Balanced growth drives Lincoln Financial’s improved Q3 results

Lincoln Financial missed Wall Street’s third-quarter revenue expectations, with sales falling 3% year on year to $4.47 billion. The company’s net income of $411 million, however, represents a significant turnaround from its net loss of $528 million in the same quarter of 2024.

Ellen Cooper, chairman, president, and CEO of Lincoln Financial, emphasized the broad-based momentum highlighted by Lincoln’s Q3 2025 results. 

“As we accelerate our strategic priorities, we have remained focused and consistent in advancing our vision for Lincoln. And this quarter is another point [of] proof,” said Cooper.

“We’re evolving the direction of our organization with a clear focus on increasing our risk-adjusted return on capital, reducing the volatility of our results, and growing our franchise,” she added.

Cooper went on to mention that Lincoln has made notable progress on its shift to products and segments with higher margins, greater cash flow stability, and improved capital efficiency. She also touched on the company’s emphasis on diversity. 

The company delivered net income of $411 million ($2.12 per diluted share) and adjusted operating income of $397 million ($2.04 per diluted share). 

According to the company, these results highlight robust, balanced growth across its four business segments, which include annuities, life Insurance, retirement plan services, and group protection.

Annuities generated $4.5 billion in total sales, primarily due to a diversified product mix. Life insurance earnings of $54 million were the result of stable mortality and higher investment income, with executive benefits driving sales to more than double year-over-year.

Retirement plan services saw first-year sales of $2.4 billion, an increase of almost 50% compared to the prior year. Lastly, group protection sales rose by 38% year-over-year, largely supported by broad segment and product diversification.

In Other News

• Advancing digital offerings: Lincoln is focused on improving its digital presence to deliver a more integrated customer experience through expanded technology. The company strives to leverage real-time insights that allow for data-driven decisions. 
• Prioritizing three market segments: Lincoln is continuing to execute its strategy of delivering value across local, regional, and national segments. This will transform how the company delivers reliable customer service and position it for sustainable profitable growth.

Quarterly Snapshot

• • Net income: $411 million, or $2.12 per diluted share vs. –$562 million during the same period a year ago.
  • Adjusted operating income: $397 million, or $2.04 per diluted share, compared to $358 million in the third quarter of 2024. 
  • Life insurance delivered operating income of $54 million, a $40 million improvement from the prior-year quarter, driven by stable mortality, higher investment income, and lower net G&A expenses.
  • Annuities generated operating income of $318 million, up 6% compared to the prior-year quarter and total sales of $4.5 billion, largely due to a diversified and balanced product mix.
  • Group protection sales rose by 38% year-over-year, as a result of broadly diversified segments and products.
  • Retirement plan services delivered first-year sales of $2.4B, up almost 50% year-over-year.

Management Perspective:

“Our results demonstrate the success we’re achieving by delivering a diverse product mix that meets customers where they are, across different life stages, risk tolerances, and economic environments."

Ellen Cooper, chairman, president, and CEO of Lincoln Financial

By The Numbers:

• Total Revenue: $4.55 billion (+10.8% YoY)
• Net Income (gain or loss): Net income was $411 million or $2.12 per diluted share
• Earnings Per Share (EPS): Adjusted after-tax income per diluted share was $2.04
• Group Protection Sales: $116 million (+38% YoY)
• Retirement Plan Services Sales: $2.4 billion (+50% YoY)
• Annuities Total Sales: $4.5 billion (+32% YoY)
• Life Insurance Sales: $298 million (Up more than 100% YoY)

Annuity Picture:

• Operating Income: $318 million (+6% YoY)
• Total Sales: $4.5 billion (+32% YoY)

Life Picture:

• Operating Income: $54 million (+40% YoY)
• Total Sales: $298 million (Up more than 100% YoY)

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Anna Baluch is a finance reporter and writer with more than a decade of experience. Contact her at [email protected]