Lincoln National Corporation · NYSE:LNC
Lincoln National — Q2 2018 Earnings Presentation
10 slides from Lincoln National's earnings presentation, Aug 1, 2018
Slide 1: Second Quarter 2018 Earnings
©2018 Lincoln National CorporationChris Giovanni484-583-1793Christopher.Giovanni@LFG.comSECOND QUARTER 2018 EARNINGS This document is dated August 1, 2018,it may not be accurate after such date and LNC does notundertake to update or keep it accurate after such date.
Slide 2: Annuities Sales Momentum Accelerating
$8.2B$8.7B$11.9B$2.0B$6.0B$10.0B$14.0B201620172Q18 annualized$(1.6)B $(2.7)B $(0.5)B ..SalesNet flows51%26%23%VA w/ GLBVA w/o GLBFA50%20%30%ANNUITIES SALES MOMENTUM ACCELERATING4Q16 sales of $1.8B2Q18 sales of $3.0B28%of 2Q sales from new products and distributionForecasted industry growth5-10%1Sour
Slide 3: Liberty Integration Progressing Ahead of Expectations
69%31%Capital markets²Insurance risks³~65%~35%LIBERTY INTEGRATION PROGRESSING AHEAD OF EXPECTATIONSFuture201711 Exclude the impact of notable items. 2 Capital markets include fees on AUM and investment spread. 3 Insurance risks predominately include mortality / morbidity. •Earnings of $45M in 2Q18,
Slide 4: All-Weather Business Mix Results in Balanced Earnings
32%38%30%38%31%31%Fees on AUMInvestment spreadInsurance risks²ALL-WEATHER BUSINESS MIX RESULTS IN BALANCED EARNINGS201712013170%69%1 Excludes the impact of notable items. 2 Insurance risks predominately include mortality / morbidity.
Slide 5: All-Weather Business Mix Enables Consistent Growth
ALL-WEATHER BUSINESS MIX ENABLES CONSISTENT GROWTH Past5 years 3 years out1 Drivers Capital markets performance EPS growth Capital markets performance EPS growth Equity markets: Average S&P500 +13% 5% +3% ~1% Interestrates: Average 10-year 2.2% (3)% 3.0% ~1% Net benefitfrom capital markets 2% 2% = e
Slide 6: MoneyGuard Well Positioned and Driving Solid Results
MONEYGUARD®WELL POSITIONED AND DRIVING SOLID RESULTS•We know we will pay a benefit •Multi-benefit design reduces policyholder behavior risk•Capped benefits •80% of in-force sold since 2006•Priced to reflect reliable industry experience •Majority of claims related to deaths or acceleration of death b
Slide 7: Strong Capital Position Will Enable Active Deployment
STRONG CAPITAL POSITION WILL ENABLE ACTIVE DEPLOYMENT0%100%200%300%400%500%2Q18•40 % point impact from tax reform –20 % points less than original guidance•Implementation of C1 factor changes remains fluid–2019 at the earliest•Resumed buybacks in 2Q18–Repurchased $100M in 2Q18–Expect pace of buybacks
Slide 8: Appendix
APPENDIX
Slide 9: Forward-looking statements
Certain statements made in this presentation 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 forward-looking statement is a statementthat is not a h
Slide 10: Forward-looking statements risk factors
•Ineffectiveness of our risk management policies and procedures, including various hedging strategies used to offset the effect of changes in the value of liabilities due to changes in the level and volatility of the equity markets and interest rates; •A deviation in actual experience regarding futu