Lincoln National Q3 2021 Earnings Report
Key Takeaways
Lincoln National reported a net income of $318 million, or $1.68 per diluted share, for the third quarter of 2021, compared to $398 million, or $2.01 per diluted share, for the third quarter of 2020. Adjusted income from operations was $307 million, or $1.62 per diluted share, compared to an adjusted loss from operations of $(133) million, or $(0.72) per diluted share, in the third quarter of 2020. The current quarter’s adjusted operating results included net unfavorable notable items of $108 million, or $0.57 per share. The company completed $200 million in share repurchases and the board of directors approved raising the quarterly dividend on its common shares to $0.45 per share.
Net income EPS of $1.68 and adjusted operating EPS of $1.62
Adjusted operating EPS included $(1.05) from notable items, elevated pandemic-related claims experience and above targeted alternative investment income
BVPS, including AOCI, of $113.77, up 2%; BVPS, excluding AOCI, of $76.96, up 8%
$279 million of capital returned to shareholders, including $200 million in share repurchases
Lincoln National
Lincoln National
Lincoln National Revenue by Segment
Forward Guidance
The company has formally communicated its new expense savings initiative, the Spark Initiative, this quarter.
Positive Outlook
- Net recurring benefits of $50 million in 2021
- Net recurring benefits of $100 - $120 million in 2022
- Net recurring benefits of $170 - $190 million in 2023
- Net recurring benefits of $260 - $280 million in 2024
- Net impact of $260 - $300 million in 2025+
Challenges Ahead
- One-time investments of $75 million in 2021
- Net impact of $(25) million in 2021
- One-time investments of $145 - $165 million in 2022
- Net impact of $(25 - 65) million in 2022
- One-time investments of $90 - $110 million in 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income