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Sep 30, 2022
Lincoln National Q3 2022 Earnings Report
Lincoln Financial Group reported a net loss for Q3 2022, driven by unfavorable notable items and market conditions.
Key Takeaways
Lincoln Financial Group reported a net loss of $(2.6) billion for the third quarter of 2022, compared to a net income of $318 million in the third quarter of 2021. The adjusted loss from operations was $(1.7) billion, which included net unfavorable notable items of $2.0 billion related to the company's annual review of DAC and reserve assumptions.
Net loss per share was $(15.17), including a $(634) million goodwill impairment charge.
Adjusted operating loss per share was $(10.23), impacted by unfavorable notable items and pandemic-related claims.
Annuities net flows were $319 million, a significant improvement from the prior year.
Retirement Plan Services total deposits increased by 16% to $2.8 billion.
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
The significant charge recorded during the third quarter and the statutory capital impact to be booked at the end of 2022 resulted from the annual assumption review primarily due to policyholder lapsation behavior in the guaranteed universal life insurance block and will contribute to a decline in the RBC ratio.
Positive Outlook
- Company is focused on clear actions to improve distributable earnings.
- Company is focused on clear actions to reduce capital volatility.
- Company is focused on clear actions to further diversify business mix.
- Company continues to see solid performance across all businesses with product strategies.
- Company is confident it has ample capital to effectively operate the business as it replenishes statutory capital back to the targeted level.
Challenges Ahead
- Net loss per share of $(15.17).
- Net loss per share included a $(634) million goodwill impairment charge, or $(3.73) per share
- Adjusted operating loss per share of $(10.23).
- Adjusted operating results included net unfavorable notable items of $(2.0) billion, or $(11.62) per share.
- Adjusted operating loss per share also included $(0.83) from elevated pandemic-related claims experience and below-targeted alternative investment returns
Revenue & Expenses
Visualization of income flow from segment revenue to net income