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Jun 30, 2021
Lincoln National Q2 2021 Earnings Report
Lincoln National's Q2 2021 performance was marked by record adjusted income from operations, driven by positive underwriting results, equity market tailwinds, and solid investment performance.
Key Takeaways
Lincoln National Group reported a net income of $642 million for Q2 2021, a significant increase compared to the net loss of $(94) million in Q2 2020. Adjusted income from operations was $608 million, compared to $187 million in the prior year. The company's diversified business model benefited from positive underwriting results, equity market tailwinds, and solid investment performance.
Net income EPS was $3.34, and adjusted operating EPS was $3.17.
Adjusted operating EPS included a negative impact of $(0.22) from elevated pandemic-related claims and a positive impact of $0.59 from above-targeted alternative investment income.
Net income ROE, including AOCI, was 12.4%, and adjusted operating ROE, excluding AOCI, was 17.3%.
Book Value Per Share (BVPS), including AOCI, increased by 7% to $115.00, while BVPS, excluding AOCI, increased by 9% to $75.45.
Revenue by Segment
Forward Guidance
Lincoln Financial Group's management expressed confidence in their ability to deliver on long-term financial targets, citing sales momentum, expense management opportunities, balance sheet strength, and increased capital return.
Positive Outlook
- Sales momentum across various business segments
- Expense management opportunities
- Strong balance sheet
- Increased capital return to shareholders
- Diversified business model and various sources of earnings
Challenges Ahead
- Continuation of the COVID-19 pandemic
- Deterioration in general economic and business conditions
- Adverse global capital and credit market conditions
- Legislative, regulatory or tax changes
- Actions taken by reinsurers to raise rates on in-force business
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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