Lincoln Financial Q2 Earnings Show Strong Performance Across All Segments, Sets Up for Future Growth

Lincoln Financial reported strong Q2 results, with record earnings and highest margin in Group Protection division history. Annuities segment had its third-best quarter for sales, while Retirement Plan Services experienced a rise in total deposits. Life Insurance segment reported positive earnings due to favorable mortality rates and reduced expenses. The company is well-positioned to continue building momentum and fully realize its potential.

Lincoln Financial (LNC) reported robust second-quarter (Q2) results, highlighting significant progress across its business segments. The company's net income available to common stockholders reached $688 million, or $3.80 per diluted share, while adjusted operating income available to common stockholders stood at $427 million, or $2.36 per diluted share [3].

Key highlights include:

- Group Protection Division: This segment reported a record quarter for earnings and its highest-ever margin. Operating income increased by 33% compared to the prior-year quarter, driven by favorable long-term disability results and a 7% increase in premiums [3].

- Annuities Segment: Annuities generated its third-highest sales quarter, with total sales of $4.0 billion, up 5% year over year. The segment reported operating income of $287 million, down 3% compared to the prior-year quarter, primarily due to outflows in traditional variable annuities [3].

- Retirement Plan Services: This segment experienced a rise in total deposits, driven by almost 50% first-year sales growth. Total deposits reached $3.6 billion in the quarter, a 10% increase from the prior-year period. Net outflows were $0.6 billion, compared to $0.2 billion in the year-ago quarter, as plan terminations were partially offset by continued strength in first-year sales [3].

- Life Insurance Segment: This segment reported positive earnings, driven by favorable mortality rates and improved expenses. Total sales were $121 million, 15% higher than the prior-year period, as momentum in sales of risk-sharing products continued [3].

Lincoln Financial's strong Q2 performance reflects a more balanced business mix and disciplined execution against strategic initiatives. The company's diverse earnings mix and capital flexibility position it well to build on this momentum and unlock its full potential [3].

The company's shares have added about 7.9% since the beginning of the year, compared to the S&P 500's gain of 8.2%. The Zacks Rank for Lincoln National is currently #3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [2].

References:
[1] https://www.marketscreener.com/news/kirby-shares-fall-after-q2-results-ce7c5fddd18df625
[2] https://finance.yahoo.com/news/lincoln-national-lnc-q2-earnings-111502763.html
[3] https://www.stocktitan.net/news/LNC/lincoln-financial-reports-2025-second-quarter-vsfeemhz6fs6.html