Lincoln(US:LNC)2025-07-31 10:09Notes This section provides explanations for non-GAAP financial measures and definitions for key financial computations and metrics used in the report Non-GAAP Measures 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 presentation4 - 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 loans7 - 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 items8912 - Stockholders' equity, excluding AOCI and preferred stock, is used to analyze net worth by eliminating market movements primarily related to changes in interest rates13 - 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 rates1415 Computations & Definitions 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 outstanding21 - 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 goodwill22 - The leverage ratio monitors the level of debt relative to total capitalization, with debt and total capitalization adjusted for certain items23 - 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 Protection25 Credit Ratings 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 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 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) 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 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 This section details key financial performance indicators, including earnings, share metrics, return on equity, and stakeholder-focused ratios Earnings, Shares and Return on Equity 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 This section provides details on the company's investment portfolio, focusing on fixed-income asset classes and their credit quality Fixed-Income Asset Class 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 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 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 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 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 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 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% |