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Core Insights - Lincoln National Corporation (LNC) is well-positioned for growth, driven by strong performance in its Annuities and Group Protection segments, new product introductions, effective expense management, and a solid financial foundation [1][10] - LNC's stock has increased by 29.4% year-to-date, significantly outperforming the industry's average gain of 1.2% [1][11] Company Overview - Headquartered in Radnor, PA, Lincoln National has a market capitalization of $7.8 billion and operates in diversified life insurance and investment management, offering a range of products across four segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services [2] - The company's trailing 12-month price-to-book (P/B) ratio is 0.91X, lower than the industry average of 1.93X [2] Financial Performance and Estimates - The Zacks Consensus Estimate for LNC's 2025 earnings is $7.48 per share, reflecting a 5.8% year-over-year increase, with revenues estimated at $18.9 billion [4] - LNC has consistently beaten earnings estimates in the past four quarters, with an average surprise of 15.7% [4] Revenue Growth Drivers - LNC's revenue growth is supported by a balanced business mix, increased insurance premiums, and fee income [5] - The annuity segment's total sales grew by 17.2% year-over-year to $7.8 billion in the first half of 2025, with a shift towards a more balanced mix of spread-based products [6] - The Group Protection segment saw a 30.5% year-over-year increase in income from operations in the first half of 2025, with improved underwriting results and an operating margin increase of 180 basis points [7] Strategic Initiatives - Lincoln National aims to enhance future growth by strengthening distribution leadership and expanding into broader markets, focusing on a customer-first model [8] - The company is enhancing core capital generation by allocating resources to strengthen competitive advantages and drive long-term growth in free cash flow [9] Financial Stability - As of June 30, 2025, LNC had $7.1 billion in cash and invested cash, a 23.1% increase from the end of 2024, indicating a strong financial position [10] - The company's dividend yield stands at 4.4%, higher than the industry's average of 3.3% [10]

Industry Overview - The Zacks Life Insurance industry includes companies providing life insurance coverage and retirement benefits, with products such as annuities, whole and term life insurance, and health insurance [2] - The life insurance market is projected to grow, with gross written premiums expected to reach $1.34 trillion by 2025, driven by increasing demand for protection products and retirement benefits due to a rising number of baby boomers [2] - The industry is experiencing accelerated technology adoption, although rising mortality trends may impact profitability [2] Trends Impacting the Industry - The Federal Reserve has lowered interest rates by 25 basis points to a range of 4%-4.25%, with indications of further cuts, which may challenge life insurers as they invest premiums to meet guaranteed obligations [3][4] - Life insurance sales are expected to grow by 2%-6% in 2025, with new annualized premium growth across various life insurance products [3] - Insurers are redesigning products to focus on bundled covers that provide living benefits, reflecting customer preferences [4] Technological Advancements - The U.S. life insurance market is shifting towards digital platforms, with insurers leveraging AI and machine learning for customized coverages and premium calculations [5] - Increased automation is anticipated to enhance premium growth and operational efficiency, while also helping to manage costs [5] Industry Performance - The Zacks Life Insurance industry currently holds a Zacks Industry Rank of 73, placing it in the top 30% of 255 Zacks industries, indicating strong near-term prospects [7][8] - Year-to-date, the Life Insurance industry has underperformed compared to the Finance sector and the S&P 500, with a collective gain of 0.1% against 14.7% and 13.8% respectively [9] Valuation Metrics - The industry is trading at a trailing 12-month price-to-book (P/B) ratio of 1.91X, compared to the S&P 500's 8.7X and the Finance sector's 4.36X [11] Company Highlights - **Aviva**: Expected earnings growth of 23.6% and 13.2% for 2025 and 2026 respectively, with a strong performance across all business lines [16][17] - **Primerica**: Anticipated earnings growth of 8.1% and 8.5% for 2025 and 2026, benefiting from strong demand for protection products [20][21] - **Lincoln Financial**: Projected earnings growth of 5.8% and 3.2% for 2025 and 2026, supported by a recovering Group Protection business [24][25] - **Voya Financial**: Expected earnings growth of 26.3% for 2025, driven by a focus on high-growth, capital-light businesses [28][29] - **Jackson Financial**: Anticipated earnings growth of 8.8% and 8.6% for 2025 and 2026, with a strong focus on diversified product sales [32][33]

Core Insights - Financial wellness support is becoming a crucial factor for companies in attracting and retaining top talent amid rising debt and cost-of-living challenges [1] Group 1: Research Findings - Lincoln Financial's Wellness@Work research study includes insights from over 2,500 full-time workers across various industries and generations [1] - The study explores perceptions related to retirement readiness and employee benefits [1]

Core Insights - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks is challenging, as they can lose momentum if their valuations exceed future growth potential [1] Group 1: Momentum Investing Strategy - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [2] - Lincoln National (LNC) is highlighted as a strong candidate for momentum investing, showing a four-week price change of 3.9% [3] - LNC has demonstrated significant long-term momentum, gaining 27.7% over the past 12 weeks, with a beta of 1.48 indicating higher volatility compared to the market [4] Group 2: Valuation and Earnings Estimates - LNC has a Momentum Score of A, suggesting it is an opportune time to invest in the stock for potential gains [5] - The stock has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [6] - LNC is trading at a Price-to-Sales ratio of 0.45, indicating it is undervalued, as investors pay only 45 cents for each dollar of sales [6] Group 3: Additional Opportunities - Besides LNC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential [1] - The popularity of insurance companies in the Philippines has influenced investment strategies, leading to diversification beyond traditional savings [1] - The trend of investing in blue-chip companies has evolved, with a broader portfolio now including various industries and market capitalizations [1] Investment Focus - The current investment focus includes banks, telecommunications, logistics, and hotels, indicating a diversified approach to portfolio management [1] - The entry into the US market has expanded investment opportunities, particularly in sectors like banking, hotels, shipping, and logistics [1] Market Engagement - The use of platforms like Seeking Alpha has enhanced market analysis and comparison between different regions, particularly between the US and Philippine markets [1] - The experience of acting as a personal broker has provided deeper insights into the US market dynamics, facilitating informed investment decisions [1]

Core Insights - Lincoln Financial has launched a new private market fund called the Lincoln Bain Capital Total Credit Fund in partnership with Bain Capital [1] - The fund is designed to provide a globally diversified portfolio of private credit investments, targeting loans to mid-sized private companies and asset-based financing [1] Company Overview - Lincoln Financial is a prominent provider of insurance, annuities, group benefits, and retirement solutions [1] - The collaboration with Bain Capital highlights Lincoln Financial's strategy to expand its investment offerings in the private credit market [1] Fund Details - The Lincoln Bain Capital Total Credit Fund is characterized as an evergreen fund, indicating it will have a continuous investment strategy [1] - The fund aims to cater to a diverse range of private credit investments, enhancing Lincoln Financial's portfolio [1]

Core Insights - Lincoln National Corporation (LNC) reported second-quarter adjusted earnings per share of $2.36, exceeding the Zacks Consensus Estimate by 23.6% and reflecting a year-over-year increase of 28.3% [1][8] - Adjusted operating revenues rose 4.4% year over year to $4.7 billion, surpassing the consensus mark by 1.2% [1][8] Financial Performance - The strong quarterly results were driven by higher insurance premiums, strong annuity deposits, and solid Group Protection performance [2] - Insurance premiums increased by 3.5% year over year to $1.7 billion, slightly above the Zacks Consensus Estimate [3] - Net investment income grew by 10.1% year over year to $1.5 billion, beating the consensus estimate of $1.4 billion [3][8] - Total expenses decreased by 21.2% year over year to $3.2 billion [4][8] - Lincoln National generated a net income of $699 million, down from $895 million in the prior-year quarter [4] Segment Performance - The Annuities segment's operating income was $287 million, a 3% decline year over year, but above the consensus estimate [6] - The Life Insurance unit reported an operating income of $32 million, improving from a loss of $35 million in the prior year [7] - The Group Protection segment's operating income increased by 33.1% year over year to $173 million, exceeding the Zacks Consensus Estimate [8] - The Retirement Plan Services segment recorded an operating income of $37 million, down 8% year over year [10] Financial Position - As of June 30, 2025, Lincoln National had cash and invested cash of $7.1 billion, up from $5.8 billion at the end of 2024 [12] - Total assets increased to $399.1 billion from $390.8 billion at the end of 2024 [12] - Long-term debt decreased to $5.8 billion from $7.1 billion as of December 31, 2024 [12] - Total stockholders' equity rose to $9.5 billion from $8.3 billion at the end of 2024 [12] Outlook - The Group Protection unit is expected to experience a seasonally higher loss ratio in the fourth quarter of 2025 [15] - The Life Insurance segment is forecasted to see favorable mortality results in the third and fourth quarters of 2025 [15] - In 2026, the Annuities, Life Insurance, Group Protection, and Retirement Plan Services units are projected to account for 55-65%, 10-15%, 20-30%, and 5-15% of total operating income, respectively [16]

Core Viewpoint - Lincoln National Corporation (NYSE: LNC) has shown moderate performance over the past year, with a 7% increase in share price and a nearly 5% dividend yield, following a period of significant underperformance [1] Company Performance - The company has taken meaningful actions to improve its performance after several years of underperformance [1] Investment Strategy - The article emphasizes a contrarian investment approach based on macro views and stock-specific turnaround stories to achieve outsized returns with a favorable risk/reward profile [1]

Lincoln National (LNC 11.43%), a major provider of insurance, annuities, and retirement plan services, released its second quarter results on July 31, 2025. The standout headline was non-GAAP earnings per share of $2.36 in Q2 2025, exceeding analyst expectations by 25.5%. However, non-GAAP revenue was $4.308 billion, falling short of the $4.66 billion consensus estimate by 7.6%. The report showed clear improvement in operating margins and segment performance, especially in Group Protection, where operating ...