Lincoln National Q2 2021 Earnings Report
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.
Lincoln National
Lincoln National
Lincoln National 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