Lincoln National Corporation’s (LNC - Free Report) first-quarter 2019 earnings of $2.14 per share beat the Zacks Consensus Estimate by 2.9%. Moreover, the bottom line improved about 8.6% year over year, mainly led by increase in revenues and share buyback.
Operating revenues of $4 billion increased 9.9% year over year but missed the Zacks Consensus Estimate by 8.5%.
Total expenses rose 16.5% year over year to $3.7 billion, due to higher benefits and commission and other expenses.
Lincoln National Corporation Price, Consensus and EPS Surprise
Strong Segment Results
Operating income in the Annuities segment was down 6.4% year over year to $250 million. This was mainly due to decline in lower account from Athene reinsurance transaction, completed in the fourth quarter of 2018.
Total annuity deposits soared 39% from the year-ago quarter to $3.5 billion, driven by growth in fixed annuities sales, partly offset by 5% decline in variable annuity sales.
Operating income in Retirement Plan Services decreased 9.3% year over year to $39 million, primarily due to lower variable investment income and spread income, which more than offset an increase in account values. Total deposits increased 6% year over year to $2.5 billion.
Operating income in Life Insurance segment was up 9% year over year to $157 million, as a result of favorable mortality and lower amortization expense, partially offset by a decrease in alternative investment income.
Operating income in Group Protection increased 90% year over year to $55 million. This increase was driven by the buyout of the Liberty Mutual Group benefits business.
The Other operations segment incurred a loss of $60 million, wider than $42 million suffered in the prior-year quarter.
Financial Update
As of Mar 31, 2019, Lincoln National’s book value per share, excluding accumulated other comprehensive income, climbed 9% year over year to $68.79.
Operating return on equity (ROE), excluding accumulated other comprehensive income and goodwill, was up just 10 bps year over year to 14.5%.
The company’s long term debt declined 1.6% year over year to $4.7 billion.
Average shareholders’ equity (excluding AOCI and goodwill) of $12.2 billion declined 0.5% year over year.
Zacks Rank and Peer Releases
Lincoln National has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other players from the insurance industry that have reported first-quarter earnings so far, the bottom line of Torchmark Corporation , RLI Corporation (RLI - Free Report) and W.R. Berkley Corp. (WRB - Free Report) beat the respective Zacks Consensus Estimate by 3.14%, 20.3% and 54%.
Zacks' Top 10 Stocks for 2019
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Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Lincoln National Corporation’s (LNC - Free Report) first-quarter 2019 earnings of $2.14 per share beat the Zacks Consensus Estimate by 2.9%. Moreover, the bottom line improved about 8.6% year over year, mainly led by increase in revenues and share buyback.
Operating revenues of $4 billion increased 9.9% year over year but missed the Zacks Consensus Estimate by 8.5%.
Total expenses rose 16.5% year over year to $3.7 billion, due to higher benefits and commission and other expenses.
Lincoln National Corporation Price, Consensus and EPS Surprise
Strong Segment Results
Operating income in the Annuities segment was down 6.4% year over year to $250 million. This was mainly due to decline in lower account from Athene reinsurance transaction, completed in the fourth quarter of 2018.
Total annuity deposits soared 39% from the year-ago quarter to $3.5 billion, driven by growth in fixed annuities sales, partly offset by 5% decline in variable annuity sales.
Operating income in Retirement Plan Services decreased 9.3% year over year to $39 million, primarily due to lower variable investment income and spread income, which more than offset an increase in account values. Total deposits increased 6% year over year to $2.5 billion.
Operating income in Life Insurance segment was up 9% year over year to $157 million, as a result of favorable mortality and lower amortization expense, partially offset by a decrease in alternative investment income.
Operating income in Group Protection increased 90% year over year to $55 million. This increase was driven by the buyout of the Liberty Mutual Group benefits business.
The Other operations segment incurred a loss of $60 million, wider than $42 million suffered in the prior-year quarter.
Financial Update
As of Mar 31, 2019, Lincoln National’s book value per share, excluding accumulated other comprehensive income, climbed 9% year over year to $68.79.
Operating return on equity (ROE), excluding accumulated other comprehensive income and goodwill, was up just 10 bps year over year to 14.5%.
The company’s long term debt declined 1.6% year over year to $4.7 billion.
Average shareholders’ equity (excluding AOCI and goodwill) of $12.2 billion declined 0.5% year over year.
Zacks Rank and Peer Releases
Lincoln National has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other players from the insurance industry that have reported first-quarter earnings so far, the bottom line of Torchmark Corporation , RLI Corporation (RLI - Free Report) and W.R. Berkley Corp. (WRB - Free Report) beat the respective Zacks Consensus Estimate by 3.14%, 20.3% and 54%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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