Q2 2024 Earnings Summary
Reported on Jan 7, 2025 (Before Market Open)
Pre-Earnings Price$33.30Last close (Jul 31, 2024)
Post-Earnings Price$35.04Open (Aug 1, 2024)
Price Change
$1.74(+5.23%)
- Annuity sales increased by 48% year-over-year to $3.8 billion, driven by significant growth in fixed annuities and successful operational enhancements, indicating strong customer demand and effective strategy execution.
- LNC is successfully shifting towards a more balanced product mix, with over 70% of annuity sales coming from spread and spread-like products, which enhances risk-adjusted returns and capital efficiency.
- The establishment of an affiliated Bermuda reinsurance subsidiary, which is overcapitalized relative to its long-term target, positions the company to improve free cash flow and competitiveness in key product markets.
- Increased competition in the group protection market, with new entrants potentially impacting pricing and margins in the small market segment.
- Expected moderation in group protection earnings in the second half due to seasonality and timing of experience refunds, potentially leading to lower margins compared to the strong first half results.
- Challenges in improving free cash flow conversion, as the company needs to take significant steps over the next few years, including capital investments and expense optimization, which may affect capital return and operating efficiency. ,