Lincoln Financial Group has released its financial results for the first quarter of 2025, showing a mixed performance amid ongoing economic challenges. The company reported an adjusted operating income of $280 million, equivalent to $1.60 per diluted share. However, it also faced a significant net loss of $756 million for common stockholders, translating to $(4.41) per diluted share.
The company attributed its performance to successful strategic and financial initiatives, highlighting improvements across its core business lines. In the life insurance segment, Lincoln recorded a loss of $16 million, which is an improvement from a $35 million loss during the same period last year. This positive shift was driven by better mortality rates and reduced administrative costs, although it was somewhat offset by a decrease in income from alternative investments.
Total life insurance sales reached $97 million, marking a 7% increase from the first quarter of 2024. Average account balances, excluding reinsurance, rose to $44 billion, reflecting a 5% year-over-year growth.
As of March 31, 2025, Lincoln Financial reported a net unrealized pre-tax loss of $9.4 billion on its available-for-sale securities portfolio, a slight improvement from $9.8 billion the previous year. This change was primarily linked to lower yields on U.S. Treasury securities.
In contrast, the company had a strong performance in the fourth quarter of the previous year, where it posted a net income of $1.7 billion, or $9.63 per diluted share, largely due to favorable market conditions.
CEO Ellen Cooper emphasized that the company’s strategic actions over the past few years have strengthened its capital base and diversified its business model, positioning it to meet commitments to shareholders and policyholders despite ongoing market volatility.
In terms of its annuities business, Lincoln reported an operating income of $290 million, consistent with the previous year when adjusted for a prior-year impact. Annuity sales surged to $3.8 billion, a 33% increase from the previous year, with spread-based products making up a significant portion of the sales.
The group protection segment also performed well, posting an operating income of $101 million, a 26% increase from the same quarter last year. This growth was supported by favorable outcomes in long-term disability claims and a 7% rise in premiums.
However, the retirement plan services area saw a decline in operating income to $34 million, down 6% from Q1 2024, mainly due to the impact of a plan termination. Total deposits in this segment rose by 8%, reaching $4.1 billion, driven by increased contributions.
Overall, while Lincoln Financial faced challenges, its strategic initiatives and improvements in certain areas provided a glimmer of hope for a more stable financial future.