Lincoln National Corporation (LNC) has reported 105.73 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $467 million, or $2 a share in the quarter, compared with $227 million, or $0.87 a share for the same period last year.
Revenue during the quarter dropped 5.14 percent to $3,525 million from $3,716 million in the previous year period. Net premium earned for the quarter declined 14.18 percent or $117 million to $708 million.
Total expenses come downOperating income for the quarter was $612 million, compared with $268 million in the previous year period. Net investment income for the quarter was almost stable at $1,259 million, when compared with the last year period. Meanwhile, income from fees and commission for the quarter declined 6.33 percent or $93 million to $1,376 million. The company has booked a loss on investments of $13 million in the quarter compared with a loss of $18 million for the previous year period.
"Strong earnings from all four of our businesses combined with share buybacks resulted in record earnings and EPS, a 10% increase in book value per share, and nearly a 14% ROE," said Dennis R. Glass, president and chief executive officer of Lincoln Financial Group. "Strong Life mortality and good Group Protection loss ratios contributed to this quarter’s high quality results. We are tackling industry headwinds through expense management, active capital deployment, product innovation, and distribution efficiency."
Assets outpace liabilities growthTotal assets increased 6.84 percent or $17,073 million to $266,605 million on Sep. 30, 2016. On the other hand, total liabilities were at $250,282 million as on Sep. 30, 2016, up 6.44 percent or $15,151 million from year-ago. Return on assets stood at 0.20 percent in the quarter, up 0.08 from 0.12 percent in the last year period. At the same time, return on equity was at 2.86 percent in the quarter, up 1.28 from 1.58 percent in the last year period.
Investments move upInvestments stood at $111,591 million as on Sep. 30, 2016, up 8.13 percent or $8,392 million from year-ago. Meanwhile, yield on investments went down 9 basis points to 1.13 percent in the quarter. Net premiums and other receivables decreased 7.31 percent or $28 million over the year to $355 million on Sep. 30, 2016. Meanwhile, reinsurance recoverables moved down 2.28 percent or $127 million over the year to $5,432 million on Sep. 30, 2016.
Liability for future policy benefits, unpaid claims and claims adjustment expense was at $22,120 million as on Sep. 30, 2016, up 7.78 percent or $1,597 million from year-ago.
Total debt was at $250 million as on Sep. 30, 2016, down 95.63 percent or $5,472 million from year-ago. Shareholders equity stood at $16,323 million as on Sep. 30, 2016, up 13.35 percent or $1,922 million from year-ago. As a result, debt to equity ratio went down 38 basis points to 0.02 percent in the quarter from 0.40 percent in the last year period.
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