Lincoln(US:LNC)2025-05-08 10:05Financial Performance - Total revenues for Q1 2025 were $4,691 million, an increase of 14.0% compared to Q4 2024[20] - Net loss available to common stockholders for Q1 2025 was $(756) million, a decrease from net income of $1,675 million in Q4 2024[20] - Net income for the three months ended 3/31/24 was $1,222 million, while for 3/31/25 it was a loss of $722 million, indicating a significant fluctuation[26] - Total adjusted operating revenues for Lincoln Financial increased by 2.2% to $4,685 million for the three months ended March 31, 2025, compared to $4,584 million in the same period of 2024[31] - Net income available to common stockholders for the three months ended March 31, 2024, was $1,191 million, a significant increase compared to the previous quarter's $884 million[47] Revenue Sources - Insurance premiums increased by 4.7% to $1,676 million in Q1 2025 from $1,586 million in Q4 2024[20] - Net investment income rose by 8.2% to $1,457 million in Q1 2025, up from $1,435 million in Q4 2024[20] - Total annuities sales increased by 33.1% to $3,789 million in Q1 2025, driven by strong RILA and traditional variable products[30] - Life insurance operating revenues increased by 3.0% to $1,541 million in Q1 2024, with average in-force face amount slightly declining by 1.2%[28] - Group protection operating revenues rose by 6.7% to $1,425 million in Q1 2024, with insurance premiums also increasing by 6.7%[28] Expenses and Losses - Total expenses surged by 117.9% to $5,640 million in Q1 2025, compared to $2,963 million in Q4 2024[20] - Adjusted income from operations available to common stockholders for 3/31/25 was $280 million, reflecting a 33.3% decrease from the previous quarter[26] - Pre-tax adjusted income from operations for 3/31/25 was $362 million, a 24.4% decrease from the previous quarter[26] - Total operating commissions and other expenses incurred decreased by 5.6% to $1,405 million for the three months ended March 31, 2025, down from $1,488 million in the same period of 2024[32] Assets and Liabilities - Total assets as of 3/31/25 decreased by 0.1% to $382,898 million compared to 12/31/24[21] - Total liabilities as of 3/31/25 decreased by 0.3% to $374,705 million compared to 12/31/24[23] - Total stockholders' equity as of 3/31/25 was $8,193 million, an 8.6% decrease from the previous quarter[24] - The average account balances, net of reinsurance, for Lincoln Financial increased by 5.0% to $44,390 million for the three months ended March 31, 2025, compared to $42,280 million for the same period in 2024[34] Market and Investment Outlook - Future outlook includes continued focus on annuities and retirement plan services, with deposits from new and existing customers expected to drive growth[17] - The company reported a leverage ratio to monitor debt relative to total capitalization, indicating financial health and risk management[14] - Credit ratings as of May 8, 2025, include a senior debt rating of bbb+ from AM Best and BBB+ from Fitch[18] - Investment gains (losses) decreased by 27.2% in Q1 2025 compared to the previous year, indicating a challenging investment environment[48] Shareholder Information - Cash returned to common stockholders through common dividends remained stable at $77 million for the next four quarters, reflecting a 1.3% increase[27] - Book value per share as of 3/31/25 was $41.96, a 9.1% increase from 12/31/24[26] - Stockholders' equity at the end of Q1 2025 was $8,193 million, showing an 8.6% increase year-over-year[50] - Adjusted stockholders' equity reached $12,569 million by Q1 2025, marking a 13.4% increase from the previous year[50] Operational Highlights - The effective federal income tax rate for the three months ended March 31, 2025, was 14.7%, down from 18.5% in the same period of 2024[33] - The loss ratio for Lincoln Financial's Life product line improved to 75.2% for the three months ended March 31, 2025, compared to 76.1% for the same period in 2024[36] - The balance of DAC, VOBA, and DSI at the end of the period increased by 1.3% from $12,475 million on 12/31/24 to $12,563 million on 3/31/25[39] - The company reported a significant increase in revenue adjustments from annuity and life insurance product features, with a change of 139.1% in Q1 2025[48]