Lincoln National (LNC) investor relations material

Executive summary

• Achieved seventh consecutive quarter of year-over-year adjusted operating income growth, up 16% to $326 million ($1.66 per share), with strong segment results in Life Insurance, Group Protection, and Retirement Plan Services.

• Net loss available to common stockholders was $(211) million ($(1.10) per diluted share), primarily due to non-economic market risk benefit changes and significant non-operating items.

• Life Insurance earnings improved to $41 million from a $16 million loss YoY, driven by strong alternative investment income and captive consolidation; sales rose 33% to $129 million.

• Group Protection earnings increased 11% YoY to $112 million, with premiums up 2% and operating margin at 8%; record first quarter earnings reported.

• Annuities operating income was $275 million (down 5% YoY), impacted by NII allocation changes and tax items; sales rose 4% to $3.9 billion, with spread-based products comprising two-thirds of sales.

Financial highlights

• Adjusted operating income available to common stockholders was $326 million ($1.66 per diluted share), up from $280 million in the prior year.

• Net loss for Q1 2026 was $(211) million ($(1.10) per diluted share), mainly due to negative market risk benefits and non-operating items.

• Total revenues were $5.3 billion, up from $4.7 billion year-over-year.

• Book value per share (excluding AOCI) was $71.06; adjusted book value per share was $77.77 as of March 31, 2026.

• Holding company available liquidity increased to $805 million, net of prefunding.

Outlook and guidance

• Management expects continued growth in free cash flow and capital generation, with a focus on diversifying earnings mix and maximizing capital efficiency.

• Group Protection and Retirement Plan Services are anticipated to be increasingly meaningful contributors to higher quality earnings.

• Annuities expected to benefit from normalization of tax items and additional fee day in Q2; Retirement Plan Services expects elevated net outflows in Q2 due to plan terminations.

• Management remains focused on strengthening capital, optimizing operations, and supporting a resilient earnings profile.

• Alternative investment returns and segment results may show variability due to market volatility.