AI-extracted from the 10-Q filed 2026-07-30 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Lincoln National reported Q2 net income of $1.33B, up 91% YoY, driven by $1.5B gain in market risk benefits on variable annuities and strong equity market performance.
Biggest Revenue Drivers
Insurance premiums$1.7B+2% YoY
Reflects activity across annuity and life insurance products, partially offset by expiration of a 10-year assumed reinsurance treaty on March 31, 2025.
Fee income$1.4B+4% YoY
Higher average daily separate account balances driven by positive net flows and market appreciation in variable annuity business.
Biggest Revenue Drivers
Total revenue: $4.5B+12% YoY
Insurance premiums$1.7B+2% YoY
Reflects activity across annuity and life insurance products, partially offset by expiration of a 10-year assumed reinsurance treaty on March 31, 2025.
Fee income$1.4B+4% YoY
Higher average daily separate account balances driven by positive net flows and market appreciation in variable annuity business.
Net investment income$1.6B+10% YoY
Improved portfolio yields from higher interest rate environment and higher average general account balances.
Realized gain (loss)$(406)M
Losses on fixed maturity securities, credit losses, and mark-to-market adjustments on derivatives, partially offset by indexed product derivative gains.
Other revenues$202M+10% YoY
Includes revenues attributable to interest income on deposit reinsurance assets and net settlement related to certain reinsurance transactions.
Largest Expense Items
Benefits and policyholder liability remeasurement$1.9B-4% YoY
Lower benefit payments and actuarial gains from improved mortality experience, partially offset by higher assessments in guaranteed universal life products.
Interest credited$1.0B+12% YoY
Higher interest credits driven by higher crediting rates in fixed annuity and UL products reflecting improved portfolio yields.
Commissions and other expenses$1.4B+5% YoY
Higher trail commissions and DAC amortization from increased account balances and new business, partially offset by lower operating costs.
Interest and debt expense$82MN/M
Reflects interest on long-term and short-term debt; increased from refinancing and issuance of $500M subordinated notes in June 2026.
Margins: Operating income before tax adjustments was $450M for Q2 2026 vs. $438M in Q2 2025, essentially flat. Gross margins remain pressured by higher crediting rates in low-rate environment and increased hedging costs on variable annuity guarantees, offset partially by higher investment yields and positive net flows on scale.
Watch Items from the Filing
Talcott Financial Group reinsurance transaction (announced July 30, 2026): $5.8B of guaranteed universal life statutory reserves to be ceded, subject to Q4 2026 closing and regulatory approvals; represents material liability shift and ongoing capital management strategy.
Settlement of cost-of-insurance litigation: $147.5M pre-tax accrual remains as of June 30, 2026, subject to pending appeal of final judgment in U.S. Court of Appeals for Second Circuit filed July 16, 2025.
Variable annuity guaranteed benefit exposure: GLB NAR of $1.6B and GDB NAR of $438M as of June 30, 2026; 13% of GLB contracts and 2% of GDB contracts 'in the money,' indicating ongoing market-driven liability sensitivity.
Market risk benefit liability: MRB net liability position of $4.2B (assets $5.1B, liabilities $895M) as of June 30, 2026; depends critically on equity markets and volatility assumptions; -10% equity shock scenario would reduce net income by $825M after-tax.
Fixed maturity portfolio unrealized losses: $9.3B gross unrealized losses on AFS securities as of June 30, 2026, up from $9.0B at year-end 2025, driven by rising interest rates; $1.8B deferred tax asset related to unrealized losses carries valuation recovery risk.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
LeFebvre DaleReporting ownerGrant or award · Sep 30, 2026
Johnson Eric GReporting ownerGrant or award · Sep 30, 2026
Lachman M LeanneReporting ownerGrant or award · Sep 30, 2026
Morris James TReporting ownerGrant or award · Sep 30, 2026
Ryan OwenReporting ownerGrant or award · Sep 30, 2026
Cohen Adam MInterim CFO & CAOGrant or award · Aug 24, 2026
Congress trading in LNC
4 transactions in LNC reported by 3 members of Congress under the STOCK Act, most recent trade Jun 17, 2025. Reported transactions, not recommendations.
About LINCOLN NATIONAL CORP (LNC): stock profile, AI score and financials
LINCOLN NATIONAL CORP (LNC) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores LNC at 73.2/100 on a composite quality score built from its SEC filings, placing it at rank #131 of 2,925 stocks — the top 5% of the AI-ranked universe. LNC scores in the top quartile across revenue scale (92.0), revenue growth (76.4), profitability (75.5). Areas of concern include earnings quality (8.0) and free cash flow (19.4), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q2 2026), LINCOLN NATIONAL CORP reports quarterly revenue of $4.5B, net income of $1.3B, an operating margin of 36.2%. Top institutional holders of LNC by reported 13-F value include Bain Capital Prairie, BlackRock, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. LNC trades on the NYSE exchange and files with the SEC under CIK 59558. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate LNC daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for LINCOLN NATIONAL CORP directly from SEC EDGAR.