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Lincoln Financial, has announced its financial results for the second quarter of 2026, reporting a net income of $1.3 billion, compared to a net loss of $699 million in the same period a year earlier.
In Q1’26, adjusted operating income was $439 million, up from $427 million in Q2 2025. The difference between net income and adjusted operating income was primarily attributable to the non-economic impact of changes in market risk benefits.
Within its Retail Solutions segment, Annuities posted operating income of $287 million, in line with the prior-year quarter, driven by favourable equity markets and higher spread income.
This result was offset by variable annuity outflows and the $12 million impact of the previously disclosed net investment income reallocation to non-operating income, the insurance holding company noted.
Annuities reported a record-high $182 billion in ending account balances, net of reinsurance, up nearly 9% year over year. Total sales were $3.5 billion with spread-based products accounting for 63% of sales.
Life Insurance delivered operating income of $57 million, a $25-million increase from the prior-year quarter, driven by favourable mortality, partially offset by lower alternative investment income.
Driven by underlying earnings growth, the total margin rose by 160 basis points to 3.6%. Total sales reached $216 million, representing a 79% increase compared to the prior-year quarter, which reflected expansion in Core Life and Executive Benefits.
Within Workplace Solutions, Group Protection reported operating income of 147 million and a margin of 10.4%, lower than the prior-year quarter, which included a $15 million experience refund. Premiums increased 2% year over year reflecting prior-period sales.
Retirement Plan Services operating income rose 32% year over year to $49 million, driven by higher spread income and favourable equity markets. Despite $2.4 billion in net outflows, total deposits grew 4% to $3.7 billion, leading to record-high ending account balances of $131 billion.
Ellen Cooper, Chairman, President and CEO of Lincoln Financial, said: “The second quarter marked a significant step forward in the execution of our long-term strategy and reflects the strength of the franchise we have built. We delivered another quarter of year-over-year earnings growth, supported by strength across all businesses.
“Life Insurance and Retirement Plan Services reported strong earnings growth, Group Protection extended its track record of excellent operating performance, and our Annuities business remained well positioned as we continue to diversify our earnings mix toward spread-based products.”
Adding: “Our progress this quarter demonstrates the continued momentum on our strategic priorities. In addition to the prefunding amounts related to our preferred stock, available liquidity at the holding company continues to grow, positioning us well to execute on our stated priorities over the next year and create durable, long-term value for shareholders.”
The post Lincoln Financial sees strong Q2’26 with net income reaching $1.3bn appeared first on ReinsuranceNe.ws.
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