Lincoln National (LNC) Q4 2025 earnings summary

Executive summary

• Adjusted operating income rose 31% year-over-year in Q4 to $434 million ($2.21 per diluted share), with all business segments contributing to growth and a focus on capital efficiency and diversification.

• Life Insurance earnings improved by $92 million year-over-year, driven by better mortality and strong alternative investment income.

• Group Protection and Annuities led performance, with Group Protection earnings up 2% and annuity sales up 33% to $4.9 billion.

• Capital strength was maintained, with holding company liquidity at $655 million and leverage ratio improved to 25.1%.

• Full-year adjusted operating income reached $1.54 billion, with net income at $1.09 billion.

Financial highlights

• Q4 adjusted operating income available to common stockholders was $434 million ($2.21 per diluted share); full-year adjusted income from operations exceeded $1.5 billion, up 23% from 2024.

• Q4 net income available to common stockholders was $745 million ($3.80 per diluted share); full-year net income was $1.09 billion.

• Annuities operating income increased 3% year-over-year to $311 million; total annuity sales rose 33% to $4.9 billion.

• Group Protection operating income was $109 million (margin 7.9%); premiums up 8% year-over-year.

• Holding company available liquidity increased to $655 million at year-end, net of prefunding.

Outlook and guidance

• 2026 operating income mix expected to be more balanced: Group 24-25%, Annuities 58-60%, Retirement 8-9%, Life 8-9%.

• Continued focus on profitable growth, capital efficiency, and lower market sensitivity, especially in annuities.

• Free cash flow conversion ratio target of 45% for 2025, meeting original 2026 target a year early.

• Group Protection expected to sustain 8%+ margins and earnings growth through disciplined pricing and diversification.

• Remittances to the holding company projected to increase as capital levels and free cash flow grow, supporting higher future shareholder returns.