Overview

• US insurance and retirement provider's Q1 revenue rose and beat analyst expectations

• Adjusted operating income for Q1 improved from prior year, driven by segment growth

• Company reported narrower net loss, with difference from adjusted operating income mainly due to non-economic market risk benefit changes

Outlook

• Company did not provide specific financial guidance for the current qtr or full yr

Result Drivers

• GROUP PROTECTION - Q1 earnings driven by favorable life experience, with premiums up year over year, though sales declined due to a large case lapse

• LIFE INSURANCE - Earnings increased due to strong alternative investment income and impact of captive consolidation; sales rose across product lines, especially Executive Benefits

• RETIREMENT PLAN SERVICES - Operating income rose on spread expansion and favorable equity markets, partly offset by outflows; net outflows narrowed significantly from prior year

Company press release: ID:nBw64qFLKa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$5.31 bln	$4.93 bln (6 Analysts)
Q1 EPS		-$1.10
Q1 Net Income		-$172 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the life & health insurance peer group is "buy."

• Wall Street's median 12-month price target for Lincoln National Corp is $42.50, about 13% above its May 6 closing price of $37.62

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

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