Voya Financial completes transfer of majority of Allianz Global Investors’ U.S. business; begins new strategic distribution partnership

Rhea-AI Summary

Voya Financial has successfully completed the transfer of significant assets and teams from Allianz Global Investors’ U.S. business to Voya Investment Management. This strategic partnership aims to enhance Voya IM's asset management capabilities, resulting in a client asset retention rate of approximately 95%. Following this transaction, Voya IM's assets under management have risen to around $322 billion. The partnership will also allow AllianzGI to distribute Voya IM's investment strategies internationally. Further financial details will be discussed in Voya's upcoming earnings call on August 3, 2022.

Positive

• Successful transfer of AllianzGI's U.S. business assets to Voya IM.
• Approximately 95% client asset retention post-transaction.
• Voya IM's AUM increased to around $322 billion.
• Formation of a strategic distribution partnership with AllianzGI.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Voya Financial, Inc. (NYSE: VOYA) (“Voya”), announced today that it has completed its previously announced transfer of certain assets and teams comprising the substantial majority of Allianz Global Investors’ (“AllianzGI”) U.S. business (“AGI U.S.”) to Voya Investment Management (“Voya IM”), the asset management business of Voya Financial. AllianzGI and Voya Financial announced on June 13, 2022 that the companies had entered into a definitive agreement regarding the strategic partnership.

Specifically, Voya IM has transferred AGI U.S.’s income and growth, fundamental equity, and private placement investment teams and the associated assets under management (AUM) into Voya IM. The assets that have transferred to Voya represent approximately 95% client asset retention since the transaction was initially announced. In addition, Voya IM and AllianzGI have formed a long-term, strategic distribution partnership whereby AllianzGI will distribute Voya IM’s investment strategies outside the U.S. and Canada.

“We are excited to have reached this important milestone in our transaction with AllianzGI,” said Rodney O. Martin, Jr., chairman and chief executive officer, Voya Financial, Inc. “In addition to welcoming the talented, highly complementary investment teams to Voya, we look forward to continuing to work closely with AllianzGI through our new, highly strategic, long-term international distribution partnership, which will enable us to provide diverse investment strategies that meet the needs of an even larger, more global client base. This transaction will provide several benefits to all of our stakeholders, including our employees, shareholders, clients and intermediaries.”

On a pro forma basis and based on AUM as of June 30, 2022, Voya IM’s AUM has increased to approximately $322 billion, which consists of approximately 44% public fixed income; 24% private fixed income; 25% equity; 6% alternatives; and 1% money market assets. The economic impact and benefits of the transferred business will be reflected in Voya’s financial results beginning in the third quarter of 2022. Voya and Allianz Group now hold 76% and 24%, respectively, economic stakes in Voya’s asset management business.

Voya plans to provide further details on the transaction during its second-quarter 2022 earnings call on Wednesday, Aug. 3, 2022.

Goldman Sachs & Co. LLC is serving as financial advisor and Cleary Gottlieb Steen & Hamilton LLP is serving as legal counsel to Voya in connection with this transaction. PJT Partners and BMO Capital Markets are also providing advisory services in connection with the transaction.

About Voya Financial^®

Voya Financial, Inc. (NYSE: VOYA), is a leading health, wealth and investment company that provides products, solutions and technologies that help Americans become well planned, well invested and well protected. Serving the needs of 14.3 million individual, workplace and institutional clients, Voya has approximately 6,000 employees and had $707 billion in total assets under management and administration as of March 31, 2022. Certified as a “Great Place to Work” by the Great Place to Work^® Institute, Voya is purpose-driven and is equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible. Voya has earned recognition as: one of the World’s Most Ethical Companies^® by the Ethisphere Institute; a member of the Bloomberg Gender-Equality Index; and a “Best Place to Work for Disability Inclusion” on the Disability Equality Index. For more information, visit voya.com. Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.

Forward-Looking and Other Cautionary Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company does not assume any obligation to revise or update these statements to reflect new information, subsequent events or changes in strategy. Forward-looking statements include statements relating to future developments in our business or expectations for our future financial performance and any statement not involving a historical fact. Forward-looking statements use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. Actual results, performance or events may differ materially from those projected in any forward-looking statement due to, among other things, (i) general economic conditions, particularly economic conditions in our core markets, (ii) performance of financial markets, (iii) the frequency and severity of insured loss events, (iv) the effects of natural or man-made disasters, including pandemic events and specifically the current COVID-19 pandemic event, (v) mortality and morbidity levels, (vi) persistency and lapse levels, (vii) interest rates, (viii) currency exchange rates, (ix) general competitive factors, (x) changes in laws and regulations, such as those relating to Federal taxation, state insurance regulations and NAIC regulations and guidelines, (xi) changes in the policies of governments and/or regulatory authorities, (xii) our ability to successfully manage the separation of our individual life business on the expected timeline and economic terms, and (xiii) our ability to realize the expected benefits from the transaction with AllianzGI. Factors that may cause actual results to differ from those in any forward-looking statement also include those described under “Risk Factors” and “Management’s Discussion and Analysis of Results of Operations and Financial Condition (“MD&A”) – Trends and Uncertainties” in our Annual Report on Form 10-K for the year ended Dec. 31, 2021, as filed with the Securities and Exchange Commission (“SEC”) on Feb. 22, 2022 and in our Quarterly Report on Form 10-Q for the three months ended March 31, 2022, filed with the SEC on May 5, 2022.

VOYA-IR VOYA-CF VOYA-IM

View source version on businesswire.com: https://www.businesswire.com/news/home/20220724005036/en/

Media Contact:

Christopher Breslin

(212) 309-8941

Christopher.Breslin@voya.com

Investor Contact:

Michael Katz

(212) 309-8999

IR@voya.com

Source: Voya Financial, Inc.

FAQ

What is the recent announcement by Voya Financial regarding Allianz Global Investors?

Voya Financial has completed the transfer of significant assets and teams from Allianz Global Investors’ U.S. business to Voya Investment Management.

When was the transfer of AllianzGI's U.S. business to Voya IM finalized?

The transfer was finalized following the announcement made on June 13, 2022.

What is the client asset retention rate after the transaction?

The client asset retention rate is approximately 95%.

What will be the impact on Voya IM’s assets under management?

Voya IM's assets under management have increased to approximately $322 billion.

When will Voya provide further details about the transaction?

Further details will be provided during Voya's second-quarter earnings call on August 3, 2022.