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LNC NYSE· Lincoln National Corporation
Earnings report Q4 2023

Lincoln National Corporation Reports Decreased Revenue in Latest Quarter

Segments of revenue

In the latest quarter, Lincoln National Corporation (LNC) reported a decrease in revenue across its segments. The company's U.S. net gain from operations, after-tax, was a loss of $2.48 billion, compared to a gain of $1.73 billion in the previous year. Similarly, the U.S. net income showed a loss of $2.92 billion, compared to a profit of $1.99 billion in the previous year. Dividends to the LNC holding company also decreased to $510 million, compared to $667 million in the previous year.

Strengths

Despite the decrease in revenue, LNC highlighted that it has improved its statutory capital position. This improvement is expected to be further enhanced by the sale of its wealth management business, which is set to close in the first half of 2024. The capital benefit from this transaction will be utilized to strengthen the company's statutory capital position and reduce its leverage ratio.

Challenges

LNC faced challenges in the latest quarter as it reported a significant loss in net gain from operations and net income. The decrease in revenue across its segments indicates a decline in the company's overall financial performance. Additionally, the decrease in dividends to the LNC holding company further highlights the challenges faced by the company.

Noteworthy

It is worth noting that LNC has entered into an agreement to sell its wealth management business, which is expected to have a positive impact on the company's capital position and leverage ratio. This strategic move indicates LNC's focus on optimizing its business operations and improving its financial position.

Summary

Lincoln National Corporation reported a decrease in revenue in the latest quarter, with a loss in net gain from operations and net income. However, the company has taken steps to improve its statutory capital position through the sale of its wealth management business. LNC's focus on enhancing its financial position and reducing its leverage ratio demonstrates its commitment to long-term growth and stability.

Source documents

Form 10-K  filed on Feb 22, 2024
129 pages scanned

Reference data

Company financials Q4 revenue 699M
Analyst estimates Q4 EPS missed by -17.52%
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