Voya Financial, Inc. operates as a retirement, investment, and insurance company in the United States. It operates through five segments: Retirement, Investment Management, Annuities, Individual Life, and Employee Benefits. The Retirement segment offers tax-deferred employer-sponsored retirement savings plans and administrative services in corporate, education, healthcare, and other non-profit and government entities; and rollover individual retirement accounts and other retail financial products, as well as financial planning and advisory services. This segment sells its products to corporate, education, healthcare, and other non-profit and government entities, as well as institutional and individual customers; and through third-party administrators, wirehouse affiliated brokers, registered investment advisors, independent sales agents, and consulting firms. The Investment Management segment provides fixed income, equity, multi-asset, and alternative products and solutions to individual and institutional customers directly, as well as through consultant channel, banks, broker-dealers, and independent financial advisers. The Annuities segment offers fixed and indexed annuities, tax-qualified mutual fund custodial products, and other investment-only products and payout annuities through independent marketing organizations, independent and affiliated broker-dealers, banks, independent insurance agents, and pension products. The Individual Life segment provides wealth protection and transfer opportunities through universal, variable, and term life products. The Employee Benefits segment offers stop loss, group life, voluntary employee-paid, and disability products through consultants, brokers, third-party administrators, enrollment firms, and technology partners. The company was formerly known as ING U.S., Inc. and changed its name to Voya Financial, Inc. in April 2014. Voya Financial, Inc. was incorporated in 1999 and is based in New York, New York.
Business Analysis of Voya Financial
The Insurance Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Voya Financial compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Voya Financial to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Voya Financial with an interactive chart.
- Revenue Growth: Voya Financial reported a revenue growth of -4.1% year-on-year during 2016. Life Insurance Industry grew at -1.7% in the same period
- COGS share of Revenues: As a percentage of revenue, Voya Financial spent 69.7% of its total revenues on COGS. Life Insurance industry average (COGS share of revenue) in the same period was 71.2%
- R&D share of Revenues: Voya Financial R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Voya Financial spent 27.2% of its total revenues on Sales, Marketing, and General Administration (SG&A). Life Insurance industry average SG&A spending in the same period was 10.6%
- Inventory share of Revenues: Voya Financial Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: As a percentage of revenue, Voya Financial invested 17.1% of its total revenues on Accounts Payable (A/P) Life Insurance industry average Accounts Payable investment in the same period was 22.3%
- Accounts Receivable share of Revenues: As a percentage of revenue, Voya Financial invested 67.9% of its total revenues on Accounts Receivable (A/R). Life Insurance industry average Accounts Receivable investment in the same period was 38.1%
- PP&E share of Revenues: Voya Financial PP&E share of Revenues details are not available because either company does not share the data or we do not have it
- Intangibles share of Revenues: As a percentage of revenue, Voya Financial invested 2.0% of its total revenues on Intangibles. Life Insurance industry average Intangibles investment in the same period was 7.6%
- Net Margins: Voya Financial Net Margins in the year 2016 were -4.0%. Life Insurance industry average Net Margins in the same period were 4.3%
Sector and Industry Association of Voya Financial
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Voya Financial is associated with Financials Sector Group, Insurance Sector, and Life Insurance Industry.
Insurance sector is comprised of the following industries: Life Insurance; Property & Casualty Insurance; Surety & Title Insurance; Insurance Brokerage; Diversified Insurance. The definitions for each of the industries is as follows:
- Life Insurance industry includes companies engaged principally in life insurance.
- Property & Casualty Insurance industry includes companies engaged principally in accident, fire, automotive, marine, malpractice and other classes of non-life insurance.
- Surety & Title Insurance industry includes companies providing title & surety insurance.
- Insurance Brokerage industry includes insurance brokers and agencies.
- Diversified Insurance industry includes companies with life, health, property & casualty, and reinsurance interests, none of which predominates.
Industry Ranking of Voya Financial
With $10.8 billion revenues, Voya Financial ranked number 5 of all the companies in the US Life Insurance industry. There were a total of 14 public companies in the US Life Insurance industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Life Insurance industry by revenues during 2016 were:
- MetLife ($63.5 billion)
- Prudential Financial ($58.8 billion)
- Lincoln National ($13.3 billion)
- Reinsurance Group Of America ($11.5 billion)
- Voya Financial ($10.8 billion)
- Genworth Financial ($8.4 billion)
- Torchmark ($3.9 billion)
- American National Insurance ($3.2 billion)
- American Equity Investment Life ($2.2 billion)
- Primerica ($1.5 billion)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
- Get in touch with us to learn more about Business Model Analysis Framework
- Get free data, charts, and analysis of Voya Financialand its peers on select key performance indicators by clicking the reports provided below