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Jun 30, 2022
Lincoln National Q2 2022 Earnings Report
Lincoln National reported net income of $238 million and adjusted operating income of $391 million.
Key Takeaways
Lincoln National Group reported a decrease in net income for Q2 2022, with $238 million compared to $642 million in Q2 2021. Despite equity market headwinds, underlying earnings were solid, with positive developments in Group Protection results and a significant decline in pandemic claims.
Net income EPS was $1.34, and adjusted operating EPS was $2.23.
Adjusted operating EPS included a negative impact of $0.42 primarily from pandemic-related claims experience and below-targeted alternative investment income.
Book Value Per Share (BVPS), including AOCI, was $53.97, down 53% primarily driven by higher interest rates.
Book Value Per Share (BVPS), excluding AOCI, was $79.49, up 5%.
Revenue by Segment
Forward Guidance
The company is focused on improving Group Protection results, reducing pandemic claims, progressing with the Spark expense initiative, and leveraging the rise in interest rates to support future earnings growth and new business returns.
Positive Outlook
- Improving Group Protection results
- Significant sequential decline in pandemic claims
- On-track progress from our Spark expense initiative
- Meaningful rise in interest rates year to date, supporting future earnings growth and new business returns
- Sales remain robust with new business generating at or above targeted returns
Challenges Ahead
- Equity market headwinds
- Annuities business decline in capital markets
- Unfavorable one-time items in Annuities business
- Less favorable returns within the company’s alternative investment portfolio
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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