Voya Financial Announces Regulatory Approval of Sale of Individual Life Business and Other Closed Blocks

Rhea-AI Summary

Voya Financial (NYSE: VOYA) announced that it and Resolution Life have secured all regulatory approvals to finalize the sale of Voya’s Individual Life and non-retirement legacy annuities business, slated to close on January 4, 2021. The transaction aims to ensure a smooth transition for customers. Additionally, Voya plans to initiate an accelerated share repurchase program totaling approximately $150 million, reiterating its commitment to returning capital to shareholders. With this approval, Voya has returned around $6.4 billion to shareholders since its IPO.

Positive

• Successful completion of regulatory approvals for the sale to Resolution Life.
• Initiation of a $150 million accelerated share repurchase plan.
• Commitment to return $6.4 billion to shareholders since IPO.

Negative

• None.

Voya Financial, Inc. (NYSE: VOYA), announced today that it and Resolution Life Group Holdings (Resolution Life) have received all regulatory approvals needed to complete the sale of Voya’s Individual Life and non-retirement legacy annuities business to Resolution Life. As previously announced, the transaction is expected to close on Jan. 4, 2021.

“We are pleased to have received regulatory approval of the Individual Life transaction,” said Rodney O. Martin, Jr., chairman and chief executive officer, Voya Financial, Inc. “Thanks to the commitment of employees at both companies, we have already completed the operational and financial requirements needed to close the transaction and ensure a smooth transition for our customers. We look forward to working with Resolution Life over the coming days to prepare for closing the transaction on Jan. 4.”

“Resolution Life continues to work closely with our Voya colleagues and we look forward to completing the transaction on Jan. 4, 2021 and to welcoming new team members and policyholders to our business,” said Sir Clive Cowdery, founder and executive chairman, Resolution Life.

Voya also announced today that it intends to enter into an accelerated share repurchase (ASR) agreement with a third-party financial institution before the end of the year, under which it will repurchase approximately $150 million of its common stock. The initial delivery of shares under the ASR would take place in the fourth quarter of 2020, with final settlement during the first quarter of 2021.

“Having received final regulatory approval on the Individual Life transaction – and with greater clarity on the credit environment – we have decided to resume share repurchases. This will enable us to continue to build upon the approximately $6.4 billion of capital that we have already returned to shareholders through share repurchases and dividends since our initial public offering, and it reinforces our commitment to being good stewards of shareholder capital. We plan to provide more information on our capital management plans during our fourth-quarter and full-year 2020 earnings call in February,” added Martin.

About Voya Financial^®

Voya Financial, Inc. (NYSE: VOYA), helps Americans plan, invest and protect their savings — to get ready to retire better. Serving the financial needs of approximately 13.8 million individual and institutional customers in the United States, Voya is a Fortune 500 company that had $7.5 billion in revenue in 2019. The company had $657 billion in total assets under management and administration as of Sept. 30, 2020. With a clear mission to make a secure financial future possible — one person, one family, one institution at a time — Voya’s vision is to be America’s Retirement Company^®. Certified as a “Great Place to Work” by the Great Place to Work^® Institute, Voya is equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible. Voya has been recognized as a 2020 World’s Most Admired Company by Fortune magazine; one of the 2020 World’s Most Ethical Companies^® by the Ethisphere Institute; as a member of the Bloomberg Gender Equality Index; and as a “Best Place to Work for Disability Inclusion” on the Disability Equality Index by Disability:IN. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.

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FAQ

What is the significance of Voya Financial's sale to Resolution Life?

The sale allows Voya Financial to focus on its core business while ensuring a smooth transition for customers.

When is the closing date for Voya's transaction with Resolution Life?

The transaction is expected to close on January 4, 2021.

How much stock is Voya Financial planning to repurchase?

Voya Financial intends to repurchase approximately $150 million of its common stock.

How much capital has Voya Financial returned to shareholders since its IPO?

Voya Financial has returned about $6.4 billion to shareholders since its IPO.