Voya Financial Q4 Earnings Miss Estimates, Revenues Rise Y/Y

Voya Financial, Inc. VOYA reported fourth-quarter 2025 adjusted operating earnings of $1.94 per share, which missed the Zacks Consensus Estimate by 8%. The bottom line increased 38.5% year over year.

The increase was due to higher earnings across all segments, partially offset by higher accruals in Corporate for performance-based compensation, reflecting strong results in 2025. The fourth-quarter 2025 earnings per share also benefited from reduced share count from share repurchases.

Behind the Headlines

Adjusted operating revenues amounted to $2 billion, which increased 5.7% year over year. 

Net investment income increased 13.4% year over year to $591 million. Meanwhile, fee income of $633 million increased 16.5% year over year. Premiums totaled $738 million, down 6.5% from the year-ago quarter. Total benefits and expenses were $1.9 billion, up 2.7% from the year-ago quarter.

As of Dec. 31, 2025, VOYA’s assets under management, and assets under administration and advisement totaled $1.1 trillion.

Segmental Update

Retirement recorded pre-tax adjusted operating earnings of $255 million, which grew 21.4% year over year. The increase was primarily due to the acquired business from OneAmerica, higher alternative investment income, and strong business execution. 

As of Dec. 31, 2025, total client assets were $797 billion, up 30% year over year, primarily due to assets onboarded from OneAmerica, the record organic Defined Contribution net inflows of $28 billion, and positive capital markets. 

Employee Benefits reported a pre-tax adjusted operating loss of $10 million, narrower than the loss of $102 million incurred in the year-ago quarter. The improvement was driven by higher underwriting margins in Group Life and Stop Loss, including an increase in reserves for Stop Loss. Annualized in-force premiums and fees declined 5% year over year to $3.6 billion. The decline reflects intentional prioritization of margin improvement over growth, through pricing discipline and enhanced risk selection within the Stop Loss business.

Investment Management posted pre-tax adjusted operating earnings, excluding noncontrolling interest, of $72 million, which increased 9% year over year. The increase was primarily due to higher fee-based revenues benefiting from strong business momentum and positive capital markets, partially offset by higher incentive compensation tied to results. Investment Management generated net inflows of $1.2 billion (excluding divested businesses) during the three months ended Dec. 31, 2025.

Corporate incurred pre-tax adjusted operating losses, excluding noncontrolling interest, of $90 million, wider than a loss of $27 million incurred in the year-ago quarter.

Financial Update

Voya Financial exited the quarter with cash and cash equivalents of $1.2 billion, which decreased 12.2% year over year. Total investments amounted to $38.5 billion, up 10.1% year over year.

Long-term debt at quarter-end was $1.5 billion, which decreased 27.8% from 2024-end.

The financial leverage ratio, excluding AOCI, improved 330 basis points year over year to 27%.

As of Dec. 31, 2025, book value per share (excluding AOCI) was $65.34, which increased 6.5% year over year. For the fourth quarter of 2025, Voya Financial had approximately $175 million of excess capital.

Capital Deployment

As of Dec. 31, 2025, Voya Financial's excess capital position was approximately $0.4 billion. Voya Financial returned $120 million and $44 million of excess capital to shareholders through share repurchases and common stock dividends, respectively, in the reported quarter.
As of Dec. 31, 2025, VOYA had a remaining share repurchase authorization of $562 million.

Full-Year Highlights

Full-year 2025 adjusted operating earnings per share of $8.85 increased 22% year over year. The bottom line missed the Zacks Consensus Estimate by 1.8%. 

Adjusted operating revenues jumped 3.3% from the year-ago quarter to $7.7 billion.

Zacks Rank

Voya Financial currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Willis Towers Watson Public Limited Company WTW delivered fourth-quarter 2025 adjusted earnings of $8.12 per share, which beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 2% year over year. Willis Towers posted adjusted consolidated revenues of $2.9 billion, which declined 3% year over year on a reported basis. Revenues increased 6% on an organic basis but declined 5% on a constant currency basis. The top line beat the Zacks Consensus Estimate by 2.5%.

The total costs of providing services decreased 10% year over year to $1.9 billion. Our estimate was pegged at $1.8 billion. Adjusted operating income was $1 billion, which decreased 1% year over year. Margin expanded 80 basis points to 36.9%.

Arthur J. Gallagher & Co. AJG reported fourth-quarter 2025 adjusted net earnings of $2.38 per share, which beat the Zacks Consensus Estimate by 1.2%. The bottom line increased 11.7% on a year-over-year basis. Total revenues of $3.6 billion beat the Zacks Consensus Estimate by 0.3%. The top line also improved 33.8% year over year.

Arthur J. Gallagher’s total expenses increased 44.7% year over year to $3.4 billion in the reported quarter. Earnings before interest, tax, depreciation, and amortization and change in estimated acquisition earnout payables (EBITDAC) grew 3.3% from the prior-year quarter to $710 million. 

Brown & Brown, Inc.’s BRO fourth-quarter 2025 adjusted earnings of 93 cents per share beat the Zacks Consensus Estimate by 2.1%. The bottom line increased 8.1% year over year. Total revenues of $1.6 billion missed the Zacks Consensus Estimate by 2.1%. The top line improved 35.7% year over year. The upside can be primarily attributed to commission and fees, which grew 36% year over year to $1.6 billion and improved investment and other income. The Zacks Consensus Estimate for commission and fees was pegged at $1.6 billion. Organic revenues declined 2.8% to $1 billion in the quarter under review.

Investment income and other income increased 17.3% year over year to $27 million. Adjusted EBITDAC was $529 million, up 35.6% year over year. EBITDAC margin remained unchanged year over year to 32.9%.

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