Voya Financial Inc.

The stable outlook reflects our expectation that Voya and its subsidiaries will maintain very strong capital adequacy, a top-five market position in its core markets, balance-sheet strength, and adequate liquidity. We could lower our ratings in the next 12-24 months if Voya maintains a lower-than-expected ('AA') level of capital adequacy per our model or does not meet our current operating performance expectations. We could also lower the ratings if Voya has higher leverage than our base-case assumptions, or if business-line concentrations increase. We are unlikely to raise our ratings in the next 12-24 months because we do not expect meaningful improvements in the business or financial risk profiles that would outpace higher-rated peers'. Real U.S. GDP growth of about 5.7%

...Its competitive advantage stems from a strong presence in the K-12 and higher education markets. Voya Financial Inc. operates predominantly in the retirement and savings business. Voya is a top-five player in the K-12 and higher education markets, small corporate sales, and stop-loss sales. The company maintains very strong capital, per our model, and we expect this to continue over our projection period. We expect Voya to maintain capital in the '##' confidence level of our capital model based on stable earnings from its key segments, and we expect it to continue without aggressive share repurchase, dividend, or investment policy. Voya is transitioning its operating profile to one that is more reliant on capital-light and higher-growth businesses. Over the past several years Voya's focus has pivoted away from retail life and annuity insurance to one that serves health, wealth, and investment solutions centered on workplace and institutional clients. Its ability to connect and integrate...

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