Lincoln National Reports Record Financial Growth in 2025

Lincoln National Corporation unveiled impressive financial outcomes for the fourth quarter and the entire year of 2025, showcasing significant progress across various segments. This period saw a net income for common stockholders of $745 million, or $3.80 per diluted share. Adjusted operating income was $434 million, equating to $2.21 per diluted share, which reflects core performance by excluding market-related factors.

Throughout 2025, the corporation's adjusted operating income soared to $1.54 billion, translating to $8.23 per diluted share. The annuities segment reported record-high account balances of $175 billion and sales of $4.9 billion, marking a 33% increase from the prior year. The life insurance division saw a quarterly operating income of $77 million, transitioning from a loss last year thanks to improved mortality rates and solid investment income from alternatives.

Operational Growth and Financial Stability

Lincoln National showed significant growth in its group protection and retirement plan services. Group Protection reported a quarterly operating income of $109 million, reflecting an 8% rise in insurance premiums. Meanwhile, Retirement Plan Services achieved $46 million in operating income with a 13% growth in deposits. At the year’s end, excluding prefunding, the holding company's available liquidity climbed to $655 million, highlighting solid liquidity and risk management strategies.

Despite a decrease in GAAP net income compared to 2024, Lincoln National's president and CEO, Dennis R. Glass, emphasized the effectiveness of their strategic initiatives, particularly in the annuities and life insurance sectors. Differences between GAAP and adjusted income stem from non-economic market risk movements and investment factors. The company's RBC ratio remained robust above 420%, ensuring strong regulatory compliance and capital strength.

Lincoln National's 2025 financial performance demonstrates strategic advances and resilience within the insurance industry. Future earnings reports will delve into the sustainability of elevated investment and prepayment income, and the behavior of net outflows relative to sales growth, reinforcing Lincoln's strong position in insurance underwriting and claims management.