Lincoln National Corp Q2 2024 10-Q Filing

TL;DR

**LNC Q2 10-Q OUT: Details on common & preferred stock, financial performance for H1 2024.**

AI Summary

Lincoln National Corporation filed its 10-Q for the period ending June 30, 2024, reporting on its financial performance. The filing details various financial instruments and stock types, including common stock and Series C and D preferred stock, with specific dates for reporting periods such as Q2 2024 and the first half of 2024.

Why It Matters

This filing provides investors and analysts with a detailed look at Lincoln National's financial health and operational performance during the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the specific details within can reveal significant financial health indicators or risks for the company.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 2024-08-01 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 2024-01-01 to 2024-06-30 — First Half 2024 Period (Covers the financial activity for the first six months of the year.)
• 2024-04-01 to 2024-06-30 — Q2 2024 Period (Covers the financial activity for the second quarter of the year.)

Key Players & Entities

• Lincoln National Corp (company) — Filer of the 10-Q
• 0000059558 (company) — Central Index Key for Lincoln National Corp
• 20240630 (date) — End of the reporting period
• 20240801 (date) — Filing date
• us-gaap:CommonStockMember (financial_instrument) — Type of stock reported
• us-gaap:SeriesCPreferredStockMember (financial_instrument) — Type of preferred stock reported
• us-gaap:SeriesDPreferredStockMember (financial_instrument) — Type of preferred stock reported

FAQ

Filing Documents

• lnc-20240630.htm (10-Q) — 6507KB
• exhibit102-lncx2q2024.htm (EX-10.2) — 45KB
• exhibit103-lncx2q2024.htm (EX-10.3) — 45KB
• exhibit104-lncx2q2024.htm (EX-10.4) — 79KB
• exhibit311-lnc10qx2q2024.htm (EX-31.1) — 10KB
• exhibit312-lnc10qx2q2024.htm (EX-31.2) — 9KB
• exhibit321-lnc10qx2q2024.htm (EX-32.1) — 4KB
• exhibit322-lnc10qx2q2024.htm (EX-32.2) — 4KB
• 0000059558-24-000048.txt ( ) — 30327KB
• lnc-20240630.xsd (EX-101.SCH) — 120KB
• lnc-20240630_cal.xml (EX-101.CAL) — 132KB
• lnc-20240630_def.xml (EX-101.DEF) — 863KB
• lnc-20240630_lab.xml (EX-101.LAB) — 1212KB
• lnc-20240630_pre.xml (EX-101.PRE) — 1087KB
• lnc-20240630_htm.xml (XML) — 8263KB

Financial Statements

Financial Statements: Consolidated Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023 1 Unaudited Consolidated Statements of Comprehensive Income (Loss) for the three and si x months ended June 30, 2024 and 2023 2 Unaudited Consolidated Statements of Stockholders' Equity for the three and six months ended June 30, 2024 and 2023 3 Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 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 17 Note 5 – Derivative Instruments 17 Note 6 – DAC, VOBA, DSI and DFEL 27 Note 7 – Reinsurance 30 Note 8 – MRBs 30 Note 9 – Separate Accounts 32 Note 1 0 – Policyholder Account Balances 33 Note 1 1 – Future Contract Benefits 37 Note 1 2 – D ebt 42 Note 1 3 – Fair Value of Financial Instruments 43 Note 1 4 – Contingencies and Commitments 58 Note 1 5 – Shares and Stockholders' Equity 62 Note 1 6 – Segment Information 65 Note 1 7 – Realized Gain (Loss) 68 Note 18 – Federal Income Taxes 68 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 70 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 119 Item 4.

Controls and Procedures

Controls and Procedures 119 PART II Item 1.

Legal Proceedings

Legal Proceedings 120 Item1A.

Risk Factors

Risk Factors 120 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 121 Item 5. Other Information 122 Item 6. Exhibits 122 Exhibit Index for the Report on Form 10-Q 123

Signatures

Signatures 124 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 June 30, December 31, 2024 2023 (Unaudited) ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2024 - $ 97,723 ; 2023 - $ 97,433 ; allowance for credit losses: 2024 - $ 39 ; 2023 - $ 19 ) $ 87,174 $ 88,738 Trading securities 2,201 2,359 Equity securities 295 306 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2024 - $ 258 ; 2023 - $ 288 ) 20,152 18,963 Policy loans 2,513 2,476 Derivative investments 8,608 6,474 Other investments 5,652 5,015 Total investments 126,595 124,331 Cash and invested cash 5,475 3,365 Deferred acquisition costs, value of business acquired and deferred sales inducements 12,435 12,397 Reinsurance recoverables, net of allowance for credit losses 29,126 29,843 Deposit assets, net of allowance for credit losses 29,888 28,789 Market risk benefit assets 4,754 3,894 Accrued investment income 1,135 1,082 Goodwill 1,144 1,144 Other assets 8,782 9,311 Separate account assets 165,199 158,257 Total assets $ 384,533 $ 372,413 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Policyholder account balances $ 124,113 $ 120,737 Future contract benefits 38,560 39,864 Funds withheld reinsurance liabilities 17,044 17,641 Market risk benefit liabilities 1,275 1,716 Deferred front-end loads 6,306 5,901 Payables for collateral on investments 11,114 8,105 Short-term debt 450 250 Long-term debt 5,716 5,699 Other liabilities 6,807 7,350 Separate account liabilities 165,199 158,257 Total liabilities 376,584 365,520 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 June 30, 2024, and December 31, 2023 493 493 Series D preferred stock – 20,000 shares autho

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

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View this 10-Q filing on SEC EDGAR