Lincoln Financial Group reported first-quarter 2025 financial results, posting an adjusted operating income of $280 million, or $1.60 per diluted share. Net income available to common stockholders was a loss of $756 million, or $(4.41) per diluted share.
The company noted that execution of strategic and financial initiatives contributed to its performance, with notable results across its core business lines.
Lincoln’s life insurance segment reported a $16 million loss from operations in Q1 2025, an improvement from a $35 million loss in the same period last year. The result reflected improved mortality experience and lower general and administrative expenses, which were partially offset by reduced alternative investment income.
Total life insurance sales reached $97 million, up 7% from Q1 2024. Average account balances, net of reinsurance, were $44 billion, representing a 5% increase year over year.
The company reported a net unrealized pre-tax loss of $9.4 billion on its available-for-sale securities portfolio as of March 31, 2025, compared to $9.8 billion a year earlier. The reduction was attributed to lower US Treasury yields.
Comparatively, in the fourth quarter of the previous year, Lincoln posted net income available to common stockholders of $1.7 billion, or $9.63 per diluted share. A $1.2 billion pre-tax net income impact, or $6.83 per diluted share, was attributed to market risk benefits driven by rising interest rates.
“Against the current backdrop of macroeconomic uncertainty, the strategic actions we have taken over the past several years to strengthen our capital foundation, optimize our operating model, and shift to a more resilient and diversified business mix leave us well prepared to fulfill our commitments to shareholders and policyholders despite the ongoing volatility,” CEO Ellen Cooper said.
Lincoln’s annuities business recorded operating income of $290 million for the quarter, consistent with Q1 2024 when adjusted for the prior-year unfavorable impact of $31 million in significant items.
Market appreciation and spread expansion were offset by continued outflows in variable annuities. First-quarter annuity sales totaled $3.8 billion, an increase of 33% from the previous year. Spread-based products made up approximately 60% of total annuity sales.
In life insurance, the $16 million operating loss marked a $19 million improvement compared to the prior year, driven by lower expenses and improved mortality trends. Total sales for the segment grew 7% to $97 million, supported by ongoing momentum in risk-sharing products.
The group protection business posted operating income of $101 million for Q1 2025, a 26% increase from the same quarter last year. The operating margin rose 120 basis points to 7.4%. Performance was supported by favorable outcomes in long-term disability claims. Premiums increased 7% year over year, driven by persistency and previous-year sales, while total sales were $157 million, up 9%, led by supplemental health products.
Retirement plan services generated $34 million in operating income, down 6% from Q1 2024. The decline was primarily linked to the impact of a plan termination. Excluding this event, earnings were steady compared to the prior year. Total deposits rose 8% to $4.1 billion, supported by higher recurring contributions.
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