Voya Financial slides after lifting loss ratio forecast for stop loss business

Voya Financial

10/12/2024 18:33

** Shares of workplace benefits provider Voya Financial
 VOYA.N  slide as much as 8.6%; last down 7.2% at $74
    ** VOYA late on Monday said it expects the loss ratio for
January stop-loss policy year to be between 90% and 105%, higher
than its previous estimate of 86%
    ** Stop-loss insurance provides coverage for mid-sized to
large employers that self-insure their medical claims
    ** Higher loss ratio outlook driven by a increased claims
frequency across most categories, particularly in cancer
diagnoses in younger ages - VOYA
    ** Co also expects 2025 loss ratio for stop-loss business to
be above its long-term target of 77% and 80%       
    ** Loss ratio reflects the total losses compared to premiums
earned
    ** Multiple Wall Street brokerages cut their PT on VOYA
after the weaker stop loss outlook   
    ** KBW says stop-loss results have deteriorated far more
than expected, reducing near-term confidence in VOYA      
    ** As of last close, VOYA shares up 9.3% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))