Lincoln National (LNC) Q3 2025 earnings summary

Executive summary

• Achieved fifth consecutive quarter of year-over-year growth in adjusted operating income, with Q3 2025 net income of $411 million ($2.12 per diluted share) and adjusted operating income of $397 million ($2.04 per share), reflecting strong execution and broad-based business momentum.

• Strategic focus on risk-adjusted return on capital, operational efficiency, and profitable growth is yielding measurable benefits, supported by robust sales and higher account balances across all segments.

• Transformation initiatives and disciplined capital and expense management are reshaping the company into a more agile, scalable, and growth-focused enterprise.

• The annual assumption review had a $50 million unfavorable impact on net income and a $2 million favorable impact on adjusted operating income.

• Completed a $825 million equity issuance to Bain Capital, representing 9.9% of outstanding shares, to support strategic priorities.

Financial highlights

• Q3 2025 net income available to common stockholders was $411 million, up from a net loss of $562 million in Q3 2024; adjusted operating income was $397 million, up from $358 million in Q3 2024.

• Revenues for Q3 2025 were $4.56 billion, up from $4.11 billion in Q3 2024; net investment income was $1.54 billion, up from $1.42 billion.

• Record annuity account balances of $174 billion, up 5% year-over-year.

• Book value per share, excluding AOCI, was $69.66, and adjusted book value per share was $74.23 at quarter-end.

• Stockholders' equity increased to $10.45 billion from $8.27 billion at year-end 2024.

Outlook and guidance

• Management remains focused on capital flexibility, profitability, and operational efficiencies to drive long-term shareholder value.

• Expect full-year Group Protection margin in the mid to upper 8% range, about 50 basis points higher year-over-year.

• Anticipate some normalization in disability loss ratios, but positive trends in supplemental health and repricing should offset margin pressures.

• Fourth quarter expenses expected to rise sequentially due to higher variable compensation and strategic investments, but full-year expenses to remain flat year-over-year.

• Management expects to deploy new capital toward growing spread-based earnings, portfolio management, and optimizing the legacy life portfolio.