Lincoln Financial generated $4.9 billion in fourth-quarter annuity sales, a 33% increase from a year earlier, pushing ending account balances to a record $175 billion and contributing to $311 million in segment operating income.
Spread-based products accounted for nearly two-thirds of total annuity sales in the quarter. Net outflows were approximately $1.2 billion, compared with $1.9 billion in the fourth quarter of 2024. Average account balances, net of reinsurance, rose 5.6% year over year to $174.7 billion.
For the full year, annuity sales totaled $17.163 billion, up 25% from $13.727 billion in 2024. Full-year annuity operating income reached $1.198 billion, compared with $1.160 billion a year earlier.
Fourth-quarter adjusted operating income available to common stockholders was $434 million, or $2.21 per diluted share, compared with $332 million, or $1.91 per diluted share, in the prior-year quarter.
Net income available to common stockholders totaled $745 million, or $3.80 per diluted share, down from $1.675 billion, or $9.63 per diluted share, a year earlier. The company said the difference between net income and adjusted operating income was primarily attributable to the non-economic impact of changes in market risk benefits.
For the full year, net income available to common stockholders was $1.086 billion, or $5.83 per diluted share, compared with $3.187 billion, or $18.41 per diluted share, in 2024. Adjusted operating income available to common stockholders rose to $1.537 billion, or $8.23 per diluted share, from $1.224 billion, or $7.07 per diluted share, in the prior year.
Lincoln reported a net unrealized loss of $7.9 billion, pre-tax, on available-for-sale securities at Dec. 31, 2025, compared with $10.3 billion a year earlier.
The annuity sales increase comes alongside broader efforts to grow spread-based earnings and expand private asset exposure.
Earlier in 2025, Bain Capital agreed to acquire a 9.9% stake in Lincoln Financial in an $825 million all-cash transaction at $44.00 per share. The agreement includes a 10-year, non-exclusive investment management relationship covering private credit, structured assets, mortgage loans and private equity.
Lincoln also launched the Lincoln Partners Group Royalty Fund with Partners Group, providing individual investors access to a cross-sector private markets royalties strategy structured as an evergreen fund.
Life insurance reported fourth-quarter operating income of $77 million, compared with a loss of $15 million in the prior-year quarter. Sales rose 19% to $142 million, and average account balances, net of reinsurance, increased 9.8% to $49.150 billion. Full-year life insurance operating income was $117 million, compared with a loss of $63 million in 2024.
Chairman,pPresident and CEO Ellen Cooper said, “Fourth-quarter results reflected continued broad-based momentum and strong execution against our strategic priorities. Each of our businesses contributed meaningfully to our performance, supported by disciplined capital management, improving profitability, and an increasingly efficient operating model.”
Group protection generated $109 million in fourth-quarter operating income, compared with $107 million a year earlier. Insurance premiums were $1.380 billion, up 8% year over year. Sales declined 16% to $391 million following a record fourth quarter in 2024. The total loss ratio was 71.4%, compared with 71.0% in the prior-year quarter.
Retirement plan services reported operating income of $46 million, up 7% year over year. Deposits increased 13% to $3.9 billion, while first-year sales rose 32% to $1.7 billion. Net outflows were $1.0 billion, compared with $0.7 billion in the prior-year quarter. Average account balances reached $123.533 billion, up 8.6% from a year earlier.
Holding company available liquidity totaled $655 million at year-end 2025, net of prefunding, compared with $463 million at the end of 2024. Lincoln reported an estimated risk-based capital ratio above 420% at December 31, 2025.
