Lincoln National Corporation · NYSE:LNC
Lincoln National — Investor Day (June 2013)
82 slides from Lincoln National's investor day presentation, Jun 6, 2013
Slide 1: Lincoln Distribution: Driving Enterprise Strategy and Value
2013 Conference for Analysts, Investors and Bankers Thursday, June 6, 2013 Lincoln Distribution Driving Enterprise Strategy and Value Will Fuller President, Lincoln Financial Group Distribution
Slide 2: A "State of Shift": Secular Trends Shaping the Market
A “State of Shift” Driven by the Consumer Demographic Behavioral Economic Innovation Regulatory Secular Trends Shaping the Market Decumulation Risk Management Planning Guaranteed Outcomes Risk Tolerance Transaction Asset Management
Slide 3: Enabling LFG Strategy by Growing Advisors That Sell Our Products
Enabling LFG Strategy by Growing Advisors That Sell Our Products, On Our Terms 58,000 Advisors Selling Lincoln Products Industry Leading Distribution Wholesale 600 Sales Professionals Largest Wholesale Operation Retail 8300 Advisors #2 Independent Retail Operation 1 1 Source: Investment News Top Ind
Slide 4: Accelerated Growth in Attractive Markets Through Leading Distributors
Accelerated Growth in the Most Attractive Markets Through the Leading Distributors in the Industry Industry Strategic Partners* Product Share Rank Rank Share Variable Annuity 1 7.2% #5 #3 Fixed Annuity 2 4.2% #7 #5 Life Insurance 3 7.5% #1 #1 MoneyGuard 3 73.0% #1 #1 Strategic Partner Strategy Key E
Slide 5: The Value of our Strategic Partner Model
+48% The Value of our Strategic Partner Model RPS example New RPS Partners (2009-Present) $877 $400 • Established Strategic Partnerships • Established Advisor Relationships • Cross Promotion/Referrals • Attract Top Wholesaling Talent Small Market Sales (Millions)
Slide 6: LFN is Our #1 Strategic Partner and Competitive Advantage
LFN is Our #1 Strategic Partner and Competitive Advantage 14% 8% 32% 28% The Value of Our Own Strategic Partner LFN Rank in LFG Sales 2012 #1 in Life #1 in MoneyGuard #1 in Small Market RPS #2 in Annuities • #2 Independent Broker Dealer • Independent and Open Architecture • Most Successful Pivot Par
Slide 7: Proven Operating Model
Proven Operating Model We are Growing Advisors Selling Lincoln Products We are Driving Consistent Results Consolidated Deposits Consistency • 28 consecutive quarters with $4B+ in Deposits • 16 consecutive quarters with $1.3B+ of Net Flows VA FA RPS Life $18.9 $20.2 $21.0 $22.2
Slide 8: Mobilizing Distribution Enables a Shift in Product Mix
Mobilizing Distribution Enables a Shift in Product Mix 100% 78% 22% 65% 71% 29% 35% Product Pivot Strategy 1 Source: MARC/VARDS 2 Source: LIMRA U.S. Individual Life Insurance Sales (Excludes Whole Life, includes MoneyGuard) 3 Excludes MoneyGuard Variable Annuity Life VA Market Share and Rankings 1 L
Slide 9: Lincoln is Well Positioned for the Shift Towards Planning, Risk Management and Guarantees
Lincoln is Well Positioned for the Shift Towards Planning, Risk Management and Guarantees Why We’ll Win • Leading Wholesale and Retail Franchises • Leading Industry Partners • Actively Growing Advisors • Demographics in Our Favor • Singular Focus on Enabling LFG Product Strategy
Slide 10: Life Insurance: Protecting Margins and Leveraging Franchise
2013 Conference for Analysts, Investors and Bankers Thursday, June 6, 2013 Life Insurance Protecting Margins and Leveraging Franchise Mark Konen President, Insurance & Retirement Solutions
Slide 11: Lincoln and the Life Insurance Industry Today
Headwinds Franchise Strength Life insurance remains an important solution • Alignment of distribution breadth with diverse and innovative product portfolio • Product responsiveness • Risk management track record • Continued low interest rates • Regulatory changes • Economic uncertainty Lincoln and t
Slide 12: Decisive Actions in a Changing Environment
Eee Decisive Actions in a Changing Environment 30 Year Treasury & Pricing Actions Significant Product Changes GUL VUL i MoneyGuard ue term 5.00% Diversification Increased focus on Term ° Expansion of MonevGuard franchise o *VUL product Lincoln You're In Charge ©2018 Lincoln National Corporation Fina
Slide 13: Pivot Strategy Success
27% 42% 3% 20% 8% 29% 25% 7% 29% 10% Pivot sales 31% of total 2011, 46% of total 2012, 51% of total 1Q 2013 2011 Total Sales: $700M Sales by Product 2012 Total Sales: $588M Pivot Products Protect Products IUL VUL Term MoneyGuard UL/GUL Pivot Strategy Success
Slide 14: Leading the Industry through Change
Lincoln Industry 1 Rank 1 (vs. last year) VUL 20% 2% 2(+2) Term 11% 0% 9(+2) IUL 96% 37% 12(+2) GUL -53% 0% 5(-4) Life - LTC Combo -9% 2% 1(+0) Total (non-W.L.) -16% 6% 1(+0) 2011-2012 Year-over-Year Sales Growth Leading the Industry through Change • Increased IUL, VUL and Term share 1 Industry data
Slide 15: New Business Returns
Interest Rate Assumption Current Protect/Pivot Hypothetical No Protect/Pivot Forward Curve 10-12% 7-9% Prolonged Low 8-10% 5-7% Strategic actions result in strong new business returns even in stressed interest rate scenarios New Business Returns
Slide 16: Effectively Managing Interest Spread
Yield and spread history 1 Effectively Managing Interest Spread 1 Yields and spreads exclude alternative investments • Previous actions – Credited rates – Investment strategies • New business pricing not reliant on investment portfolio yield • In-force profitability not eroded by new sales
Slide 17: Key Assumptions Aligned with Experience
Mortality 2009 2010 2011 2012 Actual to benchmark mortality ratios 75% 79% 79% 78% Lapses (% of Face Amt) 2009 2010 2011 2012 GUL 4.0% 4.3% 3.6% 3.2% Key Assumptions Aligned with Experience • GUL pricing averages 2% • Actual experience validates our conservative pricing • Stable mortality experience
Slide 18: In-Force GUL Profitability Weathers Challenges
12% 10% -2% +1% Pricing Target Investment Yield Other Experience Factors -1% Cost of Capital Solutions Adjusted Returns GUL IRR WALK In-Force GUL Profitability Weathers Challenges • 18% of total Life business • Dedicated investment portfolio • 60-70% of product cash flows already invested
Slide 19: The Power of Lincoln's Franchise
Leading the market on our terms Protecting Margins with Disciplined Management – Pricing and management actions While Growing the Business – Expanded reach with comprehensive, innovative suite of products The Power of Lincoln’s Franchise
Slide 20: Group Protection: Investing for Growth
2013 Conference for Analysts, Investors and Bankers Thursday, June 6, 2013 Group Protection Investing for Growth Mark Konen President, Insurance & Retirement Solutions
Slide 21: Investing in the Business — Growing Profitability
Investing in the Business — Growing Profitability Profitability ¢ Price increase on new sales and renewals Investments e Expanded sales force and solution suite — results since 2010: — 14% average increase in sales ¢ Voluntary sales — 8% annual growth in earned premium ¢ Management actions on claims
Slide 22: Targeting Growing Market Segments
Total Group Voluntary Products Small and Medium Businesses (<1,000 employees) Targeting Growing Market Segments • Top 10 carrier in most product offerings • Ranked #10 in 2012 • 2012 case count rank: 4% 7% 9% Market Growth Expectations – Life: #4 – LTD: #2 – STD: #4 Lincoln’s Strategic Focus:
Slide 23: Accelerating Sales Growth through Distribution
14% average increase in sales since 2010 Future sales growth drivers • Sales force growth • Industry leading productivity • Voluntary capabilities • Deepen broker penetration Accelerating Sales Growth through Distribution 1 In millions
Slide 24: Investing $150M Across the Value Chain
Impact Employee Group Solutions Market & Sales Education/ Enrollment Onboard Billing & Service Claims Management Economic Impact Investments represent 2% of premium Drive outsized revenue growth Improved margins over time Investing $150M Across the Value Chain
Slide 25: Non Medical Loss Ratios
• 2012: increase in LTD severity • 1Q13: elevated group life mortality Drivers Non Medical Loss Ratios
Slide 26: Actions to Decrease Loss Ratio and Improve Margins
Price increase on new sales and Decrease Loss Ratio renewals + Increases the premium rate Claims Management Decrease Loss Ratio * Resources and expertise aligned with more effective processes Expense Management Decrease Expense Ratio * Efficiency gains over time from technology investments Voluntary
Slide 27: Profitable Growth while Transforming the Business
Expected Results • Long term 12-15% ROE • Top 3 in Disability/Life market • Top 5 in Voluntary sales Profitable Growth while Transforming the Business
Slide 28: Retirement Plan Services: Strategy Fueling Success
2013 Conference for Analysts, Investors and Bankers Thursday, June 6, 2013 Retirement Plan Services Strategy Fueling Success Chuck Cornelio President, Retirement Plan Services
Slide 29: The Retirement Industry Today
Headwinds Tailwinds The Retirement Industry Today • Participants view defined contribution plan as largest and primary retirement asset • Government market switching from defined benefit to defined contribution • Communication and education services becoming differentiator • Continued low interest r
Slide 30: Retirement Plan Services Snapshot
2011 à Refocused strategy and began investing for growth 2012 à Expanded distribution and initiated platform change 2013 & beyond à Realizing benefits of investments; eg. sales pipeline up 100% 1 LIMRA not-for-profit survey as of Mar 31, 2013 2 As of Mar 31, 2013 3 Full year 2012 deposits Snapshot •
Slide 31: Executing Strategy
Executing Strategy Targeting Growing Market Segments Market Positioning and Strategies Market Growth Expectations 1 Plan Sponsor Survey 2012 2 LIMRA not-for-profit survey as of Mar 31, 2013 3 Investments Company Institute, Cerulli, McKinsey Retirement Practice 4 McKinsey & Company: DC Model 4.6% 3 6
Slide 32: Driving Growth through Value Added Services
Driving Growth through Value Added Services More Than Just a Record Keeper
Slide 33: Investments in Our Business Paying Dividends
Plan Sponsor Term Rate 2 9.9% 5.9% 5.6% Organic Growth Rate 1 -0.82% 1.30% 2.52% End of Period AUM (Billions) $39 $39 $44 1 Net flows / beginning of period AUM 2 Plan sponsor terminations / average small and mid-large market AUM Investments in Our Business Paying Dividends Significant Growth in Lead
Slide 34: Proactively Managing the Bottom Line
Spread Compression Earned Rate 1 Crediting Rate 2010 5.70% 3.49% 2011 5.53% 3.32% 2012 5.21% 3.20% Pressures Actions Investments in the Business Total G&A 2 Strategic Spend $242M $19M $274M $29M $314M $35M Proactively Managing the Bottom Line 1 Excludes alternative investments and loan prepayment an
Slide 35: Commitment to Meaningful Growth
Enhancing Top Line • Building out enhanced capabilities to grow within our target markets • Focus on retirement income through product innovation • Deliver our high-touch model effectively Focusing on Bottom Line • Ensure technology upgrade efficiencies are realized • Reducing unit costs • Proactive
Slide 36: General Account Investments
2013 Conference for Analysts, Investors and Bankers Thursday, June 6, 2013 General Account Investments Ellen Cooper EVP, Chief Investment Officer
Slide 37: General Account Investment Management
Tailwinds Headwinds Navigating through low yield environment via prudent use of tactical investment strategies General Account Investment Management • Continued low rate environment • Competition for limited supply of quality credit assets • Well diversified, high quality portfolio with significant
Slide 38: Our Differentiated Investment Process
Lincoln’s Internal Investment Team Performance Cost Intellectual Capital Customization Multi-manager platform combines best-in-class core and specialty asset managers Our Differentiated Investment Process…… External Internal • Middle Market Loans • Private Equity • Hedge Funds • Real Estate Mezzanin
Slide 39: High Quality Portfolio
High Quality Portfolio Total Investment Portfolio As of 192013 Municipals 4.1% ency RMBS 48% Other Structured © Avg. Rating?: A- ¢ Further diversified Mortgage Loans 8.0% by sector, geography, and issuer Corporates 71.2% Collateral Alts 3.1% Other 1.0% 1.1% Total Assets: $88.4B 1_Fixed Maturity Rate
Slide 40: Below Investment Grade Reduced
Below Investment Grade (BIG) reduced by “4% Securities Below Investment Grade? as % of Total Fixed Maturity Securities” 2Q2009- 1Q 2013 10,2013 12% 10% 8% 6% 4% 2% MENAIC 1 (AAA/AA/A) NAIC 2(BB8) 0% NAIC 3-6 (BIG) 2Q09 4Q09 «4010 «4Q11 «4qiz—1q13 Capacity to take ri 1. Based upon the rating designat
Slide 41: Risk Capacity Further Supported by Net Unrealized Gains vs. Peers
Risk capacity further supported by… Net Unrealized Gains 1 vs. Peers 2 1 AFS and HTM fixed income unrealized gain as % of amortized cost 2 Source: SNL
Slide 42: Finding Incremental Value in Select Asset Classes
Direct Middle Market Loans Alternative Investments Disciplined and balanced approach to earn attractive risk-adjusted returns We are finding incremental value in… Private Placements Commercial Mortgage Loans Enhanced yield and better covenants compared to public bonds. Multiple sourcing through dire
Slide 43: Alternatives Have Produced Strong Results
2011 2012 1Q13 11.3% 14.9% 2.7% $90mm $125mm $6mm Planned increase to program well within our risk appetite Alternatives have produced strong returns historically albeit variable Alternatives have produced strong results… 70%/30% allocation split between Private Equity and Hedge Funds Annualized Pre
Slide 44: Projecting New Money Yields Conservatively
Core New Money Yield 10y UST Projecting new money yields conservatively… Projected New Money Yield (~$10B Annually) Forecasted Actual Enhanced New Money Yield
Slide 45: Projected Portfolio Yield Expected to Hold Up Well
Book Yield on Invested Assets w/o New Money Book Yield on Invested Assets w/ New Money Portfolio book yield expected to drop only 15-20 bps per year for next 3 years We expect our projected portfolio yield to hold up well…. Forecasted Actual Total Portfolio Book Yield (~$85B)
Slide 46: General Account Investment Management
General Account Investment Management • Differentiated investment process • Capacity to take risk now • Finding value in select core and yield-enhancing strategies • Portfolio yield expected to hold up well in low rate environment
Slide 47: Annuities: Growth on Our Terms
2013 Conference for Analysts, Investors and Bankers Thursday, June 6, 2013 Mark Konen Randy Freitag President, Insurance and Executive Vice President and Retirement Solutions Chief Financial Officer Annuities Growth on Our Terms
Slide 48: Growth on Our Terms — Lincoln's Consistent Approach
Growth on Our Terms — Lincoln’s Consistent Approach Sustainable Product Solutions Quality Block of Business Disciplined Risk Management Best-in-Class Distribution You're In Charge ©2013 Lincoln National Corporation
Slide 49: Fixed Annuities and Risk-Managed Funds
• Fixed annuities are a significant portion of operating income • Product mix meets shifting consumer demands • Risk-managed funds drive over 75% of VA deposits 1 GLB = Guaranteed Living Benefit (rider)
Slide 50: Strong Returns Supported by Strong Capital
ROE 1 ROA As reported 21% 64 bps Including VA non-operating income items 2 19% 59 bps Strong returns supported by strong capital 1 Equity excluding accumulated other comprehensive income and goodwill 2 VA hedge program performance, prospective unlocking, and non-performance risk • 2012 Average GAAP
Slide 51: VA Riders Evolve as the Market Changes
Lincoln Lifetime Income Advantage (June 2010) Lincoln Lifetime Income Advantage 2.0 with Risk-Managed Funds (June 2013) Rider Fee and Basis 0.90% (single & joint) on decreasing guaranteed amount 1.05% (single) / 1.25% (joint) on non-decreasing guaranteed amount Lifetime Withdrawal Rate (single) 59.5
Slide 52: VA Riders Less Risky Than Most Peers'
VA riders less risky than most peers’ • Our focus on upside potential = less emphasis on downside guarantees • Best-in-class distribution enables focus on strong consumer value, not “best” features Source: Oliver Wyman 1 Minimum guaranteed income level reflects the guaranteed payout rate, roll-up ra
Slide 53: Oliver Wyman: VA Riders More Profitable Than Peers'
Oliver Wyman: VA riders more profitable than peers’ • Value of new business consistently above average compared to peer group • Indicates disciplined risk management in product design • Enables our consistent market presence Source: Oliver Wyman 1 Based on market-consistent valuation of one or more
Slide 54: Diversification Benefit from Dollar Cost Averaging
• Diversification benefit from "dollar cost averaging" improves long-term ROE – Selling through market cycles mitigates amount written at market highs 1 Companies listed in order of 4Q12 VA sales; black squares represent average quarterly sales over the five-year period
Slide 55: Net Amount at Risk for VA Guarantees is Low
Net Amount at Risk (NAR) for VA guarantees is low • Consistent presence, diversifying risk over time, makes a difference • High quality GMDB block = low risk – 73% of GMDB account value is return of premium – Rollup GMDB, not sold since 2003, is less than 0.2% of account value • Less risky GLB block
Slide 56: Growth on Our Terms — Lincoln's Consistent Approach
Growth on Our Terms — Lincoln’s Consistent Approach Sustainable Product Solutions Quality Block of Business Disciplined Risk Management Best-in-Class Distribution You're In Charge ©2013 Lincoln National Corporation
Slide 57: VA Rider Cash Flow Analysis - Moderate Scenario
Present Value at 4% ($B) Rider Fees $ ( 4.7 ) Rider Claims (2.3) Rider Fees - Rider Claims $ ( 2.4 ) Base Contract Flows 1 ( 3.8 ) Total after Base Contract Flows $ ( 6.2 ) Current Value of Hedge Assets $ ( 1.2 ) Future rider fees far exceed future claims VA rider cash flow analysis - moderate scena
Slide 58: VA Rider Cash Flow Analysis - Adverse Scenario
Present Value at 4% ($B) Rider Fees $ ( 4.8 ) Rider Claims (6.1) Rider Fees - Rider Claims $ (1.3) Base Contract Flows 2 ( 2.9 ) Total after Base Contract Flows $ ( 1.6 ) Hedge Assets after Drop in Equities $ 4.4 ) Total remains positive with base contract flows VA rider cash flow analysis - adverse
Slide 59: Industry-Leading Hedging Program Covers Liabilities
Industry-leading hedging program covers liabilities • Hedge assets exceed economic and statutory reserves every quarter • Excellent hedging program per S&P and Moody’s • Risk-managed funds complement hedging program and reduce hedge costs
Slide 60: Redefining Best Practices for Modeling Policyholder Behavior
Lincoln is redefining industry best practices for modeling policyholder behavior Lincoln has the right approach to policyholder behavior VA LAPSES • Predictive Modeling based on experience since 2003 • Multiple Variable Interaction – In-the-moneyness – Policy size – Attained age – Gender – Tax statu
Slide 61: Lapse Assumption Reflects Experience
• Expected lapse rates fall quickly when the guarantee is at the money • Minimum lapse rate assumption of 1% Lapse assumption reflects experience Average Expected Lapse Rates: B-Share Class with GLB Rider 1 Data shown for products with a surrender charge (B-Share, L-Share, and N-Share (Bonus) Classe
Slide 62: Robust Assumptions Lead to Small Impacts on Large Sensitivities
Robust current assumptions lead to small impacts on large sensitivities Manageable policyholder behavior risk • Sensitivities covered by $0.8B excess of hedge assets over rider liabilities • Reduction in lapses produces operating income offset 1 Increase in Hedge Target in $ millions, pre-DAC, pre-t
Slide 63: Annuities - A Quality Block of Business
Annuities - A Quality Block of Business þ Sustainable Product Solutions • Risk-managed funds - good for consumer, good for Lincoln • No rollup GMDB sold since 2003; GLB annual rollup never above 5% þ Best-in-Class Distribution • Experienced wholesalers “selling” consistent story, driving necessary c
Slide 64: Financial Overview
2013 Conference for Analysts, Investors and Bankers Thursday, June 6, 2013 Financial Overview Randy Freitag Executive Vice President and Chief Financial Officer
Slide 65: What Have We Heard from Investors
What Have We Heard from Investors… • Variable Annuities • Earnings Mix • Low Interest Rates • Capital
Slide 66: Diversified Earnings Mix
11% 32% 42% 25% 5% Diversified Earnings Mix 1 2012 Income from Operations excluding Other Operations By Line 1 By Source 1 VA FA RPS Group Life Investment Spread Mortality/Morbidity RPS Fee Based VA/VUL Base Contract VA Riders • Earnings of $1.3B - back to pre-crisis levels • Variable Annuities – No
Slide 67: ALM Matters: Consistent Value Across Interest Rate Levels
ALM Matters: Consistent Value Across Interest Rate Levels • Value protected by ALM – Duration of assets: 7.4 – Duration of liabilities: 7.6 • Key ALM supported decisions – Treasury locks – Interest rate caps • $8.7B unrealized gain reflects liability “mark-to-market” • ALM program key to supporting
Slide 68: Strong Statutory Reserve Adequacy
Reserve Adequacy Testing Results 1 (Billions) Base Case 2.0% Scenario 2 1.5% Scenario 2 2010 $8 $6 N/A 2012 $8 $6 $4 Significant statutory reserve adequacy in low rate environment Strong Statutory Reserve Adequacy Statutory Reserves • Prescribed conservative assumptions that are generally fixed at i
Slide 69: Reasonable GAAP Model Assumptions
Reasonable GAAP Model Assumptions 2012 Life “J” Curve 2012 WI 21S 2018 2020 20% 2M 226 2028 2030 20R —— LT Earned Rate —— Forward Curve —— Portfolio Yield Interest Rates * Long-Term Investment Rate Assumption — Life:5.75% — Annuity/Retirement:5.25% — 75 bps between forward curve and LT earned rate *
Slide 70: Captive Structures With a Focus on ALM
ST LOC LT Financing Captive Structures With a Focus on ALM Life Reserve Financings • Reserve financing shift from reliance on short- term credit facility to long-term funded solutions – 2009: 70% funded by short-term credit facility – 2012: 100% long-term structures • Annual financing activity linke
Slide 71: A Strong Statutory Story
5-year Average • Statutory as % of GAAP – Excluding net relief: 60% – Including net relief: 83% • Reserve Financing Driven by Sales of GUL/Term – As sales fall, statutory earnings increase • Dividends to Holding Co. ~75% of Statutory Earnings and net relief – Balance funds growth in business 1 GAAP
Slide 72: Strong Statutory Capital and Free Cash Flow
$2.2 $0.6 $1.4 $7.1 $1.6 $7.5 Strong Statutory Capital and Free Cash Flow Free Cash Flow since 12/31/10 $0.2 Hold Co. Cash inflows Shareholder dividends Debt Expense Free Cash Flow • Strong Capital generation driven by earnings and capital relief • $0.4B increase in capital from 12/31/10 • ~480% RBC
Slide 73: Confidence in the Future
Confidence in the Future • Earnings mix: – Investing to grow Group Protection and RPS contributions – VA hedge program covers guarantee risk – Equity-linked components can offset negative impact of low interest rates • Well positioned to withstand low interest rate environment – Both Statutory and G
Slide 74: Appendix
2013 Conference for Analysts, Investors and Bankers Thursday, June 6, 2013 Appendix
Slide 75: 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"). A forwar
Slide 76: Forward Looking Statements — Cautionary Language (Con't)
Forward Looking Statements — Cautionary Language (Con’t) • 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 t
Slide 77: Explanatory Note on Use of Non-GAAP Measures
Explanatory Note on Use of Non-GAAP Measures Management believes that income from operations, return on equity and operating revenues better explain the results of the company's ongoing businesses in a manner that allows for a better understanding of the underlying trends in the company's current bu
Slide 78: Definition of Income From Operations, ROE and Book Value
Definition of Income (Loss) From Operations, ROE and Book Value (excluding AOCI) Income (loss) from operations, operating revenues and return on equity (“ROE”), as used in this presentation, are non-GAAP financial measures and do not replace GAAP revenues, net income (loss) and ROE. We exclude the a
Slide 79: Definition of Income From Operations, ROE and Book Value
Definition of Income (Loss) From Operations, ROE and Book Value (excluding AOCI) Book value per share excluding AOCI is calculated based upon a non-GAAP financial measure. It is calculated by dividing (a) stockholders' equity excluding AOCI by (b) common shares outstanding, assuming conversion of Se
Slide 80: Reconciliation of Net Income to Income from Operations
Reconciliation of Net Income to Income from Operations
Slide 81: Reconciliation of Book Value Per Share and Return on Equity
As of March 31, As of December 31, 2013 2012 2012 2011 Book value per share, including AOCI $55.33 $45.94 $55.14 $44.94 Per share impact of AOCI 13.33 9.18 14.03 9.19 Book value per share, excluding AOCI 42.00 36.76 41.11 35.75 For the Three Months Ended For the Twelve Months Ended March 31, Decembe
Slide 82: Annuities Disclosures
Annuities Disclosures Oliver Wyman Disclosures: QUALIFICATIONS, ASSUMPTIONS & LIMITING CONDITIONS All opinions, advice and materials provided by Oliver Wyman that are included, reflected or summarized herein (the “Oliver Wyman Content”) are for the exclusive use of Oliver Wyman’s client, Lincoln Fin