Voya Financial, Inc. (NYSE: VOYA), announced today fourth-quarter and full-year 2022 financial results:
"We generated significant growth in adjusted operating EPS, excluding notable items, for both fourth-quarter and full-year 2022, with results exceeding our annual growth target of 12% to 17%," said Heather Lavallee, chief executive officer, Voya Financial, Inc. "Our strong results reflect a commitment to the execution of our plans and — as we have shared previously — controlling what we can control, despite headwinds in the macro environment. This strong execution is evident in the net revenue growth we achieved across our businesses; the removal of stranded costs from prior divestitures ahead of schedule; and the rapid and successful execution of our transaction with Allianz Global Investors. Looking ahead, we will continue to execute on the net revenue growth, margin expansion and capital deployment plans that we shared at Investor Day in 2021. In support of this, we now expect to resume share repurchases in the second quarter of 2023.
"I am honored and excited to serve as Voya's CEO. I am optimistic about the continued growth opportunities before us, which are bolstered by our recent transactions, including our acquisition of Benefitfocus and our strategic distribution partnership with Allianz Global Investors. With our expanded scale, reach and capabilities, we are well positioned to meet the growing health, wealth and investment needs of our clients," added Lavallee.
_________________________
|
HIGHLIGHTS
CONSOLIDATED RESULTS
Fourth-quarter 2022 net income available to common shareholders was $190 million, or $1.77 per diluted share, compared with $403 million, or $3.36 per diluted share, in the fourth quarter of 2021. The decline was largely due to the absence of a $250 million release in the company’s tax valuation allowance in the fourth quarter of 2021, partially offset by the benefit of favorable tax adjustments primarily related to foreign tax credits in the fourth quarter of 2022. On a per-share basis, fourth-quarter 2022 results also reflect the benefit of share repurchases during 2022.
Fourth-quarter 2022 after-tax adjusted operating earnings were $233 million, or $2.18 per diluted share, compared with $229 million, or $1.90 per diluted share in the fourth quarter of 2021. The increase reflects the benefit of favorable tax adjustments primarily related to foreign tax credits, higher investment income in Wealth Solutions, the benefit of the Allianz Global Investors transaction in Investment Management, and higher underwriting results in Health Solutions, which were mostly offset by lower alternative investment income, lower investment capital revenues in Investment Management, and lower fee-based margins in Wealth Solutions. On a per-share basis, fourth-quarter 2022 results also reflect the benefit of share repurchases during 2022.
Full-year 2022 net income available to common shareholders was $474 million, or $4.30 per diluted share, compared with $2,090 million, or $16.61 per diluted share, in full-year 2021. The decrease was driven by the absence of gains related to Voya’s sale of its Individual Life and other legacy annuities businesses and the independent financial planning channel in 2021. Lower alternative investment income in 2022, the absence of a tax valuation allowance benefit in the fourth quarter of 2021, and unfavorable impacts to fee-based margin from lower equity market levels in 2022 also contributed to the year-over-year decline. This decline was partially offset by strong investment income and favorable underwriting results in Health Solutions in 2022.
Full-year 2022 after-tax adjusted operating earnings were $835 million, or $7.58 per diluted share, compared with $1,053 million, or $8.37 per diluted share in full-year 2021. The decrease was driven by lower alternative investment income and equity market levels in 2022, partially offset by favorable investment income in Wealth Solutions, higher underwriting results in Health Solutions, and the benefit of the Allianz Global Investors transaction.
SEGMENT DISCUSSIONS
The following segment discussions compare the fourth quarter of 2022 with the fourth quarter of 2021, unless otherwise noted. All figures are presented before income taxes.
Wealth Solutions
Wealth Solutions adjusted operating earnings were $148 million, compared with $241 million. The change primarily reflects:
|
Trailing 12
|
Trailing 12
|
||||
($ in millions) |
12/31/2022 |
12/31/2021 |
||||
Net revenue |
$ |
1,891 |
|
$ |
2,346 |
|
Net revenue, excluding notables |
|
1,966 |
|
|
1,912 |
|
Adjusted operating margin |
|
37.4 |
% |
|
47.3 |
% |
Adjusted operating margin, excluding notables |
|
37.5 |
% |
|
35.5 |
% |
Full Service recurring deposits |
$ |
13,294 |
|
$ |
12,056 |
|
Full Service net flows |
$ |
2,953 |
|
$ |
576 |
|
|
|
|
||||
|
Three months
|
Three months
|
||||
($ in millions) |
12/31/2022 |
12/31/2021 |
||||
Total client assets |
$ |
474,277 |
|
$ |
536,246 |
|
|
|
|
||||
Full Service recurring deposits |
$ |
3,169 |
|
$ |
2,918 |
|
Full Service net flows |
$ |
952 |
|
$ |
(884 |
) |
Full Service client assets |
$ |
162,664 |
|
$ |
187,702 |
|
Wealth Solutions full-service recurring deposits were $13.3 billion for the year ended Dec. 31, 2022, up 10.3% compared with the prior-year period and within the company’s annual target of 10% to 12%. Fourth-quarter 2022 full-service recurring deposits were $3.2 billion.
Total client assets as of Dec. 31, 2022, were $474 billion, down from Dec. 31, 2021, as growth in the business, including positive net flows over the period, was more than offset by lower equity market levels.
Health Solutions
Health Solutions adjusted operating earnings were $74 million, compared with $33 million. The change primarily reflects:
|
Trailing 12
|
Trailing 12
|
||||
($ in millions) |
12/31/2022 |
12/31/2021 |
||||
Net revenue |
$ |
890 |
|
$ |
722 |
|
Net revenue, excluding notables |
|
878 |
|
|
777 |
|
Adjusted operating margin |
|
32.8 |
% |
|
28.3 |
% |
Adjusted operating margin, excluding notables |
|
31.9 |
% |
|
33.5 |
% |
Total aggregate loss ratio* |
|
69.4 |
% |
|
72.5 |
% |
|
|
|
||||
|
Three months
|
Three months
|
||||
($ in millions) |
12/31/2022 |
12/31/2021 |
||||
Group Life, Disability and Other |
$ |
833 |
|
$ |
752 |
|
Stop Loss |
|
1,258 |
|
|
1,181 |
|
Voluntary |
|
689 |
|
|
576 |
|
Total annualized in-force premiums |
$ |
2,780 |
|
$ |
2,510 |
|
* Total aggregate loss ratio for the TTM ended Dec. 31, 2022, excludes a $59 million reserve release related to the company’s annual assumption update. |
Health Solutions annualized in-force premiums were $2.8 billion in the fourth quarter of 2022, up 10.8% compared with the prior-year period and above the company's 7% to 10% annual target. The increase in annualized in-force premiums reflects growth across all product lines, including a 20% increase in Voluntary; an 11% increase in Group Life, Disability and Other; and a 7% increase in Stop Loss.
Investment Management
Investment Management adjusted operating earnings were $57 million (including $14 million attributable to Allianz noncontrolling interest), compared with $59 million. The change primarily reflects:
|
Trailing 12
|
Trailing 12
|
||||
($ in millions) |
12/31/2022 |
12/31/2021 |
||||
Net revenue |
$ |
756 |
|
$ |
783 |
|
Net revenue, excluding notables |
|
785 |
|
|
708 |
|
Adjusted operating margin |
|
24.7 |
% |
|
30.7 |
% |
Adjusted operating margin, excluding notables |
|
26.8 |
% |
|
25.1 |
% |
|
|
|
||||
Institutional net flows |
$ |
3,675 |
|
$ |
9,075 |
|
Retail net flows |
|
(2,601 |
) |
|
(1,304 |
) |
Total net flows* |
|
1,074 |
|
|
7,770 |
|
|
|
|
||||
|
Three months
|
Three months
|
||||
($ in millions) |
12/31/2022 |
12/31/2021 |
||||
Institutional net flows |
$ |
345 |
|
$ |
9,516 |
|
Retail net flows |
|
(198 |
) |
|
(520 |
) |
Total net flows* |
|
147 |
|
|
8,995 |
|
|
|
|
||||
Fixed income - public and other |
$ |
138,287 |
|
$ |
121,220 |
|
Privates and alternatives |
|
99,652 |
|
|
79,728 |
|
Equity |
|
83,424 |
|
|
62,884 |
|
Total AUM |
$ |
321,363 |
|
$ |
263,832 |
|
* Excludes sub-advisor replacements and divested businesses. |
Investment Management net flows (excluding sub-advisor replacements and divested businesses) were $1.1 billion for the year ended Dec. 31, 2022. Fourth-quarter 2022 net inflows were $147 million as inflows from insurance and Allianz Global Investors channels as well as the closing of two CLOs were mostly offset by U.S. retail and private equity outflows.
Total AUM was $321 billion as of Dec. 31, 2022, up 22% from Dec. 31, 2021. The increase was driven by the Allianz Global Investors transaction and positive net flows over the period, both of which were partially offset by lower equity and fixed income market levels.
Corporate
Corporate adjusted operating losses were $52 million compared with adjusted operating losses of $54 million. The change was primarily driven by lower interest expense due to debt extinguishments, partially offset by an unfavorable change in amortization of intangibles.
Supplementary Financial Information
More detailed financial information can be found in the company’s Quarterly Investor Supplement, which is available on Voya’s investor relations website, investors.voya.com.
Earnings Call and Slide Presentation
Voya will host a conference call on Wednesday, Feb. 8, 2023, at 10 a.m. ET, to discuss the company’s fourth-quarter and full-year 2022 results. The call and slide presentation can be accessed via the company’s investor relations website at investors.voya.com. A replay of the call will be available on the company’s investor relations website at investors.voya.com starting at 1 p.m. ET on Feb. 8, 2023.
About Voya Financial
Voya Financial, Inc. (NYSE: VOYA), is a leading health, wealth and investment company with 7,200 employees. Through products, solutions and technologies, Voya helps its 14.3 million individual, workplace and institutional clients become well planned, well invested and well protected. Benefitfocus, a newly joined Voya company, extends Voya’s workplace benefits and savings reach and capabilities by providing benefits administration capabilities to 16.5 million individual subscription employees across employer and health plan clients. Certified as a “Great Place to Work” by the Great Place to Work® Institute, Voya is purpose-driven and equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible. Voya has earned recognition as: one of the World’s Most Ethical Companies® by the Ethisphere Institute; a member of the Bloomberg Gender-Equality Index; and a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.
Use of Non-GAAP Financial Measures
We believe that Adjusted operating earnings before income taxes provides a meaningful measure of our business and segment performance and enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions or other factors. We use the same accounting policies and procedures to measure segment Adjusted operating earnings before income taxes as we do for the directly comparable U.S. GAAP measure, which is Income (loss) from continuing operations before income taxes.
Adjusted operating earnings before income taxes does not replace Income (loss) from continuing operations before income taxes as a measure of our consolidated results of operations. Therefore, we believe that it is useful to evaluate both Income (loss) from continuing operations before income taxes and Adjusted operating earnings before income taxes when reviewing our financial and operating performance. Each segment’s Adjusted operating earnings before income taxes is calculated by adjusting Income (loss) from continuing operations before income taxes for the following items:
The adjusted operating earnings, after tax, is adjusted for tax expense. The adjusted operating tax expense is based on the actual income tax expense for the current period related to Income (loss) from continuing operations, adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate.
Income (loss) related to businesses exited or to be exited through reinsurance or divestment (including net investment gains (losses) on securities sold and expenses directly related to these transactions, and insignificant number of Individual Life, and non-Wealth Solutions annuities policies that were not part of the divested businesses) are excluded from Adjusted operating earnings before income taxes. When we present the adjustments to Income (loss) from continuing operations before income taxes on a consolidated basis, each adjustment excludes the relative portions attributable to businesses exited or to be exited through reinsurance or divestment.
The most directly comparable U.S. GAAP measure to Adjusted operating earnings before income taxes is Income (loss) from continuing operations before income taxes. For a reconciliation of Adjusted operating earnings before income taxes to Income (loss) from continuing operations before income taxes, see the tables that accompany this release, as well as our Quarterly Investor Supplement.
As a result of the Individual Life Transaction, the historical revenues and certain expenses of the divested businesses have been classified as discontinued operations. Historical revenues and certain expenses of the businesses that have been divested via reinsurance at closing of the Individual Life Transaction (including an insignificant amount of Individual Life and non-Wealth Solutions annuities that are not part of the transaction) are reported within continuing operations, but are excluded from adjusted operating earnings as businesses exited or to be exited through reinsurance or divestment. Expenses classified within discontinued operations and businesses exited or to be exited through reinsurance include only direct operating expenses incurred by these businesses and then only to the extent that the nature of such expenses was such that we ceased to incur such expenses upon the close of the Individual Life Transaction. Certain other direct costs of these businesses, including those relating to activities for which we provide transitional services and for which we are reimbursed under transition services agreements (“TSAs”) are reported within continuing operations along with the associated revenues from the TSAs. Additionally, indirect costs, such as those related to corporate and shared service functions that were previously allocated to the businesses sold or divested via reinsurance, are reported within continuing operations. These costs ("Stranded Costs") and the associated revenues from the TSAs are reported within continuing operations in Corporate, since we do not believe that they are representative of the future run-rate of revenues and expenses of the continuing operations of our business segments. We have implemented a cost reduction strategy to address Stranded Costs and completed the removal of Stranded Costs during the third quarter of 2022. Some transformation initiatives related to TSAs will continue beyond the third quarter of 2022, however, they are not expected to result in any net Stranded Costs.
In addition to Net income (loss) per common share, we report Adjusted operating earnings per common share (diluted) because we believe that Adjusted operating earnings before income taxes provides a meaningful measure of its business and segment performances and enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions and/or other factors.
Net Revenue and Adjusted Operating Margin
Forward-Looking and Other Cautionary Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company does not assume any obligation to revise or update these statements to reflect new information, subsequent events or changes in strategy. Forward-looking statements include statements relating to future developments in our business or expectations for our future financial performance and any statement not involving a historical fact. Forward-looking statements use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. Actual results, performance or events may differ materially from those projected in any forward-looking statement due to, among other things, (i) general economic conditions, particularly economic conditions in our core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) the effects of natural or man-made disasters, including pandemic events and cyber terrorism or cyber attacks, and specifically the current COVID-19 pandemic event, (v) mortality and morbidity levels, (vi) persistency and lapse levels, (vii) interest rates, (viii) currency exchange rates, (ix) general competitive factors, (x) changes in laws and regulations, such as those relating to Federal taxation, state insurance regulations and NAIC regulations and guidelines, (xi) changes in the policies of governments and/or regulatory authorities, (xii) our ability to successfully manage the separation of the Individual Life business that we sold to Resolution Life US on Jan. 4, 2021, including the transition services on the expected timeline and economic terms, and (xiii) our ability to realize the expected financial or other benefits from various acquisitions, including the transactions with Allianz Global Investors U.S. LLC and Benefitfocus, Inc. Factors that may cause actual results to differ from those in any forward-looking statement also include those described under “Risk Factors” and “Management’s Discussion and Analysis of Results of Operations and Financial Condition (“MD&A”) – Trends and Uncertainties” in our Annual Report on Form 10-K for the year ended Dec. 31, 2022, which the Company expects to file with the Securities and Exchange Commission on or before March 1, 2023.
VOYA-IR VOYA-CF
Reconciliation of Net Income (Loss) to Adjusted Operating Earnings and Earnings Per Share (Diluted) |
|||||||||||||
|
Three Months Ended |
||||||||||||
($ in millions, except per share) |
12/31/2022 |
|
12/31/2021 |
||||||||||
|
After-tax (1) |
Per share |
|
After-tax (1) |
Per share |
||||||||
|
|
|
|
|
|
||||||||
Net Income (loss) available to Voya Financial, Inc.'s common shareholders |
$ |
190 |
|
$ |
1.77 |
|
|
$ |
403 |
|
$ |
3.36 |
|
Less: |
|
|
|
|
|
||||||||
Net investment and guaranteed benefit gains (losses) and related charges and adjustments |
|
(10 |
) |
|
(0.09 |
) |
|
|
(70 |
) |
|
(0.58 |
) |
Income (loss) related to businesses exited or to be exited through reinsurance or divestment |
|
(24 |
) |
|
(0.22 |
) |
|
|
11 |
|
|
0.09 |
|
Other adjustments (2) |
|
(10 |
) |
|
(0.09 |
) |
|
|
233 |
|
|
1.96 |
|
Adjusted operating earnings |
$ |
233 |
|
$ |
2.18 |
|
|
$ |
229 |
|
$ |
1.90 |
|
(1) The adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss) from continuing operations, adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate. |
|||||||||||||
(2) “Other adjustments” primarily consists of transaction and integration costs associated with the Allianz Global Investors transaction in 2022 and other restructuring expenses (severance, lease write-offs, etc.), income (loss) on early extinguishment of debt, and tax adjustments including a tax valuation allowance release in 2021. |
Reconciliation of Net Income (Loss) to Adjusted Operating Earnings and Earnings Per Share (Diluted) |
|||||||||||||
|
Year-to-Date |
||||||||||||
($ in millions, except per share) |
12/31/2022 |
|
12/31/2021 |
||||||||||
|
After-tax (1) |
Per share |
|
After-tax (1) |
Per share |
||||||||
|
|
|
|
|
|
||||||||
Net Income (loss) available to Voya Financial, Inc.'s common shareholders |
$ |
474 |
|
$ |
4.30 |
|
|
$ |
2,090 |
|
$ |
16.61 |
|
Less: |
|
|
|
|
|
||||||||
Net investment and guaranteed benefit gains (losses) and related charges and adjustments |
|
(145 |
) |
|
(1.32 |
) |
|
|
(16 |
) |
|
(0.13 |
) |
Income (loss) related to businesses exited or to be exited through reinsurance or divestment |
|
(111 |
) |
|
(1.01 |
) |
|
|
872 |
|
|
6.93 |
|
Other adjustments (2) |
|
(105 |
) |
|
(0.95 |
) |
|
|
181 |
|
|
1.45 |
|
Adjusted operating earnings |
|
835 |
|
|
7.58 |
|
|
|
1,053 |
|
|
8.37 |
|
(1) The adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss) from continuing operations, adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate. |
|||||||||||||
(2) “Other adjustments” primarily consists of transaction and integration costs associated with the Allianz Global Investors transaction in 2022 and other restructuring expenses (severance, lease write-offs, etc.), income (loss) on early extinguishment of debt, and tax adjustments including a tax valuation allowance release in 2021. |
Reconciliation of Basic Weighted Average Shares to Adjusted Operating Diluted Weighted Average Shares |
|||||
|
Three Months Ended |
|
Year-to-Date |
||
(in millions) |
12/31/2022 |
12/31/2021 |
|
12/31/2022 |
12/31/2021 |
|
|
|
|
|
|
Weighted-average common shares outstanding - Basic |
97 |
110 |
|
101 |
117 |
Dilutive effect of warrants |
7 |
8 |
|
7 |
7 |
Other dilutive effects (1) |
2 |
3 |
|
2 |
2 |
Weighted-average common shares outstanding - Diluted |
107 |
120 |
|
110 |
126 |
Dilutive effect of the exercise or issuance of stock based awards |
— |
— |
|
— |
— |
Weighted average common shares outstanding - Adjusted Diluted (2) |
107 |
120 |
|
110 |
126 |
(1) Includes stock-based compensation awards such as restricted stock units (RSU), performance stock units (PSU), or stock options. |
|||||
(2) For periods in which there is Net loss from continuing operations available to common shareholders, adjusted operating earnings per common share (EPS) calculation includes additional dilutive shares, as the inclusion of these shares for stock compensation plans would not be anti-dilutive to the adjusted operating EPS calculation. |
Adjusted Operating Earnings, Net Revenue, Adjusted Operating Margin, and Notable Items |
||||||||||||
Three Months Ended December 31, 2022 |
||||||||||||
(in millions) |
Amounts including Notable items |
Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) |
Other (2) |
Amounts excluding Notable items |
||||||||
|
|
|
|
|
||||||||
Adjusted operating earnings before income taxes |
|
|
|
|
||||||||
Wealth Solutions |
$ |
148 |
|
$ |
(50 |
) |
$ |
14 |
|
$ |
184 |
|
Health Solutions |
|
74 |
|
|
(5 |
) |
|
— |
|
|
79 |
|
Investment Management |
|
57 |
|
|
(7 |
) |
|
— |
|
|
64 |
|
Corporate |
|
(52 |
) |
|
— |
|
|
— |
|
|
(52 |
) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest |
|
226 |
|
|
(62 |
) |
|
14 |
|
|
275 |
|
Less: Earnings (loss) attributable to Allianz noncontrolling interest |
|
13 |
|
|
— |
|
|
— |
|
|
13 |
|
Adjusted operating earnings before income taxes |
|
214 |
|
|
(62 |
) |
|
14 |
|
|
262 |
|
Income taxes (3) |
|
(20 |
) |
|
(13 |
) |
|
(50 |
) |
|
44 |
|
Adjusted Operating Earnings after income taxes |
$ |
233 |
|
$ |
(50 |
) |
$ |
64 |
|
$ |
219 |
|
Adjusted operating earnings per share |
|
2.18 |
|
|
(0.47 |
) |
|
0.60 |
|
|
2.05 |
|
|
|
|
|
|
||||||||
Net revenue |
|
|
|
|
||||||||
Wealth Solutions |
$ |
444 |
|
$ |
(50 |
) |
$ |
— |
|
$ |
494 |
|
Health Solutions |
|
221 |
|
|
(5 |
) |
|
— |
|
|
226 |
|
Investment Management |
|
215 |
|
|
(9 |
) |
|
— |
|
|
224 |
|
Total Net revenue |
$ |
880 |
|
$ |
(64 |
) |
$ |
— |
|
$ |
944 |
|
|
|
|
|
|
||||||||
Adjusted operating margin |
|
|
|
|
||||||||
Wealth Solutions |
|
33.3 |
% |
|
|
|
37.2 |
% |
||||
Health Solutions |
|
33.5 |
% |
|
|
|
35.0 |
% |
||||
Investment Management |
|
26.5 |
% |
|
|
|
28.6 |
% |
||||
Adjusted operating margin, excluding Corporate |
|
31.7 |
% |
|
|
|
34.6 |
% |
||||
(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable and incentive compensation. |
||||||||||||
(2) Includes DAC, VOBA, and other intangibles unlocking in Wealth and favorable tax adjustments primarily related to foreign tax credits. |
||||||||||||
(3) The adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss) from continuing operations, adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate. |
Adjusted Operating Earnings, Net Revenue, Adjusted Operating Margin, and Notable Items |
||||||||||||
Three Months Ended December 31, 2021 |
||||||||||||
(in millions) |
Amounts including Notable items |
Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) |
Other (2) |
Amounts excluding Notable items |
||||||||
|
|
|
|
|
||||||||
Adjusted operating earnings before income taxes |
|
|
|
|
||||||||
Wealth Solutions |
$ |
241 |
|
$ |
82 |
|
$ |
1 |
|
$ |
158 |
|
Health Solutions |
|
33 |
|
|
9 |
|
|
(34 |
) |
|
58 |
|
Investment Management |
|
59 |
|
|
9 |
|
|
— |
|
|
49 |
|
Corporate |
|
(54 |
) |
|
(16 |
) |
|
— |
|
|
(38 |
) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest |
|
279 |
|
|
84 |
|
|
(33 |
) |
|
227 |
|
Less: Earnings (loss) attributable to Allianz noncontrolling interest |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted operating earnings before income taxes |
|
279 |
|
|
84 |
|
|
(33 |
) |
|
227 |
|
Income taxes (3) |
|
50 |
|
|
18 |
|
|
(7 |
) |
|
39 |
|
Adjusted Operating Earnings after income taxes |
$ |
229 |
|
$ |
66 |
|
$ |
(26 |
) |
$ |
188 |
|
Adjusted operating earnings per share |
|
1.90 |
|
|
0.55 |
|
|
(0.22 |
) |
|
1.57 |
|
|
|
|
|
|
||||||||
Net revenue |
|
|
|
|
||||||||
Wealth Solutions |
$ |
568 |
|
$ |
82 |
|
$ |
— |
|
$ |
485 |
|
Health Solutions |
|
172 |
|
|
9 |
|
|
(34 |
) |
|
198 |
|
Investment Management |
|
201 |
|
|
12 |
|
|
— |
|
|
189 |
|
Total Net revenue |
$ |
941 |
|
$ |
103 |
|
$ |
(34 |
) |
$ |
872 |
|
|
|
|
|
|
||||||||
Adjusted operating margin |
|
|
|
|
||||||||
Wealth Solutions |
|
42.4 |
% |
|
|
|
32.6 |
% |
||||
Health Solutions |
|
19.2 |
% |
|
|
|
29.3 |
% |
||||
Investment Management |
|
29.4 |
% |
|
|
|
25.9 |
% |
||||
Adjusted operating margin, excluding Corporate |
|
35.4 |
% |
|
|
|
30.4 |
% |
||||
(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable and incentive compensation. |
||||||||||||
(2) Includes DAC, VOBA, and other intangibles unlocking and COVID-19 Impacts. |
||||||||||||
(3) The adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss) from continuing operations, adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate. |
Adjusted Operating Earnings, Net Revenue, Adjusted Operating Margin, and Notable Items |
||||||||||||
Twelve Months Ended December 31, 2022 |
||||||||||||
(in millions) |
Amounts including Notable items |
Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) |
Other (2) |
Amounts excluding Notable items |
||||||||
|
|
|
|
|
||||||||
Adjusted operating earnings before income taxes |
|
|
|
|
||||||||
Wealth Solutions |
$ |
707 |
|
$ |
(76 |
) |
$ |
44 |
|
$ |
738 |
|
Health Solutions |
|
291 |
|
|
(7 |
) |
|
18 |
|
|
280 |
|
Investment Management |
|
186 |
|
|
(24 |
) |
|
— |
|
|
210 |
|
Corporate |
|
(215 |
) |
|
— |
|
|
— |
|
|
(215 |
) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest |
|
969 |
|
|
(107 |
) |
|
63 |
|
|
1,012 |
|
Less: Earnings (loss) attributable to Allianz noncontrolling interest |
|
25 |
|
|
— |
|
|
— |
|
|
25 |
|
Adjusted operating earnings before income taxes |
|
944 |
|
|
(107 |
) |
|
63 |
|
|
987 |
|
Income taxes (3) |
|
109 |
|
|
(22 |
) |
|
(40 |
) |
|
171 |
|
Adjusted Operating Earnings after income taxes |
$ |
835 |
|
$ |
(84 |
) |
$ |
103 |
|
$ |
816 |
|
Adjusted operating earnings per share |
|
7.58 |
|
|
(0.76 |
) |
|
0.93 |
|
|
7.41 |
|
|
|
|
|
|
||||||||
Net revenue |
|
|
|
|
||||||||
Wealth Solutions |
$ |
1,891 |
|
$ |
(76 |
) |
$ |
— |
|
$ |
1,966 |
|
Health Solutions |
|
890 |
|
|
(7 |
) |
|
18 |
|
|
878 |
|
Investment Management |
|
756 |
|
|
(29 |
) |
|
— |
|
|
785 |
|
Total Net revenue |
$ |
3,537 |
|
$ |
(112 |
) |
$ |
18 |
|
$ |
3,629 |
|
|
|
|
|
|
||||||||
Adjusted operating margin |
|
|
|
|
||||||||
Wealth Solutions |
|
37.4 |
% |
|
|
|
37.5 |
% |
||||
Health Solutions |
|
32.8 |
% |
|
|
|
31.9 |
% |
||||
Investment Management |
|
24.7 |
% |
|
|
|
26.8 |
% |
||||
Adjusted operating margin, excluding Corporate |
|
33.5 |
% |
|
|
|
33.8 |
% |
||||
(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable and incentive compensation. |
||||||||||||
(2) Includes DAC, VOBA, and other intangibles unlocking, COVID-19 Impacts, favorable tax adjustments primarily related to foreign tax credits, and changes in certain other reserves not expected to recur at the same level. |
||||||||||||
(3) The adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss) from continuing operations, adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate. |
Adjusted Operating Earnings, Net Revenue, Adjusted Operating Margin, and Notable Items |
||||||||||||
Twelve Months Ended December 31, 2021 |
||||||||||||
(in millions) |
Amounts including Notable items |
Investment Income Net of Variable and Incentive Compensation Above (Below) Expectations (1) |
Other (2) |
Amounts excluding Notable items |
||||||||
|
|
|
|
|
||||||||
Adjusted operating earnings before income taxes |
|
|
|
|
||||||||
Wealth Solutions |
$ |
1,110 |
|
$ |
406 |
|
$ |
26 |
|
$ |
678 |
|
Health Solutions |
|
204 |
|
|
41 |
|
|
(98 |
) |
|
259 |
|
Investment Management |
|
239 |
|
|
61 |
|
|
— |
|
|
178 |
|
Corporate |
|
(261 |
) |
|
(56 |
) |
|
— |
|
|
(205 |
) |
Adjusted operating earnings before income taxes, including Allianz noncontrolling interest |
|
1,292 |
|
|
452 |
|
|
(72 |
) |
|
910 |
|
Less: Earnings (loss) attributable to Allianz noncontrolling interest |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Adjusted Operating earnings before income taxes |
|
1,292 |
|
|
452 |
|
|
(72 |
) |
|
910 |
|
Income taxes (3) |
|
239 |
|
|
95 |
|
|
(15 |
) |
|
159 |
|
Adjusted Operating Earnings after income taxes |
$ |
1,053 |
|
$ |
357 |
|
$ |
(57 |
) |
$ |
754 |
|
Adjusted operating earnings per share |
|
8.37 |
|
|
2.84 |
|
|
(0.46 |
) |
|
5.99 |
|
|
|
|
|
|
||||||||
Net revenue |
|
|
|
|
||||||||
Wealth Solutions |
$ |
2,346 |
|
$ |
406 |
|
$ |
28 |
|
$ |
1,912 |
|
Health Solutions |
|
722 |
|
|
41 |
|
|
(98 |
) |
|
777 |
|
Investment Management |
|
783 |
|
|
75 |
|
|
— |
|
|
708 |
|
Total Net revenue |
$ |
3,850 |
|
$ |
522 |
|
$ |
(70 |
) |
$ |
3,397 |
|
|
|
|
|
|
||||||||
Adjusted operating margin |
|
|
|
|
||||||||
Wealth Solutions |
|
47.3 |
% |
|
|
|
35.5 |
% |
||||
Health Solutions |
|
28.3 |
% |
|
|
|
33.5 |
% |
||||
Investment Management |
|
30.7 |
% |
|
|
|
25.1 |
% |
||||
Adjusted operating margin, excluding Corporate |
|
40.3 |
% |
|
|
|
32.9 |
% |
||||
(1) The amount by which Investment income from alternative investments and prepayments exceeds or is less than our long-term expectations, net of variable and incentive compensation. |
||||||||||||
(2) Includes DAC, VOBA, and other intangibles unlocking, COVID-19 Impacts, revenue and expenses in Wealth Solutions related to the financial planning channel prior to its divestment in June 2021 and changes in certain legal and other reserves not expected to recur at the same level. |
||||||||||||
(3) The adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss) from continuing operations, adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law. For non-operating items, we apply a 21% tax rate. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230207006036/en/
Media Contact:
Christopher Breslin
212-309-8941
[email protected]
Investor Contact:
Michael Katz
212-309-8999
[email protected]