Lincoln National (LNC) investor relations material

Executive summary

• Achieved eighth consecutive quarter of adjusted operating income growth, up 3% year-over-year to $439 million ($2.24 per share), with net income rising to $1.33 billion ($6.72 per diluted share).

• Strategic actions included a $5.8 billion reinsurance transaction, prefunding for preferred stock repurchase, and a $500 million subordinated debt issuance, enhancing capital strength and flexibility.

• All business segments advanced their strategies, with notable strength in Life Insurance and Retirement Plan Services.

• Book value per share and holding company liquidity improved, supporting long-term value creation.

Financial highlights

• Second quarter adjusted operating income was $439 million, up from $427 million year-over-year; net income available to common stockholders was $1.33 billion, up from $688 million.

• Revenues for Q2 2026 were $4.54 billion, up from $4.04 billion; diluted EPS was $6.72, up from $3.80.

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

• Portfolio yield expanded to 4.73% and net investment income for Q2 2026 was $1.63 billion.

• Holding company available liquidity (net of prefunding) increased to $903 million.

Outlook and guidance

• Management expects continued favorable group life mortality, modest normalization in disability results, and additional earnings growth in annuities due to higher account balances.

• Full-year Group Protection margin expected within 8%-9% range; alternative investment returns expected to recover in Q3.

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

• Reinsurance transaction with Talcott Financial Group to cede $5.8 billion of guaranteed universal life reserves expected to close in Q4 2026.