Lincoln(US:LNC)2025-10-30 10:14Financial Performance - Adjusted income from operations available to common stockholders is defined as after-tax adjusted income from operations less preferred stock dividends[4]. - Adjusted operating revenues represent GAAP revenues excluding the effects of changes in the fair value of derivative instruments related to guaranteed living benefits and guaranteed death benefits[5]. - The company excludes certain items from adjusted income (loss) from operations to enhance understanding of underlying trends and long-term performance[8]. - Insurance premiums for the three months ended September 30, 2025, were $1,637 million, a 1.4% increase from the previous quarter[22]. - Net investment income increased by 9.0% to $1,544 million for the three months ended September 30, 2025, compared to the prior quarter[22]. - Total revenues for the three months ended September 30, 2025, were $4,555 million, reflecting a 10.8% increase from the previous quarter[22]. - Total expenses decreased by 16.3% to $4,031 million for the three months ended September 30, 2025, compared to the prior quarter[22]. - Net income for the three months ended September 30, 2025, was $445 million, a 184.3% increase from the previous quarter[22]. - The diluted earnings per share for the three months ended September 30, 2025, was $2.12, a 164.4% increase from the previous quarter[22]. - The company’s net income for the three months ended September 30, 2024, was a loss of $528 million, compared to a net income of $1.686 billion in the previous quarter, reflecting a significant decrease of 184.3%[25]. - Adjusted operating income from operations for the same period was $461 million, representing a 9.8% increase compared to the previous quarter[25]. - The company reported a net loss of $(528) million for the three months ended September 30, 2024, compared to a net income of $1,588 million for the nine months ended September 30, 2024, representing a 184.3% increase[44]. Stockholders' Equity and Book Value - Stockholders' equity, excluding accumulated other comprehensive income (AOCI) and preferred stock, is useful for analyzing the company's net worth[9]. - Adjusted book value per share is calculated by dividing adjusted stockholders' equity by common shares outstanding, providing insight into the net worth attributable to business operations[12]. - The total stockholders' equity rose to $10.452 billion, a 16.0% increase from the previous quarter[24]. - The book value per common share increased to $49.56, reflecting a 5.5% rise from the previous quarter[25]. - Stockholders' equity at the end of September 30, 2025, reached $10,452 million, marking a 16.0% increase from $9,013 million at the end of September 30, 2024[48]. - The adjusted stockholders' equity for the nine months ended September 30, 2025, was $14,180 million, an 18.5% increase from $11,967 million in the same period of 2024[48]. - Lincoln Financial's stockholders' equity, excluding AOCI and preferred stock, was $13,305 million as of September 30, 2025, representing a 24.2% increase from $10,709 million in the previous year[48]. Debt and Leverage - The leverage ratio is used to monitor the level of debt relative to total capitalization, reflecting total debt and preferred stock adjusted for certain items[17]. - The company reported senior debt ratings of bbb+ from AM Best and BBB+ from Fitch as of October 30, 2025[20]. - The financial strength ratings for Lincoln National Life Insurance Company are A from AM Best and A+ from Fitch[20]. - Total debt decreased by 6.9% to $5.772 billion as of September 30, 2025, down from $6.197 billion a year earlier[26]. - The leverage ratio improved to 25.2% as of September 30, 2025, down from 28.4% a year earlier, indicating a stronger equity position[26]. Investment Performance - Cash and invested cash increased by 77.4% to $10,668 million as of September 30, 2025, compared to the previous quarter[23]. - The total fixed maturity available-for-sale securities remained stable at $90,680 million as of September 30, 2025[23]. - Equity securities increased by 85.0% to $542 million as of September 30, 2025, compared to the previous quarter[23]. - The total fixed maturity AFS securities increased to $88,814 million by September 30, 2025, reflecting a growth trend in the investment portfolio[42]. - The investment grade securities (NAIC 1 and 2) comprised 96.6% of total investments as of September 30, 2024, with NAIC 1 (AAA-A) at $51,370 million (58.9%) and NAIC 2 (BBB) at $32,774 million (37.7%)[43]. - The total below investment grade securities (NAIC 3 to 6) accounted for 3.4% of total investments as of September 30, 2024, with NAIC 3 (BB) at $1,008 million (1.2%) and NAIC 4 (B) at $1,828 million (2.1%)[43]. Revenue and Sales Growth - Total adjusted operating revenues for the three months ended September 30, 2025, were $4.780 billion, reflecting a 3.8% increase from $4.603 billion in the same period of 2024[27]. - Annuities operating revenues for the three months ended September 30, 2025, rose by 6.3% to $1.270 billion, compared to $1.195 billion in the same period of 2024[27]. - Life insurance operating revenues increased by 1.3% to $1.610 billion for the three months ended September 30, 2025, from $1.589 billion a year earlier[27]. - Group protection operating revenues grew by 5.2% to $1.507 billion for the three months ended September 30, 2025, compared to $1.432 billion in the same period of 2024[27]. - Total Annuities sales increased by 32.4% year-over-year to $4,467 million for the three months ended September 30, 2025[28]. - Life Insurance total sales surged by 144.3% to $298 million for the three months ended September 30, 2025[28]. - Group Protection total sales increased by 38.1% year-over-year to $116 million for the three months ended September 30, 2025[28]. Operational Metrics - The average diluted shares outstanding increased by 12.3% to 195.0 million for the period[25]. - The total accumulated other comprehensive income (loss) decreased by 43.1% to $(3.839) billion as of September 30, 2025[24]. - The average account balances in the retirement plan services segment rose by 7.9% to $119.259 billion for the three months ended September 30, 2025, compared to $110.550 billion in the same period of 2024[27]. - Total operating expenses for the three months ended September 30, 2024, were $836 million, a 7.9% increase compared to the previous quarter[31]. - The income from operations for the Retirement Plan Services was $44 million, representing a 4.5% increase from the previous quarter[34].