Lincoln National Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Lincoln National Corp's Q1 2024 10-Q filing provides a detailed financial snapshot, including equity, retained earnings, and investment portfolio data.</b>

AI Summary

LINCOLN NATIONAL CORP (LNC-PD) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Lincoln National Corp filed a 10-Q report for the period ending March 31, 2024. The filing details financial information for the first quarter of 2024. Key financial statement components like Common Stock, Preferred Stock, Retained Earnings, and Accumulated Other Comprehensive Income are reported. The report includes data on various investment securities as of March 31, 2024, and December 31, 2023. Specific preferred stock series (Series C and Series D) are detailed for the reporting periods.

Why It Matters

For investors and stakeholders tracking LINCOLN NATIONAL CORP, this filing contains several important signals. This filing is crucial for investors and analysts to assess Lincoln National Corp's financial health and performance in the first quarter of 2024. Understanding the changes in equity, retained earnings, and the composition of their investment portfolio offers insights into the company's financial strategy and risk exposure.

Risk Assessment

Risk Level: medium — LINCOLN NATIONAL CORP shows moderate risk based on this filing. The filing is a standard quarterly report, but the financial services industry is subject to regulatory and market risks that could impact Lincoln National Corp's performance.

Analyst Insight

Review the detailed financial statements and notes within the 10-Q to understand the drivers of Lincoln National Corp's Q1 2024 performance and identify any emerging trends or risks.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-02 — Filing Date (Filed As Of Date)
• 2024-01-01 — Quarter Start Date (Reporting period)
• 2023-12-31 — Prior Year End Date (Comparison date for equity and investments)

Key Players & Entities

• LINCOLN NATIONAL CORP (company) — Filer name
• 0000059558 (company) — Central Index Key
• PA (location) — State of incorporation
• IN (location) — State of incorporation
• 19087 (location) — Business address ZIP code
• 4845831400 (phone) — Business phone number

FAQ

Industry Context

Lincoln National Corp operates in the life insurance industry, a sector characterized by long-term financial commitments and sensitivity to economic conditions.

Regulatory Implications

As a publicly traded insurance company, Lincoln National Corp is subject to regulations from state insurance departments and federal bodies like the SEC.

What Investors Should Do

1. Analyze the balance sheet for changes in equity and liabilities.
2. Examine the details of investment securities to understand asset allocation and potential market risks.
3. Review any disclosures related to operational or strategic changes during the quarter.

Key Dates

• 2024-03-31: Quarterly Period End — Financial data reported as of this date.
• 2024-05-02: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing the initial quarterly financial update compared to the year-end 2023 report.

Filing Documents

• lnc-20240331.htm (10-Q) — 5402KB
• exhibit101-lncx1q2024.htm (EX-10.1) — 46KB
• exhibit102-lncx1q2024.htm (EX-10.2) — 46KB
• exhibit103-lncx1q2024.htm (EX-10.3) — 46KB
• exhibit104-lncx1q2024.htm (EX-10.4) — 46KB
• exhibit311-lnc10qx1q2024.htm (EX-31.1) — 10KB
• exhibit312-lnc10qx1q2024.htm (EX-31.2) — 12KB
• exhibit321-lnc10qx1q2024.htm (EX-32.1) — 4KB
• exhibit322-lnc10qx1q2024.htm (EX-32.2) — 4KB
• 0000059558-24-000024.txt (&nbsp;) — 26259KB
• lnc-20240331.xsd (EX-101.SCH) — 117KB
• lnc-20240331_cal.xml (EX-101.CAL) — 131KB
• lnc-20240331_def.xml (EX-101.DEF) — 803KB
• lnc-20240331_lab.xml (EX-101.LAB) — 1214KB
• lnc-20240331_pre.xml (EX-101.PRE) — 1030KB
• lnc-20240331_htm.xml (XML) — 6741KB

Financial Statements

Financial Statements: Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 1 Unaudited Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023 2 Unaudited Consolidated Statements of Stockholders' Equity for the three months ended March 31, 2024 and 2023 3 Unaudited Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 4 Notes to Unaudited Consolidated Financial Statements: Note 1 – Nature of Operations and Basis of Presentation 5 Note 2 – New Accounting Standards 6 Note 3 – Investments 7 Note 4 – Variable Interest Entities 16 Note 5 – Derivatives 17 Note 6 – DAC, VOBA, DSI and DFEL 26 Note 7 – Reinsurance 29 Note 8 – MRBs 29 Note 9 – Separate Accounts 31 Note 1 0 – Policyholder Account Balances 32 Note 1 1 – Future Contract Benefits 36 Note 1 2 – D ebt 41 Note 1 3 – Fair Value of Financial Instruments 42 Note 1 4 – Contingencies and Commitments 54 Note 1 5 – Shares and Stockholders' Equity 58 Note 1 6 – Segment Information 61 Note 1 7 – Realized Gain (Loss) 64 Note 18 – Federal Income Taxes 64 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 65 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 112 Item 4.

Controls and Procedures

Controls and Procedures 112 PART II Item 1.

Legal Proceedings

Legal Proceedings 112 Item1A.

Risk Factors

Risk Factors 113 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 113 Item 5. Other Information 113 Item 6. Exhibits 113 Exhibit Index for the Report on Form 10-Q 114

Signatures

Signatures 115 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements LINCOLN NATIONAL CORPORATION CONSOLIDATED BALANCE SHEETS (in millions, except share data) As of As of March 31, December 31, 2024 2023 (Unaudited) ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2024 - $ 97,546 ; 2023 - $ 97,433 ; allowance for credit losses: 2024 - $ 21 ; 2023 - $ 19 ) $ 87,764 $ 88,738 Trading securities 2,227 2,359 Equity securities 319 306 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2024 - $ 289 ; 2023 - $ 288 ) 19,266 18,963 Policy loans 2,476 2,476 Derivative investments 8,394 6,474 Other investments 5,256 5,015 Total investments 125,702 124,331 Cash and invested cash 4,122 3,365 Deferred acquisition costs, value of business acquired and deferred sales inducements 12,405 12,397 Reinsurance recoverables, net of allowance for credit losses 29,461 29,843 Deposit assets, net of allowance for credit losses 28,904 28,789 Market risk benefit assets 4,878 3,894 Accrued investment income 1,127 1,082 Goodwill 1,144 1,144 Other assets 9,413 9,311 Separate account assets 166,225 158,257 Total assets $ 383,381 $ 372,413 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Policyholder account balances $ 122,300 $ 120,737 Future contract benefits 38,848 39,864 Funds withheld reinsurance liabilities 17,486 17,641 Market risk benefit liabilities 1,266 1,716 Deferred front-end loads 6,099 5,901 Payables for collateral on investments 10,117 8,105 Short-term debt 503 250 Long-term debt 5,726 5,699 Other liabilities 7,265 7,350 Separate account liabilities 166,225 158,257 Total liabilities 375,835 365,520 Contingencies and Commitments (See Note 14 ) Stockholders' Equity Preferred stock – 10,000,000 shares authorized: Series C preferred stock – 20,000 shares authorized, issued and outstanding as of March 31, 2024, and December 31, 2023 493 493 Series D preferred stock – 20,000 shares aut

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Nature of Operations and Basis of Presentation Nature of Operations Lincoln National Corporation and its subsidiaries ("LNC" or the "Company," which also may be referred to as "we," "our" or "us") operate multiple insurance businesses through four business segments: Annuities, Life Insurance, Group Protection and Retirement Plan Services. In addition, we include financial data for operations that are not directly related to our business segments in Other Operations. The collective group of businesses uses "Lincoln Financial Group" as its marketing identity. Through our business segments, we sell a wide range of wealth accumulation, wealth protection, group protection and retirement income products and solutions. These products primarily include variable annuities, fixed annuities (including indexed), registered index-linked annuities ("RILA"), universal life insurance ("UL"), variable universal life insurance ("VUL"), linked-benefit UL and VUL, indexed universal life insurance ("IUL"), term life insurance, group life, disability and dental and employer-sponsored retirement plans and services. For more information on our segments and the products and solutions we provide, see Note 16 . Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles ("GAAP") for interim financial information and with the instructions for the Securities and Exchange Commission ("SEC") Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 ("2023 Form 10-K"), should be read in connection with the reading of these interi

View Full Filing

View this 10-Q filing on SEC EDGAR