Alain Karaoglan, Executive Vice President and COO of Voya Financial Inc (VOYA), says the company has set aggressive targets to improve its return on equity. He says management is working to achieve 100 to 110 basis points annually.
“We have outlined 30-plus specific initiatives to improve our return on equity, and what I can tell you is — fortunately or unfortunately — there is no one silver bullet. Every one of our businesses has to improve its return on equity,” Karaoglan says. “To guide us, we have three financial metrics that are very critical and drive what we do: risk-adjusted returns; distributable earnings, which is essentially free cash flow that you can generate; and then sales at or above our internal rates of return.”
Karaoglan says each of Voya’s business segments — retirement solutions, investment management and insurance solutions — will each follow different paths to ROE improvement. But, he says overall the company is on track to achieve its target of 13% return on equity.
“So far in 2013 and the first quarter of 2014, we’re ahead of that, so we’re encouraged by that, but we need to continue on that path,” Karaoglan says. “Improving our performance is a key part of our vision to be America’s Retirement Company and to fulfill our mission of providing a secure financial future — one individual, one family, one institution at a time.”
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