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 adjusted operating income at $397 million ($2.04 per share), reflecting strong execution, diversified business mix, and robust sales across all segments.

• Net income available to common stockholders was $411 million ($2.12 per diluted share) for Q3 2025, rebounding from a net loss in the prior year, supported by higher fee and investment income and improved segment performance.

• Maintained capital strength with an estimated RBC ratio above 420% and leverage ratio improvement to 25.2%, aided by a $825 million equity issuance to Bain Capital.

• Continued investment in digital capabilities, product innovation, and distribution relationships to drive future growth and enhance customer experience.

Financial highlights

• Q3 2025 adjusted operating income available to common stockholders was $397 million ($2.04 per share), up 13% year-over-year, with net income at $411 million ($2.12 per diluted share).

• 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.

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

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

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

Outlook and guidance

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

• Full-year Group Protection margin expected in the mid to upper 8% range, with continued premium growth and some normalization in disability loss ratios.

• Expenses expected to rise sequentially in Q4 due to higher variable compensation and strategic investments, but full-year expenses to remain relatively flat year-over-year.

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

• Further details on capital deployment and share repurchases to be provided in the next quarter's outlook.