voya-20240331

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

——————————————————————

FORM 10-Q


(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-35897

Voya Financial, Inc.

(Exact name of registrant as specified in its charter)


Delaware						52-1222820
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)


230 Park Avenue	New York, New York	10169	(212) 309-8200
(Address of principal executive offices)		(Zip Code)	(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	VOYA	New York Stock Exchange
Depositary Shares, each representing a 1/40th	VOYAPrB	New York Stock Exchange
interest in a share of 5.35% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B, $0.01 par value

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ☐ Yes ☐ No

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of April 29, 2024, 100,701,204 shares of Common Stock, $0.01 par value, were outstanding.


			1

Voya Financial, Inc.

Form 10-Q for the period ended March 31, 2024

Table of Contents



PART I.	FINANCIAL INFORMATION (UNAUDITED)	PAGE

Item 1.	Financial Statements:
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Comprehensive Income	7
	Condensed Consolidated Statements of Changes in Shareholders' Equity	8
	Condensed Consolidated Statements of Cash Flows	10
	Notes to Condensed Consolidated Financial Statements:	11
	1. Business, Basis of Presentation and Significant Accounting Policies	11

	2. Investments (excluding Consolidated Investment Entities)	13
	3. Derivative Financial Instruments	23
	4. Fair Value Measurements (excluding Consolidated Investment Entities)	27
	5. Deferred Policy Acquisition Costs and Value of Business Acquired	35
	6. Reserves for Future Policy Benefit and Contract Owner Account Balances	36

	7. Reinsurance	39
	8. Separate Accounts	41
	9. Segments	42
	10. Share-based Incentive Compensation Plans	45
	11. Shareholders' Equity	47
	12. Earnings per Common Share	48
	13. Accumulated Other Comprehensive Income (Loss)	49
	14. Revenue from Contracts with Customers	50
	15. Income Taxes	51
	16. Financing Agreements	52
	17. Commitments and Contingencies	54
	18. Consolidated and Nonconsolidated Investment Entities	56

	19. Goodwill and Other Intangible Assets	61




Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	63

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	92

Item 4.	Controls and Procedures	94

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	94

Item 1A.	Risk Factors	94

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	95

Item 5.	Other Information	95

Item 6.	Exhibits	95

Exhibit Index		96

Signature		97


			2

Table of Contents

NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including "Risk Factors," and "Management’s Discussion and Analysis of Financial Condition and Results of Operations," contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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) global market risks, including general economic conditions, our ability to manage such risks and interest rates; (ii) liquidity and credit risks, including financial strength or credit ratings downgrades, requirements to post collateral, and availability of funds through dividends from our subsidiaries or lending programs; (iii) strategic and business risks, including our ability to maintain market share, achieve desired results from our acquisitions and dispositions, or otherwise manage our third-party relationships; (iv) investment risks, including the ability to achieve desired returns or liquidate certain assets; (v) operational risks, including cybersecurity and privacy failures and our dependence on third parties; (vi) tax, regulatory and legal risks, including limits on our ability to use deferred tax assets, changes in law, regulation or accounting standards, and our ability to comply with regulations. Factors that may cause actual results to differ from those in any forward-looking statement also include those described under "Risk Factors," "Management’s Discussion and Analysis of Financial Condition and Results of Operations - Trends and Uncertainties" in the Annual Report on Form 10-K for the year ended December 31, 2023 (File No. 001-35897) (the "Annual Report on Form 10-K") and in this Quarterly Report on Form 10-Q.

The risks included here are not exhaustive. Current reports on Form 8-K and other documents filed with the Securities and Exchange Commission ("SEC") include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.


			3

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Voya Financial, Inc.

Condensed Consolidated Balance Sheets

March 31, 2024 (Unaudited) and December 31, 2023

(In millions, except share and per share data)


	March 31, 2024		December 31, 2023

Assets:
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost of $26,979 and $27,690 as of 2024 and 2023, respectively; net of allowance for credit losses of $22 and $17 as of 2024 and 2023, respectively)	$	24,561	$	25,375
Fixed maturities, at fair value using the fair value option	1,913		2,076

Equity securities, at fair value	219		236
Short-term investments	176		213


Mortgage loans on real estate (net of allowance for credit losses of $26 as of 2024 and 2023)	5,092		5,192
Policy loans	349		352
Limited partnerships/corporations	1,708		1,621
Derivatives	378		311
Other investments	64		64
Securities pledged (amortized cost of $1,330 and $1,232 as of 2024 and 2023, respectively)	1,227		1,160
Total investments	35,687		36,600
Cash and cash equivalents	995		937
Short-term investments under securities loan agreements, including collateral delivered	1,014		1,015
Accrued investment income	421		411


Premium receivable and reinsurance recoverable (net of allowance for credit losses of $22 and $28 as of 2024 and 2023, respectively)	11,828		11,982
Deferred policy acquisition costs and Value of business acquired	2,222		2,250



Deferred income taxes	2,178		2,160
Goodwill	748		748
Other intangibles, net	861		857
Other assets (net of allowance for credit losses of $1 as of 2024 and 2023)	2,418		2,372
Assets related to consolidated investment entities ("CIEs"):
Limited partnerships/corporations, at fair value	2,881		2,861
Cash and cash equivalents	181		181
Corporate loans, at fair value using the fair value option	1,500		1,404

Other assets	61		174
Assets held in separate accounts	98,636		93,133

Total assets	$	161,631	$	157,085


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

			4

Table of Contents

Voya Financial, Inc.

Condensed Consolidated Balance Sheets

March 31, 2024 (Unaudited) and December 31, 2023

(In millions, except share and per share data)


	March 31, 2024		December 31, 2023

Liabilities:
Future policy benefits	$	9,427	$	9,560
Contract owner account balances	38,442		39,174
Payables under securities loan and repurchase agreements, including collateral held	1,220		1,121
Short-term debt	393		1
Long-term debt	1,707		2,097

Derivatives	332		371



Other liabilities	2,866		2,956
Liabilities related to CIEs:
Collateralized loan obligations notes, at fair value using the fair value option	1,368		1,332
Other liabilities	1,369		1,287
Liabilities related to separate accounts	98,636		93,133

Total liabilities	$	155,760	$	151,032

Commitments and Contingencies (Note 17)

Mezzanine equity:
Redeemable noncontrolling interest	$	174	$	175

Shareholders' equity:
Preferred stock ($0.01 par value per share; $625 aggregate liquidation preference as of 2024 and 2023)	—		—
Common stock ($0.01 par value per share; 900,000,000 shares authorized; 104,950,844 and 103,584,699 shares issued as of 2024 and 2023, respectively; 101,291,480 and 102,854,569 shares outstanding as of 2024 and 2023, respectively)	1		1
Treasury stock (at cost; 3,659,364 and 730,130 shares as of 2024 and 2023, respectively)	(263)		(56)
Additional paid-in capital	6,187		6,143
Accumulated other comprehensive income (loss)	(2,469)		(2,400)
Retained earnings (deficit):

Unappropriated	697		505
Total Voya Financial, Inc. shareholders' equity	4,153		4,193
Noncontrolling interest	1,544		1,685
Total shareholders' equity	5,697		5,878
Total liabilities, mezzanine equity and shareholders' equity	$	161,631	$	157,085


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

			5

Table of Contents

Voya Financial, Inc.

Condensed Consolidated Statements of Operations

For the Three Months Ended March 31, 2024 and 2023 (Unaudited)

(In millions, except per share data)


	Three Months Ended March 31,
		2024		2023

Revenues:
Net investment income		$	529	$	545
Fee income		513		464
Premiums		800		685





Net gains (losses)		43		(16)
Other revenue		88		78
Income (loss) related to CIEs:
Net investment income		78		79

Total revenues		2,051		1,835
Benefits and expenses:
Policyholder benefits		605		510
Interest credited to contract owner account balances		246		241
Operating expenses		799		836
Net amortization of Deferred policy acquisition costs and Value of business acquired		56		59
Interest expense		30		32
Operating expenses related to CIEs:
Interest expense		27		16
Other expense		1		—
Total benefits and expenses		1,764		1,694
Income (loss) before income taxes		287		141
Income tax expense (benefit)		(1)		12


Net income (loss)		288		129
Less: Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest		37		46
Net income (loss) available to Voya Financial, Inc.		251		83
Less: Preferred stock dividends		17		14
Net income (loss) available to Voya Financial, Inc.'s common shareholders		$	234	$	69

Net income (loss) available to Voya Financial, Inc.'s common shareholders per common share:


Basic		$	2.29	$	0.70



Diluted		$	2.24	$	0.63


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

			6

Table of Contents

Voya Financial, Inc.

Condensed Consolidated Statements of Comprehensive Income

For the Three Months Ended March 31, 2024 and 2023 (Unaudited)

(In millions)


	Three Months Ended March 31,
		2024		2023

Net income (loss)		$	288	$	129
Other comprehensive income (loss), before tax:
Change in current discount rate		38		2
Unrealized gains (losses) on securities		(125)		643


Other comprehensive income (loss), before tax		(87)		645
Income tax expense (benefit) related to items of other comprehensive income (loss)		(18)		135
Other comprehensive income (loss), after tax		(69)		510
Comprehensive income (loss)		219		639
Less: Comprehensive income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest		37		46
Comprehensive income (loss) attributable to Voya Financial, Inc.		$	182	$	593


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

			7

Table of Contents

Voya Financial, Inc.

Condensed Consolidated Statements of Changes in Shareholders' Equity

For the Three Months Ended March 31, 2024 (Unaudited)

(In millions)



	Common Stock		Treasury Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Earnings (Deficit)		Total Voya Financial, Inc. Shareholders' Equity		Noncontrolling Interest		Total Shareholders' Equity		Mezzanine Equity: Redeemable Noncontrolling Interest
									Unappropriated
Balance as of January 1, 2024	$	1	$	(56)	$	6,143	$	(2,400)		$	505	$	4,193	$	1,685	$	5,878	$	175





Comprehensive income (loss):
Net income (loss)	—		—		—		—			251		251		30		281		7

Other comprehensive income (loss), after tax	—		—		—		(69)			—		(69)		—		(69)		—
Total comprehensive income (loss)												182		30		212		7




Common stock issuance	—		—		3		—			—		3		—		3		—
Common stock acquired - Share repurchase	—		(172)		—		—			—		(172)		—		(172)		—

Dividends on preferred stock	—		—		—		—			(17)		(17)		—		(17)		—
Dividends on common stock	—		—		—		—			(41)		(41)		—		(41)		—
Share-based compensation	—		(35)		41		—			(1)		5		—		5		—
Contributions from (Distributions to) noncontrolling interest, net	—		—		—		—			—		—		(171)		(171)		(8)
Balance as of March 31, 2024	$	1	$	(263)	$	6,187	$	(2,469)		$	697	$	4,153	$	1,544	$	5,697	$	174


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

			8

Table of Contents

Voya Financial, Inc.

Condensed Consolidated Statements of Changes in Shareholders' Equity

For the Three Months Ended March 31, 2023 (Unaudited)

(In millions)



	Common Stock		Treasury Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)			Retained Earnings (Deficit)		Total Voya Financial, Inc. Shareholders' Equity		Noncontrolling Interest		Total Shareholders' Equity		Mezzanine Equity: Redeemable Noncontrolling Interest
									Unappropriated
Balance as of January 1, 2023	$	1	$	(39)	$	6,643	$	(3,055)		$	(201)	$	3,349	$	1,482	$	4,831	$	166








Comprehensive income (loss):
Net income (loss)	—		—		—		—			83		83		44		127		2

Other comprehensive income (loss), after tax	—		—		—		510			—		510		—		510		—
Total comprehensive income (loss)												593		44		637		2







Dividends on preferred stock	—		—		(14)		—			—		(14)		—		(14)		—
Dividends on common stock	—		—		(20)		—			—		(20)		—		(20)		—
Share-based compensation	—		(38)		84		—			—		46		—		46		—
Contributions from (Distributions to) noncontrolling interest, net	—		—		—		—			—		—		41		41		(2)
Balance as of March 31, 2023	$	1	$	(77)	$	6,693	$	(2,545)		$	(118)	$	3,954	$	1,567	$	5,521	$	166


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

			9

Table of Contents

Voya Financial, Inc.

Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2024 and 2023 (Unaudited)

(In millions)


	Three Months Ended March 31,
	2024		2023
Cash Flows from Operating Activities:


















Net cash provided by operating activities	$	231	$	156
Cash Flows from Investing Activities:
Proceeds from the sale, maturity, disposal or redemption of:
Fixed maturities	1,262		1,979
Equity securities	26		28
Mortgage loans on real estate	206		175
Limited partnerships/corporations	38		32
Acquisition of:
Fixed maturities	(504)		(1,293)
Equity securities	(3)		(25)
Mortgage loans on real estate	(107)		(76)
Limited partnerships/corporations	(125)		(44)
Short-term investments, net	36		323
Derivatives, net	58		2
Sales from CIEs	307		205
Purchases within CIEs	(267)		(300)
Collateral received (delivered), net	102		(43)
Receipts on deposit asset contracts	69		72

Payments for business acquisitions, net of cash acquired	—		(534)
Other, net	(16)		(29)

Net cash provided by (used in) investing activities	1,082		472
Cash Flows from Financing Activities:
Deposits received for investment contracts	825		730
Maturities and withdrawals from investment contracts	(1,677)		(1,594)

Repayments of long-term debt, including current maturities	—		(5)
Borrowings of CIEs	73		103
Repayments of borrowings of CIEs	(52)		(39)
Contributions from (distributions to) participants in CIEs, net	(150)		66


Proceeds from issuance of common stock, net	3		—
Common stock acquired - Share repurchase	(172)		—
Dividends paid on preferred stock	(17)		(14)
Dividends paid on common stock	(41)		(20)

Other, net	(47)		(38)

Net cash provided by (used in) financing activities	(1,255)		(811)
Net increase (decrease) in cash and cash equivalents, including cash in CIEs	58		(183)
Cash and cash equivalents, including cash in CIEs, beginning of period	1,118		1,007
Cash and cash equivalents, including cash in CIEs, end of period	$	1,176	$	824









	March 31, 2024		December 31, 2023
Reconciliation of cash and cash equivalents, including cash in CIEs:
Cash and cash equivalents	$	995	$	937
Cash and cash equivalents in CIEs	181		181
Total cash and cash equivalents, including cash in CIEs	$	1,176	$	1,118


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

			10

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

1. Business, Basis of Presentation and Significant Accounting Policies

Business

Voya Financial, Inc. and its subsidiaries (collectively, the "Company") is a financial services organization that offers a broad range of retirement services, group insurance and supplemental health products, investment management services and mutual funds primarily in the United States. Products and services are provided by the Company through three segments: Wealth Solutions, Health Solutions and Investment Management. Activities not directly related to the Company's segments and certain run-off activities that are not meaningful to the Company's business strategy are included within Corporate. See the Segments Note to these Condensed Consolidated Financial Statements.

On January 24, 2023, the Company acquired all outstanding shares of Benefitfocus, Inc. ("Benefitfocus"), pursuant to an agreement and plan of merger (the "Merger Agreement") entered into on November 1, 2022. The acquisition expands the Company’s capacity to meet the growing demand for comprehensive benefits and savings solutions and increases its ability to deliver innovative solutions for employers and health plans. The total purchase consideration for the acquisition was $595, of which $583 was paid in cash ($558 paid by the Company and $25 of the cash acquired was used to fund the transaction). Net assets acquired as part of this transaction included cash of $49, goodwill of $319, intangible assets of $275, deferred tax assets of $45 and assumed lease liabilities of $91. Intangible assets primarily include customer relationships of $190 with a useful life of 15 years, and software of $70 with a useful life of 5 years. The revenues, expenses, assets and liabilities of the business acquired are reported in the Health Solutions segment.

On August 1, 2023, the Company acquired all remaining equity interest in VFI SLK Global Services Private Limited previously held by SLK Software Private Limited ("SLK") and renamed the entity as Voya Global Services Private Limited ("Voya India"). Voya India was a private limited company in India formed pursuant to a joint venture agreement between the Company and SLK on August 1, 2019, with the Company and SLK holding 49% and 51% of ownership shares, respectively. The purpose of Voya India is to provide technology and business operation services to the Company. As a result of the acquisition, Voya India has become a wholly owned subsidiary of the Company and provides the Company with improved strategic and operational flexibility. As part of the purchase consideration, an upfront payment of approximately $53 was made at closing. Net assets acquired as part of this transaction included goodwill of $102. The revenues, expenses, assets and liabilities of the business acquired are reported in Corporate. Intercompany balances between Voya India and other Voya subsidiaries are eliminated in the Condensed Consolidated Financial Statements.

Basis of Presentation

The accompanying Condensed Consolidated Financial Statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and are unaudited. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates, and the differences may be material to the Condensed Consolidated Financial Statements.

The Condensed Consolidated Financial Statements include the accounts of Voya Financial, Inc. and its subsidiaries, as well as other voting interest entities ("VOEs") and variable interest entities ("VIEs") in which the Company has a controlling financial interest. See the Consolidated and Nonconsolidated Investment Entities Note to these Condensed Consolidated Financial Statements. Intercompany transactions and balances have been eliminated.

The accompanying Condensed Consolidated Financial Statements are unaudited and reflect adjustments (including normal, recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows for the interim periods presented in conformity with U.S. GAAP. Interim results are not necessarily indicative of full year performance.

Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on Net income (loss) or Total shareholders’ equity.


			11

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The December 31, 2023 Consolidated Balance Sheets is from the audited Consolidated Financial Statements included in the Company's Annual Report on Form 10-K filed with the SEC. Therefore, these unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company's Annual Report on Form 10-K.

Adoption of New Pronouncements

Equity Securities Subject to Contractual Sale Restrictions

In June 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-03, "Fair Value Measurement (Topic 280): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions" ("ASU 2022-03"), which clarifies that contractual restrictions on equity security sales are not considered part of the security unit of account and, therefore, are not considered in measuring the fair value. In addition, the restrictions cannot be recognized and measured as separate units of account. Disclosures on such restrictions are also required.

The provisions of ASU 2022-03 were adopted prospectively on January 1, 2024. The adoption did not have an impact on the Company's financial condition, results of operations, or cash flows.

Future Adoption of Accounting Pronouncements

Profits Interest and Similar Awards

In March 2024, the FASB issued ASU 2024-01, "Compensation - Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards" ("ASU 2024-01"), which adds incremental clarity for how profits interests should be accounted.

ASU 2024-01 is effective for annual periods beginning after December 15, 2024 and interim periods within those annual periods with early adoption permitted. The Company intends to adopt ASU 2024-01 as of January 1, 2025 on a prospective basis, and does not expect this ASU to have a material impact on the Company's financial condition, results of operations, or cash flows.

Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which requires:

•A tabular rate reconciliation of (1) reported income tax expense/benefit from continuing operations, to (2) the product of the income/loss from continuing operations before income taxes and the statutory federal income tax rate, using specific categories, as well as disclosure of certain reconciling items based on a 5% threshold.

•Year-to-date net income taxes paid, disaggregated by federal, state, and foreign, as well as disaggregated information on net income taxes paid to an individual jurisdiction based on a 5% threshold.

The amendments are effective for annual periods beginning after December 15, 2024 and should be applied prospectively, with retrospective application permitted. Early adoption is also permitted. The Company is currently in the process of determining the impacts of adoption of the provisions of ASU 2023-09.

Segment Disclosures

In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"), which requires all current annual disclosures about profit/loss and assets to be reported in interim periods, as well as enhanced disclosures about significant segment expenses.

The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024, and are required to be applied retrospectively. Restated prior period disclosures should be based on the


			12

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

significant segment expense categories disclosed in the period of adoption. The Company is currently in the process of determining the impacts of adoption of the provisions of ASU 2023-07.

Climate Related Disclosures

In March 2024, the SEC adopted a final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors, to enhance and standardize climate-related disclosures. The rule will require companies to disclose material Scope 1 and Scope 2 greenhouse gas emissions; climate-related risks, governance, and oversight; and the financial effects of severe weather events and other natural conditions. These disclosures will be phased in beginning with the Company's annual report for the year ending December 31, 2025. While the implementation of this rule is pending the outcome of legal challenges, the Company is currently assessing the impact of adoption on the Consolidated Financial Statements and related disclosures in the event that the stay is lifted.

2. Investments (excluding Consolidated Investment Entities)

Fixed Maturities

Available-for-sale and fair value option ("FVO") fixed maturities were as follows as of March 31, 2024:


	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Allowance for credit losses		Fair Value
Fixed maturities:
U.S. Treasuries	$	424	$	3	$	26	$	—	$	—	$	401
U.S. Government agencies and authorities	54		2		1		—		—		55
State, municipalities and political subdivisions	785		—		104		—		—		681
U.S. corporate public securities	8,165		148		974		—		—		7,339
U.S. corporate private securities	5,046		37		363		—		—		4,720
Foreign corporate public securities and foreign governments(1)	2,797		41		273		—		2		2,563
Foreign corporate private securities(1)	2,845		20		152		—		1		2,712
Residential mortgage-backed securities	3,586		28		276		1		—		3,339
Commercial mortgage-backed securities	4,059		3		584		—		14		3,464
Other asset-backed securities	2,461		25		54		—		5		2,427
Total fixed maturities, including securities pledged	30,222		307		2,807		1		22		27,701
Less: Securities pledged	1,330		—		103		—		—		1,227
Total fixed maturities	$	28,892	$	307	$	2,704	$	1	$	22	$	26,474

(1) Primarily U.S. dollar denominated.

(2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Net gains (losses) in the Condensed Consolidated Statements of Operations.


			13

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Available-for-sale and FVO fixed maturities were as follows as of December 31, 2023:


	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Allowance for credit losses		Fair Value
Fixed maturities:
U.S. Treasuries	$	417	$	7	$	21	$	—	$	—	$	403
U.S. Government agencies and authorities	54		3		1		—		—		56
State, municipalities and political subdivisions	871		1		101		—		—		771
U.S. corporate public securities	8,402		168		904		—		—		7,666
U.S. corporate private securities	5,040		44		324		—		—		4,760
Foreign corporate public securities and foreign governments(1)	2,928		47		270		—		3		2,702
Foreign corporate private securities(1)	2,916		27		129		—		2		2,812
Residential mortgage-backed securities	3,695		36		257		2		—		3,476
Commercial mortgage-backed securities	4,147		1		644		—		9		3,495
Other asset-backed securities	2,528		16		71		—		3		2,470
Total fixed maturities, including securities pledged	30,998		350		2,722		2		17		28,611
Less: Securities pledged	1,232		—		72		—		—		1,160
Total fixed maturities	$	29,766	$	350	$	2,650	$	2	$	17	$	27,451

(1) Primarily U.S. dollar denominated.

The amortized cost and fair value of fixed maturities, including securities pledged, as of March 31, 2024, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. Mortgage-backed securities ("MBS") and Other asset-backed securities ("ABS") are shown separately because they are not due at a single maturity date.


	Amortized Cost		Fair Value
Due to mature:
One year or less	$	759	$	744
After one year through five years	3,796		3,654
After five years through ten years	3,744		3,600
After ten years	11,817		10,473
Mortgage-backed securities	7,645		6,803
Other asset-backed securities	2,461		2,427
Fixed maturities, including securities pledged	$	30,222	$	27,701

As of March 31, 2024 and December 31, 2023, the Company did not have any investments in a single issuer, other than obligations of the U.S. Government and government agencies, with a carrying value in excess of 10% of the Company’s Total shareholders' equity.


			14

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Repurchase Agreements and Securities Pledged

As of March 31, 2024 and December 31, 2023, the Company did not have any securities pledged in dollar rolls or reverse repurchase agreements.

The Company engages in securities lending whereby the initial collateral is required at a rate of at least 102% of the market value of the loaned securities. The lending agent retains the collateral and invests it in high quality liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. The lending agent indemnifies the Company against losses resulting from the failure of a counterparty to return securities pledged where collateral is insufficient to cover the loss.

In the normal course of business, the Company receives cash collateral and non-cash collateral in the form of securities. If cash is received as collateral, the lending agent retains the cash collateral and invests it in short-term liquid assets on behalf of the Company. Securities retained as collateral by the lending agent may not be sold or re-pledged, except in the event of default, and are not reflected on the Company’s Condensed Consolidated Balance Sheets. This collateral generally consists of U.S. Treasury, U.S. Government agency securities and MBS pools.

The following table presents Securities pledged as of the dates indicated:


	March 31, 2024		December 31, 2023
Securities pledged/obligations under repurchase agreements(1)	$	114	$	117
Securities loaned to lending agent(2)	912		842
Securities pledged as collateral(2)(3)	201		201
Total	$	1,227	$	1,160

(1) Comprised of other asset-backed securities and included in Securities pledged and Payables under securities loan and repurchase agreements, including collateral held on the Condensed Consolidated Balance Sheets.

(2) Included in Securities pledged on the Condensed Consolidated Balance Sheets.

(3) See Collateral within the Derivatives Note to these Condensed Consolidated Financial Statements for more information.

The following table presents collateral held by asset class that the Company pledged under securities lending as of the dates indicated:


	March 31, 2024		December 31, 2023
U.S. Treasuries	$	41	$	14

U.S. corporate public securities	613		568

Short-term investments	15		55

Foreign corporate public securities and foreign governments	273		238
Total(1)	$	942	$	875

(1) As of March 31, 2024 and December 31, 2023, liabilities to return cash collateral were $690 and $660, respectively, and included in Payables under securities loan and repurchase agreements, including collateral held on the Condensed Consolidated Balance Sheets.

The Company's securities lending activities are conducted on an overnight basis, and all securities loaned can be recalled at any time. The Company does not offset assets and liabilities associated with its securities lending program.


			15

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Allowance for credit losses

The following tables presents a rollforward of the allowance for credit losses on available-for-sale fixed maturity securities for the periods presented:


	Three Months Ended March 31, 2024
	U.S. corporate public securities		Commercial mortgage-backed securities		Foreign corporate public securities and foreign governments		Foreign corporate private securities		Other asset-backed securities		Total
Balance as of January 1	$	—	$	9	$	3	$	2	$	3	$	17
Credit losses on securities for which credit losses were not previously recorded	—		5		—		—		1		6

Reductions for securities sold during the period	—		—		(1)		—		—		(1)


Increase (decrease) on securities with allowance recorded in previous period	—		—		—		(1)		1		—


Balance as of March 31	$	—	$	14	$	2	$	1	$	5	$	22


	Year Ended December 31, 2023
	U.S. corporate public securities		Commercial mortgage-backed securities		Foreign corporate public securities and foreign governments		Foreign corporate private securities		Other asset-backed securities		Total
Balance as of January 1	$	—	$	—	$	9	$	2	$	1	$	12
Credit losses on securities for which credit losses were not previously recorded	—		9		—		—		2		11

Reductions for securities sold during the period	—		—		(5)		—		—		(5)


Increase (decrease) on securities with allowance recorded in previous period	—		—		(1)		—		—		(1)


Balance as of December 31	$	—	$	9	$	3	$	2	$	3	$	17

For additional information about the Company’s methodology and significant inputs used in determining whether a credit loss exists, see the Business, Basis of Presentation and Significant Accounting Policies Note to the Consolidated Financial Statements in Part II, Item 8. of the Annual Report on Form 10-K.


			16

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Unrealized Capital Losses

The following tables present available-for-sale fixed maturities, including securities pledged, for which an allowance for credit losses has not been recorded by investment category and duration as of the dates indicated:


	As of March 31, 2024
	Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost	Total
	Fair Value		Unrealized Capital Losses			Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	120	$	4		$	115	$	22	$	235	$	26
U.S. Government agencies and authorities	14		—			3		1		17		1
State, municipalities and political subdivisions	17		—			651		104		668		104
U.S. corporate public securities	347		23			4,875		951		5,222		974
U.S. corporate private securities	451		12			3,229		351		3,680		363
Foreign corporate public securities and foreign governments	144		2			1,613		271		1,757		273
Foreign corporate private securities	277		4			2,086		148		2,363		152
Residential mortgage-backed	189		4			1,321		272		1,510		276
Commercial mortgage-backed	21		1			3,242		583		3,263		584
Other asset-backed	82		1			460		53		542		54
Total	$	1,662	$	51		$	17,595	$	2,756	$	19,257	$	2,807


	As of December 31, 2023
	Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost	Total
	Fair Value		Unrealized Capital Losses			Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	99	$	3		$	109	$	18	$	208	$	21
U.S. Government agencies and authorities	—		—			3		1		3		1
State, municipalities and political subdivisions	20		—			731		101		751		101
U.S. corporate public securities	321		17			5,101		887		5,422		904
U.S. corporate private securities	176		7			3,365		317		3,541		324
Foreign corporate public securities and foreign governments	82		2			1,749		268		1,831		270
Foreign corporate private securities	189		5			2,101		124		2,290		129
Residential mortgage-backed	114		3			1,354		254		1,468		257
Commercial mortgage-backed	84		2			3,269		642		3,353		644
Other asset-backed	136		3			1,156		68		1,292		71
Total	$	1,221	$	42		$	18,938	$	2,680	$	20,159	$	2,722


			17

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

As of March 31, 2024, the average duration of our fixed maturities portfolio, including securities pledged, is between 6.5 and 7 years.

As of March 31, 2024 and December 31, 2023, the Company concluded that an allowance for credit losses was not warranted for the securities above because the unrealized losses are interest rate related. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases.

Evaluating Securities for Impairments

The Company performs a regular evaluation, on a security-by-security basis, of its available-for-sale securities holdings, including fixed maturity securities, in accordance with its impairment policy in order to evaluate whether such investments are impaired.

There were no intent impairments for the three months ended March 31, 2024 and 2023.

The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities. In certain situations, new factors, including changes in the business environment, can change the Company’s previous intent to continue holding a security. Accordingly, these factors may lead the Company to record additional intent related capital losses.

Debt Restructuring

Upon the adoption of ASU 2022-02 as of January 1, 2023, the Company no longer identifies certain debt modifications as troubled debt restructuring, but instead evaluates all debt modifications to determine whether a modification results in a new loan or a continuation of an existing loan. Disclosures are required for loan modifications with borrowers experiencing financial difficulty. For the three months ended March 31, 2024 and 2023, the Company had no material debt modifications that require such disclosure.

Mortgage Loans on Real Estate

The Company diversifies its commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. The Company manages risk when originating commercial mortgage loans by generally lending only up to 75% of the estimated fair value of the underlying real estate. Subsequently, the Company continuously evaluates mortgage loans based on relevant current information including a review of loan-specific performance, property characteristics and market trends. Loan performance is monitored on a loan specific basis through the review of submitted appraisals, operating statements, rent revenues and annual inspection reports, among other items. This review ensures properties are performing at a consistent and acceptable level to secure the debt. The components to evaluate debt service coverage are received and reviewed at least annually to determine the level of risk.

Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of mortgage loans. These ratios are utilized as part of the review process described above.


			18

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following tables present commercial mortgage loans by year of origination and LTV ratio as of the dates indicated. The information is updated as of March 31, 2024 and December 31, 2023, respectively.


	As of March 31, 2024
	Loan-to-Value Ratios
Year of Origination	0% - 50%		>50% - 60%		>60% - 70%		>70% - 80%		>80% and above		Total
2024	$	69	$	33	$	—	$	—	$	—	$	102
2023	118		257		—		—		—		375
2022	252		324		73		—		—		649
2021	244		203		203		—		—		650
2020	177		98		—		—		16		291
Prior	2,726		288		18		—		19		3,051
Total	$	3,586	$	1,203	$	294	$	—	$	35	$	5,118


	As of December 31, 2023
	Loan-to-Value Ratios
Year of Origination	0% - 50%		>50% - 60%		>60% -70%		>70% - 80%		>80% and above		Total
2023	$	150	$	222	$	—	$	—	$	—	$	372
2022	252		326		73		—		—		651
2021	244		214		209		—		—		667
2020	168		112		—		10		16		306
2019	238		68		28		—		—		334
Prior	2,586		280		4		—		18		2,888
Total	$	3,638	$	1,222	$	314	$	10	$	34	$	5,218

The following tables present commercial mortgage loans by year of origination and DSC ratio as of the dates indicated. The information is updated as of March 31, 2024 and December 31, 2023, respectively.


	As of March 31, 2024
	Debt Service Coverage Ratios
Year of Origination	>1.5x		>1.25x - 1.5x		>1.0x - 1.25x		<1.0x		Total*
2024	$	21	$	34	$	44	$	3	$	102
2023	157		151		67		—		375
2022	203		57		186		203		649
2021	259		14		56		321		650
2020	209		23		21		38		291
Prior	2,277		270		328		176		3,051
Total	$	3,126	$	549	$	702	$	741	$	5,118
*No commercial mortgage loans were secured by land or construction loans


			19

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)


	As of December 31, 2023
	Debt Service Coverage Ratios
Year of Origination	>1.5x		>1.25x - 1.5x		>1.0x - 1.25x		<1.0x		Total*
2023	$	189	$	116	$	67	$	—	$	372
2022	204		68		192		187		651
2021	260		14		64		329		667
2020	211		24		21		50		306
2019	203		26		84		21		334
Prior	2,216		264		255		153		2,888
Total	$	3,283	$	512	$	683	$	740	$	5,218

*No commercial mortgage loans were secured by land or construction loans

The following tables present the commercial mortgage loans by year of origination and U.S. region as of the dates indicated. The information is updated as of March 31, 2024 and December 31, 2023, respectively.


	As of March 31, 2024
	U.S. Region
Year of Origination	Pacific		South Atlantic		Middle Atlantic		West South Central		Mountain		East North Central		New England		West North Central		East South Central		Total
2024	$	4	$	43	$	22	$	13	$	12	$	—	$	6	$	2	$	—	$	102
2023	69		80		12		101		39		41		3		27		3		375
2022	140		132		47		98		113		93		5		1		20		649
2021	96		63		121		148		98		73		10		40		1		650
2020	63		152		17		10		12		15		—		7		15		291
Prior	761		680		716		219		257		164		59		155		40		3,051
Total	$	1,133	$	1,150	$	935	$	589	$	531	$	386	$	83	$	232	$	79	$	5,118


	As of December 31, 2023
	U.S. Region
Year of Origination	Pacific		South Atlantic		Middle Atlantic		West South Central		Mountain		East North Central		New England		West North Central		East South Central		Total
2023	$	69	$	77	$	12	$	101	$	39	$	42	$	3	$	26	$	3	$	372
2022	140		132		47		100		113		93		5		1		20		651
2021	96		63		124		148		111		75		9		40		1		667
2020	63		155		17		10		12		26		—		7		16		306
2019	53		100		10		74		45		4		14		13		21		334
Prior	734		605		765		189		214		171		47		144		19		2,888
Total	$	1,155	$	1,132	$	975	$	622	$	534	$	411	$	78	$	231	$	80	$	5,218


			20

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following tables present the commercial mortgage loans by year of origination and property type as of the dates indicated. The information is updated as of March 31, 2024 and December 31, 2023, respectively.


	As of March 31, 2024
	Property Type
Year of Origination	Retail		Industrial		Apartments		Office		Hotel/Motel		Other		Mixed Use		Total
2024	$	19	$	71	$	12	$	—	$	—	$	—	$	—	$	102
2023	125		167		33		18		32		—		—		375
2022	79		262		254		34		10		10		—		649
2021	36		141		335		111		—		18		9		650
2020	56		49		72		114		—		—		—		291
Prior	712		816		750		493		70		161		49		3,051
Total	$	1,027	$	1,506	$	1,456	$	770	$	112	$	189	$	58	$	5,118


	As of December 31, 2023
	Property Type
Year of Origination	Retail		Industrial		Apartments		Office		Hotel/Motel		Other		Mixed Use		Total
2023	$	125	$	164	$	33	$	18	$	32	$	—	$	—	$	372
2022	79		263		255		34		10		10		—		651
2021	36		145		335		123		—		18		10		667
2020	57		49		72		128		—		—		—		306
2019	45		82		160		36		11		—		—		334
Prior	780		755		618		463		60		163		49		2,888
Total	$	1,122	$	1,458	$	1,473	$	802	$	113	$	191	$	59	$	5,218

The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated:


	March 31, 2024		December 31, 2023
Allowance for credit losses, beginning of period	$	26	$	18
Credit losses on mortgage loans for which credit losses were not previously recorded	—		2

Increase (decrease) on mortgage loans with an allowance recorded in a previous period	—		9
Provision for expected credit losses	26		29
Write-offs	—		(3)
Recoveries of amounts previously written-off	—		—
Allowance for credit losses, end of period	$	26	$	26


			21

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table presents past due commercial mortgage loans as of the dates indicated:


	March 31, 2024		December 31, 2023
Delinquency:
Current	$	5,083	$	5,202
30-59 days past due	19		—
60-89 days past due	—		—
Greater than 90 days past due	16		16
Total	$	5,118	$	5,218

Commercial mortgage loans are placed on non-accrual status when 90 days in arrears if the Company has concerns regarding the collectability of future payments, or if a loan has matured without being paid off or extended. As of March 31, 2024 and December 31, 2023, the Company had $35 and $16, respectively, of commercial mortgage loans in non-accrual status with an LTV ratio of 100%. The amount of interest income recognized on loans in non-accrual status for the three months ended March 31, 2024 and the year ended December 31, 2023 was immaterial.

Net Investment Income

The following table summarizes Net investment income by investment type for the periods indicated:


	Three Months Ended March 31,
		2024		2023
Fixed maturities		$	416	$	458
Equity securities		5		7
Mortgage loans on real estate		61		61
Policy loans		6		6
Short-term investments and cash equivalents		10		9
Limited partnerships and other		48		22
Gross investment income		546		563
Less: Investment expenses		17		18
Net investment income		$	529	$	545

As of March 31, 2024 and December 31, 2023, the Company had $11 and $10, respectively, of investments in fixed maturities that did not produce net investment income. Fixed maturities are moved to a non-accrual status when the investment defaults.


			22

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Net Gains (Losses)

Net gains (losses) were as follows for the periods indicated:


	Three Months Ended March 31,
		2024		2023
Fixed maturities, available-for-sale, including securities pledged		$	(20)	$	1
Fixed maturities, at fair value option		(81)		36

Equity securities, at fair value		3		(2)
Derivatives		136		(54)
Embedded derivatives - fixed maturities		(1)		1
Other derivatives		1		—
Standalone derivatives		1		—
Managed custody guarantees		1		3

Mortgage loans		1		—
Other investments		2		(1)
Net gains (losses)		$	43	$	(16)

Proceeds from the sale of fixed maturities, available-for-sale and equity securities and the related gross realized gains and losses, before tax, were as follows for the periods indicated:


	Three Months Ended March 31,
		2024		2023
Proceeds on sales		$	829	$	1,306
Gross gains		11		20
Gross losses		27		25

3. Derivative Financial Instruments

The Company primarily enters into the following types of derivatives:

Interest rate swaps: Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and/or liabilities. Interest rate swaps are also used to hedge the interest rate risk associated with the value of assets it owns or in an anticipation of acquiring them. Using interest rate swaps, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest payments, calculated by reference to an agreed upon notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made to/from the counterparty at each due date. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Foreign exchange swaps: The Company uses foreign exchange or currency swaps to reduce the risk of change in the value, yield or cash flows associated with certain foreign denominated invested assets. Foreign exchange swaps represent contracts that require the exchange of foreign currency cash flows against U.S. dollar cash flows at regular periods, typically quarterly or semi-annually. The Company utilizes these contracts in qualifying hedging relationships as well as non-qualifying hedging relationships.

Total return swaps: The Company uses total return swaps as a hedge of interest related risks within various Legacy Annuity and Retirement products. Total return swaps are also used as a hedge of other corporate liabilities. Using total return swaps, the Company agrees with another party to exchange, at specified intervals, the difference between the economic performance of assets or a market index and a fixed or variable funding multiplied by reference to an agreed upon notional amount. No cash is exchanged at the onset of the contracts. Cash is paid and received over the life of the contract based upon the terms of the swaps. The Company utilizes these contracts in non-qualifying hedging relationships.


			23

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Futures: Futures contracts are used to hedge against a decrease in certain equity indices. The Company also uses interest rate futures contracts to hedge its exposure to market risks due to changes in interest rates. The Company enters into exchange traded futures with regulated futures commissions that are members of the exchange. The Company also posts initial and variation margins, with the exchange, on a daily basis. The Company utilizes exchange-traded futures in non-qualifying hedging relationships.

Embedded derivatives: The Company also invests in certain fixed maturity instruments and has issued certain products that contain embedded derivatives for which market value is at least partially determined by, among other things, levels of or changes in domestic and/or foreign interest rates (short-term or long-term), exchange rates, prepayment rates, equity rates or credit ratings/spreads. In addition, the Company has entered into coinsurance with funds withheld arrangements, which contain embedded derivatives.

The Company utilizes derivative contracts mainly to hedge exposure to variability in cash flows, interest rate risk, credit risk, foreign exchange risk and equity market risk. The majority of derivatives used by the Company are designated as product hedges, which hedge the exposure arising from insurance liabilities or guarantees embedded in the contracts the Company offers through various product lines. The Company also uses derivatives contracts to hedge its exposure to various risks associated with the investment portfolio. The Company also uses credit default swaps coupled with other investments in order to produce the investment characteristics of otherwise permissible investments. Based on the notional amounts, a substantial portion of the Company’s derivative positions was not designated or did not qualify for hedge accounting as part of a hedging relationship as outlined in ASC Topic 815 as of March 31, 2024 and December 31, 2023.

The notional amounts and fair values of derivatives were as follows as of the dates indicated:


	March 31, 2024						December 31, 2023
	Notional Amount		Asset Fair Value		Liability Fair Value		Notional Amount		Asset Fair Value		Liability Fair Value
Derivatives: Qualifying for hedge accounting(1)
Fair value hedges:
Foreign exchange contracts	$	100	$	1	$	—	$	98	$	—	$	4

Cash flow hedges:
Interest rate contracts	12		—		—		12		—		—
Foreign exchange contracts	718		38		5		718		33		7
Derivatives: Non-qualifying for hedge accounting(1)
Interest rate contracts	17,133		330		318		16,773		270		354
Foreign exchange contracts	160		1		1		183		4		2
Equity contracts	285		8		3		255		4		2
Credit contracts	177		—		5		137		—		2
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments(2)	N/A		1		—		N/A		2		—

Within reinsurance agreements(4)	N/A		59		47		N/A		61		49
Managed custody guarantees(3)	N/A		—		7		N/A		—		8
Stabilizers(3)	N/A		—		1		N/A		—		1
Total			$	438	$	387			$	374	$	429

(1) Open derivative contracts are reported as Derivatives assets or liabilities at fair value on the Condensed Consolidated Balance Sheets.

(2) Included in Fixed maturities, available-for-sale, at fair value on the Condensed Consolidated Balance Sheets.

(3) Included in Contract owner account balances on the Condensed Consolidated Balance Sheets.

(4) Included in Other liabilities, Other assets and Premium receivable and reinsurance recoverable on the Condensed Consolidated Balance Sheets.

N/A - Not applicable


			24

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The Company does not offset any derivative assets and liabilities in the Condensed Consolidated Balance Sheets. The disclosures set out in the table below include the fair values of Over-The-Counter (“OTC”) and cleared derivatives excluding exchange traded contracts subject to master netting agreements or similar agreements as of the dates indicated:


	Gross Amount Recognized(1)		Counterparty Netting(2)		Cash Collateral Netting(2)		Securities Collateral Netting(2)		Net receivables/ payables
March 31, 2024
Derivative assets	$	378	$	(273)	$	(96)	$	(5)	$	4
Derivative liabilities	332		(273)		(56)		(2)		1

December 31, 2023
Derivative assets	311		(216)		(76)		(8)		11
Derivative liabilities	370		(216)		(150)		(3)		1

(1) As of March 31, 2024, gross amounts exclude asset and liability exchange traded contracts of $0 and $0, respectively. As of December 31, 2023, gross amounts exclude asset and liability exchange traded contracts of $0 and $1, respectively.

(2) Represents the netting of receivable with payable balances, net of collateral, for the same counterparty under eligible netting agreements.

Collateral

Under the terms of the OTC Derivative International Swaps and Derivatives Association, Inc. ("ISDA") agreements, the Company may receive from, or deliver to, counterparties collateral to assure that terms of the ISDA agreements will be met with regard to the Credit Support Annex ("CSA"). The terms of the CSA call for the Company to pay interest on any cash received equal to the Federal Funds rate. To the extent cash collateral is received and delivered, it is included in Payables under securities loan and repurchase agreements, including collateral held and Short-term investments under securities loan agreements, including collateral delivered, respectively, on the Condensed Consolidated Balance Sheets and is reinvested in short-term investments. Collateral held is used in accordance with the CSA to satisfy any obligations. Investment grade bonds owned by the Company are the source of noncash collateral posted, which is reported in Securities pledged on the Condensed Consolidated Balance Sheets.

As of March 31, 2024, the Company held $99 and pledged $57 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. As of December 31, 2023, the Company held $84 and pledged $147 of net cash collateral related to OTC derivative contracts and cleared derivative contracts, respectively. In addition, as of March 31, 2024, the Company delivered $201 of securities and held $4 of securities as collateral. As of December 31, 2023, the Company delivered $201 of securities and held $11 of securities as collateral.

The location and effect of derivatives qualifying for hedge accounting on the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income are as follows for the periods indicated:


	2024				2023
	Interest Rate Contracts		Foreign Exchange Contracts		Interest Rate Contracts		Foreign Exchange Contracts
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Net investment income		Net investment income and Net gains/(losses)		Net investment income		Net investment income and Net gains/(losses)
Three Months Ended March 31,
Amount of Gain (Loss) Recognized in Other Comprehensive Income	$	—	$	8	$	—	$	(12)
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income	—		3		—		3


			25

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The location and amount of gain (loss) recognized in the Condensed Consolidated Statements of Operations for derivatives qualifying for hedge accounting are as follows for the periods indicated:


	2024				2023
	Net investment income		Net gains/ (losses)		Net investment income		Net gains/ (losses)










Three Months Ended March 31,
Total amounts of line items presented in the statements of operations in which the effects of fair value or cash flow hedges are recorded	$	529	$	43	$	545	$	(16)
Fair value hedges:
Foreign exchange contracts:
Hedged items	—		(2)		—		2
Derivatives designated as hedging instruments(1)	—		3		—		(1)
Cash flow hedges:


Foreign exchange contracts:
Gain (loss) reclassified from accumulated other comprehensive income into income	3		—		3		—

(1) For the three months ended March 31, 2024 and 2023, $1 of the change in derivative instruments designated and qualifying as fair value hedges was excluded from the assessment of hedge effectiveness and recognized currently in earning.

The location and effect of derivatives not designated as hedging instruments on the Condensed Consolidated Statements of Operations are as follows for the periods indicated:


	Location of Gain (Loss) Recognized on Derivative	Three Months Ended March 31,
		2024		2023
Derivatives: Non-qualifying for hedge accounting
Interest rate contracts	Net gains (losses)	$	126	$	(56)
Foreign exchange contracts	Net gains (losses)	(2)		1
Equity contracts	Net gains (losses)	10		3
Credit contracts	Net gains (losses)	(1)		(1)
Embedded derivatives and Managed custody guarantees:
Within fixed maturity investments	Net gains (losses)	(1)		1
Within reinsurance agreements(1)	Policyholder benefits	—		(26)
Managed custody guarantees	Net gains (losses)	1		3

Total		$	133	$	(75)

(1) For the three months ended March 31, 2024, the amount excluded gains (losses) of $1 from standalone derivatives recognized in Net gains (losses). For the three months ended March 31, 2023, the amount excluded immaterial gains (losses) from standalone derivatives recognized in Net gains (losses).


			26

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

4. Fair Value Measurements (excluding Consolidated Investment Entities)

Fair Value Measurement

The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of March 31, 2024:


	Level 1		Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	302	$	99		$	—		$	401
U.S. Government agencies and authorities	—		54			1			55
State, municipalities and political subdivisions	—		681			—			681
U.S. corporate public securities	—		7,321			18			7,339
U.S. corporate private securities	—		3,265			1,455			4,720
Foreign corporate public securities and foreign governments(1)	—		2,563			—			2,563
Foreign corporate private securities(1)	—		2,264			448			2,712
Residential mortgage-backed securities	—		3,286			52			3,338
Commercial mortgage-backed securities	—		3,465			—			3,465
Other asset-backed securities	—		2,372			55			2,427
Total fixed maturities, including securities pledged	302		25,370			2,029			27,701

Equity securities	120		—			99			219
Derivatives:
Interest rate contracts	1		329			—			330
Foreign exchange contracts	—		40			—			40
Equity contracts	—		8			—			8

Embedded derivative on reinsurance	—		59			—			59
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	2,169		16			—			2,185
Assets held in separate accounts	92,585		5,691			360			98,636
Total assets	$	95,177	$	31,513		$	2,488		$	129,178
Liabilities:
Contingent consideration	$	—	$	—		$	48		$	48
Stabilizer and MCGs	—		—			8			8
Derivatives:
Interest rate contracts	1		317			—			318
Foreign exchange contracts	—		6			—			6
Equity contracts	—		3			—			3
Credit contracts	—		5			—			5
Embedded derivative on reinsurance	—		(10)		(2)	57		(3)	47
Total liabilities	$	1	$	321		$	113		$	435

(1) Primarily U.S. dollar denominated.

(2) The Company classifies the embedded derivative within liabilities given the underlying nature of the balance and the right-of-offset.

(3) Represents the standalone derivative.


			27

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2023:


	Level 1		Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	346	$	57		$	—		$	403
U.S. Government agencies and authorities	—		55			1			56
State, municipalities and political subdivisions	—		771			—			771
U.S. corporate public securities	—		7,648			18			7,666
U.S. corporate private securities	—		3,234			1,526			4,760
Foreign corporate public securities and foreign governments(1)	—		2,702			—			2,702
Foreign corporate private securities(1)	—		2,376			436			2,812
Residential mortgage-backed securities	—		3,419			57			3,476
Commercial mortgage-backed securities	—		3,495			—			3,495
Other asset-backed securities	—		2,418			52			2,470
Total fixed maturities, including securities pledged	346		26,175			2,090			28,611
Equity securities	140		—			96			236
Derivatives:
Interest rate contracts	7		263			—			270
Foreign exchange contracts	—		37			—			37
Equity contracts	—		4			—			4

Embedded derivative on reinsurance	—		61			—			61
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	2,148		17			—			2,165
Assets held in separate accounts	87,180		5,605			348			93,133
Total assets	$	89,821	$	32,162		$	2,534		$	124,517
Liabilities:
Contingent consideration	$	—	$	—		$	51		$	51
Stabilizer and MCGs	—		—			9			9
Derivatives:
Interest rate contracts	—		354			—			354
Foreign exchange contracts	—		13			—			13
Equity contracts	—		2			—			2
Credit contracts	—		2			—			2
Embedded derivative on reinsurance	—		(9)		(2)	58		(3)	49
Total liabilities	$	—	$	362		$	118		$	480

(1) Primarily U.S. dollar denominated.

(2) The Company classifies the embedded derivative within liabilities given the underlying nature of the balance and the right-of-offset.

(3) Represents the standalone derivative.

Valuation of Financial Assets and Liabilities at Fair Value

Certain assets and liabilities are measured at estimated fair value on the Company's Condensed Consolidated Balance Sheets. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The exit price and the transaction (or entry) price will be the same at initial recognition in many


			28

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

circumstances. However, in certain cases, the transaction price may not represent fair value. The fair value of a liability is based on the amount that would be paid to transfer a liability to a third-party with an equal credit standing. Fair value is required to be a market-based measurement that is determined based on a hypothetical transaction at the measurement date, from a market participant’s perspective. The Company considers three broad valuation approaches when a quoted price is unavailable: (i) the market approach, (ii) the income approach and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given the instrument being measured and the availability of sufficient inputs. The Company prioritizes the inputs to fair valuation approaches and allows for the use of unobservable inputs to the extent that observable inputs are not available.

The Company utilizes a number of valuation methodologies to determine the fair values of its financial assets and liabilities in conformity with the concepts of exit price and the fair value hierarchy as prescribed in ASC Topic 820. Valuations are obtained from third-party commercial pricing services, brokers and industry-standard, vendor-provided software that models the value based on market observable inputs. The valuations obtained from third-party commercial pricing services are non-binding. The Company reviews the assumptions and inputs used by third-party commercial pricing services for each reporting period in order to determine an appropriate fair value hierarchy level. The documentation and analysis obtained from third-party commercial pricing services are reviewed by the Company, including in-depth validation procedures confirming the observability of inputs. The valuations are reviewed and validated monthly through the internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes.

When available, the fair value of the Company's financial assets and liabilities are based on quoted prices of identical assets in active markets and therefore, reflected in Level 1. The valuation approaches and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy are presented below.

For fixed maturities classified as Level 2 assets, fair values are determined using a matrix-based market approach, based on prices obtained from third-party commercial pricing services and the Company’s matrix and analytics-based pricing models, which in each case incorporate a variety of market observable information as valuation inputs. The market observable inputs used for these fair value measurements, by fixed maturity asset class, are as follows:

U.S. Treasuries: Fair value is determined using third-party commercial pricing services, with the primary inputs being stripped interest and principal U.S. Treasury yield curves that represent a U.S. Treasury zero-coupon curve.

U.S. government agencies and authorities, State, municipalities and political subdivisions: Fair value is determined using third-party commercial pricing services, with the primary inputs being U.S. Treasury yield curves, trades of comparable securities, credit spreads off benchmark yields and issuer ratings.

U.S. corporate public securities, Foreign corporate public securities and foreign governments: Fair value is determined using third-party commercial pricing services, with the primary inputs being benchmark yields, trades of comparable securities, issuer ratings, bids and credit spreads off benchmark yields.

U.S. corporate private securities and Foreign corporate private securities: Fair values are determined using a matrix and analytics-based pricing model. The model incorporates the current level of risk-free interest rates, current corporate credit spreads, credit quality of the issuer and cash flow characteristics of the security. The model also considers a liquidity spread, the value of any collateral, the capital structure of the issuer, the presence of guarantees, and prices and quotes for comparably rated publicly traded securities.

RMBS, CMBS and ABS: Fair value is determined using third-party commercial pricing services, with the primary inputs being credit spreads off benchmark yields, prepayment speed assumptions, current and forecasted loss severity, debt service coverage ratios, collateral type, payment priority within tranche and the vintage of the loans underlying the security.

Generally, the Company does not obtain more than one vendor price from pricing services per instrument. The Company uses a hierarchy process in which prices are obtained from a primary vendor and, if that vendor is unable to provide the price, the next vendor in the hierarchy is contacted until a price is obtained or it is determined that a price cannot be obtained from a commercial pricing service. When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited. Securities priced using independent broker quotes are classified as Level 3.


			29

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Fair values of privately placed bonds are determined primarily using a matrix-based pricing model and are generally classified as Level 2 assets. The model considers the current level of risk-free interest rates, current corporate spreads, the credit quality of the issuer and cash flow characteristics of the security. Also considered are factors such as the net worth of the borrower, the value of collateral, the capital structure of the borrower, the presence of guarantees and the Company’s evaluation of the borrower’s ability to compete in its relevant market. Using this data, the model generates estimated market values, which the Company considers reflective of the fair value of each privately placed bond.

Equity securities: Level 2 and Level 3 equity securities, typically private equities or equity securities not traded on an exchange, are valued by other sources such as analytics or brokers.

Derivatives: Derivatives are carried at fair value, which is determined using the Company’s derivative accounting system in conjunction with observable key financial data from third-party sources, such as yield curves, exchange rates, S&P 500 Index prices, Overnight Index Swap ("OIS") rates, and Secured Overnight Financing Rate ("SOFR"). The Company uses SOFR discounting for valuations of interest rate derivatives; however, certain legacy positions may continue to be discounted on OIS. The Company uses OIS for valuations of collateralized interest rate derivatives, which are obtained from third-party sources. For those derivatives that are unable to be valued by the accounting system, the Company typically utilizes values established by third-party brokers. Counterparty credit risk is considered and incorporated in the Company’s valuation process through counterparty credit rating requirements and monitoring of overall exposure. It is the Company’s policy to transact only with investment grade counterparties with a credit rating of A- or better. The Company’s nonperformance risk is also considered and incorporated in the Company’s valuation process. The Company also has certain credit default swaps and options that are priced by third party vendors or by using models that primarily use market observable inputs, but contain inputs that are not observable to market participants, which have been classified as Level 3. The remaining derivative instruments are valued based on market observable inputs and are classified as Level 2.

Contingent consideration: The fair value of the contingent consideration liability associated with the Company’s acquisitions uses unobservable inputs and as such are reported as Level 3. Unobservable inputs include projected revenues, duration of earnouts and other metrics as well as discount rate. Changes in the fair value of the contingent consideration are recorded in Operating expenses in the Company’s Condensed Consolidated Statements of Operations.

Stabilizer and MCGs: The Company records reserves for Stabilizer and MCG contracts containing guaranteed credited rates. The guarantee is treated as an embedded derivative or a stand-alone derivative (depending on the underlying product) and is required to be reported at fair value. The estimated fair value is determined based on the present value of projected future claims, minus the present value of future guaranteed premiums. At inception of the contract, the Company projects a guaranteed premium to be equal to the present value of the projected future claims. The income associated with the contracts is projected using relevant actuarial and capital market assumptions, including benefits and related contract charges, over the anticipated life of the related contracts. The cash flow estimates are projected under multiple capital market scenarios using observable risk-free rates and other best estimate assumptions. These derivatives are classified as Level 3 liabilities.

The discount rate used to determine the fair value of the Company's Stabilizer embedded derivative liabilities and MCG stand-alone derivative includes an adjustment to reflect the risk that these obligations will not be fulfilled ("nonperformance risk"). The nonperformance risk adjustment incorporates a blend of observable, similarly rated peer holding company credit spreads, adjusted to reflect the credit quality of the individual insurance subsidiary that issued the guarantee, as well as an adjustment to reflect the non-default spreads and the priority and recovery rates of policyholder claims.

Embedded derivatives on reinsurance: The carrying value of embedded derivatives is estimated based upon the change in the fair value of the assets supporting the funds withheld payable under reinsurance agreements. The fair value of the embedded derivative is based on market observable inputs and is classified as Level 2. The remaining derivative instruments are classified as Level 3 and are estimated using the income approach. The fair value is calculated by estimating future cash flows for a certain discrete projection period, estimating the terminal value, if appropriate, and discounting these amounts to present value at a rate of return that considers the relative risk of the cash flows and the time value of money.


			30

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Level 3 Financial Instruments

The fair values of certain assets and liabilities are determined using prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (i.e., Level 3 as defined by ASC Topic 820), including but not limited to liquidity spreads for investments within markets deemed not currently active. These valuations, whether derived internally or obtained from a third-party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. In addition, the Company has determined, for certain financial instruments, an active market is such a significant input to determine fair value that the presence of an inactive market may lead to classification in Level 3. In light of the methodologies employed to obtain the fair values of financial assets and liabilities classified as Level 3, additional information is presented below.

Significant Unobservable Inputs

The Company's Level 3 fair value measurements of its fixed maturities, equity securities and equity and credit derivative contracts are primarily based on broker quotes for which the quantitative detail of the unobservable inputs is neither provided nor reasonably corroborated, thus negating the ability to perform a sensitivity analysis. The Company performs a review of broker quotes by performing a monthly price variance comparison and back tests broker quotes to recent trade prices.


			31

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following tables summarize the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the periods indicated:


	Three Months Ended March 31, 2024
	Fair Value as of January 1		Realized/Unrealized Gains (Losses) Included in:				Purchases		Issuances		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Fair Value as of March 31		Change In Unrealized Gains (Losses) Included in Earnings(3)		Change In Unrealized Gains (Losses) Included in OCI(3)
			Net Income		OCI
Fixed maturities, including securities pledged:
U.S. Government agencies and authorities	$	1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	—
U.S. corporate public securities	18		—		—		—		—		—		—		—		—		18		—		—
U.S. corporate private securities	1,526		—		(15)		67		—		(9)		(79)		—		(35)		1,455		—		(19)

Foreign corporate private securities(1)	436		—		(4)		—		—		—		(35)		51		—		448		—		(4)
Residential mortgage-backed securities	57		(1)		—		—		—		—		—		—		(4)		52		(1)		—

Other asset-backed securities	52		—		—		5		—		—		(2)		—		—		55		—		—
Total fixed maturities, including securities pledged	2,090		(1)		(19)		72		—		(9)		(116)		51		(39)		2,029		(1)		(23)

Equity securities, at fair value	96		3		—		—		—		—		—		—		—		99		2		—
Contingent consideration	(51)		1		—		—		—		—		2		—		—		(48)		—		—

Stabilizer and MCGs(2)	(9)		2		—		—		(1)		—		—		—		—		(8)		—		—

Embedded derivatives on reinsurance	(58)		1		—		—		—		—		—		—		—		(57)		—		—

Assets held in separate accounts(4)	348		—		—		16		—		(3)		—		5		(6)		360		—		—

(1) Primarily U.S. dollar denominated.

(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract by contract basis. These amounts are included in Net gains (losses) in the Condensed Consolidated Statements of Operations.

(3) For financial instruments still held as of March 31 amounts are included in Net investment income and Net gains (losses) in the Condensed Consolidated Statements of Operations or Unrealized gains (losses) on securities in the Condensed Consolidated Statements of Comprehensive Income.

(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.


			32

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)



	Three Months Ended March 31, 2023
	Fair Value as of January 1		Realized/Unrealized Gains (Losses) Included in:				Purchases		Issuances		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Fair Value as of March 31		Change In Unrealized Gains (Losses) Included in Earnings(3)		Change In Unrealized Gains (Losses) Included in OCI(3)
			Net Income		OCI
Fixed maturities, including securities pledged:
U.S. Government agencies and authorities	$	1	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	—
U.S. corporate public securities	$	20	$	—	$	—	$	1	$	—	$	—	$	—	$	—	$	—	$	21	$	—	$	—
U.S. corporate private securities	1,801		1		34		40		—		—		(76)		—		—		1,800		1		34
Foreign corporate public securities and foreign governments(1)	3		—		—		—		—		—		—		—		(3)		—		—		—
Foreign corporate private securities(1)	432		1		4		57		—		—		(53)		—		—		441		1		4
Residential mortgage-backed securities	28		—		—		28		—		—		—		—		—		56		—		—

Other asset-backed securities	64		—		1		34		—		—		(1)		—		(21)		77		—		1
Total fixed maturities, including securities pledged	2,349		2		39		160		—		—		(130)		—		(24)		2,396		2		39

Equity securities, at fair value	196		(4)		—		—		—		—		—		—		—		192		(3)		—
Contingent consideration	(112)		—		—		—		—		—		—		—		—		(112)		—		—

Stabilizer and MCGs(2)	(6)		4		—		—		(1)		—		—		—		—		(3)		—		—

Embedded derivatives on reinsurance	(58)		—		—		—		—		—		—		—		—		(58)		—		—

Assets held in separate accounts(4)	347		4		—		—		—		(2)		—		—		—		349		—		—

(1) Primarily U.S. dollar denominated.


			33

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

For the three months ended March 31, 2024 and 2023, the transfers in and out of Level 3 for fixed maturities were due to the variation in inputs relied upon for valuation each quarter. Securities that are primarily valued using independent broker quotes when prices are not available from one of the commercial pricing services are reflected as transfers into Level 3. When securities are valued using more widely available information, the securities are transferred out of Level 3 and into Level 1 or 2, as appropriate.

Other Financial Instruments

The following disclosures are made in accordance with the requirements of ASC Topic 825 which requires disclosure of fair value information about financial instruments, whether or not recognized at fair value on the Condensed Consolidated Balance Sheets. ASC Topic 825 excludes certain financial instruments, including insurance contracts and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

The carrying values and estimated fair values of the Company's financial instruments as of the dates indicated:


	March 31, 2024				December 31, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturities, including securities pledged	$	27,701	$	27,701	$	28,611	$	28,611
Equity securities	219		219		236		236
Mortgage loans on real estate	5,118		4,831		5,218		4,941
Policy loans	349		349		352		352
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements	2,185		2,185		2,165		2,165
Derivatives	378		378		311		311
Embedded derivatives on reinsurance	59		59		61		61
Other investments	64		64		64		64
Assets held in separate accounts	98,636		98,636		93,133		93,133
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities(1)	$	32,196	$	33,978	$	32,848	$	34,856
Funding agreements with fixed maturities	1,200		1,206		1,175		1,178
Supplementary contracts, immediate annuities and other	607		545		628		571

Stabilizer and MCGs	8		8		9		9
Derivatives	332		332		371		371
Embedded derivative on reinsurance	47		47		49		49
Short-term debt	393		387		1		1
Long-term debt	1,707		1,617		2,097		1,998

(1) Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Stabilizer and MCGs section of the table above.


			34

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table presents the classification of financial instruments which are not carried at fair value on the Condensed Consolidated Balance Sheets:


Financial Instrument			Classification
Mortgage loans on real estate			Level 3
Policy loans			Level 2


Other investments			Level 2
Funding agreements without fixed maturities and deferred annuities			Level 3
Funding agreements with fixed maturities			Level 2
Supplementary contracts and immediate annuities			Level 3
Short-term debt and Long-term debt			Level 2

5. Deferred Policy Acquisition Costs and Value of Business Acquired

The following table presents a rollforward of deferred policy acquisition costs ("DAC") and value of business acquired ("VOBA") for the periods indicated:



	DAC						VOBA (1)
	Wealth Solutions Deferred and Individual Annuities		Health Solutions Group		Businesses exited
Balance as of January 1, 2023	$	691	$	144	$	1,043	$	439
Deferrals of commissions and expenses	59		49		—		4
Amortization expense	(55)		(29)		(105)		(37)
Balance as of December 31, 2023	$	695	$	164	$	938	$	406
Deferrals of commissions and expenses	16		12		—		1
Amortization expense	(14)		(8)		(26)		(9)
Balance as of March 31, 2024	$	697	$	168	$	912	$	398

(1)There was no loss recognition related to VOBA during the periods presented.

The following table shows a reconciliation of DAC and VOBA balances to the Condensed Consolidated Balance Sheets for the periods indicated:


	March 31, 2024		December 31, 2023
DAC:
Wealth Solutions Deferred and Individual Annuities	$	697	$	695
Health Solutions Group	168		164
Businesses exited	912		938
Other	47		47
VOBA	398		406
Total	$	2,222	$	2,250


			35

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

6. Reserves for Future Policy Benefits and Contract Owner Account Balances

Health Solutions Group products include long-duration supplemental term life, long-term disability business as well as critical illness and accident and hospital indemnity products. Health Solutions Voluntary products include long-duration whole life business. The following tables present the balances and changes in the liability for future policy benefits for Health Solutions Group, Health Solutions Voluntary and Businesses Exited as of March 31, 2024 and December 31, 2023.


	Health Solutions Group				Health Solutions Voluntary				Businesses Exited
	2024		2023		2024		2023		2024		2023
Present Value of Expected Net Premiums:
Balance at January 1	$	68	$	77	$	101	$	97	$	3,145	$	4,244
Beginning balance at original discount rate	71		84		102		100		2,992		4,128
Effect of change in cash flow assumptions	—		(6)		—		6		—		(921)
Effect of actual variances from expected experience	15		11		3		8		(93)		(91)
Adjusted balance at January 1	86		89		105		114		2,899		3,116
Interest accrual	1		2		1		4		41		196
Net premiums collected(1)	(5)		(20)		(4)		(16)		(79)		(320)
Ending balance at original discount rate	82		71		102		102		2,861		2,992
Effects of changes in discount rate assumptions	(5)		(3)		(3)		(1)		81		153
Balance at end of period	$	77	$	68	$	99	$	101	$	2,942	$	3,145


Present Value of Expected Future Policy Benefits:
Balance at January 1	$	899	$	881	$	307	$	285	$	7,538	$	8,639
Beginning balance at original discount rate	918		913		307		294		7,404		8,644
Effect of change in cash flow assumptions	17		(8)		1		13		—		(805)
Effect of actual variances from expected experience	8		(16)		4		9		(115)		(123)
Adjusted balance at January 1	943		889		312		316		7,289		7,716
Issuances	32		136		—		—		6		17
Interest accrual	6		24		4		14		95		412
Benefit payments	(36)		(131)		(8)		(23)		(173)		(741)
Ending balance at original discount rate	945		918		308		307		7,217		7,404
Effects of changes in discount rate assumptions	(29)		(19)		(10)		—		(19)		134
Balance at end of period	$	916	$	899	$	298	$	307	$	7,198	$	7,538


			36

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)


Net liability for future policy benefits	$	839	$	831	$	199	$	206	$	4,256	$	4,392
Less: Reinsurance recoverable	320		315		—		—		4,208		4,342
Net liability for future policy benefits, after reinsurance recoverable	$	519	$	516	$	199	$	206	$	48	$	50

(1) Net Premiums collected represent the portion of gross premiums collected from policyholders that is used to fund expected benefit payments.

The reconciliation of the net liability for future policy benefits to the liability for future policy benefits in the Condensed Consolidated Balance Sheets is presented below:


	March 31, 2024		December 31, 2023
Health Solutions Group	$	839	$	831
Health Solutions Voluntary	199		206
Businesses Exited - Future policy benefits	4,256		4,392
Businesses Exited – Additional liability	1,978		2,001
Business Exited - Other	1,334		1,335
Other (1)	821		795
Total	$	9,427	$	9,560

(1) Primarily consists of short duration contracts.

The amount of undiscounted expected gross premiums and future benefit payments is presented in the table below:


	March 31, 2024				December 31, 2023
	Undiscounted		Discounted		Undiscounted		Discounted
Health Solutions Group
Expected future benefit payments	$	1,176	$	945	$	1,144	$	918
Expected future gross premiums	281		209		271		214
Health Solutions Voluntary
Expected future benefit payments	671		308		668		307
Expected future gross premiums	343		214		341		213

The following table presents a rollforward of the additional reserve liability for Businesses exited for the periods indicated:


	Businesses exited
	March 31, 2024		December 31, 2023
Balance at beginning of period	$	2,001	$	2,107
Effect of change in cash flow assumptions	—		(44)
Effect of actual variances from expected experience	20		(100)
Adjusted balance at January 1	2,021		1,963
Interest accrual	21		84
Excess Benefits	(107)		(417)
Assessments	43		371
Balance at end of period	1,978		2,001
Less: Reinsurance recoverable	1,927		1,950
Net additional liability, after reinsurance recoverable	$	51	$	51


			37

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table presents the weighted average duration of the liability for future policy benefits and the weighted average interest rates for the periods indicated:


	Health Solutions Group				Health Solutions Voluntary				Businesses Exited
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Weighted average duration (in years)(1)	7		7		15		14		8		8
Interest accretion rate	4.0	%	4.0	%	5.2	%	5.2	%	4.9	%	4.9	%
Current discount rate	5.2	%	4.9	%	5.5	%	5.1	%	5.4	%	5.1	%

(1) Weighted average duration (in years) for Businesses Exited includes additional liability.

The weighted average interest rates for the additional liability related to businesses exited were 4.2% for the periods ended March 31, 2024 and December 31, 2023.

The following table presents a rollforward of Contract owner account balances for the periods indicated:


	Wealth Solutions Deferred Group and Individual Annuity				Businesses Exited
	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Balance at January 1	$	31,139	$	33,622	$	4,635	$	5,146
Deposits	631		2,309		71		288
Fee income	(11)		(9)		(93)		(373)
Surrenders, withdrawals and benefits	(1,354)		(5,663)		(149)		(577)
Net transfers (from) to the general account(1)	(47)		(5)		1		10
Interest credited	213		885		45		141
Ending Balance	$	30,571	$	31,139	$	4,510	$	4,635


Weighted-average crediting rate	2.8		%	2.8		%	3.7		%	2.5		%
Net amount at risk (2)	$	98		$	123		$	707		$	734
Cash surrender value	$	30,114		$	30,676		$	1,416		$	1,491

(1) Net transfers (from) to the general account for Wealth Solutions includes transfers of $(439) and $(523) for 2024 and 2023, respectively, related to Voya-managed institutional/mutual fund plan assets in trust that are not reflected on the Condensed Consolidated Balance Sheets.

(2) For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date and is calculated at a contract level. When a contract has both a living benefit and a death benefit, the Company calculates NAR at a contract level and aggregates the higher of the two values together.

The following table shows a reconciliation of the Contract owner account balances to the Condensed Consolidated Balance Sheets for the periods indicated:



	March 31, 2024		December 31, 2023
Wealth Solutions Deferred group and individual annuity	$	30,571	$	31,139
Businesses exited	4,510		4,635
Non-puttable funding agreements	$	1,200	$	1,175
Business exited - Other	1,235		1,275
Other(1)	926		950
Total	$	38,442	$	39,174

(1) Primarily consists of universal life contracts


			38

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table summarizes detail on the differences between the interest rate being credited to contract holders as of the periods indicated, and the respective guaranteed minimum interest rates ("GMIRs"):


	Account Value(1)
	Excess of crediting rate over GMIR
	At GMIR		Up to .50% Above GMIR		0.51% - 1.00% Above GMIR		1.01% - 1.50% Above GMIR		1.51% - 2.00% Above GMIR		More than 2.00% Above GMIR		Total
As of March 31, 2024
Up to 1.00%	$	108	$	4,812	$	3,641	$	2,030	$	1,022	$	788	$	12,401
1.01% - 2.00%	504		120		50		9		3		6		692
2.01% - 3.00%	10,867		95		63		107		—		4		11,136
3.01% - 4.00%	8,731		152		—		8		—		—		8,891
4.01% and Above	1,538		82		—		—		—		—		1,620
Renewable beyond 12 months (2)	412		—		—		—		3		—		415
Total discretionary rate setting products	$	22,160	$	5,261	$	3,754	$	2,154	$	1,028	$	798	$	35,155


As of December 31, 2023
Up to 1.00%	$	120	$	5,070	$	3,460	$	2,215	$	863	$	800	$	12,528
1.01% - 2.00%	527		131		50		8		3		6		725
2.01% - 3.00%	11,225		93		63		108		—		3		11,492
3.01% - 4.00%	8,873		152		—		6		—		—		9,031
4.01% and Above	1,566		83		—		—		—		—		1,649
Renewable beyond 12 months (2)	428		—		—		—		3		—		431
Total discretionary rate setting products	$	22,739	$	5,529	$	3,573	$	2,337	$	869	$	809	$	35,856

(1) Includes only the account values for investment spread products with GMIRs and discretionary crediting rates, net of policy loans. Excludes Stabilizer products, which are fee based.

(2) Represents multi year guaranteed annuity ("MYGA") contracts with renewal dates after March 31, 2024 and December 31, 2023 on which we are required to credit interest above the contractual GMIR for the next twelve months.

7. Reinsurance

The Company reinsures its business through a diversified group of reinsurers. However, the Company remains liable to the extent its reinsurers do not meet their obligations under the reinsurance agreements. The Company monitors trends in arbitration and any litigation outcomes with its reinsurers. Collectability of reinsurance balances are evaluated by monitoring ratings and evaluating the financial strength of its reinsurers. Large reinsurance recoverable balances with offshore or other non-accredited reinsurers are secured through various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit ("LOC").


			39

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Information regarding the effect of reinsurance on the Condensed Consolidated Balance Sheets is as follows as of the periods indicated:


	March 31, 2024
	Direct		Assumed		Ceded		Total, Net of Reinsurance
Assets
Premiums receivable	$	252	$	12	$	(248)	$	16
Reinsurance recoverable, net of allowance for credit losses	—		—		11,812		11,812
Total	$	252	$	12	$	11,564	$	11,828

Liabilities
Future policy benefits and contract owner account balances	$	46,936	$	933	$	—	$	47,869
Liability for funds withheld under reinsurance agreements	107		—		—		107
Total	$	47,043	$	933	$	—	$	47,976



	December 31, 2023
	Direct		Assumed		Ceded		Total, Net of Reinsurance
Assets
Premiums receivable	$	193	$	9	$	(219)	$	(17)
Reinsurance recoverable, net of allowance for credit losses	—		—		11,999		11,999
Total	$	193	$	9	$	11,780	$	11,982

Liabilities
Future policy benefits and contract owner account balances	$	47,781	$	953	$	—	$	48,734
Liability for funds withheld under reinsurance agreements	103		—		—		103
Total	$	47,884	$	953	$	—	$	48,837


			40

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Information regarding the effect of reinsurance on the Condensed Consolidated Statements of Operations is as follows for the periods indicated:


	Three Months Ended March 31,
	2024		2023
Premiums:
Direct premiums	$	1,029	$	908
Reinsurance assumed	7		10
Reinsurance ceded	(236)		(233)
Net premiums	$	800	$	685

Fee income:
Gross fee income	$	608	$	562
Reinsurance assumed	4		4
Reinsurance ceded	(99)		(102)
Net fee income	$	513	$	464

Interest credited and other benefits to contract owners / policyholders:
Direct interest credited and other benefits to contract owners / policyholders	$	1,181	$	1,108
Reinsurance assumed	19		19
Reinsurance ceded	(349)		(376)
Net interest credited and other benefits to contract owners / policyholders	$	851	$	751

If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. As of March 31, 2024 and December 31, 2023, the Company had a deposit asset net of the allowance for credit losses of $1.2 billion, which is reported in Other assets on the Condensed Consolidated Balance Sheets.

8. Separate Accounts

The following tables present a rollforward of separate account liabilities for the Wealth Solutions stabilizer and deferred annuity business, including a reconciliation to the Condensed Consolidated Balance Sheets, for the periods indicated:


	March 31, 2024						December 31, 2023
	Wealth Solutions Stabilizer		Wealth Solutions Deferred Annuity		Total		Wealth Solutions Stabilizer		Wealth Solutions Deferred Annuity		Total
Balance at January 1	$	7,175	$	82,310	$	89,485	$	7,196	$	69,152	$	76,348
Premiums and deposits	281		2,586		2,867		940		10,052		10,992
Fee income	(8)		(116)		(124)		(34)		(426)		(460)
Surrenders, withdrawals and benefits	(379)		(2,969)		(3,348)		(1,342)		(9,631)		(10,973)
Net transfers (from) to the separate account	—		(392)		(392)		—		(518)		(518)
Investment performance	—		6,241		6,241		415		13,681		14,096
Balance at end of period	$	7,069	$	87,660	$	94,729	$	7,175	$	82,310	$	89,485

Reconciliation to Condensed Consolidated Balance Sheets:
Other					3,907						3,648
Total Separate Account liabilities					$	98,636					$	93,133


			41

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Stabilizer products allow the contract holder to select either the market value of the account or the book value of the account at termination. The book value of the account is equal to deposits plus interest, less any withdrawals. The fair value is estimated using the income approach.

Cash surrender value represents the amount of the contract holders' account balances distributable at the balance sheet date, less certain surrender charges. The cash surrender value for Wealth Solutions deferred annuity products was $87,637 and $82,286, as of March 31, 2024 and December 31, 2023, respectively.

The aggregate fair value of assets, by major investment asset category, supporting separate accounts was as follows for the periods indicated:


	March 31, 2024		December 31, 2023
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	902	$	1,015

Corporate and foreign debt securities	2,688		2,528

Mortgage-backed securities	3,191		3,231
Equity securities (including mutual funds)	91,493		85,916

Cash, cash equivalents and short-term investments	289		399
Receivable for securities and accruals	73		44
Total	$	98,636	$	93,133

9. Segments

The Company provides its principal products and services through three segments: Wealth Solutions, Health Solutions and Investment Management. The Company's chief operating decision maker views and manages the business through these three segments.

The Wealth Solutions segment provides tax-deferred, employer-sponsored retirement savings plans and administrative services to corporate, education, healthcare, other non-profit and government entities, and stable value products to institutional clients where the Company may or may not be providing defined contribution products and services, as well as individual retirement accounts ("IRAs"), other retail financial products and comprehensive financial services to individual customers.

The Health Solutions segment provides stop loss, group life, voluntary employee-paid and disability products to mid-sized and large businesses as well as benefit administration software solutions to employers and health plans. On January 24, 2023, the Company completed its acquisition of Benefitfocus. The financial results of Benefitfocus are reported in the Health Solutions segment for periods after the acquisition.

The Investment Management segment provides investment products and retirement solutions across a broad range of geographies, market sectors, investment styles and capitalization spectrums. Products and services are offered to institutional clients, including public, corporate and union retirement plans, endowments and foundations and insurance companies, as well as individual investors and general accounts of the Company's insurance subsidiaries and are distributed through the Company's direct sales force, consultant channel and intermediary partners (such as banks, broker-dealers and independent financial advisers).

The Company includes in Corporate the following corporate and business activities:

•corporate operations, corporate level assets and financial obligations, financing and interest expenses, dividend payments made to preferred shareholders, and other items not allocated or directly related to the Company's segments, including items such as expenses related to organizational restructurings, certain expenses and liabilities of employee benefit plans, certain adjustments to short-term and long-term incentive accruals and intercompany eliminations; and

•investment income on assets backing surplus in excess of amounts held at the segment level.


			42

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Measurement

Adjusted operating earnings before income taxes is a meaningful measure used by management to evaluate its business and segment performance. This measure enhances the understanding of the Company’s financial results by focusing on the operating performance and trends of the underlying core business segments by excluding items that tend to be highly variable from period to period based on capital market conditions and/or other factors. The Company uses the same accounting policies and procedures to measure segment Adjusted operating earnings before income taxes as it does for the directly comparable U.S. GAAP measure Income (loss) before income taxes. Adjusted operating earnings before income taxes does not replace Income (loss) before income taxes as the U.S. GAAP measure of the Company’s consolidated results of operations. Therefore, the Company believes that it is useful to evaluate both measures when reviewing the Company’s financial and operating performance. Each segment’s Adjusted operating earnings before income taxes is calculated by adjusting Income (loss) before income taxes for the following items:

•Net investment gains (losses), which are significantly influenced by economic and market conditions, including interest rates and credit spreads, and are not indicative of normal operations. Net investment gains (losses) include gains (losses) on the sale of securities, impairments, changes in the fair value of investments using the FVO unrelated to the implied loan-backed security income recognition for certain mortgage-backed obligations, and changes in the fair value of derivative instruments, excluding gains (losses) associated with swap settlements and accrued interest. It also includes changes in the fair value of derivatives related to managed custody guarantees, net of related reserve increases (decreases), less the estimated cost of these benefits, changes in nonperformance spread, and changes in market risk benefits;

•Income (loss) related to businesses exited or to be exited through reinsurance or divestment, which includes gains and (losses) associated with transactions to exit blocks of business, amortization of intangible assets and residual run-off activity. Excluding this activity better reveals trends in the Company's core business and more closely aligns Adjusted operating earnings before income taxes with how the Company manages its segments;

•Income (loss) attributable to noncontrolling interests to which the Company is not economically entitled, such as Allianz's stake in the results of VIM Holdings LLC (referred to as redeemable noncontrolling interest or Allianz noncontrolling interest) or the attribution of results from consolidated VIEs or VOEs;

•Dividend payments made to preferred shareholders are included as reductions to reflect the Adjusted operating earnings before income taxes that are available to common shareholders;

•Other adjustments may include the following items:

•Income (loss) related to early extinguishment of debt since the outcome of decisions to restructure debt are not indicative of normal operations;

•Impairment of goodwill and intangible assets as these represent losses related to infrequent events and do not reflect normal, cash-settled expenses;

•Amortization of acquisition-related intangible assets as well as contingent consideration fair value adjustments incurred in connection with certain acquisitions which are not indicative of current Operating expense fundamentals;

•Expected return on plan assets net of interest costs associated with the Company's qualified defined benefit pension plan and immediate recognition of net actuarial gains (losses) related to all of the Company's pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments. These amounts do not reflect cash-settled expenses, and are not indicative of current Operating expense fundamentals; and

•Other items not indicative of normal operations or performance of the Company's segments or related to events such as capital or organizational restructurings, including certain costs related to debt and equity offerings, acquisition / merger integration expenses, severance and other third-party expenses associated with such activities, and expenses attributable to vacant real estate. These items vary widely in timing, scope and frequency between periods as well as between companies to which the Company is compared. Accordingly, the Company adjusts for these items as management believes that these items distort the ability to make a meaningful evaluation of the current and future performance of the Company's segments.


			43

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The summary below reconciles Adjusted operating earnings before income taxes for the segments to Income (loss) before income taxes for the periods indicated:


	Three Months Ended March 31,
	2024		2023
Adjusted operating earnings before income taxes by segment:
Wealth Solutions	$	186	$	132
Health Solutions	59		94
Investment Management	53		42
Corporate	(64)		(69)
Total including Allianz noncontrolling interest	235		200
Less: Earning (loss) attributable to Allianz noncontrolling interest	11		8
Total	$	224	$	192

Adjustments:
Net investment gains (losses)	63		(9)


Income (loss) related to businesses exited or to be exited through reinsurance or divestment	(32)		(33)
Income (loss) attributable to noncontrolling interests	37		46


Dividend payments made to preferred shareholders	17		14
Other adjustments	(22)		(70)
Total adjustments to income (loss) before income taxes	63		(51)

Income (loss) before income taxes	$	287	$	141

Adjusted operating revenues is a measure of the Company's segment revenues. Each segment's Operating revenues are calculated by adjusting Total revenues to exclude the following items:

•Net investment gains (losses);

•Revenues related to businesses exited or to be exited through reinsurance or divestment;

•Revenues attributable to noncontrolling interests, which represents the attribution of results from consolidated VIEs or VOEs; and

•Other adjustments primarily reflect fee income earned by the Company's broker-dealers for sales of non-proprietary products, which are reflected net of commission expense in the Company's segments’ operating revenues, other items where the income is passed on to third parties and the elimination of intercompany investment expenses included in Adjusted operating revenues.


			44

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The summary below reconciles Adjusted operating revenues for the segments to Total revenues for the periods indicated:


	Three Months Ended March 31,
		2024		2023
Adjusted operating revenues by segment:
Wealth Solutions		$	719	$	684
Health Solutions		905		774
Investment Management		234		229
Corporate		4		11
Total		$	1,863	$	1,697

Adjustments:
Net investment gains (losses)		$	47	$	(14)


Revenues related to businesses exited or to be exited through reinsurance or divestment		24		30
Revenues attributable to noncontrolling interests		65		60
Other adjustments		52		60
Total adjustments to revenues		188		137

Total revenues		$	2,051	$	1,835

Other Segment Information

The Investment Management segment revenues include the following intersegment revenues, primarily consisting of asset-based management and administration fees for the periods indicated:


	Three Months Ended March 31,
		2024		2023
Investment Management intersegment revenues		$	20	$	22

The summary below presents Total assets for the Company’s segments as of the dates indicated:


	March 31, 2024		December 31, 2023
Wealth Solutions	$	126,883	$	122,318
Health Solutions	3,395		3,336
Investment Management	1,656		1,600
Corporate	25,418		25,527
Total assets, before consolidation(1)	157,352		152,781
Consolidation of investment entities	4,279		4,304


Total assets	$	161,631	$	157,085

(1) Total assets, before consolidation include the Company's direct investments in CIEs prior to consolidation, which are accounted for using the equity method or fair value option.

10. Share-based Incentive Compensation Plans

The Company offers equity-based compensation awards to its employees and non-employee directors under various employee and non-employee incentive plans (together, the "Omnibus Plans"). As of March 31, 2024, common stock reserved and available for issuance under the Omnibus Plans was 7,373,481 shares.


			45

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Compensation Cost

The following table summarizes share-based compensation expense, which includes expenses related to awards granted under the Omnibus Plans for the periods indicated:


	Three Months Ended March 31,
	2024		2023
Restricted Stock Unit (RSU) awards	$	23	$	37
Performance Stock Unit (PSU) awards	16		26


Total share-based compensation expense	39		63
Income tax benefit	10		15
After-tax share-based compensation expense	$	29	$	48

Awards Outstanding

The following table summarizes RSU and PSU awards activity under the Omnibus Plans for the periods indicated:


	RSU Awards				PSU Awards
(awards in millions)	Number of Awards		Weighted Average Grant Date Fair Value			Number of Awards		Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2024	2.0		$	67.06		2.2		$	61.17
Adjustment for PSU performance factor	—		—			(0.1)		46.94
Granted	0.8		67.51			0.7		59.21
Vested	(0.7)		65.20			(0.5)		52.71
Forfeited	—	*	69.87			—	*	44.96
Outstanding as of March 31, 2024	2.1		$	67.69		2.3		$	63.57

*Less than 0.1

The following table summarizes the number of options under the Omnibus Plans for the periods indicated:


	Stock Options
(awards in millions)	Number of Awards		Weighted Average Exercise Price
Outstanding as of January 1, 2024	1.2		$	44.79

Granted	—		—
Exercised	—	*	47.48
Forfeited	—		—
Outstanding as of March 31, 2024	1.2		$	44.68

Vested, exercisable, as of March 31, 2024	1.2		$	44.68

*Less than 0.1


			46

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

11. Shareholders' Equity

Common Shares

The following table presents the rollforward of common shares used in calculating the weighted average shares utilized in the basic earnings per common share calculation for the periods indicated:


	Common Shares

(shares in millions)	Issued		Held in Treasury	Outstanding
Balance, January 1, 2023	97.8		0.6	97.2
Common shares issued	9.7		—	9.7
Common shares acquired - share repurchase	—		5.4	(5.4)
Share-based compensation	2.1		0.7	1.4
Treasury stock retirement	(6.0)		(6.0)	—
Balance, December 31, 2023	103.6		0.7	102.9
Common shares issued	—	*	—	—
Common shares acquired - share repurchase	—		2.4	(2.4)
Share-based compensation	1.3		0.5	0.8
Balance, March 31, 2024	104.9		3.6	101.3

*Less than 0.1

Dividends declared per share of Common Stock were as follows for the periods indicated:


	Three Months Ended March 31,
	2024		2023
Dividends declared per share of Common Stock	$	0.40	$	0.20

Share Repurchase Program

From time to time, the Company's Board of Directors authorizes the Company to repurchase shares of its common stock. These authorizations permit stock repurchases up to a prescribed dollar amount and generally may be accomplished through various means, including, without limitation, open market transactions, privately negotiated transactions, forward, derivative, or accelerated repurchase, or automatic repurchase transactions, including 10b5-1 plans, or tender offers. Share repurchase authorizations typically expire if unused by a prescribed date.

As of March 31, 2024, the Company's remaining repurchase capacity under the Board's prior authorization was $225. On April 23, 2024, the Company's Board of Directors provided an additional share repurchase authorization of $500. This share repurchase authorization expires on June 30, 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 of Directors at any time.

During the three months ended March 31, 2024, the Company repurchased 2.4 million shares of common stock for $172.

Subsequent to March 31, 2024, the Company repurchased 802,725 shares pursuant to a 10b5-1 plan for an aggregate purchase price of $56.


			47

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Preferred Stock

As of March 31, 2024 and December 31, 2023, there were 100,000,000 shares of preferred stock authorized. Preferred stock issued and outstanding are as follows:


	March 31, 2024		December 31, 2023
Series	Issued	Outstanding	Issued	Outstanding
7.758% Non-cumulative Preferred Stock, Series A	325,000	325,000	325,000	325,000
5.35% Non-cumulative Preferred Stock, Series B	300,000	300,000	300,000	300,000
Total	625,000	625,000	625,000	625,000

The declaration of dividends on preferred stock per share and in the aggregate were as follows for the periods indicated:


	Series A				Series B
Three Months Ended March 31,	Per Share		Aggregate		Per Share		Aggregate
2024	$	38.790	$	13	$	13.375	$	4
2023	30.625		10		13.375		4

As of March 31, 2024, there were no preferred stock dividends in arrears.

12. Earnings per Common Share

The following table presents a reconciliation of Net income (loss) and shares used in calculating basic and diluted net income (loss) per common share for the periods indicated:


	Three Months Ended March 31,
(in millions, except for per share data)	2024		2023
Earnings
Net income (loss) available to common shareholders:
Net income (loss)	$	288	$	129
Less: Preferred stock dividends	17		14
Less: Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest	37		46


Net income (loss) available to common shareholders	$	234	$	69

Weighted average common shares outstanding
Basic	102.1		97.7
Dilutive Effects:
Warrants(1)	—		8.9
RSUs	1.2		1.2
PSUs	0.8		1.2
Stock Options	0.4		0.6
Diluted	104.5		109.6

Net income (loss) available to Voya Financial, Inc.'s common shareholders per common share (2):


Basic	$	2.29	$	0.70



Diluted	$	2.24	$	0.63

(1) See the Shareholders' Equity Note to the Consolidated Financial Statements in Part II, Item 8. of the Company's Annual Report on Form 10-K for the year ended December 31, 2023 for additional information on warrants settled.

(2) Basic and diluted earnings per share are calculated using unrounded, actual amounts. Therefore, the components of earnings per share may not sum to its corresponding total. Diluted earnings per share is computed assuming the issuance of restricted stock units, stock options, performance share units and warrants using the treasury stock method.


			48

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

13. Accumulated Other Comprehensive Income (Loss)

Shareholders' equity included the following components of Accumulated other comprehensive income ("AOCI") as of the dates indicated:


	March 31,
	2024		2023
Fixed maturities, net of impairment	$	(2,498)	$	(2,635)

Derivatives(1)	67		109





Change in current discount rate	(853)		(855)
Deferred income tax asset (liability)(2)	813		833
Total	(2,471)		(2,548)
Pension and other postretirement benefits liability, net of tax	2		3
AOCI	$	(2,469)	$	(2,545)

(1) Gains and losses reported in AOCI from hedge transactions that resulted in the acquisition of an identified asset are reclassified into earnings in the same period or periods during which the asset acquired affects earnings. As of March 31, 2024, the portion of the AOCI that is expected to be reclassified into earnings within the next 12 months is $14.

(2) The Company uses the portfolio method to determine when stranded tax benefits (or detriments) are released from AOCI.

Changes in AOCI, including the reclassification adjustments recognized in the Condensed Consolidated Statements of Operations, were as follows for the periods indicated:



	Three Months Ended March 31, 2024
	Before-Tax Amount			Income Tax (Benefit)		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	(145)		$	30	$	(115)



Adjustments for amounts recognized in Net gains (losses) in the Condensed Consolidated Statements of Operations	16			(3)		13



Change in unrealized gains (losses) on available-for-sale securities	(129)			27		(102)
Derivatives:
Derivatives	8		(1)	(2)		6
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(4)			1		(3)
Change in unrealized gains (losses) on derivatives	4			(1)		3

Change in current discount rate	38			(8)		30



Change in Accumulated other comprehensive income (loss)	$	(87)		$	18	$	(69)

(1) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information


			49

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)



	Three Months Ended March 31, 2023
	Before-Tax Amount			Income Tax (Benefit)		After-Tax Amount
Available-for-sale securities:
Fixed maturities	$	661		$	(139)	$	522



Adjustments for amounts recognized in Net gains (losses) in the Condensed Consolidated Statements of Operations	(1)			—		(1)




Change in unrealized gains (losses) on available-for-sale securities	660			(139)		521
Derivatives:
Derivatives	(12)		(1)	3		(9)
Adjustments related to effective cash flow hedges for amounts recognized in Net investment income in the Condensed Consolidated Statements of Operations	(5)			1		(4)
Change in unrealized gains (losses) on derivatives	(17)			4		(13)

Change in current discount rate	2			—		2




Change in Accumulated other comprehensive income (loss)	$	645		$	(135)	$	510

(1) See the Derivative Financial Instruments Note to these Condensed Consolidated Financial Statements for additional information.

14. Revenue from Contracts with Customers

Financial services and software subscriptions and services revenue is disaggregated by type of service in the following table:


	Three Months Ended March 31,
		2024		2023
Wealth Solutions:
Advisory and recordkeeping and administration		$	143	$	121
Distribution and shareholder servicing		34		29

Investment Management:
Advisory, asset management and recordkeeping and administration		242		229
Distribution and shareholder servicing		39		32

Health Solutions:
Recordkeeping and administration		5		6
Software subscriptions and services		54		47
Corporate:
Recordkeeping and administration		2		12


Total financial services and software subscriptions and services revenue		519		476
Revenue from other sources(1)		82		66
Total Fee income and Other revenue		$	601	$	542

(1) Primarily consists of revenue from insurance contracts and financial instruments.

Net receivables of $319 and $339 are included in Other assets on the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023, respectively.


			50

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

15. Income Taxes

The Company uses the estimated annual effective tax rate method in computing its interim tax provision. Certain items, including changes in the realizability of deferred tax assets and changes in liabilities for uncertain tax positions, are excluded from the estimated annual effective tax rate and the actual tax expense or benefit is reported in the period the related item is incurred.

The Company's effective tax rate for the three months ended March 31, 2024 was (0.3)%. The effective tax rate differed from the statutory rate of 21% primarily due to the Security Life of Denver Company capital loss carryback, the effect of the dividends received deduction ("DRD"), noncontrolling interest and tax credits.

On January 4, 2021, the Company completed a series of transactions pursuant to a Master Transaction Agreement with Resolution Life U.S. Holdings Inc. ("Resolution Life US"). As a part of these transactions, Resolution Life US acquired the Company's wholly owned subsidiary, Security Life of Denver Company ("SLD"). SLD generated capital losses in the 2023 and 2022 tax years, which are included in a carryback claim for the Company. The Company recorded a $38 and $92 tax benefit in 2024 and 2023, respectively, resulting in a decrease to the effective tax rate (the "Security Life of Denver Company capital loss carryback").

The Company's effective tax rate for the three months ended March 31, 2023 was 8.5%. The effective tax rate differed from the statutory rate of 21% primarily due to noncontrolling interest, the effect of the DRD and tax credits.

Valuation allowances are provided when it is considered more likely than not that some portion or all of the deferred tax assets ("DTAs") will not be realized. The Company reviews all available positive and negative evidence to determine if a valuation allowance is recorded, including historical and projected pre-tax book income, tax planning strategies and reversals of temporary differences. As of March 31, 2024, the Company had year-to-date losses on securities of $125 in Other comprehensive income, which increased the related DTA. However, operating income remained positive for the period and was largely consistent with the 2023 year-end valuation allowance analysis. After evaluating the positive and negative evidence, the Company did not change its judgement regarding the realization of DTAs. For more information related to the valuation allowance, refer to the Income Taxes Note to the Consolidated Financial Statements included in Part II, Item 8. of the Annual Report on Form 10-K.

Tax Regulatory Matters

For the tax years 2022 through 2024, the Company participates in the Internal Revenue Service ("IRS") Compliance Assurance Process ("CAP"), which is a continuous audit program provided by the IRS. For the 2023 tax year, the Company is in the Compliance Maintenance Bridge ("Bridge") phase of CAP. In the Bridge phase, the IRS did not conduct any review or provide any letters of assurance for that tax year. For the 2024 tax year, the Company is in the Compliance Maintenance Bridge Plus ("Bridge Plus") phase of CAP. In the Bridge Plus phase, the IRS will review the tax return and issue either a full or partial acceptance letter upon completion of review.

Tax Legislative Matters

In August 2022, the Inflation Reduction Act was signed into law creating the corporate alternative minimum tax ("CAMT"). The IRS has only issued limited guidance on the CAMT, and uncertainty remains regarding the application of and potential adjustments to the CAMT. The Company is not subject to the CAMT based on this guidance and will continue to evaluate the applicability as more guidance is provided.


			51

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

16. Financing Agreements

Short-term and Long-term Debt

The following table summarizes the carrying value of the Company’s debt issued or borrowed and outstanding as of the periods indicated:


	Issuer	Maturity	March 31, 2024		December 31, 2023




3.976% Senior Notes, due 2025 (2)(3)	Voya Financial, Inc.	02/15/2025	$	393	$	390
3.65% Senior Notes, due 2026 (2)(3)	Voya Financial, Inc.	06/15/2026	445		446
5.7% Senior Notes, due 2043 (2)(3)	Voya Financial, Inc.	07/15/2043	396		396
4.8% Senior Notes, due 2046 (2)(3)	Voya Financial, Inc.	06/15/2046	297		297
4.7% Fixed-to-Floating Rate Junior Subordinated Notes, due 2048	Voya Financial, Inc.	01/23/2048	336		336


7.63% Voya Holdings Inc. debentures, due 2026(1)	Voya Holdings, Inc.	08/15/2026	139		139
6.97% Voya Holdings Inc. debentures, due 2036(1)	Voya Holdings, Inc.	08/15/2036	79		79
8.42% Equitable of Iowa Companies Capital Trust II Notes, due 2027	Equitable of Iowa Capital Trust II	04/01/2027	13		13


1.00% Windsor Property Loan	Voya Retirement Insurance and Annuity Company	06/14/2027	2		2



Subtotal			2,100		2,098
Less: Current portion of long-term debt			393		1
Total			$	1,707	$	2,097

(1) Guaranteed by ING Group.

(2) Interest is paid semi-annually in arrears.

(3) Guaranteed by Voya Holdings.

As of March 31, 2024, the Company was in compliance with its debt covenants.

Aetna Notes

As of March 31, 2024, outstanding principal amount of the 7.63% Voya Holdings Inc. debentures, due 2026 and 6.97% Voya Holdings Inc. debentures, due 2036 (collectively, the "Aetna Notes") was $218, which is guaranteed by ING Group. As of March 31, 2024, the Company provided $225 of collateral benefiting ING Group, comprised of a deposit of $213 to a control account with a third-party collateral agent and $12 of letter of credit. The collateral may be exchanged at any time upon the posting of any other form of acceptable collateral to the account.

Credit Facilities

The Company uses credit facilities as part of its capital management practices. Total fees associated with credit facilities for the three months ended March 31, 2024 and 2023 were immaterial.


			52

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table summarizes the Company's credit facilities as of March 31, 2024:


($ in millions)
Obligor / Applicant	Business Supported	Secured / Unsecured	Committed / Uncommitted	Expiration	Capacity			Utilization			Unused Commitment
Voya Financial, Inc.	Other	Unsecured	Committed	05/01/2028	$	500		$	—		$	500

























Voya Financial, Inc.	Other	Unsecured	Committed	04/07/2025	12		(2)	12		(1)	—


Total					$	512		$	12		$	500

(1) Amount utilized as collateral for outstanding Aetna Notes.

(2) In March of 2024, the Company decreased the capacity of its letter of credit, expiring in 2025, from $200 to $12. This reduction was due to the reduced collateral requirements resulting from the maturity of a portion of the Aetna Notes. Additionally, the full capacity was not expected to be utilized through its expiration.

Put Option Agreement for Senior Debt Issuance

During 2015, the Company entered into an off-balance sheet 10-year put option agreement with a Delaware trust formed by the Company, in connection with the sale by the trust of pre-capitalized trust securities ("P-Caps"), that provides Voya Financial, Inc. the right, at any time over a 10-year period, to issue up to $500 principal amount of its 3.976% Senior Notes due 2025 ("3.976% Senior Notes") to the trust and receive in exchange a corresponding principal amount of U.S. Treasury securities that are held by the trust. The 3.976% Senior Notes will not be issued unless and until the put option is exercised. In return, the Company pays a semi-annual put premium to the trust at a rate of 1.875% per annum applied to the unexercised portion of the put option and reimburses the trust for its expenses. The put premium and expense reimbursements are recorded in Operating expenses in the Condensed Consolidated Statements of Operations. If and when issued, the 3.976% Senior Notes will be guaranteed by Voya Holdings.

Upon an event of default, the put option will be exercised automatically in full. The Company has a one-time right to unwind a prior voluntary exercise of the put option by repurchasing all of the 3.976% Senior Notes then held by the trust for U.S. Treasury securities. If the put option has been fully exercised, the 3.976% Senior Notes issued may be redeemed by the Company prior to their maturity at par or, if greater, at a make-whole redemption price, in each case plus accrued and unpaid interest to the date of redemption. The P-Caps are to be redeemed by the trust on February 15, 2025 or upon any early redemption of the 3.976% Senior Notes.

On May 1, 2023, pursuant to the put option agreement, the Company exercised the put option to require the trust to purchase $400 aggregate principal amount of 3.976% Senior Notes in exchange for a corresponding amount of U.S. Treasury securities held by the trust. On May 3, 2023, the Company issued $400 aggregate principal amount of 3.976% Senior Notes to the trust and the Company received approximately $400 of U.S. Treasury securities. The proceeds from the sale of the U.S. Treasury securities were used to redeem the 5.65% Fixed-to-Floating Rate Junior Subordinated Notes due 2053 on May 15, 2023.

As of March 31, 2024, the Company may issue up to $100 principal amount of its 3.976% Senior Notes to the trust under the put option agreement.

Senior Unsecured Credit Facility Agreement

As of March 31, 2024, the Company had a $500 senior unsecured credit facility with a syndicate of banks which expires May 1, 2028. The facility provides $500 of committed capacity for revolving loan borrowings and letters of credit issuances, including a sublimit for swingline (short-term) loans in an aggregate amount of up to $25. As of March 31, 2024, there were no amounts outstanding as revolving credit borrowings, no amounts of LOCs outstanding, and no amounts of swingline loans outstanding under the senior unsecured credit facility. Under the terms of the facility, the Company is required to maintain a minimum net worth of $4.998 billion, which may increase upon any future equity issuances by the Company.


			53

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

17. Commitments and Contingencies

Leases

During the three months ended March 31, 2024, there was no impairment on the Company's right-of-use asset associated with leased office space. During the three months ended March 31, 2023, the Company recorded an impairment of $2 on its right-of-use asset associated with leased office space. The impairments are included in Operating expenses in the Condensed Consolidated Statements of Operations.

Commitments

Through the normal course of investment operations, the Company commits to either purchase or sell securities, mortgage loans, or money market instruments, at a specified future date and at a specified price or yield. The inability of counterparties to honor these commitments may result in either a higher or lower replacement cost. Also, there is likely to be a change in the value of the securities underlying the commitments.

As of March 31, 2024, the Company had off-balance sheet commitments to acquire mortgage loans of $66 and purchase limited partnerships and private placement investments of $975, of which $328 related to consolidated investment entities.

Restricted Assets

The Company is required to maintain assets on deposit with various regulatory authorities to support its insurance operations. The Company may also post collateral in connection with certain securities lending, repurchase agreements, funding agreements, credit facilities and derivative transactions. The components of the fair value of the restricted assets were as follows as of the dates indicated:


	March 31, 2024		December 31, 2023
Fixed maturity collateral pledged to FHLB(1)	$	1,803	$	1,956
FHLB restricted stock(2)	63		64
Fixed maturities-state and other deposits	37		37
Cash and cash equivalents	15		25
Securities pledged(3)	1,227		1,160
Total restricted assets	$	3,145	$	3,242

(1) Included in Fixed maturities, available for sale, at fair value on the Condensed Consolidated Balance Sheets.

(2) Included in Other investments on the Condensed Consolidated Balance Sheets.

(3) Includes the fair value of loaned securities of $912 and $842 as of March 31, 2024 and December 31, 2023, respectively. In addition, as of March 31, 2024 and December 31, 2023, the Company delivered securities as collateral of $201 and $201, respectively, and repurchase agreements of $114 and $117, respectively. Loaned securities and securities delivered as collateral are included in Securities pledged on the Condensed Consolidated Balance Sheets.

Federal Home Loan Bank Funding Agreements

The Company is a member of the FHLB of Des Moines and the FHLB of Boston and is required to pledge collateral to back funding agreements issued to the FHLB. As of March 31, 2024 and December 31, 2023, the Company had $1,200 and $1,175, respectively, in non-putable funding agreements, which are included in Contract owner account balances on the Condensed Consolidated Balance Sheets. As of March 31, 2024 and December 31, 2023, assets with a market value of approximately $1,803 and $1,956, respectively, collateralized the FHLB funding agreements. Assets pledged to the FHLB are included in Fixed maturities, available-for-sale, at fair value on the Condensed Consolidated Balance Sheets.

Litigation, Regulatory Matters and Contingencies

Litigation, regulatory and other loss contingencies arise in connection with the Company's activities as a diversified financial services firm. The Company is a defendant in a number of litigation matters, arising from the conduct of its business, both in the ordinary course and otherwise. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. The variability in pleading requirements and past experience


			54

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

demonstrate that the monetary and other relief that may be requested in a lawsuit or claim often bears little relevance to the merits or potential value of a claim.

As with other financial services companies, the Company periodically receives informal and formal requests for information from various state and federal governmental agencies and self-regulatory organizations in connection with inquiries and investigations of the products and practices of the Company or the financial services industry. For example, the Company is cooperating with a publicly reported, industry-wide investigation by the SEC regarding compliance with certain record-keeping requirements for business-related electronic communications on unapproved channels. It is the practice of the Company to cooperate fully in these matters.

While it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company's financial position, based on information currently known, management believes that neither the outcome of pending litigation and regulatory matters nor potential liabilities associated with other loss contingencies, are likely to have such an effect. However, given the large and indeterminate amounts sought in certain litigation and the inherent unpredictability of all such matters, it is possible that an adverse outcome in certain of the Company's litigation or regulatory matters, or liabilities arising from other loss contingencies, could, from time to time, have a material adverse effect upon the Company's results of operations or cash flows in a particular quarterly or annual period.

For some matters, the Company is able to estimate a possible range of loss. For such matters in which a loss is probable, an accrual has been made. For matters where the Company, however, believes a loss is reasonably possible, but not probable, no accrual is required. For matters for which an accrual has been made, but there remains a reasonably possible range of loss in excess of the amounts accrued or for matters where no accrual is required, the Company develops an estimate of the unaccrued amounts of the reasonably possible range of losses. As of March 31, 2024, the Company estimates the aggregate range of reasonably possible losses, in excess of any amounts accrued for these matters as of such date, to be up to approximately $100.

For other matters, the Company is currently not able to estimate the reasonably possible loss or range of loss. The Company is often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from plaintiffs and other parties, investigation of factual allegations, rulings by a court on motions or appeals, analysis by experts and the progress of settlement discussions. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and regulatory contingencies and updates the Company's accruals, disclosures and reasonably possible losses or ranges of loss based on such reviews.

Litigation includes Ravarino, et al. v. Voya Financial, Inc., et al. (USDC District of Connecticut, No. 3:21-cv-01658)(filed December 14, 2021). In this putative class action, the plaintiffs allege that the named defendants breached their fiduciary duties of prudence and loyalty in the administration of the Voya 401(k) Savings Plan. The plaintiffs claim that the named defendants did not exercise proper prudence in their management of allegedly poorly performing investment options, including proprietary funds, and passed excessive investment-management and other administrative fees for proprietary and non-proprietary funds onto plan participants. The plaintiffs also allege that the defendants engaged in self-dealing through the inclusion of the Voya Stable Value Option into the plan offerings and by setting the “crediting rate” for participants’ investment in the Stable Value Fund artificially low in relation to Voya’s general account investment returns in order to maximize the spread and Voya’s profits at the participants’ expense. The complaint seeks disgorgement of unjust profits as well as costs incurred. On June 13, 2023, the Court issued a ruling granting in part and denying in part Voya's motion to dismiss. The court largely dismissed the claims for breach of fiduciary duty. The remaining claims concern allegations of breaches of the ERISA prohibited transactions rule and a claim for failure to monitor the Voya Small Cap Growth fund. The Company continues to deny the allegations, which it believes are without merit, and intends to defend the case vigorously.

In November 2022, the Company acquired Czech Asset Management, L.P., pursuant to an agreement that provides for earn-out payments if certain contingencies are met. On March 11, 2024, the Company received from the sellers a demand for arbitration of a claim that the full amount of these earn-outs had become payable. The Company is opposing the claim in arbitration.

Contingencies related to Performance-based Capital Allocations on Private Equity Funds

Certain performance-based capital allocations related to sponsored private equity funds ("carried interest") are not final until the conclusion of an investment term specified in the relevant asset management contract. As a result, such carried interest, if


			55

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

accrued or paid to the Company during such term, is subject to later adjustment based on subsequent fund performance. If the fund’s cumulative investment return falls below specified investment return hurdles, some or all of the previously accrued carried interest is reversed to the extent that the Company is no longer entitled to the performance-based capital allocation. Should the fund’s cumulative investment return subsequently increase above specified investment return hurdles in future periods, previous reversals could be fully or partially recovered.

As of March 31, 2024, approximately $91 of previously accrued carried interest would be subject to full or partial reversal in future periods if cumulative fund performance hurdles are not maintained throughout the remaining life of the affected funds.

18. Consolidated and Nonconsolidated Investment Entities

The Company holds variable interests in certain investment entities in the form of debt or equity investments, as well as the right to receive management fees, performance fees, and carried interest. The Company consolidates certain entities under the VIE guidance when it is determined that the Company is the primary beneficiary. Alternatively, certain entities are consolidated under the VOE guidance when control is obtained through voting rights. Refer to the Condensed Consolidated Balance Sheets for the assets and liabilities of the Company's consolidated investment entities.

The Company has no right to the benefits from, nor does it bear the risks associated with consolidated investment entities beyond the Company’s direct equity and debt investments in and management fees generated from these entities. Such direct investments amounted to approximately $343 and $316 as of March 31, 2024 and December 31, 2023, respectively. If the Company were to liquidate, the assets held by consolidated investment entities would not be available to the general creditors of the Company as a result of the liquidation.

Consolidated VIEs and VOEs

Collateral Loan Obligations Entities ("CLOs")

The Company is involved in the design, creation, and the ongoing management of CLOs. These entities are created for the purpose of acquiring diversified portfolios of senior secured floating rate leveraged loans, and securitizing these assets by issuing multiple tranches of collateralized debt; thereby providing investors with a broad array of risk and return profiles. Also known as collateralized financing entities under ASC Topic 810, CLOs are variable interest entities by definition.

In return for providing collateral management services, the Company earns investment management fees and contingent performance fees. In addition to earning fee income, the Company often invests in the subordinated debt of entities formed to be the issuers of CLO offerings during their warehouse periods. The Company’s investments in these CLOs are repaid when the CLOs’ warehouse periods are closed and the CLO offerings are issued. The Company performs ongoing monitoring of the consolidation assessment for CLOs during and after their warehouse periods to determine if Voya remains the primary beneficiary of the CLOs. The fee income earned and investments held are included in the Company's ongoing consolidation assessment for each CLO. The Company was the primary beneficiary of 7 and 5 CLOs as of March 31, 2024 and December 31, 2023, respectively.

Limited Partnerships ("LPs")

The Company invests in and manages various limited partnerships, including private equity funds and hedge funds. The LPs generally have a ten-year life and a specified period during which investors can subscribe for limited partnership interests. Once the investors are admitted as limited partners, the investors are required to contribute capital when called by the general partners. The purpose of the LPs is to obtain subscriptions from limited partners and maximize the return to their partners by assembling a diversified portfolio of investments in private equity funds and other securities or assets with similar risk and return characteristics primarily through secondary market purchases. The majority of the investors in the LPs are unrelated parties to the Company. In return for subscriptions, each partner receives an equity interest in the LPs in proportion to its respective investment. These entities have been evaluated by the Company and are determined to be VIEs due to the equity holders, as a group, lacking the characteristics of a controlling financial interest.


			56

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

In return for serving as the general partner of and providing investment management services to these entities, the Company earns management fees and carried interest in the normal course of business. Additionally, the Company often holds an investment in each limited partnership it manages, generally in the form of general partner and limited partner interests. The fee income, carried interest, and investments held are included in the Company’s ongoing consolidation analysis for each limited partnership. The Company consolidated 11 partnerships as of March 31, 2024 and December 31, 2023.

The noncontrolling interest related to partnerships decreased from $1,685 at December 31, 2023 to $1,544 at March 31, 2024. Changes in market value, contributions, and distributions related to these investments in the funds directly impact the noncontrolling interest component of Shareholders' equity on the Company's Condensed Consolidated Balance Sheets. The change in noncontrolling interest was primarily driven by an increase in net distributions partially offset by favorable market appreciation in limited partnership investments. The Company records the noncontrolling interest using a lag methodology relying on the most recent financial information available.

Registered Investment Companies

The Company did not consolidate any sponsored investment funds accounted for as VOEs as of March 31, 2024 and December 31, 2023.

Fair Value Measurement

Upon consolidation, the Company elected to apply the FVO for financial assets and financial liabilities held by CLOs and continued to measure these assets (primarily corporate loans) and liabilities (debt obligations issued by CLOs) at fair value in subsequent periods. The Company has elected the FVO to more closely align its accounting with the economics of its transactions and allows the Company to more effectively align changes in the fair value of CLO assets with a commensurate change in the fair value of CLO liabilities.

Investments held by consolidated private equity funds are measured and reported at fair value in the Company's Condensed Consolidated Financial Statements. Changes in the fair value of consolidated investment entities are recorded as a separate line item within Income (loss) related to consolidated investment entities in the Company's Condensed Consolidated Statements of Operations.

The methodology for measuring the fair value of financial assets and liabilities of consolidated investment entities, and the classification of these measurements in the fair value hierarchy is consistent with the methodology and classification applied by the Company to its investment portfolio, as discussed within the Fair Value Measurements (excluding Consolidated Investment Entities) Note to these Condensed Consolidated Financial Statements.

As discussed in more detail below, the Company utilizes valuations obtained from third-party commercial pricing services, brokers and investment sponsors or third-party administrators that supply NAV (or its equivalent) per share used as a practical expedient. The valuations obtained from brokers and third-party commercial pricing services are non-binding. These valuations are reviewed on a monthly or quarterly basis depending on the entity and its underlying investments. Procedures include, but are not limited to, a review of underlying fund investor reports, review of top and worst performing funds requiring further scrutiny, review of variance from prior periods and review of variance from benchmarks, where applicable. In addition, the Company considers both macro and fund specific events that may impact the latest NAV supplied and determines if further adjustments of value should be made. Such changes, if any, are subject to senior management review.

When a price cannot be obtained from a commercial pricing service, independent broker quotes are solicited. Securities priced using independent broker quotes are classified as Level 3. Broker quotes and prices obtained from pricing services are reviewed and validated through an internal valuation committee price variance review, comparisons to internal pricing models, back testing to recent trades or monitoring of trading volumes.

Cash and Cash Equivalents

The carrying amounts for cash reflect the assets’ fair values. The fair value for cash equivalents is determined based on quoted market prices. These assets are classified as Level 1.


			57

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

CLOs

Corporate loans: Corporate loan investments, which comprise the majority of consolidated CLO portfolio collateral, are senior secured corporate loans maturing at various dates between 2024 and 2031, paying interest at SOFR, EURIBOR or PRIME plus a spread of up to 7.7%. As of March 31, 2024 and December 31, 2023, the unpaid principal balance exceeded the fair value of the corporate loans by approximately $32 and $46, respectively. Less than 1.0% of the collateral loans were in default as of March 31, 2024 and December 31, 2023.

The fair values for corporate loans are determined using independent commercial pricing services. Fair value measurement based on pricing services may be classified in Level 2 or Level 3 depending on the type, complexity, observability and liquidity of the asset being measured. The inputs used by independent commercial pricing services, such as benchmark yields and credit risk adjustments, are those that are derived principally from or corroborated by observable market data. Hence, the fair value measurement of corporate loans priced by independent pricing service providers is classified within Level 2 of the fair value hierarchy. In addition, there are assets held with CLO portfolios that represent senior level debt of other third party CLOs. These CLO investments are classified within Level 3 of the fair value hierarchy. See description of fair value process for CLO notes below.

CLO notes: The CLO notes are backed by diversified loan portfolios consisting primarily of senior secured floating rate leveraged loans. Repayment risk is segmented into tranches with credit ratings of these tranches reflecting both the credit quality of underlying collateral as well as how much protection a given tranche is afforded by tranches that are subordinate to it. The most subordinated tranche bears the first loss and receives the residual payments, if any. The interest rates are generally variable rates based on SOFR or EURIBOR plus a pre-defined spread, which varies from 1.0% for the more senior tranches to 9.6% for the more subordinated tranches. CLO notes mature in 2034, 2036, and 2037, and have a weighted average maturity of 12 years as of March 31, 2024. The investors in this debt are not affiliated with the Company and have no recourse to the general credit of the Company for this debt.

The fair values of the CLO notes are measured based on the fair value of the CLO's corporate loans, as the Company uses the measurement alternative available under ASU 2014-13 and determined that the inputs for measuring financial assets are more observable. The CLO notes are classified within Level 2 of the fair value hierarchy, consistent with the classification of the majority of the CLO financial assets.

The Company reviews the detailed prices including comparisons to prior periods for reasonableness. The Company utilizes a formal pricing challenge process to request a review of any price during which time the vendor examines its assumptions and relevant market inputs to determine if a price change is warranted.

The following narrative indicates the sensitivity of inputs:

•Default Rate: An increase (decrease) in the expected default rate would likely increase (decrease) the discount margin (increase risk premium) used to value the CLO investments and CLO notes and, as a result, would potentially decrease the value of the CLO investments and CLO notes.

•Recovery Rate: A decrease (increase) in the expected recovery of defaulted assets would potentially decrease (increase) the valuation of CLO investments and CLO notes.

•Prepayment Rate: A decrease (increase) in the expected rate of collateral prepayments would potentially decrease (increase) the valuation of CLO investments and CLO notes as the expected weighted average life ("WAL") would increase (decrease).

•Discount Margin (spread over SOFR): An increase (decrease) in the discount margin used to value the CLO investments and CLO notes would decrease (increase) the value of the CLO investments and CLO notes.

Private Equity Funds

As prescribed in ASC Topic 820, the unit of account for these investments is the interest in the investee fund. The Company owns an undivided interest in the fund portfolio and does not have the ability to dispose of individual assets and liabilities in the fund portfolio. Rather, the Company would be required to redeem or dispose of its entire interest in the investee fund. There is no current active market for interests in underlying private equity funds.


			58

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Valuation is generally based on the valuations provided by the fund's general partner or investment manager. The valuations typically reflect the fair value of the Company's capital account balance of each fund investment, including unrealized capital gains (losses), as reported in the financial statements of the respective investee fund as of the respective year end or the latest available date. In circumstances where fair values are not provided, the Company seeks to determine the fair value of fund investments based upon other information provided by the fund's general partner or investment manager or from other sources.

The fair value of securities received in-kind from fund investments is determined based on the restrictions around the securities.

•Unrestricted, publicly traded securities are valued at the closing public market price on the reporting date;

•Restricted, publicly traded securities may be valued at a discount from the closing public market price on the reporting date, depending on the circumstances; and

•Privately held securities are valued by the directors/general partner of the investee fund, based on a variety of factors, including the price of recent transactions in the company's securities and the company's earnings, revenue and book value.

In the case of direct investments or co-investments in private equity companies, the Company initially recognizes investments at cost and subsequently adjusts investments to fair value. On a quarterly basis, the Company reviews the general partner or lead investor's valuation of the investee company, taking into account other available information, such as indications of a market value through subsequent issues of capital or transactions between third parties, performance of the investee company during the period and public, comparable companies' analysis, where appropriate.

Investments in these funds typically may not be fully redeemed at net asset value ("NAV") within 90 days because of inherent restriction on near term redemptions.

As of March 31, 2024, certain private equity funds maintained revolving lines of credit of $1,313. As of December 31, 2023, certain private equity funds maintained term loans and revolving lines of credit of $1,330. The term loans were fully paid off during the three months ended March 31, 2024, and the revolving lines of credit are eligible for renewal every three years; all loans bear interest at EURIBOR or SOFR plus 140 - 240 bps. The lines of credit are used for funding transactions before capital is called from investors, as well as for the financing of certain purchases. As of March 31, 2024 and December 31, 2023, outstanding borrowings amount to $1,216 and $1,198, respectively. The borrowings are reflected in Liabilities related to consolidated investment entities - Other liabilities on the Company's Condensed Consolidated Balance Sheets. The borrowings are carried at an amount equal to the unpaid principal balance.

The following table summarizes the fair value hierarchy levels of consolidated investment entities as of March 31, 2024:


	Level 1		Level 2		Level 3		NAV		Total
Assets
VIEs
Cash and cash equivalents	$	180	$	—	$	—	$	—	$	180
Corporate loans	—		1,500		—		—		1,500
Limited partnerships/corporations	—		—		—		2,881		2,881
VOE
Cash and cash equivalents	1		—		—		—		1

Other investments(1)	—		—		—		24		24

Total assets	$	181	$	1,500	$	—	$	2,905	$	4,586
Liabilities
VIEs
CLO notes	$	—	$	1,368	$	—	$	—	$	1,368
Total liabilities	$	—	$	1,368	$	—	$	—	$	1,368
(1) VOE - Other investments are reflected in Assets related to consolidated investment entities - Other assets on the Company's Condensed Consolidated Balance Sheets.


			59

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

The following table summarizes the fair value hierarchy levels of consolidated investment entities as of December 31, 2023:


	Level 1		Level 2		Level 3		NAV		Total
Assets
VIEs
Cash and cash equivalents	$	181	$	—	$	—	$	—	$	181
Corporate loans	—		1,404		—		—		1,404
Limited partnerships/corporations	—		—		—		2,861		2,861





Total assets	$	181	$	1,404	$	—	$	2,861	$	4,446
Liabilities
VIEs
CLO notes	$	—	$	1,332	$	—	$	—	$	1,332
Total liabilities	$	—	$	1,332	$	—	$	—	$	1,332

Transfers of investments out of Level 3 and into Level 2 or Level 1, if any, are recorded as of the beginning of the period in which the transfer occurred. For the three months ended March 31, 2024 and 2023, there were no transfers in or out of Level 3 or transfers between Level 1 and Level 2.

Deconsolidation of Certain Investment Entities

Certain investment entities that have historically been consolidated in the financial statements may require deconsolidation as of the reporting period because: (a) such funds have been liquidated or dissolved; or (b) the Company is no longer deemed to be the primary beneficiary of the VIEs/VOEs as it no longer has a controlling financial interest.

The change in CLO’s consolidation status due to the close of the warehouse and the launch of the CLO do not meet the criteria described above as this transaction represents normal business operations of the entity. Refer to the CLO life cycle described above.

The Company had no deconsolidation during the three months ended March 31, 2024 and 2023. For deconsolidated investment entities, the Company continues to serve as the general partner and/or investment manager until such entities are fully liquidated.

Nonconsolidated VIEs

The Company also holds variable interest in certain CLOs and LPs that are not consolidated as it has been determined that the Company is not the primary beneficiary.

CLOs

As of March 31, 2024 and December 31, 2023, the Company held $383 ownership interests in unconsolidated CLOs, which also represents the Company's maximum exposure to loss.

LPs

As of March 31, 2024 and December 31, 2023, the Company held $1,708 and $1,621 ownership interests, respectively, in unconsolidated limited partnerships, which also represents the Company's maximum exposure to loss.

Securitizations

The Company invests in various tranches of securitization entities, including RMBS, CMBS and ABS. Through its investments, the Company is not obligated to provide any financial or other support to these entities. Each of the RMBS, CMBS and ABS


			60

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

entities are thinly capitalized by design and considered VIEs. The Company's involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer or investment manager, which are generally viewed to have the power to direct the activities that most significantly impact the securitization entities' economic performance, in any of these entities, nor does the Company function in any of these roles. The Company, through its investments or other arrangements, does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity. Therefore, the Company is not the primary beneficiary and does not consolidate any of the RMBS, CMBS and ABS entities in which it holds investments. These investments are accounted for as investments available-for-sale as described in the Fair Value Measurements (excluding Consolidated Investment Entities) Note to these Condensed Consolidated Financial Statements and unrealized capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS which are accounted for under the FVO whose change in fair value is reflected in Net gains (losses) in the Condensed Consolidated Statements of Operations. The Company’s maximum exposure to loss on these structured investments is limited to the amount of its investment. Refer to the Investments (excluding Consolidated Investment Entities) Note to these Condensed Consolidated Financial Statements for details regarding the carrying amounts and classifications of these assets.

19. Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill reported in the Company's operating segments were as follows:


	Wealth Solutions		Health Solutions		Investment Management		Corporate(1)		Consolidated
Balance as of January 1, 2023	$	17	$	24	$	286	$	—	$	327
Additions from business combinations	—		319		—		102		421

Balance as of December 31, 2023	$	17	$	343	$	286	$	102	$	748
Additions from business combinations(2)	—		—		—		—		—

Balance as of March 31, 2024	$	17	$	343	$	286	$	102	$	748

(1) Corporate includes goodwill that was acquired by the parent company and not pushed to a subsidiary within the Company’s reportable segments. The carrying value of goodwill within Corporate is allocated to Wealth Solutions, Health Solutions, and Investment Management reporting units as $72, $20 and $10, respectively

(2) See the Business, Basis of Presentation and Significant Accounting Policies Note for information on recent business combinations.


			61

Table of Contents

Voya Financial, Inc.

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(Dollar amounts in millions, unless otherwise stated)

Other Intangible Assets

The following table presents other intangible assets as of the dates indicated:


	Weighted Average Amortization Lives	March 31, 2024						December 31, 2023
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Indefinite-life intangibles:
Right to manage client assets	N/A	$	345	$	—	$	345	$	345	$	—	$	345
Management contract rights	N/A	5		—		5		5		—		5
Total indefinite-life intangibles		$	350	$	—	$	350	$	350	$	—	$	350
Finite-life intangibles:
Management contract rights	15 years	$	153	$	14	$	139	$	153	$	11	$	142
Customer relationship lists	17 years	325		132		193		325		128		197
Trademarks	8 years	15		2		13		15		2		13
Computer software	4 years	528		362		166		501		346		155
Total intangible assets		$	1,371	$	510	$	861	$	1,344	$	487	$	857

Amortization expense related to intangible assets were $23 and $20 for the three months ended March 31, 2024 and 2023, respectively.


			62

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

For the purposes of this discussion, the terms "Voya," "the Company," "we," "our," and "us" refer to Voya Financial, Inc. and its subsidiaries.

The following discussion and analysis presents a review of our consolidated results of operations for the three months ended March 31, 2024 and 2023 and financial condition as of March 31, 2024 and December 31, 2023. This item should be read in its entirety and in conjunction with the Condensed Consolidated Financial Statements and related notes contained in Part I, Item 1. of this Quarterly Report on Form 10-Q, as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") section contained in our Annual Report on Form 10-K for the year ended December 31, 2023 ("Annual Report on Form 10-K").

In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. 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. We are also a leading international asset manager, built on a foundation of institutional-quality fixed income and private asset strategies, with a well-established presence in U.S. markets and a large and growing business managing retail and institutional equity, fixed income, and blended strategies for clients in Europe and Asia.

Since Voya’s IPO in 2013, we have evolved through the divestiture of substantially all of our closed block variable annuity, life insurance and legacy non-retirement annuity businesses and related assets. These divestitures align with our strategic focus on higher-return, capital-light businesses, while maximizing the capital returned to our shareholders.

We are focused on executing our mission to make a secure financial future possible—one person, one family and one institution at a time. 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. We provide our products and services principally through our Workplace Solutions business, which encompasses both our Wealth Solutions and Health Solutions business segments, and through our Investment Management segment.

Wealth Solutions

Our Wealth Solutions segment provides retirement plan solutions and administration technology and services to employers. 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. Additionally, we provide individual retirement accounts and financial guidance and advisory services that enables us to deepen relationships with our retirement plan participants.

Our Wealth Solutions segment earns revenue from a diverse and complementary business mix, primarily fee income from asset based and participant based administrative, recordkeeping and advisory fees as well as investment income on our general account assets and other funds. Because a significant portion of our revenues are tied to account values, our profitability is determined in part by the amount of assets we have under management, administration or advisement, which in turn depends on sales volumes to new and existing clients, net deposits from retirement plan participants, and changes in the market value of account assets. Our profitability also depends on the difference between the investment income we earn on our general account assets, or our portfolio yield, and crediting rates on client accounts.


			63

Table of Contents

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. In addition, our Health Solutions segment provides stop-loss coverage to employer plan sponsors that self-fund their pharmaceutical and medical benefits.

Our Health Solutions segment generates revenue from premiums and fees, investment income, mortality and morbidity income and policy and other charges. Underwriting income comprises the majority of revenues in this segment and derives from the difference between premiums and mortality charges collected and benefits and expenses paid for group life, stop loss and voluntary benefits. Fee income is generated from margin on expenses for services provided on benefits administration, leave management, HSA/FSA/HRA and COBRA administration and proprietary decision support tools. Investment income is driven by the spread between investment yields and credited rates (the interest and income that is credited to the policies) to policyholders on voluntary universal life, whole life products, and HSA invested assets.

Investment Management

Our Investment Management segment serves both individual and institutional customers, offering them domestic and international fixed income, equity, multi-asset and alternative investment products and solutions across a range of geographies, investment styles and capitalization spectrums. We aim to provide positive investment results that are repeatable and consistent, and deliver research-driven, risk-adjusted, client-oriented investment strategies and solutions and advisory services.

Through our institutional distribution channel and our Workplace Solutions business, we serve a variety of institutional clients, including public, corporate and multiemployer defined benefit and defined contribution retirement plans, endowments and foundations, and insurance companies. We are a market leader in providing third-party general account management services to insurance companies, with a focus on public and private fixed income asset strategies, and a client service model adapted for the particular needs of insurance company clients. 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.

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. In addition, and to a lesser extent, Investment Management collects administrative fees on outside managed assets that are administered by our mutual fund platform and distributed primarily by our Wealth Solutions segment. Investment Management also receives fees as the primary investment manager of our general account, which is managed on a market-based pricing basis. Finally, Investment Management generates revenues from a portfolio of seed capital investments, collateralized loan obligations and various funds.

Business Update

On August 1, 2023, we acquired all remaining equity interest in VFI SLK Global Services Private Limited previously held by SLK Software Private Limited ("SLK") and renamed the entity as Voya Global Services Private Limited ("Voya India"). Voya India was a private limited company in India formed pursuant to a joint venture agreement between us and SLK on August 1, 2019, with us and SLK holding 49% and 51% of ownership shares, respectively. The purpose of Voya India is to provide technology and business operation services to us. 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. Net assets acquired as part of this transaction included goodwill of $102 million. The revenues, expenses, assets and liabilities of the business acquired are reported in Corporate.

On January 24, 2023, we completed the acquisition of Benefitfocus, Inc. ("Benefitfocus"), an industry-leading benefits administration technology company that serves U.S. employers, health plans and brokers for a total purchase price consideration of $595 million. The acquisition has expanded the Company’s capacity to meet the growing demand for comprehensive benefits and savings solutions and increases its ability to deliver innovative solutions for employers and health plans.


			64

Table of Contents

Trends and Uncertainties

We describe known material trends and uncertainties that might affect our business within Trends and Uncertainties in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7. of our Annual Report on Form 10-K, and in other sections of that document, including Risk Factors in Part I, Item 1A.

Operating Measures

In this MD&A, we discuss Adjusted operating earnings before income taxes and Adjusted operating revenues, each of which is a measure used by management to evaluate segment performance. For additional information on each measure, see Segments Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.

Assets Under Management ("AUM") and Assets Under Advisement ("AUA")

The following table presents AUM and AUA as of the dates indicated:


	As of March 31,
($ in millions)	2024		2023
AUM and AUA:
Wealth Solutions	$	573,861	$	497,895
Health Solutions	1,860		1,844
Investment Management	384,278		383,899
Eliminations/Other	(111,370)		(112,453)
Total AUM and AUA (1)	$	848,629	$	771,185

AUM	483,108		453,755
AUA (1)	365,522		317,429
Total AUM and AUA (1)	$	848,629	$	771,185

(1) Includes AUM and AUA related to the divested businesses, for which a substantial portion of the assets continue to be managed by our Investment Management segment.


			65

Table of Contents

Results of Operations - Company Condensed Consolidated

The following table presents our Condensed Consolidated Statements of Operations for the periods indicated:


	Three Months Ended March 31,
($ in millions)		2024		2023		Change
Revenues:
Net investment income		$	529	$	545	$	(16)
Fee income		513		464		49
Premiums		800		685		115
Net gains (losses)		43		(16)		59
Other revenue		88		78		10
Income (loss) related to consolidated investment entities		78		79		(1)
Total revenues		2,051		1,835		216
Benefits and expenses:
Interest credited and other benefits to contract owners/policyholders		851		751		100
Operating expenses		799		836		(37)
Net amortization of Deferred policy acquisition costs and Value of business acquired		56		59		(3)
Interest expense		30		32		(2)
Operating expenses related to consolidated investment entities		28		16		12
Total benefits and expenses		1,764		1,694		70
Income (loss) before income taxes		287		141		146
Income tax expense (benefit)		(1)		12		(13)


Net Income (loss)		288		129		159
Less: Net income (loss) attributable to noncontrolling interest		37		46		(9)
Less: Preferred stock dividends		17		14		3
Net income (loss) available to our common shareholders		$	234	$	69	$	165

Consolidated - Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Total Revenues

Total revenues increased $216 million from $1,835 million to $2,051 million. The following items contributed to the overall increase.

Net investment income decreased $16 million from $545 million to $529 million primarily due to:

•lower investment income on fixed maturity securities primarily due to interest rate movements and lower average volume.

The decrease was partially offset by:

•higher alternative investment income primarily driven by overall market performance.

Fee income increased $49 million from $464 million to $513 million primarily due to:

•higher fee income in Wealth Solutions primarily driven by market appreciation and business growth; and

•higher fee income in Investment Management primarily due to market appreciation and Retail net inflows, partially offset by Institutional net outflows and higher interest rates.


			66

Table of Contents

Premiums increased $115 million from $685 million to $800 million primarily due to:

•higher premiums in Health Solutions driven by growth across all blocks of business.

Net gains (losses) changed $59 million from a loss of $16 million to a gain of $43 million primarily due to:

•net favorable changes in derivative valuations due to interest rate movements.

The change was partially offset by:

•an unfavorable change in mark-to-market adjustments on securities subject to fair value option accounting primarily due to interest rate movements.

Other revenue increased $10 million from $78 million to $88 million primarily due to:

•higher other revenue in Health Solutions primarily driven by timing of the Benefitfocus acquisition in the prior period; and

•an increase in other interest income due to float.

The increase was partially offset by:

•lower other revenue due to the absence of transition services agreements revenue associated with the Individual Life transaction in the current period.

Total Benefits and Expenses

Total benefits and expenses increased $70 million from $1,694 million to $1,764 million. The following items contributed to the overall increase.

Interest credited and other benefits to contract owners/policyholders increased $100 million from $751 million to $851 million primarily due to:

•higher benefits incurred in Health Solutions due to growth in in-force business and a higher loss ratio in Stop Loss.

The increase was partially offset by:

•a favorable change in the value of embedded derivatives associated with businesses reinsured primarily due to changes in interest rates, which is fully offset by a corresponding amount in Net gains (losses);

•favorable market risk benefit remeasurements primarily due to positive equity market returns; and

•lower interest credited in Wealth Solutions primarily due to lower spread-based assets, partially offset by a higher crediting rate.

Operating expenses decreased $37 million from $836 million to $799 million primarily due to:

•absence of closing costs associated with the acquisition of Benefitfocus in the current period;

•lower integration costs associated with the AllianzGI business; and

•lower expenses due to expense reduction actions.

The increase was partially offset by:

•an increase in Health Solutions expenses primarily driven by business growth and timing of the acquisition of Benefitfocus in the prior period.

Operating expenses related to consolidated investment entities increased $12 million from $16 million to $28 million primarily due to:

•increase in collateralized loan obligations interest costs primarily due to a new fund launch.


			67

Table of Contents

Income Tax Expense (Benefit)

Income tax expense (benefit) changed $13 million from an expense of $12 million to a benefit of $1 million primarily due to:

•the Security Life of Denver Company capital loss carryback. For more details, see the Income Taxes note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q; and

•an increase in the dividends received deduction.

The change was partially offset by:

•an increase in income before income taxes.

Adjustments from Income (Loss) from Continuing Operations before Income Taxes to Adjusted Operating Earnings (Loss) before Income Taxes

For additional information on the reconciliation adjustments listed below, see the Segments Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.

Net investment gains (losses) changed $72 million from a loss of $9 million to a gain of $63 million primarily due to:

•net favorable changes in derivative valuations due to interest rate movements; and

•favorable market risk benefit remeasurements primarily due to positive equity market returns.

The change was partially offset by:

•an unfavorable change in mark-to-market adjustments on securities subject to fair value option accounting primarily due to interest rate movements.

Other adjustments to operating earnings improved $47 million from a loss of $70 million to a loss of $23 million primarily due to:

•absence of closing costs associated with the acquisition of Benefitfocus in the current period; and

•lower integration costs associated with the Allianz GI business.

Results of Operations - Segment by Segment

Adjusted operating earnings before income taxes is the measure of segment profit or loss management uses to evaluate segment performance. Adjusted operating earnings before income taxes should not be viewed as a substitute for GAAP pre-tax income. We believe that the presentation of segment adjusted operating earnings before income taxes as we measure it for management purposes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitating a more meaningful trend analysis. Refer to the Segments Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for further information on the presentation of segment results and our definition of adjusted operating earnings before income taxes.


			68

Table of Contents

Wealth Solutions

The following table presents Adjusted operating earnings before income taxes of our Wealth Solutions segment for the periods indicated:


	Three Months Ended March 31,
($ in millions)		2024		2023
Adjusted operating revenues:
Net investment income and net gains (losses)		$	437	$	434
Fee income		263		231
Other revenue		19		20
Total adjusted operating revenues		719		684
Operating benefits and expenses:
Interest credited and other benefits to contract owners/policyholders		216		222
Operating expenses		296		308
Net amortization of DAC/VOBA		21		22
Total operating benefits and expenses		534		552
Adjusted operating earnings before income taxes		$	186	$	132

The following table presents Net revenue and Adjusted operating margin for our Wealth Solutions segment as of the dates indicated:


	Three Months Ended March 31,
($ in millions)		2024			2023
Adjusted operating earnings before income taxes		$	186		$	132

Total adjusted operating revenues		719			684
Less: Interest credited and other benefits to contract owners/policyholders		216			222
Net revenue		$	504		$	463

Adjusted operating margin (1)		36.9		%	28.6		%

(1) Adjusted operating earnings before income taxes divided by Net revenue.

The following tables present Total Client Assets, which comprise total AUM and AUA, for our Wealth Solutions segment as of the dates indicated:


	As of March 31,
($ in millions)	2024		2023
Full Service	$	196,607	$	170,637
Recordkeeping	315,134		267,038
Total Defined Contribution	511,741		437,675
Investment-only Stable Value	34,814		37,781
Retail Client and Other Assets	34,694		30,012
Eliminations	(7,387)		(7,574)
Total Client Assets	$	573,861	$	497,895


			69

Table of Contents


	As of March 31,
($ in millions)	2024		2023
Fee-based	$	486,196	$	408,688
Spread-based	30,746		33,242
Investment-only Stable Value	34,814		37,781
Retail Client Assets	29,492		25,757
Eliminations	(7,387)		(7,574)
Total Client Assets	$	573,861	$	497,895

The following table presents Full Service, Recordkeeping, and Stable Value net flows for our Wealth Solutions segment for the periods indicated:


	Three Months Ended March 31,
($ in millions)		2024		2023
Full Service - Corporate markets:
Deposits		$	4,889	$	4,621
Surrenders, benefits and product charges		(4,194)		(3,477)
Net flows		695		1,144
Full Service - Tax-exempt markets:
Deposits		1,520		1,424
Surrenders, benefits and product charges		(2,193)		(2,586)
Net flows		(673)		(1,162)
Total Full Service Net Flows (1)		$	22	$	(18)

Recordkeeping and Stable Value:
Recordkeeping Net Flows (1)		$	(311)	$	89
Investment-only Stable Value Net Flows		$	(919)	$	(710)

(1) For the first quarter of 2024, recurring deposits exclude certain participants’ last paycheck contribution due to the last weekday of the quarter falling on a holiday. These deposits will be recognized in the second quarter of 2024.

Wealth Solutions - Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Adjusted operating earnings before income taxes increased $54 million from $132 million to $186 million primarily due to:

•higher fee income and other revenue primarily driven by market appreciation and business growth;

•lower operating expenses primarily due to expense reduction actions, partially offset by business growth;

•lower interest credited primarily due to lower spread-based assets, partially offset by a higher crediting rate; and

•higher net investment income primarily due to higher alternative investment income and income on cash, partially offset by lower spread-based assets due to participant surrenders and fund transfer activities.


			70

Table of Contents

Health Solutions

The following table presents Adjusted operating earnings before income taxes of the Health Solutions segment for the periods indicated:


	Three Months Ended March 31,
($ in millions)		2024		2023
Adjusted operating revenues:
Net investment income and net gains (losses)		$	38	$	33
Fee income		18		21
Premiums		797		675
Other revenue		51		45
Total adjusted operating revenues		905		774
Operating benefits and expenses:
Interest credited and other benefits to contract owners/policyholders		613		467
Operating expenses		224		204
Net amortization of DAC/VOBA		8		8
Total operating benefits and expenses		846		680
Adjusted operating earnings before income taxes		$	59	$	94

The following table presents Net revenue and Adjusted operating margin for our Health Solutions segment as of the dates indicated:


	Three Months Ended March 31,
($ in millions)		2024			2023
Adjusted operating earnings before income taxes		$	59		$	94

Total adjusted operating revenues		905			774
Less: Interest credited and other benefits to contract owners/policyholders		613			467
Net revenue		$	293		$	306

Adjusted operating margin (1)		20.3		%	30.7		%

(1) Adjusted operating earnings before income taxes divided by Net revenue.


			71

Table of Contents

The following table presents sales, gross premiums and in-force for our Health Solutions segment for the periods indicated:


	Three Months Ended March 31,
($ in millions)		2024			2023
Sales by Product Line:
Group life and Disability		$	130		$	104
Stop loss		537			343
Total group products		667			447
Voluntary and Other (1)		142			90
Total sales by product line		$	809		$	538

Total gross premiums and deposits		$	900		$	761

Group life and Disability		$	989		$	912
Stop loss		1,839			1,457
Voluntary and Other (1)		1,033			930
Total annualized in-force premiums and fees		$	3,861		$	3,300

Loss Ratios:
Group life (interest adjusted)		81.0		%	84.9		%
Stop loss		84.2		%	70.1		%
Total Aggregate Loss Ratio		73.8		%	65.5		%
Total Aggregate Loss Ratio Trailing Twelve Months (2)		69.5		%	66.3		%

(1) Includes benefit administration annual recurring revenue and Health Account Solutions products.

(2) The trailing twelve months ended March 31, 2023 exclude $57 million of favorable reserve impact related to the annual review of assumptions.

Health Solutions - Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Adjusted Operating earnings before income taxes decreased $35 million from $94 million to $59 million primarily due to:

•higher benefits to policyholders due to growth in in-force business and a higher loss ratio in Stop Loss; and

•higher operating expenses primarily driven by business growth and timing of the acquisition of Benefitfocus in the prior period, partially offset by expense reduction actions.

The decrease was partially offset by:

•higher premiums driven by growth across all three lines of business;

•higher other revenue driven by timing of the acquisition of Benefitfocus in the prior period; and

•higher net investment income primarily due to higher alternative investment income.


			72

Table of Contents

Investment Management

The following table presents Adjusted operating earnings before income taxes of our Investment Management segment for the periods indicated:


	Three Months Ended March 31,
($ in millions)		2024		2023
Adjusted operating revenues:
Net investment income and net gains (losses)		$	9	$	10
Fee income		227		216
Other revenue		(1)		2
Total adjusted operating revenues		234		229
Operating benefits and expenses:
Operating expenses		181		186
Total operating benefits and expenses		181		186
Adjusted operating earnings before income taxes including Allianz noncontrolling interest		53		42

Less: Earnings (loss) attributable to Allianz noncontrolling interest		12		9
Adjusted operating earnings before income taxes		$	42	$	33

The following table presents Net revenue and Adjusted operating margin for our Investment Management segment as of the dates indicated:


	Three Months Ended March 31,
($ in millions)		2024			2023
Adjusted operating earnings before income taxes including Allianz noncontrolling interest		$	53		$	42

Total adjusted operating revenues		234			229

Net revenue		$	234		$	229

Adjusted operating margin (1)		22.7		%	18.5		%

(1) Adjusted operating earnings before income taxes divided by Net revenue.

Our Investment Management segment operating revenues include the following intersegment revenues, primarily consisting of asset-based management and administration fees.


	Three Months Ended March 31,
($ in millions)		2024		2023
Investment Management intersegment revenues		$	20	$	22


			73

Table of Contents

The following table presents AUM and AUA for our Investment Management segment as of the dates indicated:


	As of March 31,
($ in millions)	2024		2023
External clients:
Institutional (1)	$	148,489	$	164,443
Retail (1)(2)	148,710		126,212
Total external clients	297,199		290,654
General account	34,138		36,934
Total AUM	331,337		327,589
AUA (2)(3)	52,942		56,310
Total AUM and AUA	$	384,278	$	383,899

(1) Includes assets associated with the divested businesses.

(2) Retail AUM includes a reclassification as of January 1, 2024 of $3.6 billion from certain separately managed accounts previously reported as AUA for which Investment Management retains discretion on asset allocation and manager selection.

(3) Includes assets sourced by other segments and also reported as AUA or AUM by such other segments. Assets Under Advisement, presented in AUA, includes advisory assets, mutual fund, general account and stable value assets.

The following table presents net flows for our Investment Management segment for the periods indicated:


	Three Months Ended March 31,
($ in millions)		2024		2023
Net Flows:
Institutional		$	(1,225)	$	(945)
Retail (1)		1,800		342
Divested businesses		(651)		(515)
Total		$	(76)	$	(1,118)

(1) Includes reinvested dividends on a prospective basis effective January 1, 2024, which were $0.3 billion for the first quarter of 2024.

Investment Management - Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Adjusted operating earnings before income taxes including Allianz noncontrolling interest increased $11 million from $42 million to $53 million primarily due to:

•higher fee income primarily due to market appreciation and Retail net inflows, partially offset by Institutional net outflows and higher interest rates; and

•lower operating expenses primarily due to expense reduction actions.


			74

Table of Contents

Corporate

The following table presents Adjusted operating earnings before income taxes of Corporate for the periods indicated:


	Three Months Ended March 31,
($ in millions)		2024		2023
Adjusted operating revenues:
Net investment income and net gains (losses)		$	4	$	4
Other revenue		—		6
Total adjusted operating revenues		4		11
Operating benefits and expenses:
Operating expenses (1)		23		33
Interest expense (2)		45		47
Total operating benefits and expenses		68		80
Adjusted operating earnings before income taxes including Allianz noncontrolling interest		(64)		(69)

Less: Earnings (loss) attributable to Allianz noncontrolling interest		(1)		(1)
Adjusted operating earnings before income taxes		$	(63)	$	(68)

(1) Includes expenses from corporate activities, and expenses not allocated to our segments.

(2) Includes dividend payments made to preferred shareholders.

Corporate - Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023

Adjusted operating earnings before income taxes including Allianz noncontrolling interest improved $5 million from a loss of $69 million to a loss of $64 million primarily due to:

•lower operating expenses due to costs supporting the remaining transition services agreements related to the Individual Life Transaction in the prior period and lower incentive compensation in the current period; and

•lower interest expense driven by cumulative debt extinguishments, partially offset by the rate reset impact to the Non-cumulative Preferred Stock, Series A.

The improvement was partially offset by:

•lower other revenue due to the absence of transition services agreements revenue in the current period.

Alternative Investment Income

Investment income on certain alternative investments can be volatile due to changes in market conditions. The following table presents the amount of investment income (loss) on certain alternative investments that is included in segment Adjusted operating earnings before income taxes and the average level of assets in each segment, prior to intercompany eliminations, which excludes alternative investments and income that are a component of Income (loss) related to businesses exited or to be exited through reinsurance or divestment. These alternative investments are carried at fair value, which is estimated based on the net asset value ("NAV") of these funds.

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.


			75

Table of Contents

The following table presents alternative investment income and average assets of alternative investments for the periods indicated:


	Three Months Ended March 31,
($ in millions)		2024		2023
Wealth Solutions:
Alternative investment income		$	24	$	11
Average alternative investment		1,459		1,659
Health Solutions:
Alternative investment income		6		1
Average alternative investment		243		125
Investment Management:
Alternative investment income		6		9
Average alternative investment		312		318

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. Capital refers to our long-term financial resources available to support business operations and future growth. Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of the businesses, timing of cash flows on investments and products, general economic conditions and access to the capital markets and the other sources of liquidity and capital described herein.

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 discussion included further below.

Consolidated Sources and Uses of Liquidity and Capital

Our principal available sources of liquidity are product charges, investment income, proceeds from the maturity and sale of investments, proceeds from debt issuance and borrowing facilities, equity securities issuance, repurchase agreements, contract deposits and securities lending. Primary uses of these funds are payments of policyholder benefits, commissions and operating expenses, interest credits, dividends, debt maturities and redemptions, share repurchases, investment purchases, business acquisitions and contract maturities, withdrawals and surrenders.

Parent Company Sources and Uses of Liquidity

Voya Financial, Inc. is largely dependent on cash flows from its operating subsidiaries to meet its obligations. The principal sources of funds available to Voya Financial, Inc. include dividends and returns of capital from its operating subsidiaries, as well as cash and short-term investments, and proceeds from debt issuances, borrowing facilities and equity securities issuances.

These sources of funds include the $500 million revolving credit sublimit of our senior unsecured credit facility and reciprocal borrowing facilities maintained with Voya Financial, Inc.'s subsidiaries as well as alternate sources of liquidity described below.

We estimate that our excess capital (which we define as the amount of total adjusted capital in our insurance subsidiaries above our 375% RBC target, plus the amount of holding company liquidity above our $200 million target) as of March 31, 2024, was approximately $0.4 billion. As of March 31, 2024, our estimated combined RBC ratio, with adjustments for certain intercompany transactions, was 412%.


			76

Table of Contents

Voya Financial, Inc.'s primary sources and uses of cash for the periods indicated are presented in the following table:


	Three Months Ended March 31,
($ in millions)	2024		2023
Beginning cash and cash equivalents balance	$	206	$	209
Sources:




Dividends and returns of capital from subsidiaries	163		402
Repayment of loans to subsidiaries, net of new issuances	150		399







Amounts received from subsidiaries under tax sharing agreements, net	—		7





Settlement of amounts due from (to) subsidiaries and affiliates, net	—		34

Collateral received, net	—		11



Other, net	45		6
Total sources	358		859
Uses:




Payment of interest expense	36		26
Capital provided to subsidiaries	—		8
Payment for business acquisitions	—		558
Repayments of loans from subsidiaries, net of repayments	51		192




Settlement of amounts paid to subsidiaries and affiliates, net	12		—

Amounts paid to subsidiaries under tax sharing agreements, net	1		—
Payment of income taxes, net	1		2


Common stock acquired - Share repurchase	172		—
Share-based compensation	34		35
Dividends paid on preferred stock	17		14
Dividends paid on common stock	41		20




Collateral delivered, net	10		—
Asset purchases and investment expense, net	13		2




Total uses	388		857
Net increase (decrease) in cash and cash equivalents	(30)		2
Ending cash and cash equivalents balance	$	176	$	211

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. As part of our liquidity management process, we model different scenarios to determine whether existing assets are adequate to meet projected cash flows.

Capitalization

The primary components of our capital structure consist of debt and equity securities. Our capital position is supported by cash flows within our operating subsidiaries, the availability of borrowed funds under liquidity facilities, and any additional capital we raise to invest in the growth of the business and for general corporate purposes. We manage our capital position based on a variety of factors including, but not limited to, our financial strength, the credit rating of Voya Financial, Inc. and of its insurance company subsidiaries and general macroeconomic conditions. We may repurchase or otherwise retire our debt and preferred stock and take other steps to reduce our debt and preferred stock or otherwise improve our financial position. These actions could include open market repurchases, negotiated repurchases, tender offers or other retirements of outstanding debt and opportunistic refinancing of debt. The amount that may be repurchased or otherwise retired, if any, will depend on market conditions, trading levels, cash position, compliance with covenants and other considerations.


			77

Table of Contents

See the Consolidated and Nonconsolidated Investment Entities Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for additional details over changes in noncontrolling interest during the year and impacting capitalization.

Share Repurchase Program and Dividends to Common Shareholders

See the Shareholders' Equity Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for information relating to authorizations by the Board of Directors to repurchase our shares and amounts of common stock repurchased pursuant to such authorizations during the three months ended March 31, 2024. As of March 31, 2024, our remaining repurchase capacity under the Board's prior authorization was $225 million.

On April 23, 2024, the Board of Directors provided an additional share repurchase authorization of $500 million. This share repurchase authorization expires on June 30, 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 of Directors at any time.

The following table provides a summary of common dividends and repurchases of common shares for the periods indicated:


	Three Months Ended March 31,
($ in millions)	2024		2023
Dividends paid on common shares	$	41	$	20
Repurchases of common shares (at cost)	172		—
Total	$	213	$	20

Subsequent to March 31, 2024, we repurchased 802,725 shares pursuant to a 10b5-1 plan for an aggregate purchase price of $56 million.

Debt

As of March 31, 2024, we had $393 of short-term debt borrowings outstanding consisting entirely of the current portion of long-term debt. The following table summarizes our borrowing activities for the three months ended March 31, 2024:


($ in millions)	Beginning Balance		Issuance		Maturities and Repayment		Other Changes(1)		Ending Balance















Total long-term debt	$	2,097	$	—	$	—	$	(390)	$	1,707
(1) Other changes is primarily the reclassification of $393 million of debt maturing in 2025 from long-term debt to short-term debt.

See the Financing Agreements and Shareholders’ Equity Notes to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for additional details on changes in debt and equity during the year.

Put Option Agreement for Senior Debt Issuance

See the Financing Agreements Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for information on the Put Option and the 3.976% Senior Notes.

Credit Facilities

See the Financing Agreements Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for information on credit facilities.


			78

Table of Contents

Voya Financial, Inc. Credit Support of Subsidiaries

Voya Financial, Inc. provide 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 Equitable Notes maturing in 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.

We did not recognize any asset or liability as of March 31, 2024 in relation to intercompany indemnifications, guarantees or support agreements. As of March 31, 2024, no guarantees existed in which we were required to currently perform under these arrangements.

Borrowings from Subsidiaries

We maintain revolving reciprocal loan agreements with a number of our life and non-life insurance subsidiaries that are used to fund short-term cash requirements that arise in the ordinary course of business. Under these agreements, either party may borrow up to the maximum allowable under the agreement for a term not more than 270 days. 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. As of March 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. As of March 31, 2024, Voya Financial, Inc. had $595 million outstanding borrowings from subsidiaries and had loaned $344 million to its subsidiaries.

Ratings

Our access to funding and our related cost of borrowing, collateral requirements for derivative instruments and the attractiveness of certain of our products to customers are affected by our credit ratings and insurance financial strength ratings, which are periodically reviewed by the rating agencies. Financial strength ratings and credit ratings are important factors affecting public confidence in an insurer and its competitive position in marketing products. Credit ratings are also important to our ability to raise capital through the issuance of debt and for the cost of such financing.

A downgrade in our credit ratings or the credit or financial strength ratings of our rated subsidiaries could have a material adverse effect on our results of operations and financial condition. See A downgrade or a potential downgrade in our financial strength or credit ratings may result in a loss of business and adversely affect our results of operations and financial condition in Risk Factors in Part I, Item 1A. of our most current Annual Report on Form 10-K.

Financial strength ratings represent the opinions of rating agencies regarding the financial ability of an insurance company to meet its obligations under an insurance policy. Credit ratings represent the opinions of rating agencies regarding an entity's ability to repay its indebtedness. These ratings are not a recommendation to buy or hold any of our securities and they may be revised or revoked at any time at the sole discretion of the rating organization.


			79

Table of Contents

The financial strength and credit ratings of Voya Financial, Inc. and its principal subsidiaries as of the date of this Quarterly Report on Form 10-Q are summarized in the following table.

Rating Agency

A.M. Best

Fitch, Inc.

Moody's Investors Service, Inc.

Standard & Poor's

("A.M. Best")(1)

("Fitch")(2)

("Moody's")(3)

("S&P")(4)

Long-term Issuer Credit Rating/Outlook:

Voya Financial, Inc.

(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. Best's financial strength ratings for insurance companies range from "A++ (superior)" to "s (suspended)." Long-term credit ratings range from "aaa (exceptional)" to "s (suspended)."

(2) Fitch's financial strength ratings for insurance companies range from "AAA (exceptionally strong)" to "C (distressed)." Long-term credit ratings range from "AAA (highest credit quality)," which denotes exceptionally strong capacity for timely payment of financial commitments, to "D (default)."

(3) Moody’s financial strength ratings for insurance companies range from "Aaa (exceptional)" to "C (lowest)." Numeric modifiers are used to refer to the ranking within the group, with 1 being the highest and 3 being the lowest. These modifiers are used to indicate relative strength within a category. Long-term credit ratings range from "Aaa (highest)" to "C (default)."

(4) S&P's financial strength ratings for insurance companies range from "AAA (extremely strong)" to "D (default)." Long-term credit ratings range from "AAA (extremely strong)" to "D (default)."

(5) Effective April 11, 2019, A.M. Best withdrew, at the Company’s request, its financial strength ratings with respect to Voya Financial, Inc. and Voya Retirement Insurance and Annuity Company.

Rating agencies use an "outlook" statement for both industry sectors and individual companies. For an industry sector, a stable outlook generally implies that over the next 12 to 18 months the rating agency expects ratings to remain unchanged among companies in the sector. For a particular company, an outlook generally indicates a medium or long-term trend in credit fundamentals, which if continued, may lead to a rating change. 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 and annuities sector and Fitch changed its outlook from neutral to improving for the North American life insurance sector.

Restrictions on Dividends and Returns of Capital from Subsidiaries

Our business is conducted through operating subsidiaries. U.S. insurance laws and regulations regulate the payment of dividends and other distributions by our U.S. insurance subsidiaries to their respective parents. These restrictions are based in part on the prior year's statutory income and surplus. In general, dividends up to specified levels are considered ordinary and may be paid without prior approval. Dividends in larger amounts, or "extraordinary" dividends, are subject to approval by the insurance commissioner of the state of domicile of the insurance subsidiary proposing to pay the dividend. In addition, under the insurance laws of our principal insurance subsidiaries domiciled in Connecticut and Minnesota (these insurance subsidiaries are referred to collectively as our "Principal Insurance Subsidiaries"), no dividend or other distribution exceeding an amount equal to an insurance company's earned surplus may be paid without the domiciliary insurance regulator's prior approval.

Our Principal Insurance Subsidiaries domiciled in Connecticut and Minnesota both have ordinary dividend capacity for 2024. Any extraordinary dividend payment would be subject to domiciliary insurance regulatory approval, which can be granted or withheld at the discretion of the regulator.

We may receive dividends from or contribute capital to our wholly owned non-life insurance subsidiaries such as broker-dealers, investment management entities and intermediate holding companies.


			80

Table of Contents

Insurance Subsidiaries - Dividends, Returns of Capital, and Capital Contributions

The following table summarizes dividends by each of the Company's Principal Insurance Subsidiaries to its parent for the periods indicated:


	Dividends Paid				Extraordinary Distributions Paid
	Three Months Ended March 31,				Three Months Ended March 31,
($ in millions)	2024		2023		2024		2023
Subsidiary Name (State of domicile):
Voya Retirement Insurance and Annuity Company ("VRIAC") (CT)	$	163	$	—	$	—	$	—
ReliaStar Life Insurance Company ("RLI") (MN)	57		—		—		402

Leverage Ratios

Our Leverage Ratios are a measure that we use to monitor the level of our debt relative to our total capitalization. The following table presents our leverage ratios for the periods indicated:


	March 31,			December 31,
($ in millions)	2024			2023
Financial Debt
Total financial debt	$	2,100		$	2,098
Other financial obligations(1)	309			312
Total financial obligations	2,409			2,410
Mezzanine equity
Allianz noncontrolling interest	174			175
Equity
Preferred equity(2)	612			612
Common equity, excluding AOCI	6,010			5,981
Total equity, excluding AOCI	6,622			6,593
AOCI	(2,469)			(2,400)
Total Voya Financial, Inc. shareholders' equity	4,153			4,193
Noncontrolling interest	1,544			1,685
Total shareholders' equity	$	5,697		$	5,878
Capital
Capitalization(3)	$	6,253		$	6,291
Adjusted capitalization excluding AOCI(4)	$	10,749		$	10,863
Leverage Ratios
Debt-to-Capital Ratio(5)	33.6		%	33.3		%
Financial Leverage excluding AOCI(6)	28.1		%	27.8		%

(1) Includes operating leases, finance leases, and unfunded pension plan after-tax.

(2) Includes preferred stock par value and additional paid-in-capital.

(3) Includes Total Financial Debt and Total Voya Financial, Inc. Shareholders' Equity.

(4) Includes Total Financial Obligations, Mezzanine Equity, and Total Shareholders' Equity excluding AOCI.

(5) Total Financial Debt divided by Capitalization.

(6) Total Financial Obligations and Preferred equity divided by Adjusted Capitalization excluding AOCI.

Our Financial Leverage Ratio, excluding AOCI, increased from 27.8% at December 31, 2023 to 28.1% at March 31, 2024. The increase was primarily due to a decrease to noncontrolling interest, partially offset by an increase to Common equity, excluding AOCI, driven by Net income available to common shareholders net of repurchases of common stock and common dividends.


			81

Table of Contents

Off-Balance Sheet Arrangements

We have obligations for the return of non-cash collateral under an amendment to our securities lending program. Non-cash collateral received in connection with the securities lending program may not be sold or re-pledged by our lending agent, except in the event of default, and is not reflected on our Condensed Consolidated Balance Sheets. For information regarding obligations under this program, see the Investments (excluding Consolidated Investment Entities) Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.

For changes in commitments related to the acquisition of mortgage loans and the purchase of limited partnerships and private placement investments related to consolidated investment entities, see the Commitments and Contingencies Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.

Critical Accounting Judgments and Estimates

The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates and assumptions are evaluated on an on-going basis based on historical developments, market conditions, industry trends and other information that is reasonable under the circumstances. There can be no assurance that actual results will conform to estimates and assumptions and that reported results of operations will not be materially affected by the need to make future accounting adjustments to reflect changes in these estimates and assumptions from time to time. Those estimates are inherently subject to change and actual results could differ from those estimates, and the differences may be material to the accompanying Condensed Consolidated Financial Statements.

We have identified the following accounting judgments and estimates as critical in that they involve a higher degree of judgment and are subject to a significant degree of variability:

•Reserves for future policy benefits;

•Valuation of investments and derivatives;

•Investment impairments;

•Goodwill and other intangible assets;

•Income taxes;

•Contingencies; and

•Employee benefit plans.

In developing these accounting estimates, we make subjective and complex judgments that are inherently uncertain and subject to material changes as facts and circumstances develop. Although variability is inherent in these estimates, we believe that the amounts provided are appropriate based on the facts available upon preparation of the Condensed Consolidated Financial Statements.

The above critical accounting estimates are described in the Business, Basis of Presentation and Significant Accounting Policies Note in our Consolidated Financial Statements in Part II, Item 8. of our Annual Report on Form 10-K.

Assumptions and Periodic Review

Changes in, or deviations from, assumptions used can significantly affect our reserve levels and related results of operations. Assumptions are management's best estimates of future outcomes. We review these assumptions at least annually against actual experience and, based on additional information that becomes available, update them if necessary.

Sensitivity

We perform sensitivity analyses to assess the impact that certain assumptions have on traditional reserves. As of March 31, 2024, there have been no material changes to the sensitivities disclosed in Critical Accounting Judgments and Estimates in Part

II. Item 7 of our Annual Report on Form 10-K.

Income Taxes

In August 2022, President Biden signed into law the Inflation Reduction Act of 2022, which includes a 15% corporate alternative minimum tax ("CAMT"). The CAMT is effective in taxable years beginning after December 31, 2022. The Internal


			82

Table of Contents

Revenue Service has only issued limited guidance on the CAMT, and uncertainty remains regarding the application of and potential adjustments to the CAMT. Based on this guidance, we do not expect to be subject to the CAMT for 2024.

See the Income Taxes Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for more information.

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.

See Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7. of our Annual Report on Form 10-K for information on our investment strategy.

See the Investments (excluding Consolidated Investment Entities) Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for more information on investments. Additionally, see the Condensed Consolidated Balance Sheets to our Condensed Consolidated Financial Statements Part I, Item 1. of this Quarterly Report on Form 10-Q for a composition of our investment portfolio.

Fixed Maturities Credit Quality - Ratings

For information regarding our fixed maturities credit quality ratings, see Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7. of our Annual Report on Form 10-K.

The following tables present credit quality of fixed maturities, including securities pledged, using NAIC designations as of the dates indicated:


($ in millions)	March 31, 2024
NAIC Quality Designation	1		2		3		4		5		6		Total Fair Value
U.S. Treasuries	$	401	$	—	$	—	$	—	$	—	$	—	$	401
U.S. Government agencies and authorities	55		—		—		—		—		—		55
State, municipalities and political subdivisions	645		36		—		—		—		—		681
U.S. corporate public securities	2,368		4,747		193		19		12		—		7,339
U.S. corporate private securities	1,779		2,592		288		52		9		—		4,720
Foreign corporate public securities and foreign governments(1)	819		1,543		118		83		—		—		2,563
Foreign corporate private securities(1)	291		2,273		127		4		17		—		2,712
Residential mortgage-backed securities	3,286		32		6		2		6		6		3,338
Commercial mortgage-backed securities	2,841		488		102		18		9		7		3,465
Other asset-backed securities	2,122		263		6		11		1		24		2,427
Total fixed maturities	$	14,607	$	11,974	$	840	$	189	$	54	$	37	$	27,701
% of Fair Value	52.8%		43.2%		3.0%		0.7%		0.2%		0.1%		100.0%
(1) Primarily U.S. dollar denominated.


			83

Table of Contents


($ in millions)	December 31, 2023
NAIC Quality Designation	1		2		3		4		5		6		Total Fair Value
U.S. Treasuries	$	403	$	—	$	—	$	—	$	—	$	—	$	403
U.S. Government agencies and authorities	56		—		—		—		—		—		56
State, municipalities and political subdivisions	732		39		—		—		—		—		771
U.S. corporate public securities	2,493		4,891		239		42		1		—		7,666
U.S. corporate private securities	1,799		2,576		312		64		9		—		4,760
Foreign corporate public securities and foreign governments(1)	834		1,669		113		84		—		2		2,702
Foreign corporate private securities(1)	280		2,396		114		4		18		—		2,812
Residential mortgage-backed securities	3,415		35		8		1		9		8		3,476
Commercial mortgage-backed securities	2,879		484		94		16		15		7		3,495
Other asset-backed securities	2,143		284		7		11		1		24		2,470
Total fixed maturities	$	15,034	$	12,374	$	887	$	222	$	53	$	41	$	28,611
% of Fair Value	52.6%		43.2%		3.1%		0.8%		0.2%		0.1%		100.0%
(1)Primarily U.S. dollar denominated.

The following tables present credit quality of fixed maturities, including securities pledged, using NAIC acceptable rating organizations ("ARO") ratings as of the dates indicated:


($ in millions)	March 31, 2024
ARO Quality Ratings	AAA		AA		A		BBB		BB and Below		Total Fair Value
U.S. Treasuries	$	—	$	401	$	—	$	—	$	—	$	401
U.S. Government agencies and authorities	—		55		—		—		—		55
State, municipalities and political subdivisions	47		373		225		36		—		681
U.S. corporate public securities	25		341		2,069		4,651		253		7,339
U.S. corporate private securities	22		219		1,521		2,499		459		4,720
Foreign corporate public securities and foreign governments(1)	8		146		709		1,499		201		2,563
Foreign corporate private securities(1)	—		40		213		2,297		162		2,712
Residential mortgage-backed securities	1,151		1,958		26		44		159		3,338
Commercial mortgage-backed securities	248		1,333		791		926		167		3,465
Other asset-backed securities	178		629		1,300		267		53		2,427
Total fixed maturities	$	1,679	$	5,495	$	6,854	$	12,219	$	1,454	$	27,701
% of Fair Value	6.1%		19.8%		24.7%		44.2%		5.2%		100.0%
(1) Primarily U.S. dollar denominated.


			84

Table of Contents


($ in millions)	December 31, 2023
ARO Quality Ratings(2)	AAA			AA			A			BBB			BB and Below			Total Fair Value
U.S. Treasuries	$	—		$	403		$	—		$	—		$	—		$	403
U.S. Government agencies and authorities	—			55			—			—			1			56
State, municipalities and political subdivisions	46			447			239			39			—			771
U.S. corporate public securities	25			351			2,209			4,785			296			7,666
U.S. corporate private securities	22			231			1,509			2,546			452			4,760
Foreign corporate public securities and foreign governments(1)	8			147			728			1,598			221			2,702
Foreign corporate private securities(1)	—			40			216			2,360			196			2,812
Residential mortgage-backed securities	1,157			2,075			31			48			165			3,476
Commercial mortgage-backed securities	249			1,360			770			949			167			3,495
Other asset-backed securities	189			593			1,345			289			54			2,470
Total fixed maturities	$	1,696		$	5,702		$	7,047		$	12,614		$	1,552		$	28,611
% of Fair Value	5.9		%	19.9		%	24.6		%	44.2		%	5.4		%	100.0		%
(1) Primarily U.S. dollar denominated. (2) In 2023, Fitch downgraded the United States long-term credit rating from AAA to AA+. As a result, the effective ratings on all Treasury and Agency guaranteed mortgage-backed securities were similarly lowered from AAA to AA+.

Fixed maturities rated BB and below may have speculative characteristics and changes in economic conditions or other circumstances that are more likely to lead to a weakened capacity of the issuer to make principal and interest payments than is the case with higher rated fixed maturities.

Unrealized Capital Losses

As of March 31, 2024 and December 31, 2023, we held seven and six fixed maturities with unrealized capital loss in excess of $10 million, respectively. As of March 31, 2024 and December 31, 2023, the unrealized capital losses on these fixed maturities equaled $80 million or 2.9% and $70 million or 2.6% of the total unrealized losses, respectively.

As of March 31, 2024, we held $2.0 billion of energy sector fixed maturity securities, constituting 7.3% of the total fixed maturities portfolio, with gross unrealized capital losses of $109 million, including zero energy sector fixed maturity security with unrealized capital losses in excess of $10 million. As of March 31, 2024, our fixed maturity exposure to the energy sector is comprised of 92.2% investment grade securities.

As of December 31, 2023, we held $2.1 billion of energy sector fixed maturity securities, constituting 7.3% of the total fixed maturities portfolio, with gross unrealized capital losses of $104 million, including zero energy sector fixed maturity security with unrealized capital losses in excess of $10 million. As of December 31, 2023, our fixed maturity exposure to the energy sector is comprised of 92.1% investment grade securities.

See the Investments (excluding Consolidated Investment Entities) Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for further information on unrealized capital losses.


			85

Table of Contents

CMO-B Portfolio

The following table presents fixed maturities balances held in the CMO-B portfolio by NAIC quality rating as of the dates indicated:


($ in millions)	March 31, 2024						December 31, 2023
NAIC Quality Designation	Amortized Cost		Fair Value		% Fair Value		Amortized Cost		Fair Value		% Fair Value
1	$	1,696	$	1,704	97.5	%	$	1,779	$	1,795	97.3	%
2	30		30		1.7	%	33		33		1.8	%
3	—		—		—	%	—		1		0.1	%
4	—		1		0.1	%	—		—		—	%
5	4		5		0.3	%	4		7		0.4	%
6	6		7		0.4	%	7		8		0.4	%
Total	$	1,736	$	1,747	100.0	%	$	1,823	$	1,844	100.0	%

For CMO securities where we elected the FVO, amortized cost represents the market values. For details on the NAIC designation methodology, see Fixed Maturities Credit Quality-Ratings in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7. of our Annual Report on Form 10-K.

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:


	March 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	$	11,594	$	172	$	283	$	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.

The following table presents our CMO-B fixed maturity securities balances and tranche type as of the dates indicated:


($ in millions)	March 31, 2024						December 31, 2023
Tranche Type	Amortized Cost		Fair Value		% Fair Value		Amortized Cost		Fair Value		% Fair Value
Inverse Floater	$	72	$	72	4.1	%	$	72	$	78	4.2	%
Interest Only (IO)	968		969		55.5	%	965		966		52.5	%
Inverse IO	442		447		25.6	%	519		530		28.7	%
Principal Only (PO)	62		62		3.5	%	65		65		3.5	%
Floater	5		5		0.3	%	5		5		0.3	%
Agency Credit Risk Transfer	164		169		9.7	%	169		172		9.3	%
Other	23		23		1.3	%	28		28		1.5	%
Total	$	1,736	$	1,747	100.0	%	$	1,823	$	1,844	100.0	%

During the three months ended March 31, 2024, the market value of our CMO-B securities portfolio was lower on a combination of transactional activity and valuation movements among tranche types.


			86

Table of Contents

The following table presents returns for our CMO-B portfolio for the periods indicated:


	Three Months Ended March 31,
($ in millions)		2024		2023
Net investment income (loss)		$	64	$	88
Net gains (losses)(1)		19		(18)
Income (loss) before income taxes		$	83	$	70

(1) Net gains (losses) also include derivatives interest settlements, mark to market adjustments and realized gains (losses) on standalone derivatives contracts that are in the CMO-B portfolio.

In defining the Adjusted operating earnings before income taxes for our CMO-B portfolio (including CMO-B portfolio income (loss) related to businesses to be exited through reinsurance or divestment) certain recharacterizations are recognized. 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. In order to present the economics of these fair value securities in a similar manner to those of an available for sale security, the premium amortization is reclassified from Net gains (losses).

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:


	Three Months Ended March 31,
($ in millions)		2024		2023
Income (loss) before income taxes		$	83	$	70
Realized gains (losses) including impairment		—		(2)
Fair value adjustments		(34)		(11)
Total adjustments to income (loss)		(34)		(13)
Adjusted operating earnings before income taxes		$	49	$	57

See Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7. of our Annual Report on Form 10-K for information on our CMO-B portfolio.

Structured Securities

Residential Mortgage-backed Securities

The following tables present our residential mortgage-backed securities as of the dates indicated:


	March 31, 2024
($ in millions)	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives		Fair Value
Prime Agency	$	1,829	$	13	$	47	$	(1)	$	1,794
Prime Non-Agency	1,696		12		227		—		1,481
Alt-A	50		3		2		1		52
Sub-Prime(1)	23		1		1		—		23
Total	$	3,598	$	29	$	277	$	—	$	3,350
(1) Includes subprime other asset backed securities.


			87

Table of Contents


	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.

Commercial Mortgage-backed Securities

The following tables present our commercial mortgage-backed securities by origination as of the dates indicated:


	March 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	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2023	—		—		4		4		4		4		—		—		—		—		8		8
2022	22		21		118		94		135		129		115		108		—		—		390		352
2021	106		100		208		143		215		196		284		260		18		16		831		715
2020	41		39		46		36		64		53		152		129		11		5		314		262
Prior	98		88		1,234		1,056		450		409		522		429		212		146		2,516		2,128
Total	$	267	$	248	$	1,610	$	1,333	$	868	$	791	$	1,073	$	926	$	241	$	167	$	4,059	$	3,465


	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 March 31, 2024, 82.0% and 14.1% of CMBS investments were designated as NAIC-1 and NAIC-2, respectively. As of December 31, 2023, 82.4% and 13.8% of CMBS investments were designated as NAIC-1 and NAIC-2, respectively.


			88

Table of Contents

Other Asset-backed Securities

The following tables present our other asset-backed securities as of the dates indicated:


	March 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
Collateralized Obligation	$	128	$	130	$	564	$	568	$	1,150	$	1,162	$	114	$	114	$	60	$	42	$	2,016	$	2,016
Auto-Loans	1		1		—		—		—		—		—		—		—		—		1		1
Student Loans	5		5		64		58		—		—		—		—		—		—		69		63
Credit Card loans	1		1		—		—		—		—		2		2		3		3		6		6
Other Loans	49		42		2		2		149		137		156		147		1		1		357		329
Total(1)	$	184	$	179	$	630	$	628	$	1,299	$	1,299	$	272	$	263	$	64	$	46	$	2,449	$	2,415
(1) Excludes subprime other asset backed securities.

	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
Collateralized Obligation	$	143	$	143	$	523	$	524	$	1,201	$	1,203	$	120	$	119	$	60	$	42	$	2,047	$	2,031
Auto-Loans	1		1		—		—		—		—		—		—		—		—		1		1
Student Loans	4		3		73		66		—		—		—		—		—		—		77		69
Credit Card loans	1		1		—		—		3		2		—		—		—		—		4		3
Other Loans	49		41		2		2		151		138		180		166		5		5		387		352
Total(1)	$	198	$	189	$	598	$	592	$	1,355	$	1,343	$	300	$	285	$	65	$	47	$	2,516	$	2,456
(1) Excludes subprime other asset backed securities.

As of March 31, 2024, 87.4% and 10.9% 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.

Mortgage Loans on Real Estate

As of March 31, 2024, our mortgage loans on real estate portfolio had a weighted average DSC of 1.94 times and a weighted average LTV ratio of 44.6%. As of December 31, 2023, our mortgage loans on real estate portfolio had a weighted average DSC of 1.94 times, and a weighted average LTV ratio of 45.0%. See the Investments (excluding Consolidated Investment Entities) Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for further information on mortgage loans on real estate.

Impairments

We evaluate available-for-sale fixed maturities for impairment on a regular basis. The assessment of whether impairments have occurred is based on a case-by-case evaluation of the underlying reasons for the decline in estimated fair value. See the Business, Basis of Presentation and Significant Accounting Policies Note in our Consolidated Financial Statements in Part II, Item 8. of our Annual Report on Form 10-K for the policy used to evaluate whether the investments are impaired.


			89

Table of Contents

Derivatives

We use derivatives for a variety of hedging purposes. We also have embedded derivatives within fixed maturities instruments and certain product features. See the Business, Basis of Presentation and Significant Accounting Policies Note in our Consolidated Financial Statements in Part II, Item 8. of our Annual Report on Form 10-K for further information.

See the Derivative Financial Instruments Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for further information on derivatives.

European Exposures

We quantify and allocate our exposure to the region by attempting to identify aspects of the region or country risk to which we are exposed. Among the factors we consider are the nationality of the issuer, the nationality of the issuer's ultimate parent, the corporate and economic relationship between the issuer and its parent, as well as the political, legal and economic environment in which each functions. By undertaking this assessment, we believe that we develop a more accurate assessment of the actual geographic risk, with a more integrated understanding of contributing factors to the full risk profile of the issuer.

In the normal course of our ongoing risk and portfolio management process, we closely monitor compliance with a credit limit hierarchy designed to minimize overly concentrated risk exposures by geography, sector and issuer. This framework takes into account various factors such as internal and external ratings, capital efficiency and liquidity and is overseen by a combination of Investment and Corporate Risk Management, as well as insurance portfolio managers focused specifically on managing the investment risk embedded in our portfolio.

While economic conditions in Europe have broadly improved, geopolitical tensions emanating from the Russia-Ukraine conflict remain a notable tail risk. Despite signs of economic improvement in the region, we continue to closely monitor our exposure to the region.

As of March 31, 2024, our total European exposure had an amortized cost and fair value of $2,609 million and $2,427 million, respectively. Some of the major country level exposures were in the United Kingdom of $1,056 million, in France of $250 million, in The Netherlands of $231 million, in Switzerland of $94 million, in Germany of $171 million, in Ireland of $133 million, and in Belgium of $57 million. Our direct exposure in Eastern Europe is comparatively small, with less than $1 million of exposure in Russia and none in Ukraine or Belarus.

Consolidated and Nonconsolidated Investment Entities

We use many forms of entities to achieve our business objectives and we have participated in varying degrees in the design and formation of these entities. 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. The consolidation process brings on the assets, liabilities, noncontrolling interest and operations of the VIE and/or VOE into our financial statements.

If the fund no longer meets the criteria for consolidation, the assets, liabilities, noncontrolling interest and operations of the fund is removed from our financial statements. This process of consolidation/deconsolidation could have a material impact on Total shareholders’ equity.

See Consolidation and Noncontrolling Interests and Fair Value Measurements in the Business, Basis of Presentation and Significant Accounting Policies Note to our Consolidated Financial Statements in Part II, Item 8. of our Annual Report on Form 10-K. Additionally, see the Consolidated and Nonconsolidated Investment Entities Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for more information.

Securitizations

We invest in various tranches of securitization entities, including RMBS, CMBS and ABS. Refer to the Consolidated and Nonconsolidated Investment Entities Note and Fair Value Measurements (excluding Consolidated Investment Entities) Note to our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for an understanding over the Company's Securitizations. Refer to the Investments (excluding Consolidated Investment Entities) Note to our


			90

Table of Contents

Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q for details regarding the carrying amounts and classifications of these assets.

Guarantors and Issuers of Guaranteed Securities

Voya Financial, Inc. (the "Parent Issuer") has issued certain notes pursuant to transactions registered under the Securities Act of 1933. As of March 31, 2024 and 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 junior subordinated notes due 2048, with principal amount of $336 million (the "Junior Subordinated Notes" and, together with the Senior Notes, the "Registered Notes").

Voya Holdings, Inc. (the "Subsidiary Guarantor"), a wholly owned subsidiary of the Parent Issuer, has guaranteed each of the Registered Notes on a full and unconditional basis. No other subsidiary of the Parent Issuer has guaranteed any of the Registered Notes. The Parent Issuer and the Subsidiary Guarantor are hereby referred to below as the "Obligor Group."

The full and unconditional guarantees require the Subsidiary Guarantor to satisfy the obligations of the guaranteed security immediately, if and when the Parent Issuer has failed to make a scheduled payment thereunder. 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. In addition, financial information of any non-issuer or non-guarantor subsidiaries, which would normally be consolidated by either the Parent Issuer or the Subsidiary Guarantor under U.S. generally accepted accounting principles, has been excluded from such presentation.

Refer to the Summarized Financial Information of the Obligor Group for the periods indicated:


	As of and for the
($ in millions)	Three Months ended March 31, 2024		Year Ended December 31, 2023
Summarized Statements of Operations Information:
Total revenues	$	21	$	133
Total benefits and expenses	40		216
Income (loss), net of tax	(9)		(59)

Net income (loss) before equity in earnings (losses) of unconsolidated affiliates	(9)		(59)
Net income (loss) available to Obligor Group	(9)		(59)


Summarized Balance Sheets Information:
Total investments	66		32
Cash and cash equivalents	177		207

Deferred income taxes	872		875
Goodwill	94		94
Loans to non-obligated subsidiaries	344		227
Due from non-obligated subsidiaries	30		8
Total assets	1,608		1,466

Short-term debt with non-obligated subsidiaries	988		445

Long-term debt	1,707		2,097
Total liabilities	$	2,883	$	2,747


			91

Legislative and Regulatory Developments

Department of Labor ("DOL") Retirement Security Rule

On April 23, 2024, the DOL released the Retirement Security Rule defining who is an investment advice fiduciary for purposes of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The DOL also released final amendments to class prohibited transaction exemptions (PTEs) available to investment advice fiduciaries, including PTE 2020-02 and PTE 84-24.

The effective date for the Retirement Security Rule and amendments to the PTEs is expected to be on or around September 23, 2024. There is a one (1) year transition rule applicable to certain conditions contained in the PTE amendments. The new definition of an investment advice fiduciary expands the definition of who the DOL considers a fiduciary under ERISA. Voya is continuing to study the effect the Retirement Security Rule and amendments may have on its Wealth Solutions business and operations but currently anticipates that such effects will not be significant. Voya’s current in-plan investment advisory services program, which is designed to comply with previous DOL guidance, remains unchanged.

Qualified Professional Asset Manager ("QPAM") Exemption Updates

In April 2024, the DOL published changes to class prohibited transaction exemption 84-14 (the “QPAM Exemption”). As a result of these changes, we will be required to notify the DOL prior to relying on the QPAM Exemption, in addition to satisfying new minimum qualification and recordkeeping requirements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk that our consolidated financial position and results of operations will be affected by fluctuations in the value of financial instruments. We have significant holdings in financial instruments and are naturally exposed to a variety of market risks. The main market risks we are exposed to include interest rate risk, equity market price risk and credit risk. We do not have material market risk exposure to "trading" activities in our Condensed Consolidated Financial Statements. For further details on these market risks, see Quantitative and Qualitative Disclosures About Market Risk in Part II, Item 7A. of our Annual Report on Form 10-K.

Market Risk Related to Interest Rates

We assess interest rate exposures for financial assets, liabilities and derivatives using hypothetical test scenarios that assume either increasing or decreasing 100 basis point parallel shifts in the yield curve. In calculating these amounts, we exclude gains and losses on separate account fixed income securities related to products for which the investment risk is borne primarily by the separate account contract holder rather than by us. 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. 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.


			92

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 March 31, 2024:


	As of March 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	$	—	$	27,701	$	(1,675)	$	1,884
Mortgage loans on real estate	—		4,831		(150)		161
Financial liabilities with interest rate risk:
Investment contracts:
Funding agreements without fixed maturities and deferred annuities(3)	—		33,978		(1,693)		2,278
Funding agreements with fixed maturities	—		1,206		1		—
Supplementary contracts and immediate annuities	—		545		(41)		5
Derivatives:
Interest rate contracts	17,145		12		244		(265)
Long-term debt	—		1,617		(105)		119
Stabilizer and MCGs	—		8		11		5
Embedded derivatives on reinsurance	—		(12)		26		(30)

(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.

(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 the Funding agreements without fixed maturities and deferred annuities section are also reflected within the Stabilizer and MCGs section of the table above.

Market Risk Related to Equity Market Prices

We assess equity risk exposures for financial assets, liabilities and derivatives using hypothetical test scenarios that assume either an increase or decrease of 10% in all equity market benchmark levels. In calculating these amounts, we exclude gains and losses on separate account equity securities related to products for which the investment risk is borne primarily by the separate account contract holder rather than by us. While the test scenarios are for illustrative purposes only and do not reflect our expectations regarding the future performance of equity markets, they are near-term, reasonably possible hypothetical changes that illustrate the potential impact of such events. These scenarios consider only the direct effect on fair value of declines in equity benchmark market levels and not changes in asset-based fees recognized as revenue or changes in any other assumptions such as market volatility or mortality, utilization or persistency rates in insurance contracts. In addition, these scenarios do not reflect the effect of basis risk, such as potential differences in the performance of the investment funds underlying the variable annuity products relative to the equity market benchmark we use as a basis for developing our hedging strategy. 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.


			93

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 March 31, 2024:


	As of March 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	$	—	$	219	$	22	$	(22)
Limited partnerships/corporations	—		1,708		102		(102)
Derivatives:
Equity futures and total return swaps	249		4		19		(19)
Equity options	36		1		—		—

(1) (Decreases) in assets or (decreases) in liabilities are presented in parentheses. Increases in assets or increases in liabilities are presented without parentheses.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

The Company carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended ("Exchange Act")) as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that the Company's current disclosure controls and procedures are effective in ensuring that material information relating to the Company required to be disclosed in the Company's periodic SEC filings is made known to them in a timely manner.

Changes in Internal Control Over Financial Reporting

There were no changes to the Company's internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during the quarter ended March 31, 2024 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

See the Commitments and Contingencies Note in our Condensed Consolidated Financial Statements in Part I, Item 1. of this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors

For a discussion of the Company’s potential risks and uncertainties, see Risk Factors in Part I, Item 1A. of our Annual Report on Form 10-K for the year ended December 31, 2023 (the "Annual Report on Form 10-K") (File No. 001-35897).


			94

Table of Contents

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

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 March 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(2)
					(in millions)
January 1, 2024 - January 31, 2024	814,490	$	71.93	791,483	$	340
February 1, 2024 - February 29, 2024	1,418,139	69.44		959,634	274
March 1, 2024 - March 31, 2024	696,605	70.07		694,269	225
Total	2,929,234	$	70.28	2,445,386	N/A

(1) In connection with the 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. For the three months ended March 31, 2024, there was an increase of 483,848 Treasury shares in connection with such withholding activities.

(2) On April 23, 2024, the Company's Board of Directors provided an additional share repurchase authorization of $500 million. This share repurchase authorization expires on June 30, 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 of Directors at any time.

Item 5. Other Information

During the three months ended March 31, 2024, none of the Company's directors and officers (as defined in Rule 16a-1(f)) adopted or terminated any trading plans intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).

Item 6. Exhibits

See Exhibit Index on the following page.


			95

Table of Contents

Voya Financial, Inc.


Exhibit Index
Exhibit No.						Description of Exhibit
10.1+*						Form of 2024 Executive Officer Award Agreement pursuant to the Voya Financial 2019 Omnibus Employee Incentive Plan
10.2+*						Form of 2024 Award Agreement pursuant to the Voya Financial 2019 Omnibus Employee Incentive Plan
10.3+*						Form of 2024 Chairman Award Agreement pursuant to the Voya Financial 2019 Omnibus Employee Incentive Plan
31.1+						Rule 13a-14(a)/15d-14(a) Certification of Heather H. Lavallee, Chief Executive Officer (included as Exhibit 31.1 to Form 10-Q)
31.2+						Rule 13a-14(a)/15d-14(a) Certification of Donald C. Templin, Chief Financial Officer (included as Exhibit 31.2 to Form 10-Q)
32.1+						Section 1350 Certification of Heather H. Lavallee, Chief Executive Officer (included as Exhibit 32.1 to Form 10-Q)
32.2+						Section 1350 Certification of Donald C. Templin, Chief Financial Officer (included as Exhibit 32.2 to Form 10-Q)
101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH+						Inline XBRL Taxonomy Extension Schema
101.CAL+						Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF+						Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB+						Inline XBRL Taxonomy Extension Label Linkbase
101.PRE+						Inline XBRL Taxonomy Extension Presentation Linkbase
104+						Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101).

+ Filed herewith.

*This exhibit is a management contract or compensatory plan or arrangement


			96

Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

May 6, 2024

Voya Financial, Inc.

(Date)

(Registrant)

By:

/s/

Donald C. Templin

Chief Financial Officer

(Duly Authorized Officer and Principal Financial Officer)


			97