Financial Performance - As of September 30, 2025, Lincoln National Corporation reported a total investment fair value of $103.813 billion, with 92% priced using observable inputs[288]. - As of September 30, 2025, the net income was $445 million, compared to a net loss of $528 million for the same period in 2024[324]. - Income from operations is emphasized as a key profitability measure, reflecting ongoing business performance[276]. - Income from operations for the nine months ended September 30, 2025, was $886 million, compared to $857 million for the same period in 2024, indicating a growth of 3.4%[329]. - Operating revenues for the three months ended September 30, 2025, were $1,270 million, compared to $1,195 million for the same period in 2024, reflecting an increase of 6.3%[329]. - The company experienced a credit loss-related adjustment of $(38) million for the three months ended September 30, 2025[324]. - The annual assumption review resulted in a net income impact of $(50) million for the three months ended September 30, 2025, driven by updates to policyholder behavior assumptions[314]. Investment and Asset Management - The company maintains its investment holdings throughout credit cycles due to its strong capital position and the long-term nature of its liabilities[401]. - The investment portfolio is diversified across asset classes, including fixed maturity securities, mortgage loans, and other long-term investments, which are aligned with the liabilities of the products supported[400]. - The company emphasizes a balanced investment approach focusing on generating sufficient current income net of income tax to meet obligations to customers and general liabilities[399]. - Total investments as of September 30, 2025, reached $136,102 million, an increase from $129,918 million as of December 31, 2024, representing a growth of approximately 4.5%[398]. - The estimated fair value for all private placement securities was $22.4 billion as of September 30, 2025, representing 16% of total investments[413]. - The company’s investment strategy includes evaluating expected returns and risks of each asset class to support effective asset-liability management[399]. Business Segments - The company operates through four business segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services[278]. - Annuities segment reported income of $310 million for the three months ended September 30, 2025, up from $301 million in 2024[324]. - Group Protection segment income increased to $149 million for the three months ended September 30, 2025, compared to $109 million in 2024[324]. - Total operating revenues for Life Insurance reached $1,610 million for the three months ended September 30, 2025, compared to $1,589 million in 2024, reflecting a growth of 1.3%[344]. - Operating revenues for Retirement Plan Services for the three months ended September 30, 2025, totaled $343 million, up from $335 million in 2024[373]. Risk Management - The company faces risks from adverse economic conditions, including low interest rates that could reduce investment income and profitability[270]. - The company has identified various risks related to changes in interest rates, which could affect profitability and capital position[285]. - The company conducts a comprehensive review of actuarial assumptions quarterly, with significant assumptions including mortality rates, morbidity, and policyholder behavior[292]. - The company utilizes derivative instruments to hedge exposure to equity market and interest rate changes associated with GLB and GDB riders[304]. Capital and Liquidity - The company’s liquidity and capital resources are influenced by the ability of subsidiaries to pay dividends, which is critical for meeting obligations[270]. - LNC's long-term debt stood at $5.772 billion as of September 30, 2025, after accounting for various repayments and issuances[453]. - Total cash dividends and return of capital from subsidiaries amounted to $615 million for the nine months ended September 30, 2025, up from $410 million in 2024[443]. - LNC made capital contributions of $967 million to subsidiaries for the nine months ended September 30, 2025, including $800 million to LNL in Q2 2025[450]. Market Conditions - The Federal Reserve reduced the federal funds rate target range to 3.75% to 4.00% in October 2025, impacting the interest rate environment[284]. - A decrease of 25 basis points in interest rates could lead to a hypothetical effect on net income of $(400) million, whereas an increase of 25 basis points would result in a $375 million increase[308]. - The hypothetical effect on net income from a -10% equity market return is estimated at $(825) million, while a +10% return would result in a $725 million increase[308]. Shareholder Returns - Total cash returned to common stockholders, including dividends, was $239 million for the nine months ended September 30, 2025, compared to $229 million in 2024[459]. - Preferred stock dividends totaled $80 million for the nine months ended September 30, 2025, consistent with the same period in 2024[456]. - The company issued approximately 18.8 million shares of common stock for $825 million as part of a transaction with Bain Capital, aimed at supporting strategic priorities[457].

Core Insights - Lincoln National (LNC) reported $4.78 billion in revenue for Q3 2025, a year-over-year increase of 3.9% [1] - The EPS for the quarter was $2.04, slightly down from $2.06 a year ago, with a surprise of +10.87% compared to the consensus estimate of $1.84 [1] - The revenue fell short of the Zacks Consensus Estimate of $4.8 billion, resulting in a surprise of -0.45% [1] Financial Performance Metrics - Loss Ratio for Group Protection was 68.3%, better than the average estimate of 71.4% [4] - Net Flows for Annuities were reported at $-1.14 billion, compared to the average estimate of $-1.4 billion [4] - Net Flows for Life Insurance were $1.66 billion, significantly higher than the average estimate of $671.25 million [4] - Net Flows for Retirement Plan Services reached $755 million, exceeding the average estimate of $135.64 million [4] - Fee income revenues were $1.38 billion, slightly below the average estimate of $1.42 billion, representing a year-over-year change of +2.4% [4] - Insurance premiums revenues were $1.64 billion, compared to the average estimate of $1.67 billion, with a year-over-year change of +1.4% [4] - Net investment income was reported at $1.54 billion, surpassing the average estimate of $1.45 billion, reflecting a +9.4% change year-over-year [4] - Retirement Plan Services Fee income was $77 million, slightly below the average estimate of $78.54 million, with a +4.1% year-over-year change [4] - Retirement Plan Services Net investment income was $257 million, in line with the average estimate of $256.62 million, showing a +1.6% change year-over-year [4] - Other revenues for Retirement Plan Services were $9 million, exceeding the average estimate of $6.33 million, with a year-over-year change of +12.5% [4] - Life Insurance premiums were $260 million, below the average estimate of $274.47 million, reflecting a -9.1% change year-over-year [4] - Life Insurance Fee income was $683 million, compared to the average estimate of $720.71 million, with a year-over-year change of +1.6% [4] Stock Performance - Lincoln National's shares returned -0.2% over the past month, while the Zacks S&P 500 composite increased by +3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported third quarter adjusted operating income available to common stockholders of $397 million, or $2.04 per share, marking a year-over-year growth for the fifth consecutive quarter [22][21] - Net income available to common stockholders was $411 million, or $2.12 per diluted share, with a notable difference from adjusted operating income primarily due to changes in fair value and non-operating income [22][23] - The annualized return on alternative investments was just under 10%, amounting to $101 million after tax, slightly below the target [22] Business Line Data and Key Metrics Changes - Annuities business reported sales of $4.5 billion, marking the fourth consecutive quarter of increased sales, with spread-based products representing 63% of the new business total [9][10] - Life insurance earnings reached $54 million, significantly improving year-over-year, with sales totaling nearly $300 million, driven largely by executive benefits [13][14] - Group protection delivered earnings consistent with the prior year, with a 5% year-over-year premium growth and nearly 40% sales growth across market segments [16][17] - Retirement Plan Services achieved operating income of $46 million, up from $44 million in the prior year, with total deposits increasing by 20% year-over-year [31][18] Market Data and Key Metrics Changes - The annuities business saw a 36% year-over-year increase in fixed annuity sales, while registered index-linked annuities (RILA) sales increased by 21% [10][11] - Group protection's premium growth was broad-based, with supplemental health increasing by 33% year-over-year [17] - Retirement Plan Services reported a 5% year-over-year increase in account balances, reaching $123 billion, with net inflows totaling $755 million [33][31] Company Strategy and Development Direction - The company is focused on increasing risk-adjusted returns, reducing result volatility, and growing its franchise, with a clear strategy for profitable growth [5][6] - The annual Assumption Review indicated a small favorable impact on adjusted operating income, reflecting alignment between underlying experience and future expectations [8][25] - The company is transitioning to retaining all fixed annuity business, which is expected to enhance spread-based earnings over time [39][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and the effectiveness of its strategic initiatives, emphasizing the importance of disciplined execution [20][21] - The company anticipates some variability in results but remains optimistic about long-term growth potential across all business lines [19][18] - Management highlighted the importance of maintaining a strong capital position and the disciplined deployment of excess capital to enhance risk-adjusted returns [39][42] Other Important Information - The company ended the quarter with an estimated RBC ratio well above the 420% buffer, maintaining a strong excess capital position [39] - The investment portfolio showed solid results, with 97% of investments rated investment grade and a focus on private credit and structured strategies [42][43] Q&A Session Summary Question: Drivers of improved Life earnings and future outlook - Management noted that the quarter reflected stable performance for the life insurance block, with mortality and alternative investment returns aligning with expectations, indicating a positive growth trajectory [48][49][54] Question: Capital plans and share repurchase program - Management indicated that detailed capital plans and free cash flow outlook would be discussed in the fourth quarter earnings call, expressing confidence in the company's direction and metrics [55][56] Question: Group protection margin expectations - Management affirmed a positive outlook for group protection, with expected margin improvements and continued premium growth, despite some normalization in disability trends [59][60][74]

Core Insights - Lincoln National (LNC) reported quarterly earnings of $2.04 per share, exceeding the Zacks Consensus Estimate of $1.84 per share, but slightly down from $2.06 per share a year ago, resulting in an earnings surprise of +10.87% [1] - The company posted revenues of $4.78 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.45%, compared to $4.6 billion in the same quarter last year [2] - Lincoln National shares have increased by approximately 26.2% year-to-date, outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.90 on revenues of $4.86 billion, and for the current fiscal year, it is $7.72 on revenues of $19.07 billion [7] - The estimate revisions trend for Lincoln National was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Insurance - Life Insurance industry, to which Lincoln National belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Primerica (PRI), is expected to report quarterly earnings of $5.51 per share, reflecting a year-over-year decline of 3%, with revenues projected at $825.51 million, up 7.2% from the previous year [9][10]

Financial Performance - Adjusted operating income increased by 13% year-over-year, driven by a diversified business mix[7, 14] - Life Insurance operating income reached $54 million, benefiting from stable mortality and higher investment income[7, 14] - The leverage ratio improved by 320 basis points year-over-year to 252%, primarily due to equity growth[7, 14] Sales and Account Balances - Annuities total sales increased by 32% year-over-year to $45 billion[14, 21] - Retirement Plan Services achieved first-year sales of $24 billion, up almost 50% year-over-year[14, 30] - Group Protection sales increased by 38% year-over-year, diversified across segments and products[14, 27] - Annuities account balances grew 5% year-over-year, reaching a record $174 billion[7, 26] Capital and Risk Management - The estimated RBC ratio is greater than 420%, exceeding the 20 percentage point capital buffer above the 400% target[14] - The investment portfolio is well-diversified, with 97% of assets rated as investment grade[55, 58, 62] - New money yield achieved 59%, approximately 130 basis points above the portfolio yield[55]

Financial Performance - Adjusted income from operations available to common stockholders is defined as after-tax adjusted income from operations less preferred stock dividends[4]. - Adjusted operating revenues represent GAAP revenues excluding the effects of changes in the fair value of derivative instruments related to guaranteed living benefits and guaranteed death benefits[5]. - The company excludes certain items from adjusted income (loss) from operations to enhance understanding of underlying trends and long-term performance[8]. - Insurance premiums for the three months ended September 30, 2025, were $1,637 million, a 1.4% increase from the previous quarter[22]. - Net investment income increased by 9.0% to $1,544 million for the three months ended September 30, 2025, compared to the prior quarter[22]. - Total revenues for the three months ended September 30, 2025, were $4,555 million, reflecting a 10.8% increase from the previous quarter[22]. - Total expenses decreased by 16.3% to $4,031 million for the three months ended September 30, 2025, compared to the prior quarter[22]. - Net income for the three months ended September 30, 2025, was $445 million, a 184.3% increase from the previous quarter[22]. - The diluted earnings per share for the three months ended September 30, 2025, was $2.12, a 164.4% increase from the previous quarter[22]. - The company’s net income for the three months ended September 30, 2024, was a loss of $528 million, compared to a net income of $1.686 billion in the previous quarter, reflecting a significant decrease of 184.3%[25]. - Adjusted operating income from operations for the same period was $461 million, representing a 9.8% increase compared to the previous quarter[25]. - The company reported a net loss of $(528) million for the three months ended September 30, 2024, compared to a net income of $1,588 million for the nine months ended September 30, 2024, representing a 184.3% increase[44]. Stockholders' Equity and Book Value - Stockholders' equity, excluding accumulated other comprehensive income (AOCI) and preferred stock, is useful for analyzing the company's net worth[9]. - Adjusted book value per share is calculated by dividing adjusted stockholders' equity by common shares outstanding, providing insight into the net worth attributable to business operations[12]. - The total stockholders' equity rose to $10.452 billion, a 16.0% increase from the previous quarter[24]. - The book value per common share increased to $49.56, reflecting a 5.5% rise from the previous quarter[25]. - Stockholders' equity at the end of September 30, 2025, reached $10,452 million, marking a 16.0% increase from $9,013 million at the end of September 30, 2024[48]. - The adjusted stockholders' equity for the nine months ended September 30, 2025, was $14,180 million, an 18.5% increase from $11,967 million in the same period of 2024[48]. - Lincoln Financial's stockholders' equity, excluding AOCI and preferred stock, was $13,305 million as of September 30, 2025, representing a 24.2% increase from $10,709 million in the previous year[48]. Debt and Leverage - The leverage ratio is used to monitor the level of debt relative to total capitalization, reflecting total debt and preferred stock adjusted for certain items[17]. - The company reported senior debt ratings of bbb+ from AM Best and BBB+ from Fitch as of October 30, 2025[20]. - The financial strength ratings for Lincoln National Life Insurance Company are A from AM Best and A+ from Fitch[20]. - Total debt decreased by 6.9% to $5.772 billion as of September 30, 2025, down from $6.197 billion a year earlier[26]. - The leverage ratio improved to 25.2% as of September 30, 2025, down from 28.4% a year earlier, indicating a stronger equity position[26]. Investment Performance - Cash and invested cash increased by 77.4% to $10,668 million as of September 30, 2025, compared to the previous quarter[23]. - The total fixed maturity available-for-sale securities remained stable at $90,680 million as of September 30, 2025[23]. - Equity securities increased by 85.0% to $542 million as of September 30, 2025, compared to the previous quarter[23]. - The total fixed maturity AFS securities increased to $88,814 million by September 30, 2025, reflecting a growth trend in the investment portfolio[42]. - The investment grade securities (NAIC 1 and 2) comprised 96.6% of total investments as of September 30, 2024, with NAIC 1 (AAA-A) at $51,370 million (58.9%) and NAIC 2 (BBB) at $32,774 million (37.7%)[43]. - The total below investment grade securities (NAIC 3 to 6) accounted for 3.4% of total investments as of September 30, 2024, with NAIC 3 (BB) at $1,008 million (1.2%) and NAIC 4 (B) at $1,828 million (2.1%)[43]. Revenue and Sales Growth - Total adjusted operating revenues for the three months ended September 30, 2025, were $4.780 billion, reflecting a 3.8% increase from $4.603 billion in the same period of 2024[27]. - Annuities operating revenues for the three months ended September 30, 2025, rose by 6.3% to $1.270 billion, compared to $1.195 billion in the same period of 2024[27]. - Life insurance operating revenues increased by 1.3% to $1.610 billion for the three months ended September 30, 2025, from $1.589 billion a year earlier[27]. - Group protection operating revenues grew by 5.2% to $1.507 billion for the three months ended September 30, 2025, compared to $1.432 billion in the same period of 2024[27]. - Total Annuities sales increased by 32.4% year-over-year to $4,467 million for the three months ended September 30, 2025[28]. - Life Insurance total sales surged by 144.3% to $298 million for the three months ended September 30, 2025[28]. - Group Protection total sales increased by 38.1% year-over-year to $116 million for the three months ended September 30, 2025[28]. Operational Metrics - The average diluted shares outstanding increased by 12.3% to 195.0 million for the period[25]. - The total accumulated other comprehensive income (loss) decreased by 43.1% to $(3.839) billion as of September 30, 2025[24]. - The average account balances in the retirement plan services segment rose by 7.9% to $119.259 billion for the three months ended September 30, 2025, compared to $110.550 billion in the same period of 2024[27]. - Total operating expenses for the three months ended September 30, 2024, were $836 million, a 7.9% increase compared to the previous quarter[31]. - The income from operations for the Retirement Plan Services was $44 million, representing a 4.5% increase from the previous quarter[34].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - Lincoln National Corporation (NYSE:LNC) is identified as a strong value stock for investment, particularly following the launch of the Lincoln Partners Group Royalty Fund in partnership with Partners Group [1] - The Lincoln Partners Group Royalty Fund is the first cross-sector private markets royalties evergreen fund available to individual investors in the US, providing unique investment opportunities [2][3] Company Overview - Lincoln National Corporation operates in multiple insurance and retirement sectors in the US, with four main segments: Life Insurance, Annuities, Group Protection, and Retirement Plan Services [4] - Partners Group is recognized as one of the largest firms in the global private markets industry, actively investing in royalties across various sectors [4] Fund Details - The Lincoln Partners Group Royalty Fund offers individual investors access to a diversified portfolio without capital calls, a structure typically reserved for institutional investors [2] - The fund's investment strategy includes royalties from key sectors such as pharmaceuticals, music, media and entertainment, and energy transition, with Partners Group having made 15 royalty investments in the year prior to the fund's announcement [3]

Core Viewpoint - Lincoln Financial is set to report its third-quarter results for the period ending September 30, 2025, on October 30, 2025, at 6:00 a.m. Eastern Time [1] Group 1 - The conference call to discuss the earnings will take place at 8:00 a.m. Eastern Time on the same day [1] - Earnings materials, including the Earnings Release, Earnings Supplement, and Statistical Supplement, will be accessible on the company's Investor Relations webpage [1]

Group 1 - The article invites active investors to join a free trial and engage in discussions with sophisticated traders and investors [1] Group 2 - There are no stock, option, or similar derivative positions held by the analyst in any of the mentioned companies, nor plans to initiate such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not receiving compensation from any company mentioned [2] Group 3 - Seeking Alpha clarifies that past performance does not guarantee future results and no investment recommendations are provided [3] - The views expressed may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [3]