NYSE$LNC

Lincoln National Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Lincoln National's Q2 2021 performance was marked by record adjusted income from operations, driven by positive underwriting results, equity market tailwinds, and solid investment performance.

Lincoln National Group reported a net income of $642 million for Q2 2021, a significant increase compared to the net loss of $(94) million in Q2 2020. Adjusted income from operations was $608 million, compared to $187 million in the prior year. The company's diversified business model benefited from positive underwriting results, equity market tailwinds, and solid investment performance.

  • Net income EPS was $3.34, and adjusted operating EPS was $3.17.
  • Adjusted operating EPS included a negative impact of $(0.22) from elevated pandemic-related claims and a positive impact of $0.59 from above-targeted alternative investment income.
  • Net income ROE, including AOCI, was 12.4%, and adjusted operating ROE, excluding AOCI, was 17.3%.
  • Book Value Per Share (BVPS), including AOCI, increased by 7% to $115.00, while BVPS, excluding AOCI, increased by 9% to $75.45.

Headline financials

Total Revenue

$4.85B

Previous: $3.52B+37.9%
EPS (adj)

$3.17

Previous: $0.97+226.8%
Free Cash Flow

$642M

Previous: -$94M+783.0%
Net Income

$642M

Previous: -$94M+783.0%
Operating Income

$871M

Previous: -$176M+594.9%
Gross Profit

$2.2B

Previous: $947M+132.0%
Cash & Equivalents

$2.39B

Previous: $4.2B-43.1%
Total Assets

$380B

Previous: $340B+11.9%

Revenue & EPS history

Lincoln National · Revenue · Quarterly

$4.85B

Q2 2021+37.9%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Lincoln National · $7.23B total across 4 segments · Q2 2021

  • Annuities
    $3.2B+1250.2%
  • Retirement Plan Services
    $2.8B+9233.3%
  • Group Protection
    $1.1B+2720.5%
  • Life Insurance
    $126M+440.5%

Forward guidance

Lincoln Financial Group's management expressed confidence in their ability to deliver on long-term financial targets, citing sales momentum, expense management opportunities, balance sheet strength, and increased capital return.

Tailwinds

  • Sales momentum across various business segments
  • Expense management opportunities
  • Strong balance sheet
  • Increased capital return to shareholders
  • Diversified business model and various sources of earnings

Headwinds

  • Continuation of the COVID-19 pandemic
  • Deterioration in general economic and business conditions
  • Adverse global capital and credit market conditions
  • Legislative, regulatory or tax changes
  • Actions taken by reinsurers to raise rates on in-force business

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.2%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+0.6%

Avg return

30 days after

50%

36 / 72 earnings

Positive

+7.9%

Q3 2009

Best reaction

-35.5%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.3%-6.8%-7.7%
Q4 2025+5.6%+8.0%-15.3%
Q3 2025+1.6%+0.7%+2.8%
Q1 2025-1.9%+4.4%-1.7%
Q4 2024+5.9%+13.7%+5.4%
Q3 2024-0.2%-2.4%+5.8%
Q2 2024-9.8%-11.6%-3.6%
Q1 2024+1.5%+5.2%+19.1%
Q4 2023-5.3%-0.9%-0.0%
Q3 2023+6.2%+9.4%+10.8%
Q2 2023-0.9%-2.2%-7.3%
Q1 2023-5.0%-9.9%+10.8%
Q4 2022-3.2%-1.0%-27.6%
Q3 2022-35.5%-38.4%-28.1%
Q2 2022-6.3%-7.6%-8.0%
Q1 2022-5.4%-10.6%-10.8%
Q4 2021-5.5%+0.5%-13.3%
Q3 2021-3.1%-1.1%-11.6%
Q2 2021+5.7%+8.8%+8.9%
Q1 2021+6.1%+7.2%+10.0%
Q4 2020+5.4%+10.8%+23.5%
Q3 2020-4.0%+14.0%+46.4%
Q2 2020-1.6%+7.3%+4.7%
Q1 2020+7.1%+8.7%+45.6%
Q4 2019+6.6%+7.2%-31.5%
Q3 2019-8.8%-3.8%-4.7%
Q2 2019-9.6%-14.7%-20.1%
Q1 2019-0.5%+0.1%-10.9%
Q4 2018+0.7%+0.6%+2.3%
Q3 2018+5.2%+7.2%+4.6%
Q2 2018-3.5%-1.9%-3.7%
Q1 2018-5.4%-2.3%-4.0%
Q4 2017+2.3%-7.0%-12.2%
Q3 2017+1.2%+1.1%+1.0%
Q2 2017-0.6%+0.5%-6.3%
Q1 2017+1.8%+3.7%-0.6%
Q4 2016+1.5%+2.3%+5.4%
Q3 2016+5.2%+6.8%+33.4%
Q2 2016+0.4%+7.8%+12.3%
Q1 2016-5.3%
Q4 2015-4.3%
Q3 2015+5.0%
Q2 2015-0.2%
Q1 2015-1.3%
Q4 2014+1.1%
Q3 2014+1.5%
Q2 2014+0.3%
Q1 2014+0.8%
Q4 2013+2.6%
Q3 2013-0.1%
Q2 2013+7.9%
Q1 2013-6.0%
Q4 2012-0.8%
Q3 2012+1.7%
Q2 2012+6.4%
Q1 2012-4.7%
Q4 2011+0.4%
Q3 2011+2.1%
Q2 2011-6.1%
Q1 2011+0.0%
Q4 2010+2.6%
Q3 2010-3.9%
Q2 2010-0.2%
Q4 2009-0.2%
Q1 2010+4.8%
Q2 2009-0.6%
Q4 2007-0.6%
Q3 2008+7.9%
Q3 2009+7.9%
Q2 2008+6.2%
Q1 2009+6.2%
Q4 2008+6.2%

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