Voya Financial (VOYA) risk factors, FY2024 10-K

Other

1. 01Conditions in the global capital markets and the economy generally, as well as geopolitical events, have affected and may continue to affect our business and results of operations
2. 02Our business and results of operations are affected by conditions in the global capital markets and the economy generally, and are vulnerable to general economic disruption, decreases in asset prices, increases in market volatility and reductions in the availability of credit
3. 03Even in the absence of a market downturn, our retirement, investment and insurance products, as well as our investment returns and our access to and cost of financing, are sensitive to equity, fixed income, real estate and other market fluctuations and general economic and political conditions
4. 04The level of interest rates may adversely affect our profitability, particularly during a period of rapidly increasing interest rates or in the event of a recurrence of a low interest rate environment
5. 05Unfavorable developments in interest rates, credit spreads and policyholder behavior may result in adverse financial consequences related to our stable value products, and our hedging program and risk mitigation features may not successfully offset these consequences
6. 06Our risk management policies and procedures, including hedging programs, may prove inadequate for the risks we face, which could adversely affect our business and financial condition or result in losses
7. 07A downgrade or a potential downgrade in our financial strength or credit ratings may result in a loss of business and adversely affect our results of operations and financial condition
8. 08The inability of counterparties to meet their financial obligations could have an adverse effect on our results of operations
9. 09Requirements to post collateral or make payments related to changes in market value of specified assets may adversely affect our liquidity
10. 10Our participation in securities lending and repurchase programs subjects us to potential liquidity and other risks
11. 11A portion of our institutional funding originates from the Federal Home Loan Bank system, which subjects us to liquidity risks
12. 12As holding companies, Voya Financial, Inc. and Voya Holdings depend on the ability of their subsidiaries to transfer funds to them to meet their obligations
13. 13Our investment portfolio is subject to several risks that may diminish the value of our invested assets and the investment returns credited to customers, which could reduce our sales, revenues and results of operations
14. 14Some of our investments are relatively illiquid and in some cases are in asset classes that may experience significant market valuation fluctuations

Strategic and Business Risks

1. 15Because we operate in highly competitive markets, we may not be able to increase or maintain our market share, which may have an adverse effect on our results of operations
2. 16Further, the profitability of our engagements with clients may not meet our expectations due to unexpected costs, cost overruns, early contract terminations, unrealized assumptions used in our contract bidding process or the inability to maintain our prices in light of any inflationary circumstances
3. 17As further described under –Organizational History and Structure–Recent Acquisitions in Part I, Item 1. of this Annual Report on Form 10-K, we completed several acquisitions in 2023 and early 2025
4. 18acquisitions create unanticipated difficulties for our business, our results of operations and financial condition could be adversely affected, including impairment to the value of goodwill and intangible assets which has materially increased as a result of our most recent acquisitions
5. 19Our products and services are complex and are frequently sold through intermediaries, and a failure to properly perform services, the misrepresentation of our products or services or a loss or significant change in these relationships may have an adverse effect on our revenues and income
6. 20or present investment performance in the investment products we manage will be indicative of future performance. Any poor investment performance may negatively impact our revenues and income
7. 21We may face significant losses if our actuarial assumptions, including mortality rates, morbidity rates, persistency rates or other underwriting assumptions, are not accurate, differ significantly from our pricing expectations or change in the future
8. 22Reinsurance subjects us to the credit risk of reinsurers and may not be available, affordable or adequate to protect us against losses
9. 23Loss of reserve credit by an insurance subsidiary would require it to establish additional statutory reserves and would result in a decrease in the level of its capital, which could have a material adverse effect on our profitability, results of operations and financial condition
10. 24If our clients are not satisfied with our services, we may face additional cost, loss of profit opportunities and damage to our reputation or legal liability

Operational Risks

1. 25Interruption or other operational failures in telecommunication, cybersecurity, information technology and other operational systems, including as a result of human and process error or a failure to maintain the security, integrity, confidentiality, or privacy of such systems, could harm our business
2. 26changes, human or software error, upgrade disruptions and capacity constraints. In addition, such disruptions could be the result of physical or electronic intrusions, viruses or other attacks
3. 27Any failure to protect the privacy and confidentiality of customer information could adversely affect our reputation and adversely affect our business, financial condition and results of operations
4. 28expenses and face other difficulties in complying with an increasing number of legal obligations with respect to data privacy and security, or with balancing competing requirements that may be inconsistent across jurisdictions
5. 29Our business success depends on our ability to attract and retain qualified employees
6. 30The occurrence of natural or man-made disasters may adversely affect our results of operations and financial condition
7. 31If we experience difficulties arising from outsourcing relationships, our ability to conduct business may be compromised, which may adversely affect our business and results of operations
8. 32We depend on licenses of third-party software to provide our services. The inability to maintain these licenses or errors in the software we license could result in increased costs, or reduced service levels, which would adversely affect our business
9. 33Our international operations may result in increased risks to our business

Tax, Regulatory and Legal Risks

1. 34We may be required to reduce the carrying value of our deferred income tax assets or establish an additional valuation allowance against the deferred income tax assets
2. 35Our ability to use certain beneficial deferred tax assets may become subject to limitations
3. 36Our business and those of our affiliates are heavily regulated and our products and services are subject to extensive regulation. Changes in regulation or the application of regulation or the failure to meet complex product requirements may reduce our profitability
4. 37Regulatory investigations and enforcement actions may reduce profitability
5. 38A decrease in the RBC ratio (as a result of a reduction in statutory surplus or increase in RBC requirements) of our insurance subsidiaries could result in increased scrutiny by insurance regulators and rating agencies and have a material adverse effect on our business, results of operations and financial condition
6. 39Litigation may adversely affect our profitability and financial condition
7. 40Changes in accounting standards could adversely impact our reported results of operations and our reported financial condition