Lincoln National Stock Earnings Reports

Lincoln Financial reported solid Q1 2026 results driven by continued execution across its four businesses. Adjusted operating income grew 16% year-over-year (seventh consecutive quarterly YOY growth), with adjusted operating income available to common shareholders of $326 million ($1.66 per diluted share). Key segment takeaways: Group Protection delivered margin expansion and premium growth (local market premium +4% and supplemental health +28% YOY); Annuities are being deliberately rebalanced toward spread-based products (total sales $3.9B, 64% spread-based) with RILA and FIAs showing strength while traditional VAs continue to see outflows; Life Insurance sales rose >30% YOY as management shifts new business toward IUL, accumulation VUL and executive benefits; Retirement Plan Services operating income grew 26% YOY with early signs the realignment is working though Q2 will see known plan terminations. Investment portfolio and alternatives were favorable in Q1 (alternatives ~12.3% annualized in the quarter; alts portfolio $4.2B), but management notes potential near-term volatility and a portfolio lag versus public markets. Capital and liquidity: estimated RBC well above target buffer, leverage ratio at 25% (long‑term target), and holding-company liquidity ~ $1.2B (about $805M net of prefunding), supporting capital flexibility and potential upstreams. Management reiterated priority on capital strength, operating efficiency (digital/automation investments), and profitable, capital-efficient growth instead of growth-at-all-costs. Near-term headwinds include market-driven GAAP volatility (negative mark-to-market movements impacted net income), a onetime ~$7M tax true-up affecting annuities ETR, seasonal fee-day effects, and disability normalization pressures (PFML impacts and resolution severity). Overall, management expects the business to continue building higher-quality, more predictable earnings and free cash flow over time while acknowledging some quarter-to-quarter variability.