Voya Retirement's Net Income Climbs 4.5% on Strong Investment & Fee Growth

TL;DR

**VRIAC is crushing it with strong revenue and net income growth, making it a solid bet in the retirement space.**

AI Summary

Voya Retirement Insurance and Annuity Company (VRIAC) reported a strong financial performance for the nine months ended September 30, 2025, with net income increasing by 4.5% to $438 million, up from $419 million in the prior year. Total revenues grew by 11.8% to $2,213 million, compared to $1,980 million in 2024, primarily driven by a significant increase in net investment income, which rose by $172 million to $1,282 million, and fee income, which increased by $136 million to $977 million. The company's total assets expanded by 11.1% to $145,830 million from $131,291 million at December 31, 2024, largely due to a $10,116 million increase in assets held in separate accounts. Shareholder's equity also saw substantial growth, rising by 48.5% to $2,287 million from $1,540 million, bolstered by $175 million in additional paid-in capital from the OneAmerica Financial acquisition and $528 million in other comprehensive income after tax. Despite an increase in total benefits and expenses to $1,709 million, up from $1,515 million, VRIAC maintained profitability, demonstrating effective cost management relative to revenue growth.

Why It Matters

VRIAC's robust financial performance, marked by significant revenue and net income growth, signals a healthy underlying business for investors. The 48.5% surge in shareholder's equity, partly due to the OneAmerica Financial acquisition, indicates strategic expansion and improved financial stability, which could attract more capital. For employees, this growth suggests job security and potential for expansion, while customers benefit from a financially sound provider of retirement and annuity products. In the competitive retirement services market, VRIAC's ability to increase net investment income and fee income demonstrates its competitive edge and effective asset management, potentially leading to further market share gains.

Risk Assessment

Risk Level: medium — While VRIAC shows strong financial performance, the 'Note Concerning Forward-Looking Statements' highlights several risks, including global market and geopolitical risks, liquidity and credit risks, and investment risks. Specifically, the company's significant investment in fixed maturities ($20,397 million) and mortgage loans on real estate ($4,412 million) exposes it to interest rate fluctuations and credit defaults, which could impact future earnings despite current positive trends.

Analyst Insight

Investors should consider VRIAC's strong growth in net income and shareholder's equity as a positive indicator. Given the successful integration of the OneAmerica Financial acquisition and robust investment income, investors might consider this a stable long-term holding in the financial services sector, particularly for exposure to the retirement market.

Financial Highlights

debt To Equity

N/A

revenue

$2.21B

operating Margin

N/A

total Assets

$145.83B

total Debt

N/A

net Income

$438M

eps

N/A

gross Margin

N/A

cash Position

$320M

revenue Growth

+11.8%

Revenue Breakdown

Key Numbers

• $438M — Net Income (Increased by 4.5% for the nine months ended September 30, 2025, from $419 million in 2024.)
• $2.21B — Total Revenues (Increased by 11.8% for the nine months ended September 30, 2025, from $1.98 billion in 2024.)
• $1.28B — Net Investment Income (Increased by $172 million for the nine months ended September 30, 2025, from $1.11 billion in 2024.)
• $977M — Fee Income (Increased by $136 million for the nine months ended September 30, 2025, from $841 million in 2024.)
• $145.83B — Total Assets (Increased by 11.1% as of September 30, 2025, from $131.29 billion at December 31, 2024.)
• $2.29B — Total Shareholder's Equity (Increased by 48.5% as of September 30, 2025, from $1.54 billion at December 31, 2024.)
• $175M — Additional Paid-In Capital (Recognized in Q1 2025 due to the OneAmerica Financial acquisition.)
• $10.12B — Assets in Separate Accounts (Increased from $98.58 billion to $108.69 billion as of September 30, 2025.)

Key Players & Entities

• Voya Retirement Insurance and Annuity Company (company) — registrant
• Voya Holdings Inc. (company) — direct parent of VRIAC
• Voya Financial, Inc. (company) — ultimate parent of VRIAC
• OneAmerica Financial (company) — acquired full-service retirement plan business
• American United Life Insurance Company (company) — affiliate of OneAmerica Financial
• $438 million (dollar_amount) — net income for nine months ended September 30, 2025
• $2,213 million (dollar_amount) — total revenues for nine months ended September 30, 2025
• $145,830 million (dollar_amount) — total assets as of September 30, 2025
• $2,287 million (dollar_amount) — total shareholder's equity as of September 30, 2025
• $175 million (dollar_amount) — additional paid-in capital from business acquisition

FAQ

Risk Factors

• Investment Performance and Market Volatility [high — market]: The company's profitability is significantly tied to investment income and market performance. Fluctuations in interest rates, equity markets, and credit markets can impact investment gains, losses, and the fair value of assets, as seen in the $28.8 billion in total investments as of September 30, 2025.
• Regulatory and Compliance Environment [medium — regulatory]: As a financial services company, VRIAC is subject to extensive regulation. Changes in regulations related to insurance, investments, and retirement plans could increase compliance costs or restrict business operations. The company operates in all states and territories, increasing the complexity of compliance.
• Operational and Technology Risks [medium — operational]: The company relies on complex IT systems for operations, record-keeping, and customer service. System failures, cybersecurity breaches, or inadequate disaster recovery plans could lead to financial losses and reputational damage.
• Interest Rate Sensitivity [medium — financial]: Changes in interest rates can affect the value of fixed-income investments and the cost of liabilities, particularly for products with guaranteed rates. The company holds $20.4 billion in fixed maturities, available-for-sale, as of September 30, 2025.
• Litigation and Legal Risks [low — legal]: The company faces potential litigation risks inherent in the financial services industry, including claims related to product sales, customer service, and fiduciary duties. Such litigation could result in significant financial and reputational costs.
• Credit Risk [medium — financial]: The company is exposed to credit risk through its fixed maturity investments, mortgage loans, and premium receivables. Deterioration in the credit quality of issuers or counterparties could lead to realized losses. Allowances for credit losses are maintained, such as $39 million for fixed maturities and $17 million for mortgage loans as of September 30, 2025.
• Separate Account Performance [high — market]: A significant portion of assets, $108.7 billion as of September 30, 2025, are held in separate accounts. The performance of these underlying investments directly impacts fee income and customer satisfaction, with market downturns posing a risk.

Industry Context

Voya Retirement Insurance and Annuity Company operates within the highly competitive U.S. retirement services and insurance market. Key trends include increasing demand for retirement income solutions, a shift towards fee-based advisory services, and ongoing consolidation. Companies are focusing on technology to enhance customer experience and operational efficiency, while navigating evolving regulatory landscapes and fluctuating interest rate environments.

Regulatory Implications

As a regulated insurance entity, VRIAC must comply with state insurance laws and federal regulations governing financial products. Changes in accounting standards, capital requirements, or consumer protection rules could impact operations and profitability. The company's significant holdings in separate accounts also subject it to regulations concerning investment products.

What Investors Should Do

1. Monitor Net Investment Income and Fee Income Growth
2. Analyze Separate Account Performance and Growth
3. Evaluate Shareholder's Equity Growth Drivers
4. Assess Risk Factors Related to Market Volatility and Interest Rates

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 Financial Results — Reported strong revenue growth of 11.8% to $2.21 billion and a 4.5% increase in net income to $438 million, indicating positive business momentum.
• 2025-09-30: Balance Sheet as of September 30, 2025 — Total assets grew to $145.83 billion, up 11.1%, with significant growth in separate accounts ($108.7 billion), and shareholder's equity increased substantially by 48.5% to $2.29 billion.
• 2025-01-01: Beginning of Fiscal Year 2025 — Marks the start of the period for which the financial results are reported, setting the baseline for year-over-year comparisons.
• 2025-03-31: Additional Paid-In Capital from OneAmerica Acquisition — Recognition of $175 million in additional paid-in capital, reflecting a strategic acquisition that bolsters the company's equity base.

Glossary

Separate Accounts

Accounts that hold assets and liabilities related to specific investment products, typically variable annuities, where the contract owner bears the investment risk and reward. (Assets in separate accounts grew to $108.7 billion, representing a significant portion of total assets and a key driver of fee income.)

Deferred Policy Acquisition Costs (DAC)

Costs incurred in acquiring new insurance contracts that are capitalized and amortized over the expected life of the contracts. (DAC increased to $1.265 billion, reflecting higher sales and acquisition activity, impacting profitability through amortization expense.)

Value of Business Acquired (VOBA)

The fair value of acquired insurance contracts at the acquisition date, amortized over the expected life of the contracts. (VOBA is recognized alongside DAC and impacts the company's earnings through amortization.)

Accumulated Other Comprehensive Income (AOCI)

A measure of unrealized gains and losses on certain investments and foreign currency translations that are not included in net income. (AOCI showed a negative balance of ($1.116 billion) as of September 30, 2025, but contributed positively to equity growth through a $528 million after-tax increase.)

Fixed Maturities

Debt securities such as bonds and notes that have a specified maturity date. (A significant portion of the company's investment portfolio, totaling $20.4 billion in available-for-sale fixed maturities as of September 30, 2025.)

Fair Value Option

An accounting election that allows certain financial instruments to be measured at fair value, with changes recognized in earnings. (The company uses the fair value option for certain fixed maturities, impacting how their value is reported and recognized in earnings.)

Embedded Derivatives

A component of a host contract (e.g., an insurance policy) that has derivative characteristics and is accounted for separately. (Changes in the fair value of embedded derivatives on product guarantees are a component of revenue, impacting net income.)

Year-Over-Year Comparison

Compared to the prior year, Voya Retirement Insurance and Annuity Company has demonstrated robust growth. Total revenues increased by 11.8% to $2.21 billion, driven by strong performance in net investment income and fee income. Net income saw a 4.5% rise to $438 million, indicating improved profitability. Total assets expanded by 11.1% to $145.83 billion, largely due to growth in separate accounts. Shareholder's equity experienced a significant surge of 48.5% to $2.29 billion, bolstered by strategic capital injections and positive other comprehensive income.

Filing Documents

• vriac-20250930.htm (10-Q) — 2955KB
• vriacexhibit103.htm (EX-10.3) — 557KB
• vriac2025q310-qex311.htm (EX-31.1) — 11KB
• vriac2025q310-qex312.htm (EX-31.2) — 11KB
• vriac2025q310-qex321.htm (EX-32.1) — 5KB
• vriac2025q310-qex322.htm (EX-32.2) — 5KB
• vriac-20250930_g1.jpg (GRAPHIC) — 145KB
• 0000837010-25-000059.txt ( ) — 16165KB
• vriac-20250930.xsd (EX-101.SCH) — 69KB
• vriac-20250930_cal.xml (EX-101.CAL) — 85KB
• vriac-20250930_def.xml (EX-101.DEF) — 523KB
• vriac-20250930_lab.xml (EX-101.LAB) — 825KB
• vriac-20250930_pre.xml (EX-101.PRE) — 675KB
• vriac-20250930_htm.xml (XML) — 3587KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements: Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations 6 Condensed Consolidated Statements of Comprehensive Income 7 Condensed Consolidated Statements of Changes in Shareholder's Equity 8 Condensed Consolidated Statements of Cash Flows 10 Notes to Condensed Consolidated Financial Statements: 11 1. Business, Basis of Presentation and Significant Accounting Policies 11 2. Investments 13 3. Derivative Financial Instruments 22 4. Fair Value Measurements 27 5. Deferred Policy Acquisition Costs and Value of Business Acquired 36 6. Reserves for Contract Owner Account Balances 37 7. Reinsurance 38 8. Separate Accounts 40 9. Accumulated Other Comprehensive Income (Loss) 41 10. Revenue from Contracts with Customers 43 11. Income Taxes 43 12. Financing Agreements 45 13. Commitments and Contingencies 45 14. Related Party Transactions 47

Management's Narrative Analysis of the Results of Operations and Financial Condition

Item 2. Management's Narrative Analysis of the Results of Operations and Financial Condition 48

Controls and Procedures

Item 4. Controls and Procedures 53

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 54

Risk Factors

Item 1A. Risk Factors 54

Exhibits

Item 6. Exhibits 54 Exhibit Index 55 Signature 56 2 Table of Contents NOTE CONCERNING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q, including "Risk Factors" and "Management's Narrative Analysis of the Results of Operations and Financial Condition" contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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) global market and geopolitical risks, including general economic conditions, impacts of a U.S. government shutdown, interest rates, inflation, tariffs imposed or threatened by the U.S. or foreign governments and our ability to manage such risks; (ii) liquidity and credit risks, including financial strength or credit ratings downgrades, requirements to post collateral, and availability of funds through lending programs; (iii) strategic and business risks, including our ability to maintain market share or otherwise manage our third party relationships; (iv) investment risks, including the ability to achieve desired returns or liquidate certain assets; (v) operational risks, including cybersecurity and privacy failures and our dependence on third parties; and (vi) tax, regulatory and legal risks, including limits on our ability to use deferred tax assets, changes in law, regulation or accounting standards, and our ability to comply with regulations. Factors that may cause actual results to differ from those in any forw

FINANCIAL INFORMATION (UNAUDITED)

PART I. FINANCIAL INFORMATION (UNAUDITED)

Financial Statements

Item 1. Financial Statements Voya Retirement Insurance and Annuity Company (A wholly owned subsidiary of Voya Holdings Inc.) Condensed Consolidated Balance Sheets September 30, 2025 (Unaudited) and December 31, 2024 (In millions, except share and per share data) September 30, 2025 December 31, 2024 Assets Investments: Fixed maturities, available-for-sale, at fair value (amortized cost of $ 21,623 and $ 19,743 as of 2025 and 2024, respectively; net of allowance for credit losses of $ 39 and $ 30 as of 2025 and 2024, respectively) $ 20,397 $ 17,848 Fixed maturities, at fair value using the fair value option 1,168 1,197 Equity securities, at fair value 74 66 Short-term investments 33 20 Mortgage loans on real estate (net of allowance for credit losses of $ 17 and $ 19 as of 2025 and 2024, respectively) 4,412 3,613 Policy loans 159 163 Limited partnerships/corporations 1,309 1,227 Derivatives 142 239 Securities pledged (amortized cost of $ 1,106 and $ 1,223 as of 2025 and 2024, respectively) 1,000 1,089 Other investments 117 94 Total investments 28,811 25,556 Cash and cash equivalents 320 516 Short-term investments under securities loan agreements, including collateral delivered 828 839 Accrued investment income 311 276 Premium receivable and reinsurance recoverable (net of allowance for credit losses of $ 0 as of 2025 and 2024) 2,460 2,560 Deferred policy acquisition costs ("DAC") and Value of business acquired ("VOBA") 1,265 907 Deferred income taxes 502 662 Other assets (net of allowance for credit losses of $ 0 as of 2025 and 2024) 2,638 1,396 Assets held in separate accounts 108,695 98,579 Total assets $ 145,830 $ 131,291 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 4 Voya Retirement Insurance and Annuity Company (A wholly owned subsidiary of Voya Holdings Inc.) Condensed Consolidated Balance Sheets September 30, 2025 (Unaudited) and December 31, 2024 (In millions, e

Business

Business Voya Retirement Insurance and Annuity Company ("VRIAC") is a stock life insurance company domiciled in the State of Connecticut. VRIAC, together with its wholly owned subsidiaries (collectively, the "Company"), provide financial products and services in the United States. VRIAC is authorized to conduct its insurance business in all states and in the District of Columbia, Guam, Puerto Rico and the Virgin Islands. VRIAC is a direct, wholly owned subsidiary of Voya Holdings Inc. ("Parent"), which is a direct, wholly owned subsidiary of Voya Financial, Inc. ("Voya Financial"). The Company derives its revenue mainly from (a) Investment income earned on investments, (b) Fee income generated from separate account assets supporting variable options under variable annuity contract investments, as designated by contract owners, (c) Premiums, (d) Net gains (losses) on investments and changes in fair value of embedded derivatives on product guarantees, and (e) Other revenue which includes certain other fees. The Company's benefits and expenses primarily consist of (a) Interest credited and other benefits to contract owners/policyholders, (b) Operating expenses, which include expenses related to the selling and servicing of the various products offered by the Company and other general business expenses, and (c) Amortization of DAC and VOBA. The Company offers annuity contracts that include a variety of funding and payout options for employer-sponsored retirement plans as well as some individual plans qualified under Internal Revenue Code Sections 401, 403, 408, 457 and 501, as well as non-qualified deferred compensation plans and related services. The Company's products are offered primarily to small and mid-sized corporations, public and private school systems, higher education institutions, hospitals and healthcare facilities, religious and other not-for-profit organizations, state and local governments and individuals. The Company also provides stable value i

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