Lincoln Financial Group's Q4 2025 Financial Results: Key Highlights

Lincoln Financial Group has announced its financial results for the fourth quarter and full year ending December 31, 2025, highlighting growth and strategic improvements across its business units. The organization attributes its strong performance to effective strategic execution and enhanced capital management, positioning it to better address regulatory compliance requirements.

Financial Summary

Quarterly and Annual Income:

• Net Income: In Q4 2025, net income was $754 million, with a full-year income of $1,177 million. This represents a decrease from the $1,686 million and $3,275 million recorded for the same periods in the prior year, hitting previous industry benchmarks.
• Adjusted Operating Income: Q4 2025 saw adjusted operating income rise to $445 million from $343 million in the previous year. For the full year, adjusted income increased from $1,315 million in 2024 to $1,628 million in 2025.

Earnings and Book Value Per Share:

• Diluted earnings per share available to common stockholders dropped to $3.80 for Q4 2025 from $9.63 in the previous year. Over the full year, this metric decreased to $5.83 from $18.41 in 2024.
• Adjusted income per diluted share climbed from $1.91 in Q4 2024 to $2.21 in Q4 2025, increasing from $7.07 to $8.23 over the complete fiscal years.

Segment Performance

Life Insurance:

The Life Insurance sector experienced significant earnings growth. Key drivers included improved mortality rates and higher investment returns, aligning with industry expectations for underwriting and claims improvements.

Group Protection:

Premium growth was noted across all product lines, which was achieved through effective pricing strategies and strong customer retention, reflecting heightened payer and carrier reliability.

Annuities and Retirement Plan Services:

Earnings growth was supported by record-high account balances, demonstrating effective risk management practices and a focus on robust financial strategies.

Investment Income Analysis

Analyzing alternative investment income post-tax, Lincoln Financial saw an increase from $252 million in 2024 to $317 million in 2025. Likewise, post-tax prepayment income rose from $13 million in 2024 to $17 million in 2025, underpinning regulatory compliance and strategic risk management execution.

Unrealized Investment Changes

The company reported a reduction in net unrealized losses on securities, decreasing significantly from $10.3 billion in 2024 to $7.9 billion by year-end 2025. This improvement was primarily driven by lower Treasury rates, offering a positive outlook on market conditions and regulatory metrics.

Conference Call and Forward Statements

A detailed investor call on February 12, 2026, will provide more in-depth analysis of Lincoln Financial's quarterly performance, including forward-looking statements. These statements will address potential uncertainties and economic influences in maintaining operational efficiency.

Lincoln Financial Group remains committed to its strategic priorities, ensuring alignment with its financial objectives. This dedication places the company on a path to sustainable growth despite the challenges presented by a dynamic economic environment and evolving risk management requirements.