RADNOR, PA — Lincoln Financial Group (NYSE: LNC) delivered robust financial results for the fourth quarter and full year of 2024, driven by record performance in its Group Protection segment and significant growth in Annuities and Retirement Plan Services. The company reported fourth-quarter net income available to common stockholders of $1.7 billion, or $9.63 per diluted share. Adjusted operating income for the quarter reached $332 million, or $1.91 per diluted share, reflecting the continued strength of its diversified product portfolio.
“Strong execution across our businesses has positioned us to deliver profitable growth while strengthening our capital foundation,” said Ellen Cooper, Chairman, President, and CEO. “Our record performance in Group Protection, combined with robust annuity sales and positive momentum in Retirement Plan Services, underscores the depth of our expertise, distribution leadership, and commitment to delivering long-term value for clients and shareholders.”
Fourth Quarter Highlights
- Group Protection saw record-breaking results with operating income of $107 million, more than double the prior year. Margins expanded by 430 basis points to 8.4%, driven by improved mortality trends, favorable long-term disability results, and strong operational execution.
- Annuities delivered an operating income of $303 million, up 14% year-over-year. Fourth-quarter sales totaled $3.7 billion, contributing to the highest full-year annuity sales since 2019. This growth was fueled by a diversified product mix meeting customer demand for spread-based solutions.
- Retirement Plan Services reported operating income of $43 million, a 13% year-over-year increase, supported by higher account balances and lower general and administrative costs. Quarterly deposits grew by 17%, while total deposits for the year surged 25%.
Full-Year 2024 Performance
Lincoln Financial’s Group Protection business achieved record full-year earnings and margins, reflecting a disciplined approach to pricing and operational efficiency. Annuity sales finished 7% higher than the prior year, supported by strong account balance growth and favorable equity markets. The Retirement Plan Services segment marked its 10th consecutive year of positive net flows, highlighting the company’s continued market competitiveness.
Life Insurance, however, experienced challenges with a fourth-quarter operating loss of $15 million, attributed to increased severity in mortality claims. Despite this, the company continues to focus on risk-sharing products in the Life segment to enhance cash flow stability and return on capital.
Strategic Momentum
Lincoln Financial’s focus on enhancing operational efficiency and prioritizing risk-sharing strategies was a central theme throughout 2024. Group Protection sales grew by 17% year-over-year, showcasing Lincoln’s ability to deliver comprehensive workplace solutions to meet evolving client needs. Meanwhile, Retirement deposits and innovation in annuity offerings highlighted Lincoln’s efforts to expand its presence in key growth markets.
Looking Ahead
Building on a foundation of record results and strategic discipline, Lincoln Financial is poised to drive further growth in 2025 and beyond. “With our strong competitive position, broad product portfolio, and operational enhancements, we are well-positioned to sustain momentum and deliver on our long-term value creation goals,” Cooper added.
By leveraging its trusted brand, financial expertise, and focus on transformational solutions, Lincoln Financial aims to address emerging market opportunities while delivering consistent returns for its shareholders.
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