Lincoln National Corp Q3 2024 10-Q Filing

TL;DR

LNC's Q3 2024 10-Q is in. Check preferred stock details and quarterly performance.

AI Summary

Lincoln National Corporation filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including information on its common stock and preferred stock series C and D as of September 30, 2024, and December 31, 2023. It also covers the quarterly periods from July 1, 2024, to September 30, 2024, and July 1, 2023, to September 30, 2023, as well as year-to-date periods.

Why It Matters

This filing provides investors with a detailed look at Lincoln National's financial health and operational performance for the third quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: medium — The filing contains detailed financial data and disclosures, which can reveal potential risks or opportunities for investors.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2023-12-31 — Previous Year End Date (Provides a comparison point for financial performance and position.)
• 2024-01-01 — Year-to-Date Start Date (Marks the beginning of the current fiscal year for reporting cumulative figures.)
• 2023-01-01 — Prior Year Year-to-Date Start Date (Used for year-over-year comparisons of financial performance.)
• 2024-07-01 — Q3 2024 Start Date (Beginning of the third fiscal quarter for the current year.)
• 2023-07-01 — Q3 2023 Start Date (Beginning of the third fiscal quarter for the prior year.)

Key Players & Entities

• LINCOLN NATIONAL CORP (company) — Filer
• 0000059558 (company) — Central Index Key
• 20240930 (date) — Period of Report
• 20241031 (date) — Filed as of Date
• 150 N RADNOR CHESTER RD (address) — Business Address
• RADNOR (location) — Business City
• PA (location) — Business State
• 19087 (zip_code) — Business Zip
• 4845831400 (phone_number) — Business Phone

FAQ

Filing Documents

• lnc-20240930.htm (10-Q) — 6650KB
• exhibit102-lnc10qx3q2024.htm (EX-10.2) — 36KB
• exhibit103-lnc10qx3q2024.htm (EX-10.3) — 5KB
• exhibit311-lnc10qx3q2024.htm (EX-31.1) — 10KB
• exhibit312-lnc10qx3q2024.htm (EX-31.2) — 9KB
• exhibit321-lnc10qx3q2024.htm (EX-32.1) — 4KB
• exhibit322-lnc10qx3q2024.htm (EX-32.2) — 4KB
• 0000059558-24-000065.txt ( ) — 30893KB
• lnc-20240930.xsd (EX-101.SCH) — 123KB
• lnc-20240930_cal.xml (EX-101.CAL) — 136KB
• lnc-20240930_def.xml (EX-101.DEF) — 877KB
• lnc-20240930_lab.xml (EX-101.LAB) — 1241KB
• lnc-20240930_pre.xml (EX-101.PRE) — 1107KB
• lnc-20240930_htm.xml (XML) — 8481KB

Financial Statements

Financial Statements: Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 1 Unaudited Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2024 and 2023 2 Unaudited Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023 3 Unaudited Consolidated Statements of Cash Flows for the nine months ended September 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 43 Note 1 3 – Fair Value of Financial Instruments 44 Note 1 4 – Contingencies and Commitments 58 Note 1 5 – Shares and Stockholders' Equity 63 Note 1 6 – Segment Information 66 Note 1 7 – Realized Gain (Loss) 69 Note 18 – Federal Income Taxes 70 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 71 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 123 Item 4.

Controls and Procedures

Controls and Procedures 123 PART II Item 1.

Legal Proceedings

Legal Proceedings 124 Item1A.

Risk Factors

Risk Factors 124 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 125 Item 5. Other Information 125 Item 6. Exhibits 125 Exhibit Index for the Report on Form 10-Q 126

Signatures

Signatures 127 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 September 30, December 31, 2024 2023 (Unaudited) ASSETS Investments: Fixed maturity available-for-sale securities, at fair value (amortized cost: 2024 - $ 97,688 ; 2023 - $ 97,433 ; allowance for credit losses: 2024 - $ 48 ; 2023 - $ 19 ) $ 90,682 $ 88,738 Trading securities 2,206 2,359 Equity securities 293 306 Mortgage loans on real estate, net of allowance for credit losses (portion at fair value: 2024 - $ 263 ; 2023 - $ 288 ) 20,856 18,963 Policy loans 2,510 2,476 Derivative investments 9,522 6,474 Other investments 5,743 5,015 Total investments 131,812 124,331 Cash and invested cash 6,013 3,365 Deferred acquisition costs, value of business acquired and deferred sales inducements 12,475 12,397 Reinsurance recoverables, net of allowance for credit losses 29,233 29,843 Deposit assets, net of allowance for credit losses 30,501 28,789 Market risk benefit assets 4,565 3,894 Accrued investment income 1,160 1,082 Goodwill 1,144 1,144 Other assets 8,454 9,311 Separate account assets 171,483 158,257 Total assets $ 396,840 $ 372,413 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Policyholder account balances $ 125,968 $ 120,737 Future contract benefits 41,169 39,864 Funds withheld reinsurance liabilities 17,595 17,641 Market risk benefit liabilities 1,272 1,716 Deferred front-end loads 6,517 5,901 Payables for collateral on investments 10,570 8,105 Short-term debt 300 250 Long-term debt 5,897 5,699 Other liabilities 7,056 7,350 Separate account liabilities 171,483 158,257 Total liabilities 387,827 365,520 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 September 30, 2024, and December 31, 2023 493 493 Series D preferred stock – 20,000 sh

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