Posted by (American Life InsuranceGuidance News) On July 2018, 7, American life insurance company Voya officially announced that Morgan Stanley will help Voya sell the company's personal life insurance business for a total value of US$19 billion.The market speculates that the news of Morgan Stanley’s appointment is due to the withdrawal of New York-based Voya to streamline its business and prepare for a broader sales process.
Personal life insurance business trend to be determined
In the news report at the beginning of the year, the senior executives of Voya Financial Group stated that the company will decide the direction of the personal life insurance business after the annuity business is divested.
Wall Street analysts learned relevant information and clues about the future of its life insurance business from Woya, a New York-based asset and pension management company.
Voya Finance revealed in December last year that it would sell its closed variable annuity business, fixed annuity and fixed index annuity product portfolios, in order to focus on more profitable asset management and profit business.
As part of the aforementioned statement, the company stated that it will reassess its personal life insurance business.
Voya Chief Financial Officer Mike Smith said in past phone meetings with analysts that the regular expenses of the life insurance business "will be our consideration in determining its future. However, it is too early to consider such details."
"We will clarify the development direction of life insurance in the next few months, when we will announce the specific decision-making process to everyone." Smith said.
New annuity products are temporarily shelved
Voya executives said that Voya's annuity business and life insurance business are integrated. Therefore, after the sale of the annuity business is completed and the two businesses are separated from each other, Voya will have the opportunity to re-plan its life insurance business.
"We have studied a lot of strategic roads, these strategies can truly integrate personal life insurance as part of Voya." Carolyn Johnson, executive president of annuities and personal life insurance business, said.
At the end of last year, Voya announced plans to launch a buffer-type variable annuity in 2018 and named it Voya rising annuity. However, the company recently stated that because the annuity business is about to be sold, it "has no plan to release this product in the near future."
Although the variable annuity market as a whole continues to shrink, the buffer-type variable annuity business still maintains a growth momentum.
In a related email, Voya stated that the company will continue to sell its current annuity products until the transaction is completed.
Voya stated that in accordance with the registration approval process, the sale of the annuity business is expected to be completed in the second or third quarter of 2018.
Book value fell by US$24 billion
Voya executives stated that the proceeds from the sale of the company's annuity business will be used to repurchase shares.
"Beginning in 2018, we have formulated a number of initiatives and tasks to ensure that Voya can develop into a more concentrated and valuable company with continuous growth." Voya Chairman and CEO Rodney O. Martin Jr. pointed out in a report.
Due to the sales of the annuity business, Voya's book value fell by $24 billion in the fourth quarter.
The company's financial report pointed out that the company's net loss in the fourth quarter of 2017 was US$31 billion, compared with a net loss of US$2016 million in the same period in 4.17.
American Life Insurance Guide will pay more attention to the news of Voya life insurance business.
Report update on October 2018, 10:Voya Insurance officially announced its withdrawal from the US personal life insurance market.The summary of the report is as follows:
Voya announced that it will be officially before December 2018, 12Stop selling new personal life insurance products.For the past insurance policies, they will continue to be retained to support higher growth, higher returns, and asset-light businesses.The retained personal life insurance policy will provide Voya with an expected free cash flow of at least $5 billion in the next 6 to 10 years.
Report update on October 2019, 12:(Express News) Voya Personal Life Insurance and Related Business Formally Announced the Sale
>>>20210207 latest news update:Voya Insurance News Topics
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