Lincoln National Corporation · NYSE:LNC
Lincoln National — Q2 2025 Earnings Presentation
21 slides from Lincoln National's earnings presentation, Jul 31, 2025
Slide 1: Earnings Supplement Second Quarter 2025
Earnings Supplement Second Quarter 2025 July 31, 2025
Slide 2: Forward-Looking Statements – Cautionary Language
Forward-Looking Statements – Cautionary Language Certain statements made in this press release and in other written or oral statements made by Lincoln or on Lincoln’s behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forwa
Slide 3: 2Q25 Scorecard
2Q25 Scorecard Adjusted Estimated Leverage Operating Income1 RBC Ratio2 Ratio3 +32% YoY >420% -330bps YoY Diversified earnings mix Significant buffer Equity growth supported profitable growth above capital target drove improvement Group Protection Life Annuities Operating Margin Operating Income Sal
Slide 4: 2Q25 Key Messages
2Q25 Key Messages Diversified earnings sources contributed to sustained, profitable growth • Adjusted operating income1 increased 32% YoY, the 4th consecutive quarter of YoY growth. After- Per tax share • Group Protection record earnings up 33% YoY, and record margin was 12.5%, up 250 bps. $ in mill
Slide 5: 2Q25 Earnings Drivers
2Q25 Earnings Drivers $ in millions Annuities Group Protection Operating Income Primary Drivers Operating Income Primary Drivers $297 $173 $287 • Favorable equity markets $130 • Favorable life experience • Growth in spread-based • Favorable disability results earnings • Sustained growth in • Lower n
Slide 6: Annuities
Annuities Key Highlights Operating Income1 ($M) Sales ($B) • Operating income decreased 3% YoY, as outflows $300 $303 $297 $3.8 $4.0 drove a decline in traditional VA average account $290 $287 $3.7 $3.8 16% $3.4 23% balances2, partially offset by favorable equity 29% 11% 20% 34% markets. 11% 14% 14%
Slide 7: Group Protection
Group Protection Key Highlights Operating Income1 ($M) Sales ($M) • Record operating income up 33%, record margin up $173 $467 250 bps YOY, driven by life experience and favorable $130 9% LTD results. $110 $107 37% $101 • Excluding the annual experience refund, earnings were up 48% and the margin in
Slide 8: Retirement Plan Services
Retirement Plan Services Key Highlights Operating Income ($M) First-year Sales ($B) • Operating income decreased by 8% YoY, primarily $44 $1.7 $43 due to stable value outflows, partially offset by $40 11% $37 $1.3 $34 $1.2 favorable equity markets. 20% $1.1 $0.8 62% 25% 42% • First year sales grew a
Slide 9: Life Insurance
Life Insurance Key Highlights Operating Income (Loss)1 ($M) Sales ($M) 19% $32 • Operating income improved by $67 million, driven 8% 13% 14% $122 $119 $121 15% $105 15% by higher alternative investment income and $1419% 13% 20% 20% 9% $3214% 9% $97 28% favorable mortality. 8% $6 17% $4 $8 $7 $(1) 18
Slide 10: Other Operations
Other Operations Key Highlights Operating Loss and Preferred Dividend ($M) Interest Expense ($M) $86 $86 • Operating loss was $91 million, down 6% YoY due $83 to lower interest and net G&A expenses. ($84) $80 $81 ($97) ($95) ($95) ($91) • Interest expense decreased $5 million YoY, ($11) reflecting l
Slide 11: Investment Portfolio
Investment Portfolio Key Highlights Investment Portfolio ($B) Rated Assets Portfolio Quality • Well-diversified portfolio with 97% investment 3% 3% 3% 3% 3% grade rated assets. $119 $118 $119 $119 $122 10% 9% 9% 8% 9% 35% 35% 35% 35% 34% 3% 3% 3% 3% 3% • Achieved a 6.1% new money yield; ~150bps abov
Slide 12: Appendix
Appendix ———
Slide 13: Investment Portfolio $122B
Investment Portfolio High quality and well-diversified portfolio1 Portfolio allocation by asset class Energy RMLs Industrial Other 2% Municipal 4% 2% 2% Communications 2% The portfolio is well-positioned Basic Industry 2% Transportation • Long-term investment strategy is tightly aligned with our lia
Slide 14: Non-GAAP Financial Measures Appendix
Non-GAAP Financial Measures Appendix 14
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Financial Measures Non-GAAP financial measures do not replace the most directly comparable GAAP measures. Reconciliations of the following non-GAAP financial measures to the most directly comparable GAAP financial measures or calculations of such measures, as app
Slide 16: Non-GAAP Financial Measures, Cont'd
Non-GAAP Financial Measures, Cont’d Management believes that the use of the non-GAAP financial measures adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders (or adjusted operating income) and adjusted income (loss) from operations per dilute
Slide 17: Reconciliation of Net Income to Adjusted Income from Operations
Reconciliation of Net Income (Loss) Available to Common Stockholders to Adjusted Income (Loss) from Operations Available to Common Stockholders Unaudited (millions of dollars, except per share data) For the Three Months Ended 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 Net Income Net income (loss) avai
Slide 18: Reconciliation of Net Income to Adjusted Income from Operations (continued)
Reconciliation of Net Income (Loss) Available to Common Stockholders to Adjusted Income (Loss) from Operations Available to Common Stockholders (continued from previous slide) Unaudited (millions of dollars) (1) Includes changes in MRBs of $126 million, $(666) million, $1,282 million, $(1,302) milli
Slide 19: Reconciliation of Adjusted Income excluding Significant Items
Reconciliation of Adjusted Income (Loss) from Operations Available to Common Stockholders to Adjusted Income (Loss) from Operations Available to Common Stockholders, excluding Significant Items Unaudited (millions of dollars) For the Three Months Ended 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 Adjust
Slide 20: Leverage Ratio
Leverage Ratio Unaudited (millions of dollars) As of or For the Three Months Ended 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 Leverage Ratio Short-term debt $ 450 $ 300 $ 300 $ — $ — Long-term debt 5,716 5,897 5,856 5,868 5,767 Total debt 6,166 6,197 6,156 5,868 5,767 Preferred stock 986 986 986 986 9
Slide 21: Reconciliation of Stockholders' Equity to Adjusted Stockholders' Equity
Reconciliation of Stockholders’ Equity to Adjusted Stockholders’ Equity Unaudited (millions of dollars) As of or For the Three Months Ended 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 Stockholders’ Equity, End-of-Period Stockholders’ equity $ 7,949 $ 9,013 $ 8,269 $ 8,193 $ 9,548 Less: Preferred stock