Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Lincoln National (LNC) , which belongs to the Zacks Insurance - Life Insurance industry.This insurance and retirement business has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 17.69%.For the most recent quarter, Lincoln National was ...

Core Viewpoint - Lincoln National Corporation (LNC) has formed a strategic partnership with Bain Capital, involving an $825 million investment for a 9.9% equity stake, which values LNC shares at $44 each, a 25% premium over the recent average [1][3] Group 1: Partnership Details - Bain Capital will manage a portion of Lincoln's assets under a 10-year, non-exclusive investment management agreement, allowing LNC to collaborate with other firms [2] - The partnership aims to support Lincoln's strategic goals by providing capital and access to high-quality private assets, enhancing LNC's multi-manager platform [3] Group 2: Financial Implications - Lincoln intends to utilize the funds to expand spread-based earnings, improve asset management capabilities, optimize its legacy life insurance portfolio, and reduce financial leverage to a target of 25% [3] - LNC's long-term debt was $5.9 billion at the end of 2024, a 2.8% increase year-over-year, with a long-term debt to capital ratio of 41.5%, significantly above the industry average of 14.3% [4] Group 3: Market Performance - LNC shares increased by 14% following the announcement of the partnership, and have gained 12.6% over the past year, outperforming the industry growth of 9.4% [1][5]

Lincoln National Corporation (LNC) recently introduced the first product in its upcoming Elite Indexed Universal Life (IUL) Portfolio, Lincoln WealthBuilderSM IUL. Once fully launched, the Elite IUL Portfolio will include three distinct products, starting with Lincoln WealthBuilderSM IUL, designed to align with varying risk profiles and long-term financial goals by providing access to enhanced volatility-controlled indices (VCIs) based on the S&P 500, incorporating traditional and uncapped indexed account o ...

Lincoln National Corporation (LNC) is benefiting from strong Annuities and Group Protection segment performance, strategic product shifts, expense management and a robust financial position.LNC’s Zacks Rank & Price PerformanceLincoln National currently carries a Zacks Rank #3 (Hold).The stock has gained 16.5% in the past six months, outperforming the industry’s decline of 0.7%. The finance sector and S&P 500 Index grew 5.4% and declined 0.7%, respectively, in the same time frame.LNC 6-Month Price Performanc ...

Core Insights - Lincoln National Corporation (LNC) has partnered with Bain Capital and Partners Group to launch two private markets-focused funds, expected to be available by late 2025 [1][2][3] Group 1: Fund Offerings - The partnership with Bain Capital will result in an evergreen fund focused on a globally diversified portfolio of private credit investments, including direct lending, asset-based finance, and structured credit [2] - The collaboration with Partners Group will introduce an evergreen fund aimed at providing exposure to a diversified private markets royalty portfolio, utilizing a relative value strategy across established and emerging sectors [3] Group 2: Strategic Benefits - The launch of these funds reflects Lincoln National's commitment to meet evolving investment needs, enhancing direct private market investment opportunities for clients [4] - The new offerings are expected to increase sales for Lincoln National, contributing positively to its solutions portfolio [6] Group 3: Market Context - There is a growing demand for private market investments among individual investors seeking strong returns and diversification, making Lincoln National's announcement timely [5]

Core Insights - Albert Anthony is a Croatian-American media personality who has gained over 1,000 followers on investor platforms since 2023, focusing on markets and stocks [1] - He is set to launch a new book titled "Financial Markets: Growing A Dividend Income Portfolio" in 2025, coinciding with an ongoing series of articles on the same topic [1] - Albert Anthony has a background in management and information systems, having worked in the IT department of a top-10 financial firm [1] Company Overview - Albert Anthony & Co. is a sole proprietorship registered in Austin, Texas, and is wholly owned by Albert Anthony [1] - The company does not provide personalized financial advisory services but offers general market commentary based on publicly available data [1] Investment Focus - Albert Anthony has launched the Future Investor Fund, which aims to build a dividend portfolio [1] - The brand emphasizes a focus on dividend income as a key investment strategy [1]

Group 1 - The individual has nearly two decades of experience in the logistics sector and a decade in stock investing and macroeconomic analysis, focusing on ASEAN and NYSE/NASDAQ stocks, particularly in banks, telecommunications, logistics, and hotels [1] - Since 2014, the individual has been trading on the Philippine stock market, initially investing in blue-chip companies and later diversifying across various industries and market capitalizations [1] - In 2020, the individual entered the US market after gaining experience through a relative's trading account, leading to the decision to open their own account and write for Seeking Alpha to share knowledge [1] Group 2 - The individual holds investments in US banks, hotels, shipping, and logistics companies, using analyses from Seeking Alpha to compare with the Philippine market [1]

Interest Rates and Economic Environment - The Federal Reserve increased the federal funds rate target range to 5.25% to 5.50% in July 2023, with subsequent decreases announced in December 2024 to a range of 4.25% to 4.50%[180]. - A decline in market interest rates could reduce the company's return on investments and may necessitate strengthening recorded policy liabilities, impacting net income[178]. - Increased interest rates may lead to a decline in the fair value of fixed-income securities, adversely impacting the company's capital position[181]. - The company experienced increased outflow rates in its Annuities business during 2024, primarily due to a rise in full surrenders linked to the elevated interest rate environment[182]. Regulatory and Legislative Changes - Legislative and regulatory changes could impact the company's insurance subsidiary capital requirements and profitability, as seen with the NAIC's temporary guidance approved in August 2023[191]. - The SEC adopted extensive rule changes in March 2024 requiring companies to include climate-related disclosures in their reports, with California's new laws starting in 2026 imposing additional requirements[202]. - The Inflation Reduction Act established a 15% corporate alternative minimum tax for corporations with average adjusted net income exceeding $1.0 billion, effective for tax years beginning after December 31, 2022[213]. - Changes in tax laws could increase corporate taxes and negatively affect financial results, with potential new taxes being imposed[212]. - The company is monitoring potential changes in regulations regarding economic scenario generators, which could significantly affect statutory reserves and required capital for certain products[191]. - Regulatory scrutiny has increased, with potential fines and penalties impacting business operations and financial condition[206]. - The company faces risks related to compliance with privacy laws and regulations, which could result in increased costs and potential legal liabilities[193]. - The use of AI and big data in business practices is under regulatory scrutiny, which may lead to increased compliance costs and changes in business operations[200]. - The company is subject to evolving ESG standards, which may lead to reputational risks and increased operational costs[202]. Financial Performance and Risks - Changes in equity markets significantly affect the profitability of the company's products, with strong equity markets leading to higher account balances and increased fee income[183]. - The company’s hedging strategies may not fully offset changes in the carrying value of guarantees on certain products, potentially resulting in volatility in financial results[186]. - Adverse capital and credit market conditions may affect liquidity needs and access to capital, potentially impacting profitability[223]. - The inability of subsidiaries to pay dividends could harm the company's ability to meet obligations due to regulatory restrictions[225]. - A decrease in capital and surplus may lead to a downgrade in credit and insurer financial strength ratings[228]. - The RBC ratio is influenced by statutory surplus amounts and product mix, with potential increases in reserves during equity market declines[230]. - In November 2023, S&P changed its RBC capital adequacy model, affecting the statutory capital required to maintain ratings[231]. - The company faces legal and regulatory actions that could result in substantial financial liabilities and harm to reputation[216]. - The insurance subsidiaries' earnings impact their surplus, which constrains capital growth and dividend payments[227]. - The company recorded a goodwill impairment of $634 million related to its Life Insurance segment in Q3 2022[242]. Reinsurance and Mortality Risks - As of December 31, 2024, the company ceded $1.0 trillion of life insurance in force to reinsurers for reinsurance protection[255]. - The collectability of reinsurance is dependent on the solvency of reinsurers, and insolvency could adversely affect financial results[256]. - Significant adverse mortality experience may lead to higher reinsurance costs or reduced availability of coverage[247]. - Catastrophic events, including pandemics, could materially impact liabilities for contract holder claims and overall financial condition[250]. - Changes in assumptions for reserves could result in inadequate reserves for future policy benefits and claims[235]. - The company has faced numerous rate increase actions on in-force business from reinsurers, which may affect profitability and could lead to additional reserves being required[257]. Investment and Asset Management - As of December 31, 2024, 39% of the carrying value of the company's total investments consisted of illiquid asset classes, which may pose challenges in selling these holdings in a timely manner[281]. - The company faces default risk on mortgage loans, which are primarily collateralized by commercial properties, potentially impacting profitability[285]. - Increased default rates in mortgage loan investments could materially affect the company's business and financial condition[285]. - The company has exposure to various industries and counterparties, increasing credit risk due to potential defaults[286]. - Collateral requirements related to declines in market value of specified assets may adversely affect the company's liquidity[287]. Operational and Competitive Challenges - The company completed the sale of its wealth management business in May 2024, which may impact future operations and financial results[272]. - The company may face significant operational disruptions if third-party vendors experience difficulties, which could impair its ability to serve customers[270]. - The company’s financial results could be adversely affected by unforeseen liabilities or performance issues following acquisitions[271]. - The company’s ability to attract and retain qualified employees is critical, with intense competition for talent impacting its operations[259]. - Intense competition in the financial services industry could negatively impact the company's profitability and market share[288]. - Independent sales representatives distributing the company's products may also sell competitors' products, affecting sales performance[290]. - Competitors may offer more attractive products or higher commission rates, leading to a potential loss of business for the company[291]. Cybersecurity and Liability Risks - The company has not experienced a material security breach to date, but acknowledges the increasing sophistication of cyberattacks and the potential for future incidents[264]. - The company’s cyber liability insurance may not be sufficient to cover all losses resulting from cyberattacks or security breaches[268]. - The company may incur substantial liability if found to infringe on third-party intellectual property rights, which could adversely affect its business[261]. - The company faces risks related to compliance with privacy laws and regulations, which could result in increased costs and potential legal liabilities[193].

Financial Data and Key Metrics Changes - Full-year adjusted operating income increased to its highest level in three years, with a 16% improvement compared to 2023, reaching over $1.2 billion [34][65] - Fourth-quarter adjusted operating income available to common stockholders was $332 million, or $1.91 per share [32][101] - GAAP net income for the quarter was reported at $1.7 billion, or $9.63 per diluted share [34][103] Business Line Data and Key Metrics Changes - Group protection business delivered a record fourth quarter with earnings more than doubling year over year, achieving a margin of 8.4% [10][20] - Annuities reported fourth-quarter operating income of $303 million, a 14% increase year over year, driven by higher account balances and increased spread income [114] - Retirement plan services (RPS) saw a 13% increase in quarterly earnings year over year, with total deposits up 25% for the full year [26][95] Market Data and Key Metrics Changes - Total annuity sales reached $3.7 billion in the fourth quarter, with full-year sales increasing by 7% compared to the prior year, marking the highest level since 2019 [83] - Group sales increased by 17% year over year in the fourth quarter, achieving a new record, while full-year sales were up 24% [91] - RPS delivered its tenth consecutive year of positive net flows, with first-year sales growing by nearly 70% for the full year [95][96] Company Strategy and Development Direction - The company aims to build a strong capital foundation, optimize its operating model, and improve free cash flow while expanding its franchise [5][76] - Strategic initiatives include the sale of the wealth management business and the launch of a Bermuda-based reinsurance subsidiary [6][65] - The focus is on delivering profitable growth by evolving the annuity business to a more balanced mix and optimizing the life insurance product portfolio [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving longer-term financial and strategic objectives, supported by strong execution and favorable macro conditions [29][68] - The company anticipates some moderation in the record low disability incidence experienced in 2024, but expects year-over-year margin expansion driven by strategic actions [42][112] - The outlook for 2026 has been improved, with expectations for free cash flow conversion widened to 45% to 60% [67] Other Important Information - The company ended 2024 with an estimated RBC ratio of over 430%, providing added financial flexibility [6][77] - The alternative investments portfolio delivered over an 11% annualized return in the fourth quarter [32][102] - The company is focused on optimizing its investment strategy and enhancing the quality of its portfolio assets [57][58] Q&A Session Summary Question: What are the expectations for the group business in 2025? - Management expects year-over-year margin expansion driven by strategic actions and ongoing improvement in mortality, sustaining a similar level of earnings in 2025 compared to 2024 [42][112] Question: How is the company addressing the challenges in the life insurance segment? - The company is focusing on right-sizing the expense base and targeting growth in products with more risk sharing, which are expected to strengthen the underlying fundamentals of the business [56][88] Question: What is the outlook for annuities moving forward? - The annuities business is expected to continue its momentum, supported by a diversified product mix and the growth of spread-based products [16][49]

Earnings Supplement Fourth Quarter 2024 February 6, 2025 Forward-Looking Statements – Cautionary Language Certain statements made in this press release and in other written or oral statements made by Lincoln or on Lincoln's behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or i ...