Research Update: Voya Financial Inc. 'BBB+' Rating Affirmed Following Revised Capital Model Criteria; Outlook Remains Stable

On Nov. 15, 2023, we published our revised criteria for analyzing insurers' risk-based capital (see "Insurer Risk-Based Capital Adequacy--Methodology And Assumptions"). We view Voya Financial Inc.'s capital and earnings as very strong owing to its redundancy at the 99.95% confidence level, per our new risk-based capital model. We affirmed our 'A+' long-term financial strength and issuer credit ratings on Voya Financial Inc.'s subsidiaries, as well as our 'BBB+' issuer credit rating on Voya Financial Inc. We also affirmed and subsequently withdrew our 'A-2' short-term rating on Voya Financial Inc.'s commercial paper at the company's request. The stable outlook indicates our expectation that the group will maintain its competitive strength and very strong capital and earnings in the next two years.

...Key strengths Key risks Diverse product offering stemming from a strong presence in its core retirement services market, focused on the K-12 and higher education markets, as well as employee benefits and a diversified investment management arm. Historical volatility in net income due to the divested businesses. Multichannel distribution network for retirement and employee benefits. Transition risk following the company's evolution to a more capital-light model. Very strong capital adequacy. Uncertain macroeconomic conditions....

Research Update