Lincoln National (LNC) Financials

Lincoln National Corp (NYSE: LNC) financial performance shows considerable fluctuations over the last four years through Q1 2025 in income, cash flow, and balance sheet metrics.

• Total Non-Interest Income remained substantial and relatively stable, with Q1 2025 at $4.69 billion, showing consistent revenue from premiums earned and other service charges.
• Premiums Earned increased steadily from about $1.55 billion in Q3 2022 to $1.68 billion in Q1 2025, reflecting possible growth in insured business.
• Mortgage Servicing Rights and Deferred Acquisition Costs assets have grown from about $18.3 billion and $12.3 billion respectively in Q1 2023 to $21.5 billion and $12.6 billion in Q1 2025, indicating investment in long-term servicing and policy acquisition.
• Cash and Due from Banks increased over time, reaching approximately $4.28 billion in Q1 2025, up from roughly $3.77 billion in Q2 2023, strengthening liquidity.
• Net Cash from Financing Activities was positive in Q1 2025 at $801 million, signaling external capital raising or debt management activity.

• Net Interest Income is minimal to zero in recent quarters, typical for insurance-focused businesses, indicating reliance on non-interest income.
• Total Assets remained high and relatively steady, around $343 billion in Q1 2023 to about $383 billion in Q1 2025, anchored by Separate Account Business Assets fluctuating within $137 billion to $162 billion range.
• Total Liabilities also stayed stable near $335 billion to $375 billion over the period, consistent with the size of insurance contract liabilities and other obligations.
• Weighted average shares outstanding remained stable around 169 million to 171 million, indicating little dilution.

• Net income shows significant volatility and deterioration by Q1 2025 with a loss of $756 million attributable to common shareholders, down sharply from positive earnings above $1 billion in prior quarters of 2024.
• Total Pre-Tax Income swung from strong positive in 2024 quarters to a loss of $949 million in Q1 2025, primarily driven by increased non-interest expenses at $5.64 billion surpassing revenues.
• Total Non-Interest Expense rose sharply in Q1 2025 to $5.64 billion from roughly $3 billion in recent quarters, including other operating expenses and special charges substantially increasing.
• Net cash from continuing operating activities was negative $272 million in Q1 2025, deteriorating from positive cash flow in prior quarters, indicating operational cash challenges.
• Long-Term Debt increased to $14.15 billion by Q1 2025, though it fluctuated, it poses financial leverage considerations amid weaker earnings.

Summary: Lincoln National has demonstrated strong premium revenue growth and stable asset/liability composition over the past several years. However, Q1 2025 shows notable challenges, including a sharp swing to heavy losses, rising expenses, and negative operating cash flows. This likely dampens near-term profitability prospects, despite solid top-line premiums and assets under management. Investors should monitor the company’s expense management and operating cash trends closely, as those remain the key risks in the current environment.