Q2 2024 Lincoln National Corp Earnings Call Transcript
Key Points
- Lincoln National Corp (LNC) achieved an estimated RBC ratio of over 420%, surpassing their target and providing greater capital flexibility.
- The annuities business grew earnings by 10% year-over-year, marking its highest earnings quarter in two years.
- Group protection maintained strong sales growth across all products and segments, with earnings in line with the record prior year quarter.
- The company successfully launched a second-generation RILA product, which has shown positive market reception.
- Lincoln National Corp (LNC) made significant progress in optimizing its operating model, resulting in expense reductions and improved operational efficiency.
- The life insurance segment reported an operating loss of $35 million, impacted by the Fortitude Re transaction and below-target alternative investment income.
- The retirement plan services segment saw a year-over-year decline in operating income due to lower spread income and elevated participant-driven stable value outflows.
- Alternative investments generated a quarterly return of 1%, below the expected 2.5%, primarily due to lower merger and acquisition activity and higher interest rates.
- The group life loss ratio increased by 4 percentage points year-over-year, driven by severity volatility and higher benefit amounts in younger age populations.
- Despite strong overall performance, the company anticipates seasonal moderation in disability results and a potential impact from the timing of annual experience refunds in the second half of the year.
Good morning, and thank you for joining Lincoln Financial Group's second quarter 2024 earnings conference call. (Operator Instructions) Now I would like to turn the conference over to Senior Vice President, Head of Investor Relations, Tina Madon. Please go ahead.
Thank you. Good morning, everyone, and welcome to our second quarter earnings call. We appreciate your interest in Lincoln. Our quarterly earnings press release, earnings supplement and statistical supplement can all be found on the Investor Relations page of our website, www.lincolnfinancial.com.
These documents include reconciliations of the non-GAAP measures used on today's call, including adjusted income from operations or adjusted operating income and adjusted income from operations available to common stockholders to their most comparable GAAP measures.
Before we begin, I want to remind you that any statements made during
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