changes, human or software error, upgrade disruptions and capacity constraints.
If we are unable to maintain our current level of reinsurance or purchase new reinsurance protection in amounts that we consider sufficient, we would have to accept an increase in our net risk exposures, revise our pricing to reflect higher reinsurance premiums, or otherwise modify our product offering.
If we are unable to maintain our current level of reinsurance or purchase new reinsurance protection in amounts that we consider sufficient, we would have to accept an increase in our net risk exposures, revise our pricing to reflect higher reinsurance premiums, or otherwise modify our product offering. 33 Table of Contents Pricing of certain of our Health Solutions products is also based in part on expected persistency of these products, which is the probability that a policy will remain in force from one period to the next.
The long-term profitability of such products depends on how our actual mortality and morbidity rates compare to our pricing assumptions. In addition, prolonged or severe adverse mortality or morbidity experience could result in increased reinsurance costs, and ultimately, reinsurers might not offer coverage at all.
In addition, prolonged or severe adverse mortality or morbidity experience could result in increased reinsurance costs, and ultimately, reinsurers might not offer coverage at all.
Changes in these laws and regulations, or in interpretations thereof, are often made for the protection of the consumer at the expense of the insurer and could materially and adversely affect our business, results of operations or financial condition.
See — Regulation—Insurance Regulation in Part I, Item 1. of this Annual Report on Form 10-K. Changes in these laws and regulations, or in interpretations thereof, are often made for the protection of the policyholding consumer and not necessarily creditors or investors of the insurer and could materially and adversely affect our business, results of operations or financial condition.
A decrease in the RBC ratio (as a result of a reduction in statutory surplus or increase in RBC requirements) of our insurance subsidiaries could result in increased scrutiny by insurance regulators and rating agencies and have a material adverse effect on our business, results of operations and financial condition.
For a description of certain regulatory inquiries affecting the Company, see the Litigation, Regulatory Matters and Loss Contingencies section of the Commitments and Contingencies Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. 40 Table of Contents A decrease in the RBC ratio (as a result of a reduction in statutory surplus or increase in RBC requirements) of our insurance subsidiaries could result in increased scrutiny by insurance regulators and rating agencies and have a material adverse effect on our business, results of operations and financial condition.
There are a number of risks that may arise where applicable regulations may be unclear, subject to multiple interpretations or under development or where regulations may conflict with one another, where regulators revise their previous guidance or courts overturn previous rulings, which could result in our failure to meet applicable standards.
Regulations may conflict with one another, regulators may revise their previous guidance or courts may overturn previous rulings, all of which could affect our ability to meet applicable standards.
Although we maintain a hedging program and other risk mitigating features to offset these risks, such program and features may not operate as intended or may not be fully effective, and we may remain exposed to such risks.
Although we maintain a hedging program and other risk mitigating features to offset these risks, such program and features may not operate as intended or may not be fully effective, and we may remain exposed to such risks. 26 Table of Contents Our risk management policies and procedures, including hedging programs, may prove inadequate for the risks we face, which could adversely affect our business and financial condition or result in losses.
Our risk management policies and procedures, including hedging programs, may prove inadequate for the risks we face, which could adversely affect our business and financial condition or result in losses. We have developed risk management policies and procedures, including hedging programs, that utilize derivative financial instruments, and expect to continue to do so in the future.
We have developed risk management policies and procedures, including hedging programs, that utilize derivative financial instruments, and expect to continue to do so in the future. Nonetheless, our policies and procedures to identify, monitor and manage risks may not be fully effective, particularly during turbulent economic conditions.
Additionally, any tax liability may create variability in the amount of cash taxes that we pay, which may affect our ordinary dividend or share buyback capacity. 40 Table of Contents Changes or clarifications in tax law could cause further reductions to the statutory deferred tax assets and RBC ratios of our insurance subsidiaries.
Changes or clarifications in tax law could cause further reductions to the statutory deferred tax assets and RBC ratios of our insurance subsidiaries.
As a result, these methods may not predict future exposures accurately, which could be significantly greater than historical measures indicate. We employ various strategies, including hedging and reinsurance, with the objective of mitigating risks inherent in our business and operations.
We employ various strategies, including hedging and reinsurance, with the objective of mitigating risks inherent in our business and operations.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

4 edited+1 added−0 removed12 unchanged
Biggest changeIn addition, the TIO Committee supports the Audit Committee in reviewing cybersecurity risks and disclosures thereof, and collaborates with both the Audit Committee and the Risk, Investment and Finance ("RIF") Committee of the Board to oversee material risks. Management, including the CISO, regularly updates the TIO Committee on cybersecurity-related matters.
Biggest changeTo assist the Board in fulfilling its oversight function, the Risk Committee is responsible for overseeing cybersecurity risk and collaborates with the Audit Committee on the related disclosures. The Risk Committee receives regular updates from the CISO on cybersecurity-related matters and reports regularly to the full Board.
With regard to risks posed by third-party vendors and service providers, Voya has a dedicated team that is responsible for evaluating, assessing, and addressing those risks, with the ultimate goal of protecting sensitive information and the security of 43 our operations and systems supported by those vendors and providers using a risk-based approach.
With regard to risks posed by third-party vendors and service providers, Voya has a dedicated team that is responsible for evaluating, assessing, and addressing those risks, with the ultimate goal of protecting sensitive information and the security of our operations and systems supported by those vendors and providers using a risk-based approach.
Members of the TORC include senior management with relevant expertise in operations, technology, information security, legal, compliance, data privacy and operational risk management. The information security team participates in the TORC meetings to discuss cybersecurity risks and mitigation treatment. The TORC provides guidance and direction in assessing, addressing, mitigating and monitoring cybersecurity risks within Voya.
Members of the TORC include senior management with relevant expertise in operations, technology, information security, legal, compliance, data privacy and operational risk management. The information security team participates in the TORC meetings to discuss cybersecurity risks and mitigation treatment.
Voya’s Board committees include the Technology, Innovation and Operations ("TIO") Committee, which provides support to the Board in its oversight of information technology, including cybersecurity risks.
The TORC provides guidance and direction in assessing, addressing, mitigating and monitoring cybersecurity risks within Voya. 42 Voya’s Board committees include the Risk Committee, which provides support to the Board in its oversight of information technology, including cybersecurity risk.
Added
The CISO, who oversees the organization supporting the day-to-day operations of our information security program, brings over 30 years of professional IT experience in financial services. Before assuming his current role, the CISO served as Voya's Chief Technology Officer, where he was responsible for our infrastructure, cloud, and business resiliency office.

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed1 unchanged
Biggest changeItem 2. Properties As of December 31, 2023, we owned or leased 76 locations in the U.S. and elsewhere, totaling approximately 1.9 million square feet, of which approximately 849 thousand square feet was owned properties and approximately 1.1 million square feet was leased properties.
Biggest changeItem 2. Properties As of December 31, 2024, we owned or leased 74 locations in the U.S. and elsewhere, totaling approximately 1.8 million square feet, of which approximately 849 thousand square feet was owned properties and approximately 994 thousand square feet was leased properties.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 3. Legal Proceedings See the Litigation, Regulatory Matters and Loss Contingencies section of the Commitments and Contingencies Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for a description of our material legal proceedings.
Biggest changeItem 3. Legal Proceedings See the Litigation, Regulatory Matters and Loss Contingencies section of the Commitments and Contingencies Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for a description of our material legal proceedings. Item 4. Mine Safety Disclosures Not Applicable. PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+2 added−2 removed3 unchanged
Biggest changePurchases of Equity Securities by the Issuer The following table summarizes Voya Financial, Inc.'s repurchases of its common stock for the three months ended December 31, 2023: Period Total Number of Shares Purchased (1) Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) (in millions) October 1, 2023 - October 31, 2023 749,773 $ 66.31 737,300 $ 506 November 1, 2023 - November 30, 2023 794,443 70.05 775,933 452 December 1, 2023 - December 31, 2023 759,336 73.34 744,875 397 Total 2,303,552 $ 69.92 2,258,108 N/A (1) In connection with exercise or vesting of equity-based compensation awards, employees may remit to Voya Financial, Inc., or Voya Financial, Inc. may withhold into treasury stock, shares of common stock in respect of tax withholding obligations and option exercise cost associated with such exercise or vesting.
Biggest changeStockholders of record include institutional or omnibus accounts that hold common stock for many underlying investors. 43 Table of Contents Purchases of Equity Securities by the Issuer The following table summarizes Voya Financial, Inc.'s repurchases of its common stock for the three months ended December 31, 2024: Period Total Number of Shares Purchased (1) Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) (in millions) October 1, 2024 - October 31, 2024 1,050,726 $ 80.77 997,994 $ 801 November 1, 2024 - November 30, 2024 723,212 83.92 (2) 708,061 761 December 1, 2024 - December 31, 2024 33,135 77.56 — 761 Total 1,807,073 $ 81.97 1,706,055 N/A (1) In connection with exercise or vesting of equity-based compensation awards, employees may remit to Voya Financial, Inc., or Voya Financial, Inc. may withhold into treasury stock, shares of common stock in respect of tax withholding obligations and option exercise cost associated with such exercise or vesting.
See Liquidity and Capital Resources in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7. of this Annual Report on Form 10-K for further information regarding common stock dividends. At February 14, 2024, there were 61 stockholders of record of common stock.
See Liquidity and Capital Resources in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7. of this Annual Report on Form 10-K for further information regarding common stock dividends. At February 14, 2025, there were 73 stockholders of record of common stock.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Issuer Common Equity Voya Financial, Inc.'s common stock, par value $0.01 per share, began trading on the NYSE under the symbol "VOYA" on May 2, 2013.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Issuer Common Equity Voya Financial, Inc.'s common stock, par value $0.01 per share, trades on the New York Stock Exchange under the symbol "VOYA".
The authorization for the share repurchase program may be terminated, increased or decreased by the Board of Directors at any time. For equity compensation information, refer to the Share-based Incentive Compensation Plans Note in our Consolidated Financial Statements in Part II, Item 8. and to Part III, Item 12.
For equity compensation information, refer to the Share-based Incentive Compensation Plans Note in our Consolidated Financial Statements in Part II, Item 8. and to Part III, Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters of this Annual Report on Form 10-K.
For the three months ended December 31, 2023, there were 45,444 Treasury share increases in connection with such withholding activities. (2) This share repurchase authorization expires on September 30, 2024 (unless extended), and does not obligate the Company to purchase any shares.
For the three months ended December 31, 2024, there was an increase of 101,018 treasury shares in connection with such withholding activities. (2) On September 12, 2024, the Company entered into a share repurchase agreement with a third-party financial institution to repurchase $100 million of the Company's common stock.
Removed
Stockholders of record include institutional or omnibus accounts that hold common stock for many underlying investors.
Added
Pursuant to the agreement, the Company received initial delivery of 1,061,853 shares based on the closing market price of the Company's stock on September 12, 2024 of $75.34. The arrangement closed on November 5, 2024 and an additional 222,007 shares were delivered based on the daily volume-weighted average price of the Company's common stock.
Removed
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters of this Annual Report on Form 10-K.
Added
(3) On October 31, 2024, the Company's Board of Directors provided an additional share repurchase authorization of $500 million. This share repurchase authorization expires on December 31, 2025 (unless extended), and does not obligate the Company to purchase any shares. The authorization for the share repurchase program may be terminated, increased or decreased by the Company's Board at any time.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

179 edited+44 added−49 removed182 unchanged
Biggest changeDecember 31, 2022 ($ in millions) Amortized Cost Gross Unrealized Capital Gains Gross Unrealized Capital Losses Embedded Derivatives Fair Value Prime Agency $ 1,957 $ 19 $ 50 $ 1 $ 1,927 Prime Non-Agency 2,194 10 238 — 1,966 Alt-A 66 5 2 2 71 Sub-Prime (1) 30 1 1 — 30 Total $ 4,247 $ 35 $ 291 $ 3 $ 3,994 (1) Includes subprime other asset backed securities. 84 Table of Contents Commercial Mortgage-backed Securities The following tables present our commercial mortgage-backed securities as of the dates indicated: December 31, 2023 ($ in millions) AAA AA A BBB BB and Below Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value 2023 $ — $ — $ 4 $ 4 $ 4 $ 4 $ — $ — $ — $ — $ 8 $ 8 2022 25 24 118 94 135 126 115 107 — — 393 351 2021 107 99 209 144 223 198 312 281 18 15 869 737 2020 41 40 46 36 64 52 152 125 11 8 314 261 2019 14 12 164 144 95 82 272 208 20 14 565 460 Prior 85 74 1,085 938 353 308 280 228 195 130 1,998 1,678 Total $ 272 $ 249 $ 1,626 $ 1,360 $ 874 $ 770 $ 1,131 $ 949 $ 244 $ 167 $ 4,147 $ 3,495 December 31, 2022 ($ in millions) AAA AA A BBB BB and Below Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value 2022 $ 105 $ 89 $ 58 $ 53 $ 178 $ 166 $ 115 $ 102 $ 43 $ 43 $ 499 $ 453 2021 238 181 86 77 213 187 324 283 8 8 869 736 2020 74 66 31 27 74 59 155 125 — — 334 277 2019 169 149 38 36 130 115 297 241 8 6 642 547 2018 110 95 20 18 96 86 40 33 19 15 285 247 Prior 835 724 228 214 345 314 320 274 109 97 1,837 1,623 Total $ 1,531 $ 1,304 $ 461 $ 425 $ 1,036 $ 927 $ 1,251 $ 1,058 $ 187 $ 169 $ 4,466 $ 3,883 As of December 31, 2023, 82.4% and 13.8% of CMBS investments were designated as NAIC-1 and NAIC-2, respectively.
Biggest changeDecember 31, 2023 ($ in millions) Amortized Cost Gross Unrealized Capital Gains Gross Unrealized Capital Losses Embedded Derivatives Fair Value Prime Agency $ 1,925 $ 20 $ 36 $ — $ 1,909 Prime Non-Agency 1,706 12 218 — 1,500 Alt-A 52 4 1 2 57 Sub-Prime (1) 24 1 1 — 24 Total $ 3,707 $ 37 $ 256 $ 2 $ 3,490 (1) Includes subprime other asset backed securities. 83 Table of Contents Commercial Mortgage-backed Securities The following tables present our commercial mortgage-backed securities by origination as of the dates indicated: December 31, 2024 ($ in millions) AAA AA A BBB BB and Below Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value 2024 $ — $ — $ 3 $ 3 $ — $ — $ — $ — $ — $ — $ 3 $ 3 2023 — — 4 5 4 4 — — — — 8 9 2022 22 21 112 85 109 106 93 90 — — 336 302 2021 96 93 210 143 186 173 295 277 21 18 808 704 2020 27 26 40 31 62 53 109 94 24 5 262 209 Prior 84 74 1,201 1,009 320 295 433 368 222 159 2,260 1,905 Total $ 229 $ 214 $ 1,570 $ 1,276 $ 681 $ 631 $ 930 $ 829 $ 267 $ 182 $ 3,677 $ 3,132 December 31, 2023 ($ in millions) AAA AA A BBB BB and Below Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value 2023 $ — $ — $ 4 $ 4 $ 4 $ 4 $ — $ — $ — $ — $ 8 $ 8 2022 25 24 118 94 135 126 115 107 — — 393 351 2021 107 99 209 144 223 198 312 281 18 15 869 737 2020 41 40 46 36 64 52 152 125 11 8 314 261 2019 14 12 164 144 95 82 272 208 20 14 565 460 Prior 85 74 1,085 938 353 308 280 228 195 130 1,998 1,678 Total $ 272 $ 249 $ 1,626 $ 1,360 $ 874 $ 770 $ 1,131 $ 949 $ 244 $ 167 $ 4,147 $ 3,495 As of December 31, 2024, 82.0% and 12.4% of CMBS investments were designated as NAIC-1 and NAIC-2, respectively.
See the "Note Concerning Forward-Looking Statements." Overview We are a leading provider of workplace benefits and savings solutions and technologies to U.S. employers, enabling better financial outcomes for their employees and for those who depend on their employees through our retirement solutions, retail wealth services, and comprehensive portfolio of benefits products.
See the "Note Concerning Forward-Looking Statements." Overview We are a leading provider of workplace benefits and savings solutions and technologies to U.S. employers, enabling better financial outcomes for their employees and for those who depend on their employees through our retirement solutions, retail wealth services, and a comprehensive portfolio of benefits products.
We recorded a gain of $45 million in relation to revaluation of the existing investment in Voya India which was recorded in Net gains (losses) in the Consolidated Statements of Operations for the year ended December 31, 2023. Net assets acquired as part of this transaction included goodwill of $102 million.
We recorded a gain of $45 million in relation to the revaluation of the existing investment in Voya India which was recorded in Net gains (losses) in the Consolidated Statements of Operations for the year ended December 31, 2023. Net assets acquired as part of this transaction included goodwill of $102 million.
Goodwill and Other Intangible Assets Goodwill and other intangible assets are established based on estimates of fair value as of the date of acquisition in a business combination. The fair valuation methodologies utilized in connection with testing goodwill and other intangible assets for impairment are subject to key judgments and assumptions that are sensitive to change.
Goodwill and Other Intangible Assets Goodwill and other intangible assets are established based on estimates of fair value as of the date of acquisition in a business combination. The valuation methodologies utilized in connection with testing goodwill and other intangible assets for impairment are subject to key judgments and assumptions that are sensitive to change.
Investments (excluding Consolidated Investment Entities) Investments for our general account are managed by our wholly owned asset manager, Voya Investment Management LLC, pursuant to investment advisory agreements with affiliates. In addition, our internal treasury group manages our holding company liquidity investments, primarily money market funds.
Investments (excluding Consolidated Investment Entities) Investments for our general account are primarily managed by our wholly owned asset manager, Voya Investment Management LLC, pursuant to investment advisory agreements with affiliates. In addition, our internal treasury group manages our holding company liquidity investments, primarily money market funds.
Due to the significance of the assumptions used, the amounts presented could materially differ from actual results. (3) Contractual obligations related to certain closed blocks that were divested through reinsurance to third parties with reserves in the amount of $1.1 billion, have been excluded from the table.
Due to the significance of the assumptions used, the amounts presented could materially differ from actual results. (3) Contractual obligations related to certain closed blocks that were divested through reinsurance to third parties with reserves in the amount of $1.0 billion, have been excluded from the table.
For additional understanding over the Company's valuation allowance, refer to the Business, Basis of Presentation and Significant Accounting Policies Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. 75 Table of Contents In December 2014, we entered into an Issue Resolution Agreement ("IA") with the IRS relating to the Internal Revenue Code Section 382 calculation of the annual limitation on the use of certain of the Company’s federal tax attributes that will apply as a consequence of the Section 382 event experienced by the Company in March 2014.
For additional understanding over the Company's valuation allowance, refer to the Business, Basis of Presentation and Significant Accounting Policies Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. 74 Table of Contents In December 2014, we entered into an Issue Resolution Agreement ("IA") with the IRS relating to the Internal Revenue Code Section 382 calculation of the annual limitation on the use of certain of the Company’s federal tax attributes that will apply as a consequence of the Section 382 event experienced by the Company in March 2014.
Although we are not relieved of legal liability to the contract holder for these closed blocks, third-party collateral of $1.2 billion has been provided for the payment of the related insurance obligations. The sufficiency of collateral held for any individual block may vary.
Although we are not relieved of legal liability to the contract holder for these closed blocks, third-party collateral of $1.1 billion has been provided for the payment of the related insurance obligations. The sufficiency of collateral held for any individual block may vary.
As a result of the acquisition, Voya India has become a wholly owned subsidiary of us and provides us with improved strategic and operational flexibility. As part of the purchase consideration, an upfront payment of approximately $53 million was made at closing.
As a result of the acquisition, Voya India has become a wholly owned subsidiary and provides us with improved strategic and operational flexibility. As part of the purchase consideration, an upfront payment of $53 million was made at closing.
The following discussion presents a review of our sources and uses of liquidity and capital and should be read in its entirety and in conjunction with the Off-Balance Sheet Arrangements and Aggregate Contractual Obligations table included further below.
The following presents a review of our sources and uses of liquidity and capital and should be read in its entirety and in conjunction with the Off-Balance Sheet Arrangements and Aggregate Contractual Obligations table included further below.
(8) Securities loan, repurchase agreements, and collateral held represent the liability to return collateral received from counterparties under securities lending agreements, OTC derivative and cleared derivative contracts as well as the obligations related to borrowings under repurchase agreements.
(8) Securities lending agreements, repurchase agreements, and collateral held represent the liability to return collateral received from counterparties under securities lending agreements, OTC derivative and cleared derivative contracts as well as the obligations related to borrowings under repurchase agreements.
For additional information on our pension and postretirement plan arrangements, see the Employee Benefit Arrangements Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. 67 Table of Contents Restrictions on Dividends and Returns of Capital from Subsidiaries We depend on dividends and other distributions from our subsidiaries as the principal source of cash to meet our obligations.
For additional information on our pension and postretirement plan arrangements, see the Employee Benefit Arrangements Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. 66 Table of Contents Restrictions on Dividends and Returns of Capital from Subsidiaries We depend on dividends and other distributions from our subsidiaries as the principal source of cash to meet our obligations.
Share Repurchase Program and Dividends to Common Shareholders See the Shareholders' Equity Note to our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for information relating to authorizations by the Board of Directors to repurchase our shares and amounts of common stock repurchased pursuant to such authorizations for the years ended December 31, 2023 and 2022.
Share Repurchase Program and Dividends to Common Shareholders See the Shareholders' Equity Note to our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for information relating to authorizations by the Board of Directors to repurchase our shares and amounts of common stock repurchased pursuant to such authorizations for the years ended December 31, 2024 and 2023 .
We also serve individual investors by offering our mutual funds, separately managed accounts, and private and alternative funds through an intermediary-focused distribution platform or through affiliate and third-party retirement platforms. Our scaled and growing international retail business is conducted through sub-advisory agreements with investment vehicles sponsored by affiliates and distributed in Europe and Asia.
We also serve individual investors by offering our mutual funds, separately managed accounts, and private and alternative funds through an intermediary-focused distribution platform or through affiliate and third-party retirement platforms. Our scaled and growing international retail business is conducted through sub-advisory agreements with investment vehicles sponsored by affiliates of AllianzGI and distributed in Europe and Asia.
Also, for additional information on our sensitivity to interest rates, see Quantitative and Qualitative Disclosures About Market Risk in Part II, Item 7A. of this Annual Report on Form 10-K. 48 Table of Contents Seasonality and Other Matters Our business results can vary from quarter to quarter as a result of seasonal factors.
Also, for additional information on our sensitivity to interest rates, see Quantitative and Qualitative Disclosures About Market Risk in Part II, Item 7A. of this Annual Report on Form 10-K. 47 Table of Contents Seasonality and Other Matters Our business results can vary from quarter to quarter as a result of seasonal factors.
(5) BBB+/positive Baa2/stable BBB+/stable Financial Strength Rating/Outlook: Voya Retirement Insurance and Annuity Company (5) A/positive A2/stable A+/stable ReliaStar Life Insurance Company A/stable A/positive A2/stable A+/stable ReliaStar Life Insurance Company of New York A/stable A/positive A2/stable A+/stable (1) A.M.
(5) A-/stable Baa2/stable BBB+/stable Financial Strength Rating/Outlook: Voya Retirement Insurance and Annuity Company (5) A+/stable A2/stable A+/stable ReliaStar Life Insurance Company A/stable A+/stable A2/stable A+/stable ReliaStar Life Insurance Company of New York A/stable A+/stable A2/stable A+/stable (1) A.M.
For a summary of statutory capital and surplus of our Principal Insurance Subsidiaries, see the Insurance Subsidiaries Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. 68 Table of Contents Leverage Ratios Our Leverage Ratios are a measure that we use to monitor the level of our debt relative to our total capitalization.
For a summary of statutory capital and surplus of our Principal Insurance Subsidiaries, see the Insurance Subsidiaries Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K. 67 Table of Contents Leverage Ratios Our Leverage Ratios are a measure that we use to monitor the level of our debt relative to our total capitalization.
Based on these factors, we expect that the assets will earn an average percentage per year over the long term. This estimation is based on an active return on a compound basis, with a reduction for administrative expenses and manager fees 77 Table of Contents paid to non-affiliated companies from the assets.
Based on these factors, we expect that the assets will earn an average percentage per year over the long term. This estimation is based on an active return on a compound basis, with a reduction for administrative expenses and manager fees 76 Table of Contents paid to non-affiliated companies from the assets.
As of December 31, 2023, such securities consist of (i) the 5.7% senior notes due 2043, the 3.65% senior notes due 2026, the 4.8% senior notes due 2046, and the 3.976% senior notes due 2025 with an aggregate principal amount of $1.5 billion (collectively, the "Senior Notes") and (ii) the 4.7% fixed-to-floating rate junior subordinated notes due 2048, with principal amount of $336 million.
As of December 31, 2023 such securities consist of (i) the 3.976% senior notes due 2025, the 3.65% senior notes due 2026, the 5.7% senior notes due 2043, and the 4.8% senior notes due 2046, with an aggregate principal amount of $1.5 billion and (ii) the 4.7% fixed-to-floating rate junior subordinated notes due 2048, with a principal amount of $336 million.
We assess goodwill and other intangible assets for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. 74 Table of Contents Goodwill Goodwill testing is performed at the reporting unit level and consists of qualitative or quantitative assessments.
We assess goodwill and other intangible assets for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. 73 Table of Contents Goodwill Goodwill testing is performed at the reporting unit level and consists of qualitative or quantitative assessments.
AUA represents accumulated assets on contracts pursuant to which we either provide administrative, advisement services, or distribution coverage, relationship management and client servicing or product guarantees for assets managed by third parties. These contracts are not insurance contracts and the assets are excluded from the Consolidated Financial Statements.
AUA represents accumulated assets on contracts pursuant to which we provide administrative and advisement services, distribution coverage, relationship management, client servicing, and product guarantees for assets managed by third parties. These contracts are not insurance contracts and the assets are excluded from the Consolidated Financial Statements.
As of December 31, 2023, there were no preferred stock dividends in arrears. See the Shareholders' Equity Note to our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for further information on preferred stock issuances.
As of December 31, 2024, there were no preferred stock dividends in arrears. See the Shareholders' Equity Note to our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for further information on preferred stock issuances.
State insurance regulators use the RBC requirements to identify inadequately capitalized insurers. Not meeting the minimum amount of capital based upon RBC requirements may subject the insurer to varying levels of regulatory oversight. As of December 31, 2023, the Total Adjusted Capital of each of our insurance subsidiaries exceeded statutory minimum RBC levels.
State insurance regulators use the RBC requirements to identify inadequately capitalized insurers. Not meeting the minimum amount of capital based upon RBC requirements may subject the insurer to varying levels of regulatory oversight. As of December 31, 2024, the Total Adjusted Capital of each of our insurance subsidiaries exceeded statutory minimum RBC levels.
Health Solutions Our Health Solutions segment provides worksite employee benefits, Health Account Solutions (Health Savings Account ("HSA")/Flexible Spending Account ("FSA")/Health Reimbursement Arrangements ("HRA") and COBRA administration), leave management, financial wellness and decision support products and services to mid-size and large corporate employers and professional associations as well as benefits administration.
Health Solutions Our Health Solutions segment provides worksite employee benefits, Health Account Solutions (Health Savings Account ("HSA")/Flexible Spending Account ("FSA")/Health Reimbursement Arrangements ("HRA") and COBRA administration), leave management, financial wellness, and decision support products and services to mid-size and large corporate employers and professional associations.
AUM is principally affected by net deposits (i.e., new deposits, less surrenders and other outflows) and investment performance (i.e., interest credited to contract owner accounts for assets that earn 49 Table of Contents a fixed return or market performance for assets that earn a variable return).
AUM is principally affected by net deposits (i.e., new deposits, less surrenders and other outflows) and 48 Table of Contents investment performance (i.e., interest credited to contract owner accounts for assets that earn a fixed return or market performance for assets that earn a variable return).
As part of our liquidity management process, we model different scenarios to determine whether existing assets are adequate to meet projected cash flows. 63 Table of Contents Capitalization The primary components of our capital structure consist of debt and equity securities.
As part of our liquidity management process, we model different scenarios to determine whether existing assets are adequate to meet projected cash flows. 62 Table of Contents Capitalization The primary components of our capital structure consist of debt and equity securities.
For life insurance subsidiaries, the amounts that either party may borrow under the agreement vary and are between 2% and 5% of the insurance subsidiary's statutory net admitted assets (excluding separate accounts) as of the previous year end depending on the state of domicile.
For life insurance subsidiaries, the amounts that either party may borrow under the agreement vary and are between 3% and 5% of the insurance subsidiary's statutory net admitted assets (excluding separate accounts) as of the previous year end depending on the state of domicile.
This measure provides information as to the growth and persistency trends in premium and fee revenue. 50 Table of Contents Interest adjusted loss ratios are defined as the ratio of benefits expense to premium revenue exclusive of the discount component in the change in benefit reserve.
This measure provides information as to the growth and persistency trends in premium and fee revenue. 49 Table of Contents Interest adjusted loss ratios are defined as the ratio of benefits expense to premium revenue exclusive of the discount component in the change in benefit reserve.
We did not recognize any asset or liability as of December 31, 2023 in relation to intercompany indemnifications, guarantees or support agreements. As of December 31, 2023, no guarantees existed in which we were required to currently perform under these arrangements.
We did not recognize any asset or liability as of December 31, 2024 in relation to intercompany indemnifications, guarantees or support agreements. As of December 31, 2024, no guarantees existed in which we were required to currently perform under these arrangements.
For details on the NAIC designation methodology, please see "Fixed Maturities Credit Quality-Ratings" above.
For details on the NAIC designation methodology, see "Fixed Maturities Credit Quality-Ratings" above.
These designations are generally similar to the credit quality designations of the NAIC acceptable rating organizations ("ARO") for marketable fixed maturity securities, called rating agency designations except for certain structured securities as described below. NAIC designations of "1," highest quality and "2," high quality, include fixed maturity securities generally considered investment grade by such rating organizations.
These designations are 77 Table of Contents generally similar to the credit quality designations of the NAIC acceptable rating organizations ("ARO") for marketable fixed maturity securities, called rating agency designations except for certain structured securities as described below. NAIC designations of "1," highest quality and "2," high quality, include fixed maturity securities generally considered investment grade by such rating organizations.
These entities are considered to be VIEs or VOEs (collectively, "Consolidated Investment Entities"), or nonconsolidated VIEs, and we evaluate our involvement with each entity to determine whether consolidation is required. We perform a quarterly consolidation analysis to assess if the consolidation of a fund is required.
These entities are considered to be variable interest entities ("VIEs") or voting interest entities ("VOEs"), (collectively, "Consolidated Investment Entities"), or nonconsolidated VIEs, and we evaluate our involvement with each entity to determine whether consolidation is required. We perform a quarterly consolidation analysis to assess if the consolidation of a fund is required.
As a result, we seek to invest in securities that are broadly diversified by collateral type to take advantage of the uncorrelated prepayment experiences of homeowners with unique characteristics that influence their ability or 82 Table of Contents desire to prepay their mortgage.
As a result, we seek to invest in securities that are broadly diversified by collateral type to take advantage of the uncorrelated prepayment experiences of homeowners with unique characteristics that influence their ability or desire to prepay their mortgage.
Voya’s scale, business mix, risk profile, and strong free cash flow generation are competitive differentiators, and we have a clear path to Adjusted Operating Earnings Per Share growth via net revenue growth, margin expansion, and disciplined capital management.
Voya’s scale, business mix, risk profile, and strong free cash flow generation are competitive differentiators, and we have a clear path to increasing free cash flow generation and Adjusted operating earnings growth via net revenue growth, margin expansion, and disciplined capital management.
These products and services include full-service and recordkeeping-only defined contribution plan administration, stable value and fixed general account investment products; non-qualified plan administration; and tools, guidance, and services to promote the financial well-being and retirement security of employees.
These products and services include full-service and recordkeeping-only defined contribution plan administration, stable value and fixed general account investment products, and non-qualified plan administration. It also includes tools, guidance, and services to promote the financial well-being and retirement security of employees.
This represents the estimate of actuarial gains (losses) that would be recognized immediately through Operating expenses in our Consolidated Statements of Operations: ($ in millions) Increase (Decrease) in Net Periodic Benefit Cost-Pension Plans Increase in actual rate of return by 100 basis points $ (17) Decrease in actual rate of return by 100 basis points 17 The expected rate of return for 2024 is 6.0%, net of expenses, for the Retirement Plan.
This represents the estimate of actuarial gains (losses) that would be recognized immediately through Operating expenses in our Consolidated Statements of Operations: ($ in millions) Increase (Decrease) in Net Periodic Benefit Cost-Pension Plans Increase in actual rate of return by 100 basis points $ (18) Decrease in actual rate of return by 100 basis points 18 The expected rate of return for 2025 is 6.0%, net of expenses, for the Retirement Plan.
The following discussion and analysis presents a review of our results of operations for the years ended December 31, 2023 and 2022, and financial condition as of December 31, 2023 and 2022.
The following discussion and analysis presents a review of our results of operations for the years ended December 31, 2024 and 2023, and financial condition as of December 31, 2024 and 2023.
Liquidity We manage liquidity through access to substantial investment portfolios as well as a variety of other sources of liquidity including committed credit facilities, securities lending and repurchase agreements. Our asset-liability management ("ALM") process takes into account the expected maturity of investments and expected benefit payments as well as the specific nature and risk profile of the liabilities.
Liquidity We manage liquidity through access to substantial investment portfolios as well as a variety of other sources of liquidity including committed credit facilities, securities lending and repurchase agreements. Our asset-liability management ("ALM") process considers the expected maturity of investments and expected benefit payments as well as the specific nature and risk profile of the liabilities.
The determination of fair value for our reporting units is primarily based on an income approach whereby we use discounted cash flows for each reporting unit. We apply significant judgment to our discounted cash flow models when determining the estimated fair value of our reporting units.
The determination of fair value for our reporting units is primarily based on an income approach whereby we use discounted cash flows for each reporting unit. We apply significant judgment when determining the estimated fair value of our reporting units.
Securities lending agreements include provisions which permit us to call back securities with minimal notice and accordingly, the payable is classified as having a term of less than 1 year. Additionally, Securities lending agreements and collateral held include off-balance sheet non-cash collateral of $215 million and $11 million, respectively.
Securities lending agreements include provisions which permit us to call back securities with minimal notice and accordingly, the payable is classified as having a term of less than 1 year. Additionally, securities lending agreements and collateral held include off-balance sheet non-cash collateral of $386 million and $4 million, respectively.
($ in millions) As of December 31, 2023 An assumed increase in future mortality by 1% $ (1.6) An assumed increase in future morbidity by 1% $ (0.3) An assumed increase in future persistency by 1% $ (0.4) Increased assumed future mortality, morbidity, or persistency generally increases future policy benefits, thus decreasing income before income taxes.
($ in millions) As of December 31, 2024 An assumed increase in future mortality by 1% $ (1.6) An assumed increase in future morbidity by 1% (0.4) An assumed increase in future persistency by 1% (0.4) Increased assumed future mortality, morbidity, or persistency generally increases future policy benefits, thus decreasing income before income taxes.
The estimated impact of this change, as well as actuarial loss on discount rate experienced during 2023, is expected to have an immaterial impact on our net periodic pension cost. The expected rate of return considers the asset allocation, historical returns on the types of assets held and current economic environment.
The estimated impact of this change, as well as actuarial gain on discount rate experienced during 2024, is expected to have an immaterial impact on our net periodic pension cost. The expected rate of return considers the asset allocation, historical returns on the types of assets held and current economic environment.
This item should be read in its entirety and in conjunction with the Consolidated Financial Statements and related notes contained in Part II, Item 8. of this Annual Report on 45 Table of Contents Form 10-K.
This item should be read in its entirety and in conjunction with the Consolidated Financial Statements and related notes contained in Part II, Item 8. of this Annual Report on Form 10-K.
As of December 31, 2023, the aggregate amount that may be borrowed or lent under agreements with life insurance subsidiaries was $1.4 billion. For non-life insurance subsidiaries, the maximum allowable under the agreement is based on the assets of the subsidiaries and their particular cash requirements.
As of December 31, 2024, the aggregate amount that may be borrowed or lent under agreements with life insurance subsidiaries was $1.2 billion. For non-life insurance subsidiaries, the maximum allowable under the agreement is based on the assets of the subsidiaries and their particular cash requirements.
Significant future increases to interest rates and/or the occurrence of other unexpected circumstances, such as changes in the economic environment, liquidity and investment strategy, could result in recording a related valuation allowance on our deferred tax assets in a future period.
Future decreases to taxable income, increases to interest rates and/or the occurrence of other unexpected circumstances, such as changes in the economic environment, liquidity and investment strategy, could result in recording a related valuation allowance on our deferred tax assets in a future period.
As of December 31, 2023 and 2022, the weighted average NAIC quality rating of our fixed maturities portfolio was 1.5. 79 Table of Contents The following tables present credit quality of fixed maturities, including securities pledged, using NAIC designations as of the dates indicated: ($ in millions) December 31, 2023 NAIC Quality Designation 1 2 3 4 5 6 Total Fair Value U.S.
As of December 31, 2024 and 2023, the weighted average NAIC quality rating of our fixed maturities portfolio was 1.5. The following tables present credit quality of fixed maturities, including securities pledged, using NAIC designations as of the dates indicated: ($ in millions) December 31, 2024 NAIC Quality Designation 1 2 3 4 5 6 Total Fair Value U.S.
The discount rate modeling process involves selecting a portfolio of high quality, non-callable bonds that will match the cash flows of the defined benefit pension plans. The weighted average discount rate in 2023 for the net periodic benefit cost was 5.47% for the Plans.
The discount rate modeling process involves selecting a portfolio of high quality, non-callable bonds that will match the cash flows of the defined benefit pension plans. The weighted average discount rate in 2024 for the net periodic benefit cost was 5.28% for the Plans.
Interest Rate Environment We believe the interest rate environment will continue to influence our business and financial performance in the future for several reasons, including the following: • Our general account investment portfolio, which was approximately $36 billion as of December 31, 2023, consists predominantly of fixed income investments.
Interest Rate Environment We believe the interest rate environment will continue to influence our business and financial performance in the future for several reasons, including the following: • Our general account investment portfolio, which was approximately $34.7 billion as of December 31, 2024, consists predominantly of fixed income investments.
During the year ended December 31, 2023, we declared and paid dividends of $20 million and $16 million on the Series A and Series B preferred stock, respectively. During the year ended December 31, 2022, we declared and paid dividends of $20 million and $16 million on the Series A and Series B preferred stock, respectively.
During the year ended December 31, 2024, we declared and paid dividends of $25 million and $16 million on the Series A and Series B preferred stock, respectively. During the year ended December 31, 2023, we declared and paid dividends of $20 million and $16 million on the Series A and Series B preferred stock, respectively.
Credit Facilities See the Financing Agreements Note to our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for information on credit facilities, including our senior unsecured credit facility. Voya Financial, Inc.
Credit Facilities See the Financing Agreements Note to our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for information on credit facilities. Voya Financial, Inc.
For the third quarter of 2023, the impact of annual assumption updates was $67 million unfavorable, of which $8 million was an unfavorable impact to Adjusted operating earnings before income taxes. The unfavorable remeasurement impact within Adjusted operating earnings was related to the Health Solutions segment, primarily driven by unfavorable mortality experience.
The favorable remeasurement impact within Adjusted operating earnings was primarily related to Group Life products in the Health Solutions segment, driven by favorable mortality experience. For the third quarter of 2023, the impact of annual assumption updates was $67 million unfavorable, of which $8 million was an unfavorable impact to Adjusted operating earnings before income taxes.
For discussion and analysis of our results of operations for the years ended December 31, 2022 and 2021, refer to our 2022 Annual Report on Form 10-K filed with the SEC on February 24, 2023.
For discussion and analysis of our results of operations for the years ended December 31, 2023 and 2022, refer to our 2023 Annual Report on Form 10-K filed with the SEC on February 23, 2024.
See the Financing Agreements and Income Taxes Notes to our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form10-K for more information on this agreement. 70 Table of Contents Critical Accounting Judgments and Estimates General The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("U.S.
See the Income Taxes Notes to our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for more information on this agreement. 69 Table of Contents Critical Accounting Judgments and Estimates General The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("U.S.
As of December 31, 2023, Voya Financial, Inc. had $445 million in outstanding borrowings from subsidiaries and had loaned $293 million to its subsidiaries. Collateral - Derivative Contracts See the Derivatives Note to our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for information on collateral for derivatives.
As of December 31, 2024, Voya Financial, Inc. had $176 million in outstanding borrowings from subsidiaries and had loaned $392 million to its subsidiaries. Collateral - Derivative Contracts See the Derivative Financial Instruments Note to our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for information on collateral for derivatives.
Accordingly, the sum of cash flows presented of $55.4 billion significantly exceeds the sum of Future policy benefits and Contract owner account balances of $48.7 billion recorded on our Consolidated Balance Sheets as of December 31, 2023. Estimated cash payments are also presented gross of reinsurance.
Accordingly, the sum of cash flows presented of $55.1 billion significantly exceeds the sum of Future policy benefits and Contract owner account balances of $46.4 billion recorded on our Consolidated Balance Sheets as of December 31, 2024. Estimated cash payments are also presented gross of reinsurance.
This represents the estimate of actuarial gains (losses) that would be recognized immediately through Operating expenses in our Consolidated Statements of Operations: ($ in millions) Increase (Decrease) in Net Periodic Benefit Cost-Pension Plans Increase in discount rate by 100 basis points $ (181) Decrease in discount rate by 100 basis points 216 ($ in millions) Increase (Decrease) in Pension Benefit Obligation Increase in discount rate by 100 basis points $ (181) Decrease in discount rate by 100 basis points 216 The discount rate to be used to determine interest cost for 2024 is 5.28%.
This represents the estimate of actuarial gains (losses) that would be recognized immediately through Operating expenses in our Consolidated Statements of Operations: ($ in millions) Increase (Decrease) in Net Periodic Benefit Cost-Pension Plans Increase in discount rate by 100 basis points $ (160) Decrease in discount rate by 100 basis points 190 ($ in millions) Increase (Decrease) in Pension Benefit Obligation Increase in discount rate by 100 basis points $ (160) Decrease in discount rate by 100 basis points 190 The discount rate to be used to determine interest cost for 2025 is 5.88%.
The discount rate as of December 31, 2023 for the benefit obligation of the Plans was 5.28%. As of December 31, 2023, the sensitivities of the effect of a change in the discount rate are as presented below.
The discount rate as of December 31, 2024 for the benefit obligation of the Plans was 5.88%. As of December 31, 2024, the sensitivities of the effect of a change in the discount rate are as presented below.
See the Investments (excluding Consolidated Investment Entities) Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for more information on investments.
See the Investments (excluding Consolidated Investment Entities) Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for further information on unrealized capital losses.
Market Conditions Extraordinary monetary accommodation to support a global economy negatively impacted by the pandemic is being unwound. Inflationary pressures related to easy monetary and fiscal policies, and the stagflationary impacts of the Russia-Ukraine war and global supply chain frictions, have been addressed by sharply tighter monetary policy.
Market Conditions Extraordinary monetary accommodation to support a global economy negatively impacted by the pandemic is being unwound. Inflationary pressures related to easing monetary and fiscal policies, stagflationary, and global supply chain frictions, have been addressed by sharply tighter monetary policy.
While investment income on these assets can be volatile, based on current plans, we expect to earn 9.0% on these assets over the long-term. 61 Table of Contents The following table presents the alternative investment income and the average assets of alternative investments as of the dates indicated: Year Ended December 31, ($ in millions) 2023 2022 Wealth Solutions: Alternative investment income $ 66 $ 91 Average alternative investments 1,606 1,608 Health Solutions: Alternative investment income 7 8 Average alternative investments 169 164 Investment Management: Alternative investment income 27 1 Average alternative investments 322 337 Liquidity and Capital Resources Liquidity refers to our ability to access sufficient sources of cash to meet the requirements of our operating, investing and financing activities.
While investment income on these assets can be volatile, based on current plans, we expect to earn 9% on these assets over the long-term. 60 Table of Contents The following table presents the alternative investment income and the average assets of alternative investments as of the dates indicated: Year Ended December 31, ($ in millions) 2024 2023 Wealth Solutions: Alternative investment income $ 111 $ 66 Average alternative investments 1,532 1,606 Health Solutions: Alternative investment income 15 7 Average alternative investments 222 169 Investment Management: Alternative investment income 21 27 Average alternative investments 337 322 Liquidity and Capital Resources Liquidity refers to our ability to access sufficient sources of cash to meet the requirements of our operating, investing and financing activities.
Credit Support of Subsidiaries Voya Financial, Inc. provides guarantees to certain of our subsidiaries to support various business requirements: • Voya Financial, Inc. guarantees the obligations of Voya Holdings under the $13 million principal amount 8.42% Series B Capital Securities due April 1, 2027, and provides a back-to-back guarantee to ING Group in respect of its guarantee of $218 million combined principal amount of Aetna Notes. • Voya Financial, Inc. and Voya Holdings provide a guarantee of payment of obligations to certain subsidiaries under certain surplus notes held by those subsidiaries.
Credit Support of Subsidiaries Voya Financial, Inc. provides guarantees to certain of our subsidiaries to support various business requirements: • Voya Financial, Inc. guarantees the obligations of Voya Holdings under the $13 million principal amount of the 8.42% Equitable of Iowa Companies Capital Trust II Notes due 2027, and provides a back-to-back guarantee to ING Group in respect of its guarantee of $218 million combined principal amount of Aetna Notes. • Voya Financial, Inc. and Voya Holdings provide a guarantee of payment of obligations to certain subsidiaries under certain surplus notes held by those subsidiaries.
Debt As of December 31, 2023, we had $1 million of short-term debt borrowings outstanding consisting entirely of the current portion of long-term debt.
Debt As of December 31, 2024, we had $399 million of short-term debt borrowings outstanding consisting entirely of the current portion of long-term debt.
The expected rate of return for 2023 was 5.82%, net of expenses, for the Retirement Plan. As of December 31, 2023, the effect of a change in the actual rate of return on the net periodic benefit cost is presented in the table below.
The expected rate of return for 2024 was 6.00%, net of expenses, for the Retirement Plan. As of December 31, 2024, the effect of a change in the actual rate of return on the net periodic benefit cost is presented in the table below.
AUM includes general account assets managed by our Investment Management segment in which we bear the investment risk and separate account assets in which the contract owner bears the investment risk and institutional/mutual funds, which are excluded from our balance sheets.
AUM includes general account assets managed by our Investment Management segment in which we bear the investment risk, separate account assets in which the contract owner bears the investment risk, and off-balance sheet institutional/mutual funds.
The following table presents the notional amounts and fair values of interest rate derivatives not qualifying for hedge accounting and used in our CMO-B portfolio as of the dates indicated: December 31, 2023 December 31, 2022 ($ in millions) Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Interest Rate Contracts $ 11,234 $ 143 $ 321 $ 12,414 $ 215 $ 350 The Company utilize interest rate futures and interest rate swaps as a part of the CMO-B portfolio to hedge interest rate risk.
The following table presents the notional amounts and fair values of interest rate derivatives not qualifying for hedge accounting and used in our CMO-B portfolio as of the dates indicated: December 31, 2024 December 31, 2023 ($ in millions) Notional Amount Asset Fair Value Liability Fair Value Notional Amount Asset Fair Value Liability Fair Value Interest Rate Contracts $ 11,669 $ 141 $ 271 $ 11,234 $ 143 $ 321 The Company utilizes interest rate futures and interest rate swaps as a part of the CMO-B portfolio to hedge interest rate risk.
In 2023, the actual return on our Retirement Plan assets was approximately 9.0%, resulting in an actuarial gain of $49 million. In 2022, the actual return on our Retirement Plan assets was approximately (19.1)%, resulting in an actuarial loss of $534 million.
In 2023, the actual return on our Retirement Plan assets was approximately 9.0%, resulting in an actuarial gain of $49 million.
The accrued vested cash pension balance benefit is portable; participants can take it if they leave us. 76 Table of Contents The table below summarizes the components of the net actuarial (gains) losses related to the Plans' pension obligations recognized within Operating expenses in our Consolidated Statements of Operations for the periods indicated: Year Ended December 31, (Gain)/Loss Recognized ($ in millions) 2023 2022 Discount Rate $ 37 $ (571) Asset Returns (49) 534 Demographic Data and other 8 31 Total Net Actuarial (Gain)/Loss Recognized $ (4) $ (6) For the year ended December 31, 2023, we decreased our Plans' discount rate by 0.19% resulting in an increase in our benefit obligations and a corresponding actuarial loss of $37 million.
The accrued vested cash pension balance benefit is portable; participants can take it if they leave us. 75 Table of Contents The table below summarizes the components of the net actuarial (gains) losses related to the Plans' pension obligations recognized within Operating expenses in our Consolidated Statements of Operations for the periods indicated: Year Ended December 31, (Gain)/Loss Recognized ($ in millions) 2024 2023 Discount Rate $ (110) $ 37 Asset Returns 71 (49) Demographic Data and other 13 8 Total Net Actuarial (Gain)/Loss Recognized $ (26) $ (4) For the year ended December 31, 2024, we increased our Plans' discount rate by 0.60% resulting in a decrease in our benefit obligations and a corresponding actuarial gain of $110 million.
($ in millions) ($ in millions) As of December 31, 2023 As of December 31, 2022 CAL TAC Ratio CAL TAC Ratio $ 778 $ 3,365 433 % $ 817 $ 4,002 490 % For additional information regarding RBC, see Business-Regulation-Financial Regulation in Part I, Item 1. of this Annual Report on Form 10-K.
($ in millions) ($ in millions) As of December 31, 2024 As of December 31, 2023 CAL TAC Ratio CAL TAC Ratio $ 821 $ 3,183 388 % $ 778 $ 3,365 433 % For additional information regarding RBC, see Business-Regulation-Financial Regulation in Part I, Item 1. of this Annual Report on Form 10-K.
In December of 2023, Moody’s confirmed its outlook for the U.S. life insurance sector as stable. Also, in November of 2023, A.M. Best maintained a stable outlook on the U.S. life insurance sector and Fitch changed its outlook from neutral to improving for the North American life insurance sector.
In conjunction with the upgrade, Fitch revised its outlook to Stable. In December of 2024, Moody’s confirmed its outlook for the U.S. life insurance sector as stable. Also, in December of 2024, A.M. Best maintained a stable outlook on the U.S. life insurance sector and Fitch changed its outlook from improving to stable for the North American life insurance sector.
As of December 31, 2022 such securities consist of (i) the 5.7% senior notes due 2043, the 3.65% senior notes due 2026, the 4.8% senior notes due 2046, with an aggregate principal amount of $1.1 billion and (ii) the 5.65% fixed-to-floating rate junior subordinated notes due 2053 and the 4.7% fixed-to-floating rate junior subordinated notes due 2048, with an aggregate principal amount of $724 million.(collectively, the "Junior Subordinated Notes" and, together with the Senior Notes, the "Registered Notes").
As of December 31, 2024, such securities consist of (i) the 3.976% senior notes due 2025, the 3.65% senior notes due 2026, the 5.00% senior notes due 2034, the 5.7% senior notes due 2043, and the 4.8% senior notes due 2046, with an aggregate principal amount of $1.9 billion (collectively, the "Senior Notes") and (ii) the 4.7% fixed-to-floating rate junior subordinated notes due 2048, with a principal amount of $336 million (the "Junior Subordinated Notes" and, together with the Senior Notes, the "Registered Notes").
For the years ended December 31, 2023 and 2022, dividends, net of capital contributions, received by Voya Financial, Inc. and Voya Holdings from non-life subsid iaries were $82 million and $75 million, respectively.
For the years ended December 31, 2024 and 2023, dividends, net of capital contributions, received by Voya Financial, Inc. and Voya Holdings from non-life subsidiaries were $57 million and $82 million, respectively.
During the fourth quarter of 2023, the Company recognized an impairment loss in relation to a management contract rights intangible asset associated with a prior acquisition within the Investment Management segment, which is included in Operating expenses in the Consolidated Statements of Operations for the year ended December 31, 2023, and excluded from Adjusted operating earnings before income taxes.
During the fourth quarter of 2023, the Company recognized an impairment loss of $33 million in relation to management contract rights associated with a prior acquisition within the Investment Management segment, which was included in Operating expenses in the Consolidated Statements of Operations, and excluded from Adjusted operating earnings before income taxes.
If the Subsidiary Guarantor does not make such payment, any holder of the guaranteed security may immediately bring suit directly against the Subsidiary Guarantor for payment of amounts due and payable. 87 Table of Contents Set forth below is summarized financial information of the Obligor Group, as presented on a combined basis.
If the Subsidiary Guarantor does not make such payment, any holder of the guaranteed security may immediately bring suit directly against the Subsidiary Guarantor for payment of amounts due and payable. Set forth below is summarized financial information of the Obligor Group, as presented on a combined basis. Inter-combination transactions and balances within the Obligor Group have been eliminated.
Our Investment Management segment generates revenue through the collection of management fees on the assets we manage. These fees are typically based upon a percentage of AUM. In certain investment management fee arrangements, we may also receive performance-based incentive fees when the return on AUM exceeds certain benchmark returns or other performance hurdles.
Investment Management’s primary source of revenue is management fees collected on the assets we manage. These fees are typically based on a percentage of AUM. In certain investment management fee arrangements, we may also receive performance-based incentive fees when the return on AUM exceeds certain benchmark returns or other performance hurdles.
This measure reports the loss ratio related to mortality on life products and morbidity on health products. Net gains (losses) and Net investment gains (losses) and related charges and adjustments include changes in the fair value of derivatives.
This measure reports the loss ratio related to mortality on life products and morbidity on health products. Net gains (losses) and Net investment gains (losses) include changes in the fair value of derivatives. Increases in the fair value of derivative assets or decreases in the fair value of derivative liabilities result in gains.
Wealth Solutions The following table presents Adjusted operating earnings before income taxes of our Wealth Solutions segment for the periods indicated: Year Ended December 31, ($ in millions) 2023 2022 Adjusted operating revenues: Net investment income and net gains (losses) $ 1,737 $ 1,756 Fee income 966 953 Other revenue 74 70 Total adjusted operating revenues 2,776 2,778 Operating benefits and expenses: Interest credited and other benefits to contract owners/policyholders 895 886 Operating expenses 1,162 1,101 Net amortization of DAC/VOBA 88 93 Total operating benefits and expenses 2,144 2,081 Adjusted operating earnings before income taxes $ 632 $ 697 54 Table of Contents The following table presents Net revenue and Adjusted operating margin for our Wealth Solutions segment as of the dates indicated: Year Ended December 31, ($ in millions) 2023 2022 Adjusted operating earnings before income taxes $ 632 $ 697 Total adjusted operating revenues 2,776 2,778 Less: Interest credited and other benefits to contract owners/policyholders 895 886 Net revenue $ 1,881 $ 1,892 Adjusted operating margin (1) 33.6 % 36.9 % (1) Adjusted operating earnings before income taxes divided by Net Revenue.
Wealth Solutions The following table presents Adjusted operating earnings before income taxes of our Wealth Solutions segment for the periods indicated: Year Ended December 31, ($ in millions) 2024 2023 Adjusted operating revenues: Net investment income and net gains (losses) $ 1,733 $ 1,737 Fee income 1,099 966 Other revenue 73 74 Total adjusted operating revenues 2,905 2,776 Operating benefits and expenses: Interest credited and other benefits to contract owners/policyholders 849 895 Operating expenses 1,153 1,162 Net amortization of DAC/VOBA 83 88 Total operating benefits and expenses 2,085 2,144 Adjusted operating earnings before income taxes $ 820 $ 632 54 Table of Contents The following table presents Net revenue and Adjusted operating margin for our Wealth Solutions segment as of the dates indicated: Year Ended December 31, ($ in millions) 2024 2023 Adjusted operating earnings before income taxes $ 820 $ 632 Total adjusted operating revenues 2,905 2,776 Less: Interest credited and other benefits to contract owners/policyholders 849 895 Net revenue $ 2,056 $ 1,881 Adjusted operating margin (1) 39.9 % 33.6 % (1) Adjusted operating earnings before income taxes divided by Net Revenue.
As of December 31, 2023, 86.7% and 11.6% of Other ABS investments were designated as NAIC-1 and NAIC-2, respectively. As of December 31, 2022, 82.9% and 15.4% of Other ABS investments were designated as NAIC-1 and NAIC-2, respectively.
As of December 31, 2024, 88.9% and 9.3% of Other ABS investments were designated as NAIC-1 and NAIC-2, respectively. As of December 31, 2023, 86.7% and 11.6% of Other ABS investments were designated as NAIC-1 and NAIC-2, respectively.
After adjusting for the two items referenced immediately above, the following table presents a reconciliation of Income (loss) from operations before income taxes from our CMO-B portfolio to Adjusted operating earnings before income taxes from our CMO-B portfolio for the periods indicated: Year Ended December 31, ($ in millions) 2023 2022 2021 Income (loss) before income taxes $ 194 $ 52 $ (43) Realized gains (losses) including impairment (5) 17 (27) Fair value adjustments 22 146 239 Total adjustments to income (loss) 18 163 212 Adjusted operating earnings before income taxes $ 211 $ 215 $ 169 Structured Securities Residential Mortgage-backed Securities The following tables present our residential mortgage-backed securities as of the dates indicated: December 31, 2023 ($ in millions) Amortized Cost Gross Unrealized Capital Gains Gross Unrealized Capital Losses Embedded Derivatives Fair Value Prime Agency $ 1,925 $ 20 $ 36 $ — $ 1,909 Prime Non-Agency 1,706 12 218 — 1,500 Alt-A 52 4 1 2 57 Sub-Prime (1) 24 1 1 — 24 Total $ 3,707 $ 37 $ 256 $ 2 $ 3,490 (1) Includes subprime other asset backed securities.
After adjusting for the two items referenced immediately above, the following table presents a reconciliation of Income (loss) before income taxes from our CMO-B portfolio to Adjusted operating earnings before income taxes from our CMO-B portfolio for the periods indicated: Year Ended December 31, ($ in millions) 2024 2023 2022 Income (loss) before income taxes $ 213 $ 194 $ 52 Realized gains (losses) including impairment (1) (5) 17 Fair value adjustments (33) 22 146 Total adjustments to income (loss) (34) 18 163 Adjusted operating earnings before income taxes $ 179 $ 211 $ 215 Structured Securities Residential Mortgage-backed Securities The following tables present our residential mortgage-backed securities as of the dates indicated: December 31, 2024 ($ in millions) Amortized Cost Gross Unrealized Capital Gains Gross Unrealized Capital Losses Embedded Derivatives Fair Value Prime Agency $ 2,026 $ 12 $ 51 $ (5) $ 1,982 Prime Non-Agency 1,625 12 208 — 1,429 Alt-A 48 4 1 1 52 Sub-Prime (1) 20 1 1 — 20 Total $ 3,719 $ 29 $ 261 $ (4) $ 3,483 (1) Includes subprime other asset backed securities.
The following table summarizes the estimated ratio of TAC to CAL on a combined basis primarily for our Principal Insurance Subsidiaries adjusted for an intercompany loan o f $435 million an d $121 million as of December 31, 2023 and 2022, respectively.
The following table summarizes the estimated ratio of TAC to CAL on a combined basis primarily for our Principal Insurance Subsidiaries adjusted for certain intercompany loans and transactions of $383 million and $435 million as of December 31, 2024 and 2023, respectively.
In addition, the premium amortization and change in fair value for securities designated under the FVO are included in Net gains (losses), whereas the coupon for these securities is included in Net investment income.
The net coupon settlement on interest rate swaps hedging CMO-B securities that is included in Net gains (losses) is reflected. In addition, the premium amortization and change in fair value for securities designated under the FVO are included in Net gains (losses), whereas the coupon for these securities is included in Net investment income.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

18 edited+1 added−3 removed26 unchanged
Biggest changeWe are not aware of any material disputes arising from these reviews or other communications with the counterparties that would affect collectability, and, therefore, as of December 31, 2023, no allowance for uncollectible amounts was recorded. 92 Table of Contents The following table summarizes our reinsurance recoverable balances, including collateral received and credit and financial strength ratings for our 10 largest reinsurance recoverable balances as of December 31, 2023: Financial Strength Rating Credit Rating Reinsurance Recoverable % Collateralized (1) S&P Moody's S&P Moody's ($ in millions) Parent Company/Principal Reinsurers Resolution Life Group Holdings LP 9,241 83% Security Life of Denver Insurance Co Baa1 Resolution Life Co Lincoln National Corp 982 100% BBB+ Baa2 Lincoln Life & Annuity Co of New York A+ A2 Lincoln National Life Insurance Co Reinsurance Group of America Inc 936 99% A Baa1 RGA Reinsurance Co AA- A1 Sun Life Financial Inc 298 99% A+ Sun Life Assurance Co of Canada (US) AA Aa3 Sun Life and Health Insurance Co AA Prudential Public Limited Company 130 0% A A2 Jackson National Life Insurance Co Enstar Group Limited 81 100% BBB+ Fitzwilliam Ins Ltd Swiss Re Ltd 36 0% AA- Aa3 Swiss Re Life & Health America Inc AA- Aa3 Westport Insurance Corp AA- Aa3 Athene Holding Ltd 27 0% A- Baa1 Athene Life Re Ltd A+ A1 Cigna Corp 6 0% A- Baa1 Connecticut General Life Insurance Co A A2 Scor SE 6 44% A+ A1 SCOR Global Life US Reinsurance Co Inc A+ SCOR Global Life Re Insurance Co of Delaware A+ (1) Collateral includes LOCs, assets held in trust and funds withheld.
Biggest changeWe are not aware of any material disputes arising from these reviews or other communications with the counterparties that would affect collectability, and, therefore, as of December 31, 2024, no allowance for uncollectible amounts was recorded. 91 Table of Contents The following table summarizes our reinsurance recoverable balances, including collateral received and credit and financial strength ratings for our 10 largest reinsurance recoverable balances as of December 31, 2024: Financial Strength Rating Credit Rating Reinsurance Recoverable % Collateralized (1) S&P Moody's S&P Moody's ($ in millions) Parent Company/Principal Reinsurers Resolution Life Group Holdings LP $ 8,623 86% Security Life of Denver Insurance Co A3 Resolution Life Co Reinsurance Group of America Inc 925 99% A Baa1 RGA Reinsurance Co AA- A1 Lincoln National Corp 899 100% BBB+ Baa2 Lincoln Life & Annuity Co of New York A+ A2 Lincoln National Life Insurance Co A+ A2 Sun Life Financial Inc 317 99% A+ Sun Life Assurance Co of Canada (US) AA Aa3 Sun Life and Health Insurance Co AA Jackson Financial Inc 124 0% BBB Baa3 Jackson National Life Insurance Co Enstar Group Limited 83 88% BBB+ Cavello Bay Reins LTD A Swiss Re Ltd 30 0% AA- Aa3 Swiss Re Life & Health America Inc AA- Aa3 Westport Insurance Corp AA- Aa3 Athene Holding Ltd 23 0% A- Baa1 Athene Life Re Ltd A+ A1 Cigna Corp 7 0% A- Baa1 Connecticut General Life Insurance Co A A2 Benefits Re, LLC 7 100% Supplemental Re (1) Collateral includes LOCs, assets held in trust and funds withheld.
We manage our risk appetite based on several key risk metrics, including: • At-risk metrics on sensitivities of earnings and regulatory capital; • Stress scenario results: forecasted results under stress events covering the impact of changes in interest rates, equity markets, mortality rates, credit default and spread levels, and combined impacts; and • Economic capital: the amount of capital required to cover extreme scenarios.
We manage our risk appetite based on several key risk metrics, including: • At-risk metrics on sensitivities of earnings and regulatory capital; • Stress scenario results: forecasted results under stress events covering the impact of changes in interest rates, equity markets, mortality/morbidity rates, credit default and spread levels, and combined impacts; and • Economic capital: the amount of capital required to cover extreme scenarios.
The analysis includes the effects of: • the timing and amount of redemptions and prepayments in our asset portfolio; • our derivative portfolio; • death benefits and other claims payable under the terms of our insurance products; • lapses and surrenders in our insurance products; 89 Table of Contents • minimum interest guarantees in our insurance products; and • book value guarantees in our insurance products.
The analysis includes the effects of: • the timing and amount of redemptions and prepayments in our asset portfolio; • our derivative portfolio; • death benefits and other claims payable under the terms of our insurance products; • lapses and surrenders in our insurance products; 88 Table of Contents • minimum interest guarantees in our insurance products; and • book value guarantees in our insurance products.
Percent collateralized is based on the total of individual contractual exposures aggregated at the reinsurer Parent Company level, which may differ for each individual contractual exposure. 93 Table of Contents
Percent collateralized is based on the total of individual contractual exposures aggregated at the reinsurer Parent Company level, which may differ for each individual contractual exposure. 92 Table of Contents
Each risk that is managed has been mapped for oversight by the Board of Directors or appropriate Board Committees. The Chief Risk Officer ("CRO") reports to the Chief Executive Officer and has direct access to the Board on a regular basis. The Company’s Board of Directors and Board Committees are directly involved within the risk framework.
Each risk that is managed has been mapped for oversight by the Risk Committee of the Board of Directors. The Chief Risk Officer ("CRO") reports to the Chief Executive Officer and has direct access to the Board on a regular basis. The Company’s Board of Directors and Board Committees are directly involved within the risk framework.
(2) (Decreases) in assets or (decreases) in liabilities are presented in parentheses. Increases in assets or increases in liabilities are presented without parentheses. (3) Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within Stabilizer and MCGs.
(2) Increases in assets and liabilities are presented without parentheses while (decreases) in assets and liabilities are presented with parentheses. (3) Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within Stabilizer and MCGs.
Examples include, but are not limited to, the following: • At-risk limits on sensitivities of earnings and regulatory capital; • Duration mismatch limits; • Credit risk limits; • Liquidity limits; • Mortality concentration limits; • Catastrophe and mortality exposure retention limits for our insurance risk; and • Investment and derivative guidelines.
We have implemented several limit structures to manage risk. Examples include, but are not limited to, the following: • At-risk limits on sensitivities of earnings and regulatory capital; • Duration mismatch limits; • Credit risk limits; • Liquidity limits; • Mortality/morbidity concentration limits; • Catastrophe and mortality/morbidity exposure retention limits for our insurance risk; and • Investment and derivative guidelines.
Our Risk Committee discusses and approves all risk policies and reviews and approves risks associated with our activities. This includes volatility (affecting earnings and value), exposure (required capital and market risk) and insurance risks. Each business has a Committee that reviews business specific risks and is governed by the Risk Committee. We have implemented several limit structures to manage risk.
Our Management Risk Committee discusses and approves all risk policies and reviews and approves risks associated with our activities. This includes volatility (affecting earnings and value), exposure (required capital and market risk) and insurance risks. Each business has a Committee that reviews business specific risks and is governed by the Management Risk Committee.
The impact of basis risk could result in larger differences between the change in fair value of the equity-based derivatives and the related living benefit features, in comparison to the hypothetical test scenarios. 91 Table of Contents The following table summarizes the net estimated potential change in fair value from an instantaneous increase and decrease in all equity market benchmark levels of 10% as of December 31, 2023: As of December 31, 2023 Hypothetical Change in Fair Value (1) ($ in millions) Notional Fair Value + 10% Equity Shock -10% Equity Shock Financial assets with equity market risk: Equity securities, at fair value $ — $ 236 $ 24 $ (24) Limited partnerships/corporations — 1,621 98 (98) Derivatives: Equity futures and total return swaps 220 1 17 (17) Equity options 35 1 — — (1) (Decreases) in assets or (decreases) in liabilities are presented in parentheses.
The impact of basis risk could result in larger differences between the change in fair value of the equity-based derivatives and the related living benefit features, in comparison to the hypothetical test scenarios. 90 Table of Contents The following table summarizes the net estimated potential change in fair value from an instantaneous increase and decrease in all equity market benchmark levels of 10% as of December 31, 2024: As of December 31, 2024 Hypothetical Change in Fair Value (1) ($ in millions) Notional Fair Value + 10% Equity Shock -10% Equity Shock Financial assets with equity market risk: Equity securities, at fair value $ — $ 246 $ 25 $ (25) Limited partnerships/corporations — 1,836 110 (110) Derivatives: Equity futures and total return swaps 251 (8) 20 (20) Equity options 35 1 — — (1) Increases in assets and liabilities are presented without parentheses while (decreases) in assets and liabilities are presented with parentheses.
Increases in assets or increases in liabilities are presented without parentheses. Market Risk Related to Credit Risk Credit risk is primarily embedded in the general account portfolio. The carrying value of our fixed maturity, including securities pledged, and equity portfolio totaled $28.8 billion and $30.7 billion as of December 31, 2023 and 2022, respectively.
Market Risk Related to Credit Risk Credit risk is primarily embedded in the general account portfolio. The carrying value of our fixed maturity, including securities pledged, and equity portfolio totaled $27.7 billion and $28.8 billion as of December 31, 2024 and 2023, respectively. Our credit risk materializes primarily as impairment losses and/or credit risk related trading losses.
While the test scenarios are for illustrative purposes only and do not reflect our expectations regarding future interest rates or the performance of fixed income markets, they are a near-term, reasonably possible hypothetical change that illustrates the potential impact of such events.
While the test scenarios are for illustrative purposes only and do not reflect our expectations regarding future interest rates or the performance of fixed income markets, they are near-term, reasonably possible hypothetical changes that illustrate the potential impact of such events. These tests do not measure the change in value that could result from non-parallel shifts in the yield curve.
Our credit risk materializes primarily as impairment losses and/or credit risk related trading losses. We are exposed to occasional cyclical economic downturns, during which impairment losses may be significantly higher than the long-term historical average. This is offset by years where we expect the actual impairment losses to be substantially lower than the long-term average.
We are exposed to occasional cyclical economic downturns, during which impairment losses may be significantly higher than the long-term historical average. This is offset by years where we expect the actual impairment losses to be substantially lower than the long-term average. Credit risk in the portfolio can also materialize as increased capital requirements caused by rating down-grades.
As a result, the actual change in fair value from a 100 basis point change in interest rates could be different from that indicated by these calculations. 90 Table of Contents The following table summarizes the net estimated potential change in fair value from hypothetical 100 basis point upward and downward shifts in interest rates as of December 31, 2023: As of December 31, 2023 Hypothetical Change in Fair Value (2) ($ in millions) Notional Fair Value (1) + 100 Basis Points Yield Curve Shift - 100 Basis Points Yield Curve Shift Financial assets with interest rate risk: Fixed maturity securities, including securities pledged $ — $ 28,611 $ (1,745) $ 1,948 Mortgage loans on real estate — 4,941 (157) 168 Financial liabilities with interest rate risk: Investment contracts: Funding agreements without fixed maturities and deferred annuities (3) — 34,856 (1,624) 1,934 Funding agreements with fixed maturities — 1,178 (1) 1 Supplementary contracts and immediate annuities — 571 (42) 5 Derivatives: Interest rate contracts 16,785 84 246 (259) Long-term debt — 1,998 (108) 123 Stabilizer and MCGs — 9 11 12 Embedded derivatives on reinsurance — (12) 29 (34) (1) Separate account assets and liabilities which are interest sensitive are not included herein as any interest rate risk is borne by the holder of separate account.
As a result, the actual change in fair value from a 100 basis point change in interest rates could be different from that indicated by these calculations. 89 Table of Contents The following table summarizes the net estimated potential change in fair value from hypothetical 100 basis point upward and downward shifts in interest rates as of December 31, 2024: As of December 31, 2024 Hypothetical Change in Fair Value (2) ($ in millions) Notional Fair Value (1) + 100 Basis Points Yield Curve Shift - 100 Basis Points Yield Curve Shift Financial assets with interest rate risk: Fixed maturity securities, including securities pledged $ — $ 27,454 $ (1,646) $ 1,851 Mortgage loans on real estate — 4,459 (136) 146 Financial liabilities with interest rate risk: Investment contracts: Funding agreements without fixed maturities and deferred annuities (3) — 32,877 (1,513) 2,209 Funding agreements with fixed maturities — 1,257 — — Supplementary contracts and immediate annuities — 515 (37) 9 Derivatives: Interest rate contracts 14,644 67 148 (169) Long-term debt — 2,023 (81) 91 Stabilizer and MCGs — 19 18 (1) Embedded derivatives on reinsurance — (14) 23 (27) (1) Separate account assets and liabilities, which are interest rate sensitive, are not included herein as any interest rate risk is borne by the holder of separate account.
Credit risk in the portfolio can also materialize as increased capital requirements caused by rating down-grades. The effect of rating migration on our capital requirements is also dependent on the economic cycle and increased asset impairment levels may go hand in hand with increased asset related capital requirements.
The effect of rating migration on our capital requirements is also dependent on the economic cycle and increased asset impairment levels may go hand in hand with increased asset related capital requirements. We manage the risk of default and rating migration by applying disciplined credit evaluation and underwriting standards and prudently limiting allocations to lower quality, higher risk investments.
In order to minimize the risk of credit loss on such contracts, we diversify our exposures among several counterparties and limit the amount of exposure to each based on credit rating. For most counterparties, we have collateral agreements in place that would substantially limit our credit losses in case of a counterparty default.
We also have credit risk related to the ability of our derivatives and reinsurance counterparties to honor their obligations to pay the contract amounts under various agreements. In order to minimize the risk of credit loss on such contracts, we diversify our exposures among several counterparties and limit the amount of exposure to each based on credit rating.
We also generally limit our selection of counterparties that we do new transactions with to those with an "A-" credit rating or above. When exceptions are made to that principle, we ensure that we obtain collateral to mitigate our risk of loss.
For most counterparties, we have collateral agreements in place that would substantially limit our credit losses in case of a counterparty default. We also generally limit our selection of counterparties that we do new transactions with to those with an "A-" credit rating or above.
For derivatives counterparty risk exposures (which includes reverse repurchase and securities lending transactions), we measure and monitor our risks on a market value basis daily. Refer to the Derivative Financial Instruments Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for further details of these items.
Refer to the Derivative Financial Instruments Note in our Consolidated Financial Statements in Part II, Item 8. of this Annual Report on Form 10-K for further details of these items. In the normal course of business, certain reinsurance recoverables are subject to reviews by the reinsurers.
Limit compliance is monitored on a daily, monthly or quarterly basis. Limit violations are reported to senior management and we are actively involved in decisions around curing such limit violations. We also have credit risk related to the ability of our derivatives and reinsurance counterparties to honor their obligations to pay the contract amounts under various agreements.
In addition, we diversify our exposure by issuer and country, using rating based issuer and country limits, as well as by industry segment, using specific investment constraints. Limit compliance is monitored on a daily, monthly or quarterly basis. Limit violations are reported to senior management and we are actively involved in decisions around curing such limit violations.
Removed
These tests do not measure the change in value that could result from non-parallel shifts in the yield curve.
Added
When exceptions are made to that principle, we ensure that we obtain collateral to mitigate our risk of loss. For derivatives counterparty risk exposures (which includes reverse repurchase and securities lending transactions), we measure and monitor our risks on a market value basis daily.
Removed
We manage the risk of default and rating migration by applying disciplined credit evaluation and underwriting standards and prudently limiting allocations to lower quality, higher risk investments. In addition, we diversify our exposure by issuer and country, using rating based issuer and country limits, as well as by industry segment, using specific investment constraints.
Removed
In the normal course of business, certain reinsur ance recoverables are subject to reviews by the reinsurers.

Other VOYA 10-K year-over-year comparisons