LINCOLN NATIONAL CORP
For the period ended Mar 31, 2024. Filed May 2, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 2, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Results of Consolidated Operations
Details underlying the consolidated results (in millions) were as follows:
| For the Three Months Ended March 31, | ||
|---|---|---|
| 2024 | 2023 | |
| Net Income (Loss) | ||
| Income (loss) from operations: | ||
| Annuities | $259 | $274 |
| Life Insurance | (35) | (13) |
| Group Protection | 80 | 71 |
| Retirement Plan Services | 36 | 43 |
| Other Operations | (235) | (87) |
| Net annuity product features, after-tax | 1,141 | (1,018) |
| Net life insurance product features, after-tax | (103) | (95) |
| Credit loss-related adjustments, after-tax | (1) | (18) |
| Investment gains (losses), after-tax | (65) | (45) |
| Changes in the fair value of reinsurance-related | ||
| embedded derivatives, trading securities and | ||
| certain mortgage loans, after-tax (1) | 153 | 7 |
| Transaction and integration costs related to mergers, | ||
| acquisitions and divestitures, after-tax | (8) | – |
| Net income (loss) | $1,222 | $(881) |
(1)The coinsurance with funds withheld investment portfolio includes fixed maturity securities classified as AFS with changes in fair value recorded in OCI. Since the corresponding and offsetting changes in fair value of the embedded derivative related to the coinsurance with funds withheld investment portfolio are recorded in realized gain (loss), volatility can occur within net income (loss). See Note 7 for more information.
Net income increased due primarily to the following:
Gain in net annuity product features in 2024 compared to loss in 2023 driven by MRB-related impacts due to the effect of capital markets.
More favorable changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans in 2024 driven by the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction.
The increase in net income was partially offset by a legal accrual in the first quarter of 2024 and higher compensation-related expenses and other costs pertaining to business operations.
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