Lincoln National Corporation, operating as Lincoln Financial, recently announced its financial metrics for the third quarter ending September 30, 2025. The company delivered impressive performance across its key business segments, attesting to its robust market strategies and operational execution.
Lincoln National Corp Earnings Summary
Despite some unfavorable market conditions, Lincoln National Corp reported noteworthy earnings for the quarter. Their financial results effectively underscore the momentum their strategic initiatives have gained over time.
- Net Income : The company's net income available to common stockholders stood at $411 million, translating to $2.12 per diluted share.
- Adjusted Operating Income : On an adjusted basis, the operating income was $397 million or $2.04 per diluted share.
The difference between net income and adjusted operating income arises mainly from non-economic impacts related to changes in market risk benefits and fair valuation of derivatives connected to the Fortitude Re reinsurance transaction.
Lincoln National Corp Financial Results
To help illustrate Lincoln's financial performance, here is a summary table of financial results, showing both quarterly and yearly changes:
| Financial Metric | Q3 2025 |
|---|---|
| Net Income Available to Shareholders ($M) | $411 |
| Earnings per Share (EPS) | $2.12 |
| Adjusted Operating Income ($M) | $397 |
| Adjusted EPS | $2.04 |
Note : Detailed comparisons to consensus estimates for these metrics were not provided within the report.
Revenue Breakdown by Segment
The following table outlines revenue performance across Lincoln's major business segments:
| Segment | Revenue ($M) | Operating Income ($M) | Year-Over-Year Change |
|---|---|---|---|
| Annuities | $4.5 billion | $318 | +6% |
| Life Insurance | $298 million | $54 | +$40 million |
| Group Protection | $1.4 billion | $110 | In line |
| Retirement Plan Services | $5.0 billion | $46 | +5% |
In-depth Analysis of Segment Performance
Annuities
The Annuities segment showed significant growth with operating income increasing 6% compared to the previous year, largely driven by favorable equity market conditions, a rise in spread income, and tax efficiency. Notably, annuities saw sales of $4.5 billion, a 32% surge year-over-year. This growth was primarily steered by spread-based products, which accounted for over 60% of total sales.
Life Insurance
Revenues from Life Insurance operations dramatically increased, with the segment reporting an operating income rise by $40 million from the same time last year. This notable perspective was propelled by stable mortality rates, higher investment returns, and reduced general and administrative expenses. The total sales for Life Insurance outshined the previous year's performance by 144%, reaching $298 million, largely due to a focus on risk-sharing products.
Group Protection
The Group Protection segment sustained its performance, maintaining operating income in line with the prior year at $110 million. Despite unfavorable long-term disability resolutions, overall premiums rose by 5% year-over-year, attributed to increased sales and robust persistency.
Retirement Plan Services
Highlighting an impressive 5% rise in operating income, this segment benefited from favorable equity markets, although partially offset by stable value outflows. The net inflows surged to $0.8 billion. The segment also experienced a 50% year-over-year growth in first-year sales, reaching $2.4 billion.
Key Developments and Operational Highlights
During the third quarter of 2025, Lincoln National Corporation experienced broad-based execution within all four of its business segments. Annuities, Life Insurance, Group Protection, and Retirement Plan Services all reported results that aligned with Lincoln's targeted strategies and mission to deliver long-term shareholder value.
Comments from Lincoln Financial Executives
Ellen Cooper, the Chairman, President, and CEO of Lincoln Financial, provided insight into the company's financial success. "This quarter's results underscore the broad-based momentum across Lincoln as we advance our strategic priorities," Cooper stated. Emphasizing the balanced performance across all business segments, she further highlighted the robust sales figures and strong account balance performances. Cooper reaffirmed Lincoln's commitment to maintaining capital flexibility and leveraging operational efficiencies for sustainable growth.
Dividends and Share Repurchases
While the reported document did not specify any changes to Lincoln Financial's dividend policy or share repurchase program, the company's strategic growth initiatives continue to focus on nurturing shareholder value through its capital management strategies.
Lincoln National Corp Stock Forecast
Financial fundamentals, coupled with solid business performance, provide a cautiously optimistic view for Lincoln National Corp's stock trajectory.
High Projections : With robust segment performance and strategic initiatives in place, stocks could potentially reach $80, driven by sustained profitability and capital management strategies.
Low Projections : In case of market downside pressures or unforeseen operational disruptions, stock prices could hover around $60.
Lincoln National Corp’s focus on maintaining capital flexibility and disciplined investments should ideally see it well-positioned for long-term growth, despite potential market volatilities. Attentive investors, keeping an eye on Lincoln’s performance and strategic endeavors, could be offered lucrative opportunities aligned with these insights.
