Earnings

Lincoln Financial Reports Third-Quarter Earnings of $6.77 a Share

The Tip Desk · November 5, 2026 · 3 min read

The insurer posted $1.3 billion of third-quarter net income available to common stockholders, or $6.77 a share, and resumed common-stock repurchases with $50 million.

Lincoln Financial (LNC) reported third-quarter net income available to common stockholders of $1.3 billion, or $6.77 a share, including a net unfavorable impact of $0.47 a share from the annual assumption review.

Adjusted operating income available to common stockholders was $339 million, or $1.72 a share, including a $0.48 a share net unfavorable annual assumption review. The company said the difference between net income and adjusted operating income was primarily attributable to the non-economic impact of changes in market risk benefits.

With improved financial flexibility, Lincoln resumed share repurchases with $50 million of common stock and retired $437 million of preferred stock through tender offers. Holding company available liquidity, net of prefunding amounts, was $1.0 billion at September 30, 2026, up approximately $350 million since year-end 2025. A reinsurance transaction with Talcott closed in October 2026, which the company described as one of the final milestones of the plan laid out in 2023.

Chairman, President and CEO Ellen Cooper said Life Insurance and Retirement Plan Services were highlights of the quarter, both delivering strong year-over-year earnings growth. She said Group Protection fell short of expectations as continued normalization of disability incidence was compounded by volatility in claims severity.

Annuities delivered operating income of $304 million excluding the annual assumption review, up 6% sequentially, driven by higher spread income and favorable equity markets. Reported income from operations was $294 million. Year-over-year earnings excluding the review moderated by $14 million, which the company attributed to a $12 million impact of a previously disclosed net investment income reallocation to non-operating income and variable annuity outflows. Total sales were $4.3 billion, up 21% sequentially, as fixed annuity sales more than doubled quarter over quarter. Spread-based products represented 67% of total sales. Net outflows were about $2.7 billion. Average account balances, net of reinsurance, were $181 billion. Return on average account balances improved for a second consecutive quarter, the company said.

Life Insurance delivered operating income of $130 million excluding the annual assumption review, a $76 million increase from the prior-year quarter, driven by higher alternative investment income, improved mortality, and the impact of the fourth-quarter 2025 captive consolidation. Reported income from operations was $105 million. Total sales were $106 million, down 64% year over year, as the prior-year quarter benefited from several large executive benefits cases; core life sales grew 3% year over year, driven by indexed-universal life. Average account balances, net of reinsurance, were $53 billion.

Group Protection delivered operating income of $77 million excluding the annual assumption review and a margin of 5.5%. Reported income from operations was $46 million. The company said lower year-over-year results reflected unfavorable disability experience, partially offset by favorable life results. The total loss ratio rose to 78.4% from 68.3% a year earlier. Disability experience reflected higher claim severity and continued moderation in incidence from favorable levels. Premiums increased 3% year over year, led by local markets growth of 5% and supplemental health growth of 32%.

Retirement Plan Services reported operating income of $55 million, up 20% year over year, driven by higher spread income, favorable equity markets, and a favorable one-time item. Net outflows were $1.9 billion, compared with $755 million of net inflows in the prior-year quarter. Total deposits were $3.5 billion, down 29%, driven by lower first-year sales in the mid-large market. Ending account balances were $128 billion.

Other Operations recorded a loss from operations of $127 million, including a $29 million unfavorable annual assumption review impact. Excluding that review, the loss was $98 million.

The company reported a net unrealized loss of $12.4 billion (pre-tax) on available-for-sale securities as of September 30, 2026, compared with $7.9 billion a year earlier, which it said was primarily due to higher treasury rates.

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