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Lincoln National Corporation Is Fixing Its Life Business—But Will Free Cash Flow Finally Turn Sustainable?

Lincoln Financial Group reported a solid fourth quarter and full year 2025 performance, marking its sixth consecutive quarter of year-over-year adjusted operating earnings growth and its highest full-year adjusted operating income in four years. The company highlighted strategic realignment progress, operational improvements, and a more resilient capital foundation as drivers of this momentum. The company’s capital position remains strong, with levels well above established buffers and improved leverage ratios, providing flexibility in capital management. Expense discipline has been sustained through enterprise-wide efforts alongside targeted initiatives, with ongoing investments in digital capabilities, process streamlining, and distribution evolution aimed at enhancing productivity and customer service. Annuities, a key business segment, delivered strong sales growth in 2025 with total volumes up 25%, including 35% growth in Registered Index-Linked Annuities (RILAs), 11% in fixed annuities, and 27% in variable annuities.