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Mar 31
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.
Lincoln National
Lincoln National
Lincoln National Revenue by Segment
Revenue by Segment
Annuities Revenue
CapyFin.comLife Insurance Revenue
CapyFin.comGroup Protection Revenue
CapyFin.comRetirement Plan Services Revenue
CapyFin.comOther Operations Revenue
CapyFin.com 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.
- Adverse global capital and credit market conditions that may affect ability to raise capital, cause impairments on investments and intangible assets, and reduce future earnings.
- Inability of subsidiaries to pay dividends to the holding company in sufficient amounts, which could harm the holding company's ability to meet its obligations.
- Legislative, regulatory or tax changes that affect product costs, demand, required reserves, business conduct, and affiliate reinsurance arrangements.
- Rapidly increasing or sustained high interest rates that may negatively affect profitability, investment portfolio value, capital position, and cause policyholders to surrender policies.