RADNOR, PA — Lincoln Financial (NYSE: LNC) has released its financial results for the third quarter ended September 30, 2024, revealing a net income loss but strong operational performance across its business segments. The company reported a net loss available to common stockholders of $562 million, or $3.29 per diluted share, largely influenced by changes in financial derivatives and interest rates.
Despite the net loss, Lincoln achieved an adjusted operating income of $358 million, or $2.06 per diluted share. The key factors contributing to the discrepancy between net income and adjusted operating income included a $446 million pre-tax net loss related to derivative valuation changes and a $381 million pre-tax net loss due to market risk benefits affected by lower interest rates.
Ellen Cooper, Chairman, President, and CEO of Lincoln Financial, expressed satisfaction with the company’s performance: “Our third quarter results exceeded our expectations and reinforced our disciplined strategic execution, supported by the momentum and strong underlying fundamentals in each of our businesses.” She highlighted the impressive performance of Group Protection and Annuities, along with growth in Retirement Plan Services and Life Insurance.
Annuities recorded $300 million in operating income, marking a 15% increase year over year, driven by account balance growth and robust market conditions. The segment reported total sales of $3.4 billion, up 24%, with spread-based products contributing significantly.
Group Protection showed remarkable improvement with $110 million in operating income, more than doubling from the previous year. The margin expanded to 8.5%, supported by favorable disability outcomes and strong business execution.
Life Insurance produced $14 million in operating income, with a 16% sequential sales growth, reflecting the effectiveness of strategic distribution and product adjustments.
Retirement Plan Services achieved $44 million in operating income, a 2% year-over-year increase, and first-year sales reached $1.7 billion, leading to positive net flows of $651 million.
With an estimated RBC ratio exceeding 420%, Lincoln Financial continues to leverage its competitive strengths to drive profitable growth and enhance capital flexibility, positioning itself for long-term value creation.
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