SAN FRANCISCO–(BUSINESS WIRE)–
Affirm (NASDAQ: AFRM), the payment network that empowers consumers and helps merchants drive growth, today announced an expansion of their long-term capital partnership with New York Life, America’s largest1 mutual life insurance company.
Under the expanded agreement, New York Life will purchase Affirm’s installment loans on a forward-flow basis between now and December 2026 with an amount outstanding of up to $750 million. This provides off-balance-sheet funding that can support approximately $1.75 billion in consumer loan volume per year, helping Affirm offer even more flexible and transparent payment options.
The expanded partnership leverages the complementary strengths of Affirm and New York Life. As an industry-leading underwriter, Affirm provides a responsible and transparent way to pay over time without any late fees or hidden charges. As one of the world’s leading investment platforms, New York Life brings significant scale and private credit structuring expertise.
Prior to this latest expansion, New York Life has invested nearly $2 billion in Affirm collateral, including through the company’s asset-backed securitizations.
“We are proud to expand our relationship with such a trusted and forward-thinking partner in New York Life,” said Michael Linford, Chief Operating Officer, Affirm. “Through our collaboration, we will be even better positioned to responsibly increase access to our flexible and transparent payment options.”
“As we continue to deploy capital to create lasting value for our policy owners, Affirm has distinguished itself by delivering superior credit outcomes that generate attractive returns,” said Brendan Feeney, Managing Director, New York Life. “We’re excited to take this next step in our relationship, which exemplifies how we collaborate with industry leaders to invest in growing, high-quality assets.”
Affirm empowers consumers with a clear and honest way to pay over time without any late or hidden fees. Affirm has saved consumers over $460 million in late fees. By choosing Affirm instead of revolving credit card debt, U.S. consumers could save 5-30% annually on their total cost of credit – roughly $18 billion in 2024 alone.
About Affirm
Affirm’s mission is to deliver honest financial products that improve lives. By building a new kind of payment network—one based on trust, transparency, and putting people first—we empower millions of consumers to spend and save responsibly, and give thousands of businesses the tools to fuel growth. Unlike most credit cards and other pay-over-time options, we never charge any late or hidden fees. Follow Affirm on social media: LinkedIn | Instagram | Facebook | X.
1 Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/2/2025. For methodology, see https://fortune.com/company/new-york-life-insurance/.
Forward Looking Statement from Affirm
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. All statements other than statements of historical fact contained in this press release, including statements regarding Affirm’s future results of operations and financial condition, business strategy, and plans and objectives of management for future operations, are forward-looking statements. In some cases, forward-looking statements may be identified by words such as “anticipate,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “project,” “should,” “will,” “would,” or the negative of these terms or other similar expressions. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, including risks described under “Risk Factors” in Affirm’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025. Except as required by law, Affirm undertakes no obligation to update publicly any forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or to changes in our expectations.
HONG KONG–(BUSINESS WIRE)– AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of KB Insurance Co., Ltd. (KBI) (South Korea). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect KBI’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the support that the company receives from its parent, KB Financial Group Inc. (KB Group) and its strategic importance to the parent.
KBI’s risk-adjusted capitalisation is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s local solvency ratio remains largely in line with the industry average amid an unfavourable business environment, such as a decline in market interest rates and discount rate cuts by the local regulator. KBI exhibited good accessibility to the capital market underpinned by its recent and past successful issuances of subordinated debts, and maintains low debt leverage and healthy coverage ratios. The company’s investment strategy remains conservative, with a focus on asset liability management.
AM Best assesses KBI’s operating performance as adequate, with its return-on-equity and combined ratios being largely in line with its domestic industry peers. The company’s major business line of long-term insurance is expected to be supported by the release of its large contractual service margin base, albeit facing headwinds in its profitability from an industry-wide increase in medical claims during 2025. While the auto line experiences some negative underwriting pressure, due to the cumulative effect of prior base rate cuts and inflation on repair costs, KBI remains focused on growing its online channel to improve its auto line profitability. This KBI hopes to achieve by economies of scale, despite the potential increase in expenses over the short term amid strong market competition. Interest income remains a major source of the company’s investment profits.
As a wholly owned subsidiary of KB Group, one of the largest financial holding companies in South Korea, KBI remains the fourth-largest non-life insurer in the country with a stable market share of approximately 13% based on gross insurance service revenue in 2024. Strategically, KBI is important to the parent in terms of business diversification, since it is the only non-life insurer within the group. Since its affiliation into KB Group in 2015, KBI has a track record of receiving explicit support including direct capital support and a no-dividend policy between 2019 and 2022, to bolster its capitalisation. Implicit support includes shared distribution channels and group-wide marketing activities under the KB Group brand in both domestic and overseas markets.
Negative rating actions could occur if there is a significant deterioration in KBI’s balance sheet strength fundamentals or if support from KB Group is reduced to a degree that no longer supports the current level of enhancement. Positive rating actions could occur if KBI’s operating performance demonstrates strong and consistent results to positively distinguish itself from industry peers.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Strategic transaction follows a six-year partnership and positions the combined business for continued growth
BOSTON–(BUSINESS WIRE)–
Abry Partners (“Abry”), a Boston-based private equity firm, today announced that its portfolio company Portfolio Holding, Inc. (“Portfolio”) has reached an agreement to be acquired by Protective Life Insurance Company (“Protective Life”), the principal subsidiary of Protective Life Corporation (“Protective”), a wholly owned U.S. subsidiary of Dai-ichi Life Holdings, Inc. The transaction is subject to the receipt of regulatory approvals and satisfaction of customary closing conditions and is expected to close in the fourth quarter of 2025 or the first quarter of 2026.
Founded in 1990 and headquartered in Lake Forest, California with offices in Dallas and Cleveland, Portfolio is a leading provider of reinsurance management services and finance and insurance (“F&I”) products for dealers nationwide. With approximately 450 employees and a national, multi-channel distribution network, Portfolio serves millions of in-force customers through vehicle service contracts, GAP coverage, and a broad range of ancillary products. Portfolio is an 18-time recipient of the Dealers’ Choice Awards, reflecting its sustained excellence in service and dealer support.
“Portfolio’s partnership with Abry has been transformational for our business and customers,” said Jeremy Lux, CEO of Portfolio. “We are thankful for the strategic guidance and operational support over the years that helped us build a stronger organization to support our dealers, agents, and employees. I’m incredibly proud of what we’ve accomplished together and looking forward to the continued growth of the business as part of the Protective platform.”
Since Abry’s investment in 2019, Portfolio more than tripled revenue through a combination of growth and strategic acquisitions while broadening its product offerings and strengthening its technology capabilities. During that time Portfolio made 17 acquisitions of both F&I administrators and agents.
“Portfolio exemplifies the type of market-leading organizations we seek to partner with,” said Christopher (Kip) Turco, a Partner at Abry Partners. “At our initial investment, Portfolio was already a known leader in dealer wealth and reinsurance solutions, and we saw the opportunity to further scale the business through strategic acquisitions, technology investments, and operational enhancements.”
David Coneway, a Principal at Abry Partners added, “We are confident this next chapter will unlock even greater opportunities for Portfolio to grow its reach and service offerings on behalf of its valued dealers and agents. We wish Portfolio continued success.”
Portfolio and Abry were represented by Kirkland & Ellis as legal counsel. Jefferies LLC acted as their financial advisor.
About Portfolio
Founded in 1990, Portfolio’s primary business is turnkey reinsurance management of vehicle service contracts, warranties and other F&I products sold in the automotive dealership. Its top executives have specialized in reinsurance since the origination of the concept over 30 years ago. Portfolio is marketed to dealers through a nationwide network of professional independent agents and reinsurance specialists. The company also administers reinsured and non-reinsured warranty programs for other markets. Portfolio is headquartered in Lake Forest, CA with offices in Dallas, TX and Cleveland, OH. More can be learned about Portfolio at www.PortfolioReinsurance.com.
About Abry Partners
Abry Partners is one of the most experienced and successful sector-focused private equity investment firms in North America. Since its founding in 1989, the firm has completed over $90 billion of leveraged transactions and other private equity or preferred equity placements. Currently, the firm manages $16 billion of assets across several fund strategies. More information about Abry Partners: www.abry.com.
Showcasing the exceptional accomplishments of its PartnerConnect ecosystem and standout ‘All-Stars’ across a global customer base for innovative, impactful work
LAS VEGAS–(BUSINESS WIRE)– CONNECTIONS CONFERENCE – Guidewire (NYSE: GWRE) recognized and celebrated several customer and partner award recipients at Connections, including the esteemed Guidewire Innovation Awards*, the Partner Excellence Awards honoring partners in the Guidewire PartnerConnect program, the Guidewire Insurtech Vanguard global InsurPitch winners**, and the distinguished customer All-Stars*** class of 2025. The annual awards spotlighted the year’s most standout, innovative achievements celebrating Intelligent Insurance. More than 3,000 Guidewire customers and partners were in attendance.
“Guidewire is delighted to celebrate the exceptional work of our customers and partners to reinvent and transform the P&C industry,” said Christina Colby, Chief Customer Officer, Guidewire. “We recognize their excellence in driving powerful outcomes and achievements that highlight how cloud, with intelligent capabilities, delivers real, measurable value.”
*2025 Innovation Award
The 2025 Innovation Award winners were recognized for their transformative use of Guidewire to unlock agility, growth, and better outcomes for policyholders, agents, and insurers. This year’s winners are:
Amerisure – Working with partner PwC, Amerisure transformed how it delivers Loss Sensitive billing solutions, driving greater operational efficiency, saving thousands of manual hours annually, and delivering higher-quality service to customers.
CNA – CNA boldly renewed their digital insurance processes by adopting Guidewire Cloud Platform, Jutro, and Advanced Product Designer with the help of partner PwC, enabling faster product delivery, streamlined underwriting, and scalable low-code solutions including a workers’ compensation product that drastically accelerates time to market and enables agile growth.
OP Life – OP Life transformed its risk life insurance business, achieving 70% automation with its first release and driving significant efficiency gains. Working with CGI, and as the first insurer to implement life products on the Guidewire Cloud Platform, OP Life is setting a new standard for modernization in the industry.
The recipients were presented with their awards on the main stage during the Connections conference. Guidewire Innovation Award winners were also announced in a separate press release on October 29, 2025.
Guidewire PartnerConnect Excellence Awards honor Consulting and Technology partners and Insurtech Vanguards that have demonstrated outstanding achievements in growth, excellence, and impact across its expansive global partner ecosystem. Award winners were recognized at the annual Guidewire Partner Preview event that took place on Monday, October 27, 2025.
**2025 PartnerConnect Consulting/SI Excellence Award recipients are:
Consulting Partner Global Outstanding Market Growth – PwC
Insurtech Vanguard pitch event winners were named at the Guidewire InsurPitch event in London on June 26, 2025 (EMEA) and at InsurPitch in Toronto on September 11, 2025 (AMER). Read more about the EMEA Insurtech Pitch Day winner here and the AMER winner here.
***2025 All-Stars
Colby honored the third annual class of Guidewire All-Stars, which recognizes 51 individuals, celebrating “outstanding champions from our global end-user community nominated by peers, companies, or partners, whose exceptional impact and innovative contributions drove remarkable, above-and-beyond results.” All-Stars include standout underwriters, claims adjusters, operations managers, and others who are leaders in their field.
“We’re thrilled to celebrate these outstanding users whose commitment, leadership, and excellence continue to raise the bar and drive meaningful success across their organizations and the industry,” she said.
“With many exceptional nominations highlighting remarkable achievements and business impact, selecting the 2025 class of All-Stars was a difficult process,” Colby added. “However, we believe this year’s class of honorees best represent the excellence of our global customer community.”
Additionally, All-Star recipients from prior years had the opportunity to tell their personal stories on the Connections main stage during a special segment hosted by The Moth on October 29. “These moving stories demonstrated personal commitment and passion to the purpose of the industry to protect society,” Colby said.
Learn more about the 2025 class of Guidewire All-Stars on our blog.
About Guidewire PartnerConnect
Guidewire PartnerConnect, consisting of Consulting and Technology partners, helps insurers drive their businesses forward by delivering innovative solutions, industry and technology insights, and holistic advice.
Guidewire PartnerConnect Consulting partners deliver specialized consulting services, including business transformation, strategy, implementation, and related solution and delivery services with over 26,000 consultants worldwide who have been trained or are experienced in Guidewire products. Guidewire PartnerConnect is an invitation-only program.
Guidewire’s technology ecosystem is the largest in the P&C industry, with over 220 technology partners providing over 290 integrations in the Guidewire Marketplace. Guidewire PartnerConnect Technology partners provide software, technology, and data solutions as well as insurance support services. Our Technology Alliances partners help drive business value and innovation for insurers by developing and delivering integrations, extensions, apps, and other complementary solutions for Guidewire products. All of our Ready for Guidewire partner solutions are validated for security, quality, and compatibility with Guidewire, and can be found on the Guidewire Marketplace.
Guidewire is the platform P&C insurers trust to engage, innovate, and grow efficiently. More than 570 insurers in 43 countries, from new ventures to the largest and most complex in the world, rely on Guidewire products. With core systems leveraging data and analytics, digital, and artificial intelligence, Guidewire defines cloud platform excellence for P&C insurers.
We are proud of our unparalleled implementation record, with 1,700+ successful projects supported by the industry’s largest R&D team and SI partner ecosystem. Our marketplace represents the largest partner community in P&C, where customers can access hundreds of applications to accelerate integration, localization, and innovation.
RADNOR, Pa.–(BUSINESS WIRE)–
Lincoln Financial (NYSE: LNC) today reported financial results for the third quarter ended September 30, 2025.
Strong financial performance in the quarter demonstrates broadening of momentum and balanced growth across all business segments.
Third quarter net income available to common stockholders was $411 million, or $2.12 per diluted share.
Third quarter adjusted operating income available to common stockholders was $397 million, or $2.04 per diluted share.
The difference between net income and adjusted operating income was primarily attributable to the non-economic impact of changes in market risk benefits and a change in the fair value of an embedded derivative related to the Fortitude Re reinsurance transaction.
The annual assumption review resulted in a $50 million unfavorable impact to net income and a $2 million favorable impact to adjusted operating income in the quarter.
“This quarter’s results underscore the broad-based momentum across Lincoln as we advance our strategic priorities,” said Ellen Cooper, Chairman, President and CEO of Lincoln Financial. “Annuities delivered year-over-year earnings growth driven by higher account balances and an increase in spread income. Life Insurance posted solid results supported by stable mortality and operational efficiencies, while Group Protection continued to execute its profitable growth strategy with another quarter of increased premiums year over year. Retirement Plan Services also reported strong performance, attributable to higher account balances. Across the enterprise, sales were robust and well-balanced, with each business delivering results aligned to its targeted strategies.
“We continue to see opportunities to invest in the business to drive sustained growth. Our disciplined focus on maintaining capital flexibility, increasing profitability, and leveraging operational efficiencies positions us to deliver long-term shareholder value.”
Business Highlights
Our 2025 third-quarter results reflected broad-based execution across our four businesses as they continued to deliver on their respective strategic priorities. The segment operating results presented below do not include the impacts of our annual assumption review. See the segment discussions that follow for additional information.
Retail Solutions
Annuities delivered operating income of $318 million, up 6% compared to the prior-year quarter, primarily driven by favorable equity markets, higher spread income, and favorable tax items. Annuities recorded $174 billion in ending account balances, net of reinsurance, a record high, and sales of $4.5 billion, up 32% year over year. Each product category continued to generate over $1 billion of sales. Spread-based products accounted for more than 60% of total sales in the quarter.
Life Insurance delivered operating income of $54 million, a $40 million increase from the prior-year quarter, driven by stable mortality, higher investment income, and lower net G&A expenses. Alternative investment income returns were essentially in line with our annual target. Our increased emphasis on risk-sharing products drove strong growth across executive benefits and other life products, resulting in total sales of $298 million—more than doubling compared to the prior-year quarter.
Workplace Solutions
Group Protection delivered operating income of $110 million, in line with the prior-year quarter, as favorable life experience was offset by unfavorable long-term disability resolutions. Premiums were 5% higher year over year, resulting from robust prior-year sales and strong persistency. Sales of $116 million in the quarter were 38% higher year over year, driven by disciplined growth across market segments and products.
Retirement Plan Services reported operating income of $46 million in the quarter, up 5% year over year, driven primarily by favorable equity markets and spread expansion, partially offset by stable value outflows. Net inflows were $0.8 billion, compared to $0.7 billion in the year-ago quarter. Total deposits were $5.0 billion in the quarter, up 20% over the prior-year quarter, and first-year sales of $2.4 billion were up almost 50% year over year.
Earnings Summary
(in millions, except per share data)
For the Three Months Ended
For the Nine Months Ended
9/30/2024
9/30/25
9/30/24
9/30/25
Net income (loss)
$
(528
)
$
445
$
1,588
$
423
Net income (loss) available to common stockholders — diluted
(562
)
411
1,511
343
Net income (loss) per diluted share available to common stockholders(1)
$
(3.29
)
$
2.12
$
8.75
$
1.87
Adjusted income (loss) from operations
392
431
971
1,183
Adjusted income (loss) from operations available to common stockholders
358
397
891
1,103
Adjusted income (loss) from operations per diluted share available to common stockholders
$
2.06
$
2.04
$
5.16
$
6.01
(1) In periods where a net loss is presented, basic shares are used in the diluted EPS and adjusted diluted EPS calculations, as using diluted shares would result in a lower loss per share.
Reconciliation of Net Income (Loss) to Adjusted Income (Loss) from Operations(1)
(in millions)
For the Three Months Ended
For the Nine Months Ended
9/30/24
9/30/25
9/30/24
9/30/25
Net income (loss) available to common stockholders — diluted
$
(562
)
$
411
$
1,511
$
343
Less:
Preferred stock dividends declared
(34
)
(34
)
(80
)
(80
)
Adjustment for deferred units of LNC stock in our deferred compensation plans
—
—
3
—
Net income (loss)
(528
)
445
1,588
423
Less:
Net annuity product features, pre-tax(1)
(381
)
410
1,319
(277
)
Net life insurance product features, pre-tax
(125
)
(22
)
(253
)
(37
)
Credit loss-related adjustments, pre-tax
(88
)
(38
)
(124
)
(91
)
Investment gains (losses), pre-tax
(105
)
(35
)
(416
)
(218
)
Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans, pre-tax(1)
(446
)
(191
)
(51
)
(266
)
Gains (losses) on other non-financial assets – sale of subsidiaries/businesses, pre-tax(1)
(2
)
—
582
—
Other items, pre-tax(1)
(19
)
(105
)
(238
)
(65
)
Income tax benefit (expense) related to the above pre-tax items
246
(5
)
(202
)
194
Adjusted income (loss) from operations
$
392
$
431
$
971
$
1,183
Adjusted income (loss) from operations available to common stockholders
$
358
$
397
$
891
$
1,103
(1) Refer to the full reconciliation at the back of this release for footnotes.
Variable Investment Income
Alternative Investment Income, after-tax(1)
For the Three Months Ended
For the Nine Months Ended
(in millions)
9/30/24
12/31/24
3/31/25
6/30/25
9/30/25
9/30/24
9/30/25
Annuities
$
3
$
3
$
2
$
3
$
2
$
6
$
7
Life Insurance
73
76
55
74
75
157
204
Group Protection
1
1
1
1
2
3
4
Retirement Plan Services
2
2
1
2
1
3
4
Other Operations
—
1
—
—
—
—
—
Consolidated
$
79
$
83
$
59
$
80
$
80
$
169
$
219
(1) Excludes alternative investment income on investments supporting our modified coinsurance and coinsurance with funds withheld agreements as we have limited economic interest in those investments.
Prepayment Income, after-tax
For the Three Months Ended
For the Nine Months Ended
(in millions)
9/30/24
12/31/24
3/31/25
6/30/25
9/30/25
9/30/24
9/30/25
Annuities
$
—
$
2
$
—
$
3
$
3
$
1
$
6
Life Insurance
3
1
1
—
1
5
2
Group Protection
1
1
—
1
—
—
1
Retirement Plan Services
—
1
—
—
1
1
1
Other Operations
—
—
—
—
—
—
—
Consolidated
$
4
$
5
$
1
$
4
$
5
$
7
$
10
Items Impacting Segment and Other Operations Results
For the Three Months Ended September 30, 2025
(in millions)
Annuities
Life Insurance
Group Protection
Retirement Plan Services
Other Operations
After-tax impacts:
Alternative investment income compared to return target(1)
$
—
$
(2
)
$
—
$
—
$
—
Prepayment income(2)
3
1
—
1
—
Annual assumption review
(8
)
(29
)
39
—
—
Tax items
—
—
—
—
—
Other
—
—
—
—
—
Total impact
$
(5
)
$
(30
)
$
39
$
1
$
—
For the Three Months Ended September 30, 2024
(in millions)
Annuities
Life Insurance
Group Protection
Retirement Plan Services
Other Operations
After-tax impacts:
Alternative investment income compared to return target(1)
$
1
$
6
$
—
$
—
$
—
Prepayment income(2)
—
3
1
—
—
Annual assumption review
1
8
(1
)
—
—
Tax items
—
—
—
—
—
Other
—
—
—
—
—
Total impact
$
2
$
17
$
—
$
—
$
—
(1) Alternative investment income comparison to return target assumes a 10% annual return on the alternative investment portfolio.
(2) Prepayment income is actual income reported in the quarter.
Capital and Liquidity
As of or For the Three Months Ended
(in millions, except percent and per share data)
9/30/24
12/31/24
3/31/25
6/30/25
9/30/25
Holding company available liquidity(1)
$
459
$
463
$
466
$
466
$
461
RBC ratio(2)
>420%
433%
>420%
>420%
>420%
Book value per share (BVPS), including AOCI
$
46.97
$
42.60
$
41.96
$
44.91
$
49.56
Book value per share, excluding AOCI(3)
$
62.67
$
72.06
$
67.04
$
67.95
$
69.66
Adjusted book value per share(3)
$
70.04
$
72.34
$
73.19
$
72.77
$
74.23
(1) Holding company available liquidity presented as of 9/30/24 and 12/31/24 does not include the $300 million prefunding of a 2025 maturity.
(2) The RBC ratio is calculated annually as of December 31, but is reported in the March statutory reporting, and as such, the quarterly ratios presented for 9/30/24, 3/31/25, 6/30/25 and 9/30/25 are considered estimates based on information known at the time of reporting.
(3) Refer to the reconciliation to book value per share, including AOCI, at the back of this release.
Annuities
(in millions, except ROA data)
As of or For the Three Months Ended
As of or For the Nine Months Ended
9/30/24
12/31/24
3/31/25
6/30/25
9/30/25
Change
9/30/24
9/30/25
Change
Total operating revenues
$
1,195
$
1,223
$
1,198
$
1,214
$
1,270
6.3
%
$
3,673
$
3,682
0.2
%
Total operating expenses
836
864
858
876
902
7.9
%
2,645
2,636
(0.3
)%
Income (loss) from operations before taxes
359
359
340
338
368
2.5
%
1,028
1,046
1.8
%
Federal income tax expense (benefit)
58
56
50
51
58
0.0
%
171
160
(6.4
)%
Income (loss) from operations
$
301
$
303
$
290
$
287
$
310
3.0
%
$
857
$
886
3.4
%
Income (loss) from operations, excluding impact of annual assumption review
$
300
$
303
$
290
$
287
$
318
6.0
%
$
856
$
894
4.4
%
Total sales
$
3,375
$
3,689
$
3,789
$
4,019
$
4,467
32.4
%
$
10,038
$
12,274
22.3
%
Net flows
$
(1,637
)
$
(1,891
)
$
(1,676
)
$
(1,162
)
$
(1,143
)
30.2
%
$
(4,584
)
$
(3,981
)
13.2
%
Average account balances, net of reinsurance
$
161,680
$
165,424
$
163,688
$
159,806
$
170,318
5.3
%
$
158,245
$
164,735
4.1
%
Return on average account balances (bps)
74
73
71
72
73
72
72
Return on average account balances (bps), excluding impact of annual assumption review
74
73
71
72
75
72
72
Income from operations was $310 million for the third quarter, compared to $301 million in the prior-year quarter. The annual assumption review had an $8 million unfavorable impact on income from operations in the current quarter, compared to a $1 million favorable impact in the third quarter of 2024.
Not including the impact of the annual assumption review, income from operations was $318 million, up 6% compared to the prior-year quarter, primarily driven by favorable equity markets, higher spread income, and favorable tax items.
Total sales were $4.5 billion in the quarter, increasing 32% compared to the prior year. Spread-based products comprised more than 60% of total sales.
Net outflows were approximately $1.1 billion in the quarter, compared to net outflows of $1.6 billion in the prior-year quarter, driven by strong sales momentum.
Average account balances, net of reinsurance, were $170 billion, increasing 5% over the prior-year quarter, primarily due to growth in RILA.
Life Insurance
(in millions)
As of or For the Three Months Ended
As of or For the Nine Months Ended
9/30/24
12/31/24
3/31/25
6/30/25
9/30/25
Change
9/30/24
9/30/25
Change
Total operating revenues
$
1,589
$
1,608
$
1,587
$
1,602
$
1,610
1.3
%
$
4,640
$
4,798
3.4
%
Total operating expenses
1,568
1,634
1,619
1,568
1,586
1.1
%
4,719
4,772
1.1
%
Income (loss) from operations before taxes
21
(26
)
(32
)
34
24
14.3
%
(79
)
26
132.9
%
Federal income tax expense (benefit)
(1
)
(11
)
(16
)
2
(1
)
0.0
%
(31
)
(14
)
54.8
%
Income (loss) from operations
$
22
$
(15
)
$
(16
)
$
32
$
25
13.6
%
$
(48
)
$
40
183.3
%
Income (loss) from operations, excluding the impact of annual assumption review
$
14
$
(15
)
$
(16
)
$
32
$
54
285.7
%
$
(56
)
$
69
223.2
%
Average account balances, net of reinsurance
$
44,055
$
44,746
$
44,390
$
45,651
$
48,534
10.2
%
$
43,188
$
46,192
7.0
%
Total sales
$
122
$
119
$
97
$
121
$
298
144.3
%
$
319
$
516
61.8
%
Income from operations was $25 million, compared to $22 million in the prior-year quarter. The third quarter 2025 annual assumption review had a $29 million unfavorable impact on income from operations, compared to a favorable impact of $8 million in the prior-year quarter.
Not including the impact of the annual assumption review, income from operations was $54 million, compared to $14 million in the third quarter of 2024, driven by stable mortality, higher investment income, and lower net G&A expenses.
Total sales were $298 million, up 144% compared to the prior-year quarter, as our focus on risk-sharing products resulted in strong growth in our executive benefits and other life products.
Average account balances, net of reinsurance, were $49 billion, up 10% versus the prior-year quarter.
Group Protection
(in millions, except margin data)
As of or For the Three Months Ended
As of or For the Nine Months Ended
9/30/24
12/31/24
3/31/25
6/30/25
9/30/25
Change
9/30/24
9/30/25
Change
Total operating revenues
$
1,432
$
1,418
$
1,521
$
1,538
$
1,507
5.2
%
$
4,299
$
4,566
6.2
%
Total operating expenses
1,295
1,282
1,393
1,319
1,319
1.9
%
3,896
4,030
3.4
%
Income (loss) from operations before taxes
137
136
128
219
188
37.2
%
403
536
33.0
%
Federal income tax expense (benefit)
28
29
27
46
39
39.3
%
85
113
32.9
%
Income (loss) from operations
$
109
$
107
$
101
$
173
$
149
36.7
%
$
318
$
423
33.0
%
Income (loss) from operations, excluding the impact of annual assumption review
$
110
$
107
$
101
$
173
$
110
0.0
%
$
319
$
384
20.4
%
Insurance premiums
$
1,288
$
1,274
$
1,371
$
1,386
$
1,352
5.0
%
$
3,871
$
4,109
6.1
%
Total sales
$
84
$
467
$
157
$
187
$
116
38.1
%
$
389
$
460
18.3
%
Total loss ratio
71.4
%
71.0
%
72.4
%
65.9
%
68.3
%
72.2
%
68.9
%
Total loss ratio, excluding the impact of the annual assumption review
71.3
%
71.0
%
72.4
%
65.9
%
72.2
%
72.1
%
70.2
%
Operating margin(1)
8.4
%
8.4
%
7.4
%
12.5
%
11.0
%
8.2
%
10.3
%
Operating margin, excluding the impact of annual assumption review
8.5
%
8.4
%
7.4
%
12.5
%
8.1
%
8.2
%
9.3
%
(1) Operating margin is calculated by dividing income (loss) from operations by insurance premiums.
Income from operations was $149 million in the quarter, 37% higher than the prior-year quarter. The annual assumption review had a $39 million favorable impact on income from operations in the current quarter, compared to a $1 million unfavorable impact in the prior-year quarter. The reported operating margin was 11.0%, compared to 8.4% in the third quarter of 2024.
Not including the impact of the annual assumption review, income from operations was $110 million, in line with the prior-year quarter, as more favorable life experience was offset by unfavorable long-term disability resolutions, and the operating margin was 8.1%, 40 basis points lower than the prior-year quarter.
Insurance premiums were $1.4 billion in the quarter, increasing 5% year over year due to robust prior-year sales and strong persistency.
Sales increased 38% year over year, driven by disciplined growth across market segments and products.
The reported total loss ratio was 68.3%, 310 basis points lower than the prior-year quarter. Not including the impact of the annual assumption review, the total loss ratio was 72.2% compared to 71.3% in the prior-year quarter.
Retirement Plan Services
(in millions, except ROA data)
As of or For the Three Months Ended
As of or For the Nine Months Ended
9/30/24
12/31/24
3/31/25
6/30/25
9/30/25
Change
9/30/24
9/30/25
Change
Total operating revenues
$
335
$
337
$
327
$
331
$
343
2.4
%
$
984
$
1,001
1.7
%
Total operating expenses
286
288
289
289
290
1.4
%
847
867
2.4
%
Income (loss) from operations before taxes
49
49
38
42
53
8.2
%
137
134
(2.2
)%
Federal income tax expense (benefit)
5
6
4
5
7
40.0
%
17
18
5.9
%
Income (loss) from operations
$
44
$
43
$
34
$
37
$
46
4.5
%
$
120
$
116
(3.3
)%
Deposits
$
4,180
$
3,473
$
4,115
$
3,594
$
5,008
19.8
%
$
11,265
$
12,717
12.9
%
Net flows
$
651
$
(732
)
$
(2,184
)
$
(585
)
$
755
16.0
%
$
845
$
(2,014
)
NM
Average account balances
$
110,550
$
113,711
$
113,075
$
111,734
$
119,259
7.9
%
$
106,595
$
115,014
7.9
%
Return on average account balances (bps)
16
15
12
13
15
15
14
Income from operations was $46 million in the quarter, up 5% compared to the prior year, primarily resulting from favorable equity markets and spread expansion, partially offset by stable value outflows.
Net inflows were $0.8 billion, primarily due to continued strength in first-year sales.
Total deposits were $5.0 billion, up 20% over the prior-year quarter. First-year sales of $2.4 billion were up almost 50% year over year.
Average account balances were $119 billion, increasing 8% from the prior year, driven by favorable equity markets.
Other Operations
(in millions)
As of or For the Three Months Ended
As of or For the Nine Months Ended
9/30/24
12/31/24
3/31/25
6/30/25
9/30/25
Change
9/30/24
9/30/25
Change
Total operating revenues
$
52
$
42
$
52
$
41
$
50
(3.8
)%
$
118
$
143
21.2
%
Total operating expenses
157
160
164
157
177
12.7
%
466
499
7.1
%
Income (loss) from operations before taxes
(105
)
(118
)
(112
)
(116
)
(127
)
(21.0
)%
(348
)
(356
)
(2.3
)%
Federal income tax expense (benefit)
(21
)
(23
)
(17
)
(25
)
(28
)
(33.3
)%
(72
)
(74
)
(2.8
)%
Income (loss) from operations(1)
$
(84
)
$
(95
)
$
(95
)
$
(91
)
$
(99
)
(17.9
)%
$
(276
)
$
(282
)
(2.2
)%
(1) Income (loss) from operations does not include preferred dividends.
Unrealized Gains and Losses
The company reported a net unrealized loss of $7.9 billion (pre-tax) on its available-for-sale securities as of September 30, 2025, compared to a net unrealized loss of $7.0 billion (pre-tax) as of September 30, 2024. The year-over-year increase was primarily due to higher Treasury rates.
The tables attached to this release define and reconcile the non-GAAP measures adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, book value per share excluding AOCI, and adjusted book value per share to net income (loss), net income (loss) available to common stockholders, and book value per share including AOCI, calculated in accordance with GAAP.
This press release contains statements that are forward-looking, and actual results may differ materially. Please see the Forward-looking Statements – Cautionary Language at the end of this release for factors that may cause actual results to differ materially from the company’s current expectations.
For other financial information, please refer to the company’s third quarter 2025 statistical supplement and third quarter 2025 earnings supplement, which are available in the investor relations section of its website http://www.lincolnfinancial.com/investor.
Conference Call Information
Lincoln Financial will discuss the company’s third quarter results with the investment community in a call beginning at 8:00 a.m. Eastern Time on Thursday, October 30, 2025.
The call will be broadcast live through the company’s website at www.lincolnfinancial.com/webcast. Please log on to the webcast at least 15 minutes prior to the start of the call to download and install any necessary streaming media software. A replay of the call will be available by 10:30 a.m. Eastern Time on October 30, 2025, at www.lincolnfinancial.com/webcast.
About Lincoln Financial
Lincoln Financial helps people confidently plan for their vision of a successful financial future. As of December 31, 2024, approximately 17 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection, and retirement plan services. As of September 30, 2025, the company had $347 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, PA., Lincoln Financial is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.
Non-GAAP Measures
Management believes that the use of the non-GAAP financial measures adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders (or adjusted operating income (loss)) and adjusted income (loss) from operations per diluted share available to common stockholders is helpful to investors in evaluating the company’s performance.
Management believes that excluding the following items from adjusted income (loss) from operations enhances understanding of the underlying trends and long-term performance of the company’s business. Management excludes “net annuity product features” as this adjustment primarily represents the difference between the valuation of reserves and thevaluation of derivatives utilized for hedging our variable annuity and indexed annuity products, which can fluctuate significantly from period to period based on changes in equity markets and interest rates. This difference is due to the hedge focus on managing risks to statutory capital as opposed to the GAAP reserves. Management excludes “net life insurance product features” for similar reasons. In addition, management excludes “credit loss-related adjustments” and “investment gains (losses)” as the timing of changes in allowances or sales of credit-impaired investments depends largely on market credit cycles and can vary considerably from period to period and the timing of other sales of investments that would result in gains or losses is driven by market conditions, including interest rates, and other factors. Management excludes “changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans” as this adjustment represents the economics of investments in underlying funds withheld portfolios supporting reinsurance agreements that have been transferred to third-party reinsurers, which is not indicative of our ongoing results.
Finally, management excludes from adjusted income (loss) from operations certain additional items (as set forth in the definition below) that are not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in most instances, decisions regarding these items do not necessarily relate to the operations of the individual segments. Management believes excluding these items better explains the results of the company’s ongoing businesses in a manner that allows for enhanced understanding of underlying trends, company performance and business fundamentals.
Management also believes that the use of the non-GAAP financial measures book value per share, excluding accumulated other comprehensive income (“AOCI”), and adjusted book value per share enables investors to analyze the amount of our net worth that is attributable to our business operations. Book value per share, excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Adjusted book value per share is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates.
For the historical periods, reconciliations of non-GAAP measures used in this press release to the most directly comparable GAAP measure may be included in this Appendix to the press release and/or are included in the Statistical Supplements for the corresponding periods contained in the Earnings section of the Investor Relations page on our website: http://www.lincolnfinancial.com/investor.
Definitions of Non-GAAP Measures Used in this Press Release
Adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, book value per share, excluding AOCI, and adjusted book value per share, as used in the press release, are non-GAAP financial measures and do not replace GAAP net income (loss), net income (loss) available to common stockholders, and book value per share, including AOCI, the most directly comparable GAAP measures.
Adjusted Income (Loss) from Operations
Adjusted income (loss) from operations is GAAP net income (loss) excluding the following items, as applicable:
Items related to annuity product features, which include changes in market risk benefits (“MRBs”), changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits, and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products (collectively, “net annuity product features”);
Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of VUL hedging, changes in reserves resulting from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our IUL contracts and the associated index options we hold to hedge them (collectively, “net life insurance product features”);
Credit loss-related adjustments on fixed maturity AFS securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”);
Changes in the fair value of equity securities and certain other investments, the impact of certain derivatives, and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment gains (losses)”);
Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans”);
Income (loss) from the initial adoption of new accounting standards, accounting policy changes and new regulations, including changes in tax law;
Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
Losses from the impairment of intangible assets and gains (losses) on other non-financial assets;
Income (loss) from discontinued operations;
Other items, which include the following: certain legal and regulatory accruals; severance expense related to initiatives that realign the workforce; transaction, integration and other costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business, and certain other corporate initiatives; mark-to-market adjustment related to the LNC stock component of our deferred compensation plans (“deferred compensation mark-to-market adjustment”); gains (losses) on modification or early extinguishment of debt; and impacts from settlement or curtailment of defined benefit obligations; and
Income tax benefit (expense) related to the above pre-tax items, including the effect of tax adjustments such as changes to deferred tax valuation allowances.
Adjusted Income (Loss) from Operations Available to Common Stockholders
Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends.
Book Value Per Share, Excluding AOCI
Book value per share, excluding AOCI, is calculated based upon a non-GAAP financial measure.
It is calculated by dividing (a) stockholders’ equity, excluding AOCI and preferred stock, by (b) common shares outstanding.
Book value per share is the most directly comparable GAAP measure.
Adjusted Book Value Per Share
Adjusted book value per share is calculated based upon a non-GAAP financial measure.
It is calculated by dividing (a) stockholders’ equity, excluding AOCI, preferred stock, changes in MRBs, guaranteed living benefit (“GLB”) and guaranteed death benefit (“GDB”) hedge instruments gains (losses), and the difference between amounts recognized in net income (loss) on reinsurance-related embedded derivatives and the underlying asset portfolios (“reinsurance-related embedded derivatives and portfolio gains (losses)”) by (b) common shares outstanding.
Book value per share is the most directly comparable GAAP measure.
Other Definitions
Holding Company Available Liquidity
Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of commercial paper outstanding.
Sales
Sales as reported consist of the following:
Annuities and Retirement Plan Services – deposits from new and existing customers;
Universal life insurance (“UL”), indexed universal life insurance (“IUL”), variable universal life insurance (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;
MoneyGuard®linked-benefit products – MoneyGuard® (UL) and MoneyGuard Market Advantage®(VUL), 150% of commissionable premiums;
Executive Benefits – insurance and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess premium received, and single premium bank-owned UL and VUL, 15% of single premium deposits;
Term – 100% of annualized first-year premiums; and
Group Protection – annualized first-year premiums from new policies.
Lincoln National Corporation
Reconciliation of Net Income (Loss) to Adjusted Income (Loss) from Operations and
Average Stockholders’ Equity to Adjusted Average Stockholders’ Equity
For the
For the
(in millions, except per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Net Income (Loss) Available to Common Stockholders – Diluted
$
411
$
(562
)
$
343
$
1,511
Less:
Preferred stock dividends declared
(34
)
(34
)
(80
)
(80
)
Adjustment for deferred units of LNC stock in our deferred compensation plans
—
—
—
3
Net Income (Loss)
445
(528
)
423
1,588
Less:
Net annuity product features, pre-tax (1)
410
(381
)
(277
)
1,319
Net life insurance product features, pre-tax
(22
)
(125
)
(37
)
(253
)
Credit loss-related adjustments, pre-tax
(38
)
(88
)
(91
)
(124
)
Investment gains (losses), pre-tax
(35
)
(105
)
(218
)
(416
)
Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans, pre-tax (2)
(191
)
(446
)
(266
)
(51
)
Gains (losses) on other non-financial assets – sale of subsidiaries/businesses, pre-tax (3)
—
(2
)
—
582
Other items, pre-tax (4)(5)(6)(7)(8)
(105
)
(19
)
(65
)
(238
)
Income tax benefit (expense) related to the above pre-tax items
(5
)
246
194
(202
)
Total adjustments
14
(920
)
(760
)
617
Adjusted Income (Loss) from Operations
$
431
$
392
$
1,183
$
971
Add:
Preferred stock dividends declared
(34
)
(34
)
(80
)
(80
)
Adjusted Income (Loss) from Operations Available to Common Stockholders
$
397
$
358
$
1,103
$
891
Earnings (Loss) Per Common Share – Diluted (9)
Net income (loss)
$
2.12
$
(3.29
)
$
1.87
$
8.75
Adjusted income (loss) from operations
2.04
2.06
6.01
5.16
Stockholders’ Equity, Average
Stockholders’ equity
$
10,000
$
8,481
$
9,034
$
7,816
Less:
Preferred stock
986
986
986
986
AOCI
(4,116
)
(3,526
)
(4,379
)
(3,800
)
Stockholders’ equity, excluding AOCI and preferred stock
13,130
11,021
12,427
10,630
Changes in MRBs
3,002
2,410
2,717
2,288
GLB and GDB hedge instruments gains (losses)
(3,654
)
(2,767
)
(3,326
)
(2,623
)
Reinsurance-related embedded derivatives and portfolio gains (losses)
(245
)
(455
)
(203
)
(462
)
Adjusted average stockholders’ equity
$
14,027
$
11,833
$
13,239
$
11,427
(1)
For the three months ended September 30, 2025 and 2024, includes changes in MRBs of $337 million and $(666) million, respectively; changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits of $30 million and $188 million, respectively; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $43 million and $97 million, respectively. For the nine months ended September 30, 2025 and 2024, includes changes in MRBs of $(33) million and $1,354 million, respectively; changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits of $(307) million and $(350) million, respectively; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $63 million and $315 million, respectively.
(2)
Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction.
(3)
Relates to the sale of our wealth management business, which provided approximately $650 million of statutory capital benefit.
(4)
Includes certain legal accruals of $(9) million for the three and nine months ended September 30, 2025; and $(114) million for the nine months ended September 30, 2024, primarily related to the settlement of cost of insurance litigation in the first quarter of 2024.
(5)
Includes severance expense related to initiatives to realign the workforce of $(5) million and $(16) million for the three months ended September 30, 2025 and 2024, respectively, and $(13) million and $(72) million for the nine months ended September 30, 2025 and 2024, respectively.
(6)
Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives consisting of $(55) million of transaction costs related to restructuring certain captive reinsurance subsidiaries and $(22) million related to Life Insurance segment persistency optimization for the three months ended September 30, 2025; $(2) million related to the sale of our wealth management business for the three months ended September 30, 2024; for the nine months ended September 30, 2025, includes $(55) million of transaction costs related to restructuring certain captive reinsurance subsidiaries, $(22) million related to Life Insurance segment persistency optimization, $(20) million related to the sale of our wealth management business and $(18) million primarily related to the Bain Capital transaction; for the nine months ended September 30, 2024, includes $(39) million primarily related to the sale of our wealth management business.
(7)
Includes deferred compensation mark-to-market adjustment of $(14) million and $(1) million for the three months ended September 30, 2025 and 2024, respectively, and $(22) million and $(13) million for the nine months ended September 30, 2025 and 2024, respectively.
(8)
Includes gains on early extinguishment of debt of $94 million for the nine months ended September 30, 2025.
(9)
In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted EPS calculations, as the use of diluted shares would result in a lower loss per share.
Lincoln National Corporation
Reconciliation of Book Value per Share
As of the Three Months Ended
9/30/24
12/31/24
3/31/25
6/30/25
9/30/25
Book Value Per Common Share
Book value per share
$
46.97
$
42.60
$
41.96
$
44.91
$
49.56
Less:
AOCI
(15.70
)
(29.46
)
(25.08
)
(23.04
)
(20.10
)
Book value per share, excluding AOCI
62.67
72.06
67.04
67.95
69.66
Less:
Changes in MRBs
12.56
18.51
12.42
15.05
16.42
GLB and GDB hedge instruments gains (losses)
(16.17
)
(17.91
)
(17.43
)
(18.89
)
(19.40
)
Reinsurance-related embedded derivatives and portfolio gains (losses)
(3.76
)
(0.88
)
(1.14
)
(0.98
)
(1.59
)
Adjusted book value per share
$
70.04
$
72.34
$
73.19
$
72.77
$
74.23
Lincoln National Corporation
Digest of Earnings
For the
For the
(in millions, except per share data)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Revenues
$
4,555
$
4,111
$
13,290
$
13,380
Net Income (Loss)
$
445
$
(528
)
$
423
$
1,588
Preferred stock dividends declared
(34
)
(34
)
(80
)
(80
)
Adjustment for deferred units of LNC stock in our deferred compensation plans (1)
—
—
—
3
Net Income (Loss) Available to Common Stockholders – Diluted
$
411
$
(562
)
$
343
$
1,511
Net Income (Loss) Per Common Share – Basic
$
2.15
$
(3.29
)
$
1.90
$
8.85
Net Income (Loss) Per Common Share – Diluted (2)
$
2.12
$
(3.29
)
$
1.87
$
8.75
Average Shares – Basic
190,826,396
170,773,438
179,845,834
170,482,264
Average Shares – Diluted
194,304,105
172,848,870
182,851,283
172,767,554
(1)
We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation.
(2)
In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted diluted EPS calculations, as the use of diluted shares would result in a lower loss per share.
FORWARD-LOOKING STATEMENTS – CAUTIONARY LANGUAGE
Certain statements made in this press release and in other written or oral statements made by Lincoln or on Lincoln’s behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in Lincoln’s businesses, prospective services or products, future performance or financial results and the outcome of contingencies, such as legal proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.
Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:
Weak general economic and business conditions that may affect demand for our products, account balances, investment results, guaranteed benefit liabilities, premium levels and claims experience;
Adverse global capital and credit market conditions that may affect our ability to raise capital, if necessary, and may cause us to realize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition and ability to raise additional capital or refinance existing debt as it matures;
The inability of our subsidiaries to pay dividends to the holding company in sufficient amounts, which could harm the holding company’s ability to meet its obligations;
Legislative, regulatory or tax changes, both domestic and foreign, that affect: the cost of, or demand for, our subsidiaries’ products; the required amount of reserves and/or surplus; our ability to conduct business; our affiliate reinsurance arrangements; and restrictions on the payment of revenue sharing and 12b-1 distribution fees;
Changes in tax law or the interpretation of or application of existing tax laws that could impact our tax costs and the products that we sell;
The impact of regulations adopted by the Securities and Exchange Commission (“SEC”), the Department of Labor or other federal or state regulators or self-regulatory organizations that could adversely affect our distribution model and sales of our products and result in additional disclosure and other requirements related to the sale and delivery of our products;
The impact of new and emerging rules, laws and regulations relating to privacy, cybersecurity and artificial intelligence that may lead to increased compliance costs, reputation risk and/or changes in business practices;
Increasing scrutiny and evolving expectations and regulations regarding ESG matters that may adversely affect our reputation and our investment portfolio;
Actions taken by reinsurers to raise rates on in-force business;
Declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses and demand for our products;
Rapidly increasing or sustained high interest rates that may negatively affect our profitability, value of our investment portfolio and capital position and may cause policyholders to surrender annuity and life insurance policies, thereby causing realized investment losses;
The impact of the implementation of the provisions of the European Market Infrastructure Regulation relating to the regulation of derivatives transactions;
The initiation of legal or regulatory proceedings against us, and the outcome of any legal or regulatory proceedings, such as: adverse actions related to present or past business practices common in businesses in which we compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and class action cases; new decisions that result in changes in law; and unexpected trial court rulings;
A decline or continued volatility in the equity markets causing a reduction in the sales of our subsidiaries’ products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; and an increase in liabilities related to guaranteed benefit riders, which are accounted for as market risk benefits, of our subsidiaries’ variable annuity products;
Ineffectiveness of our risk management policies and procedures, including our various hedging strategies;
A deviation in actual experience regarding future policyholder behavior, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries’ products and in establishing related insurance reserves, which may reduce future earnings;
Changes in accounting principles that may affect our consolidated financial statements;
Lowering of one or more of our debt ratings issued by nationally recognized statistical rating organizations and the adverse effect such action may have on our ability to raise capital and on our liquidity and financial condition;
Lowering of one or more of the insurer financial strength ratings of our insurance subsidiaries and the adverse effect such action may have on the premium writings, policy retention, and profitability of our insurance subsidiaries and liquidity;
Significant credit, accounting, fraud, corporate governance or other issues that may adversely affect the value of certain financial assets, as well as counterparties to which we are exposed to credit risk, requiring that we realize losses on financial assets;
Interruption in or failure of the telecommunication, information technology or other operational systems of the company or the third parties on whom we rely or failure to safeguard the confidentiality or privacy of sensitive data on such systems, including from cyberattacks or other breaches in security of such systems;
The effect of acquisitions and divestitures, including the inability to realize the anticipated benefits of acquisitions and dispositions of businesses and potential operating difficulties and unforeseen liabilities relating thereto, as well as the effect of restructurings, product withdrawals and other unusual items;
The inability to realize or sustain the benefits we expect from, greater than expected investments in, and the potential impact of efforts related to, our strategic initiatives;
The adequacy and collectability of reinsurance that we have obtained;
Pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely impact liabilities for policyholder claims and adversely affect our businesses and the cost and availability of reinsurance;
Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that our subsidiaries can charge for their products;
The unknown effect on our subsidiaries’ businesses resulting from evolving market preferences and the changing demographics of our client base; and
The unanticipated loss of key management or wholesalers.
The risks and uncertainties included here are not exhaustive. Our most recent Form 10-K, as well as other reports that we file with the SEC, include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.
Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, Lincoln disclaims any obligation to correct or update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.
The reporting of Risk-Based Capital (“RBC”) measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.
HONG KONG–(BUSINESS WIRE)– AM Best has maintained its stable outlook on Taiwan’s non-life insurance segment, noting that premium growth prospects remain robust and are supported by steady economic conditions and strong insurance demand.
Also underpinning the stable outlook, as detailed in the Best’s Market Segment Report, “Market Segment Outlook: Taiwan Non-Life Insurance”, are insurers’ healthy operating profitability in 2024 and regulatory initiatives that support improvements in underwriting strategies.
According to the report, Taiwan’s non-life segment achieved double-digit growth in direct premiums written during the first half of 2025, continuing the growth momentum of the past two years. Despite concern about rising tariffs, economic growth has remained resilient. “While Taiwan should continue to benefit from its leading position in the manufacturing of AI-related products, uncertainties in global demand and U.S. trade policy, especially for the technology sector, cloud the outlook,” said Madison Fan, financial analyst, AM Best.
Exposure to natural catastrophes, which can create volatility in underwriting results, and capital market disruptions and exchange rate fluctuations also partially offset the market positives.
The report states that Taiwan’s non-life industry recorded good underwriting margins over the past two years, with the average return-on-equity (ROE) ratio in 2024 reaching 16%. Following the adverse pandemic losses, the industry players have strengthened their underwriting strategies. Additionally, regulatory updates for electric vehicle (EV) motor insurance and medical insurance are supportive of improving the quality of underwritten risks.
Taiwan’s insurance industry will simultaneously roll out its new generation solvency regime, known locally as TW-ICS, alongside the adoption of IFRS 17 by 2026. Under the new solvency regime, insurers are required to use fair value measurements for assets and liabilities to provide a more-realistic basis for assessing financial strength and risk exposure. Non-life insurance companies’ net assets reported under IFRS 17 are not expected to deviate significantly compared with IFRS 4, while assets and liabilities are expected to moderately decrease.
“While the transitions to new accounting and solvency standards may bring additional operating costs over the short term, AM Best-rated non-life companies are not likely to face solvency pressure under the upcoming new solvency regime,” said James Chan, director, analytics, AM Best.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Strategic capital supports Axonic Insurance’s continued annuity product innovation and global distribution expansion
NEW YORK–(BUSINESS WIRE)–
Axonic Insurance, a global annuity and insurance platform, today announced a $210 million preferred equity investment led by LuminArx Capital Management (“LuminArx”), a global capital solutions provider, with participation from Deutsche Bank.
Axonic Insurance is an innovative insurance platform that designs, distributes, issues, and manages annuity and related product offerings for individual consumers and institutions worldwide. Launched in 2024, Axonic Insurance is a wholly owned subsidiary of Axonic Capital, an investment management firm with $7 billion in assets under management specializing in structured credit and commercial and residential real estate debt and equity.
The investment from LuminArx and Deutsche Bank will support Axonic Insurance’s continued growth across retail and institutional distribution channels while also enabling it to further accelerate technology development and enhance product servicing capabilities.
Clayton DeGiacinto, Managing Partner and Co-Chief Investment Officer at Axonic Capital, said, “Axonic Insurance manufactures and distributes competitive annuity products supported by the high-quality cash flows and differentiated return streams available in structured credit markets where Axonic has especially deep expertise. We’re grateful to LuminArx and Deutsche Bank for their partnership and shared conviction in advancing that goal as Axonic Insurance enters its next phase of disciplined, scalable growth.”
Michael Gordon, CEO of Axonic Insurance, said, “Axonic Insurance manufactures and distributes annuities and related insurance products for consumers and institutions. Today’s transaction marks a significant milestone in the evolution of our company. In the past year, we have seen rapid growth of annuity sales, and that is a direct result of the efforts of our highly qualified, experienced, and committed team and distribution partners. We greatly appreciate LuminArx’s ability to engage rapidly and thoughtfully in support of our growth strategy. Their team understood our priorities from the outset and provided a capital solution tailored to our needs. As we enter this next stage of growth, I am grateful to have such uniquely capable capital partners, LuminArx and Deutsche Bank, who are fully aligned with our vision.”
Sanjeev Mordani, Partner at LuminArx, added, “We are excited to support Axonic Insurance in this next phase of growth as it builds on recent momentum. From our earliest conversations, the Axonic Insurance team demonstrated a clear strategic vision, a disciplined and creative approach to business development, and deep understanding of their end markets. The innovative, scalable platform Clay and Michael have built embodies the core qualities we look for when backing an insurance platform, and we look forward to partnering with them.”
Philippe Kremer, Head of FIG Structuring & Solutions at Deutsche Bank, added, “Axonic Insurance has significantly expanded its footprint in the FA and FIA space and achieved impressive growth in a short period of time. The experienced leadership team has managed to differentiate itself through its innovative setup and efficient operations.”
Stephen Wollman, Head of North American FIC Structuring at Deutsche Bank, added, “We are excited to be a part of the next chapter of Axonic Insurance and are pleased to bring together two of our clients – Axonic Capital and LuminArx – in one transaction.”
Deutsche Bank Securities Inc. (“DBSI”) acted as the sole structuring and placement agent for this transaction on behalf of Axonic Insurance and an affiliate of DBSI participated in the capital raise. The transaction was led by Deutsche Bank’s FIG Structuring & Solutions team which structures and arranges bespoke capital and financing transactions for its global FIG client base.
Latham and Watkins served as legal counsel to Axonic Insurance. Willkie Farr & Gallagher LLP served as legal counsel to Deutsche Bank and LuminArx. Debevoise & Plimpton LLP acted as legal counsel to LuminArx.
About Axonic Insurance
Axonic Insurance – led by Michael Gordon CEO, Robert Painter CFO, and a highly experienced management team – designs, distributes, and services annuity and investment plans for consumers worldwide.
Axonic Insurance refers to a group of affiliated legal entities organized under Axonic Insurance Holdings Inc. of Delaware that collectively specialize in designing, distributing, and servicing annuity and other investment products for individuals and institutions worldwide. Axonic Insurance Services LLC (“Axonic”), an insurance producer licensed in all fifty states and the District of Columbia, acts as a business process outsourcer, including for the US-issued annuities underwritten by the non-affiliated AmFirst Life Insurance Company, an Oklahoma domiciled life insurance company (“AmFirst”). AmFirst Insurance Company operates as AmFirst Life Insurance Company in California. Axonic Services LLC, a Puerto Rico limited liability company for profit, services the non US-issued annuities underwritten by its affiliated underwriter, Axonic Insurance Company SPC, a Class B(iii) insurer in the Cayman Islands licensed under the Cayman Islands Insurance Act, 2010 (as amended), as well as the non-affiliated AmFirst Life Insurance Company I.I., a corporation licensed as a Class 5 International Insurer and Segregated Assets Plan Company under Chapter 61 of the Insurance Code of Puerto Rico (“ALIC”). Axonic has ownership interests in segregated accounts of ALIC, which provide reinsurance coverage to AmFirst and other third-party insurers. Axonic Annuity and Life Insurance Company, a Texas domiciled life insurance company is an affiliate of Axonic.
Founded in 2010, Axonic Capital is a New York-based alternative investment manager with $7 billion in assets under management. The firm has deep expertise in structured credit, commercial and residential real estate debt and equity, and systematic fixed income. Axonic’s flexible capital base includes private limited partnerships, separate accounts, insurance company mandates, and publicly listed fund structures. For additional information, visit axoniccap.com.
About LuminArx Capital Management
LuminArx Capital Management is a global alternative investment manager focused on providing innovative, flexible, and strategic capital solutions. The Firm targets consistent returns across market environments, prioritizing downside protection, retaining upside participation, and maintaining minimal correlation with traditional markets. LuminArx leverages a diverse ecosystem of relationships across banks, corporations, governments, and insurance companies, and partners with leading institutional investors across the globe.
About Deutsche Bank
Deutsche Bank provides retail and private banking, corporate and transaction banking, lending, asset and wealth management products and services as well as focused investment banking to private individuals, small and medium-sized companies, corporations, governments and institutional investors. Deutsche Bank is the leading bank in Germany with strong European roots and a global network. Deutsche Bank’s FIG Structuring & Solutions business structures and arranges bespoke capital and financing transactions for its global FIG client base.
HONG KONG–(BUSINESS WIRE)– AM Best has maintained its stable outlook on China’s non-life insurance segment, citing sustained premium growth supported by new energy vehicles (NEVs), health reforms and emerging product developments, as well as supportive regulatory policies and initiatives to foster market development.
The Best’s Market Segment Report, “Market Segment Outlook: China Non-Life Insurance,” states that concerns about China’s economic momentum have emerged due to lower GDP growth forecasts through 2030, along with a slowdown in credit and export growth and persistent weakness in the property sector. At the same time, China’s non-life insurance segment has demonstrated resilience amid persistent uncertainty, albeit experiencing a moderate slowdown in direct premiums written growth in recent years. Although the growth in non-motor lines has outpaced the motor segment as insurers have actively diversified their portfolios, the gap is narrowing as rising NEV sales has benefitted the motor segment, while economically sensitive lines like commercial property, engineering, and liability reflect the broader slowdown.
“The surge in new energy vehicles sales has driven higher demand for NEV motor insurance. However, while premiums for NEVs have been rising, industry data shows higher loss frequency and severity as compared with internal combustion engine vehicles — the former linked to driver inexperience and the latter to higher repair and replacement costs — and this contributed to overall insurance losses in 2024,” said Lucie Huang, senior financial analyst, AM Best.
Non-life insurers also have expanded coverage into emerging sectors such as green energy, the low-altitude economy (e.g., drones and related liabilities), and high-tech manufacturing. Furthermore, the country’s focus on sustainability is driving demand for liability products like safety production and environmental pollution insurance. In addition, according to the report, the adoption of digitalisation, automation and Chinese-developed AI tools has accelerated, supporting functions from client servicing, underwriting and auto-quotations to claims handling, fraud detection, and back-office operations. These technologies have boosted operational efficiency, though they also introduce associated risks.
“With subdued economic growth and an increasingly competitive landscape, smaller insurers face challenges in maintaining profitability and market share,” said James Chan, director, analytics, AM Best. “Over the long term, AM Best expects that non-life insurers with refined business-line management and a strong focus on efficiency are more likely to sustain their position in the market.”
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Net income attributable to Prudential Financial, Inc. of $1.431 billion or $4.01 per Common share versus net income of $448 million or $1.24 per share for the year-ago quarter.
After-tax adjusted operating income of $1.521 billion or $4.26 per Common share versus $1.208 billion or $3.33 per sharefor the year-ago quarter.
Book value per Common share of $90.69 versus $84.47 per share for the year-ago quarter; adjusted book value per Common share of $99.25 versus $98.71 per share for the year-ago quarter.
Parent company highly liquid assets(1) of $3.9 billion versus $4.3 billion for the year-ago quarter.
Assets under management(2) of $1.612 trillion versus $1.558 trillion for the year-ago quarter.
Capital returned to shareholders of $731 million, including $250 million of share repurchases and $481 million of dividends, versus $721 million in the year-ago quarter. Dividends paid in the third quarter were $1.35 per Common share, representing a yield on adjusted book value of over 5%.
Andy Sullivan, CEO, commented on results:
“Our third quarter adjusted operating income earnings per share reached a record-high, up 28% from the year-ago quarter, driven by earnings growth in every business. This performance reflects continued momentum in sales and flows, as well as favorable market conditions, resulting in year-to-date adjusted operating return on equity of over 15%.
We also made significant progress advancing our efforts to deliver greater long-term value for our shareholders. We are quickly evolving to a unified asset manager model in PGIM and have taken actions to drive margin expansion. We are also addressing the global retirement opportunity with an increasingly diverse set of products and solutions for our customers. These actions will support our growth in areas where we have differentiated capabilities and positions us to be a global leader in investment, insurance, and retirement security.”
NEWARK, N.J.–(BUSINESS WIRE)–
Prudential Financial, Inc. (NYSE: PRU) today reported third quarter results. Net income attributable to Prudential Financial, Inc. was $1.431 billion ($4.01 per Common share) for the third quarter of 2025, compared to net income of $448 million ($1.24 per Common share) for the third quarter of 2024. After-tax adjusted operating income was $1.521 billion ($4.26 per Common share) for the third quarter of 2025, compared to $1.208 billion ($3.33 per Common share) for the third quarter of 2024.
Consolidated adjusted operating income and adjusted book value are non-GAAP measures. A discussion of these measures, including definitions thereof, how they are useful to investors, and certain limitations thereof, is included later in this press release under “Non-GAAP Measures,” and reconciliations to the most comparable GAAP measures are provided in the tables that accompany this release.(3)
RESULTS OF ONGOING OPERATIONS
The Company’s ongoing operations include PGIM, U.S. Businesses, International Businesses, and Corporate & Other. In the following business-level discussion, adjusted operating income refers to pre-tax results.
PGIM
PGIM, the Company’s global investment management business, reported adjusted operating income of $244 million for the third quarter of 2025, compared to $241 million in the year-ago quarter. This increase primarily reflects higher asset management fees, higher other related revenues, driven by higher agency earnings and seed and co-investment income, and a gain from the sale of our Taiwan business, partially offset by higher expenses, including a reorganization charge.
PGIM assets under management of $1.470 trillion were up 5% from the year-ago quarter driven by equity market and fixed income appreciation and net inflows. Total net flows in the quarter of $2.4 billion reflect affiliated net inflows of $1.8 billion and third-party net inflows of $0.6 billion. Third-party institutional and retail inflows were both $0.3 billion, mainly driven by fixed income inflows, partially offset by equity outflows.
U.S. Businesses
U.S. Businesses reported adjusted operating income of $1.149 billion for the third quarter of 2025, compared to $1.040 billion in the year-ago quarter. This increase primarily reflects higher net investment spread results, including higher alternative investment income, and more favorable underwriting results, partially offset by lower net fee income, driven by the run-off of our legacy traditional variable annuity block, and higher expenses to support business growth.
Retirement Strategies, consisting of Institutional Retirement Strategies and Individual Retirement Strategies, reported adjusted operating income of $966 million for the third quarter of 2025, compared to $898 million in the year-ago quarter.
Institutional Retirement Strategies:
Reported adjusted operating income of $480 million in the current quarter, compared to $438 million in the year-ago quarter. This increase primarily reflects higher net investment spread results, including higher alternative investment income, partially offset by less favorable underwriting results and higher expenses to support business growth.
Net account values of $299 billion increased 7% from the year-ago quarter, reflecting business growth and market appreciation. Sales in the current quarter of $6.4 billion include a jumbo pension risk transfer transaction of $2.3 billion and longevity risk transfer transactions totaling $1.5 billion. Year-to-date sales totaled $22.3 billion.
Individual Retirement Strategies:
Reported adjusted operating income of $486 million in the current quarter, compared to $460 million in the year-ago quarter. This increase primarily reflects higher net investment spread results, including higher alternative investment income, partially offset by lower net fee income, driven by the run-off of our legacy traditional variable annuity block.
Net account values of $136 billion increased 6% from the year-ago quarter, driven by market appreciation and net inflows from registered index-linked and fixed annuity products, partially offset by net outflows from the run-off of our legacy traditional variable annuity block. Year-to-date sales of $10 billion decreased 4% from prior year-to-date, mainly due to lower sales of registered index-linked annuities.
Group Insurance:
Reported adjusted operating income of $90 million in the current quarter, compared to $82 million in the year-ago quarter. This increase primarily reflects more favorable group life underwriting results.
Year-to-date sales of $555 million increased 14% from prior year-to-date, driven by growth in both group life and disability.
Individual Life:
Reported adjusted operating income of $93 million in the current quarter, compared to $60 million in the year-ago quarter. This increase primarily reflects more favorable underwriting results, partially offset by lower net investment spread results.
Year-to-date sales of $686 million increased 18% from prior year-to-date, primarily driven by higher variable life sales.
International Businesses
International Businesses reported adjusted operating income of $881 million for the third quarter of 2025, compared to $766 million in the year-ago quarter. This increase primarily reflects higher net investment spread results, including higher alternative investment income, and more favorable underwriting results, partially offset by higher expenses to support business growth.
Year-to-date constant dollar basis sales(4) of $1.7 billion increased 4% from prior year-to-date, driven by growth in Japan and Brazil.
Corporate & Other
Corporate & Other reported a loss, on an adjusted operating income basis, of $327 million for the third quarter of 2025, compared to a loss of $487 million in the year-ago quarter. This lower loss primarily reflects lower expenses and favorable foreign exchange remeasurement impacts.
NET INCOME
Net income in the current quarter included $574 million of pre-tax net realized investment losses and related charges and adjustments, including $114 million of pre-tax net credit-related losses, $36 million of pre-tax losses related to market experience updates, $324 million of pre-tax gains related to net change in value of market risk benefits, and $133 million of pre-tax earnings from divested and run-off businesses.
Net income for the year-ago quarter included $737 million of pre-tax net realized investment losses and related charges and adjustments, including $93 million of pre-tax net credit-related losses, $146 million of pre-tax losses related to net change in value of market risk benefits, $127 million of pre-tax losses related to market experience updates, and $49 million of pre-tax earnings from divested and run-off businesses.
EARNINGS CONFERENCE CALL
Members of Prudential’s senior management will host a conference call on Thursday, October 30, 2025, at 11:00 a.m. ET to discuss with the investment community the Company’s third quarter results. The conference call will be broadcast live over the Company’s Investor Relations website at investor.prudential.com. Please log on 15 minutes early in the event necessary software needs to be downloaded. Institutional investors, analysts, and other interested parties are invited to listen to the call by dialing one of the following numbers: (877) 407-8293 (domestic) or (201) 689-8349 (international). A replay will also be available on the Investor Relations website through November 13. To access a replay via phone starting at 3:00 p.m. ET on October 30 through November 13, dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13755673.
FORWARD-LOOKING STATEMENTS
Certain of the statements included in this release, including those regarding long-term value for our shareholders, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Prudential Financial, Inc. and its subsidiaries. Prudential Financial, Inc.’s actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Statements” sections included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The forward-looking statements herein are subject to the risk, among others, that we will be unable to execute our strategy because of market or competitive conditions or other factors. Prudential Financial, Inc. does not undertake to update any particular forward-looking statement included in this document.
NON-GAAP MEASURES
Consolidated adjusted operating income and adjusted book value are non-GAAP measures. Reconciliations to the most directly comparable GAAP measures are included in this release.
We believe that our use of these non-GAAP measures helps investors understand and evaluate the Company’s performance and financial position. The presentation of adjusted operating income as we measure it for management purposes enhances the understanding of the results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described below. Adjusted book value augments the understanding of our financial position by providing a measure of net worth that is primarily attributable to our business operations separate from the portion that is affected by capital and currency market conditions, and by isolating the accounting impact associated with insurance liabilities that are generally not marked to market and the supporting investments that are marked to market through accumulated other comprehensive income under GAAP. However, these non-GAAP measures are not substitutes for income and equity determined in accordance with GAAP, and the adjustments made to derive these measures are important to an understanding of our overall results of operations and financial position. The schedules accompanying this release provide reconciliations of non-GAAP measures with the corresponding measures calculated using GAAP. Additional historic information relating to our financial performance is located on our website at investor.prudential.com.
Adjusted operating income is a non-GAAP measure used by the Company to evaluate segment performance and to allocate resources. Adjusted operating income excludes “Realized investment gains (losses), net, and related charges and adjustments”. A significant element of realized investment gains and losses are impairments and credit-related and interest rate-related gains and losses. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to our discretion and influenced by market opportunities as well as capital and other factors.
Realized investment gains (losses) within certain businesses for which such gains (losses) are a principal source of earnings, and those associated with terminating hedges of foreign currency earnings and current period yield adjustments, are included in adjusted operating income. Adjusted operating income generally excludes realized investment gains and losses from products that contain embedded derivatives, and from associated derivative portfolios that are part of an asset-liability management program related to the risk of those products. Adjusted operating income also excludes gains and losses from changes in value of certain assets and liabilities relating to foreign currency exchange movements that have been economically hedged or considered part of our capital funding strategies for our international subsidiaries, as well as gains and losses on certain investments that are designated as trading. Adjusted operating income also excludes investment gains and losses on assets supporting experience-rated contractholder liabilities and changes in experience-rated contractholder liabilities due to asset value changes, because these recorded changes in asset and liability values are expected to ultimately accrue to contractholders. Adjusted operating income excludes the changes in fair value of equity securities that are recorded in net income. Additionally, adjusted operating income excludes the impact of annual assumption updates and other refinements included in the above items.
Adjusted operating income excludes “Change in value of market risk benefits, net of related hedging gains (losses)”, which reflects the impact from changes in current market conditions, and market experience updates, reflecting the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which we believe enhances the understanding of underlying performance trends. Adjusted operating income also excludes the results of Divested and Run-off Businesses, which are not relevant to our ongoing operations, and discontinued operations and earnings attributable to noncontrolling interests, each of which is presented as a separate component of net income under GAAP. Additionally, adjusted operating income excludes other items, such as certain components of the consideration for acquisitions, which are recognized as compensation expense over the requisite service periods, and goodwill impairments. Earnings attributable to noncontrolling interests is presented as a separate component of net income under GAAP and excluded from adjusted operating income. The tax effect associated with pre-tax adjusted operating income is based on applicable IRS and foreign tax regulations inclusive of pertinent adjustments.
Adjusted operating income does not equate to “Net income” as determined in accordance with U.S. GAAP. Adjusted operating income is not a substitute for income determined in accordance with U.S. GAAP, and our definition of adjusted operating income may differ from that used by other companies. The items above are important to an understanding of our overall results of operations. However, we believe that the presentation of adjusted operating income as we measure it for management purposes enhances the understanding of our results of operations by highlighting the results from ongoing operations and the underlying profitability of our businesses. Trends in the underlying profitability of our businesses can be more clearly identified without the fluctuating effects of the items described above.
Adjusted book value is calculated as total equity (GAAP book value) excluding accumulated other comprehensive income (loss), the cumulative change in fair value of funds withheld embedded derivatives, and the cumulative effect of foreign currency exchange rate remeasurements and currency translation adjustments corresponding to realized investment gains and losses. These items are excluded in order to highlight the book value attributable to our core business operations separate from the portion attributable to external and potentially volatile capital and currency market conditions.
FOOTNOTES
(1)
Highly liquid assets predominantly include cash, short-term investments, U.S. Treasury securities, obligations of other U.S. government authorities and agencies, and/or foreign government bonds. For more information about highly liquid assets, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
(2)
For more information about assets under management, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Segment Measures” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
(3)
While not a traditional U.S. GAAP measure, adjusted operating income is the Company’s segment performance measure, which is required to be disclosed by U.S. GAAP in accordance with FASB Accounting Standards Codification (ASC) 280 – Segment Reporting. Where presented by segment, we have provided a reconciliation to the corresponding consolidated U.S. GAAP total in accordance with the disclosure requirements as articulated in ASC 280.
(4)
For more information about constant dollar basis sales, see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations by Segment – International Businesses” included in Prudential Financial, Inc.’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
Prudential Financial, Inc. (NYSE: PRU), a global financial services leader and premier active global investment manager with approximately $1.6 trillion in assets under management as of September 30, 2025, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential’s iconic Rock symbol has stood for strength, stability, expertise, and innovation for 150 years. For more information, please visit news.prudential.com.
Financial Highlights
(in millions, unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Adjusted operating income (loss) before income taxes (1):
PGIM
$
244
$
241
$
629
$
616
U.S. Businesses
1,149
1,040
3,035
2,868
International Businesses
881
766
2,490
2,364
Corporate and Other
(327
)
(487
)
(1,022
)
(1,293
)
Total adjusted operating income (loss) before income taxes
$
1,947
$
1,560
$
5,132
$
4,555
Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments
$
(574
)
$
(737
)
$
(1,336
)
$
(625
)
Change in value of market risk benefits, net of related hedging gains (losses)
324
(146
)
(453
)
(320
)
Market experience updates
(36
)
(127
)
45
(112
)
Divested and Run-off Businesses:
Closed Block division
10
2
(30
)
(61
)
Other Divested and Run-off Businesses
123
47
84
50
Equity in earnings of joint ventures and other operating entities and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
(11
)
(43
)
(26
)
(113
)
Other adjustments (2)
(1
)
(3
)
26
(16
)
Total reconciling items, before income taxes
(165
)
(1,007
)
(1,690
)
(1,197
)
Income (loss) before income taxes and equity in earnings of joint ventures and other operating entities
$
1,782
$
553
$
3,442
$
3,358
Income Statement Data:
Net income (loss) attributable to Prudential Financial, Inc.
$
1,431
$
448
$
2,671
$
2,784
Income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests
52
3
120
(11
)
Net income (loss)
1,483
451
2,791
2,773
Less: Earnings attributable to noncontrolling interests and redeemable noncontrolling interests
52
3
120
(11
)
Income (loss) attributable to Prudential Financial, Inc.
1,431
448
2,671
2,784
Less: Equity in earnings of joint ventures and other operating entities, net of taxes and earnings attributable to noncontrolling interests and redeemable noncontrolling interests
31
35
13
119
Income (loss) (after-tax) before equity in earnings of joint ventures and other operating entities
1,400
413
2,658
2,665
Less: Total reconciling items, before income taxes
(165
)
(1,007
)
(1,690
)
(1,197
)
Less: Income taxes, not applicable to adjusted operating income (loss)
(44
)
(212
)
(355
)
(342
)
Total reconciling items, after income taxes
(121
)
(795
)
(1,335
)
(855
)
After-tax adjusted operating income (loss) (1)
1,521
1,208
3,993
3,520
Income taxes, applicable to adjusted operating income
426
352
1,139
1,035
Adjusted operating income (loss) before income taxes (1)
$
1,947
$
1,560
$
5,132
$
4,555
See footnotes on last page.
Financial Highlights
(in millions, except per share data, unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Earnings per share of Common Stock:
Net income (loss) attributable to Prudential Financial, Inc.
$
4.01
$
1.24
$
7.44
$
7.64
Less: Reconciling Items:
Realized investment gains (losses), net, and related charges and adjustments
(1.63
)
(2.05
)
(3.77
)
(1.74
)
Change in value of market risk benefits, net of related hedging gains (losses)
0.92
(0.41
)
(1.28
)
(0.89
)
Market experience updates
(0.10
)
(0.35
)
0.13
(0.31
)
Divested and Run-off Businesses:
Closed Block division
0.03
0.01
(0.08
)
(0.17
)
Other Divested and Run-off Businesses
0.35
0.13
0.24
0.14
Difference in earnings allocated to participating unvested share-based payment awards
0.01
0.02
0.04
0.02
Other adjustments (2)
—
(0.01
)
0.07
(0.04
)
Total reconciling items, before income taxes
(0.42
)
(2.66
)
(4.65
)
(2.99
)
Less: Income taxes, not applicable to adjusted operating income (loss)
(0.17
)
(0.57
)
(0.96
)
(0.96
)
Total reconciling items, after income taxes
(0.25
)
(2.09
)
(3.69
)
(2.03
)
After-tax adjusted operating income (loss)
$
4.26
$
3.33
$
11.13
$
9.67
Weighted average number of outstanding common shares – basic
351.1
356.9
352.8
358.3
Weighted average number of outstanding common shares – diluted
353.0
358.7
354.7
359.9
For earnings per share of Common Stock calculation:
Net income (loss) attributable to Prudential Financial, Inc.
$
1,431
$
448
$
2,671
$
2,784
Less: Earnings allocated to participating unvested share-based payment awards
15
5
31
33
Net income (loss) attributable to Prudential Financial, Inc. for earnings per share of Common Stock calculation
$
1,416
$
443
$
2,640
$
2,751
After-tax adjusted operating income (loss) (1)
$
1,521
$
1,208
$
3,993
$
3,520
Less: Earnings allocated to participating unvested share-based payment awards
17
13
46
41
After-tax adjusted operating income (loss) for earnings per share of Common Stock calculation (1)
$
1,504
$
1,195
$
3,947
$
3,479
Prudential Financial, Inc. Equity (as of end of period):
GAAP book value (total PFI equity) at end of period
$
32,094
$
30,416
Less: Accumulated other comprehensive income (AOCI)
(3,175
)
(4,844
)
GAAP book value excluding AOCI
35,269
35,260
Less: Cumulative change in fair value of funds withheld embedded derivatives
(47
)
(238
)
Less: Cumulative effect of foreign exchange rate remeasurement and currency translation adjustments corresponding to realized gains (losses)
192
(49
)
Adjusted book value
$
35,124
$
35,547
End of period number of common shares – diluted
353.9
360.1
GAAP book value per common share – diluted
$
90.69
$
84.47
GAAP book value excluding AOCI per share – diluted
$
99.66
$
97.92
Adjusted book value per common share – diluted
$
99.25
$
98.71
See footnotes on last page.
Financial Highlights
(in millions, or as otherwise noted, unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
PGIM:
PGIM:
Assets Managed by PGIM (in billions, as of end of period) (3):
Institutional customers – Third Party
$
654.9
$
610.3
Retail customers – Third Party
265.2
245.1
Affiliated
549.9
544.5
Total PGIM
$
1,470.0
$
1,399.9
Institutional Customers – Assets Under Management (in billions) (3):
Gross additions, excluding money market
$
18.8
$
15.7
$
64.7
$
77.8
Net additions (withdrawals), excluding realizations, distributions and money market
$
0.3
$
(2.2
)
$
10.5
$
19.5
Retail Customers – Assets Under Management (in billions):
Gross additions, excluding money market
$
16.2
$
16.4
$
49.9
$
46.6
Net additions (withdrawals), excluding money market
$
0.3
$
1.3
$
(2.7
)
$
1.2
Affiliated – Assets Under Management (in billions) (3):
Gross additions, excluding money market
$
15.8
$
23.7
$
56.2
$
69.7
Net additions (withdrawals), excluding realizations, distributions and money market
$
1.8
$
6.5
$
2.3
$
15.6
U.S. Businesses:
Retirement Strategies:
Institutional Retirement Strategies:
Gross additions
$
6,353
$
11,081
$
22,258
$
26,082
Net additions (withdrawals)
$
(107
)
$
4,462
$
3,631
$
6,882
Total account value at end of period, net
$
298,603
$
278,767
Individual Retirement Strategies:
Actively-Sold Protected Investment and Income Solutions and, Discontinued Traditional VA and Guaranteed Living Benefits:
Gross sales (4)
$
3,378
$
3,618
$
9,986
$
10,402
Sales, net of full surrenders and death benefits
$
227
$
763
$
1,348
$
2,209
Total account value at end of period, net
$
136,272
$
128,825
Group Insurance:
Annualized New Business Premiums (5):
Group life
$
36
$
35
$
296
$
251
Group disability
42
28
259
236
Total
$
78
$
63
$
555
$
487
Individual Life:
Annualized New Business Premiums (5):
Term life
$
37
$
34
$
108
$
99
Universal life
30
19
78
61
Variable life
186
157
500
420
Total
$
253
$
210
$
686
$
580
International Businesses:
International Businesses:
Annualized New Business Premiums (5)(6):
Actual exchange rate basis
$
555
$
588
$
1,672
$
1,624
Constant exchange rate basis
$
553
$
588
$
1,680
$
1,617
See footnotes on last page.
Financial Highlights
(in billions, as of end of period, unaudited)
September 30,
2025
2024
Assets and Assets Under Management and Administration:
Total assets (3)
$
776.3
$
760.4
Assets under management (at fair market value):
PGIM
$
1,470.0
$
1,399.9
U.S. Businesses
115.9
128.6
International Businesses
19.8
18.1
Corporate and Other
6.3
11.3
Total assets under management
1,612.0
1,557.9
Assets under administration
194.6
189.8
Total assets under management and administration
$
1,806.6
$
1,747.7
See footnotes on last page.
(1)
Adjusted operating income is a non-GAAP measure of performance. See NON-GAAP MEASURES within the earnings release for additional information.
(2)
Represents adjustments not included in the above reconciling items, including certain components of consideration for business acquisitions, which are recognized as compensation expense over the requisite service periods.
(3)
Prior period amounts have been updated to conform to current period presentation.
(4)
Includes Prudential FlexGuard and FlexGuard Income, Prudential Premier Investment, MyRock, Private Placement Variable Annuity and all fixed annuity products. Excludes discontinued traditional variable annuities and guaranteed living benefits.
(5)
Premiums from new sales are expected to be collected over a one-year period. Group insurance annualized new business premiums exclude new premiums resulting from rate changes on existing policies, from additional coverage issued under our Servicemembers’ Group Life Insurance contract, and from excess premiums on group universal life insurance that build cash value but do not purchase face amounts. Group insurance annualized new business premiums include premiums from the takeover of claim liabilities. Excess (unscheduled) and single premium business for the Company’s domestic individual life and international operations are included in annualized new business premiums based on a 10% credit.
(6)
Actual amounts reflect the impact of currency fluctuations. Constant amounts reflect foreign denominated activity translated to U.S. dollars at uniform exchange rates for all periods presented, including Japanese yen 143 per U.S. dollar. U.S. dollar-denominated activity is included based on the amounts as transacted in U.S. dollars.
OLDWICK, N.J.–(BUSINESS WIRE)– AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Town & Country Life Insurance Company (Town & Country) (Salt Lake City, UT). The outlook of these Credit Ratings (ratings) is stable. Concurrently, AM Best has withdrawn the ratings as the company has requested to no longer participate in AM Best’s interactive rating process.
AM Best’s procedure is for a final rating opinion to be produced in conjunction with a rating withdrawal. The ratings reflect Town & Country’s balance sheet strength, which AM Best assessed as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management
The affirmation of the ratings also reflects risk-adjusted capital at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), with liquidity metrics that compare favorably with industry averages. Invested assets are conservatively invested, though there are some concentrated positions. Financial leverage also exists within the capital structure, but it remains at appropriate levels. Though Town & Country’s operations have been somewhat volatile in recent years, the company has generated positive net income in each of the last five years. Underwriting performance has been pressured in recent years due to elevated loss trends associated with its dental products; however, the company’s group medical business will drive earnings going forward due to a reinsurance deal completed with the University of Utah Health Plan in 2024. Net premium written is expected to increase significantly because of the deal, with premiums up 105% year over year through the second quarter of 2025.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
