NYSE$LNC

Lincoln National Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Lincoln National reported net income of $238 million and adjusted operating income of $391 million.

Lincoln National Group reported a decrease in net income for Q2 2022, with $238 million compared to $642 million in Q2 2021. Despite equity market headwinds, underlying earnings were solid, with positive developments in Group Protection results and a significant decline in pandemic claims.

  • Net income EPS was $1.34, and adjusted operating EPS was $2.23.
  • Adjusted operating EPS included a negative impact of $0.42 primarily from pandemic-related claims experience and below-targeted alternative investment income.
  • Book Value Per Share (BVPS), including AOCI, was $53.97, down 53% primarily driven by higher interest rates.
  • Book Value Per Share (BVPS), excluding AOCI, was $79.49, up 5%.

Headline financials

Total Revenue

$5.1B

Previous: $4.85B+5.2%
EPS (adj)

$2.23

Previous: $3.17-29.7%
Free Cash Flow

$238M

Previous: $642M-62.9%
Net Income

$238M

Previous: $642M-62.9%
Operating Income

$381M

Previous: $871M-56.3%
Gross Profit

$1.51B

Previous: $2.2B-31.4%
Cash & Equivalents

$1.57B

Previous: $2.39B-34.4%
Total Assets

$336B

Previous: $380B-11.7%

Revenue & EPS history

Lincoln National · Revenue · Quarterly

$5.1B

Q2 2022+5.2%vs Q2 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Lincoln National · $6.99B total across 4 segments · Q2 2022

  • Retirement Plan Services
    $2.9B+3.6%
  • Annuities
    $2.7B-15.6%
  • Group Protection
    $1.2B+9.1%
  • Life Insurance
    $193M+53.2%

Forward guidance

The company is focused on improving Group Protection results, reducing pandemic claims, progressing with the Spark expense initiative, and leveraging the rise in interest rates to support future earnings growth and new business returns.

Tailwinds

  • Improving Group Protection results
  • Significant sequential decline in pandemic claims
  • On-track progress from our Spark expense initiative
  • Meaningful rise in interest rates year to date, supporting future earnings growth and new business returns
  • Sales remain robust with new business generating at or above targeted returns

Headwinds

  • Equity market headwinds
  • Annuities business decline in capital markets
  • Unfavorable one-time items in Annuities business
  • Less favorable returns within the company’s alternative investment portfolio
  • Increased investments in the Spark Initiative

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 2022

Historical avgQ2 2022

-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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