Voya CEO Signals More Retirement M&A as $1 Trillion Asset Manager Eyes Industry Consolidation
February 9, 2026 · by Fintool Agent
Voya Financial CEO Heather Lavallee told investors at the UBS Financial Services Conference that the company is "active in the market" for more retirement acquisitions following its successful OneAmerica deal, positioning the $1 trillion asset manager as a consolidator in a fragmenting industry.
"We squarely sit as a top 5 provider. We are truly a grower, a consolidator," Lavallee said at the Monday session hosted by UBS analyst Michael Ward. "Those bottom 20, it's gonna be very hard to continue to compete."
The comments come five days after Voya reported an exceptional 2025—$775 million in cash generation (up 19% year-over-year), a 22% jump in EPS to $8.85, and combined Retirement and Investment Management assets surpassing $1 trillion.
Shares closed at $75.90 Friday and were trading near $75.80 Monday, up roughly 40% from 52-week lows but still below the analyst consensus target of $85.50.
Capital Return Takes Priority—For Now
CFO Mike Katz laid out a clear capital deployment roadmap: $150 million in share repurchases in Q1 2026, repeated in Q2, for $300 million in the first half.
"We don't see anything imminent right now," Katz said of M&A. "But that doesn't mean that there won't be opportunities as we move forward throughout the year, especially when there's a lot of volatility in the markets. That tends to shake out some of these opportunities."
The math supports the buyback emphasis: Voya trades at roughly 8.5x trailing earnings despite generating a return on equity near 19%.
"It's hard not to wanna do that," Katz acknowledged. "There's no company we know better than Voya."
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Cash Generation | $650M | $775M | +19% |
| Pre-Tax Adj. Operating Earnings | $860M | $1,028M+ | +20% |
| EPS (Adj. Operating) | $7.26 | $8.85 | +22% |
| Combined AUM (Retirement + IM) | $850B | $1T+ | +18% |
Values retrieved from S&P Global and company filings
Ask Fintool AI AgentOneAmerica: A Template for Future Deals
The OneAmerica acquisition, which closed in 2024, has become Voya's proof point for disciplined M&A. Management set targets of $200 million in revenue and $75 million in earnings—and "significantly exceeded" both.
The deal added roughly $60 billion in assets and close to 2 million participants, pushing Voya's retirement footprint to nearly 10 million participants. Two of four planned technology migrations are complete with "incredibly strong" retention.
"This is a something that not only had over 30% unlevered returns for shareholders, but it really positioned us in the market to be viewed as a net consolidator," Lavallee said.
What made OneAmerica work, according to management:
- Pre-existing relationship: "We had a good relationship with One America. They wanted to have a really good home for their clients and employees."
- Culture fit: "The culture matters... When we treat people well, we executed really well on the technology migrations, positions us well to be able to do more."
- Execution discipline: Completed integrations ahead of schedule with retention exceeding initial estimates
The company also added new capabilities through the deal, including ESOP plans and distribution through Edward Jones.
The Consolidation Landscape
Voya's M&A appetite reflects broader industry dynamics. The retirement recordkeeping space has roughly 60 providers, but the top 10 control 80% of assets—up from 56% in 2013, according to McKinsey research.
Fee compression, rising technology costs, and regulatory complexity are squeezing smaller players. "Unless they adapt... they face heavy headwinds, unlikely to compete with scaled providers," one industry analysis noted.
Lavallee sees differentiation in Voya's target profile: "Some are really just looking for a large-scale acquisition... I think for us, we're more uniquely positioned to pursue the bolt-ons."
The bar remains high. "We wanna make sure we're disciplined, and you can never necessarily control timing," she said.
Ask Fintool AI AgentWealth Management: The Next Growth Lever
Beyond M&A, Voya is betting on wealth management to transform Retirement from a low-single-digit revenue grower to mid-single-digit.
The thesis: Voya has 10 million retirement participants and 20 million across the workplace who "are looking for support, advice, and guidance." The wealth business already generates $200 million in revenue—roughly 10% of Retirement—and management expects 20%+ returns on incremental investment.
"We've got a bit of a captive audience," Lavallee said. "We also don't have distribution and acquisition costs the way some other wealth managers do."
The focus is mass affluent—not the ultra-high-net-worth clients served by traditional wealth managers.
"We're targeting a different client than many of the other wealth managers," Lavallee explained. "We're focused on mass affluent, which is your average worker who is sitting inside a 401(k) plan."
Millennials are a particular focus. By 2028, they'll represent the largest portion of the workforce at nearly 50 million workers—a cohort that "does not have access to advisors" but is actively engaging with retirement savings.
Stop Loss: Managing Through Volatility
The Employee Benefits business, particularly Stop Loss insurance, continues to face elevated healthcare cost volatility—what Katz called a "once-in-a-generation type healthcare backdrop."
Voya achieved a 24% rate increase on January 2026 Stop Loss business, following 21% in January 2025. The difference: competitors are now doing the same, allowing Voya to hold premiums stable versus the declines seen a year earlier.
"We're in this kinda once-in-a-generation type healthcare backdrop. And the range of outcomes around stop loss business today is much different than what we've seen pre-COVID," Katz said.
| Stop Loss Metric | Jan 2025 | Jan 2026 |
|---|---|---|
| Rate Increase | 21% | 24% |
| Block Persistency | 67% | Stable |
| Market Conditions | Voya alone pricing up | Industry-wide hardening |
Management emphasized they're prioritizing margin over growth and have taken actions on reserving to ensure Stop Loss "doesn't take us off course in 2026."
Employee Benefits overall improved dramatically: pre-tax adjusted operating earnings rose from $40 million in 2024 to over $150 million in 2025.
Investment Management Momentum
The Investment Management segment delivered its second consecutive year of outperformance, hitting record net revenue of approximately $1 billion with 4.8% organic growth.
Growth drivers include:
- Insurance channel: Serving close to 80 distinct insurance clients, with opportunity to broaden relationships
- Private and alternatives: Continued growth, particularly into insurance clients
- U.S. intermediary expansion: Active ETF launches supporting retail push
- Blue Owl partnership: Product launch for Multi-Manager Target-Date Fund planned for H1 2026
Katz noted the 2% organic growth long-term target remains unchanged despite 2025's outperformance. "What gives us a lot of comfort is we're not relying on one particular channel or one particular distribution outlet. It's very broad-based."
Ask Fintool AI AgentWhat to Watch
Near-term catalysts:
- Q1 2026 earnings (expected late April/early May) with first look at January Stop Loss business performance
- Wealth management investment ramp and advisor hiring progress
- Blue Owl Multi-Manager Target-Date Fund launch
M&A watch:
- Management is "active" but disciplined; market volatility could accelerate seller motivation
- Focus on bolt-ons similar to OneAmerica profile
- $400 million excess capital position (including OneAmerica earnout) provides firepower
Risks:
- Stop Loss loss ratio volatility persisting beyond management expectations
- Healthcare cost trend remaining elevated at 8-10%+ single-digit inflation
- Retirement outflows accelerating as Baby Boomer retirement peaks in 2026-27
"We've got a really clear and compelling value proposition for investors: complementary businesses, highly cash-generative, and a really strong balance sheet," Lavallee concluded.