Lincoln Financial Group reported net income of $688 million for the second quarter of 2025, or $3.80 per diluted share, supported by gains across multiple business lines and a more diversified earnings mix.
Adjusted operating income for the quarter was $427 million, or $2.36 per diluted share. The difference between net and adjusted results was primarily attributed to a $300 million after-tax gain tied to non-economic impacts of market risk benefit changes.
Ellen Cooper (pictured above), chairman, president and CEO of the company, said the results reflected ongoing progress in repositioning the company for longer-term growth.
“Group Protection delivered a record quarter for earnings and its highest-ever margin,” she noted. “Annuities generated its third-highest sales quarter… retirement plan services saw an increase in total deposits… life insurance delivered positive earnings.”
The company also closed a previously announced transaction with Bain Capital during the quarter, a move it said will support its broader strategic goals.
Lincoln’s retail solutions unit reported $287 million in annuities income, down 3% from a year earlier, impacted by lower variable annuity account balances. However, total annuity sales rose 5% year-over-year to $4 billion, with spread-based products making up two-thirds of sales.
Life insurance income reached $32 million, reversing a $35 million loss in the same quarter last year. The improvement was driven by favorable mortality trends and higher investment income. Sales rose 15% to $121 million.
Workplace solutions delivered gains as well. Group protection income rose 33% year-over-year to $173 million, with margins reaching 12.5%. Premiums increased 7%, while sales climbed 16% to $187 million, supported by supplemental health products and growth in the local segment.
In retirement plan services, operating income declined 8% to $37 million, affected by stable value outflows. However, total deposits grew 10% to $3.6 billion, driven by nearly 50% growth in first-year sales.
As of June 30, 2025, Lincoln reported a net unrealized pre-tax loss of $9.1 billion on available-for-sale securities, down from $10.5 billion the year before, reflecting changes in Treasury yields.
