[August 02, 2017] |
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Lincoln Financial Group Reports Second Quarter 2017 Results
Lincoln Financial Group (NYSE: LNC) today reported net income for the
second quarter of 2017 of $411 million, or $1.81 per diluted share
available to common stockholders, compared to net income in the second
quarter of 2016 of $325 million, or $1.35 per diluted share available to
common stockholders. Second quarter income from operations was $419
million, or $1.85 per diluted share available to common stockholders,
compared to $373 million, or $1.56 per diluted share available to common
stockholders, in the second quarter of 2016.
"The second quarter continued to build on the strong top and bottom-line
results we have reported in recent quarters, with EPS up 19% over the
prior year," said Dennis R. Glass, president and CEO of Lincoln
Financial Group. "We have positive sales momentum and are generating
attractive new business returns, which when combined with expense
discipline and capital management flexibility, will enable us to
continue our long-term track record of financial success and stability."
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As of or For the
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As of or For the
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Quarter Ended
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Six Months Ended
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June 30
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June 30
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(in millions, except per share data)
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2017
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2016
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2017
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2016
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Net Income (Loss)
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$
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411
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$
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325
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$
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846
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$
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536
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Net Income (Loss) Available to Common Stockholders
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412
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325
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847
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529
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Net Income (Loss) per Diluted Share Available to Common Stockholders
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1.81
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1.35
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3.70
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2.18
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Revenues
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3,577
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3,307
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7,077
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6,551
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Income (Loss) from Operations
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419
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373
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860
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690
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Income (Loss) from Operations per Diluted Share Available to
Common Stockholders
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1.85
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1.56
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3.77
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2.82
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Average Diluted Shares
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227.3
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239.9
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228.7
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242.5
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ROE, including AOCI (Net Income)
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10.6
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%
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8.5
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%
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11.2
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%
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7.3
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%
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ROE, excluding AOCI (Income from Operations)
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12.7
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%
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11.7
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%
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13.1
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%
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10.8
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%
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Book Value per Share, Including AOCI
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$
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71.98
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$
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68.39
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$
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71.98
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$
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68.39
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Book Value per Share, Excluding AOCI
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59.78
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54.67
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59.78
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54.67
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Operating Highlights - Second Quarter 2017
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Each segment reported growth in income from operations compared to the
prior year
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Operating revenues of $3.6 billion, up 7% year over year
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Variable annuity sales of $1.6 billion, up 11% sequentially
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Retirement Plan Services net flows of $395 million compared to $4
million in the prior year
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Total life insurance sales of $197 million, up 14% year over year
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Group Protection total non-medical loss ratio of 66%, a 640 basis
point improvement year over year
There were no notable items in the current quarter or in the prior-year
quarter.
Second Quarter 2017 - Segment Results
Annuities
The Annuities segment reported income from operations of $251 million in
the quarter versus $235 million in the prior-year quarter. The 7%
increase in earnings is primarily driven by higher fee income as average
account values grew 6% to $130 billion.
Total annuity deposits in the second quarter of $2.0 billion remained
relatively flat sequentially as an 11% increase in variable annuity
deposits was offset by a 33% decline in fixed annuity deposits due to
lower interest rates. Total annuity deposits decreased 6% versus the
prior-year quarter as fixed annuity deposits declined while variable
annuity deposits remained stable at $1.6 billion.
Retirement Plan Services
Retirement Plan Services reported income from operations of $37 million,
up 19% compared to the prior-year quarter. The increase in earnings is
attributable to growth in fee income driven by higher average account
values and higher spread income.
Total deposits for the quarter of $2.0 billion were up 19% versus the
prior-year period driven by a 71% increase in first-year sales and
continued growth in recurring deposits.
Net flows totaled $395 million in the quarter compared to $4 million in
the prior-year quarter. Over the past twelve months, net flows have
totaled $994 million, and when combined with favorable market
performance, average account values increased 12% to $62 billion.
Life Insurance
Life Insurance reported income from operations of $133 million, up 11%
versus the prior-year quarter. The increase in earnings is primarily
attributable to in-force growth and higher spread income.
Total life insurance sales in the quarter were $197 million, a 14%
increase from the prior-year quarter driven by strong sales growth in MoneyGuard®
and VUL.
Total Life Insurance in-force of $705 billion grew 4% over the
prior-year quarter, and average account values of $47 billion increased
6% over the prior-year quarter.
Group Protection
Group Protection income from operations was $35 million in the quarter,
up 133% versus the prior-year period. The increase in earnings was
driven by an improvement in the non-medical loss ratio and premium
growth. The total non-medical loss ratio was 66% in the current quarter
compared to 72% in the prior-year period.
Group Protection sales of $88 million increased 24% from the prior-year
period with growth across all product lines and in both employer and
employee-paid sales.
Non-medical net earned premiums were $494 million in the second quarter,
up 3% from the prior-year quarter.
Other Operations
Other Operations reported a loss from operations of $37 million versus a
loss of $28 million in the prior-year quarter. The current quarter
included a $9 million after-tax expense related to the strategic
digitization initiative.
Realized Gains and Losses / Impacts to Net Income
Realized gains/losses (after-tax) in the quarter included:
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A $13 million net loss from general account investments compared to a
$47 million net loss in the prior-year quarter.
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A $9 million variable annuity net derivative gain in the quarter
compared to a $1 million net gain in the prior-year quarter.
Unrealized Gains and Losses
The company reported a net unrealized gain of $6.8 billion, pre-tax, on
its available-for-sale securities at June 30, 2017. This compares to a
net unrealized gain of $8.4 billion at June 30, 2016, with the
year-over-year decrease primarily driven by higher interest rates.
Capital
During the quarter, the company repurchased 3.0 million shares of stock
at a cost of $200 million. The quarter's average diluted share count of
227.3 million was down 5% from the second quarter of 2016, the result of
repurchasing 13.4 million shares of stock at a cost of $804 million
since June 30, 2016.
Book Value
As of June 30, 2017, book value per share, including accumulated other
comprehensive income ("AOCI"), of $71.98 increased 5% from a year ago.
Book value per share, excluding AOCI, of $59.78 increased 9% from the
prior-year period.
The tables attached to this release define and reconcile the non-GAAP
measures income from operations, operating return on equity ("ROE") and
book value per share, excluding AOCI to net income, ROE and book value
per share, including AOCI calculated in accordance with GAAP.
This press release may contain statements that are forward-looking, and
actual results may differ materially, especially given the current
economic and capital market conditions. Please see the Forward Looking
Statements - Cautionary Language that follow for additional factors that
may cause actual results to differ materially from our current
expectations.
For other financial information, please refer to the company's second
quarter 2017 statistical supplement available on its website, www.lfg.com/earnings.
Lincoln Financial Group will discuss the company's second quarter
results with investors in a conference call beginning at 10:00 a.m.
Eastern Time on Thursday, August 3, 2017. Interested persons are invited
to listen through the internet. Please go to www.lfg.com/webcast
at least fifteen minutes prior to the event to register, download and
install any necessary streaming media software. Interested persons may
also listen to the call by dialing the following numbers:
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Dial:
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(866) 394-4575 (Domestic)
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(678) 509-7536 (International)
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Ask for the Lincoln National Conference Call.
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Audio replay will begin by 1:00 p.m. Eastern Time on August 3, 2017, and
it will remain available through 1:00 p.m. Eastern Time on August 10,
2017. To access the re-broadcast:
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(855) 859-2056 (Domestic)
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(404) 537-3406 (International)
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Enter conference code: 33470613
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A replay of the call will also be available by 1:00 p.m. Eastern Time on
August 3, 2017 at www.lfg.com/webcast.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower
people to take charge of their financial lives with confidence and
optimism. Today, more than 17 million customers trust our retirement,
insurance and wealth protection expertise to help address their
lifestyle, savings and income goals, as well as to guard against
long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln
Financial Group is the marketing name for Lincoln National Corporation
(NYSE:LNC) and its affiliates. The company had $241 billion in assets
under management as of June 30, 2017. Learn more at: www.LincolnFinancial.com.
Find us on Facebook,
Twitter,
LinkedIn,
and Instagram.
To sign up for email alerts, please visit our Newsroom at http://newsroom.lfg.com.
Explanatory Notes on Use of Non-GAAP Measures
Management believes that income from operations, operating return on
equity and operating revenues better explain the results of the
company's ongoing businesses in a manner that allows for a better
understanding of the underlying trends in the company's current business
because the excluded items are unpredictable and not necessarily
indicative of current operating fundamentals or future performance of
the business segments, and, in most instances, decisions regarding these
items do not necessarily relate to the operations of the individual
segments. Management also believes that using book value excluding
accumulated other comprehensive income (AOCI) enables investors to
analyze the amount of our net worth that is primarily attributable to
our business operations. Book value per share excluding AOCI is useful
to investors because it eliminates the effect of items that can
fluctuate significantly from period to period, primarily based on
changes in interest rates.
For the historical periods, reconciliations of non-GAAP measures used in
this press release to the most directly comparable GAAP measure may be
included in this Appendix to the press release and/or are included in
the Statistical Reports for the corresponding periods contained in the
Earnings section of the Investor Relations page on our website: www.lfg.com/investor.
Definitions of Non-GAAP Measures Used in this
Press Release
Income (loss) from operations, operating revenues and operating return
on equity (including and excluding average goodwill within average
equity), excluding AOCI, using annualized income (loss) from operations
are financial measures we use to evaluate and assess our results. Income
(loss) from operations, operating revenues and operating return on
equity ("ROE"), as used in the earnings release, are non-GAAP financial
measures and do not replace GAAP revenues, net income (loss) and ROE,
the most directly comparable GAAP measures.
Income (Loss) from Operations
We exclude the after-tax effects of the following items from GAAP net
income (loss) to arrive at income (loss) from operations:
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Realized gains and losses associated with the following ("excluded
realized gain (loss)"):
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Sale or disposal of securities;
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Impairments of securities;
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Change in the fair value of derivative investments, embedded
derivatives within certain reinsurance arrangements and our
trading securities;
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Change in the fair value of the derivatives we own to hedge our
guaranteed death benefit ("GDB") riders within our variable
annuities, which is referred to as "GDB derivatives results";
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Change in the fair value of the embedded derivatives of our
guaranteed living benefit ("GLB") riders within our variable
annuities accounted for under the Derivatives and Hedging and the
Fair Value Measurements and Disclosures Topics of the Financial
Accounting Standards Board ("FASB") Accounting Standards
Codification ("ASC") ("embedded derivative reserves"), net of the
change in the fair value of the derivatives we own to hedge the
changes in the embedded derivative reserves, the net of which is
referred to as "GLB net derivative results";
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Changes in the fair value of the embedded derivative liabilities
related to index call options we may purchase in the future to
hedge contract holder index allocations applicable to future reset
periods for our indexed annuity products accounted for under the
Derivatives and Hedging and the Fair Value Measurements and
Disclosures Topics of the FASB ASC ("indexed annuity
forward-starting option");
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Change in reserves accounted for under the Financial Services -
Insurance - Claim Costs and Liabilities for Future Policy Benefits
Subtopic of the FASB ASC resulting from benefit ratio unlocking on our
GDB and GLB riders ("benefit ratio unlocking");
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Income (loss) from the initial adoption of new accounting standards;
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Income (loss) from reserve changes (net of related amortization) on
business sold through reinsurance;
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Gain (loss) on early extinguishment of debt;
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Losses from the impairment of intangible assets;
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Income (loss) from discontinued operations.
Operating Revenues
Operating revenues represent GAAP revenues excluding the pre-tax effects
of the following items, as applicable:
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Excluded realized gain (loss);
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Amortization of deferred front-end loads ("DFEL") arising from changes
in GDB and GLB benefit ratio unlocking;
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Amortization of deferred gains arising from the reserve charges on
business sold through reinsurance;
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Revenue adjustments from the initial adoption of new accounting
standards.
Operating Return on Equity
Return on equity measures how efficiently we generate profits from the
resources provided by our net assets.
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It is calculated by dividing annualized income (loss) from operations
by average equity, excluding accumulated other comprehensive income
(loss) ("AOCI").
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Management evaluates return on equity by both including and excluding
average goodwill within average equity.
Definition of Notable Items
Income (loss) from operations, excluding notable items is a non-GAAP
measure that excludes items which, in management's view, do not reflect
the company's normal, ongoing operations.
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We believe highlighting notable items included in income (loss) from
operations enables investors to better understand the fundamental
trends in its results of operations and financial condition.
Book Value Per Share Excluding AOCI
Book value per share excluding AOCI is calculated based upon a non-GAAP
financial measure.
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It is calculated by dividing (a) stockholders' equity excluding AOCI
by (b) common shares outstanding.
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We provide book value per share excluding AOCI to enable investors to
analyze the amount of our net worth that is primarily attributable to
our business operations.
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Management believes book value per share excluding AOCI is useful to
investors because it eliminates the effect of items that can fluctuate
significantly from period to period, primarily based on changes in
interest rates.
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Book value per share is the most directly comparable GAAP measure.
Special Note
Sales
Sales as reported consist of the following:
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MoneyGuard® - 15% of total expected premium deposits;
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Universal life (UL), indexed universal life (IUL), variable universal
life (VUL) - first year commissionable premiums plus 5% of excess
premiums received;
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Executive Benefits - single premium bank-owned UL and VUL, 15% of
single premium deposits, and corporate owned UL and VUL, first year
commissionable premiums plus 5% of excess premium received;
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Term - 100% of annualized first year premiums;
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Annuities - deposits from new and existing customers; and
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Group Protection - annualized first year premiums from new policies.
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Lincoln National Corporation
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Reconciliation of Net Income to Income from Operations
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(in millions, except per share data)
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For the Quarter Ended
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For the Six Months Ended
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June 30,
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June 30,
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2017
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2016
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2017
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2016
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Total Revenues
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$
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3,577
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$
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3,307
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$
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7,077
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$
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6,551
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Less:
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Excluded realized gain (loss)
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(52
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)
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(89
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)
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(132
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)
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(245
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)
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Amortization of DFEL on benefit ratio unlocking
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-
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-
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2
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-
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Amortization of deferred gains arising from reserve changes on
business sold through reinsurance
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-
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1
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1
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1
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Total Operating Revenues
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$
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3,629
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$
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3,395
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$
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7,206
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$
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6,795
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Net Income (Loss) Available to Common Stockholders - Diluted
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$
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412
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$
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325
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$
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847
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$
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529
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Less:
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Adjustment for deferred units of LNC stock in our deferred
compensation plans (1)
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1
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-
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1
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(7
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)
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Net Income (Loss)
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411
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325
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846
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536
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Less (2):
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Excluded realized gain (loss)
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(34
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)
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(57
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)
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(85
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)
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(159
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)
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Benefit ratio unlocking
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26
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9
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71
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4
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Income (loss) from reserve changes (net of related amortization)
on business sold through reinsurance
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-
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-
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-
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1
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Income (Loss) from Operations
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$
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419
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$
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373
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$
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860
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$
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690
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|
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Earnings (Loss) Per Common Share -- Diluted
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Net income (loss)
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$
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1.81
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$
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1.35
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$
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3.70
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$
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2.18
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Income (loss) from operations
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1.85
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1.56
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3.77
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2.82
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Average Stockholders' Equity
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Average equity, including average AOCI
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$
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15,485
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$
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15,289
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$
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15,105
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$
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14,713
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Average AOCI
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2,279
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|
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2,563
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1,993
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|
|
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1,975
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Average equity, excluding AOCI
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13,206
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12,726
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13,112
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12,738
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Average goodwill
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2,273
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|
|
2,273
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2,273
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2,273
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Average equity, excluding AOCI and goodwill
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$
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10,933
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$
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10,453
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|
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$
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10,839
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$
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10,465
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|
|
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|
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Return on Equity, Including AOCI
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Net income (loss) with average equity including goodwill
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10.6
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%
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8.5
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%
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11.2
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%
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7.3
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%
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Return on Equity, Excluding AOCI
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|
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Income (loss) from operations with average equity including
goodwill
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12.7
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%
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11.7
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%
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13.1
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%
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|
10.8
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%
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Income (loss) from operations with average equity excluding
goodwill
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15.3
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%
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14.3
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%
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15.9
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%
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13.2
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%
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(1)
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The numerator used in the calculation of our diluted EPS is adjusted
to remove the mark-to-market adjustment for deferred units of LNC
stock in our deferred compensation plans if the effect of equity
classification would result in a more dilutive EPS.
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(2)
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We use our prevailing federal income tax rate of 35% while taking
into account any permanent differences for events recognized
differently in our financial statements and federal income tax
returns when reconciling our non-GAAP measures to the most
comparable GAAP measure.
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Lincoln National Corporation
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Reconciliation of Notable Items
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For the Quarter Ended
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For the Six Months Ended
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June 30,
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June 30,
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2017
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2016
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2017
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2016
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Operating EPS, as reported
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$
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1.85
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$
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1.56
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$
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3.77
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$
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2.82
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Notable items:
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Taxes
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-
|
|
|
-
|
|
|
0.19
|
|
|
-
|
Total notable items
|
|
|
-
|
|
|
-
|
|
|
0.19
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating EPS, excluding notable items
|
|
$
|
1.85
|
|
$
|
1.56
|
|
$
|
3.58
|
|
$
|
2.82
|
|
|
|
|
|
|
|
Lincoln National Corporation
|
Reconciliation of Book Value per Share
|
|
|
|
|
|
|
|
|
|
As of June 30,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share, including AOCI
|
|
|
|
|
|
|
|
$
|
71.98
|
|
$
|
68.39
|
Per share impact of AOCI
|
|
|
|
|
|
|
|
|
12.20
|
|
|
13.72
|
Book value per share, excluding AOCI
|
|
|
|
|
|
|
|
|
59.78
|
|
|
54.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lincoln National Corporation
|
Digest of Earnings
|
|
(in millions, except per share data)
|
|
|
|
|
For the Quarter Ended
|
|
|
June 30,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
3,577
|
|
$
|
3,307
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
$
|
411
|
|
$
|
325
|
|
Adjustment for deferred units of LNC stock in our deferred
compensation plans (1)
|
|
|
1
|
|
|
-
|
|
Net Income (Loss) Available to Common Stockholders -- Diluted
|
|
$
|
412
|
|
$
|
325
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Common Share - Basic
|
|
$
|
1.84
|
|
$
|
1.37
|
|
Earnings (Loss) Per Common Share - Diluted
|
|
|
1.81
|
|
|
1.35
|
|
|
|
|
|
|
|
|
Average Shares - Basic
|
|
|
223,555,299
|
|
|
236,463,183
|
|
Average Shares - Diluted
|
|
|
227,313,882
|
|
|
239,896,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended
|
|
|
June 30,
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
7,077
|
|
$
|
6,551
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
$
|
846
|
|
$
|
536
|
|
Adjustment for deferred units of LNC stock in our deferred
compensation plans (1):
|
|
|
1
|
|
|
(7
|
)
|
Net Income (Loss) Available to Common Stockholders -- Diluted
|
|
$
|
847
|
|
$
|
529
|
|
|
|
|
|
|
|
|
Earnings (Loss) Per Common Share - Basic
|
|
$
|
3.77
|
|
$
|
2.24
|
|
Earnings (Loss) Per Common Share - Diluted
|
|
|
3.70
|
|
|
2.18
|
|
|
|
|
|
|
|
|
Average Shares - Basic
|
|
|
224,581,848
|
|
|
239,069,774
|
|
Average Shares -- Diluted
|
|
|
228,702,989
|
|
|
242,496,422
|
|
|
|
|
|
|
|
|
|
(1)
|
|
The numerator used in the calculation of our diluted EPS is adjusted
to remove the mark-to-market adjustment for deferred units of LNC
stock in our deferred compensation plans if the effect of equity
classification would be more dilutive to our diluted EPS.
|
|
|
|
Forward Looking Statements - Cautionary Language
Certain statements made in this press release and in other written or
oral statements made by Lincoln or on Lincoln's behalf are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking
statement is a statement that is not a historical fact and, without
limitation, includes any statement that may predict, forecast, indicate
or imply future results, performance or achievements, and may contain
words like: "believe," "anticipate," "expect," "estimate," "project,"
"will," "shall" and other words or phrases with similar meaning in
connection with a discussion of future operating or financial
performance. In particular, these include statements relating to future
actions, trends in Lincoln's businesses, prospective services or
products, future performance or financial results, and the outcome of
contingencies, such as legal proceedings. Lincoln claims the protection
afforded by the safe harbor for forward-looking statements provided by
the PSLRA.
Forward-looking statements involve risks and uncertainties that may
cause actual results to differ materially from the results contained in
the forward-looking statements. Risks and uncertainties that may cause
actual results to vary materially, some of which are described within
the forward-looking statements, include, among others:
-
Deterioration in general economic and business conditions that may
affect account values, investment results, guaranteed benefit
liabilities, premium levels, claims experience and the level of
pension benefit costs, funding and investment results;
-
Adverse global capital and credit market conditions could affect our
ability to raise capital, if necessary, and may cause us to realize
impairments on investments and certain intangible assets, including
goodwill and the valuation allowance against deferred tax assets,
which may reduce future earnings and/or affect our financial condition
and ability to raise additional capital or refinance existing debt as
it matures;
-
Because of our holding company structure, the inability of our
subsidiaries to pay dividends to the holding company in sufficient
amounts could harm the holding company's ability to meet its
obligations;
-
Legislative, regulatory or tax changes, both domestic and foreign,
that affect: the cost of, or demand for, our subsidiaries' products;
the required amount of reserves and/or surplus; our ability to conduct
business and our captive reinsurance arrangements, as well as
restrictions on revenue sharing and 12b-1 payments; the potential for
U.S. federal tax reform; and the effect of the Department of Labor's
("DOL") regulation defining fiduciary;
-
Actions taken by reinsurers to raise rates on in-force business;
-
Declines in or sustained low interest rates causing a reduction in
investment income, the interest margins of our businesses, estimated
gross profits and demand for our products;
-
Rapidly increasing interest rates causing contract holders to
surrender life insurance and annuity policies, thereby causing
realized investment losses, and reduced hedge performance related to
variable annuities;
-
Uncertainty about the effect of continuing promulgation and
implementation of rules and regulations under the Dodd-Frank Wall
Street Reform and Consumer Protection Act on us, the economy and the
financial services sector in particular;
-
The initiation of legal or regulatory proceedings against us, and the
outcome of any legal or regulatory proceedings, such as: adverse
actions related to present or past business practices common in
businesses in which we compete; adverse decisions in significant
actions including, but not limited to, actions brought by federal and
state authorities and class action cases; new decisions that result in
changes in law; and unexpected trial court rulings;
-
A decline in the equity markets causing a reduction in the sales of
our subsidiaries' products; a reduction of asset-based fees that our
subsidiaries charge on various investment and insurance products; an
acceleration of the net amortization of deferred acquisition costs
("DAC"), value of business acquired ("VOBA"), deferred sales
inducements ("DSI") and deferred front-end loads ("DFEL"); and an
increase in liabilities related to guaranteed benefit features of our
subsidiaries' variable annuity products;
-
Ineffectiveness of our risk management policies and procedures,
including various hedging strategies used to offset the effect of
changes in the value of liabilities due to changes in the level and
volatility of the equity markets and interest rates;
-
A deviation in actual experience regarding future persistency,
mortality, morbidity, interest rates or equity market returns from the
assumptions used in pricing our subsidiaries' products, in
establishing related insurance reserves and in the net amortization of
DAC, VOBA, DSI and DFEL, which may reduce future earnings;
-
Changes in accounting principles generally accepted in the United
States ("GAAP"), that may result in unanticipated changes to our net
income;
-
Lowering of one or more of our debt ratings issued by nationally
recognized statistical rating organizations and the adverse effect
such action may have on our ability to raise capital and on our
liquidity and financial condition;
-
Lowering of one or more of the insurer financial strength ratings of
our insurance subsidiaries and the adverse effect such action may have
on the premium writings, policy retention, profitability of our
insurance subsidiaries and liquidity;
-
Significant credit, accounting, fraud, corporate governance or other
issues that may adversely affect the value of certain investments in
our portfolios, as well as counterparties to which we are exposed to
credit risk requiring that we realize losses on investments;
-
Inability to protect our intellectual property rights or claims of
infringement of the intellectual property rights of others;
-
Interruption in telecommunication, information technology or other
operational systems, or failure to safeguard the confidentiality or
privacy of sensitive data on such systems from cyberattacks or other
breaches of our data security systems;
-
The effect of acquisitions and divestitures, restructurings, product
withdrawals and other unusual items;
-
The adequacy and collectability of reinsurance that we have purchased;
-
Acts of terrorism, a pandemic, war or other man-made and natural
catastrophes that may adversely affect our businesses and the cost and
availability of reinsurance;
-
Competitive conditions, including pricing pressures, new product
offerings and the emergence of new competitors, that may affect the
level of premiums and fees that our subsidiaries can charge for their
products;
-
The unknown effect on our subsidiaries' businesses resulting from
evolving market preferences and the changing demographics of our
client base; and
-
The unanticipated loss of key management, financial planners or
wholesalers.
The risks included here are not exhaustive. Our annual report on Form
10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and
other documents filed with the Securities and Exchange Commission
("SEC") include additional factors that could affect our businesses and
financial performance. Moreover, we operate in a rapidly changing and
competitive environment. New risk factors emerge from time to time, and
it is not possible for management to predict all such risk factors.
Further, it is not possible to assess the effect of all risk factors on
our businesses or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements. Given these risks and
uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. In
addition, Lincoln disclaims any obligation to update any forward-looking
statements to reflect events or circumstances that occur after the date
of this press release.
The reporting of Risk Based Capital ("RBC") measures is not intended for
the purpose of ranking any insurance company or for use in connection
with any marketing, advertising or promotional activities.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170802006212/en/
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