Lincoln National Corporation · NYSE:LNC
Lincoln National — Q1 2020 Earnings Presentation
8 slides from Lincoln National's earnings presentation, May 6, 2020
Slide 1: First Quarter 2020 Investment Portfolio Supplement
This document may not be accurate after its date, and LNC does not undertake to update or keep it accurate after such date. First Quarter 2020 Investment Portfolio Supplement May 6, 2020
Slide 2: Forward looking statements – cautionary language
Forward looking statements –cautionary language 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”). These for
Slide 3: Forward looking statements – cautionary language (contd.)
Forward looking statements –cautionary language (contd.) •A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries' products, in establishing related insurance reserves and in th
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 Modco investment portfolio has counterparty protections in place including investment guidelines, as well as additional support throu
Slide 5: Investment portfolio: Diversified and high-quality
Investment portfolio: Diversified and high-quality Diversified across asset classes, sectors and issuers Mortgage loans14% Consumernoncyclical12% Financials12% Utilities11% Structured8% Other ( 1 ) 7% Capital goods6% Energy5% Consumer cyclical4% Municipal4% Basic industry4% Communications4% Technolo
Slide 6: Since 1Q15: Repositioned the portfolio to prepare for next credit cycle
Since 1Q15: Repositioned the portfolio to prepare for next credit cycle New money allocation and de-risking actions reduced BBB-and BIG exposure BBB-as % of rated assets 1Q15 9.3% 1Q20 7.9% ( 1 ) BIG as % of rated assets 1Q15 5.3% 1Q20 4.3% Lowered energy exposure Reduced and shifted the mix to subs
Slide 7: Corporates: Key sectors in focus
Corporates: Key sectors in focus Energy: $6.0B Midstream43% Independent26% Integrated20% Oil field services 8% Refining, 3% •Reduced energy allocation by ~50% since 1Q15 •63% of energy holdings are in midstream or integrated •91% investment grade Consumer cyclical: $5.3B Retailer34% Auto21% Consumer
Slide 8: Other asset classes in focus
Other asset classes in focus Collateralized loan obligations (CLO): $3. 9B AAA70% AA27% A3% •High-quality portfolio–100% of CLO holdings are NAIC 1–A-Rated CLO holdings are 3% of total CLO portfolio or $ 135M Commercial mortgage loans (CML): $15.4B Apartment33% Office25% Industrial19% Retail17% Mixe