Lincoln National (LNC) investor relations material

Executive summary

• Achieved eighth consecutive quarter of year-over-year adjusted operating income growth, up 3% to $439 million ($2.24 per share), with net income of $1.3 billion ($6.72 per diluted share), driven by strong segment performance and strategic capital actions.

• Announced reinsurance agreement with Talcott to cede $5.8 billion of legacy Guaranteed Universal Life reserves, further shifting liability mix and enhancing free cash flow durability.

• Prefunded repurchase/redemption of $500 million of preferred stock callable next year, increasing capital flexibility.

• Year-over-year earnings growth was supported by strength across all business segments, notably Life Insurance and Retirement Plan Services.

• Holding company available liquidity (net of prefunding) increased to ~$900 million.

Financial highlights

• Adjusted operating income available to common stockholders was $439 million, up from $427 million year-over-year.

• Net income available to common stockholders was $1.3 billion, or $6.72 per diluted share, up from $688 million in the prior-year quarter.

• Revenues for the quarter were $4.54 billion, up from $4.04 billion year-over-year.

• Book value per share (excluding AOCI) increased to $77.39 from $67.95 year-over-year.

• Portfolio yield expanded to 4.73% for Q2 2026.

Outlook and guidance

• Management expects continued focus on shifting liability mix and growing sustainable free cash flow, highlighted by the reinsurance transaction with Talcott expected to close in Q4 2026.

• Full-year Group Protection margin expected within 8%-9% target range.

• Anticipate additional annuity earnings growth in Q3, supported by higher account balances and spread income.

• Alternative investment returns expected to recover and meet or exceed targets in Q3.

• Strategic priorities include diversifying earnings mix, expanding product sets, and optimizing capital allocation.