Core Insights - Lincoln National Corporation (LNC) reported fourth-quarter 2025 adjusted earnings per share of $2.21, exceeding the Zacks Consensus Estimate by 18.7% and reflecting a year-over-year increase of 15.7% [1][9] - Adjusted operating revenues rose 5.7% year over year to $4.9 billion, surpassing the consensus mark by 1% [1][9] Financial Performance - The increase in quarterly results was driven by higher insurance premiums, strong annuity deposits, and solid Life Insurance performance, alongside higher net investment income and improved mortality results [2] - Insurance premiums increased by 5.4% year over year to $1.7 billion, beating the Zacks Consensus Estimate by 1% [3] - Net investment income grew 11% year over year to $1.6 billion, exceeding the consensus mark by 6.7% [3] - Total expenses rose 35.2% year over year to $4 billion, while net income was reported at $754 million, down from $1.7 billion in the prior-year quarter [4] Segment Performance - The Annuities segment's operating income was $311 million, up 2.6% year over year, with operating revenues increasing by 7% to $1.3 billion [6] - The Life Insurance unit recorded an operating income of $77 million, improving from a loss of $15 million in the prior year, with operating revenues growing 2.2% to $1.6 billion [7] - The Group Protection segment's operating income increased 1.9% year over year to $109 million, with operating revenues totaling $1.5 billion, an 8.3% year-over-year improvement [8] - The Retirement Plan Services segment reported an operating income of $46 million, rising 7% year over year, with operating revenues increasing 4.5% to $352 million [10] Financial Position - As of December 31, 2025, Lincoln National had cash and invested cash of $9.5 billion, up from $5.8 billion at the end of 2024, and total assets of $417.2 billion, an increase from $390.8 billion [12] - Long-term debt remained stable at $5.9 billion, while total stockholders' equity rose to $10.9 billion from $8.3 billion at the end of 2024 [12] - Book value per share, excluding accumulated other comprehensive income, was $73.10, up from $72.06 at the end of 2024 [13] Full-Year Update - For the full year 2025, Lincoln National reported adjusted earnings per share of $8.23, a 16.4% increase year over year, with adjusted operating revenues improving 4.1% to $19.1 billion [15] - The operating revenues in the Annuities, Life Insurance, Group Protection, and Retirement Plan Services segments saw year-over-year improvements of 1.9%, 3.1%, 6.7%, and 2.4%, respectively [15] 2026 Outlook - In 2026, the Annuities, Life Insurance, Group Protection, and Retirement Plan Services units are projected to account for 58-60%, 8-9%, 24-25%, and 8-9% of the company's total operating income earnings, respectively [16] - Management aims to maintain an RBC ratio of over 420% in both 2026 and the long term [16]

Financial Data and Key Metrics Changes - Adjusted operating income increased by 31% year-over-year in Q4 2025, marking the highest level in four years [5][25] - Full-year adjusted income from operations available to common shareholders was over $1.5 billion, a 23% improvement compared to 2024 [25] - Net income available to common stockholders for Q4 was $745 million, or $3.80 per diluted share [26] Business Line Data and Key Metrics Changes - Annuities sales volumes increased by 25% in 2025, with RILA sales up 35% and fixed annuity sales up 11% [11][12] - Group Protection delivered operating earnings of $493 million for the full year, up 16% from 2024, with a margin improvement to 9% [28] - Life Insurance operating earnings improved to $77 million for Q4, compared to an operating loss of $15 million in the prior year [36] Market Data and Key Metrics Changes - Group Protection now accounts for approximately 25% of business unit earnings, up from 18% in 2023 [45] - Spread-based annuity account balances increased to 30%, up from 25% in 2023 [46] - Average account balances in Retirement Plan Services increased nearly 9% year-over-year to $124 billion [35] Company Strategy and Development Direction - The company is focused on increasing risk-adjusted returns, reducing volatility, and growing its franchise through strategic realignment and operational execution [7][10] - There is an emphasis on products with higher risk-adjusted margins and stable cash flows to strengthen business resilience [9][14] - The company aims to maintain expense discipline while investing strategically to support long-term priorities [8][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value despite potential market volatility [10][22] - The company is committed to improving the quality and durability of earnings while focusing on profitable growth [21][36] - The outlook for 2026 includes expectations for continued earnings growth and capital return to shareholders [49] Other Important Information - The investment portfolio delivered an annualized return of nearly 12% for Q4, exceeding targets [24][42] - The company completed the consolidation of several Life Insurance captive entities, which is expected to improve free cash flow [43][69] - Holding company liquidity ended the year at approximately $1.1 billion, providing financial flexibility for future capital returns [44] Q&A Session Summary Question: Capital return guidance and buybacks - Management indicated that capital deployment priorities include maintaining excess capital in operating entities and preparing for optimal handling of preferred securities [52][54] Question: Excess cash and potential uses - The excess cash at the holding company is primarily aimed at managing preferred securities and increasing capital return to shareholders [56] Question: Life Insurance captive consolidation impact - The consolidation of captives is expected to reduce reserve financing costs and improve the free cash flow profile of the legacy Life block [68][69]

Financial Data and Key Metrics Changes - Adjusted Operating Income increased by 31% year-over-year in Q4 2025, marking the highest level in four years [5] - Full-year Adjusted Operating Income available to common stockholders was over $1.5 billion, a 23% improvement compared to 2024 [25] - Net income available to common stockholders for Q4 was $745 million, or $3.80 per diluted share [26] Business Line Data and Key Metrics Changes - Annuities delivered operating income of $311 million for Q4, with total sales volumes up 25% year-over-year [11][30] - Group Protection's full-year operating earnings increased by 16% to $493 million, with a margin improvement to 9% [28] - Life insurance delivered operating earnings of $77 million for Q4, a significant improvement from an operating loss of $15 million in the prior year [36] Market Data and Key Metrics Changes - RILA sales increased by 35% in 2025, reflecting strong customer demand [12] - Fixed Annuity sales increased by 11%, while Variable Annuity sales rose by 27% year-over-year [12] - Group Protection's full-year premium growth was nearly 7%, driven by strong sales and persistency [19] Company Strategy and Development Direction - The company is focused on increasing risk-adjusted returns, reducing volatility, and growing its franchise [7] - Strategic realignment efforts are aimed at optimizing the operating model and enhancing capital efficiency [9] - The company is prioritizing profitable growth over top-line sales growth, particularly in annuities [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value despite potential market volatility [10] - The company expects to sustain momentum in earnings growth and improve the quality of earnings over time [22] - Management highlighted the importance of maintaining expense discipline and optimizing the investment strategy [41][42] Other Important Information - The investment portfolio delivered an annualized return of nearly 12% for Q4, exceeding targets [24] - The company completed the consolidation of several life insurance captive entities, which is expected to improve free cash flow [43][69] - Holding company liquidity ended the year at approximately $1.1 billion, providing financial flexibility for future capital returns [44] Q&A Session Summary Question: Capital return expectations for 2026 - Management indicated that capital deployment priorities include maintaining excess capital in operating entities and preparing for preferred stock redemption [52][54] Question: Future remittances and shareholder returns - Management confirmed that remittances are expected to grow, and there is potential for increased capital return to shareholders in the future [60][61] Question: Impact of captive consolidation on earnings - Management noted that the captive consolidation completed in Q4 provided a $10 million benefit to life earnings and is part of broader efforts to improve free cash flow [69]

Financial Data and Key Metrics Changes - Adjusted Operating Income increased by 31% year-over-year for Q4 2025, marking the highest level in four years, with full-year Adjusted Operating Income exceeding $1.5 billion, a 23% improvement compared to 2024 [5][25][26] - Net income available to common stockholders for Q4 was $745 million, or $3.80 per diluted share, driven by favorable market conditions [26] - The company reported a strong alternative investments portfolio return of nearly 12% for the quarter [25][42] Business Line Data and Key Metrics Changes - Annuities delivered operating income of $311 million for Q4, with total sales volumes up 25% year-over-year, driven by a shift towards spread-based products [10][31] - Group Protection achieved operating earnings of $493 million for the full year, up 16% from 2024, with a margin improvement to 9% [28][30] - Life insurance operating earnings improved significantly to $77 million for Q4, compared to an operating loss of $15 million in the prior year [36][38] Market Data and Key Metrics Changes - RILA sales increased by 35% in 2025, while Fixed Annuity sales rose by 11%, reflecting strong market demand [11][12] - Group Protection's full-year premium growth was nearly 7%, with strong sales across all products and segments [19][30] - Retirement Plan Services reported average account balances increasing nearly 9% year-over-year to $124 billion, despite net outflows of approximately $1 billion for the quarter [35][36] Company Strategy and Development Direction - The company is focused on improving risk-adjusted returns on capital, reducing volatility, and growing its franchise through strategic realignment and operational enhancements [6][7] - There is an emphasis on products with higher risk-adjusted margins and stable cash flows to strengthen business resilience [8][9] - The company aims to maintain disciplined expense management while investing strategically to support long-term priorities [7][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value, despite potential market volatility and economic changes [9][23] - The company is committed to enhancing capital efficiency and optimizing its operating model to support sustainable growth [22][48] - Looking ahead to 2026, management expects continued earnings growth and a focus on profitable growth over top-line sales growth [12][16] Other Important Information - The company completed the consolidation of several life insurance captive entities, which is expected to improve GAAP earnings by approximately $25 million to $30 million in 2026 [71] - Holding company liquidity ended the year at approximately $1.1 billion, providing financial flexibility for future capital returns to shareholders [44][49] Q&A Session Summary Question: Capital return expectations for 2026 - Management indicated that capital deployment priorities include maintaining excess capital in operating entities and preparing for optimal handling of preferred securities [52][54] Question: Excess cash management at the holding company - Management confirmed that excess cash would primarily be used for managing preferred securities and increasing capital return to shareholders [56][57] Question: Life insurance business improvements - Management discussed the benefits of captive consolidation and ongoing efforts to enhance the free cash flow profile of the legacy life block, projecting further improvements in earnings [70][71]

Earnings Supplement Fourth Quarter 2025 February 12, 2026 1 Forward-Looking Statements – Cautionary Language Certain statements made in this presentation and in other written or oral statements made by Lincoln or on Lincoln's behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or ...

Core Insights - Lincoln National Corporation (LNC) is positioned for growth due to strong performance across all segments, new product rollouts, and expense management, with shares increasing by 28.1% over the past six months compared to the industry's 7.1% rise [1][9] Company Overview - LNC has a market capitalization of $8.5 billion and operates as a diversified life insurance and investment management company, offering a variety of wealth accumulation, protection, and retirement products [2] - The trailing 12-month price-to-book (P/B) ratio for LNC is 0.89X, which is below the industry average of 2X [2] Earnings Estimates - The Zacks Consensus Estimate for LNC's 2025 earnings is $7.89 per share, reflecting an 11.6% year-over-year increase, with revenues projected at $19 billion [3] - LNC has consistently beaten earnings estimates in the past four quarters, averaging a surprise of 12% [3] Growth Drivers - LNC operates through four segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services, with revenues supported by a balanced business mix and higher insurance premiums [4] - The Annuities segment benefits from strong demand and favorable equity markets, while Life Insurance is gaining traction through improved operating efficiency [5] - Group Protection shows steady premium growth due to pricing discipline, and Retirement Plan Services is seeing positive net flows and increasing account balances [5] Strategic Focus - The company is enhancing its business mix towards higher-margin growth and investing in digital tools and technology modernization to improve service capabilities and customer experience [6] - LNC's financial foundation is strong, with cash and invested cash at $10.7 billion as of September 30, 2025, an increase of 83.9% from the previous year, and total debt at $5.8 billion [7] Financial Stability - LNC's dividend yield stands at 4%, higher than the industry average of 3.1%, supported by a rising cash balance and declining debt levels [7][9] - However, LNC has a higher total debt-to-capital ratio of 35.6% compared to the industry average of 14.6% [10]

Core Insights - Lincoln National Corporation (LNC) is enhancing its market reach and shareholder value through strategic partnerships and a positive financial outlook [1][5] Financial Outlook - Piper Sandler has set a price target of $48 for LNC, suggesting a potential price increase of approximately 4.03% from the current trading price of $46.14, reflecting the company's strong financial health [2] - LNC's stock has shown volatility, with a year's high of $46.70 and a low of $27.58, indicating investment opportunities [4] Strategic Partnerships - LNC has partnered with FOX Sports as the first-ever Game Break sponsor for the Women's Sports Desk, aligning with its mission to promote financial confidence and empowerment among women [3] - This multi-year sponsorship aims to enhance LNC's visibility and commitment to diversity and inclusion [3] Market Performance - LNC's current market capitalization is approximately $8.76 billion, with a trading volume of 1,101,742 shares, demonstrating solid presence and active investor interest in the financial services industry [4]

Core Insights - Lincoln National Corporation (LNC) reported a 2% increase in shares following the release of its third-quarter 2025 results, driven by strong annuity deposits and solid performance in Group Protection and Life Insurance [1] - The company achieved adjusted earnings per share (EPS) of $2.04, exceeding the Zacks Consensus Estimate by 10.9%, although it represented a 1% decline year over year [2] - Adjusted operating revenues grew 3.8% year over year to $4.8 billion, but fell short of the consensus estimate by 0.5% [2] Financial Performance - LNC's estimated Risk-Based Capital (RBC) ratio increased to over 420% by the end of the third quarter [3] - Insurance premiums rose 1.4% year over year to $1.6 billion, missing the Zacks Consensus Estimate by 2.1% [3] - Fee income reached $1.4 billion, up 2.4% year over year, but also missed the consensus mark by 2.2% [3] - Net investment income increased by 9% year over year to $1.5 billion, surpassing the consensus estimate by 6.2% [3] Revenue and Expense Analysis - Other revenues amounted to $206 million, reflecting a 28.8% year-over-year increase [4] - Total expenses decreased by 16.3% year over year to $4 billion [4] - Interest credited rose 8.4% year over year to $954 million [4] - The company reported a net income of $445 million, a significant recovery from a net loss of $528 million in the prior-year quarter [4] Segment Performance - The Annuities segment's operating income was $310 million, a 3% year-over-year increase, exceeding the consensus estimate [6] - Life Insurance operating income improved to $25 million, up from $22 million year over year, benefiting from stable mortality and higher alternative investment income [7] - Group Protection segment's operating income surged 36.7% year over year to $149 million, supported by favorable life experience [8] - Retirement Plan Services segment recorded an operating income of $46 million, a 5% year-over-year increase, aided by favorable equity markets [10] Financial Position - As of September 30, 2025, Lincoln National had cash and invested cash of $10.7 billion, up from $5.8 billion at the end of 2024 [12] - Total assets increased to $415.3 billion from $390.8 billion at the end of 2024 [12] - Long-term debt decreased to $5.8 billion from $5.9 billion as of December 31, 2024 [12] - Total stockholders' equity rose to $10.5 billion from $8.3 billion at the end of 2024 [12] Dividend and Outlook - Lincoln National paid out quarterly dividends of $85 million [14] - For 2026, the company projects that the Annuities, Life Insurance, Group Protection, and Retirement Plan Services units will account for 55-65%, 10-15%, 20-30%, and 5-15% of total operating income, respectively [15]

Core Insights - Lincoln National (LNC) reported $4.78 billion in revenue for Q3 2025, a year-over-year increase of 3.9% [1] - The EPS for the quarter was $2.04, slightly down from $2.06 a year ago, with a surprise of +10.87% compared to the consensus estimate of $1.84 [1] - The revenue fell short of the Zacks Consensus Estimate of $4.8 billion, resulting in a surprise of -0.45% [1] Financial Performance Metrics - Loss Ratio for Group Protection was 68.3%, better than the average estimate of 71.4% [4] - Net Flows for Annuities were reported at $-1.14 billion, compared to the average estimate of $-1.4 billion [4] - Net Flows for Life Insurance were $1.66 billion, significantly higher than the average estimate of $671.25 million [4] - Net Flows for Retirement Plan Services reached $755 million, exceeding the average estimate of $135.64 million [4] - Fee income revenues were $1.38 billion, slightly below the average estimate of $1.42 billion, representing a year-over-year change of +2.4% [4] - Insurance premiums revenues were $1.64 billion, compared to the average estimate of $1.67 billion, with a year-over-year change of +1.4% [4] - Net investment income was reported at $1.54 billion, surpassing the average estimate of $1.45 billion, reflecting a +9.4% change year-over-year [4] - Retirement Plan Services Fee income was $77 million, slightly below the average estimate of $78.54 million, with a +4.1% year-over-year change [4] - Retirement Plan Services Net investment income was $257 million, in line with the average estimate of $256.62 million, showing a +1.6% change year-over-year [4] - Other revenues for Retirement Plan Services were $9 million, exceeding the average estimate of $6.33 million, with a year-over-year change of +12.5% [4] - Life Insurance premiums were $260 million, below the average estimate of $274.47 million, reflecting a -9.1% change year-over-year [4] - Life Insurance Fee income was $683 million, compared to the average estimate of $720.71 million, with a year-over-year change of +1.6% [4] Stock Performance - Lincoln National's shares returned -0.2% over the past month, while the Zacks S&P 500 composite increased by +3.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported third quarter adjusted operating income available to common stockholders of $397 million, or $2.04 per share, marking a year-over-year growth for the fifth consecutive quarter [22][21] - Net income available to common stockholders was $411 million, or $2.12 per diluted share, with a notable difference from adjusted operating income primarily due to changes in fair value and non-operating income [22][23] - The annualized return on alternative investments was just under 10%, amounting to $101 million after tax, slightly below the target [22] Business Line Data and Key Metrics Changes - Annuities business reported sales of $4.5 billion, marking the fourth consecutive quarter of increased sales, with spread-based products representing 63% of the new business total [9][10] - Life insurance earnings reached $54 million, significantly improving year-over-year, with sales totaling nearly $300 million, driven largely by executive benefits [13][14] - Group protection delivered earnings consistent with the prior year, with a 5% year-over-year premium growth and nearly 40% sales growth across market segments [16][17] - Retirement Plan Services achieved operating income of $46 million, up from $44 million in the prior year, with total deposits increasing by 20% year-over-year [31][18] Market Data and Key Metrics Changes - The annuities business saw a 36% year-over-year increase in fixed annuity sales, while registered index-linked annuities (RILA) sales increased by 21% [10][11] - Group protection's premium growth was broad-based, with supplemental health increasing by 33% year-over-year [17] - Retirement Plan Services reported a 5% year-over-year increase in account balances, reaching $123 billion, with net inflows totaling $755 million [33][31] Company Strategy and Development Direction - The company is focused on increasing risk-adjusted returns, reducing result volatility, and growing its franchise, with a clear strategy for profitable growth [5][6] - The annual Assumption Review indicated a small favorable impact on adjusted operating income, reflecting alignment between underlying experience and future expectations [8][25] - The company is transitioning to retaining all fixed annuity business, which is expected to enhance spread-based earnings over time [39][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and the effectiveness of its strategic initiatives, emphasizing the importance of disciplined execution [20][21] - The company anticipates some variability in results but remains optimistic about long-term growth potential across all business lines [19][18] - Management highlighted the importance of maintaining a strong capital position and the disciplined deployment of excess capital to enhance risk-adjusted returns [39][42] Other Important Information - The company ended the quarter with an estimated RBC ratio well above the 420% buffer, maintaining a strong excess capital position [39] - The investment portfolio showed solid results, with 97% of investments rated investment grade and a focus on private credit and structured strategies [42][43] Q&A Session Summary Question: Drivers of improved Life earnings and future outlook - Management noted that the quarter reflected stable performance for the life insurance block, with mortality and alternative investment returns aligning with expectations, indicating a positive growth trajectory [48][49][54] Question: Capital plans and share repurchase program - Management indicated that detailed capital plans and free cash flow outlook would be discussed in the fourth quarter earnings call, expressing confidence in the company's direction and metrics [55][56] Question: Group protection margin expectations - Management affirmed a positive outlook for group protection, with expected margin improvements and continued premium growth, despite some normalization in disability trends [59][60][74]