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Lincoln National’s $6 Billion Reinsurance Deal — Can It Transform The Capital Story?

The latest results from Lincoln National Corporation reflect ongoing progress in the company’s multi-year strategic transformation aimed at improving capital strength, enhancing earnings quality, and driving more sustainable growth across its businesses. In the reported quarter, adjusted operating income increased by 3% year-over-year to $439 million, marking the eighth consecutive quarter of growth. Reported net income was $1.3 billion, albeit influenced by favorable market-related items and a hedge program performing as expected. Each of Lincoln’s four core businesses showed advancement consistent with their strategic priorities. The Annuities segment delivered stable earnings of $287 million, supported by a 12% increase in account balances and a higher proportion of spread-based products—now 63% of sales—which the company views as less sensitive to market volatility. However, variable annuity outflows continued, totaling $2.7 billion, aligning with expectations amid pricing discipline.