Voya Monetary, Inc. VOYA shares are buying and selling at a reduction in comparison with the Zacks Life Insurance coverage business. Its ahead price-to-book worth of 0.98X is decrease than the business common of 1.89X, the Finance sector’s 4.24X and the Zacks S&P 500 Composite’s 8.56X. The life insurer has a Worth Rating of A.
The insurer has a market capitalization of $6.71 billion. The common quantity of shares traded within the final three months was 0.7 million.
The inventory stays attractively valued in contrast with Primerica, Inc. PRI, Manulife Monetary Corp. MFC and Solar Life Monetary Inc. SLF.
Picture Supply: Zacks Funding Analysis
Earnings of Voya Monetary grew 12.2% within the final 5 years, higher than the business common of seven.8%. VOYA has a strong shock historical past. It has a strong monitor document of beating earnings estimates in every of the final 4 quarters, the typical being 42.92%.
Voya Monetary shares have gained 1.2% within the year-to-date interval in contrast with the business’s development of 4.5%. The Zacks S&P 500 index and the Finance sector have returned 15.5% and 19.2%, respectively, within the mentioned timeframe.
Picture Supply: Zacks Funding Analysis
VOYA’s Progress Projection Encourages
The Zacks Consensus Estimate for Voya Monetary’s 2025 earnings per share signifies a year-over-year enhance of 46.5%. The consensus estimate for revenues is pegged at $1.34 billion, implying a year-over-year enchancment of 24.6%.
The consensus estimate for 2026 earnings per share and revenues signifies a rise of 12.2% and three.6%, respectively, from the corresponding 2025 estimates.
Optimistic Analyst Sentiment on VOYA
Every of the 5 analysts masking the inventory has raised estimates for 2025, whereas two analysts have raised the identical for 2026 over the previous 60 days. Thus, the Zacks Consensus Estimate for 2025 and 2026 moved 3% and 0.09% north, respectively, within the final 60 days.
Elements Performing in Favor of VOYA
VOYA’s earnings are pushed by its strong segmental performances throughout Retirement, Funding Administration and Worker Advantages segments. These companies replicate higher-growth, capital-light and higher-return models, boasting the corporate’s strong presence out there.
The Retirement section is steadily witnessing important development on the again of upper revenues reflecting onboarded OneAmerica property, favorable market impacts, increased various funding revenue and lively portfolio administration, optimistic outlined contribution flows, in addition to disciplined administration of spend. Given continued business momentum, margins stay above the long-term targets. This, in flip, ought to drive increased charge revenue, sturdy unfold revenue and prudent administration of spend.
The Funding Administration section ought to profit from increased funding capital returns, primarily pushed by general market efficiency, increased fee-based revenues benefiting from sturdy business momentum and favorable market impacts and disciplined administration of spend.
VOYA is continually taking strategic steps to ramp up development in its Funding Administration section. Voya Monetary and Allianz International Buyers inked a long-term strategic partnership that added scale and diversification to Voya Funding Administration.
The Worker Advantages section of the insurer is more likely to profit from unfavorable Cease Loss declare growth within the prior interval, which didn’t repeat, and a smaller block of enterprise within the present interval, decrease premium-driven bills and disciplined administration of spend, and better various funding revenue and lively portfolio administration.
The corporate’s capital ranges stay sturdy. For the third quarter of 2025, the corporate generated greater than $0.2 billion of extra capital, which was roughly 90% of after-tax adjusted working earnings. The third quarter of 2025 marked one other quarter of constant money circulation technology, the place VOYA generated greater than $200 million of extra capital. VOYA stays well-positioned to exceed the $700 million purpose. VOYA ended the third quarter with a wholesome steadiness sheet and roughly $350 million of extra capital. As of Sept. 30, 2025, the estimated mixed RBC ratio was 407%.
VOYA’s Wealth Distribution
Operational excellence has been serving to the corporate deploy capital to reinforce shareholders’ worth. The steadiness sheet is well-positioned and was strengthened by the roughly $200 million of extra capital it generated within the quarter. VOYA expects to return between $100 million and $150 million in quarterly dividends and share repurchases all through 2026, topic to market circumstances. As of Sept. 30, 2025, the corporate had roughly $0.35 billion of extra capital and remaining share repurchase authorization of $661 million.
Headwinds
Nonetheless, the life insurer has been experiencing elevated bills on account of increased policyholder advantages, curiosity credited to contract proprietor account balances, working prices and curiosity bills. If the corporate doesn’t try to generate income development larger than the magnitude of the rise in bills, the margin will proceed to erode.
Finish Notes
Voya Monetary is well-positioned for development on improved funding revenue, increased common fairness markets and optimistic web flows, favorable retention, in addition to strategic partnerships. It ought to proceed to learn from monetary flexibility and efficient capital deployment.
Voya Monetary ought to proceed to learn from spectacular dividend historical past, strong development projections, optimistic analyst sentiment, and enticing valuations. It’s, due to this fact, sensible to carry on to this Zacks Rank #3 (Maintain) inventory. You possibly can see the entire record of immediately’s Zacks #1 Rank (Robust Purchase) shares right here.
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Manulife Monetary Corp (MFC) : Free Inventory Evaluation Report
Primerica, Inc. (PRI) : Free Inventory Evaluation Report
Solar Life Monetary Inc. (SLF) : Free Inventory Evaluation Report
Voya Monetary, Inc. (VOYA) : Free Inventory Evaluation Report
This text initially printed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
