Q2 2026 Lincoln National Corp Earnings Call Transcript
Key Points
- Lincoln National Corp (LNC) delivered its eighth consecutive quarter of year-over-year adjusted operating income growth, demonstrating consistent execution.
- The company announced a reinsurance agreement for $5.8 billion of legacy life reserves, which is expected to increase ongoing annual free cash flow by $30 million to $40 million.
- Lincoln National Corp (LNC) prefunded half of its preferred stock repurchase/redemption, strengthening its capital position and providing greater flexibility for future capital priorities like share repurchases.
- Group Protection earnings remained strong, with premium growth concentrated in high-return areas like supplemental health (up 28% year-over-year) and local markets.
- Life Insurance earnings improved year-over-year, driven by favorable mortality trends, and core life sales increased 18%.
- Annuity net outflows were approximately $2.9 billion, driven by traditional variable annuities, with the pace of outflows remaining consistent with recent quarters.
- Group Protection earnings declined from a record year-ago quarter, with the disability loss ratio increasing 500 basis points year-over-year due to normalization from historically strong results.
- Alternative investment returns were below target at an annualized 4.9%, creating a $39 million headwind for the Life Insurance segment.
- Retirement Plan Services experienced net outflows of $2.4 billion due to the planned transition of large cases that did not meet profitability thresholds.
- General and administrative expenses increased 5% year-over-year, reflecting continued investments in technology and platform improvements across businesses.
Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Lincoln Financial second-quarter 2026 earnings webcast and conference call. (Operator Instructions).
I'd now like to turn the conference over to John Muething, Head of Investor Relations. Please go ahead.
Thank you. Good morning, everyone, and welcome to our second quarter earnings call. We appreciate your interest in Lincoln. Our quarterly earnings press release, earnings supplement and statistical supplement can all be found on the Investor Relations page of our website, www.lincolnfinancial.com.
These documents include reconciliations of the non-GAAP measures used on today's call, including adjusted income from operations and adjusted income from operations available to common stockholders or adjusted operating income to their most comparable GAAP
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