Lincoln National Corp (LNC, Financial) released its Q3 2023 earnings report on November 1, 2023. The company reported a net income of $819 million, or $4.79 per diluted share, compared to a net loss of $1.8 billion, or $10.47 per diluted share, in the third quarter of 2022. The company's revenues for the quarter stood at $4.2 billion.
Financial Performance
Despite the challenges faced, LNC reported a significant improvement in its financial performance compared to the same period last year. The company's net income available to common stockholders for the third quarter of 2023 was $819 million, compared to a net loss of $1.8 billion in the third quarter of 2022. The adjusted income from operations available to common stockholders was $39 million, compared to an adjusted loss of $2.0 billion in the third quarter of 2022.
Segment Results
The Annuities segment reported income from operations of $248 million, down 10% compared to the prior-year quarter, primarily due to higher expenses. The Life Insurance segment reported a loss from operations of $173 million, a significant improvement from a loss of $2.2 billion in the prior-year quarter. The Group Protection segment reported income from operations of $68 million, a significant increase from $12 million in the prior-year quarter. The Retirement Plan Services segment reported income from operations of $43 million, down 9% compared to the prior-year quarter.
Capital and Liquidity
As of September 30, 2023, the company's holding company available liquidity was $455 million, compared to $756 million in the prior-year quarter. The estimated Risk-Based Capital (RBC) ratio was in the 375-385% range. The book value per share, including AOCI, decreased 21% to $13.04, while the book value per share, excluding AOCI, increased 10% to $63.03.
CEO's Commentary
“Our earnings this quarter did not meet our expectations and reflect that our progress will not always be linear, but I am confident in our path forward,” said Ellen Cooper, Chairman, President and CEO of Lincoln Financial Group. “Our group business, which produced notably strong performance in the first half of the year, delivered lower than anticipated results this quarter largely driven by higher severity in group life. Across the enterprise, expenses are elevated and are a critical area of focus and opportunity as we look forward."
Despite the challenges faced, the company remains confident in its strategy and is focused on rebuilding capital and achieving sequential sales growth in its Retail Solutions businesses.
Explore the complete 8-K earnings release (here) from Lincoln National Corp for further details.
