Lincoln(US:LNC)2024-08-01 10:06Financial Performance - Total revenues for Lincoln Financial Group increased by 75.9% to $4,203 million for the three months ended September 30, 2023, compared to $2,929 million for the same period in 2022[8]. - Net income available to common stockholders for the three months ended September 30, 2023, was $502 million, a 76.1% increase from $284 million in the same period last year[8]. - Net income for the quarter was $511 million, a decrease of 75.1% compared to the previous year[14]. - Adjusted income from operations available to common stockholders was $343 million, a decrease of 7.0% year-over-year[14]. - The company reported a realized gain of $663 million for the three months ended September 30, 2023, a significant increase of 137.2% compared to a loss of $453 million in the same period last year[8]. - Adjusted operating revenues for the consolidated entity were $4,673 million, a decrease of 1.2% from $4,730 million[18]. - The company reported a significant increase in investment gains, with losses reduced to $230 million from $668 million year-over-year, reflecting a 65.6% improvement[50]. Adjusted Metrics - Adjusted income from operations (diluted) was $2.02, a decrease of 8.9% year-over-year[14]. - Adjusted operating revenues represent GAAP revenues excluding the pre-tax effects of certain items, including changes in the fair value of derivative instruments and credit loss-related adjustments[2]. - Management believes that non-GAAP measures provide a better understanding of underlying trends in the business, as excluded items are unpredictable and not indicative of current fundamentals[4]. - Adjusted income (loss) from operations ROE is calculated by dividing annualized adjusted income (loss) from operations available to common stockholders by adjusted average stockholders' equity[4]. Stockholders' Equity and Book Value - Stockholders' equity increased to $7,949 million, reflecting a 36.6% change from $5,819 million year-over-year[52]. - Book value per share reached $40.78, representing a 43.1% increase from $28.49[52]. - Adjusted book value per share is calculated by dividing adjusted stockholders' equity by common shares outstanding, providing insight into net worth attributable to business operations[4]. - The book value per share, excluding AOCI, was $66.37, a 13.3% increase from $58.58[52]. Revenue Streams - Insurance premiums for the six months ended June 30, 2024, rose by 1.1% to $3,226 million compared to $3,191 million for the same period in 2023[8]. - Fee income for the six months ended June 30, 2024, decreased by 3.0% to $2,662 million compared to $2,744 million for the same period in 2023[8]. - Total Annuities for the quarter ended 9/30/23 reached $2,728 million, a 5.7% increase from $2,582 million in the previous quarter[20]. - Total variable annuities increased by 9.8% to $2,150 million for the quarter ended 9/30/23, compared to $1,958 million in the same period last year[20]. - Life Insurance total for the quarter was $144 million, a decrease of 14.6% from $123 million in the previous quarter[20]. Expenses and Liabilities - Total expenses for the three months ended September 30, 2023, were $3,169 million, reflecting a 74.3% increase from $2,327 million in the same period in 2022[8]. - Total liabilities increased by 9.8% from $342,984 million on 6/30/23 to $376,584 million on 6/30/24[12]. - General and administrative expenses for the six months ended 6/30/24 were $1,457 million, an increase of 13.0% compared to $1,289 million for the same period last year[24]. Investment Performance - Net investment income decreased by 11.7% to $1,332 million for the three months ended September 30, 2023, compared to $1,494 million for the same period in 2022[8]. - Total investments decreased by 5.9% from $134,469 million on 6/30/23 to $126,595 million on 6/30/24[10]. - The total gross balance as of September 30, 2023, was $174,747 million, an 11.9% increase from $156,124 million at the beginning of the period[39]. Market Position and Strategy - The company aims to enhance its market position through new product development and strategic acquisitions in the insurance and financial services sectors[6]. - The company is focusing on market expansion and new product development to drive future growth[50]. - The company anticipates continued growth in annuities and group protection segments in the upcoming quarters[20].