RADNOR, PA — Lincoln Financial (NYSE: LNC) reported a first-quarter net loss driven largely by accounting impacts tied to market risk benefits, even as operating earnings improved across several core business segments.
The company posted a net loss available to common stockholders of $211 million, or $1.10 per diluted share, for the quarter ended March 31, compared with adjusted operating income of $326 million, or $1.66 per diluted share.
Lincoln said the gap between reported net loss and adjusted operating income primarily reflected non-economic changes in market risk benefits.
Holding company liquidity increased to $805 million during the quarter, net of prefunding amounts.
Chairman, President and Chief Executive Officer Ellen Cooper pointed to earnings growth in retirement, life insurance and workplace protection businesses as the company continues restructuring efforts aimed at stabilizing long-term earnings.
“Our first quarter results reflect continued disciplined execution and consistent, meaningful progress against our strategic priorities,” Cooper said.
The annuities business generated operating income of $275 million, down 5% from the prior-year quarter. Lincoln attributed the decline to investment income allocation changes and tax-related items. Excluding those impacts, operating income increased 1%, supported by equity market gains and higher spread income.
Total annuity sales rose 4% year over year to $3.9 billion. Spread-based products accounted for nearly two-thirds of sales as Lincoln continued shifting away from more market-sensitive annuity products.
Net annuity outflows increased to approximately $2.2 billion from $1.7 billion a year earlier, driven primarily by traditional variable annuity products.
The life insurance segment reported operating income of $41 million, compared with a loss of $16 million a year earlier, helped by stronger alternative investment income and the impact of a captive consolidation completed in late 2025.
Life insurance sales increased 33% to $129 million, led by growth in executive benefits and accumulation products.
Group Protection operating income increased 11% to $112 million, supported by favorable life insurance claims experience. Insurance premiums rose 2% to $1.4 billion despite the lapse of a large customer account.
Retirement Plan Services operating income rose 26% to $43 million as spread expansion and equity market gains offset the impact of prior outflows. Net outflows narrowed sharply to $0.2 billion from $2.2 billion in the prior-year quarter.
Lincoln reported a net unrealized pre-tax loss of $9.1 billion on available-for-sale securities as of March 31, compared with $9.4 billion a year earlier. The company attributed the improvement primarily to tighter credit spreads.
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