Lincoln National Corporation · NYSE:LNC
Lincoln National — Q1 2023 Earnings Presentation
13 slides from Lincoln National's earnings presentation, May 9, 2023
Slide 1: 1Q23 Investment Supplement
This document may not be accurate after its date, and LNC does not undertake to update or keep it accurate after such date.Al CopersinoHead of Investor Relations203-257-4493Albert.Copersino@LFG.com1Q23 Investment SupplementMay 9, 2023
Slide 2: Forward looking statements – cautionary language
Forward looking statements –cautionary languageCertain 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-
Slide 3: Forward looking statements – cautionary language (contd.)
Forward looking statements –cautionary language (contd.)•A decline or continued volatility in the equity markets causing a reduction in the sales of our subsidiaries’ products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; and an increase
Slide 4: Special note regarding data
Special note regarding data•All information regarding LNC’s investment portfolio excludes assets related to certain modified coinsurance (“Modco”) transactions. The Modcoinvestment portfolio has counterparty protections in place including investment guidelines, as well as additional support through
Slide 5: Portfolio overview
Portfolio overview
Slide 6: High-quality and well-diversified investment portfolio
High-quality and well-diversified investment portfolioThe portfolio is well-positionedfor the current environment•Long-term investment strategyistightlyaligned with our liabilityprofile andpositioned forvarious economiccycles–97%investment grade, theportfoliois at its highest qualityin the last deca
Slide 7: High-quality and well-performing fixed income portfolio
High-quality and well-performing fixed incomeportfolioThe portfolioisat its highest qualityinthe last decade•Thefixed incomeportfolioexperienced theseventhconsecutivequarterofpositivenet ratings migration•BBB rated exposure is“up in quality” with majority of exposurerated BBB+/BBBNAIC-2/CM2–~0.1% BB
Slide 8: Bank exposure is high-quality and well diversified by issuer and geography
Bank exposure is high-quality and well diversifiedby issuerand geography Well-positioned exposureto the banking sector•Banking makesup 5% of invested assetsand is70%senior in capital structure priority•98%ofexposureis investment gradewith averagerating ofA-•Geographically diversifiedin highly-rated
Slide 9: High-quality commercial mortgage loan portfolio
High-quality commercialmortgageloan portfolioConservatively positionedCMLportfolio•Disciplinedportfolioconstruction delivering consistentloan performance–Portfolio46%loan tovalueand 2.4x debt service coverage–Virtuallynocreditlosses since2019 or currentloan modifications•Middle marketinvestmentstrat
Slide 10: Office portfolio conservatively positioned with limited near-term maturities
Office portfolio conservatively positioned with limited near-term maturitiesStable performance from office portfolio•Office portfolio credit quality delivering stable loan performance•Position sizing provides diversified exposure across portfolio•Less than 1% of office portfolio or $21.5M is below 1
Slide 11: Other commercial real estate exposure is limited, high-quality and well-diversified
Othercommercial real estate exposure islimited,high-quality and well-diversifiedREITportfolio highlights1•Total exposureis $1.7B•Portfolio is diversifiedacrossgeographies, MSAs, and propertytypes•Averagerating is BBB+with anaverageposition size of$26M•Office REIT exposure is lessthan $240M orlesstha
Slide 12: Reinsurance transaction impacts
Reinsurance transaction impacts
Slide 13: Recently announced reinsurance transaction supports our strategic direction
Ourrecently announced reinsurancetransaction supportsourstrategic direction and maintains our portfolio credit qualityPost reinsurance transaction asset allocation1Ratings mix1•Reduces total investedassets by$28B •Portfoliowill shift in-linewithourinvestment strategy ofmaintaining ahigh-quality port