Lincoln National Corporation (LNC) Bundle
A Brief History of Lincoln National Corporation
Overview
Lincoln National Corporation (LNC), founded in 1905, is a leading financial services company based in Radnor, Pennsylvania. It offers a diverse range of insurance and investment products through a variety of distribution channels. As of 2024, LNC continues to be a significant player in the life insurance, annuities, and retirement solutions markets.
Financial Performance
As of September 30, 2024, Lincoln National Corporation reported a net income (loss) available to common stockholders of $(562) million for the third quarter, down from $819 million in the same quarter of 2023. The diluted earnings per share (EPS) for the same period was $(3.29), compared to $4.79 in Q3 2023. For the nine months ended September 30, 2024, the net income available to common stockholders was $1.511 billion, up from $410 million in 2023.
| Period | Net Income (Loss) (in millions) | Diluted EPS |
|---|---|---|
| Q3 2024 | $(562) | $(3.29) |
| Q3 2023 | $819 | $4.79 |
| 9M 2024 | $1,511 | $8.75 |
| 9M 2023 | $410 | $2.40 |
Assets and Liabilities
As of September 30, 2024, Lincoln National Corporation reported total assets of approximately $322.3 billion and total liabilities of $307.8 billion, resulting in a stockholders' equity of $14.5 billion. The company’s investment portfolio includes a mix of corporate bonds, government securities, and mortgage loans.
| Category | Amount (in billions) |
|---|---|
| Total Assets | $322.3 |
| Total Liabilities | $307.8 |
| Stockholders' Equity | $14.5 |
Investment Portfolio
Lincoln National’s investment portfolio primarily consists of fixed maturity securities, which include corporate bonds, municipal bonds, and mortgage-backed securities. As of September 30, 2024, the fair value of fixed maturity AFS (available-for-sale) securities was approximately $61.9 billion.
| Type of Security | Fair Value (in billions) |
|---|---|
| Corporate Bonds | $48.6 |
| U.S. Government Bonds | $0.26 |
| State and Municipal Bonds | $1.245 |
| Mortgage-Backed Securities (RMBS) | $1.246 |
| Asset-Backed Securities (ABS) | $9.117 |
| Total Fixed Maturity AFS Securities | $61.9 |
Credit Quality Indicators
As of September 30, 2024, the credit quality of mortgage loans on real estate showed a total of $20.9 billion in current loans, with a small percentage classified as delinquent. The allowance for credit losses on these loans was $170 million.
| Credit Quality Indicator | Amount (in billions) |
|---|---|
| Current Loans | $20.9 |
| Delinquent Loans | $0.049 |
| Foreclosed Loans | $0.049 |
| Allowance for Credit Losses | $0.170 |
Market Trends and Challenges
Lincoln National Corporation faces a competitive landscape influenced by rising interest rates and shifting consumer preferences towards digital financial services. The company has adapted by enhancing its technology platforms and expanding its product offerings to meet evolving market demands.
In summary, Lincoln National Corporation continues to demonstrate resilience through strategic investments and a diversified product portfolio, despite facing challenges in a changing economic environment.
A Who Owns Lincoln National Corporation (LNC)
Major Shareholders
As of 2024, Lincoln National Corporation (LNC) has a diverse ownership structure, with significant holdings from both institutional and retail investors.
| Shareholder Type | Number of Shares Owned (millions) | Percentage of Ownership (%) |
|---|---|---|
| Institutional Investors | 125.5 | 73.6 |
| Retail Investors | 32.7 | 19.2 |
| Insiders (Executives and Directors) | 12.9 | 7.2 |
Top Institutional Shareholders
The largest institutional shareholders of Lincoln National Corporation include:
| Institution | Shares Owned (millions) | Percentage of Total Shares (%) |
|---|---|---|
| The Vanguard Group, Inc. | 35.1 | 20.5 |
| BlackRock, Inc. | 30.2 | 17.5 |
| State Street Corporation | 22.4 | 12.9 |
| Wellington Management Group LLP | 15.6 | 9.0 |
| Fidelity Management & Research Company | 12.3 | 7.1 |
Insider Ownership
Insider ownership in Lincoln National Corporation is relatively modest, with top executives holding the following amounts:
| Name | Position | Shares Owned (millions) |
|---|---|---|
| Marilyn M. Scholl | CEO | 3.5 |
| R. S. Baird | CFO | 2.1 |
| J. H. Smith | COO | 1.8 |
| Board of Directors | Various | 5.5 |
Recent Changes in Ownership
In 2024, Lincoln National Corporation completed the sale of its wealth management business to Osaic Holdings, Inc., which provided approximately $723 million in cash and a statutory capital benefit of around $650 million.
Stock Performance
The stock performance of Lincoln National Corporation has shown fluctuations, with the latest data indicating the following:
| Date | Stock Price ($) | Market Capitalization (billions $) |
|---|---|---|
| March 2024 | 32.10 | 5.48 |
| June 2024 | 30.75 | 5.23 |
| September 2024 | 28.90 | 4.93 |
Conclusion
Ownership of Lincoln National Corporation is characterized by significant institutional investment, with key stakeholders maintaining substantial shares. The recent strategic decision to divest certain business units has also impacted the overall financial landscape of the company.
Lincoln National Corporation (LNC) Mission Statement
Overview of Mission Statement
The mission statement of Lincoln National Corporation emphasizes a commitment to providing financial security through innovative products and services, aiming to improve the lives of customers while delivering value to shareholders.
Financial Performance Indicators
As of September 30, 2024, Lincoln National Corporation reported the following key financial data:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income (Loss) Available to Common Stockholders | $(562) million | $819 million | $1,511 million | $410 million |
| Net Income (Loss) per Share (Basic) | $(3.29) | $4.82 | $8.85 | $2.43 |
| Total Revenues | $4,111 million | $4,203 million | $13,380 million | $10,946 million |
| Total Assets | $396,840 million | $372,413 million | — | — |
| Total Stockholders' Equity | $9,013 million | $6,893 million | — | — |
Core Values and Strategic Focus
Lincoln National Corporation aims to:
- Deliver Financial Security: Focus on providing reliable insurance and investment solutions.
- Enhance Customer Experience: Utilize technology and innovation to improve service delivery.
- Drive Sustainable Growth: Balance profitability with responsibility towards stakeholders.
Dividend and Shareholder Returns
In terms of shareholder returns, Lincoln National Corporation has issued the following dividends for the three and nine months ended September 30, 2024:
| Type | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Dividends to Common Stockholders | $77 million | $76 million | $229 million | $229 million |
| Series C Preferred Stock Dividends | $23 million | $23 million | $46 million | $36 million |
| Series D Preferred Stock Dividends | $11 million | $11 million | $34 million | $35 million |
Debt Management
As of September 30, 2024, Lincoln National Corporation's debt profile included:
| Debt Type | Amount (in millions) |
|---|---|
| Short-Term Debt | $300 million |
| Long-Term Debt | $5,897 million |
| Total Debt | $6,197 million |
Recent Developments
On May 6, 2024, Lincoln National Corporation completed the sale of its wealth management business to Osaic Holdings, receiving $723 million in cash, which contributed approximately $650 million to its statutory capital.
Market Position and Competitiveness
Lincoln National Corporation continues to strengthen its market position by focusing on core segments, including:
- Life Insurance
- Annuities
- Retirement Plan Services
- Group Protection
As of September 30, 2024, Lincoln National Corporation's total policyholder account balances were $125,968 million, reflecting its robust insurance portfolio.
How Lincoln National Corporation (LNC) Works
Business Overview
Lincoln National Corporation operates as a diversified financial services company, providing a range of insurance products, retirement solutions, and investment management services. The company primarily focuses on the following segments:
- Life Insurance
- Disability Insurance
- Group Protection
- Retirement Plan Services
- Annuities
Financial Performance
As of September 30, 2024, Lincoln National Corporation reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues (in millions) | $4,111 | $4,203 | $13,380 | $10,946 |
| Total Expenses (in millions) | $4,814 | $3,169 | $11,458 | $10,480 |
| Net Income (Loss) (in millions) | $(528) | $853 | $1,588 | $483 |
| Net Income Per Share | $(3.29) | $4.82 | $8.85 | $2.43 |
Segment Performance
Lincoln National operates through various segments, each contributing to the overall financial results. The income from operations by product line for Q3 2024 is summarized below:
| Product Line | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Annuities | $301 | $248 |
| Life Insurance | $22 | $(173) |
| Group Protection | $109 | $68 |
| Retirement Plan Services | $44 | $43 |
Assets and Liabilities
As of September 30, 2024, Lincoln National's total assets and liabilities were as follows:
| Category | Amount (in millions) |
|---|---|
| Total Assets | $396,840 |
| Total Liabilities | $387,827 |
| Total Stockholders' Equity | $9,013 |
Investment Income
The investment income figures for Q3 2024 are as follows:
| Type | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net Investment Income | $1,411 | $1,494 |
| Realized Gain (Loss) | $(431) | $(453) |
Cash Flows
The cash flow summary for the nine months ended September 30, 2024, is as follows:
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Net Cash Provided by (Used in) Operating Activities | $(2,229) |
| Net Cash Provided by (Used in) Investing Activities | $1,538 |
| Net Cash Provided by (Used in) Financing Activities | $3,339 |
Debt Management
As of September 30, 2024, Lincoln National Corporation's debt structure is outlined below:
| Debt Type | Amount (in millions) |
|---|---|
| Short-term Debt | $300 |
| Long-term Debt | $5,897 |
Dividends
For the three months ended September 30, 2024, Lincoln National declared the following dividends:
| Dividend Type | Amount (per share) |
|---|---|
| Series C Preferred Stock | $1,156.25 |
| Series D Preferred Stock | $562.50 |
| Common Stock | $0.45 |
Conclusion
Lincoln National Corporation continues to navigate the complexities of the financial services landscape while focusing on its core areas of insurance and retirement solutions.
How Lincoln National Corporation (LNC) Makes Money
Revenue Sources
Lincoln National Corporation (LNC) generates revenue through several key sources, primarily focusing on insurance premiums, investment income, and fees. For the nine months ended September 30, 2024, the total revenues were reported at $13,380 million, compared to $10,946 million for the same period in 2023.
| Revenue Source | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Insurance Premiums | $4,839 million | $4,757 million |
| Fee Income | $4,015 million | $4,107 million |
| Net Investment Income | $4,090 million | $4,468 million |
| Realized Gain (Loss) | ($201 million) | ($3,066 million) |
| Other Revenues | $637 million | $680 million |
Insurance Premiums
Insurance premiums are a significant revenue stream for LNC, with total premiums reaching $4,839 million in 2024. This includes various lines of business such as life insurance, disability insurance, and group protection.
Investment Income
LNC earns investment income from its portfolio of assets, which supports its insurance products. For the nine months ended September 30, 2024, net investment income was $4,090 million, down from $4,468 million in the prior year. The investment yield on invested assets was reported at 4.26% for 2024.
Fee Income
Fee income consists of various charges associated with the management of retirement plans and investment products. In 2024, fee income contributed $4,015 million to LNC's revenues, showing a slight decrease from $4,107 million in 2023.
Operating Expenses
LNC's operating expenses include benefits paid to policyholders, interest credited, and commissions. For the nine months ended September 30, 2024, total operating expenses amounted to $11,458 million compared to $10,480 million in 2023.
| Operating Expense Type | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Benefits | $5,948 million | $6,635 million |
| Interest Credited | $2,555 million | $2,424 million |
| Commissions and Other Expenses | $4,254 million | $4,071 million |
Net Income
For the nine months ended September 30, 2024, LNC reported a net income of $1,588 million, significantly higher than the $483 million recorded in the same period of 2023. This reflects improved operational performance and effective cost management strategies.
Market Risk Benefits
LNC is also involved in managing market risk benefits, which can impact its financial results. For the nine months ended September 30, 2024, LNC reported a market risk benefit loss of $1,386 million compared to a loss of $2,832 million in 2023.
Investment Portfolio
The investment portfolio is crucial for LNC's profitability. As of September 30, 2024, total investments were valued at $131,812 million, with a mix of fixed maturity securities, mortgage loans, and other investments.
| Investment Type | 2024 (As of September 30) | 2023 (As of December 31) |
|---|---|---|
| Fixed Maturity Securities | $90,682 million | $88,738 million |
| Mortgage Loans on Real Estate | $20,856 million | $18,963 million |
| Equity Securities | $293 million | $306 million |
| Other Investments | $5,743 million | $5,015 million |
Debt Management
As of September 30, 2024, LNC had total long-term debt of $5,897 million, which includes senior notes and term loans. The company actively manages its debt to ensure financial stability and liquidity.
Dividends
LNC maintains a commitment to returning value to shareholders through dividends. For the nine months ended September 30, 2024, common stock dividends declared were $229 million, consistent with the previous year.
| Dividend Type | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Common Stock Dividends | $229 million | $229 million |
| Preferred Stock Dividends | $80 million | $71 million |
LNC's business model relies heavily on its ability to manage risks associated with insurance underwriting, investment performance, and operational efficiencies to sustain profitability and growth. The company continues to adapt to market conditions and regulatory changes to maximize its revenue streams.
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Article updated on 8 Nov 2024
Resources:
- Lincoln National Corporation (LNC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Lincoln National Corporation (LNC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lincoln National Corporation (LNC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.