Lincoln National Corporation · NYSE:LNC
Lincoln National — Q1 2024 Earnings Presentation
17 slides from Lincoln National's earnings presentation, May 2, 2024
Slide 1: First Quarter 2024 Earnings Supplement
©2024 Lincoln National Corporation May 2, 2024 First Quarter 2024 Earnings Supplement
Slide 2: Forward-looking statements
This slide has no elements that change color 2©2024 Lincoln National Corporation 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
Slide 3: 1Q 2024 Key messages
3©2024 Lincoln National Corporation 1Q 2024 Key messages 1 Represents Adjusted Operating Income Available to Common Stockholders. See Non-GAAP Financial Measures Appendix for definition and reconciliation. 2 Balance sheet true-up in preparation for the close of the sale of the wealth management busi
Slide 4: 1Q 2024 Metrics and Key Highlights
4©2024 Lincoln National Corporation $454 $457 $455 $458 $466 $500 $500 $300 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 $11 ($189 ) $14 ($164 ) $260 $343 $39 $246 $71 $249 $343 $228 $232 $235 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Adjusted Income from Operations Significant Items 1Q 2024 Metrics Key Priorities 1Q’24 Key H
Slide 5: Annuities
5©2024 Lincoln National Corporation 10% 10% 10% 7% 6% 15% 16% 17% 18% 19% 29% 29% 29% 30% 30% 46% 45% 44% 45% 45% 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Fixed RILA VA w/o GLBs VA w/ GLBs 42% 24% 28% 56% 34% 36% 44% 39% 23% 33% 8% 13% 13% 8% 14% 14% 19% 20% 13% 19% 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Fixed RILA VA
Slide 6: Life Insurance
6©2024 Lincoln National Corporation $134 $136 $138 $143 $130 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Life Insurance Key Priorities $(13) $33 $23 $(6) $(34) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 • Operating income was in line with expectations, reflecting a lower run-rate post the Fortitude Re reinsurance transaction
Slide 7: Group Protection
7©2024 Lincoln National Corporation 31% 38% 45% 51% 35% 40% 36% 31% 40% 33% 29% 26% 24% 9% 32% 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Disability Life Supp Health / Dental $128 80% 72% 81% 67% 76% 71% 71% 76% 83% 74% 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Life Disability Group Protection Sales ($M)Operating Income1 ($
Slide 8: Retirement Plan Services
8©2024 Lincoln National Corporation 27% 25% 26% 24% 22% 73% 75% 74% 76% 78% $93 $97 $94 $101 $107 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 47% 34% 61% 56% 34% 32% 31% 21% 23% 48%21% 35% 18% 21% 18% 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Sm. Market Mid-Large Market Stable Value/Other Retirement Plan Services $43 $47 $43
Slide 9: Other Operations
9©2024 Lincoln National Corporation $26 $26 $31 $26 $29 ($12) $8 ($1) $7 $13 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Other Deferred Compensation Other Operations $(87) $(106) $(105) $(105) $(103) $(25) $(11) $(34) $(11) $(34) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Operating Loss Preferred Dividend Operating Loss1 and
Slide 10: Investment Portfolio
10©2024 Lincoln National Corporation 4.9% 4.9% 5.3% 5.4% 5.0% 0.7% 0.9% 0.9% 1.0% 1.1% 5.6% 5.8% 6.2% 6.4% 6.1% 4.25% 4.29% 4.33% 4.37% 4.39% 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Yield Pick-up Average Market Yield New Money Yield Fixed Income Portfolio Yield $53 $80 $52 $58 $78 1.7% 2.5% 1.6% 1.7% 2.3% 1Q'
Slide 11: Appendix
11©2024 Lincoln National Corporation Appendix
Slide 12: Investment portfolio
12©2024 Lincoln National Corporation Investment portfolio High quality and well-diversified portfolio1 The portfolio is well-positioned • Long-term investment strategy is tightly aligned with our liability profile and positioned for various economic cycles – 97% investment grade, the portfolio is up
Slide 13: Commercial mortgage loan portfolio
13©2024 Lincoln National Corporation Commercial mortgage loan portfolio Conservatively positioned CML portfolio1 Overall CML exposure: • Disciplined portfolio construction delivering consistent loan performance – Virtually no credit losses since 2019 or current loan modifications • Robust surveillan
Slide 14: Non-GAAP Financial Measures Appendix
14©2024 Lincoln National Corporation Non-GAAP Financial Measures Appendix
Slide 15: Non-GAAP financial measures
15©2024 Lincoln National Corporation Non-GAAP financial measures Reconciliations of the following non-GAAP financial measures to the most directly comparable GAAP financial measures or calculations of such measures, as applicable, are presented herein beginning on slide 16. Adjusted income (loss) fr
Slide 16: Reconciliation to Adjusted Income from Operations Available to Common Stockholders
16©2024 Lincoln National Corporation Reconciliation of Net Income Available to Common Stockholders to Adjusted Income from Operations Available to Common Stockholders Unaudited (millions of dollars)
Slide 17: Adjusted Income from Operations excluding Significant Items
17©2024 Lincoln National Corporation Reconciliation of Adjusted Income from Operations Available to Common Stockholders to Adjusted Income from Operations Available to Common Stockholders, excluding Significant Items Unaudited (millions of dollars) For the Three Months Ended 3/31/2023 6/30/2023 9/30