Lincoln Financial Group Reports Improved Q1 2025 Results
Lincoln Financial Group reported its first-quarter 2025 financial results, posting an adjusted operating income of $280 million, or $1.60 per diluted share. The company’s life insurance segment showed significant improvement, with a $16 million loss from operations in Q1 2025 compared to a $35 million loss in the same period last year. This improvement was driven by better mortality experience and lower general and administrative expenses.
The annuities business recorded operating income of $290 million for the quarter, consistent with Q1 2024 when adjusted for prior-year unfavorable impacts. Annuity sales totaled $3.8 billion, a 33% increase from the previous year, with spread-based products making up approximately 60% of total annuity sales.
Lincoln’s group protection business posted operating income of $101 million for Q1 2025, a 26% increase from the same quarter last year. The operating margin rose 120 basis points to 7.4%, supported by favorable outcomes in long-term disability claims. Premiums increased 7% year over year, driven by persistency and previous-year sales.
Retirement plan services generated $34 million in operating income, down 6% from Q1 2024 due to the impact of a plan termination. Excluding this event, earnings were steady compared to the prior year. Total deposits rose 8% to $4.1 billion, supported by higher recurring contributions.
CEO Ellen Cooper stated, “Against the current backdrop of macroeconomic uncertainty, the strategic actions we have taken over the past several years leave us well prepared to fulfill our commitments to shareholders and policyholders despite ongoing volatility.”
