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Mar 31, 2021
Lincoln National Q1 2021 Earnings Report
Reported strong first quarter results driven by strategic actions and increased operating revenues.
Key Takeaways
Lincoln Financial Group reported a net income of $225 million, or $1.16 per diluted share, for the first quarter of 2021, compared to $52 million, or $0.15 per diluted share, for the same period in 2020. Adjusted income from operations was $350 million, or $1.82 per diluted share, compared to $465 million, or $2.24 per diluted share, in the first quarter of 2020. The results reflect increased operating revenues and expense efficiency across all business segments, though were impacted by the pandemic.
Net income EPS was $1.16, and adjusted operating EPS was $1.82.
Adjusted operating EPS included a negative impact of $1.15 from elevated pandemic-related claims and a positive impact of $0.43 from above-targeted alternative investment income.
Book Value Per Share (BVPS), including Accumulated Other Comprehensive Income (AOCI), was $102.50, up 19%.
Returned $186 million of capital to shareholders, including $105 million in share repurchases.
Forward Guidance
Lincoln Financial Group expects mortality impacts to abate, capital markets to improve, sales pipelines to remain strong, and quarterly capital return to shareholders to be restored to pre-pandemic levels, all of which support continued momentum.
Positive Outlook
- Mortality impacts from the pandemic should decrease.
- Capital markets have improved.
- Sales pipelines are strong.
- Quarterly capital return to shareholders is being restored to pre-pandemic levels.
- Strategic actions taken to drive top and bottom line growth.
Challenges Ahead
- Continued uncertainty surrounding the length and severity of the COVID-19 pandemic impacts.
- Further deterioration in general economic and business conditions.
- Adverse global capital and credit market conditions.
- Legislative, regulatory or tax changes.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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