RADNOR, PA — Lincoln Financial Group (NYSE: LNC) has reported its financial results for the first quarter of 2025, highlighting sustained performance and progress across its business segments. The company also unveiled a strategic partnership with Bain Capital, marking a significant step toward its long-term growth and transformation goals.
For the quarter ending March 31, Lincoln reported a net loss of $756 million, or $(4.41) per diluted share. Adjusted operating income available to common stockholders totaled $280 million, or $1.60 per diluted share, up from $1.97 per share in the prior year. The difference was driven by a $0.9 billion after-tax loss, impacted by changes in market risk benefits tied to equity markets and interest rates.
“Year over year, Group Protection earnings increased 26% and margin expanded 120 basis points,” noted Ellen Cooper, Chairman, President, and CEO of Lincoln Financial. “Additionally, our recently announced long-term strategic partnership with Bain Capital is a pivotal milestone in advancing Lincoln’s vision, providing differentiated access to private asset origination.”
Business Segment Highlights
- Annuities reported operating income of $290 million, essentially flat year-over-year when excluding $31 million in unfavorable prior-year items. Sales surged 33% to $3.8 billion, with spread-based products accounting for 60% of total sales.
- Life Insurance posted an operating loss of $16 million, reflecting a $19 million improvement year-over-year, driven by better mortality rates and lower expenses. Sales rose 7% to $97 million, primarily from growth in risk-sharing products.
- Group Protection generated $101 million in operating income, up 26% year-over-year. The operating margin improved by 120 basis points to 7.4%, supported by strong results in long-term disability and a 9% increase in sales, driven by supplemental health products.
- Retirement Plan Services had operating income of $34 million, slightly down by 6% due to a significant plan termination. Deposits increased 8% to $4.1 billion, reflecting higher recurring contributions.
Strategic Partnership with Bain Capital
Lincoln’s collaboration with Bain Capital, announced during the quarter, is expected to support accelerated private asset origination and foster value creation. Bain Capital’s minority investment aligns with Lincoln’s vision of strengthening its capital foundation, optimizing its operating model, and enhancing its diversified business mix.
Cooper emphasized Lincoln’s preparedness in navigating macroeconomic volatility, saying, “The strategic actions we have taken over the past several years leave us well prepared to fulfill our commitments to shareholders and policyholders despite the ongoing volatility.”
Outlook
Lincoln remains focused on advancing its strategic priorities while managing through economic uncertainty. The Bain Capital partnership represents a significant lever for growth, complementing the company’s efforts to deliver sustainable earnings and reinforce its market position.
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