Core Insights - Equitable reported mixed Q2 2025 earnings, with adjusted non-GAAP EPS of $1.41 exceeding estimates but revenue falling short significantly [1][2] - Year-over-year comparisons show a sharp decline in both reported revenue and EPS, with revenue down nearly 33% and non-GAAP EPS down 23% [1][2] - A major life reinsurance deal with RGA completed on July 31, 2025, significantly reduced mortality risk and enhanced capital flexibility [1][5] Financial Performance - Q2 2025 non-GAAP EPS was $1.10, below the $1.28 estimate and down 23.1% from Q2 2024's $1.43 [2] - Revenue for Q2 2025 was $2.36 billion, a decline of 32.8% from the previous year [2] - Non-GAAP operating earnings were $352 million, down 28.9% from $495 million in Q2 2024 [2] - Total assets under management/administration increased to $1.07 trillion, up 8.4% year-over-year [2] Business Segments Overview - Equitable operates across three main business lines: retirement, asset management, and affiliated distribution, structured into six segments [3] - The Retirement segment saw net inflows of $1.7 billion, with first-year premiums up 7% [6] - Wealth Management achieved advisory net inflows of $2.0 billion and a 16% increase in assets under administration to $110 billion [6][11] - The Asset Management segment ended with $829.1 billion in AUM, but faced significant net outflows totaling $6.7 billion [7] Strategic Developments - The completion of the RGA reinsurance deal reduced mortality risk exposure by 75% and unlocked over $2 billion in value [5] - Equitable plans to utilize freed capital for share buybacks, debt reduction, and to strengthen core businesses [5] - The company returned $318 million to shareholders, exceeding its payout target range [9] Future Outlook - Management reaffirmed multi-year targets, including $2 billion in annual cash generation and 12-15% compound annual earnings growth through fiscal 2027 [12] - Expected growth and earnings acceleration in the second half of fiscal 2025, contingent on normalized capital markets [12] - Investors should monitor trends in net flows within the Asset Management segment and the impact of mortality volatility [13]

Core Insights - Lincoln National reported non-GAAP earnings per share of $2.36 for Q2 2025, exceeding analyst expectations by 25.5% [1] - Non-GAAP revenue was $4.308 billion, falling short of the consensus estimate of $4.66 billion by 7.6% [1] - The company showed improved operating margins, particularly in the Group Protection segment, which reached an operating margin of 12.5% [1] Financial Performance - Non-GAAP EPS increased by 26.2% year-over-year from $1.87 in Q2 2024 [2] - GAAP revenue decreased by 21.5% from $5.15 billion in Q2 2024 to $4.04 billion in Q2 2025 [2] - GAAP net income per diluted share fell by 25.6% from $5.11 in Q2 2024 to $3.80 in Q2 2025 [2] - Adjusted operating income (non-GAAP) rose to $427 million, a 31.8% increase from $324 million in the prior year [2] Business Segments Overview - Lincoln National operates through four segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services [3] - The Annuities segment reported operating income of $287 million, a 3% decline year-over-year, with sales growing 5% to $4.0 billion [6] - Life Insurance segment reversed a prior year loss, reporting operating income of $32 million, with sales increasing 15% to $121 million [7] - Group Protection achieved record operating income of $173 million, a 33% increase year-over-year, with premiums rising to $1.4 billion [8] - Retirement Plan Services saw operating income fall by 8% to $37 million, despite a 9.5% increase in deposits to $3.6 billion [9] Strategic Initiatives - The company is focusing on diversifying earnings sources, controlling expenses, and improving capital flexibility [4] - Distribution efficiency and product innovation are key priorities, with recent partnerships aimed at boosting sales and innovation [10] - A partnership with Bain Capital was established to manage at least $20 billion in assets over six years, enhancing investment capabilities [12] Risk Management and Financial Strength - Lincoln National maintained a risk-based capital (RBC) ratio above 420%, exceeding its 400% target [11] - Holding company liquidity was steady at $466 million as of Q2 2025, with net unrealized losses in available-for-sale securities narrowing by $1.4 billion year-over-year [12] - No material changes were reported in the company's financial strength ratings, with stable outlooks from major rating agencies [13] Future Outlook - Management did not provide formal financial guidance for the upcoming quarters but emphasized a disciplined approach to capital and risk-adjusted returns [14] - Investors are advised to monitor future net flow metrics in Annuities and Retirement Plan Services, as sustained outflows could impact profitability [15]