LNC Q4 Earnings Beat Estimates on Rising Insurance Premiums

Lincoln National Corporation LNC reported fourth-quarter 2025 adjusted earnings per share of $2.21, which surpassed the Zacks Consensus Estimate by 18.7%. The bottom line rose 15.7% year over year.

Adjusted operating revenues grew 5.7% year over year to $4.9 billion. The top line beat the consensus mark by 1%.

The strong quarterly results were supported by higher insurance premiums, strong annuity deposits and solid Life Insurance performance. Higher net investment income and improved mortality results also contributed to the upside. Nevertheless, the positives were partly offset by a decline in the sales of Group Protection and elevated expenses.

Lincoln National Corporation Price, Consensus and EPS Surprise

Lincoln National Corporation price-consensus-eps-surprise-chart | Lincoln National Corporation Quote

Key Takeaways From LNC’s Q4 Results

LNC’s estimated RBC ratio rose to more than 420% at the fourth-quarter end.

Insurance premiums advanced 5.4% year over year to $1.7 billion, beating the Zacks Consensus Estimate by 1%.

Fee income was $1.4 billion, which improved 1.4% year over year but missed the consensus mark by 1.9%. Net investment income advanced 11% year over year to $1.6 billion and beat the consensus mark by 6.7%.

Meanwhile, other revenues of $200 million rose 10.5% year over year in the quarter under review.

Total expenses rose 35.2% year over year to $4 billion. Interest credited rose 10.8% year over year to $984 million.

Lincoln National reported a net income of $754 million compared to the prior-year quarter’s figure of $1.7 billion.

Lincoln National’s Segmental Performances

The Annuities and Life Insurance segments form part of LNC’s Retail Solutions business, while Group Protection and Retirement Plan Services units make up the Workplace Solutions business.

The Annuities segment’s operating income totaled $311 million in the fourth quarter, which grew 2.6% year over year and surpassed the Zacks Consensus Estimate of $303.1 million, backed by improved mortality experience and a favorable equity market. The unit's operating revenues rose 7% year over year to $1.3 billion, driven by 11.9% growth in net investment income, partly offset by a 3.4% decline in insurance premiums. Total annuity deposits were $4.9 billion, which climbed 32.4% year over year.

The Life Insurance unit recorded an operating income of $77 million, improved from the prior-year quarter’s loss of $15 million and beat the consensus mark of $28.3 million. The metric benefited from improved mortality and higher alternative investment income. Operating revenues grew 2.2% year over year to $1.6 billion. Total Life Insurance sales of $142 million advanced 19.3% year over year. Total deposits grew 3.9% year over year to $1.5 billion.

The Group Protection segment’s operating income increased 1.9% year over year to $109 million and beat the Zacks Consensus Estimate of $100.7 million. The unit was supported by favorable long-term disability results. Operating revenues totaled $1.5 billion in the quarter under review, which improved 8.3% year over year. The metric was driven by an 8.3% rise in insurance premiums. Sales of $391 million fell 16.3% year over year.

The Retirement Plan Services segment recorded an operating income of $46 million, which rose 7% year over year and beat the consensus mark of $41 million. The metric benefited from the expansion of spreads and favorable equity markets. Operating revenues increased 4.5% year over year to $352 million. Total deposits were $3.9 billion, which advanced 13.4% year over year.

Other Operations incurred an operating loss of $98 million, wider than the year-ago quarter’s loss of $95 million and the Zacks Consensus Estimate of $94.5 million.

Lincoln National’s Financial Update (As of Dec. 31, 2025)

Lincoln National exited the fourth quarter with cash and invested cash of $9.5 billion, which rose from the 2024-end level of $5.8 billion. Total assets of $417.2 billion rose from the figure at the 2024-end of $390.8 billion.

Long-term debt amounted to $5.9 billion and remained stable with the figure as of Dec. 31, 2024.

Total stockholders’ equity of $10.9 billion rose from the 2024-end level of $8.3 billion.

Book value per share, excluding accumulated other comprehensive income, was $73.10, which rose from the 2024-end level of $72.06. Adjusted income from operations ROE improved 120 basis points year over year to 12.1%.

LNC’s Dividend Update

Lincoln National paid out quarterly dividends of $85 million.

Lincoln National’s Full-Year Update

Lincoln National reported adjusted earnings per share of $8.23 in 2025, which climbed 16.4% year over year. Adjusted operating revenues improved 4.1% year over year to $19.1 billion.

Operating revenues in the Annuities, Life Insurance, Group Protection and Retirement Plan Services segments witnessed year-over-year improvements of 1.9%, 3.1%, 6.7% and 2.4%, respectively, in 2025.

LNC’s 2026 Revised Outlook

In 2026, the Annuities, Life Insurance, Group Protection and Retirement Plan Services units are now projected to account for 58-60%, 8-9%, 24-25% and 8-9%, respectively, of the company’s total operating income earnings.

Management targeted to achieve an RBC ratio of more than 420% in both 2026 and the long term.

LNC’s Zacks Rank

LNC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did Peers Perform?

Several companies in the insurance space, including RenaissanceRe Holdings Ltd. RNR, MetLife, Inc. MET and Everest Group, Ltd. EG, have already reported their financial results for the December quarter of 2025. Here’s how they had performed:

RenaissanceRe reported fourth-quarter 2025 operating income of $13.34 per share, which surpassed the Zacks Consensus Estimate by 26%. The bottom line surged 65.5% year over year. The results were aided by a rise in net investment income and strong underwriting results. Total expenses dropped year over year, thanks to declines in claims expenses, acquisition and operational costs. However, the upside is partly offset by RNR’s lower premiums in general casualty and specialty lines, and the Property segment.

MetLife reported fourth-quarter 2025 adjusted operating earnings per share of $2.58, which beat the Zacks Consensus Estimate by 9.3%. The bottom line advanced 24% year over year. The quarterly earnings were aided by strong performance in its Asia, Group Benefits, RIS and EMEA segments, driven by higher volumes and improved investment income. An increase in adjusted premiums, fees and other revenues contributed to the upside. However, MET’s upside was partly offset by a VAT charge in Mexico that inflicted pressure on adjusted earnings in the Latin America unit.

Everest Group reported a fourth-quarter 2025 operating income of $13.26 per share, missing the Zacks Consensus Estimate by 0.8%. The bottom line reversed the year-ago loss of $18.39. EG benefited from the strong-performing Reinsurance segment, along with solid core fixed-income investment returns. These positives were partially offset by weak performance in the insurance businesses, higher expenses and underwriting losses.

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