Voya Financial, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

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EX-99.1 - EXHIBIT 99.1 - Voya Financial, Inc.	a2019q4pressrelease.htm
8-K - 8-K - Voya Financial, Inc.	a2019q48-kvoyafinancia.htm

Exhibit 99.2

Quarterly Investor Supplement

December 31, 2019

This report should be read in conjunction with Voya Financial, Inc.'s Annual Report on Form 10-K for the Twelve Months Ended December 31, 2019. Voya Financial's Annual Reports on Form 10-K, and Quarterly Reports on Form 10-Q, can be accessed upon filing at the Securities and Exchange Commission’s website at www.sec.gov, and at our website at investors.voya.com. All information is unaudited.




Corporate Offices:	Media Contact:	Investor Contact:

Voya Financial	Christopher Breslin	Michael Katz
230 Park Avenue	212-309-8941	212-309-8999
New York, New York 10169	Christopher.Breslin@voya.com	IR@voya.com

NYSE Ticker:		Web Site:
VOYA		investors.voya.com

Table of Contents



	Page		Page
Consolidated		Corporate
Explanatory Note on Non-GAAP Financial Information	3 - 5	Adjusted Operating Earnings	30
Key Metrics	6	Investment Information
Normalized Adjusted Operating Earnings by Segment	7	Portfolio Composition	32
Normalized Effective Tax Rate	8	Portfolio Results	33
Consolidated Statements of Operations	9	Alternative Investment Income	34
Consolidated Adjusted Earnings Before Income Taxes	10	Reconciliations
Adjusted Operating Earnings by Segment (QTD)	11	Reconciliation of Consolidated Statements of Operations	36
Adjusted Operating Earnings by Segment (YTD)	12	Reconciliation of Adjusted Operating Revenues	37
Consolidated Balance Sheets	13	Reconciliation of Adjusted Operating Earnings - excluding Unlocking;
DAC/VOBA Segment Trends	14	Adjusted Return on Capital	38 - 39
Consolidated Capital Structure	15	Prepayments and Alternative Income Above (Below) Long-Term
Consolidated Assets Under Management, Assets Under Administration		Expectations	40
and Advisement	16	Reconciliation of Normalized Adjusted Operating Earnings and Earnings
Retirement		Per Common Share (Diluted) (QTD)	41
Sources of Normalized Adjusted Operating Earnings and Key Metrics	18	Reconciliation of Normalized Adjusted Operating Earnings and Earnings
Client Assets Rollforward by Product Group	19 - 20	Per Common Share (Diluted) (YTD)	42
Investment Management		Reconciliation of Book Value Per Common Share, Excluding AOCI	43
Sources of Normalized Adjusted Operating Earnings	22	Reconciliation of Investment Management Normalized Adjusted
Analysis of AUM and AUA	23	Operating Margin, Excluding Investment Capital	44
Account Value Rollforward by Source	24	Reconciliation of Previously Reported Normalized Adjusted Operating Earnings and Earnings
Account Value by Asset Type	25	Earnings and Earnings Per Common Share (Diluted)	45
Employee Benefits
Sources of Normalized Adjusted Operating Earnings	27
Key Metrics	28



Voya Financial		Page 3 of 45

Explanatory Note on Non-GAAP Financial Information

On December 18, 2019, we entered into an agreement to dispose of substantially all of our Individual Life and other closed block non-retirement annuities businesses (the "Individual Life Transaction"). As a result, the assets and liabilities of the businesses to be sold have been classified as held for sale and the results of operations have been classified as discontinued operations for all periods presented in this Quarterly Investor Supplement. Income (loss) from discontinued operations, net of tax includes a $1.1 billion write down of assets of businesses held for sale to fair value less costs to sell in the periods ended 12/31/2019. Revenues and net results of the business that will be divested via reinsurance at closing of the Individual Life Transaction (including insignificant number of Individual Life, Annuities and Closed Block Variable Annuities ("CBVA") policies that were not part of the Individual Life and 2018 Transactions) are reported in businesses exited or to be exited through reinsurance or divestment and are excluded from adjusted operating earnings. All prior periods have been revised to reflect these changes. Refer to Business Held for Sale and Discontinued Operations in Part II, Item 8. of our Annual Report on Form 10-K for further detail on discontinued operations.

On June 1, 2018, we closed a transaction that resulted in the disposition of substantially all of our CBVA and annuities businesses (the "2018 Transaction"). Income (loss) from discontinued operations, net of tax for the year ended December 31, 2019, includes a $82 million charge related to the purchase price true-up settlement.

On September 12, 2018, we issued 325,000 shares of 6.125% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series A, with a $0.01 par value per share and a liquidation preference of $1,000 per share, for aggregate net proceeds of $319 million. Dividend payments will be made semi-annually in arrears on the 15th day of March and September of each year, commencing on March 15, 2019. On June 11, 2019, we issued 300,000 shares of 5.35% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series B with a $0.01 par value per share and a liquidation preference of $1,000 per share, for aggregate net proceeds of $293 million. Dividend payments will be made quarterly in arrears on the 15th of March, June, September and December of each year, commencing on September 15, 2019.

Adjusted Operating Earnings Before Income Taxes

We believe that Adjusted operating earnings before income taxes provides a meaningful measure of its business and segment performance and enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions or other factors. We use the same accounting policies and procedures to measure segment Adjusted operating earnings before income taxes as we do for the directly comparable U.S. GAAP measure, which is Income (loss) from continuing operations before income taxes.

Adjusted operating earnings before income taxes does not replace Income (loss) from continuing operations before income taxes as a measure of our consolidated results of operations. Therefore, we believe that it is useful to evaluate both Income (loss) from continuing operations before income taxes and Adjusted operating earnings before income taxes when reviewing our financial and operating performance. Each segment’s Adjusted operating earnings before income taxes is calculated by adjusting Income (loss) from continuing operations before income taxes for the following items:

▪

Net investment gains (losses), net of related amortization of DAC, VOBA, sales inducements and unearned revenue, 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 realized gains (losses) associated with swap settlements and accrued interest;

•

Net guaranteed benefit hedging gains (losses), which are significantly influenced by economic and market conditions and are not indicative of normal operations, include changes in the fair value of derivatives related to guaranteed benefits, net of related reserve increases (decreases) and net of related amortization of DAC, VOBA and sales inducements, less the estimated cost of these benefits. The estimated cost, which is reflected in operating results, reflects the expected cost of these benefits if markets perform in line with our long-term expectations and includes the cost of hedging. Other derivative and reserve changes related to guaranteed benefits are excluded from operating results, including the impacts related to changes in nonperformance spread;

•

Income (loss) related to businesses exited or to be exited through reinsurance or divestment that do not qualify as discontinued operations, which includes gains and (losses) associated with transactions to exit blocks of business (including net investment gains (losses) on securities sold and expenses directly related to these transactions) and residual run-off activity (including insignificant number of Individual Life, Annuities and CBVA policies that were not part of the Individual Life and 2018 Transactions); these gains and (losses) are often related to infrequent events and do not reflect performance of operating segments. Excluding this activity better reveals trends in our core business, which would be obscured by including the effects of business exited or to be exited, and more closely aligns Adjusted operating earnings before income taxes with how we manages our segments;


•	Income (loss) attributable to noncontrolling interest, which represents the interest of shareholders, other than those of Voya Financial, Inc., in the gains and (losses) of consolidated entities, or the attribution of results from consolidated VIEs or VOEs to which we are not economically entitled;


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


•	Income (loss) related to early extinguishment of debt, which includes losses incurred as a result of transactions where we repurchase outstanding principal amounts of debt; these losses are excluded from Adjusted operating earnings before income taxes since the outcome of decisions to restructure debt are not indicative of normal operations;


•	Impairment of goodwill, value of management contract rights and value of customer relationships acquired, which includes losses as a result of impairment analysis; these represent losses related to infrequent events and do not reflect normal, cash-settled expenses;



Voya Financial		Page 4 of 45

Explanatory Note on Non-GAAP Financial Information

•

Immediate recognition of net actuarial gains (losses) related to our pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments, which includes actuarial gains and losses as a result of differences between actual and expected experience on pension plan assets or projected benefit obligation during a given period. We immediately recognize actuarial gains and (losses) related to pension and other postretirement benefit obligations and gains and losses from plan adjustments and curtailments. These amounts do not reflect normal, cash-settled expenses and are not indicative of current Operating expense fundamentals; and

•

Other items not indicative of normal operations or performance of our segments or may be related to events such as capital or organizational restructurings undertaken to achieve long-term economic benefits, including certain costs related to debt and equity offerings, acquisition / merger integration expenses, severance and other expenses associated with such activities. These items vary widely in timing, scope and frequency between periods as well as between companies to which we are compared. Accordingly, we adjust for these items as we believe that these items distort the ability to make a meaningful evaluation of the current and future performance of our segments.

Income (loss) related to businesses exited or to be exited through reinsurance or divestment (including net investment gains (losses) on securities sold and expenses directly related to these transactions, and insignificant number of Individual Life, Annuities and CBVA policies that were not part of the Individual Life and 2018 Transactions) are excluded from Adjusted operating earnings before income taxes. When we present the adjustments to Income (loss) from continuing operations before income taxes on a consolidated basis, each adjustment excludes the relative portions attributable to businesses exited or to be exited through reinsurance or divestment.

The most directly comparable U.S. GAAP measure to Adjusted operating earnings before income taxes is Income (loss) from continuing operations before income taxes. For a reconciliation of Adjusted operating earnings before income taxes to Income (loss) from continuing operations before income taxes, refer to the "Reconciliations" section in this document.

Stranded Costs

As a result of the 2018 Transaction and the Individual Life Transaction, the historical revenues and certain expenses of the sold businesses have been classified as discontinued operations. Historical revenues and certain expenses of the businesses that will be divested via reinsurance at closing of the Individual Life Transaction (including an insignificant amount of Individual Life and closed block non retirement annuities that are not part of the transaction) are reported within continuing operations, but are excluded from adjusted operating earnings as businesses exited or to be exited through reinsurance or divestment. Expenses classified within discontinued operations and businesses exited or to be exited through reinsurance include only direct operating expenses incurred by these businesses and then only to the extent that the nature of such expenses was such that we would cease to incur such expenses upon the close of the 2018 Transaction and the Individual Life Transaction. Certain other direct costs of these businesses, including those which relate to activities for which we have or will provide transitional services and for which we have or will be reimbursed under transition services agreements (“TSAs”) are reported within continuing operations along with the associated revenues from the TSAs. Additionally, indirect costs, such as those related to corporate and shared service functions that were previously allocated to the businesses sold or divested via reinsurance, are reported within continuing operations. These costs ("Stranded Costs") and the associated revenues from the TSAs are reported within continuing operations in Corporate, since we do not believe they are representative of the future run-rate of revenues and expenses of our continuing operations. The Stranded Costs related to the 2018 Transaction were removed in the fourth quarter of 2019 and we plan to address the Stranded Costs related to the Individual Life Transaction through a cost reduction strategy.

Normalized Adjusted Operating Earnings

Normalized adjusted operating earnings excludes from Adjusted operating earnings before income taxes the following items:


•	DAC/VOBA and other intangibles unlocking;


•	The amount by which Investment income from prepayment fees and alternative investments exceeds or is less than our long-term expectations reported on a pre-DAC basis;


•	For periods ended on or prior to June 30, 2018, Investment Management adjusted operating earnings related to our fixed and variable annuities businesses, which we sold in a transaction that closed on June 1, 2018; and

•

For periods ended on or prior to the closing of the Individual Life Transaction, stranded costs associated with the Individual Life Transaction where the corresponding revenue is now reported in discontinued operations or in businesses exited or to be exited through reinsurance or divestment; for periods after the closing of the Individual Life Transaction any remaining stranded costs and the associated revenues from future TSAs will be reported in normalized adjusted operating earnings.

Because DAC/VOBA and other intangibles unlocking can be volatile, excluding the effect of this item can improve period to period comparability.

Adjusted Operating Earnings per Common Share (Diluted) and Normalized Adjusted Operating Earnings per Common Share (Diluted)

In addition to Net income (loss) per common share, we report Adjusted operating earnings per common share (diluted) and Normalized adjusted operating earnings per common share (diluted) because we believe that Adjusted operating earnings before income taxes provides a meaningful measure of its business and segment performances and enhances the understanding of our financial results by focusing on the operating performance and trends of the underlying business segments and excluding items that tend to be highly variable from period to period based on capital market conditions and/or other factors. For a reconciliation of these non-GAAP measures to the most directly comparable U.S. GAAP measures, refer to the "Reconciliation of Normalized Adjusted Operating Earning and Earnings Per Common Share" page of this document.

Shareholders' Equity/Book Value per Common Share, Excluding AOCI

In addition to book value per common share including Accumulated other comprehensive income (AOCI), we also report book value per common share excluding AOCI and shareholders' equity excluding AOCI and preferred stock. Included in AOCI are investment portfolio unrealized gains or losses. In the ordinary course of business we do not plan to sell most investments for the sole purpose of realizing gains or losses, and book value per common share excluding AOCI and common shareholders' equity excluding AOCI provide a measure consistent with that view. The Adjusted debt to capital ratio includes a 25% equity treatment afforded to subordinated debt, 100% equity treatment afforded to preferred stock and excludes AOCI. For a reconciliation of these non-GAAP measures to the most directly comparable U.S. GAAP measures, refer to the Reconciliation of Book Value Per Common Share, Excluding AOCI" page of this document.



Voya Financial		Page 5 of 45

Explanatory Note on Non-GAAP Financial Information

Adjusted Return on Capital

We report Adjusted return on capital ("ROC") because we believe this measure is a useful indicator of how effectively we use capital resources allocated to our segments apart from Corporate and closed block activities, which include our Retirement, Investment Management and Employee Benefits segments. Capital is allocated to each of our segments in proportion to each segment’s target statutory capital, plus an allocation of the differences between statutory capital and total Voya Financial, Inc. shareholders' equity on a GAAP basis (excluding AOCI), based on each segment’s portion of these differences. Statutory surplus in excess of target statutory capital and certain Corporate assets and liabilities, such as certain deferred tax assets and liabilities for unfunded pension plans, are allocated to Corporate.

Adjusted Operating Effective Tax Rate and Normalized Adjusted Operating Effective Tax Rate

Beginning in 2018, the adjusted operating effective tax rate is based on the actual income tax expense for the current period related to Income (loss) from continuing operations, adjusted for estimated taxes on non-operating items and non-operating tax impacts, such as those related to restructuring, changes in a tax valuation allowance and changes to tax law, including the Tax Cuts and Jobs Act. For non-operating items, we apply a 21% tax rate beginning in 2018.

Adjusted Operating Revenues

Adjusted operating revenues is a measure of our segment revenues and a non-GAAP financial measure. Each segment's Adjusted operating revenues are calculated by adjusting Total revenues for the following items:

•

Net realized investment gains (losses) and related charges and adjustments, 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 realized gains (losses) associated with swap settlements and accrued interest. These are net of related amortization of unearned revenue;

•

Gain (loss) on change in fair value of derivatives related to guaranteed benefits, which is significantly influenced by economic and market conditions and not indicative of normal operations, includes changes in the fair value of derivatives related to guaranteed benefits, less the estimated cost of these benefits. The estimated cost, which is reflected in operating results, reflects the expected cost of these benefits if markets perform in line with our long-term expectations and includes the cost of hedging. Other derivative and reserve changes related to guaranteed benefits are excluded from operating revenues, including the impacts related to changes in nonperformance spread;

•

Revenues related to businesses exited or to be exited through reinsurance or divestment that do not qualify as discontinued operations, which includes revenues associated with transactions to exit blocks of business (including net investment gains (losses) on securities sold related to these transactions) and residual run-off activity (including insignificant number of Individual Life, Annuities and CBVA policies that were not part of the Individual Life and 2018 Transactions); these revenues are often related to infrequent events and do not reflect performance of operating segments. Excluding this activity better reveals trends in our core business, which would be obscured by including the effects of business exited or to be exited, and more closely aligns Operating revenues with how we manages our segments;


•	Revenues attributable to noncontrolling interest, which represents the interests of shareholders, other than those of Voya Financial, Inc., in consolidated entities. Revenues attributable to noncontrolling interest represents such shareholders' interests in the revenues of those entities, or the attribution of results from consolidated VIEs or VOEs to which we are not economically entitled; and


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

The most directly comparable U.S. GAAP measure to Adjusted operating revenues is Total revenues. For a reconciliation of Adjusted operating revenues to Total revenues, refer to the "Reconciliations" section in this document.

Sources of Earnings

We analyze our segment performance based on the sources of earnings. We believe this supplemental information is useful in order to gain a better understanding of our Adjusted operating earnings before income taxes for the following reasons: (1) we analyze our business using this information and (2) this presentation can be helpful for investors to understand the main drivers of Adjusted operating earnings (loss) before income taxes. The sources of earnings are defined as such:


•	Investment spread and other investment income consists of net investment income and net realized investment gains (losses) associated with swap settlements and accrued interest, less interest credited to policyholder reserves.


•	Fee based margin consists primarily of fees earned on assets under management ("AUM"), assets under administration and advisement ("AUA"), and transaction based recordkeeping fees.


•	Net underwriting gain (loss) and other revenue contains the following: the difference between fees charged for insurance risks and incurred benefits, including mortality, morbidity, surrender results, and contractual charges for annuity contracts.


•	Administrative expenses are general expenses, net of amounts capitalized as acquisition expenses and exclude commission expenses and fees on letters of credit.


•	Net commissions are commissions paid that are not deferred and thus recorded directly to expense.


•	For a detail explanation of DAC/VOBA and other intangibles amortization/unlocking see “Unlocking of DAC/VOBA and other Contract Owner/Policyholder Intangibles” in our SEC filings.

Other Information

Financial information, unless otherwise noted, is rounded to millions, therefore may not sum to its corresponding total.



Voya Financial		Page 6 of 45

Key Metrics



	Three Months Ended or As of										Year-to-Date or As of
(in millions USD, unless otherwise indicated)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018
Net income (loss) available to Voya Financial, Inc.'s common shareholders	(776	)	106		226		64		121		(379	)	875
Per common share (basic)	(5.76	)	0.77		1.57		0.44		0.78		(2.69	)	5.36
Per common share (diluted)	(5.45	)	0.74		1.51		0.42		0.76		(2.58	)	5.20
Adjusted operating earnings: ⁽¹⁾
Before income taxes	178		122		190		101		159		591		651
After income taxes	153		114		159		89		146		514		560
Effective tax rate	14.2	%	7.5	%	16.2	%	12.0	%	8.0	%	13.0	%	13.9	%
Per common share (diluted)	1.07		0.79		1.06		0.59		0.92		3.50		3.33
Normalized adjusted operating earnings: ⁽¹⁾
Before income taxes	199		179		190		155		191		724		701
After income taxes	170		159		159		132		172		619		600
Effective tax rate	14.9	%	11.7	%	16.2	%	15.2	%	10.2	%	14.5	%	14.4	%
Per common share (diluted)	1.19		1.10		1.06		0.87		1.09		4.22		3.56
Shareholder's equity:
Total Voya Financial, Inc. Common Shareholders' Equity	8,796		9,939		9,452		8,746		7,894		8,796		7,894
Total Voya Financial, Inc. Common Shareholders' Equity - Excluding AOCI⁽¹⁾	5,465		6,442		6,585		6,780		7,287		5,465		7,287
Deferred Tax Asset ("DTA") ⁽²⁾	1,823		1,829		1,952		1,985		1,925		1,823		1,925
Total Voya Financial, Inc. Common Shareholders' Equity - Excluding AOCI & DTA ⁽²⁾	3,642		4,613		4,633		4,795		5,362		3,642		5,362
Book value per common share (including AOCI)	66.49		73.73		67.37		59.13		52.28		66.49		52.28
Book value per common share (excluding AOCI) ⁽¹⁾	41.31		47.79		46.94		45.84		48.26		41.31		48.26
Debt to Capital:
Debt to Capital	24.4	%	22.4	%	23.8	%	25.7	%	27.6	%	24.4	%	27.6	%
Adjusted Debt to Capital ⁽¹⁾	30.4	%	27.4	%	27.7	%	28.0	%	26.6	%	30.4	%	26.6	%
Shares:
Weighted-average common shares outstanding
Basic	135		138		144		147		154		141		163
Diluted	142		144		150		151		158		147		168
Adjusted Diluted ⁽¹⁾	142		144		150		151		158		147		168
Ending shares outstanding	132		135		140		148		151		132		151
Returned to Common Shareholders:
Repurchase of common shares, excluding commissions	160		290		446		200		275		1,096		1,125
Dividends to common shareholders	21		20		2		1		1		44		6
Total cash returned to common shareholders	181		310		448		201		276		1,140		1,131

⁽¹⁾ This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 35 of this document.
⁽²⁾ DTA primarily related to Federal Net Operating Loss Carry Forwards (“Federal NOLs”), net of $194 million tax valuation allowance for the period ended December 31, 2019 and $445 million for all prior periods presented. December 31st 2019 has been adjusted for the expected utilization of Federal NOLs related to the Individual Life Transaction.



Voya Financial		Page 7 of 45

Normalized Adjusted Operating Earnings by Segment



	Three Months Ended										Year-to-Date
(in millions USD, unless otherwise indicated)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018
Normalized adjusted operating earnings
Retirement	151		141		153		141		172		586		655
Investment Management	61		45		39		41		44		186		183
Employee Benefits	53		56		47		40		43		196		156
Corporate	(65	)	(64	)	(49	)	(66	)	(67	)	(244	)	(293	)
Before income taxes	199		179		190		155		191		724		701
After income taxes	170		159		159		132		172		619		600
Effective tax rate	14.9	%	11.7	%	16.2	%	15.2	%	10.2	%	14.5	%	14.4	%
Per common share (diluted)	1.19		1.10		1.06		0.87		1.09		4.22		3.56
Prepayment fees and alternative investment income above (below) long-term expectations ⁽¹⁾
Retirement	21		5		22		(16	)	11		32		47
Investment Management	(2	)	—		2		(7	)	—		(7	)	7
Employee Benefits	2		1		2		(2	)	1		3		5
Before income taxes	21		6		26		(25	)	12		28		59
After income taxes	17		5		21		(20	)	9		22		47
Effective tax rate	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
Per common share (diluted)	0.12		0.03		0.14		(0.13	)	0.06		0.15		0.28
DAC/VOBA and other intangibles unlocking and other adjustments ⁽²⁾
Retirement	(10	)	(29	)	5		4		(13	)	(30	)	(1	)
Investment Management ⁽²⁾	—		—		—		—		—		—		15
Employee Benefits	—		—		—		—		(1	)	—		(1	)
Before income taxes	(10	)	(29	)	5		4		(14	)	(30	)	13
After income taxes	(8	)	(23	)	4		3		(11	)	(24	)	10
Effective tax rate	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
Per common share (diluted)	(0.06	)	(0.16	)	0.02		0.02		(0.07	)	(0.16	)	0.06
Individual Life transaction stranded costs⁽³⁾
Before income taxes	(33	)	(34	)	(31	)	(34	)	(31	)	(132	)	(122	)
After income taxes	(26	)	(27	)	(25	)	(27	)	(24	)	(104	)	(97	)
Effective tax rate	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
Per common share (diluted)	(0.18	)	(0.18	)	(0.16	)	(0.18	)	(0.15	)	(0.71	)	(0.57	)
Adjusted operating earnings
Retirement	162		117		180		129		170		588		701
Investment Management	59		46		41		34		44		180		205
Employee Benefits	55		57		49		38		43		199		160
Corporate	(98	)	(98	)	(80	)	(100	)	(98	)	(376	)	(415	)
Before income taxes	178		122		190		101		159		591		651
After income taxes	153		114		159		89		146		514		560
Effective tax rate	14.2	%	7.5	%	16.2	%	12.0	%	8.0	%	13.0	%	13.9	%
Per common share (diluted)	1.07		0.79		1.06		0.59		0.92		3.50		3.33

⁽¹⁾ The amount by which Investment income from prepayment fees and alternative investments exceeds or is less than our long-term expectations reported on a pre-DAC basis.
⁽²⁾For periods ended on or prior to June 30, 2018, Investment Management adjusted operating earnings related to our fixed and variable annuities businesses which we sold in the 2018 Transaction.
⁽³⁾ For periods ended on or prior to the closing of the Individual Life Transaction, Stranded Costs associated with the Individual Life Transaction where the corresponding revenue is now reported in discontinued operations or in businesses exited or to be exited through reinsurance or divestment; for periods after the closing of the Individual Life Transaction any remaining Stranded Costs and the associated revenues from future TSAs will be reported in normalized adjusted operating earnings.



Voya Financial		Page 8 of 45

Normalized Effective Tax Rate



	Three Months Ended										Year-to-Date
(in millions USD, unless otherwise indicated)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018
Normalized adjusted operating earnings
Before income taxes	199		179		190		155		191		724		701
Income taxes
Federal income taxes at 21% corporate rate	42		38		40		33		40		152		147
Tax adjustments ⁽¹⁾	(12	)	(17	)	(9	)	(9	)	(21	)	(47	)	(46	)
Total taxes	30		21		31		24		19		105		101
Effective tax rate ⁽²⁾	14.9	%	11.7	%	16.2	%	15.2	%	10.2	%	14.5	%	14.4	%

Prepayment fees and alternative investment income above (below) long-term expectations ⁽³⁾
Before income taxes	21		6		26		(25	)	12		28		59
Income taxes
Federal income taxes at 21% corporate rate	4		1		5		(5	)	3		6		12
Total taxes	4		1		5		(5	)	3		6		12
Effective tax rate ⁽²⁾	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%

DAC/VOBA and other intangibles unlocking and other adjustments ⁽⁴⁾
Before income taxes	(10	)	(29	)	5		4		(14	)	(30	)	13
Income taxes
Federal income taxes at 21% corporate rate	(2	)	(6	)	1		1		(3	)	(6	)	3
Total taxes	(2	)	(6	)	1		1		(3	)	(6	)	3
Effective tax rate ⁽²⁾	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%

Individual Life transaction stranded costs ⁽⁵⁾
Before income taxes	(33	)	(34	)	(31	)	(34	)	(31	)	(132	)	(122	)
Income taxes
Federal income taxes at 21% corporate rate	(7	)	(7	)	(7	)	(7	)	(6	)	(28	)	(26	)
Total taxes	(7	)	(7	)	(7	)	(7	)	(6	)	(28	)	(26	)
Effective tax rate ⁽²⁾	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%

Adjusted operating earnings
Before income taxes	178		122		190		101		159		591		651
Income taxes
Federal income taxes at 21% corporate rate	37		26		40		21		33		124		137
Tax adjustments ⁽¹⁾	(12	)	(17	)	(9	)	(9	)	(21	)	(47	)	(46	)
Total taxes	25		9		31		12		13		77		90
Effective tax rate ⁽²⁾	14.2	%	7.5	%	16.2	%	12.0	%	8.0	%	13.0	%	13.9	%

⁽¹⁾ Includes tax adjustments for the dividends received deduction (DRD) related to certain qualified dividends that are not subject to federal income taxes and tax credits, less certain expense items that are not deductible for federal income taxes such as preferred stock dividends, certain compensation expenses, etc.
⁽²⁾ Normalized effective tax rate calculations are based on un-rounded numbers.
⁽³⁾ The amount by which Investment income from prepayment fees and alternative investments exceeds or is less than our long-term expectations reported on a pre-DAC basis.
⁽⁴⁾For periods ended on or prior to June 30, 2018, Investment Management adjusted operating earnings related to our fixed and variable annuities businesses which we sold in the 2018 Transaction.
⁽⁵⁾ For periods ended on or prior to the closing of the Individual Life Transaction, Stranded Costs associated with the Individual Life Transaction where the corresponding revenue is now reported in discontinued operations or in businesses exited or to be exited through reinsurance or divestment; for periods after the closing of the Individual Life Transaction any remaining Stranded Costs and the associated revenues from future TSAs will be reported in normalized adjusted operating earnings.



Voya Financial		Page 9 of 45

Consolidated Statements of Operations



	Three Months Ended										Year-to-Date
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018

Revenues
Net investment income	735		687		711		659		659		2,792		2,669
Fee income	510		494		483		482		489		1,969		1,982
Premiums	556		565		577		575		531		2,273		2,132
Net realized capital gains (losses)	(159	)	(20	)	25		(12	)	(41	)	(166	)	(355	)
Other revenues	140		106		106		113		120		465		443
Income (loss) related to consolidated investment entities	28		43		67		5		93		143		292
Total revenues	1,810		1,875		1,969		1,822		1,851		7,476		7,163

Benefits and expenses
Interest credited and other benefits to contract owners/policyholders	(862	)	(1,003	)	(951	)	(934	)	(877	)	(3,750	)	(3,526	)
Operating expenses	(767	)	(627	)	(670	)	(682	)	(669	)	(2,746	)	(2,606	)
Net amortization of DAC/VOBA	(63	)	(36	)	(43	)	(57	)	(85	)	(199	)	(233	)
Interest expense	(41	)	(51	)	(42	)	(42	)	(79	)	(176	)	(221	)
Operating expenses related to consolidated investment entities	(11	)	(9	)	(20	)	(5	)	(14	)	(45	)	(49	)
Total benefits and expenses	(1,744	)	(1,726	)	(1,726	)	(1,720	)	(1,724	)	(6,916	)	(6,635	)
Income (loss) from continuing operations before income taxes	66		149		243		102		127		560		528
Less:
Net investment gains (losses) and related charges and adjustments	(47	)	14		45		13		(24	)	25		(124	)
Net guaranteed benefit hedging gains (losses) and related charges and adjustments	8		(12	)	(6	)	(4	)	53		(14	)	62
Income (loss) related to businesses exited or to be exited through reinsurance or divestment	18		31		40		9		(7	)	98		(40	)
Income (loss) attributable to noncontrolling interests	6		19		26		(1	)	57		50		145
Income (loss) on early extinguishment of debt	—		(12	)	—		—		(37	)	(12	)	(40	)
Immediate recognition of net actuarial gains (losses) related to pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments	(63	)	—		—		66		(47	)	3		(47	)
Dividend payments made to preferred shareholders	4		14		—		10		—		28		—
Other adjustments	(38	)	(27	)	(52	)	(92	)	(27	)	(209	)	(79	)
Adjusted operating earnings before income taxes ⁽¹⁾	178		122		190		101		159		591		651

⁽¹⁾ This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 35 of this document.



Voya Financial		Page 10 of 45

Consolidated Adjusted Operating Earnings Before Income Taxes



	Three Months Ended										Year-to-Date
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018
Consolidated Adjusted Operating Earnings Before Income Taxes
Adjusted operating revenues
Net investment income and net realized gains (losses)	498		479		502		452		490		1,931		1,957
Fee income	396		392		379		360		375		1,527		1,548
Premiums	459		460		476		469		427		1,864		1,682
Other revenue	68		34		38		48		46		188		163
Adjusted operating revenues⁽¹⁾	1,421		1,365		1,395		1,329		1,338		5,510		5,350

Adjusted operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders	(591	)	(592	)	(609	)	(602	)	(582	)	(2,394	)	(2,305	)
Operating expenses	(564	)	(535	)	(525	)	(547	)	(514	)	(2,171	)	(2,082	)
Net amortization of DAC/VOBA	(40	)	(57	)	(27	)	(24	)	(41	)	(148	)	(128	)
Interest expense ⁽²⁾	(48	)	(59	)	(44	)	(55	)	(42	)	(206	)	(184	)
Adjusted operating benefits and expenses	(1,243	)	(1,243	)	(1,205	)	(1,228	)	(1,179	)	(4,919	)	(4,699	)
Adjusted operating earnings before income taxes ⁽¹⁾	178		122		190		101		159		591		651



Adjusted Operating Revenues and Adjusted Operating Earnings by Segment
Adjusted operating revenues
Retirement	701		675		688		648		690		2,712		2,727
Investment Management	197		167		163		148		159		675		683
Employee Benefits	500		503		515		508		467		2,026		1,849
Corporate	23		20		29		25		22		97		91
Adjusted operating revenues⁽¹⁾	1,421		1,365		1,395		1,329		1,338		5,510		5,350

Adjusted operating earnings
Retirement	162		117		180		129		170		588		701
Investment Management	59		46		41		34		44		180		205
Employee Benefits	55		57		49		38		43		199		160
Corporate	(98	)	(98	)	(80	)	(100	)	(98	)	(376	)	(415	)
Adjusted operating earnings before income taxes ⁽¹⁾	178		122		190		101		159		591		651

⁽¹⁾ This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 35 of this document.
⁽²⁾ Includes dividend payments made to preferred shareholders.



Voya Financial		Page 11 of 45

Adjusted Operating Earnings by Segment



	Three Months Ended December 31, 2019
(in millions USD)	Retirement		Investment Management		Employee Benefits		Corporate		Consolidated

Adjusted operating revenues
Net investment income and net realized gains (losses)	449		3		30		16		498
Fee income	224		156		16		—		396
Premiums	1		—		457		1		459
Other revenue	27		38		(3	)	6		68
Adjusted operating revenues ⁽¹⁾	701		197		500		23		1,421

Adjusted operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders	(239	)	—		(340	)	(12	)	(591	)
Operating expenses	(263	)	(138	)	(102	)	(61	)	(564	)
Net amortization of DAC/VOBA	(37	)	—		(3	)	—		(40	)
Interest expense ⁽²⁾	—		—		—		(48	)	(48	)
Adjusted operating benefits and expenses	(539	)	(138	)	(445	)	(121	)	(1,243	)
Adjusted operating earnings before income taxes ⁽¹⁾	162		59		55		(98	)	178


	Three Months Ended December 31, 2018
	Retirement		Investment Management		Employee Benefits		Corporate		Consolidated
Adjusted operating revenues
Net investment income and net realized gains (losses)	448		5		28		9		490
Fee income	207		152		16		—		375
Premiums	1		—		425		1		427
Other revenue	34		2		(2	)	12		46
Adjusted operating revenues ⁽¹⁾	690		159		467		22		1,338

Adjusted operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders	(240	)	—		(333	)	(9	)	(582	)
Operating expenses	(241	)	(115	)	(89	)	(69	)	(514	)
Net amortization of DAC/VOBA	(39	)	—		(2	)	—		(41	)
Interest expense ⁽²⁾	—		—		—		(42	)	(42	)
Adjusted operating benefits and expenses	(520	)	(115	)	(424	)	(120	)	(1,179	)
Adjusted operating earnings before income taxes ⁽¹⁾	170		44		43		(98	)	159

⁽¹⁾This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 35 of this document.
⁽²⁾Includes dividend payments made to preferred shareholders.



Voya Financial		Page 12 of 45

Adjusted Operating Earnings by Segment



	Twelve Months Ended December 31, 2019
(in millions USD)	Retirement		Investment Management		Employee Benefits		Corporate		Consolidated

Adjusted operating revenues
Net investment income and net realized gains (losses)	1,750		13		114		54		1,931
Fee income	852		611		64		—		1,527
Premiums	5		—		1,856		3		1,864
Other revenue	105		51		(8	)	40		188
Adjusted operating revenues ⁽¹⁾	2,712		675		2,026		97		5,510

Adjusted operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders	(946	)	—		(1,406	)	(42	)	(2,394	)
Operating expenses	(1,046	)	(495	)	(405	)	(225	)	(2,171	)
Net amortization of DAC/VOBA	(132	)	—		(16	)	—		(148	)
Interest expense ⁽²⁾	—		—		—		(206	)	(206	)
Adjusted operating benefits and expenses	(2,124	)	(495	)	(1,827	)	(473	)	(4,919	)
Adjusted operating earnings before income taxes ⁽¹⁾	588		180		199		(376	)	591


	Twelve Months Ended December 31, 2018
	Retirement		Investment Management		Employee Benefits		Corporate		Consolidated
Adjusted operating revenues
Net investment income and net realized gains (losses)	1,758		29		114		56		1,957
Fee income	844		635		69		—		1,548
Premiums	7		—		1,672		3		1,682
Other revenue	118		19		(6	)	32		163
Adjusted operating revenues ⁽¹⁾	2,727		683		1,849		91		5,350

Adjusted operating benefits and expenses
Interest credited and other benefits to contract owners/policyholders	(956	)	—		(1,317	)	(32	)	(2,305	)
Operating expenses	(959	)	(478	)	(355	)	(290	)	(2,082	)
Net amortization of DAC/VOBA	(111	)	—		(17	)	—		(128	)
Interest expense ⁽²⁾	—		—		—		(184	)	(184	)
Adjusted operating benefits and expenses	(2,026	)	(478	)	(1,689	)	(506	)	(4,699	)
Adjusted operating earnings before income taxes ⁽¹⁾	701		205		160		(415	)	651

⁽¹⁾This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 35 of this document.
⁽²⁾ Includes dividend payments made to preferred shareholders.



Voya Financial		Page 13 of 45

Consolidated Balance Sheets



	Balances as of
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018
Assets
Total investments	53,687		54,159		52,957		51,997		50,615
Cash and cash equivalents	1,181		1,155		1,178		806		1,237
Assets held in separate accounts	81,670		78,714		78,475		76,223		69,931
Premium receivable and reinsurance recoverable	3,732		3,871		3,745		3,782		3,843
Short term investments under securities loan agreement and accrued investment income	1,900		2,114		2,118		2,138		1,822
Deferred policy acquisition costs, Value of business acquired	2,226		2,198		2,418		2,609		2,973
Current and deferred income taxes ⁽¹⁾	1,458		1,029		1,162		1,382		1,627
Other assets ⁽²⁾	902		1,120		1,132		1,053		1,027
Assets related to consolidated investment entities	2,226		2,189		2,011		2,301		2,310
Assets held for sale	20,069		21,076		20,728		20,425		20,045
Total Assets	169,051		167,625		165,924		162,716		155,430
Liabilities
Future policy benefits and contract owner account balances	50,868		51,131		50,537		50,515		50,770
Liabilities related to separate accounts	81,670		78,714		78,476		76,223		69,931
Payables under securities loan agreements, including collateral held	1,373		1,499		1,480		1,540		1,366
Short-term debt	1		1		97		1		1
Long-term debt	3,042		3,041		3,041		3,136		3,136
Other liabilities ⁽³⁾	2,243		2,360		2,278		2,067		2,090
Liabilities related to consolidated investment entities	1,126		1,212		994		1,200		1,228
Liabilities held for sale	18,498		18,401		18,222		18,164		17,903
Total Liabilities	158,821		156,359		155,125		152,846		146,425
Shareholders' Equity
Preferred stock	—		—		—		—		—
Common stock	2		3		3		3		3
Treasury stock	(460	)	(5,955	)	(5,663	)	(5,203	)	(4,981	)
Additional paid-in capital	11,184		24,671		24,642		24,310		24,316
Retained earnings (deficit)	(4,649	)	(11,665	)	(11,785	)	(12,011	)	(11,732	)
Total Voya Financial, Inc. Shareholders' Equity - Excluding AOCI	6,077		7,054		7,197		7,099		7,606
Accumulated other comprehensive income	3,331		3,497		2,867		1,966		607
Total Voya Financial, Inc. Shareholders' Equity	9,408		10,551		10,064		9,065		8,213
Noncontrolling interest	822		715		735		805		792
Total Shareholders' Equity	10,230		11,266		10,799		9,870		9,005
Total Liabilities and Shareholders' Equity	169,051		167,625		165,924		162,716		155,430

⁽¹⁾ Current and deferred income taxes:
Deferred Tax Asset primarily related to Federal NOL's	2,017		2,274		2,397		2,431		2,370
Tax valuation allowance related to Federal NOL's	(194	)	(445	)	(445	)	(446	)	(445	)
Deferred Tax Asset (Liability) related to Unrealized Capital Gains and Losses	(789	)	(833	)	(666	)	(426	)	(156	)
Other Net Deferred Tax Asset (Liability) related to DAC, reserves, and other temporary differences	424		33		(124	)	(177	)	(142	)
Total Current and deferred income taxes	1,458		1,029		1,162		1,382		1,627
Gross Unrealized Gains (losses) reflected in AOCI	3,759		3,968		3,170		2,028		743
21% Tax Effect	(789	)	(833	)	(666	)	(426	)	(156	)
⁽²⁾ Includes Other assets, Sales inducements to contract holders, Goodwill and other intangible assets.
⁽³⁾ Includes Other liabilities, Derivatives, Pension and other postretirement provisions, Funds held under reinsurance agreements, and Current income taxes.



Voya Financial		Page 14 of 45

DAC/VOBA Segment Trends



	Three Months Ended										Year-to-Date
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018
Retirement
Balance as of Beginning-of-Period	632		834		1,029		1,271		1,251		1,271		882
Deferrals of commissions and expenses	18		5		18		17		19		58		73
Amortization	(22	)	(41	)	(26	)	(33	)	(23	)	(122	)	(81	)
Unlocking ⁽¹⁾	(13	)	(4	)	18		25		(19	)	26		(36	)
Change in unrealized capital gains/losses	52		(162	)	(205	)	(251	)	43		(566	)	433
Balance as of End-of-Period	667		632		834		1,029		1,271		667		1,271
Deferred Sales Inducements as of End-of-Period ⁽²⁾	29		29		31		32		34		29		34
Other ⁽³⁾
Balance as of Beginning-of-Period	113		116		103		106		102		106		85
Deferrals of commissions and expenses	11		11		21		7		8		50		28
Amortization	(3	)	(4	)	(5	)	(4	)	(2	)	(16	)	(17	)
Unlocking	—		—		—		—		—		—		—
Change in unrealized capital gains/losses	(3	)	(10	)	(3	)	(6	)	(2	)	(22	)	10
Balance as of End-of-Period	118		113		116		103		106		118		106
Total
Balance as of Beginning-of-Period	745		950		1,132		1,377		1,353		1,377		967
Deferrals of commissions and expenses	29		16		39		24		27		108		101
Amortization	(25	)	(45	)	(31	)	(37	)	(25	)	(138	)	(98	)
Unlocking	(13	)	(4	)	18		25		(19	)	26		(36	)
Change in unrealized capital gains/losses	49		(172	)	(208	)	(257	)	41		(588	)	443
Balance as of End-of-Period, excluding businesses to be exited through reinsurance or divestment	785		745		950		1,132		1,377		785		1,377
Balance as of End-of-Period, businesses to be exited through reinsurance or divestment ⁽⁴⁾	1,441		1,453		1,468		1,477		1,596		1,441		1,596
Balance as of End-of-Period, including businesses to be exited through reinsurance or divestment	2,226		2,198		2,418		2,609		2,973		2,226		2,973

⁽¹⁾During 2019, our annual review of the assumptions didn't have an impact on the GMIR initiatives. During 2018, the result of our annual review of the assumptions related to the GMIR initiatives was $9 million unfavorable unlocking of DAC / VOBA.
⁽²⁾ Deferred sales inducements in other segments are insignificant.
⁽³⁾ Includes Employee Benefits, Investment Management and Corporate.
⁽⁴⁾ Represents amounts related to the Individual Life transaction.



Voya Financial		Page 15 of 45

Consolidated Capital Structure



	Balances as of
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018

Financial Debt
Senior bonds	1,941		1,941		2,037		2,035		2,035
Subordinated bonds	1,098		1,097		1,097		1,097		1,097
Other debt	4		4		4		5		5
Total Debt	3,043		3,042		3,138		3,137		3,137

Equity
Preferred equity (Excluding AOCI)⁽¹⁾	612		612		612		319		319
Common equity (Excluding AOCI)	5,465		6,442		6,585		6,780		7,287
Total Equity (Excluding AOCI)⁽²⁾	6,077		7,054		7,197		7,099		7,606
Accumulated other comprehensive income (AOCI)	3,331		3,497		2,867		1,966		607
Total Voya Financial, Inc. Shareholders' Equity	9,408		10,551		10,064		9,065		8,213

Capital
Total Capitalization	12,451		13,593		13,202		12,202		11,350
Total Capitalization (Excluding AOCI) ⁽²⁾	9,120		10,096		10,335		10,236		10,743

Debt to Capital
Debt to Capital	24.4	%	22.4	%	23.8	%	25.7	%	27.6	%
Adjusted Debt to Capital ^{(2) (3)}	30.4	%	27.4	%	27.7	%	28.0	%	26.6	%

⁽¹⁾ Includes Preferred stock par value and additional paid-in-capital.
⁽²⁾This measure is a Non-GAAP financial measure. For an explanation of our use of Non-GAAP financial measures, refer the “Explanatory Note on Non-GAAP Financial Information” beginning on page 3 of this document. For a reconciliation of this item to the most directly comparable GAAP measure, refer to the “Reconciliations” section beginning on page 35 of this document.
⁽³⁾ Includes 25% equity treatment afforded to subordinated debt, 100% equity treatment afforded to preferred stock and excludes AOCI.



Voya Financial		Page 16 of 45

Consolidated Assets Under Management, Assets Under Administration and Advisement



As of December 31, 2019
(in millions USD)	General Account		Separate Account ⁽³⁾		Institutional/Mutual Funds		Total AUM - Assets Under Management		AUA - Assets Under Administration & Advisement ⁽⁴⁾		Total AUM + AUA

Retirement ⁽¹⁾	32,932		77,748		54,067		164,747		275,296		440,043
Investment Management	56,651		27,471		139,351		223,473		49,257		272,730
Employee Benefits	1,782		15		—		1,797		—		1,797
Eliminations/Other	(34,714	)	(22,079	)	(10,686	)	(67,479	)	(44,304	)	(111,783	)
Total AUM and AUA ⁽²⁾	56,651		83,155		182,732		322,538		280,249		602,787

⁽¹⁾ Includes wrapped funds as well as unwrapped Voya-managed funds.
⁽²⁾ Includes AUM balances related to Individual Life, Annuities and Variable Annuities businesses held for sale, for which a substantial portion of the assets will continue to be managed by the Investment Management segment.
⁽³⁾ Includes separate account balances related to Individual Life, Annuities and Variable Annuities businesses held for sale, which are reported as Assets held for sale on the balance sheet.
⁽⁴⁾ Starting Q1 2019, AUA includes Assets Under Advisement. Retirement Assets under Administration and Advisement includes Recordkeeping, Stable Value investment-only wrap, Brokerage and Investment Advisory assets. Investment Management Assets under Administration and Advisement includes Mutual Fund, General Account and Stable Value assets where only administrative or ancillary services are performed.

Retirement



Voya Financial		Page 18 of 45

Retirement Sources of Normalized Adjusted Operating Earnings and Key Metrics



	Three Months Ended or As of														Year-to-Date or As of
(in millions USD)	12/31/2019		9/30/2019			6/30/2019			3/31/2019			12/31/2018			12/31/2019		12/31/2018
Sources of operating earnings before income taxes:
Gross investment income (normalized)	391		396			393		—	398		—	400			1,578		1,578
Investment expenses	(20	)	(19	)		(18	)		(19	)		(17	)		(76	)	(71	)
Credited interest	(234	)	(234	)		(231	)		(229	)		(233	)		(928	)	(925	)
Net margin	137		143			144			150			150		150	574		582
Other investment income (normalized) ⁽¹⁾	46		45			40			48			48			179		180
Investment spread and other investment income (normalized)	183		188		198	184		191	198		198	198			753		762
Full service fee based revenue	140		137			133			124			127			534		528
Recordkeeping and Other fee based revenue	119		111			111			108			114			449		438
Total fee based margin	259		248			244			232			240			983		965
Net underwriting gain (loss) and other revenue	(2	)	(3	)		—			3			1			(2	)	(2	)
Administrative expenses	(206	)	(212	)		(194	)		(215	)		(190	)		(827	)	(748	)
Net Commissions	(55	)	(54	)		(53	)		(52	)		(50	)		(214	)	(207	)
DAC/VOBA and other intangibles amortization, excluding unlocking	(28	)	(26	)		(28	)		(25	)		(27	)		(107	)	(115	)
Normalized adjusted operating earnings before income taxes	151		141		141	153		176	141		141	172			586		655
Prepayment fees and alternative investment income above (below) long-term expectations	21		5			22			(16	)		11			32		47
DAC/VOBA and other intangibles unlocking ⁽²⁾	(10	)	(29	)		5			4			(13	)		(30	)	(1	)
Adjusted operating earnings before income taxes	162		117			180			129			170			588		701
Adjusted Return on Capital ⁽³⁾	13.2	%	13.2	%		13.9	%		13.6	%		14.1	%		13.2	%	14.1	%
Full Service Revenue⁽⁴⁾
Full Service Investment Spread and other investment income	194		182			194			170			197			740		761
Full Service Fee Based Revenue	140		137			133			124			127			534		528
Total Full Service Revenue	334		319			327			294			324			1,274		1,289

Client Assets
Spread Based	32,932		32,928			32,688			32,784			33,006			32,932		33,006
Fee Based	307,630		278,318			273,301			265,861			240,976			307,630		240,976
Retail Client Assets	63,108		60,221			60,089			58,244			53,515			63,108		53,515
Defined Contribution Investment-only Stable Value	36,373		36,343			35,678			34,967			34,078			36,373		34,078
Total Client Assets	440,043		407,810			401,756			391,856			361,575			440,043		361,575

⁽¹⁾ Includes investment income on assets backing surplus that has been allocated from Corporate and income from policy loans.
⁽²⁾During 2019, our annual review of the assumptions didn't have an impact on the GMIR initiatives. During 2018, the result of our annual review of the assumptions related to the GMIR initiatives was $9 million unfavorable unlocking of DAC / VOBA.
⁽³⁾ Adjusted Return on Capital calculated using trailing twelve months.
⁽⁴⁾ Excludes Net underwriting gain (loss) and other revenue.



Voya Financial		Page 19 of 45

Retirement Client Assets Rollforward by Product Group



	Three Months Ended										Year-to-Date
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018
Full service - Corporate markets
Client Assets, beginning of period	68,892		67,748		65,366		58,705		64,380		58,705		60,495
Transfers / Single deposits	1,310		1,338		828		1,352		1,679		4,828		4,658
Recurring deposits	1,596		1,653		1,639		1,850		1,372		6,738		5,996
Total Deposits	2,906		2,991		2,467		3,202		3,051		11,566		10,654
Surrenders, benefits, and product charges	(2,596	)	(2,112	)	(2,158	)	(2,309	)	(2,448	)	(9,175	)	(9,173	)
Net Flows	310		879		309		893		602		2,391		1,481
Interest credited and investment performance	4,295		265		2,073		5,768		(6,278	)	12,401		(3,271	)
Client Assets, end of period - Corporate markets	73,497		68,892		67,748		65,366		58,705		73,497		58,705

Full service - Tax-exempt markets
Client Assets, beginning of period	66,636		65,978		64,610		60,514		64,261		60,514		62,070
Transfers / Single deposits	552		927		477		399		1,286		2,355		2,300
Recurring deposits	892		882		879		953		801		3,606		3,347
Total Deposits	1,444		1,809		1,356		1,352		2,087		5,961		5,647
Surrenders, benefits, and product charges	(1,488	)	(1,416	)	(1,684	)	(1,660	)	(1,373	)	(6,248	)	(5,538	)
Net Flows	(43	)	393		(328	)	(309	)	713		(287	)	108
Interest credited and investment performance	3,231		265		1,696		4,405		(4,460	)	9,597		(1,664	)
Transfer between markets ⁽⁵⁾	285		—		—		—		—		285		—
Client Assets, end of period - Tax-exempt markets	70,109		66,636		65,978		64,610		60,514		70,109		60,514

Full Service - Total
Client Assets, beginning of period	135,528		133,726		129,976		119,219		128,641		119,219		122,565
Transfers / Single deposits	1,862		2,265		1,305		1,751		2,965		7,183		6,958
Recurring deposits	2,488		2,535		2,518		2,803		2,173		10,344		9,343
Total Deposits	4,350		4,800		3,823		4,554		5,138		17,527		16,301
Surrenders, benefits, and product charges	(4,084	)	(3,528	)	(3,842	)	(3,969	)	(3,821	)	(15,423	)	(14,711	)
Net Flows	267		1,272		(19	)	584		1,315		2,104		1,589
Interest credited and investment performance	7,526		530		3,769		10,173		(10,738	)	21,998		(4,935	)
Transfer between markets ⁽⁵⁾	285		—		—		—		—		285		—
Client Assets, end of period - Full Service Total	143,606		135,528		133,726		129,976		119,219		143,606		119,219

Full Service - Client Assets
Fee-based	112,477		104,422		102,883		99,083		88,139		112,477		88,139
Spread-based	31,129		31,106		30,842		30,893		31,080		31,129		31,080
Client Assets, end of period - Full Service Total	143,606		135,528		133,726		129,976		119,219		143,606		119,219



Voya Financial		Page 20 of 45

Retirement Client Assets Rollforward by Product Group



	Three Months Ended										Year-to-Date
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018
Recordkeeping
Client Assets, beginning of period	173,896		170,417		166,778		152,837		211,149		152,837		220,191
Transfers / Single deposits	24,806		4,086		602		999		1,552		30,493		4,360
Recurring deposits	3,219		3,148		3,126		3,835		3,250		13,328		14,377
Total Deposits	28,025		7,234		3,728		4,834		4,802		43,821		18,737
Surrenders, benefits, and product charges	(15,737	)	(4,476	)	(3,968	)	(5,165	)	(41,969	)	(29,346	)	(76,309	)
Net Flows	12,288		2,758		(240	)	(331	)	(37,167	)	14,475		(57,572	)
Interest credited and investment performance	9,255		721		3,879		14,272		(21,145	)	28,127		(9,782	)
Transfer between markets ⁽⁵⁾	(285	)	—		—		—		—		(285	)	—
Client Assets, end of period - Recordkeeping	195,154		173,896		170,417		166,778		152,837		195,154		152,837

Total Defined Contribution ⁽¹⁾
Client Assets, beginning of period	309,424		304,143		296,754		272,056		339,789		272,056		342,756
Transfers / Single deposits	26,667		6,351		1,907		2,750		4,517		37,675		11,319
Recurring deposits	5,707		5,684		5,644		6,637		5,423		23,672		23,720
Total Deposits	32,374		12,035		7,551		9,387		9,940		61,347		35,038
Surrenders, benefits, and product charges	(19,821	)	(8,005	)	(7,810	)	(9,134	)	(45,790	)	(44,770	)	(91,022	)
Net Flows	12,553		4,030		(259	)	253		(35,850	)	16,577		(55,984	)
Interest credited and investment performance	16,781		1,251		7,648		24,445		(31,883	)	50,125		(14,716	)
Client Assets, end of period - Total Defined Contribution	338,758		309,424		304,143		296,754		272,056		338,758		272,056

Defined Contribution Investment-only Stable Value (SV) ⁽²⁾
Assets, beginning of period	36,343		35,679		34,967		34,078		34,573		34,078		35,000
Transfers / Single deposits	1,150		368		342		861		348		2,721		2,532
Recurring deposits	168		133		186		118		208		605		679
Total Deposits	1,318		501		528		979		556		3,326		3,211
Surrenders, benefits, and product charges	(1,314	)	(620	)	(658	)	(765	)	(1,111	)	(3,357	)	(4,185	)
Net Flows	4		(119	)	(130	)	214		(555	)	(31	)	(975	)
Interest credited and investment performance	27		783		842		675		60		2,327		53
Assets, end of period - Defined Contribution Investment-only SV	36,374		36,343		35,679		34,967		34,078		36,374		34,078

Retail Client Assets ⁽³⁾	63,108		60,221		60,089		58,244		53,515		63,108		53,515

Other Assets ⁽⁴⁾	1,802		1,822		1,846		1,891		1,926		1,802		1,926

Total Client Assets	440,043		407,810		401,756		391,856		361,575		440,043		361,575

⁽¹⁾ Total of Full Service and Recordkeeping
⁽²⁾ Includes Stable Value Investment-only Wrap and Stable Value Separate Accounts.
⁽³⁾ Includes assets of our Retail Wealth Management business, as well as assets in a proprietary IRA mutual fund product that is distributed by both VFA (affiliated) and non-affiliated advisors.
⁽⁴⁾ Includes other guaranteed payout products.
⁽⁵⁾Transfer represents a plan moving from Recodkeeping to Full Service.

Investment Management



Voya Financial		Page 22 of 45

Investment Management Sources of Normalized Adjusted Operating Earnings



	Three Months Ended										Year-to-Date
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018

Sources of operating earnings before income taxes:
Investment capital and other investment income (normalized)	6		5		5		5		5		21		22
Fee based margin (normalized)	193		162		156		150		154		661		639
Administrative expenses	(138	)	(121	)	(122	)	(114	)	(115	)	(495	)	(478	)
Normalized adjusted operating earnings before income taxes	61		45		39		41		44		186		183
Prepayment fees and alternative investment income above (below) long-term expectations	(2	)	—		2		(7	)	—		(7	)	7
Earnings related to businesses sold in transaction closed on June 1, 2018	—		—		—		—		—		—		15
Adjusted operating earnings before income taxes	59		46		41		34		44		180		205

Fee based margin
Investment advisory and administrative revenue	156		158		152		145		152		611		635
Other fee based margin	37		4		4		5		2		50		19
Earnings related to businesses sold in transaction closed on June 1, 2018	—		—		—		—		—		—		(15	)
Fee based margin (normalized)	193		162		156		150		154		661		639



Voya Financial		Page 23 of 45

Investment Management Analysis of AUM and AUA



	Three Months Ended					Year-to-Date
(in millions USD)	12/31/2019	9/30/2019	6/30/2019	3/31/2019	12/31/2018	12/31/2019	12/31/2018
Client Assets:
External Clients
Institutional	94,424	92,912	91,116	88,147	85,918	94,424	85,918
Retail	72,398	68,014	67,189	65,512	61,257	72,398	61,257
Subtotal External Clients	166,822	160,926	158,305	153,660	147,176	166,822	147,176
General Account	56,651	56,336	55,921	56,021	56,288	56,651	56,288
Total Client Assets (AUM)	223,473	217,262	214,226	209,681	203,464	223,473	203,464
Administration Only Assets (AUA)	49,257	50,031	50,098	49,929	47,004	49,257	47,004
Total AUM and AUA	272,730	267,293	264,324	259,610	250,468	272,730	250,468


Investment Advisory and Administrative Revenues ⁽¹⁾
External Clients
Institutional	65	67	65	62	65	259	256
Retail	58	58	55	52	54	223	229
Subtotal External Clients	124	125	119	113	120	481	486
General Account	28	28	29	28	28	113	132
Total Investment Advisory and Administrative Revenues (AUM)	152	153	148	141	148	594	618
Administration Only Fees	4	5	4	4	4	17	17
Total Investment Advisory and Administrative Revenues	156	158	152	145	152	611	635


Revenue Yield (bps) ⁽¹⁾
External Clients
Institutional	27.8	29.0	29.1	28.5	30.3	28.6	32.1
Retail	33.5	34.4	33.1	32.2	33.9	33.3	33.5
Revenue Yield on External Clients	30.3	31.3	30.8	30.1	31.9	30.6	32.7
General Account	20.2	20.3	20.3	19.9	19.9	20.2	19.7
Revenue Yield on Client Assets (AUM)	27.7	28.4	28.0	27.3	28.6	27.9	28.7
Revenue Yield on Administration Only Assets (AUA)	3.4	3.6	3.3	3.0	3.5	3.4	3.6
Total Revenue Yield on AUM and AUA (bps)	23.2	23.7	23.3	22.7	23.9	23.2	24.0

Revenue Yield on Client Assets (AUM) - trailing twelve months	27.9	28.1	28.2	28.6	28.7	27.9	28.7

⁽¹⁾Investment Advisory and Administrative Revenues and resulting Revenue Yields exclude any performance fees.



Voya Financial		Page 24 of 45

Investment Management Account Rollforward by Source



	Three Months Ended										Year-to-Date
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018
Institutional AUM:
Beginning of period AUM	92,912		91,116		88,147		85,918		85,258		85,918		72,468
Inflows	3,233		2,478		3,219		3,335		4,278		12,265		12,041
Outflows	(2,860	)	(2,105	)	(2,230	)	(1,867	)	(2,699	)	(9,062	)	(7,831	)
Subtotal Investment Management Sourced Institutional Net Flows	373		373		989		1,468		1,579		3,203		4,208
Affiliate Sourced Institutional Inflows	610		426		545		1,269		587		2,850		2,226
Affiliate Sourced Institutional Outflows	(463	)	(467	)	(762	)	(1,632	)	(1,471	)	(3,324	)	(3,043	)
Subtotal Affiliate Sourced Net Flows	147		(41	)	(217	)	(363	)	(884	)	(474	)	(817	)
Net flows- Institutional AUM	520		332		772		1,105		694		2,729		3,391
Net Money Market Flows	—		—		—		—		—		—		—
Change in Market Value	1,028		1,196		2,201		1,124		(360	)	5,549		222
Other (Including Acquisitions / Divestitures) ⁽¹⁾	(36	)	268		(4	)	—		325		228		9,837
End of period AUM- Institutional	94,424		92,912		91,116		88,147		85,918		94,424		85,918
Organic Growth (Net Flows/Beginning of period AUM)	0.6	%	0.4	%	0.9	%	1.3	%	0.8	%	3.2	%	4.7	%
Market Growth %	1.1	%	1.3	%	2.5	%	1.3	%	-0.4	%	6.5	%	0.3	%
Retail AUM:
Beginning of period AUM	68,014		67,189		65,512		61,257		69,295		61,257		69,812
Inflows	2,204		2,153		1,717		1,924		1,777		7,998		6,408
Outflows	(1,665	)	(1,189	)	(1,874	)	(2,004	)	(2,142	)	(6,732	)	(6,100	)
Sub-advised Retail Net Flows	(130	)	(29	)	(139	)	(223	)	(382	)	(521	)	(1,524	)
Subtotal Investment Management Sourced Retail Net Flows ⁽²⁾	409		935		(296	)	(303	)	(747	)	745		(1,216	)
Affiliate Sourced Retail Inflows	627		669		547		684		579		2,527		2,186
Affiliate Sourced Retail Outflows	(882	)	(813	)	(831	)	(875	)	(952	)	(3,401	)	(3,494	)
Subtotal Affiliate Sourced Retail Net Flows ⁽²⁾	(255	)	(144	)	(284	)	(191	)	(373	)	(874	)	(1,308	)
Variable Annuity Net Flows	(839	)	(621	)	(616	)	(550	)	(578	)	(2,626	)	(2,519	)
Inflows from Sub-advisor Replacements	1,690		219		897		—		—		2,806		76
Net flows- Retail AUM	1,005		389		(299	)	(1,044	)	(1,699	)	51		(4,967	)
Net Money Market Flows	—		16		(27	)	(122	)	158		(133	)	45
Change in Market Value	3,490		691		2,100		5,690		(6,434	)	11,971		(3,302	)
Other (Including Acquisitions / Divestitures) ⁽¹⁾	(111	)	(271	)	(97	)	(269	)	(63	)	(748	)	(331	)
End of period AUM- Retail	72,398		68,014		67,189		65,512		61,257		72,398		61,257
Retail Organic Growth excluding Variable Annuity Net Flows and Sub-advisor Replacements (Net Flows / Beginning of period AUM)	0.2	%	1.2	%	-0.9	%	-0.8	%	-1.6	%	-0.2	%	-3.6	%
Market Growth %	5.1	%	1.0	%	3.2	%	9.3	%	-9.3	%	19.5	%	-4.7	%
Total Investment Management Sourced Net Flows ⁽²⁾	783		1,307		693		1,165		830		3,948		2,991
Total Affiliate Sourced Net Flows ⁽²⁾	(109	)	(184	)	(501	)	(554	)	(1,256	)	(1,348	)	(2,124	)
Total Variable Annuity Net Flows ⁽¹⁾	(839	)	(621	)	(616	)	(550	)	(578	)	(2,626	)	(2,519	)
Total Inflows from Sub-advisor Replacements ⁽³⁾	1,690		219		897		—		—		2,806		76
Total Net Flows	1,525		721		473		61		(1,004	)	2,780		(1,576	)
Net Flows excluding Variable Annuity Net Flows and Sub-advisor Replacements	674		1,123		192		611		(426	)	2,600		867
Total External Clients Organic Growth (Net Flows (excludes VA and Sub-advisor Replacement) / Beginning of period AUM)⁽²⁾	0.4	%	0.7	%	0.1	%	0.4	%	-0.3	%	1.8	%	0.6	%
⁽¹⁾ Includes Assets Under Management and Net Flows associated with the Variable Annuities business divested in June 2018.
⁽²⁾ Affiliate Sourced Net Flows include Retirement distribution of Voya Investment Management retail funds.
⁽³⁾ Reflects net flows mainly associated with outside managed funds.



Voya Financial		Page 25 of 45

Investment Management Account Value by Asset Type



	Balances as of
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018
Institutional
Equity	21,993		22,561		23,041		22,517		21,169
Fixed Income	72,431		70,351		68,075		65,630		64,061
Real Estate	—		—		—		—		—
Money Market	—		—		—		—		688
Total	94,424		92,912		91,116		88,147		85,918
Retail
Equity	44,567		41,149		41,621		40,591		37,107
Fixed Income	25,614		24,496		23,207		22,370		21,298
Real Estate	791		947		962		1,128		1,307
Money Market	1,426		1,422		1,399		1,424		1,545
Total	72,398		68,014		67,189		65,513		61,257
General Account
Equity	298		311		309		169		121
Fixed Income	55,126		54,962		54,417		54,917		55,108
Real Estate	—		—		—		—		—
Money Market	1,227		1,063		1,195		935		1,059
Total	56,651		56,336		55,921		56,021		56,288
Combined Asset Type
Equity	66,858		64,020		64,971		63,276		58,397
Fixed Income	153,171		149,810		145,699		142,918		140,468
Real Estate	791		947		962		1,128		1,307
Money Market	2,653		2,485		2,594		2,359		3,292
Total	223,473		217,262		214,226		209,681		203,464

Total Specialty Assets	69,827		68,330		67,631		67,260		66,423
% of Specialty Assets / Total AUM	31.2	%	31.5	%	31.6	%	32.1	%	32.6	%

Total Retirement and Wealth Management Assets	103,535		100,840		99,754		98,480		94,440
% of Retirement and Wealth Management Assets / Total AUM	46.3	%	46.4	%	46.6	%	47.0	%	46.4	%

Employee Benefits



Voya Financial		Page 27 of 45

Employee Benefits Sources of Normalized Adjusted Operating Earnings



	Three Months Ended										Year-to-Date
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018
Sources of operating earnings before income taxes:
Gross investment income (normalized)	23		23		23		23		23		92		94
Investment expenses	(1	)	—		(1	)	(1	)	(1	)	(3	)	(4	)
Credited interest	(14	)	(14	)	(14	)	(14	)	(14	)	(56	)	(56	)
Net margin	8		9		8		8		8		33		34
Other investment income (normalized)	5		6		5		6		5		22		18
Investment spread and other investment income (normalized)	13		15		13		14		13		55		52
Net underwriting gain (loss) and other revenue	145		147		140		132		120		564		468
Administrative expenses	(60	)	(63	)	(63	)	(62	)	(54	)	(248	)	(215	)
Net commissions	(42	)	(39	)	(38	)	(40	)	(34	)	(159	)	(139	)
DAC/VOBA and other intangibles amortization, excluding unlocking	(3	)	(4	)	(5	)	(4	)	(2	)	(16	)	(10	)
Normalized adjusted operating earnings before income taxes	53		56		47		40		43		196		156
Prepayment fees and alternative investment income above (below) long-term expectations	2		1		2		(2	)	1		3		5
DAC/VOBA and other intangibles unlocking	—		—		—		—		(1	)	—		(1	)
Adjusted operating earnings before income taxes	55		57		49		38		43		199		160
Adjusted Return on Capital ⁽¹⁾	31.0	%	29.8	%	29.4	%	28.0	%	28.2	%	31.0	%	28.2	%

Group life:
Premiums	132		133		131		130		125		526		497
Benefits	(95	)	(101	)	(97	)	(104	)	(98	)	(397	)	(395	)
Other ⁽²⁾	(4	)	(2	)	(2	)	(2	)	(2	)	(10	)	(8	)
Total Group life	33		30		32		24		25		119		94
Group Life Loss Ratio (Interest adjusted)	72.2	%	76.3	%	74.4	%	79.5	%	78.7	%	75.6	%	79.5	%
Group stop loss:
Premiums	250		250		255		254		236		1,009		927
Benefits	(193	)	(196	)	(205	)	(196	)	(183	)	(790	)	(733	)
Other ⁽²⁾	(1	)	(1	)	(1	)	(1	)	(1	)	(4	)	(4	)
Total Group stop loss	56		53		49		57		52		215		190
Stop loss Loss Ratio	77.2	%	78.6	%	80.6	%	77.3	%	77.5	%	78.4	%	79.1	%
Voluntary Benefits, Disability, and Other	56		65		59		51		43		231		183

Net underwriting gain (loss) and other revenue
Premiums	481		482		489		484		441		1,936		1,744
Benefits	(331	)	(331	)	(346	)	(349	)	(318	)	(1,357	)	(1,264	)
Other ⁽²⁾	(5	)	(3	)	(3	)	(3	)	(3	)	(14	)	(13	)
Total Net underwriting gain (loss) and other revenue	145		147		140		132		120		565		467
Total Aggregate Loss Ratio ⁽¹⁾	70.2	%	71.0	%	71.6	%	72.3	%	72.5	%	70.2	%	72.5	%

⁽¹⁾ Adjusted Return on Capital and Total Aggregate Loss Ratio are calculated using Trailing twelve months.
⁽²⁾ Includes service fees, dividends, interest expenses, and other miscellaneous expenses. The Loss Ratio calculation does not include Other.



Voya Financial		Page 28 of 45

Employee Benefits Key Metrics



	Three Months Ended or As of					Year-to-Date or As of
(in millions USD)	12/31/2019	9/30/2019	6/30/2019	3/31/2019	12/31/2018	12/31/2019	12/31/2018

Sales by Product Line:
Group life and Disability	9	7	13	104	15	133	99
Stop loss	12	25	9	236	25	282	255
Voluntary	8	6	31	69	10	114	94
Total sales by product line	29	38	53	409	50	529	448

Total gross premiums and deposits	511	515	532	521	473	2,079	1,872

Annualized In-force Premiums by Product Line:
Group life and Disability	710	715	715	720	659	710	659
Stop loss	1,038	1,037	1,045	1,053	969	1,038	969
Voluntary	390	392	392	390	311	390	311
Total annualized in-force premiums	2,138	2,144	2,152	2,163	1,939	2,138	1,939

Assets Under Management by Fund Group
General account	1,782	1,896	1,827	1,753	1,775	1,782	1,775
Separate account	15	15	15	14	13	15	13
Total AUM	1,797	1,911	1,842	1,767	1,788	1,797	1,788

Corporate



Voya Financial		Page 30 of 45

Corporate Adjusted Operating Earnings



	Three Months Ended										Year-to-Date
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018

Interest expense (excluding Preferred stock dividends)	(43	)	(45	)	(43	)	(45	)	(44	)	(176	)	(191	)
Preferred stock dividends	(4	)	(14	)	—		(10	)	—		(28	)	—
Amortization of intangibles	(9	)	(9	)	(8	)	(9	)	(9	)	(35	)	(36	)
Other	(9	)	4		2		(2	)	(14	)	(5	)	(66	)
Normalized adjusted operating earnings before income taxes	(65	)	(64	)	(49	)	(66	)	(67	)	(244	)	(293	)
Individual Life transaction stranded costs ⁽¹⁾	(33	)	(34	)	(31	)	(34	)	(31	)	(132	)	(122	)
Adjusted operating earnings before income taxes	(98	)	(98	)	(80	)	(100	)	(98	)	(376	)	(415	)

⁽¹⁾ For periods ended on or prior to the closing of the Individual Life Transaction, Stranded Costs associated with the Individual Life Transaction where the corresponding revenue is now reported in discontinued operations or in businesses exited or to be exited through reinsurance or divestment; for periods after the closing of the Individual Life Transaction any remaining Stranded Costs and the associated revenues from future TSAs will be reported in normalized adjusted operating earnings.

Investment Information



Voya Financial		Page 32 of 45

Portfolio Composition



	Balances as of
(in millions USD)	12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Composition of Investment Portfolio	Amount		% of Total		Amount		% of Total		Amount		% of Total		Amount		% of Total		Amount		% of Total
Fixed maturities, available for sale, at fair value, after consolidation	39,663		74.0	%	39,718		73.4	%	38,761		73.2	%	37,962		73.0	%	36,897		72.9	%
Fixed maturities, at fair value using the fair value option	2,707		5.0	%	2,676		4.9	%	2,535		4.8	%	2,357		4.5	%	2,233		4.4	%
Equity securities, available for sale, at fair value	196		0.4	%	335		0.6	%	331		0.6	%	320		0.7	%	247		0.5	%
Short-term investments	68		0.1	%	122		0.2	%	147		0.3	%	134		0.4	%	126		0.3	%
Mortgage loans on real estate	6,878		12.8	%	6,927		12.8	%	7,033		13.3	%	7,126		13.7	%	7,281		14.4	%
Policy loans	776		1.4	%	788		1.5	%	794		1.6	%	822		1.5	%	814		1.7	%
Limited partnerships/corporations, before consolidation	1,625		N/M		1,554		N/M		1,455		N/M		1,344		N/M		1,335		N/M
CLO/VOEs Adjustments ⁽¹⁾	(335	)	N/M		(312	)	N/M		(340	)	N/M		(359	)	N/M		(353	)	N/M
Limited partnerships/corporations, after consolidation	1,290		2.4	%	1,242		2.3	%	1,115		2.1	%	985		1.9	%	982		1.9	%
Derivatives	316		0.6	%	439		0.8	%	307		0.6	%	183		0.4	%	194		0.4	%
Other investments	385		0.7	%	383		0.7	%	384		0.6	%	379		0.7	%	379		0.7	%
Securities pledged to creditors	1,408		2.6	%	1,529		2.8	%	1,550		2.9	%	1,729		3.2	%	1,462		2.8	%
Total investments, after consolidation	53,687		100.0	%	54,159		100.0	%	52,957		100.0	%	51,997		100.0	%	50,615		100.0	%
Fixed Maturity Securities - Security Sector ⁽²⁾
U.S. Government agencies and authorities	1,477		3.4	%	1,538		3.5	%	1,345		3.2	%	1,405		3.3	%	1,497		3.7	%
U.S. Corporate - Public	14,938		34.0	%	15,157		34.5	%	14,952		34.9	%	14,939		35.5	%	14,876		36.7	%
U.S. Corporate - Private	6,035		13.8	%	6,000		13.6	%	5,864		13.7	%	5,797		13.8	%	5,491		13.5	%
Foreign Government / Agency	693		1.6	%	699		1.6	%	711		1.7	%	685		1.6	%	665		1.6	%
Foreign Corporate - Public	3,648		8.4	%	3,662		8.3	%	3,677		8.6	%	3,639		8.7	%	3,470		8.5	%
Foreign Corporate - Private	4,831		11.0	%	4,768		10.9	%	4,768		11.1	%	4,808		11.4	%	4,640		11.4	%
State, municipalities and political subdivisions	1,323		3.0	%	1,362		3.1	%	1,318		3.1	%	1,293		3.1	%	1,250		3.1	%
CMO-B	3,433		7.7	%	3,496		8.0	%	3,391		7.9	%	3,016		7.2	%	2,917		7.2	%
Agency	643		1.5	%	707		1.6	%	703		1.6	%	705		1.7	%	660		1.6	%
Non-Agency ⁽³⁾	1,164		2.7	%	1,105		2.5	%	962		2.2	%	893		2.1	%	757		1.9	%
Total Residential mortgage-backed securities	5,240		11.9	%	5,308		12.1	%	5,056		11.7	%	4,614		11.0	%	4,334		10.7	%
Commercial mortgage-backed securities	3,574		8.2	%	3,379		7.7	%	3,226		7.5	%	3,081		7.3	%	2,763		6.8	%
Other asset-backed securities ⁽³⁾	2,019		4.7	%	2,050		4.7	%	1,929		4.5	%	1,787		4.3	%	1,606		4.0	%
Total fixed maturities, including securities pledged⁽⁴⁾	43,778		100.0	%	43,923		100.0	%	42,846		100.0	%	42,048		100.0	%	40,592		100.0	%
Fixed Maturity Securities - Contractual Maturity Dates, Due to mature:
Due in one year or less	1,120		2.6	%	945		2.2	%	1,108		2.6	%	1,115		2.7	%	921		2.3	%
Due after one year through five years	5,638		12.9	%	5,975		13.6	%	5,947		13.9	%	6,178		14.7	%	6,660		16.4	%
Due after five years through ten years	8,667		19.8	%	8,434		19.2	%	8,842		20.6	%	8,753		20.8	%	8,695		21.4	%
Due after ten years	17,520		40.0	%	17,845		40.6	%	18,352		42.9	%	17,997		42.8	%	16,954		41.8	%
CMO-B	3,433		7.7	%	3,495		8.0	%	3,391		7.9	%	3,016		7.2	%	2,917		7.2	%
Mortgage-backed securities	5,381		12.4	%	5,191		11.8	%	4,891		11.4	%	4,679		11.1	%	4,180		10.3	%
Other asset-backed securities ⁽³⁾	2,019		4.6	%	2,038		4.6	%	315		0.7	%	310		0.7	%	265		0.6	%
Total fixed maturities, including securities pledged ⁽⁴⁾	43,778		100.0	%	43,923		100.0	%	42,846		100.0	%	42,048		100.0	%	40,592		100.0	%
Fixed Maturity Securities - NAIC Quality Designation
1	23,779		54.2	%	24,267		55.2	%	23,603		55.1	%	23,158		55.1	%	22,129		54.5	%
2	18,149		41.5	%	17,795		40.5	%	17,402		40.6	%	17,008		40.4	%	16,411		40.4	%
3	1,324		3.0	%	1,373		3.1	%	1,311		3.1	%	1,381		3.3	%	1,458		3.6	%
4	378		0.9	%	345		0.8	%	350		0.8	%	321		0.7	%	418		1.0	%
5	121		0.3	%	113		0.3	%	148		0.3	%	107		0.3	%	110		0.3	%
6	27		0.1	%	30		0.1	%	32		0.1	%	73		0.2	%	66		0.2	%
Total fixed maturities, including securities pledged ^{(4) (5)}	43,778		100.0	%	43,923		100.0	%	42,846		100.0	%	42,048		100.0	%	40,592		100.0	%
Fixed Maturity Securities - ARO Quality Rating
AAA	7,425		17.0	%	7,681		17.5	%	7,385		17.2	%	7,271		17.3	%	6,985		17.2	%
AA	3,199		7.3	%	3,131		7.1	%	2,964		7.0	%	2,864		6.8	%	2,765		6.8	%
A	11,803		27.0	%	11,896		27.1	%	11,754		27.4	%	11,802		28.1	%	11,060		27.3	%
BBB	18,763		42.8	%	18,672		42.5	%	18,138		42.3	%	17,428		41.4	%	16,883		41.6	%
BB	1,780		4.1	%	1,684		3.8	%	1,702		4.0	%	1,798		4.3	%	1,919		4.7	%
B and below	808		1.8	%	859		2.0	%	903		2.1	%	885		2.1	%	980		2.4	%
Total fixed maturities, including securities pledged ⁽⁵⁾	43,778		100.0	%	43,923		100.0	%	42,846		100.0	%	42,048		100.0	%	40,592		100.0	%
⁽¹⁾ Adjustments include the elimination of intercompany transactions between the Company and its consolidated investment entities, primarily the elimination of the Company's equity at risk recorded as investments by the Company (before consolidation) against either equity (private equity and real estate partnership funds) or senior and subordinated debt (CLOs) of the funds.
⁽²⁾ Fixed Maturity Securities includes fixed maturities,available for sale , fixed maturities at fair value using the fair value option and securities pledged to creditors.
⁽³⁾ Subprime asset-backed securities are included as a component of Non-Agency RMBS under this presentation.
⁽⁴⁾ Includes fixed maturities securities related to businesses exited through reinsurance where assets are retained on the Company's balance sheet.
⁽⁵⁾ ARO ratings do not directly translate into NAIC ratings.



Voya Financial		Page 33 of 45

Portfolio Results



	Three Months Ended																				Year-to-Date
(in millions USD)	12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018				12/31/2019				12/31/2018

Operating investment income and annualized yield ⁽¹⁾	Net Investment Income		Annualized Yield		Net Investment Income		Annualized Yield		Net Investment Income		Annualized Yield		Net Investment Income		Annualized Yield		Net Investment Income		Annualized Yield		Net Investment Income		Annualized Yield		Net Investment Income		Annualized Yield
Fixed maturity securities ⁽²⁾	463		4.94	%	466		5.02	%	473		5.06	%	473		5.01	%	480		5.14	%	1,875		5.10	%	1,876		5.05	%
Equity securities	3		7.15	%	2		5.58	%	2		5.64	%	1		4.21	%	2		7.36	%	8		4.52	%	11		6.09	%
Mortgage loans	72		4.30	%	73		4.31	%	74		4.33	%	75		4.34	%	79		4.40	%	294		4.35	%	316		4.37	%
Limited partnerships	51		13.58	%	42		11.67	%	60		18.38	%	(1	)	(0.21	)%	42		13.44	%	152		10.59	%	188		15.96	%
Policy loans	9		4.82	%	7		3.62	%	10		4.84	%	11		5.27	%	10		5.06	%	37		4.99	%	44		5.50	%
Short-term investments	3		0.85	%	5		1.05	%	4		0.71	%	4		0.74	%	4		0.75	%	16		0.76	%	19		0.94	%
Derivatives ⁽²⁾	2		N/A		1		N/A		(1	)	N/A		4		N/A		10		N/A		6		N/A		40		N/A
Prepayment fee income	29		0.24	%	9		0.07	%	16		0.13	%	9		0.07	%	13		0.10	%	63		0.09	%	42		0.08	%
Other assets	6		N/A		4		N/A		13		N/A		9		N/A		12		N/A		32		N/A		40		N/A
Gross investment income before expenses and fees	638		5.27	%	609		5.01	%	651		5.32	%	585		4.73	%	652		5.32	%	2,483		5.12	%	2,576		5.26	%
Expenses and fees	(33	)	-0.28	%	(28	)	-0.23	%	(26	)	-0.22	%	(26	)	-0.22	%	(28	)	-0.24	%	(113	)	-0.21	%	(114	)	-0.23	%
Total investment income and annualized yield	605		4.99	%	581		4.78	%	625		5.10	%	559		4.51	%	624		5.08	%	2,370		4.91	%	2,462		5.03	%
Trading gains/losses ⁽¹⁾
Fixed maturities	2				18				12				4				(23	)			36				(41	)
Equity securities	1				(2	)			(2	)			(2	)			3				(5	)			1
Mortgage loans	—				—				1				—				—				1				8
Other investments	3				1				—				1				5				5				7
Total trading gains/losses	6				17				11				3				(15	)			37				(25	)
Impairments ⁽¹⁾
Fixed maturities	(28	)			1				(3	)			(31	)			(8	)			(61	)			(29	)
Equity securities	—				—				—				—				—				—				—
Mortgage loans	(2	)			—				—				(2	)			—				(4	)			—
Other investments	—				—				—				—				—				—				—
Total impairments	(30	)			1				(3	)			(33	)			(8	)			(65	)			(29	)
Fair value adjustments ⁽³⁾	(84	)			53				135				93				90				197				(60	)
Derivatives, including change in fair value of derivatives related to guaranteed benefits	37				(51	)			(99	)			(69	)			(58	)			(182	)			15
Net realized investment gains (losses) and Net guaranteed benefit hedging gains (losses) ⁽¹⁾	(71	)			20				44				(6	)			9				(13	)			(99	)
Businesses exited through reinsurance ⁽⁴⁾	9				44				50				55				(5	)			158				(30	)
Consolidation/eliminations ⁽⁵⁾	33				22				17				39				(10	)			111				(19	)
Total investment income and realized capital gains (losses)	576				667				736				647				618				2,626				2,314

⁽¹⁾ Investment results related to businesses exited through reinsurance or divestment are excluded. Investment results related to businesses to be exited through reinsurance or divestment are included.
⁽²⁾ Operating income from CMO-B portfolio assets, including derivatives, is included in fixed maturity securities.
⁽³⁾ Fair value adjustments include adjustments related to CMO-B assets carried at fair value, among other income sources.
⁽⁴⁾ Income related to reinsurance transactions, in which investment results are passed directly to the reinsurers pursuant to contracted terms of the reinsurance agreement.
⁽⁵⁾ Includes i) the impact of consolidation of investment entities into the Consolidated Statements of Operations, net of the elimination of the Company's management fees expensed by the funds and recorded as operating revenues (before consolidation) by the Company, ii) the elimination of intersegment expenses, primarily consisting of asset-based management and administration fees charged by our Investment Management Segment, iii) and other intersegment eliminations.



Voya Financial		Page 34 of 45

Alternative Investment Income



	Three Months Ended						Year-to-Date
(in millions USD)	12/31/2019	9/30/2019	6/30/2019	3/31/2019		12/31/2018	12/31/2019	12/31/2018
Retirement
Average alternative investments	834	773	722	705		643	758	595
Alternative investment income	27	25	33	(1	)	23	84	99
Investment Management
Average alternative investments	229	226	228	208		204	223	232
Alternative investment income	3	5	7	(2	)	4	13	28
Employee Benefits
Average alternative investments	92	86	84	81		63	86	57
Alternative investment income	3	3	4	—		2	10	10

The table above excludes alternative investments and income that are a component of Income (loss) from discontinued operations, net of tax and alternative investments and income in Corporate.

Reconciliations



Voya Financial		Page 36 of 45

Reconciliation of Consolidated Statements of Operations



	Three Months Ended										Year-to-Date
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018

Revenues
Net investment income	735		687		711		659		659		2,792		2,669
Fee income	510		494		483		482		489		1,969		1,982
Premiums	556		565		577		575		531		2,273		2,132
Net realized capital gains (losses)	(159	)	(20	)	25		(12	)	(41	)	(166	)	(355	)
Other revenues	140		106		106		113		120		465		443
Income (loss) related to consolidated investment entities	28		43		67		5		93		143		292
Total revenues	1,810		1,875		1,969		1,822		1,851		7,476		7,163

Benefits and expenses
Interest credited and other benefits to contract owners/policyholders	(862	)	(1,003	)	(951	)	(934	)	(877	)	(3,750	)	(3,526	)
Operating expenses	(767	)	(627	)	(670	)	(682	)	(669	)	(2,746	)	(2,606	)
Net amortization of DAC/VOBA	(63	)	(36	)	(43	)	(57	)	(85	)	(199	)	(233	)
Interest expense	(41	)	(51	)	(42	)	(42	)	(79	)	(176	)	(221	)
Operating expenses related to consolidated investment entities	(11	)	(9	)	(20	)	(5	)	(14	)	(45	)	(49	)
Total benefits and expenses	(1,744	)	(1,726	)	(1,726	)	(1,720	)	(1,724	)	(6,916	)	(6,635	)
Income (loss) from continuing operations before income taxes	66		149		243		102		127		560		528
Less:
Net investment gains (losses) and related charges and adjustments	(47	)	14		45		13		(24	)	25		(124	)
Net guaranteed benefit hedging gains (losses) and related charges and adjustments	8		(12	)	(6	)	(4	)	53		(14	)	62
Income (loss) related to businesses exited or to be exited through reinsurance or divestment	18		31		40		9		(7	)	98		(40	)
Income (loss) attributable to noncontrolling interests	6		19		26		(1	)	57		50		145
Income (loss) on early extinguishment of debt	—		(12	)	—		—		(37	)	(12	)	(40	)
Immediate recognition of net actuarial gains (losses) related to pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments	(63	)	—		—		66		(47	)	3		(47	)
Dividend payments made to preferred shareholders	4		14		—		10		—		28		—
Other adjustments	(38	)	(27	)	(52	)	(92	)	(27	)	(209	)	(79	)
Adjusted operating earnings before income taxes	178		122		190		101		159		591		651



Voya Financial		Page 37 of 45

Reconciliation of Adjusted Operating Revenues



	Three Months Ended										Year-to-Date
(in millions USD)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018

Total revenues	1,810		1,875		1,969		1,822		1,851		7,476		7,163

Less Adjustments
Net realized investment gains (losses) and related charges and adjustments	(53	)	16		42		13		(28	)	18		(148	)
Gain (loss) on change in fair value of derivatives related to guaranteed benefits	8		(12	)	(5	)	(4	)	53		(13	)	63
Revenues (losses) related to business exited or to be exited through reinsurance or divestment	315		401		417		398		365		1,531		1,446
Revenues (loss) attributable to noncontrolling interests	21		34		50		4		70		109		214
Other adjustments ⁽¹⁾	98		71		70		82		53		321		238
Total adjusted operating revenues	1,421		1,365		1,395		1,329		1,338		5,510		5,350

Adjusted operating revenues by segment
Retirement	701		675		688		648		690		2,712		2,727
Investment Management	197		167		163		148		159		675		683
Employee Benefits	500		503		515		508		467		2,026		1,849
Corporate	23		20		29		25		22		97		91
Total adjusted operating revenues	1,421		1,365		1,395		1,329		1,338		5,510		5,350

⁽¹⁾ Includes 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 operating revenues.



Voya Financial		Page 38 of 45

Reconciliation of Adjusted Operating Earnings - excluding Unlocking; Adjusted Return on Capital ⁽¹⁾



	Twelve Months Ended ⁽¹⁾
(in millions USD, unless otherwise indicated)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018

Retirement
Adjusted operating earnings before income taxes	588		596		732		721		701
Less:
DAC/VOBA and other intangibles unlocking	(30	)	(33	)	46		44		(1	)
Adjusted Operating Earnings - excluding Unlocking before interest	618		629		686		677		702
Income tax expense	71		81		104		106		116
Adjusted Operating Earnings - excluding Unlocking before interest and after income taxes	547		549		582		571		586

Adjusted Operating effective tax rate, excluding Unlocking ⁽²⁾	12.5	%	7.8	%	14.0	%	11.1	%	16.7	%
Adjusted Operating effective tax rate, excluding Unlocking - Trailing Twelve Months	11.5	%	12.8	%	15.1	%	15.7	%	16.5	%
Average Capital	4,130		4,170		4,186		4,180		4,156
Ending Capital	4,119		4,065		4,123		4,126		4,289
Adjusted Return on Capital	13.2	%	13.2	%	13.9	%	13.6	%	14.1	%

Investment Management
Adjusted Operating Earnings - excluding Unlocking before interest	180		165		167		178		205
Income tax expense	38		35		35		37		43
Adjusted Operating Earnings - excluding Unlocking before interest and after income taxes	142		130		132		141		162

Adjusted Operating effective tax rate, excluding Unlocking ⁽²⁾	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
Adjusted Operating effective tax rate, excluding Unlocking - Trailing Twelve Months	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
Average Capital	307		303		302		304		305
Ending Capital	316		310		306		301		300
Adjusted Return on Capital	46.2	%	42.9	%	43.9	%	46.4	%	53.3	%

⁽¹⁾ Due to rounding, trailing twelve month totals may not equal the sum of the quarters.
⁽²⁾ Beginning in 2018, we assume a 21% tax rate on segment Adjusted operating earnings, excluding unlocking, less the estimated benefit of the dividends received deduction in our Retirement segment.



Voya Financial		Page 39 of 45

Reconciliation of Adjusted Operating Earnings - excluding Unlocking; Adjusted Return on Capital ⁽¹⁾



	Twelve Months Ended ⁽¹⁾
(in millions USD, unless otherwise indicated)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018

Employee Benefits
Adjusted operating earnings before income taxes	199		187		180		166		160
Less:
DAC/VOBA and other intangibles unlocking	—		—		—		—		(1	)
Adjusted Operating Earnings - excluding Unlocking before interest	199		187		180		166		161
Income tax expense	42		39		38		35		34
Adjusted Operating Earnings - excluding Unlocking before interest and after income taxes	157		148		142		131		127

Adjusted Operating effective tax rate, excluding Unlocking ⁽²⁾	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
Adjusted Operating effective tax rate, excluding Unlocking - Trailing Twelve Months	21.0	%	21.0	%	21.0	%	21.0	%	21.0	%
Average Capital	507		495		482		468		449
Ending Capital	519		517		509		507		470
Adjusted Return on Capital	31.0	%	29.8	%	29.4	%	28.0	%	28.2	%

⁽¹⁾Due to rounding, trailing twelve month totals may not equal the sum of the quarters.
⁽²⁾ Beginning in 2018, we assume a 21% tax rate on segment Adjusted operating earnings, excluding Unlocking, less the estimated benefit of the dividends received deduction in our Retirement segment.



Voya Financial		Page 40 of 45

Prepayments and Alternative Income Above (Below) Long-Term Expectations ⁽²⁾



	Three Months Ended								Twelve Months Ended
(in millions USD)	12/31/2019		9/30/2019		6/30/2019	3/31/2019		12/31/2018	12/31/2019		12/31/2018

Prepayments Above (Below) Long-term Expectations ⁽¹⁾
Retirement	12		(1	)	6	—		2	17		1
Investment Management	—		—		—	—		—	—		—
Employee Benefits	1		—		—	—		—	1		—
Total	13		(1	)	6	—		2	18		1

Alternatives Above (Below) Long-term Expectations ⁽¹⁾
Retirement	9		6		16	(16	)	9	15		46
Investment Management	(2	)	—		2	(7	)	—	(7	)	7
Employee Benefits	1		1		2	(2	)	1	2		5
Total	8		7		20	(25	)	10	10		58

Prepayments and Alternative Income Above (Below) Long-Term Expectations ⁽¹⁾
Retirement	21		5		22	(16	)	11	32		47
Investment Management	(2	)	—		2	(7	)	—	(7	)	7
Employee Benefits	2		1		2	(2	)	1	3		5
Total	21		6		26	(25	)	12	28		59

⁽¹⁾ The amount by which Investment income from prepayment fees and alternative investments exceeds or is less than our long-term expectations reported on a pre-DAC basis, but excluding such amounts attributable to prepayment fees and alternative income in Corporate.
⁽²⁾ Corporate impacts are immaterial.



Voya Financial		Page 41 of 45

Reconciliation of Normalized Adjusted Operating Earnings and Earnings Per Common Share (Diluted)



	Three Months Ended
(in millions except per share in whole dollars)	12/31/2019								9/30/2019								6/30/2019								3/31/2019								12/31/2018
	Pre-tax		After-tax			Per share ⁽¹⁾			Pre-tax		After-tax			Per share ⁽¹⁾			Pre-tax		After-tax			Per share ⁽¹⁾			Pre-tax		After-tax			Per share ⁽¹⁾			Pre-tax		After-tax			Per share ⁽¹⁾

Income (loss) available to Voya Financial, Inc.'s common shareholders			$	(776	)	$	(5.45	)			$	106		$	0.74				$	226		$	1.51				$	64		$	0.42				$	121		$	0.76
Plus: Net income (loss) attributable to noncontrolling interest			6			0.04					19			0.13					26			0.17					(1		)	(0.01		)			57			0.36
Less: Preferred stock dividends			(4		)	(0.03		)			(14		)	(0.10		)			—			—					(10		)	(0.07		)			—			—
Less: Income (loss) from discontinued operations			(1,084		)	(7.62		)			(4		)	(0.03		)			42			0.28					(20		)	(0.13		)			29			0.18
Income (loss) from continuing operations	66		318			2.23			149		144			1.00			243		210			1.40			102		93			0.62			127		149			0.94
Less:
Net investment gains (losses) and related charges and adjustments	(47	)	(37		)	(0.26		)	14		11			0.08			45		36			0.24			13		10			0.07			(24	)	(19		)	(0.12		)
Net guaranteed benefit hedging gains (losses) and related charges and adjustments	8		6			0.05			(12	)	(9		)	(0.06		)	(6	)	(5		)	(0.03		)	(4	)	(3		)	(0.02		)	53		42			0.26
Income (loss) related to businesses exited or to be exited through reinsurance or divestment	18		14			0.10			31		24			0.17			40		31			0.21			9		7			0.05			(7	)	(6		)	(0.04		)
Net income (loss) attributable to noncontrolling interest	6		6			0.04			19		19			0.13			26		26			0.17			(1	)	(1		)	(0.01		)	57		57			0.36
Income (loss) on early extinguishment of debt	—		—			—			(12	)	(9		)	(0.07		)	—		—			—			—		—			—			(37	)	(29		)	(0.18		)
Immediate recognition of net actuarial gains (losses) related to pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments	(63	)	(50		)	(0.35		)	—		—			—			—		—			—			66		52			0.34			(47	)	(37		)	(0.24		)
Dividend payments made to preferred shareholders	4		4			0.03			14		14			0.10			—		—			—			10		10			0.07			—		—			—
Other adjustments	(38	)	222			1.56			(27	)	(19		)	(0.14		)	(52	)	(38		)	(0.26		)	(92	)	(71		)	(0.47		)	(27	)	(5		)	(0.03		)
Adjusted operating earnings	178		153			1.07			122		114			0.79			190		159			1.06			101		89			0.59			159		146			0.92
Less:
DAC, VOBA and other intangibles unlocking	(10	)	(8		)	(0.06		)	(29	)	(23		)	(0.16		)	5		4			0.02			4		3			0.02			(14	)	(11		)	(0.07		)
Prepayment fees and alternative investment income above (below) long-term expectations	21		17			0.12			6		5			0.03			26		21			0.14			(25	)	(20		)	(0.13		)	12		9			0.06
Individual Life transaction stranded costs	(33	)	(26		)	(0.18		)	(34	)	(27		)	(0.18		)	(31	)	(25		)	(0.16		)	(34	)	(27		)	(0.18		)	(31	)	(24		)	(0.15		)
Investment Management earnings related to annuities business sold on 6/1/2018	—		—			—			—		—			—			—		—			—			—		—			—			—		—			—
Normalized adjusted operating earnings	199		170			1.19			179		159			1.10			190		159			1.06			155		132			0.87			191		172			1.09

⁽¹⁾ Per share calculations are based on un-rounded numbers.



Voya Financial		Page 42 of 45

Reconciliation of Normalized Adjusted Operating Earnings and Earnings Per Common Share (Diluted)



	Twelve months ended
(in millions except per share in whole dollars)	12/31/2019								12/31/2018
	Pre-tax		After-tax			Per share ⁽¹⁾			Pre-tax		After-tax			Per share ⁽¹⁾

Income (loss) available to Voya Financial, Inc.'s common shareholders			$	(379	)	$	(2.58	)			$	875		$	5.20
Plus: Net income (loss) attributable to noncontrolling interest			50			0.34					145			0.86
Less: Preferred stock dividends			(28		)	(0.19		)			—			—
Less: Income (loss) from discontinued operations			(1,066		)	(7.26		)			529			3.14
Income (loss) from continuing operations	560		765			5.21			528		491			2.92
Less:
Net investment gains (losses) and related charges and adjustments	25		20			0.14			(124	)	(98		)	(0.58		)
Net guaranteed benefit hedging gains (losses) and related charges and adjustments	(14	)	(11		)	(0.07		)	62		49			0.29
Income (loss) related to businesses exited or to be exited through reinsurance or divestment	98		78			0.53			(40	)	(32		)	(0.19		)
Net income (loss) attributable to noncontrolling interest	50		50			0.34			145		145			0.86
Income (loss) on early extinguishment of debt	(12	)	(10		)	(0.07		)	(40	)	(31		)	(0.19		)
Immediate recognition of net actuarial gains (losses) related to pension and other postretirement benefit obligations and gains (losses) from plan amendments and curtailments	3		2			0.02			(47	)	(37		)	(0.22		)
Dividend payments made to preferred shareholders	28		28			0.19			—		—			—
Other adjustments	(209	)	94			0.64			(79	)	(65		)	(0.39		)
Adjusted operating earnings	591		514			3.50			651		560			3.33
Less:
DAC, VOBA and other intangibles unlocking	(30	)	(24		)	(0.16		)	(2	)	(2		)	(0.01		)
Prepayment fees and alternative investment income above (below) long-term expectations	28		22			0.15			59		47			0.28
Individual Life transaction stranded costs	(132	)	(104		)	(0.71		)	(122	)	(97		)	(0.57		)
Investment Management earnings related to annuities business sold on 6/1/2018	—		—			—			15		12			0.07
Normalized adjusted operating earnings	724		619			4.22			701		600			3.56

⁽¹⁾ Per share calculations are based on un-rounded numbers.



Voya Financial		Page 43 of 45

Reconciliation of Book Value Per Common Share, Excluding AOCI



	Three Months Ended or As of										Year-to-Date or As of
(in whole dollars)	12/31/2019		9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2019		12/31/2018
Book value per common share, including AOCI	66.49		73.73		67.37		59.13		52.28		66.49		52.28
Per share impact of AOCI	(25.18	)	(25.94	)	(20.43	)	(13.29	)	(4.02	)	(25.18	)	(4.02	)
Book value per common share, excluding AOCI	41.31		47.79		46.94		45.84		48.26		41.31		48.26

Debt to capital	24.4	%	22.4	%	23.8	%	25.7	%	27.6	%	24.4	%	27.6	%
Capital impact of AOCI	9.0	%	7.7	%	6.6	%	4.9	%	1.6	%	9.0	%	1.6	%
Impact of 25% equity treatment afforded to subordinate debt	-3.0	%	-2.7	%	-2.7	%	-2.6	%	-2.6	%	-3.0	%	-2.6	%
Adjusted Debt to capital	30.4	%	27.4	%	27.7	%	28.0	%	26.6	%	30.4	%	26.6	%

Reconciliation of shares used in Normalized adjusted operating earnings per common share (Diluted)
Weighted-average common shares outstanding - Diluted	142.4		144.3		149.9		151.3		157.9		147.0		168.2
Dilutive effect of the exercise or issuance of stock-based awards ⁽¹⁾	—		—		—		—		—		—		—
Weighted average common shares outstanding - Adjusted Diluted ⁽¹⁾	142.4		144.3		149.9		151.3		157.9		147.0		168.2

⁽¹⁾ For periods in which there is Loss from continuing operations, Normalized adjusted operating earnings per common share calculation includes additional dilutive shares, as the inclusion of these shares for stock compensation plans would not be anti-dilutive to the Normalized adjusted operating earnings per common share calculation.



Voya Financial		Page 44 of 45

Reconciliation of Investment Management Normalized Adjusted Operating Margin, Excluding Investment Capital



	Three Months Ended						Twelve Months Ended
(in millions USD, unless otherwise indicated)	12/31/2019		9/30/2019		12/31/2018		12/31/2019		9/30/2019		12/31/2018

Adjusted operating revenues	197		167		159		675		637		683
Adjusted operating expenses	(138	)	(121	)	(115	)	(495	)	(472	)	(478	)
Adjusted operating earnings before income taxes	59		46		44		180		165		205
Adjusted operating margin	29.9	%	27.4	%	27.7	%	26.6	%	25.9	%	30.1	%

Adjusted operating revenues	197		167		159		675		637		683
Less:
Investment Capital Results	3		5		5		13		15		29
Adjusted operating revenues excluding Investment Capital	194		162		154		662		622		654
Adjusted operating expenses	(138	)	(121	)	(115	)	(495	)	(472	)	(478	)
Adjusted operating earnings excluding Investment Capital	56		41		39		167		150		176
Adjusted operating margin excluding Investment Capital	28.8	%	25.0	%	25.5	%	25.1	%	24.1	%	27.1	%

Adjusted operating revenues	197		167		159		675		637		683
Less:
Investment Capital Results above (below) long-term expectations	(2	)	—		—		(7	)	(5	)	7
Adjusted operating revenue related to annuities businesses sold on June 1, 2018	—		—		—		—		—		15
Normalized adjusted operating revenues	199		167		159		682		642		661
Adjusted operating expenses	(138	)	(121	)	(115	)	(495	)	(472	)	(478	)
Normalized adjusted operating earnings	61		45		44		186		170		183
Normalized adjusted operating margin	30.7	%	27.3	%	27.7	%	27.4	%	26.4	%	27.8	%



Voya Financial		Page 45 of 45

Reconciliation of Previously Reported Normalized Adjusted Operating Earnings and Earnings Per Common Share (Diluted)



	Three Months Ended or As of								Year-to-Date or As of
(in millions USD, unless otherwise indicated)	9/30/2019		6/30/2019		3/31/2019		12/31/2018		12/31/2018
As previously reported:
Adjusted operating earnings, before income taxes	125		278		194		238		802
Adjusted operating earnings, after income taxes	115		229		163		209		680
Effective tax rate	7.8	%	17.7	%	16.3	%	12.2	%	15.3	%
Per common share (diluted)	0.81		1.52		1.07		1.32		4.04
Normalized adjusted operating earnings, before income taxes	226		235		223		255		981
Normalized adjusted operating earnings, after income taxes	195		195		186		222		821
Effective tax rate	13.7	%	17.1	%	16.9	%	12.7	%	16.3	%
Per common share (diluted)	1.36		1.30		1.22		1.40		4.88

Impact of the Individual Life Transaction:
Adjusted operating earnings, before income taxes	(3	)	(88	)	(93	)	(79	)	(151	)
Adjusted operating earnings, after income taxes	(1	)	(70	)	(74	)	(63	)	(120	)
Effective tax rate	-0.3	%	-1.5	%	-4.3	%	-4.2	%	-1.4	%
Per common share (diluted)	(0.02	)	(0.46	)	(0.48	)	(0.40	)	(0.71	)
Normalized adjusted operating earnings, before income taxes	(47	)	(45	)	(68	)	(64	)	(280	)
Normalized adjusted operating earnings, after income taxes	(36	)	(36	)	(54	)	(50	)	(221	)
Effective tax rate	-2.0	%	-0.9	%	-1.7	%	-2.5	%	-1.9	%
Per common share (diluted)	(0.26	)	(0.24	)	(0.35	)	(0.31	)	(1.32	)

As reported beginning with December 31, 2019:
Adjusted operating earnings, before income taxes	122		190		101		159		651
Adjusted operating earnings, after income taxes	114		159		89		146		560
Effective tax rate	7.5	%	16.2	%	12.0	%	8.0	%	13.9	%
Per common share (diluted)	0.79		1.06		0.59		0.92		3.33
Normalized adjusted operating earnings, before income taxes	179		190		155		191		701
Normalized adjusted operating earnings, after income taxes	159		159		132		172		600
Effective tax rate	11.7	%	16.2	%	15.2	%	10.2	%	14.4	%
Per common share (diluted)	1.10		1.06		0.87		1.09		3.56

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