Lincoln National Q2 adjusted EPS beats estimates on higher life insurance income

Overview

• US life insurance and retirement provider's Q2 revenue declined and missed analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company completed $500 mln subordinated debt issuance to support capital flexibility

Outlook

• Company did not provide specific guidance for the current or upcoming quarters

Result Drivers

• LIFE INSURANCE GROWTH - Life Insurance operating income rose $25 mln year-over-year, driven by favorable mortality and growth in Executive Benefits and Core Life sales

• GROUP PROTECTION DECLINE - Group Protection earnings fell $26 mln year-over-year, with higher disability loss ratio and changes in experience refund timing partially offset by improved life loss ratio

• ANNUITIES MIXED PERFORMANCE - Annuities operating income was flat year-over-year, as favorable equity markets and higher spread income were offset by variable annuity outflows and net investment income reallocation

Company press release: ID:nBw7hpHSWa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the life health insurance peer group is "buy."

• Wall Street's median 12-month price target for Lincoln National Corp is $45.00, about 8.6% above its July 29 closing price of $41.43

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

Reuters Recommended Reads

• July 28 - Unum Group Q2 revenue eases past estimates on premium growth

• July 27 - Principal Financial profit rises on higher premiums, strength in retirement business

• July 28 - Canada's Great-West Lifeco Q2 base EPS rises on retirement, wealth business momentum

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)