Lincoln Financial Group (NYSE:LNC) reported third-quarter results that surpassed earnings expectations on Thursday, as robust performance in its annuities business helped offset slightly weaker revenue figures.
The financial services company posted adjusted earnings of $2.04 per share, ahead of analyst forecasts of $1.86, while revenue came in at $4.55 billion, just below the consensus estimate of $4.8 billion. Shares inched up 0.07% following the announcement.
Adjusted operating income available to common stockholders totaled $397 million, compared with $358 million in the same period a year earlier. The annuities segment continued to be a key earnings driver, posting operating income of $318 million, up 6% year over year, fueled by favorable equity markets, wider spreads, and beneficial tax items.
“This quarter’s results underscore the broad-based momentum across Lincoln as we advance our strategic priorities,” said Ellen Cooper, Chairman, President and CEO of Lincoln Financial.
Total annuity sales climbed 32% year over year to $4.5 billion, with spread-based products accounting for over 60% of total sales.
The life insurance business saw a strong rebound, with operating income rising to $54 million from $14 million in the prior-year quarter, supported by stable mortality trends, higher investment income, and cost control.
The Group Protection segment maintained steady profitability, generating $110 million in operating income — roughly flat from last year — as favorable life claims were offset by unfavorable long-term disability resolutions. Segment premiums rose 5% year over year.
Meanwhile, Retirement Plan Services reported operating income of $46 million, up 5%, benefiting from improved equity markets and spread expansion.
Lincoln ended the quarter with a risk-based capital ratio above 420% and available liquidity of $461 million at the holding company level, underscoring the firm’s solid financial footing.