TSX:LFE - Post Discussion
Post by
mouserman on May 03, 2024 3:32pm
LNC , small US holding , big jump in profits
Noting that LNC reported yesterday , and had a blowout report similar to GWO...
Now up over 4 % today...
Lincoln Financial Group
Business Highlights
Our 2024 first-quarter results were driven by continued progress in each of our businesses executing on their respective strategic priorities.
- Group Protection delivered operating income of $80 million, the second highest earnings quarter in its history and an increase of almost 13% over the prior-year period. Group Protection's margin grew 60 basis points year-over-year to 6.2%, attributable to disciplined pricing and lower expenses.
- Annuities reported $259 million in operating income, down 5.5%, driven by unfavorable impacts including a balance sheet true-up in preparation for the close of the sale of the wealth management business of $19 million and tax-related impacts of $12 million. Excluding the impact of these items, Annuities generated earnings of $290 million, its highest earnings quarter in nearly two years. Ending account balances increased 5% sequentially.
- Life Insurance reported an operating loss of $(35) million, compared to a loss of $(13) million in the first quarter of 2023. The year-over-year decline included a $(28) million impact from the Fortitude Re reinsurance transaction. The year-over-year decline in sales is a result of our intentional strategic realignment to products that are expected to deliver more stable cash flows and higher risk-adjusted returns, such as accumulation products.
- Retirement Plan Services delivered operating income of $36 million, down 16% year over year, driven by lower spread income. Ending account balances were $107 billion, up 15% compared to the first quarter of 2023. First-year sales growth was robust with a 53% year-over-year increase, driving positive flows, and we continue to take actions that support long-term sustainable growth and profitability.
Earnings Summary
| | As of or For the Three Months Ended |
| | 3/31/23 | 3/31/24 |
| Net income (loss) | $ | (881 | ) | $ | 1,222 |
| Net income (loss) available to common stockholders | | (909 | ) | | 1,191 |
| Net income (loss) per diluted share available to common stockholders1 | $ | (5.37 | ) | $ | 6.93 |
| Adjusted income (loss) from operations | | 288 | | | 105 |
| Adjusted income (loss) from operations available to | | |
| common stockholders | | 260 | | | 71 |
| Adjusted income (loss) from operations per diluted share available to common stockholders1 | $ | 1.52 | | $ | 0.41 |
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