Voya Financial, Inc.

Good morning and welcome to Voya Financial's third quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during this conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to our host, Mike Katz, Executive Vice President of Finance. Thank you. You may begin.

Thank you and good morning. Welcome to Voya Financial's third quarter 2022 earnings conference call. We appreciate all of you who have joined us for this call. As a reminder, materials for today's call are available on our website at investors.voya.com or via the webcast. Turning to slide two, some of the comments made during this conference call may contain forward-looking statements within the meaning of federal securities law. I refer you to this slide for more information. We will also be referring today to certain non-GAAP financial measures. GAAP reconciliations are available in our press release and financial supplement found on our website. Joining me on the call are Rod Martin, our Chairman and Chief Executive Officer, Heather LaValley, our President and Chief Executive Officer-elect, and Mike Smith, our Chief Financial Officer. After their prepared remarks, we will take your questions. For that Q&A session, we have also invited our Vice Chair and Chief Growth Officer, Charlie Nelson, as well as the heads of our businesses, specifically Christine Hertzellers, Investment Management, and Rob Grupka, Health Solutions. With that, let's turn to Slide 3, as I'll turn the call over to Rod.

Good morning. Let's begin on Slide 4 with some key themes. We delivered exceptional results during the third quarter, particularly given the challenging macroeconomic environment. We grew adjusted operating EPS, excluding notables by approximately 28% year over year to $2 and 19 cents. This strong performance reflects our continued execution of the organic growth margin and capital components of our EPS growth plans. As a result, We now believe we will achieve our original 12 to 17% EPS target for 2022, despite the macro economic challenges we've experienced this year. Our confidence in achieving this target is driven by several factors. The diversity of our revenue streams and the markets we serve, including the positive impact of interest rates on our wealth business. The continued decline of COVID-related claims. The benefits we have already realized from the Allianz GI transaction, including revenue on assets onboarded during the third quarter. And the removal of all stranded costs associated with our prior divestitures, which we achieved ahead of schedule. Looking more closely at our performance, this quarter and over the trailing 12 months, All of our businesses achieved organic growth in line with our annual targets. During the third quarter, we generated positive full-service net flows of $555 million in wealth solutions, contributing to net flows of $1.1 billion over the trailing 12 months. Full-service recurring deposits grew 10.4% compared with the prior year period to $13 billion today. In health solutions, annualized in-force premiums grew 9.7% compared with the prior year period to $2.8 billion. This was driven by growth across all of our product lines, including a 22% increase in our voluntary product line. In investment management, net flows over the last 12 months were nearly $10 billion. And this represents strong organic growth and the initial benefits of our transaction with Allianz GI. We concluded the third quarter with approximately $700 million of excess capital. In the third quarter, we deployed $172 million to extinguish debt and pay common stock dividends. This brings our total excess capital deployed over the trailing 12 months, ended September 30th, to approximately $1.9 billion. Finally, we announced our acquisition of Benefitfocus yesterday. This transaction represents an immediate and long-term growth opportunity for Voya. We believe this acquisition is both highly strategic and financially compelling. It accelerates a key priority of our strategy that enables the capability to further integrate our health and wealth solutions leading to improved outcomes for our customers, intermediaries, and our shareholders. This transaction is also highly strategic and an attractive form of capital deployment given the immediate cash accretion and the long-term revenue growth opportunities it brings while accelerating our strategy. We continue to build on our track record of delivering strong value and returns for our shareholders. In a moment, Heather will share more details on how this strategic acquisition accelerates our health and wealth strategy. Turning to slide five. Our focus on brand and culture continue to differentiate Voya. During October, Voya supported a number of events as part of the National Disability Employment Awareness Month. We teamed up with Disability In for our third annual virtual concert to highlight the need to increase and improve the employment of people with disabilities and special needs. And in September, we held our annual employee giving campaign. More than 80% of our employees engaged in activities during the month, the highest participation rate in Boyas history. And our people donated at a rate that was three times the giving rate of the average company. Our work to advance our culture was further validated by our recertification as a great place to work for the seventh consecutive year. and we earned a similar honor from Fortune. These recognitions and the actions of our people and our company continue to reflect the strength of our culture and how that carries through in all that we do. With our strong history of effectively executing on our plans and controlling what we can control, regardless of the macroeconomic environment, we remain confident in the plans we shared with you at Investor Day. With that, let me ask Heather to share more details on our exciting acquisition of BenefitFocus, as well as additional details on how we're executing on our strategy.