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Lincoln Financial posts $1.3 billion net income as annuity balances hit a record

The insurer said annuities delivered operating income of $287 million, while ending account balances rose nearly 9% year over year to a record $182 billion.

Monday, August 3, 2026 · Written up by our desk · Industry & Deals

Lincoln Financial reported second-quarter net income available to common stockholders of $1.3 billion, or $6.72 per diluted share, for the period ended June 30, 2026, alongside adjusted operating income of $439 million, or $2.24 per diluted share.

The company attributed the gap between net income and adjusted operating income primarily to non-economic impacts from changes in market risk benefits, which it linked to valuation and hedging positions for variable annuity and indexed annuity products rather than underlying business performance.

In its Annuities segment, operating income was $287 million, roughly in line with the prior-year quarter, as favorable equity markets and higher spread income offset variable annuity outflows. Annuity ending account balances, net of reinsurance, reached a record $182 billion, up nearly 9% year over year, though total sales fell to $3.5 billion as spread-based products made up 63% of sales.

For Life Insurance, operating income rose to $57 million, helped by favorable mortality experience, while total sales increased 79% to $216 million. Group Protection operating income was $147 million with a 10.4% operating margin, and Retirement Plan Services operating income rose to $49 million on higher spread income and favorable equity markets as ending account balances reached a record $131 billion, even as net outflows widened to $2.4 billion, according to Insurance Business.

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