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Dec 31, 2020
Lincoln National Q4 2020 Earnings Report
Lincoln National reported net income and adjusted operating EPS for Q4 2020.
Key Takeaways
Lincoln National Group reported a net income of $143 million for Q4 2020, a decrease compared to $431 million in Q4 2019. Adjusted income from operations was $346 million, also lower than the $482 million in the same quarter of the previous year. The results were impacted by elevated pandemic-related claims experience, offset partially by above-targeted alternative investment income. Despite these challenges, the company's underlying earnings power remained strong.
Net income for Q4 2020 was $143 million, or $0.74 per diluted share, compared to $431 million, or $2.15 per diluted share in Q4 2019.
Adjusted income from operations for Q4 2020 was $346 million, or $1.78 per diluted share, compared to $482 million, or $2.41 per diluted share in Q4 2019.
The company's results were impacted by elevated pandemic-related claims experience, which was partially offset by above-targeted alternative investment income.
Share repurchases were resumed, with $50 million completed during the quarter.
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
Lincoln Financial Group is optimistic about its ability to drive shareholder value through building sales, executing expense initiatives, accelerating digital capabilities, and continuing to return capital to shareholders.
Positive Outlook
- Ability to build sales over the year
- Execute on expense initiatives
- Accelerate digital capabilities
- Continue to return capital to shareholders
- Health and economic environment is showing signs of improvement
Challenges Ahead
- The continuation of the COVID-19 pandemic, or future outbreaks of COVID-19, and uncertainty surrounding the length and severity of future impacts on the global economy and on our business, results of operations and financial condition
- Further deterioration in general economic and business conditions that may affect account values, investment results, guaranteed benefit liabilities, premium levels and claims experience
- Adverse global capital and credit market conditions that may affect our ability to raise capital, if necessary, and may cause us to realize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition and ability to raise additional capital or refinance existing debt as it matures
- The inability of our subsidiaries to pay dividends to the holding company in sufficient amounts, which could harm the holding company’s ability to meet its obligations
- Legislative, regulatory or tax changes, both domestic and foreign, that affect: the cost of, or demand for, our subsidiaries' products; the required amount of reserves and/or surplus; our ability to conduct business and our captive reinsurance arrangements as well as restrictions on the payment of revenue sharing and 12b-1 distribution fees
Revenue & Expenses
Visualization of income flow from segment revenue to net income