Lincoln National Corporation (NYSE:LNC) advanced about 3.8% in after-hours trading on Thursday after posting fourth-quarter results that surpassed Wall Street forecasts, closing out the year with solid momentum across its core divisions.
The insurer and retirement services provider reported adjusted operating income of $434 million, or $2.21 per diluted share, ahead of analyst estimates of $1.90. Revenue totaled $4.92 billion, beating the $4.85 billion consensus forecast. Investors welcomed the stronger-than-expected earnings performance, sending the stock higher.
Net income available to common shareholders reached $745 million, or $3.80 per diluted share. The gap between net income and adjusted operating income primarily reflected the non-economic impact of changes tied to market risk benefits.
“Fourth-quarter results reflected continued broad-based momentum and strong execution against our strategic priorities. Each of our businesses contributed meaningfully to our performance,” said Ellen Cooper, Chairman, President and CEO of Lincoln Financial.
Within its segments, Annuities generated operating income of $311 million, up 3% year over year, supported by favorable equity markets and mortality trends. Life Insurance posted $77 million in operating income, marking a $92 million improvement from the prior-year quarter, helped by better mortality experience and robust alternative investment returns.
Group Protection delivered operating income of $109 million, slightly above the $107 million recorded a year earlier, as improved disability results offset life experience that aligned more closely with expectations. Retirement Plan Services reported $46 million in operating income, a 7% year-over-year increase.
“We have made significant progress building a more resilient foundation, establishing the capabilities to deliver more consistent performance today and over time,” Cooper added.
At year-end, holding company liquidity stood at $655 million, net of prefunding, underscoring enhanced capital flexibility.