Lincoln Financial Group (NYSE:LNC) reported first-quarter results on Thursday that matched earnings expectations while delivering stronger-than-expected revenue, though shares moved lower in premarket trading following the release.
The stock declined 2.79% ahead of the opening bell.
Revenue tops forecasts as earnings meet expectations
The insurance and financial services company posted adjusted earnings of $1.66 per share for the quarter ended March 31, broadly in line with analyst expectations of $1.60 per share.
Revenue rose to $5.31 billion, exceeding the analyst consensus estimate of $4.94 billion by 7.5%.
The figure also represented a 13% increase from $4.69 billion reported in the same quarter last year.
Net loss tied to market-related impacts
Lincoln Financial recorded a net loss of $172 million, or -$1.10 per diluted share.
The company said the loss was mainly driven by non-economic effects tied to changes in market risk benefits.
Group Protection and Life Insurance show improvement
The Group Protection segment generated record first-quarter earnings of $112 million, marking an 11% increase from the prior-year period.
Meanwhile, Life Insurance operating income improved significantly to $41 million, compared with a loss of $16 million a year earlier.
Annuities operating income declined 5% year-over-year to $275 million, impacted by adjustments related to net investment income allocation as well as unfavorable tax items.
“Our first quarter results reflect continued disciplined execution and consistent, meaningful progress against our strategic priorities,” said Ellen Cooper, Chairman, President and CEO.
“The cumulative impact of the actions we’ve taken — strengthening our capital foundation, optimizing our operating model, and diversifying our business mix — are translating into a more resilient, higher-quality earnings profile.”
Liquidity and capital position strengthen
Holding company available liquidity increased to $805 million, net of prefunding amounts, compared with $466 million in the prior-year quarter.
The company also said its risk-based capital ratio remained above 420%.
More about Lincoln Financial
Lincoln Financial Group is a financial services company offering insurance, retirement, and wealth management products. Its businesses include annuities, life insurance, employee benefits, and retirement planning solutions serving individuals, employers, and institutional clients across the United States.