Voya Financial will stop all new life insurance sales on Dec. 31 and retain its in-force block, the company announced this week.
The decision “supports Voya’s focus on its higher-growth, higher-return, capital-light businesses,” the company said in a news release accompanying third-quarter results. “Retaining the block provides value to shareholders, including earnings and capital diversification and at least $1 billion of expected free cash flow from Individual Life over the next five to six years.”
In February, Voya said it would decide the fate of its life business after conducting a review.
Voya reported third-quarter profit of $142 million.
On a per-share basis, the New York-based company said it had profit of 87 cents. Earnings, adjusted for non-recurring costs, came to $1.34 per share.
The results beat Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of $1.18 per share.
The retirement, investment and insurance company posted revenue of $2.25 billion in the period. Its adjusted revenue was $163 million, which fell short of Street forecasts. Eleven analysts surveyed by Zacks expected $297.8 million.
Voya shares have decreased 16 percent since the beginning of the year. In the final minutes of trading on Tuesday, shares hit $41.33, an increase of roughly 2 percent in the last 12 months.
This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on VOYA at https://www.zacks.com/ap/VOYA