Voya Monetary, Inc. and OneAmerica Monetary, Inc. have introduced a definitive settlement for Voya to amass OneAmerica’s full-service retirement plan enterprise.
The acquisition will add roughly $60 billion in belongings underneath administration (AUA) to Voya’s Wealth Options division, elevating its whole AUA to $580 billion. The deal is anticipated to extend Voya’s retirement plan protection to 60,000 and participant pool to 7.9 million. The upfront buy value for the deal is $50 million, with deferred consideration of as much as $160 million payable within the second quarter of 2026, contingent on plan persistency and transition incentives.
The acquisition is projected to ship at the least $75 million of pre-tax adjusted working earnings and greater than $200 million of web income within the first 12 months post-closing. Upon the deal’s closure, a majority of OneAmerica’s full-service retirement plan workers will be a part of Voya’s office options group. The acquisition will improve Voya’s rising and mid-market plan sponsor segments and introduce new capabilities corresponding to worker inventory possession plan (ESOP) administration and new distribution partnerships.
The sale doesn’t embody OneAmerica’s institutional markets enterprise, which covers its pension threat switch operations.
Voya expands retirement companies portfolio
Heather Lavallee, CEO of Voya Monetary, remarked, “This announcement is an thrilling alternative so as to add scale and new capabilities to our Wealth Options enterprise.
It aligns with our technique to supply enhanced office advantages and financial savings options, supporting improved monetary outcomes for our prospects.”
Scott Davison, Chairman, President, and CEO of OneAmerica Monetary, acknowledged, “For 60 years, we’ve got helped our prospects face on daily basis with better certainty. Voya is the agency to proceed delivering on our dedication to serving the retirement market. This settlement gives a major alternative for our prospects and associates as they transition and proceed to develop with Voya.”
Rob Grubka, CEO of Office Options at Voya Monetary, added, “This acquisition aligns with Voya’s devoted deal with buyer satisfaction and expands our potential to ship well being, wealth, and funding options by means of the office.
Combining the breadth of OneAmerica’s retirement capabilities with our present suite reinforces our dedication to supporting contributors throughout all market segments.”
The transaction is anticipated to shut on January 1, 2025, pending customary closing situations, together with regulatory approvals. Voya intends to supply additional particulars throughout its third-quarter 2024 earnings name. Recordkeepers like Voya and OneAmerica are going through charge stress and evolving wants from plan sponsors, advisers, and consultants.
Plan adviser Grant Ellis factors out that recordkeeper consolidation can improve capabilities and cut back prices for shoppers however also can pressure the programs, personnel, and operations of the concerned companies, resulting in attainable buyer expertise disruptions. Voya’s Grubka believes that the consolidation of advantages right into a single platform is crucial for environment friendly and efficient development. He emphasizes the necessity to change how advantages have been historically segmented, stating, “We’ve acquired a much wider product portfolio now to distinguish that have and the outcomes for an worker.”