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Mar 31, 2025
Lincoln National Q1 2025 Earnings Report
Lincoln National reported a decrease in net income but an increase in adjusted operating income for the first quarter of 2025.
Key Takeaways
Lincoln National Corporation reported a net loss of $722 million for the first quarter of 2025, or $(4.41) per diluted share. However, adjusted operating income available to common stockholders was $280 million, or $1.60 per diluted share, showing a 14% year-over-year increase. The company highlighted strong execution against strategic and financial objectives, including increased Group Protection earnings and significant Annuities sales.
Adjusted operating income increased 14% year-over-year.
Group Protection earnings were up 26% year-over-year, with operating margin improving by 120 basis points.
Annuities sales increased 33% year-over-year, driven by a diversified product mix.
Estimated RBC ratio remains in excess of targeted buffer, reinforcing capital strength.
Revenue by Segment
Forward Guidance
Lincoln Financial is focused on long-term value creation through foundational capital, optimized operating model, and profitable growth strategies. The company aims to strengthen its capital foundation, optimize its operating model, and shift to a more resilient and diversified business mix.
Positive Outlook
- Build and maintain capital required to ensure enterprise stability across market cycles and to support investment for profitable growth and reduce sensitivity to equity markets.
- Advance a scalable framework for managing the enterprise's resources and activities that maximizes cost efficiency, expands asset sourcing, and optimizes capital allocation.
- Strategic shift toward key products with more stable cash flows, focusing on maximizing returns while decreasing equity markets sensitivity.
- Reduce leverage ratio through continued growth in capital and opportunistic deleveraging.
- Continued focus on operational efficiency, including the conclusion of Spark initiative-related projects in 2025.
Challenges Ahead
- Weak general economic and business conditions that may affect demand for products, account balances, investment results, guaranteed benefit liabilities, premium levels and claims experience.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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