A $5.8 billion reinsurance transaction improved capital efficiency as adjusted EPS of $2.24 beat forecasts, even with reported sales down 3.9% year over year and book value per share trailing estimates.
Lincoln National Corp. posted stronger-than-expected second-quarter 2026 earnings but weaker revenue, while also completing a $5.8 billion reinsurance deal aimed at improving capital efficiency and freeing resources for higher-return products. The insurer and retirement company reported adjusted earnings of $2.24 per share for the quarter ended June 30, beating analyst expectations by $0.28 and topping the roughly $2 consensus cited by Zacks Investment Research. Reported revenue was $4.54 billion, down 3.9% from a year earlier and below the $4.89 billion analysts had expected, while net income was $1.33 billion, or $6.72 per share. Lincoln National also disclosed adjusted revenue of $4.93 billion, above the $4.86 billion estimate from analysts surveyed by Zacks, highlighting the effect of quarter-specific accounting items. Pre-tax profit was $450 million, equal to a 9.9% margin. Book value per share was $44.91, well below the $74.85 analyst estimate and unchanged from the prior year. The newly completed reinsurance transaction adds a strategic capital-management element to the quarter, reflecting an effort to redeploy balance-sheet capacity toward businesses with better return potential.