Voya Financial lays out plans for at least 10% annual earnings growth
Voya Financial announced its plans to achieve an adjusted operating earnings per share annual growth rate of at least 10% on a normalized basis through 2021. The company expects to achieve its plan through a combination of organic business growth, cost savings and share repurchases. Voya expects its core businesses - Retirement, Investment Management and Employee Benefits - to "drive high quality and sustainable earnings; expected total free cash flow conversion of 85% to 95%." The company is also targeting an additional $100M of run-rate savings, incremental to expense savings previously announced, expected by the end of 2020. Further, with continued share repurchases planned, Voya's common stock dividend expected to increase to achieve at least a 1% dividend yield by mid-2019. The company says adjusted operating earnings per share growth will be achieved "while maintaining strong returns and generating an enterprise operating return on equity of 13% to 15%." CEO Rodney Martin adds, "With our competitive advantages and renewed focus on our chosen businesses, Voya Financial is poised to achieve significant earnings per share growth of at least 10% annually over the next three years. Importantly, we believe that we can generate this level of adjusted operating EPS improvement while also achieving an operating return on equity of between 13% and 15%. The foundation of our plans starts with our higher-growth, higher-return, capital-light Retirement, Investment Management and Employee Benefits businesses. With our established positions in the workplace and with institutions, we will continue to expand our offerings to existing clients, while also attracting new customers. In addition to executing on growth plans that are specific to each business, we will continue to leverage opportunities to deliver holistic, comprehensive solutions across our businesses. With our significant reach and strong brand awareness, we are well positioned to help our customers achieve their goals with confidence."