UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2025 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ to _________. Commission File Number: 1-6028 _______________________________________________________________________________________________________ ...

Core Insights - Lincoln National (LNC) reported $4.73 billion in revenue for Q2 2025, a year-over-year increase of 4.4% and an EPS of $2.36 compared to $1.84 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance - Revenue of $4.73 billion surpassed the Zacks Consensus Estimate of $4.67 billion, resulting in a surprise of +1.23% [1] - EPS of $2.36 exceeded the consensus estimate of $1.91, delivering a surprise of +23.56% [1] Key Metrics - Net Flows - Life Insurance: $633 million, exceeding the estimate of $622.2 million [4] - Net Flows - Retirement Plan Services: $-585 million, worse than the estimate of $-140.99 million [4] - Loss Ratio - Group Protection: 65.9%, better than the estimate of 70.5% [4] - Net Flows - Annuities: $-1.16 billion, matching the average estimate [4] - Fee Income: $1.34 billion, slightly below the estimate of $1.35 billion, with a year-over-year change of +0.1% [4] - Insurance Premiums: $1.68 billion, in line with the estimate, reflecting a year-over-year change of +3.5% [4] - Net Investment Income: $1.47 billion, exceeding the estimate of $1.39 billion, with a year-over-year change of +10.1% [4] - Life Insurance Revenue: $1.6 billion, surpassing the estimate of $1.58 billion, with a year-over-year change of +6% [4] - Group Protection Revenue: $1.54 billion, exceeding the estimate of $1.52 billion, with a year-over-year change of +6.7% [4] - Other Operations Revenue: $41 million, below the estimate of $53.37 million, with a year-over-year change of +5.1% [4] - Retirement Plan Services Revenue: $331 million, slightly above the estimate of $327.13 million, with a year-over-year change of +1.2% [4] - Annuities Revenue: $1.21 billion, below the estimate of $1.23 billion, with a year-over-year change of +0.4% [4] Stock Performance - Lincoln National shares have returned -2.2% over the past month, while the Zacks S&P 500 composite has changed by +2.7% [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 - Adjusted operating income increased by 32% year over year, reaching $427 million or $2.36 per diluted share [4][27] - Net income available to common stockholders was $688 million or $3.80 per diluted share, reflecting positive market risk benefits [27] - The estimated RBC ratio remained above 420%, consistent with the company's strategy to maintain a capital buffer above the 400% target [43] Business Line Data and Key Metrics Changes - Group Protection business achieved record earnings of $173 million, up 33% year over year, with a margin increase to 12.5% [28][18] - Annuities generated operating income of $287 million, slightly down from $297 million in the prior year, primarily due to traditional variable annuity outflows [35] - Life Insurance reported operating earnings of $32 million, a significant improvement from an operating loss of $35 million in the prior year [40] Market Data and Key Metrics Changes - All four business segments delivered double-digit sales growth in the first half of the year, with notable contributions from previously non-key products [8] - Retirement Plan Services saw first-year sales increase by nearly 50% year over year, with total deposits up by 10% [22] Company Strategy and Development Direction - The company is focused on increasing risk-adjusted returns, reducing volatility, and growing its franchise through a disciplined growth strategy [5][24] - Strategic investments are being made in higher-margin products and segments, enhancing digital capabilities, and optimizing the operating model [7][8] - The company aims to deepen its strategic moat and evolve into a more agile, scalable organization [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, emphasizing the importance of disciplined execution and strategic clarity [25][48] - The economic backdrop remains volatile, but the company is committed to delivering long-term value and sustainable growth [8][24] Other Important Information - The company has launched a Bermuda-based reinsurance subsidiary to enhance its investment strategy [7] - The alternative investment portfolio achieved a 10% annualized return, contributing positively to overall earnings [27][47] Q&A Session Summary Question: On group and the shift into smaller local markets and supplemental health products - Management highlighted the successful execution of a targeted segment strategy, particularly in local markets and supplemental health, which are expected to drive margin expansion [50][51] Question: On the restructuring of the Life Captives - Management indicated that specifics on the impact of restructuring on earnings and free cash flow would be provided once more concrete details are available, with potential impacts expected in the following year [62][64] Question: On RILA product sales and market competition - Management reported a 32% increase in RILA sales year over year, attributing growth to the introduction of a second-generation product and expanding distribution segments [67][69] Question: On free cash flow conversion guidance - Management expressed confidence in the long-term free cash flow conversion rate being above previous targets, especially with the deployment of Bain Capital [74][76] Question: On distribution strategies in the group business - Management emphasized the importance of strategic broker relationships and investments in digital capabilities to enhance competitive differentiation and drive growth [80][82] Question: On external reinsurance solutions - Management is exploring options for external reinsurance focused on the legacy life block, with the potential for less reliance on structured deals due to deployable excess capital [88]

Financial Data and Key Metrics Changes - Adjusted operating income increased by 32% year over year, reaching $427 million or $2.36 per diluted share [25][4] - Net income available to common stockholders was $688 million or $3.80 per diluted share, reflecting positive market risk benefits [25][26] - The estimated RBC ratio remained above 420%, consistent with the company's strategy to maintain a capital buffer above the 400% target [40][22] Business Line Data and Key Metrics Changes - Group Protection business achieved record earnings of $173 million, up 33% year over year, with a margin increase to 12.5% [26][17] - Annuities generated operating income of $287 million, slightly down from $297 million in the prior year, primarily due to traditional variable annuity outflows [32] - Life Insurance reported operating earnings of $32 million, a significant improvement from an operating loss of $35 million in the prior year [37] Market Data and Key Metrics Changes - All four business segments delivered double-digit sales growth in the first half of the year, with notable contributions from previously non-key products [7] - Retirement Plan Services saw first-year sales increase by nearly 50% year over year, with total deposits up by 10% [20] - Annuities sales reached $4 billion, a 6% sequential increase, with fixed annuity sales growing by 41% [9][11] Company Strategy and Development Direction - The company is focused on increasing risk-adjusted returns, reducing volatility, and growing its franchise through disciplined execution [5][6] - Strategic investments are being made in higher-margin products and segments, enhancing digital capabilities, and optimizing the operating model [6][22] - The company aims to deepen its strategic moat and evolve into a more agile organization, aligning capital deployment with strategic priorities [22][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory, emphasizing the importance of disciplined execution and strategic clarity [46][23] - The economic backdrop remains volatile, but the company is committed to delivering long-term value and sustainable growth [7][22] - Management noted that while results may not be linear, the momentum is building, and they are excited about the path forward [7][8] Other Important Information - The company launched a Bermuda-based reinsurance subsidiary to enhance capital efficiency and respond to market opportunities [6] - The alternative investment portfolio achieved a 10% annualized return, supporting the overall financial performance [25][45] - The company is actively exploring external reinsurance solutions to optimize its legacy life portfolio [88] Q&A Session Summary Question: On group and the shift into smaller local markets and supplemental health products - Management highlighted the successful execution of targeted segment strategies, particularly in local markets and supplemental health, which are expected to continue driving margin expansion [50][51] Question: On the restructuring of the Life Captives - Management indicated that while they are working on optimizing the life portfolio, concrete numbers regarding earnings impact will be provided later [61][62] Question: On RILA product sales and market competition - Management reported a 32% increase in RILA sales year over year, emphasizing a focus on profitable growth and capital efficiency [66][68] Question: On free cash flow conversion guidance for 2026 - Management expressed confidence that the long-term free cash flow conversion rate should be above previous targets, especially with the deployment of Bain Capital [74][76] Question: On distribution growth drivers in the group business - Management discussed the importance of strategic broker relationships and investments in digital capabilities to enhance competitive differentiation and drive growth [80][82] Question: On external reinsurance solutions - Management noted that while it is too early to discuss specifics, they are focused on optimizing the legacy life block through potential reinsurance deals [88]

Core Viewpoint - Lincoln National (LNC) reported quarterly earnings of $2.36 per share, exceeding the Zacks Consensus Estimate of $1.91 per share, and showing an increase from $1.84 per share a year ago, resulting in an earnings surprise of +23.56% [1][2] Financial Performance - The company achieved revenues of $4.73 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.23%, compared to $4.53 billion in the same quarter last year [2] - Over the last four quarters, Lincoln National has exceeded consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Performance - Since the beginning of the year, Lincoln National shares have increased by approximately 7.9%, while the S&P 500 has gained 8.2% [3] - The current Zacks Rank for Lincoln National is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $1.75 on revenues of $4.73 billion, and for the current fiscal year, it is $7.02 on revenues of $18.83 billion [7] - The trend of estimate revisions for Lincoln National was mixed prior to the earnings release, which may change following the recent results [6] Industry Context - The Insurance - Life Insurance industry, to which Lincoln National belongs, is currently ranked in the top 10% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Adjusted operating income increased by 32% year-over-year (YoY), marking the fourth consecutive quarter of YoY growth[7, 13] - Adjusted operating income was $427 million, or $2.36 per share[12] - Group Protection achieved record earnings, up 33% YoY, with a record margin of 12.5%, a 250 basis points increase[13] - Life Insurance reported earnings of $32 million, supported by in-line alternative investment income and favorable mortality[7, 13] Sales and Growth - Annuities sales increased by 5% YoY, driven by a diversified product mix[7, 13] - Group Protection sales increased by 16% YoY, fueled by local market and supplemental health sales[13] - Life Insurance sales increased by 15% YoY, driven by momentum in risk-sharing products[13] - Retirement Plan Services experienced strong deposit growth, up 10% YoY[13] Capital and Leverage - Estimated Risk-Based Capital (RBC) ratio is greater than 420%, exceeding the 400% target[7, 13] - Leverage ratio improved by 330 basis points YoY to 25.6%, primarily due to equity growth[7, 13] - The company issued $1 billion in P-Caps, increasing access to on-demand capital and extending duration to 2055[13]

[Notes](index=3&type=section&id=Notes) This section provides explanations for non-GAAP financial measures and definitions for key financial computations and metrics used in the report [Non-GAAP Measures](index=3&type=section&id=Non-GAAP%20Measures) This section explains the company's non-GAAP financial measures, including adjusted income (loss) from operations, adjusted operating revenues, stockholders' equity excluding AOCI and preferred stock, adjusted stockholders' equity, and related per-share and ROE metrics, detailing why these adjustments are made to provide a clearer view of underlying business performance - The definition of adjusted income (loss) from operations was revised in Q3 2024 to exclude certain additional items not indicative of ongoing business operations, with the six-month period ended June 30, 2024, recast to conform to the new presentation[4](index=4&type=chunk) - Adjusted income (loss) from operations excludes items such as net annuity product features, net life insurance product features, credit loss-related adjustments, investment gains (losses), and changes in the fair value of reinsurance-related embedded derivatives, trading securities, and certain mortgage loans[7](index=7&type=chunk) - Management believes these non-GAAP measures are helpful for investors in evaluating the company's performance and understanding underlying trends by removing the effect of market movements and non-recurring items[8](index=8&type=chunk)[9](index=9&type=chunk)[12](index=12&type=chunk) - Stockholders' equity, excluding AOCI and preferred stock, is used to analyze net worth by eliminating market movements primarily related to changes in interest rates[13](index=13&type=chunk) - Adjusted stockholders' equity further excludes changes in market risk benefits (MRBs), guaranteed living benefit (GLB) and guaranteed death benefit (GDB) hedge instrument gains (losses), and reinsurance-related embedded derivatives and portfolio gains (losses) to eliminate the effect of market movements from equity markets and interest rates[14](index=14&type=chunk)[15](index=15&type=chunk) [Computations & Definitions](index=5&type=section&id=Computations%20%26%20Definitions) This section provides definitions for key financial computations and metrics used in the report, including holding company available liquidity, return on equity (ROE), leverage ratio, and details on how 'Sales as reported' are calculated across various product lines - Holding company available liquidity consists of cash and invested cash (excluding collateral) and certain short-term investments readily convertible to cash, net of commercial paper outstanding[21](index=21&type=chunk) - Return on equity (ROE) measures the efficiency of generating profits from net assets, with management evaluating consolidated ROE both including and excluding the effect of average goodwill[22](index=22&type=chunk) - The leverage ratio monitors the level of debt relative to total capitalization, with debt and total capitalization adjusted for certain items[23](index=23&type=chunk) - Sales as reported include deposits from new and existing customers for Annuities and Retirement Plan Services, first-year commissionable premiums for various life insurance products, and annualized first-year premiums for Group Protection[25](index=25&type=chunk) [Credit Ratings](index=6&type=section&id=Credit%20Ratings) This section presents the company's credit ratings from major agencies for senior debt and financial strength ratings for its life insurance subsidiaries [Ratings as of July 31, 2025](index=6&type=section&id=Ratings%20as%20of%20July%2031%2C%202025) This section presents the credit ratings from major agencies (AM Best, Fitch, Moody's, Standard & Poor's) for the company's senior debt and financial strength ratings for its life insurance subsidiaries as of July 31, 2025 Credit Ratings as of July 31, 2025 | | Ratings as of July 31, 2025 | | | Standard | | --- | --- | --- | --- | --- | | | AM Best | Fitch | Moody's | & Poor's | | Senior Debt Ratings | bbb+ | BBB+ | Baa2 | BBB+ | | Financial Strength Ratings | | | | | | The Lincoln National Life Insurance Company | A | A+ | A2 | A+ | | First Penn-Pacific Life Insurance Company | A | A+ | A2 | A | | Lincoln Life & Annuity Company of New York | A | A+ | A2 | A+ | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section provides a consolidated overview of the company's financial performance and position through its income statements and balance sheets [Consolidated Statements of Income (Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20(Loss)) This section provides a consolidated overview of the company's revenues, expenses, and net income (loss) for the three and six months ended June 30, 2025, compared to the prior year, showing a decrease in total revenues and a significant change from net income to net loss for the six-month period Consolidated Statements of Income (Loss) Summary (in millions of USD, except per share data) | Metric | 3 Months Ended 6/30/24 | 3 Months Ended 6/30/25 | Change (3M) | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change (6M) | | :-------------------------------- | :--------------------- | :--------------------- | :---------- | :--------------------- | :--------------------- | :---------- | | Total revenues | $5,153 | $4,044 | -21.5% | $9,269 | $8,735 | -5.8% | | Total expenses | $4,057 | $3,196 | -21.2% | $6,644 | $8,836 | 33.0% | | Net income (loss) | $895 | $699 | -21.9% | $2,116 | $(23) | NM | | Net income (loss) available to common stockholders – diluted | $884 | $688 | -22.2% | $2,073 | $(69) | NM | | Earnings (Loss) Per Common Share – Diluted | $5.11 | $3.80 | -25.6% | $12.03 | $(0.39) | NM | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) This section presents the consolidated balance sheet data, highlighting assets, liabilities, and stockholders' equity as of June 30, 2025, compared to previous quarters, with total assets increasing by 3.8% year-over-year, driven by increases in cash and invested cash, and separate account assets Consolidated Balance Sheet Summary (in millions of USD) | Metric | As of 6/30/24 | As of 6/30/25 | Change | | :-------------------------------------------------------------------------------- | :------------ | :------------ | :----- | | Total investments | $126,595 | $131,144 | 3.6% | | Cash and invested cash | $5,475 | $7,143 | 30.5% | | Separate account assets | $165,199 | $172,942 | 4.7% | | Total assets | $384,533 | $399,065 | 3.8% | | Policyholder account balances | $124,113 | $129,209 | 4.1% | | Total liabilities | $376,584 | $389,517 | 3.4% | | Total stockholders' equity | $7,949 | $9,548 | 20.1% | [Performance Metrics](index=10&type=section&id=Performance%20Metrics) This section details key financial performance indicators, including earnings, share metrics, return on equity, and stakeholder-focused ratios [Earnings, Shares and Return on Equity](index=10&type=section&id=Earnings%2C%20Shares%20and%20Return%20on%20Equity) This section details key earnings, share, and return on equity metrics, including GAAP and adjusted figures, showing adjusted income from operations available to common stockholders increased by 31.8% for the three months and 32.2% for the six months ended June 30, 2025, with adjusted book value per share also seeing a 6.2% increase year-over-year Key Earnings, Shares, and Return on Equity Metrics (in millions of USD, except per share and share data) | Metric | 3 Months Ended 6/30/24 | 3 Months Ended 6/30/25 | Change (3M) | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change (6M) | | :-------------------------------------------------------------------------------- | :--------------------- | :--------------------- | :---------- | :--------------------- | :--------------------- | :---------- | | Net income (loss) | $895 | $699 | -21.9% | $2,116 | $(23) | NM | | Pre-tax adjusted income (loss) from operations | $389 | $517 | 32.9% | $680 | $879 | 29.3% | | Adjusted income (loss) from operations available to common stockholders | $324 | $427 | 31.8% | $534 | $706 | 32.2% | | Adjusted income (loss) from operations (diluted) per share | $1.87 | $2.36 | 26.2% | $3.10 | $3.97 | 28.1% | | Book value per share, excluding AOCI | $66.37 | $67.95 | 2.4% | $66.37 | $67.95 | 2.4% | | Adjusted book value per share | $68.51 | $72.77 | 6.2% | $68.51 | $72.77 | 6.2% | | End-of-period – basic common shares | 170.7 | 190.6 | 11.7% | 170.7 | 190.6 | 11.7% | [Key Stakeholder Metrics](index=11&type=section&id=Key%20Stakeholder%20Metrics) This section provides insights into cash returned to stockholders, leverage ratio, and holding company available liquidity, noting the leverage ratio improved to 25.6% as of June 30, 2025, from 28.9% a year prior, while holding company available liquidity decreased significantly Key Stakeholder Metrics Summary (in millions of USD, except percentages) | Metric | As of 6/30/24 | As of 6/30/25 | Change | | :------------------------------------------ | :------------ | :------------ | :----- | | Cash Returned to Common Stockholders – Common Dividends | $77 | $77 | 0.0% | | Cash Returned to Preferred Stockholders – Preferred Dividends | $11 | $11 | 0.0% | | Total debt and preferred stock | $7,152 | $6,753 | -5.6% | | Adjusted stockholders' equity | $11,698 | $13,873 | 18.6% | | Leverage ratio | 28.9% | 25.6% | -3.3 ppt | | Holding Company Available Liquidity | $763 | $466 | -38.9% | [Segment Performance](index=12&type=section&id=Segment%20Performance) This section analyzes the financial and operational performance of the company's individual business segments, including Annuities, Life Insurance, Group Protection, and Retirement Plan Services [Select Earnings Drivers By Segment](index=12&type=section&id=Select%20Earnings%20Drivers%20By%20Segment) This section presents key earnings drivers and operational data across Annuities, Life Insurance, Group Protection, and Retirement Plan Services segments, with consolidated adjusted operating revenues increasing by 3.3% for the six months ended June 30, 2025, while consolidated net flows experienced a significant outflow Segment Operating Revenues, Deposits, and Net Flows (in millions of USD) | Segment | Operating Revenues (6M 2024) | Operating Revenues (6M 2025) | Change | Deposits (6M 2024) | Deposits (6M 2025) | Change | Net Flows (6M 2024) | Net Flows (6M 2025) | Change | | :---------------------- | :--------------------------- | :--------------------------- | :----- | :----------------- | :----------------- | :----- | :------------------ | :------------------ | :----- | | Annuities | $2,477 | $2,412 | -2.6% | $6,672 | $7,823 | 17.3% | $(2,946) | $(2,838) | 3.7% | | Life Insurance | $3,052 | $3,188 | 4.5% | $2,438 | $2,500 | 2.5% | $1,492 | $1,202 | -19.4% | | Group Protection | $2,867 | $3,059 | 6.7% | N/A | N/A | N/A | N/A | N/A | N/A | | Retirement Plan Services | $649 | $658 | 1.4% | $7,085 | $7,709 | 8.8% | $194 | $(2,768) | NM | | Consolidated Adjusted Operating Revenues | $9,111 | $9,411 | 3.3% | $16,195 | $18,032 | 11.3% | $(1,260) | $(4,404) | NM | [Sales By Segment](index=13&type=section&id=Sales%20By%20Segment) This section details sales performance across Annuities, Life Insurance, Group Protection, and Retirement Plan Services, highlighting that Annuities sales increased by 17.2% for the six months ended June 30, 2025, driven by a 34.4% rise in RILA sales and a 72.4% increase in traditional variable with GLBs, and Life Insurance sales also grew by 10.7%, primarily due to Executive Benefits Sales by Segment (in millions of USD) | Segment | Sales (6M 2024) | Sales (6M 2025) | Change | | :-------------------------- | :-------------- | :-------------- | :----- | | Total Annuities | $6,663 | $7,807 | 17.2% | | RILA | $2,038 | $2,739 | 34.4% | | Traditional variable with GLBs | $1,179 | $2,033 | 72.4% | | Total Life Insurance | $197 | $218 | 10.7% | | Executive Benefits | $16 | $50 | 212.5% | | Total Group Protection | $306 | $344 | 12.4% | | Total Retirement Plan Services | $7,085 | $7,709 | 8.8% | [Operating Revenues and General and Administrative Expenses By Segment](index=14&type=section&id=Operating%20Revenues%20and%20General%20and%20Administrative%20Expenses%20By%20Segment) This section provides a breakdown of operating revenues and general and administrative expenses by segment, showing consolidated adjusted operating revenues increased by 3.3% for the six months ended June 30, 2025, while total general and administrative expenses, net of amounts capitalized, decreased by 1.3% Operating Revenues and G&A Expenses by Segment (in millions of USD) | Segment | Operating Revenues (6M 2024) | Operating Revenues (6M 2025) | Change | G&A Expenses (6M 2024) | G&A Expenses (6M 2025) | Change | | :----------------------- | :--------------------------- | :--------------------------- | :----- | :----------------------- | :----------------------- | :----- | | Annuities | $2,477 | $2,412 | -2.6% | $246 | $218 | -11.4% | | Life Insurance | $3,052 | $3,188 | 4.5% | $256 | $241 | -5.9% | | Group Protection | $2,867 | $3,059 | 6.7% | $380 | $408 | 7.4% | | Retirement Plan Services | $649 | $658 | 1.4% | $161 | $161 | 0.0% | | Other Operations | $66 | $94 | 42.4% | $120 | $120 | 0.0% | | Total adjusted operating revenues | $9,111 | $9,411 | 3.3% | $1,163 | $1,148 | -1.3% | [Operating Commissions and Other Expenses](index=15&type=section&id=Operating%20Commissions%20and%20Other%20Expenses) This section details the operating commissions and other expenses incurred, as well as amounts capitalized and amortization, noting total adjusted operating commissions and other expenses incurred decreased by 2.9% for the six months ended June 30, 2025, while amortization of DAC, VOBA, and other intangibles increased by 13.4% Operating Commissions and Other Expenses Summary (in millions of USD) | Metric | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change | | :---------------------------------------------------------------- | :--------------------- | :--------------------- | :----- | | Total adjusted operating commissions and other expenses incurred | $2,871 | $2,787 | -2.9% | | Total amounts capitalized | $(559) | $(614) | -9.8% | | Amortization of DAC, VOBA and other intangibles | $544 | $617 | 13.4% | | Total operating commissions and other expenses | $2,856 | $2,790 | -2.3% | [Select Earnings and Operational Data from Business Segments and Other Operations](index=16&type=section&id=Select%20Earnings%20and%20Operational%20Data%20from%20Business%20Segments%20and%20Other%20Operations) This section provides detailed earnings and operational data for each business segment: Annuities, Life Insurance, Group Protection, and Retirement Plan Services, as well as Other Operations [Annuities](index=16&type=section&id=Annuities) The Annuities segment reported a 3.8% increase in income from operations for the six months ended June 30, 2025, reaching $577 million, despite total operating revenues decreasing by 2.6%, with net investment income growing by 11.5% and total account balances increasing by 5.0% year-over-year Annuities Segment Operational Data (in millions of USD) | Metric | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change | | :------------------------------------ | :--------------------- | :--------------------- | :----- | | Total operating revenues | $2,477 | $2,412 | -2.6% | | Net investment income | $855 | $953 | 11.5% | | Income (loss) from operations | $556 | $577 | 3.8% | | Total account balances (End-of-Period) | $159,869 | $167,793 | 5.0% | | RILA account balances (End-of-Period) | $31,633 | $36,256 | 14.6% | [Life Insurance](index=17&type=section&id=Life%20Insurance) The Life Insurance segment saw a significant turnaround, moving from a loss of $70 million in operations for the six months ended June 30, 2024, to a gain of $16 million in the same period of 2025, with total operating revenues increasing by 4.5%, driven by growth in fee income and net investment income, while total in-force face amount decreased by 1.5% Life Insurance Segment Operational Data (in millions of USD) | Metric | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change | | :------------------------------------ | :--------------------- | :--------------------- | :----- | | Total operating revenues | $3,052 | $3,188 | 4.5% | | Fee income | $1,349 | $1,386 | 2.7% | | Net investment income | $1,114 | $1,172 | 5.2% | | Income (loss) from operations | $(70) | $16 | 122.9% | | Total in-force face amount | $1,084,515 | $1,067,972 | -1.5% | [Group Protection](index=18&type=section&id=Group%20Protection) The Group Protection segment reported a 30.5% increase in income from operations for the six months ended June 30, 2025, reaching $274 million, with total operating revenues growing by 6.7%, primarily from insurance premiums, and the total loss ratio improving to 65.9% for the three months ended June 30, 2025, from 70.1% in the prior year Group Protection Segment Operational Data (in millions of USD, except percentages) | Metric | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change | | :------------------------------------ | :--------------------- | :--------------------- | :----- | | Total operating revenues | $2,867 | $3,059 | 6.7% | | Insurance premiums | $2,583 | $2,757 | 6.7% | | Income (loss) from operations | $210 | $274 | 30.5% | | Operating Margin (3M 6/30/25) | 10.0% (6/30/24) | 12.5% (6/30/25) | 2.5 ppt | | Total Loss Ratio (3M 6/30/25) | 70.1% (6/30/24) | 65.9% (6/30/25) | -4.2 ppt | [Retirement Plan Services](index=19&type=section&id=Retirement%20Plan%20Services) The Retirement Plan Services segment experienced a 6.6% decrease in income from operations for the six months ended June 30, 2025, totaling $71 million, as total operating revenues increased slightly by 1.4%, but net flows turned significantly negative, moving from an inflow of $194 million to an outflow of $2,768 million for the six-month period Retirement Plan Services Segment Operational Data (in millions of USD) | Metric | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change | | :------------------------------------ | :--------------------- | :--------------------- | :----- | | Total operating revenues | $649 | $658 | 1.4% | | Income (loss) from operations | $76 | $71 | -6.6% | | Net Flows | $194 | $(2,768) | NM | | Total account balances (End-of-Period) | $107,872 | $116,383 | 7.9% | [Other Operations](index=20&type=section&id=Other%20Operations) Other Operations reported a 3.1% improvement in income from operations for the six months ended June 30, 2025, reducing the loss to $186 million, with total operating revenues increasing by 42.4%, primarily driven by net investment income and other revenues Other Operations Segment Data (in millions of USD) | Metric | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change | | :------------------------------------ | :--------------------- | :--------------------- | :----- | | Total operating revenues | $66 | $94 | 42.4% | | Net investment income | $43 | $67 | 55.8% | | Income (loss) from operations | $(192) | $(186) | 3.1% | [DAC and Account Balance Roll Forwards](index=21&type=section&id=DAC%20and%20Account%20Balance%20Roll%20Forwards) This section details the changes in Deferred Acquisition Costs (DAC) and various account balances across segments, providing insights into asset and liability movements [Consolidated DAC, VOBA, DSI and DFEL Roll Forwards](index=21&type=section&id=Consolidated%20DAC%2C%20VOBA%2C%20DSI%20and%20DFEL%20Roll%20Forwards) This section provides a consolidated view of the roll forwards for Deferred Acquisition Costs (DAC), Value of Business Acquired (VOBA), Deferred Sales Inducements (DSI), and Deferred Front-End Loads (DFEL), showing the end-of-period balance for DAC, VOBA, and DSI increased by 1.4% year-over-year, while DFEL increased by 12.9% Consolidated DAC, VOBA, DSI, and DFEL Balances (in millions of USD) | Metric | As of 6/30/24 | As of 6/30/25 | Change | | :------------------------------------ | :------------ | :------------ | :----- | | DAC, VOBA and DSI Balance | $12,435 | $12,604 | 1.4% | | DFEL Balance | $6,306 | $7,119 | 12.9% | | DAC, VOBA, DSI and DFEL Balance, After-Tax | $4,842 | $4,333 | -10.5% | [Account Balance Roll Forwards](index=22&type=section&id=Account%20Balance%20Roll%20Forwards) This section details the changes in account balances for Annuities, Life Insurance, and Retirement Plan Services, showing gross deposits, surrenders, benefits, net flows, and market value changes [Annuities - Account Balance Roll Forwards](index=22&type=section&id=Annuities%20-%20Account%20Balance%20Roll%20Forwards) Total Annuities account balances, net of reinsurance, increased by 5.0% to $167,793 million as of June 30, 2025, with gross deposits increasing by 17.3% for the six-month period, and net flows improving by 3.7% (less negative outflow) Annuities Account Balance Roll Forward (in millions of USD) | Metric | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change | | :------------------------------------ | :--------------------- | :--------------------- | :----- | | Total Balance (End-of-Period, net) | $159,869 | $167,793 | 5.0% | | Gross deposits | $6,672 | $7,823 | 17.3% | | Net flows | $(2,946) | $(2,838) | 3.7% | [Life Insurance - Account Balance Roll Forwards](index=24&type=section&id=Life%20Insurance%20-%20Account%20Balance%20Roll%20Forwards) Total Life Insurance account balances, net of reinsurance, increased by 9.0% to $47,295 million as of June 30, 2025, with gross deposits increasing by 2.5% for the six-month period, but net flows decreasing by 19.4% Life Insurance Account Balance Roll Forward (in millions of USD) | Metric | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change | | :------------------------------------ | :--------------------- | :--------------------- | :----- | | Total Balance (End-of-Period, net) | $43,391 | $47,295 | 9.0% | | Gross deposits | $2,438 | $2,500 | 2.5% | | Net flows | $1,492 | $1,202 | -19.4% | [Retirement Plan Services - Account Balance Roll Forwards](index=25&type=section&id=Retirement%20Plan%20Services%20-%20Account%20Balance%20Roll%20Forwards) Total Retirement Plan Services account balances increased by 7.9% to $116,383 million as of June 30, 2025, with gross deposits increasing by 8.8% for the six-month period, but net flows experiencing a significant negative shift, moving from an inflow of $194 million to an outflow of $2,768 million Retirement Plan Services Account Balance Roll Forward (in millions of USD) | Metric | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change | | :------------------------------------ | :--------------------- | :--------------------- | :----- | | Total Balance (End-of-Period) | $107,872 | $116,383 | 7.9% | | Gross deposits | $7,085 | $7,709 | 8.8% | | Net flows | $194 | $(2,768) | NM | [Investment Information](index=26&type=section&id=Investment%20Information) This section provides details on the company's investment portfolio, focusing on fixed-income asset classes and their credit quality [Fixed-Income Asset Class](index=26&type=section&id=Fixed-Income%20Asset%20Class) This section provides a breakdown of the company's fixed-income asset class, including fixed maturity AFS securities, trading securities, and equity securities, net of modified coinsurance and funds withheld investments, showing total fixed maturity AFS securities, net of allowance for credit losses, increased by 2.5% to $89,386 million as of June 30, 2025 Fixed-Income Asset Class Breakdown (in millions of USD) | Industry Corporate Bonds | As of 6/30/24 (Amount) | As of 6/30/25 (Amount) | Change | | :----------------------- | :--------------------- | :--------------------- | :----- | | Financial services | $12,552 | $12,685 | 1.1% | | Consumer non-cyclical | $12,751 | $12,438 | -2.4% | | Utilities | $11,283 | $11,399 | 1.0% | | Total fixed maturity AFS securities, net of modified coinsurance and funds withheld investments and allowance for credit losses, at amortized cost | $86,942 | $88,558 | 1.9% | [Fixed-Income Credit Quality](index=27&type=section&id=Fixed-Income%20Credit%20Quality) This section details the credit quality of fixed maturity AFS securities and commercial mortgage loans, reporting that as of June 30, 2025, 96.5% of fixed maturity AFS securities were investment grade (NAIC 1-2), and 99.7% of commercial mortgage loans were investment grade (CM1-2) Fixed Maturity AFS Securities Credit Quality (in millions of USD, except percentages) | Rating | As of 6/30/24 (Amount) | As of 6/30/24 (%) | As of 6/30/25 (Amount) | As of 6/30/25 (%) | | :---------------------- | :--------------------- | :---------------- | :--------------------- | :---------------- | | NAIC 1 (AAA-A) | $51,419 | 59.1% | $53,585 | 60.4% | | NAIC 2 (BBB) | $32,686 | 37.6% | $31,935 | 36.1% | | Total investment grade | $84,105 | 96.7% | $85,520 | 96.5% | | Total below investment grade | $2,837 | 3.3% | $3,038 | 3.5% | | Total | $86,942 | 100.0% | $88,558 | 100.0% | Commercial Mortgage Loans Credit Quality (in millions of USD, except percentages) | Rating | As of 6/30/24 (Amount) | As of 6/30/24 (%) | As of 6/30/25 (Amount) | As of 6/30/25 (%) | | :---------------------- | :--------------------- | :---------------- | :--------------------- | :---------------- | | CM1 (AAA-A) | $13,515 | 78.1% | $13,329 | 76.3% | | CM2 (BBB) | $3,758 | 21.7% | $4,083 | 23.4% | | CM3-7 (BB and lower) | $40 | 0.2% | $61 | 0.3% | | Total | $17,313 | 100.0% | $17,473 | 100.0% | [GAAP to Non-GAAP Reconciliations](index=28&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section provides reconciliations between GAAP financial measures and the company's non-GAAP adjusted measures, offering a clearer view of underlying operational performance [Select GAAP to Non-GAAP Reconciliations - Net Income](index=28&type=section&id=Select%20GAAP%20to%20Non-GAAP%20Reconciliations%20-%20Net%20Income) This section reconciles GAAP net income (loss) to adjusted income (loss) from operations, showing that for the six months ended June 30, 2025, adjusted income from operations available to common stockholders was $706 million, a 32% increase from the prior year, despite a GAAP net loss GAAP to Non-GAAP Net Income Reconciliation (in millions of USD) | Metric | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change | | :---------------------------------------------------------------- | :--------------------- | :--------------------- | :----- | | Net income (loss) available to common stockholders – diluted | $2,073 | $(69) | NM | | Total adjustments | $1,536 | $(775) | NM | | Adjusted income (loss) from operations | $580 | $752 | 30% | | Adjusted income (loss) from operations available to common stockholders | $534 | $706 | 32% | [Select GAAP to Non-GAAP Reconciliations - Revenues](index=29&type=section&id=Select%20GAAP%20to%20Non-GAAP%20Reconciliations%20-%20Revenues) This section reconciles total GAAP revenues to adjusted operating revenues, indicating that adjusted operating revenues increased by 3.3% for the six months ended June 30, 2025, reaching $9,411 million, while total GAAP revenues decreased by 5.8% GAAP to Non-GAAP Revenues Reconciliation (in millions of USD) | Metric | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change | | :------------------------------------ | :--------------------- | :--------------------- | :----- | | Total revenues | $9,269 | $8,735 | -5.8% | | Revenue adjustments from annuity and life insurance product features | $(474) | $(364) | 23.2% | | Investment gains (losses) | $(311) | $(183) | 41.2% | | Adjusted operating revenues | $9,111 | $9,411 | 3.3% | [Select GAAP to Non-GAAP Reconciliations - Earnings Per Share](index=30&type=section&id=Select%20GAAP%20to%20Non-GAAP%20Reconciliations%20-%20Earnings%20Per%20Share) This section reconciles GAAP diluted earnings (loss) per common share to adjusted income (loss) from operations per diluted share, demonstrating that adjusted income from operations per diluted share increased by 28.1% for the six months ended June 30, 2025, reaching $3.97, contrasting with a GAAP net loss per share GAAP to Non-GAAP Earnings Per Share Reconciliation (per share) | Metric | 6 Months Ended 6/30/24 | 6 Months Ended 6/30/25 | Change | | :---------------------------------------------------------------- | :--------------------- | :--------------------- | :----- | | Net income (loss) | $12.03 | $(0.39) | NM | | Adjusted income (loss) from operations | $3.10 | $3.97 | 28.1% | [Select GAAP to Non-GAAP Reconciliations - Stockholders' Equity and Book Value Per Share](index=32&type=section&id=Select%20GAAP%20to%20Non-GAAP%20Reconciliations%20-%20Stockholders%27%20Equity%20and%20Book%20Value%20Per%20Share) This section reconciles GAAP stockholders' equity and book value per share to adjusted stockholders' equity and adjusted book value per share, showing adjusted stockholders' equity increased by 18.6% to $13,873 million as of June 30, 2025, and adjusted book value per share increased by 6.2% to $72.77 GAAP to Non-GAAP Stockholders' Equity and Book Value Per Share Reconciliation (in millions of USD, except per share data) | Metric | As of 6/30/24 | As of 6/30/25 | Change | | :---------------------------------------------------------------- | :------------ | :------------ | :----- | | Stockholders' equity | $7,949 | $9,548 | 20.1% | | Adjusted stockholders' equity | $11,698 | $13,873 | 18.6% | | Book value per share | $40.78 | $44.91 | 10.1% | | Adjusted book value per share | $68.51 | $72.77 | 6.2% |

Core Insights - Lincoln National Corporation (LNC) is a diversified life insurance and investment management company, providing a range of wealth accumulation, protection, and retirement products. The company has outperformed the industry average with a year-to-date increase of 9.1% compared to 3.7% [1][2]. Company Overview - LNC is headquartered in Radnor, PA, with a market capitalization of $5.9 billion. The company operates through four business segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services. Its trailing 12-month price-to-book (P/B) ratio is 0.82X, significantly lower than the industry average of 2.02X [2]. Financial Estimates - The Zacks Consensus Estimate for LNC's 2025 earnings is $7.11 per share, reflecting a 0.6% year-over-year increase. Revenue estimates for 2025 are projected at $18.7 billion. LNC has consistently beaten earnings estimates over the past four quarters, with an average surprise of 10.7% [4]. Growth Drivers - LNC's revenue growth is driven by strong performance in its Annuities and Group Protection segments, supported by higher insurance premiums and fee income. The company is enhancing its in-force book and margin expansion initiatives, positioning itself well for future growth [5]. - The Annuities segment saw a 33% year-over-year increase in total sales, reaching $3.8 billion in Q1 2025. The company is shifting towards a more balanced mix of products, focusing on spread-based offerings [6]. - The Group Protection business reported a 26% year-over-year increase in income from operations in Q1 2025, with improved underwriting results and prudent acquisitions contributing to its growth. The segment's operating margin improved by 120 basis points [7]. Strategic Initiatives - LNC has formed a long-term strategic partnership with Bain Capital, aimed at enhancing private asset origination and accelerating value creation across various streams. This partnership is part of LNC's efforts to reshape its life product portfolio and improve its retirement business capabilities [8]. Shareholder Returns - In Q1 2025, LNC allocated $77 million for dividend payouts, maintaining a quarterly dividend of 45 cents per share, resulting in a dividend yield of 5.2%, which exceeds the industry average of 3.2% [9].

Group 1 - The article discusses the availability of a free trial for active investors to join a chat room with sophisticated traders and investors [1] Group 2 - There is a disclosure indicating that the author has no current stock or derivative positions in the mentioned companies but may initiate a short position in LNC.PR.D within the next 72 hours [2] - The article emphasizes that past performance does not guarantee future results and that no specific investment recommendations are provided [3]

Core Insights - The article discusses the potential investment opportunities in LNC, highlighting the author's intention to initiate a long position in the stock within the next 72 hours [2]. Group 1: Company Overview - LNC is positioned as a company of interest for potential investment, with the author expressing a favorable outlook on its stock performance [2]. Group 2: Market Context - The financial sector is experiencing fluctuations, and the author, with over 18 years of experience, provides insights into the current market dynamics that may affect LNC [1].