LINCOLN NATIONAL CORP [LNC] Filings

10-Q 1 lnc-20210930x10q.htm 10-Q lnc-20210930x10q

__________________________________________________________________________________________________________

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________

FORM 10-Q

_________________

(Mark One)

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2021

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ______ to ______

Commission File Number: 1-6028

_________________

LINCOLN NATIONAL CORPORATION

(Exact name of registrant as specified in its charter)

_________________



Indiana	35-1140070
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

150 N. Radnor-Chester Road, Suite A305, Radnor, Pennsylvania	19087
(Address of principal executive offices)	(Zip Code)

(484) 583-1400

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

__________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock	LNC	New York Stock Exchange

__________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large Accelerated Filer		Accelerated Filer	
Non-accelerated Filer		Smaller Reporting Company	
		Emerging Growth Company	

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨No x

As of November 1, 2021, there were 180,708,687 shares of the registrant’s common stock outstanding.

_________________________________________________________________________________________________________

Lincoln National Corporation

Table of Contents


Item			Page
PART I
1.	Financial Statements		1

2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		54
		Forward-Looking Statements – Cautionary Language	54
		Introduction	55
		Executive Summary	55
		Critical Accounting Policies and Estimates	57
		Acquisitions and Dispositions	59
		Results of Consolidated Operations	60
		Results of Annuities	62
		Results of Retirement Plan Services	67
		Results of Life Insurance	71
		Results of Group Protection	77
		Results of Other Operations	80
		Realized Gain (Loss)	82
		Consolidated Investments	84
		Review of Consolidated Financial Condition	95
		Liquidity and Capital Resources	95

3.	Quantitative and Qualitative Disclosures About Market Risk		99

4.	Controls and Procedures		100

PART II

1.	Legal Proceedings		100

1A.	Risk Factors		100

2.	Unregistered Sales of Equity Securities and Use of Proceeds		101

6.	Exhibits		101

	Exhibit Index for the Report on Form 10-Q		102

	Signatures		103

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

LINCOLN NATIONAL CORPORATION

CONSOLIDATED BALANCE SHEETS

(in millions, except share data)



		As of			As of
	September 30,			December 31,
		2021			2020

	(Unaudited)
ASSETS
Investments:
Fixed maturity available-for-sale securities, at fair value
(amortized cost: 2021 - $107,459; 2020 - $104,174; allowance for credit losses: 2021 - $17; 2020 - $13)		$	122,085		$	123,044
Trading securities			4,191			4,501
Equity securities			243			129
Mortgage loans on real estate, net of allowance for credit losses
(portion at fair value: 2021 - $792; 2020 - $832)			17,730			16,763
Policy loans			2,379			2,426
Derivative investments			4,828			3,109
Other investments			4,069			3,984
Total investments			155,525			153,956
Cash and invested cash			2,614			1,708
Deferred acquisition costs and value of business acquired			5,965			5,812
Premiums and fees receivable			584			486
Accrued investment income			1,297			1,257
Reinsurance recoverables, net of allowance for credit losses			15,729			16,496
Funds withheld reinsurance assets			526			530
Goodwill			1,778			1,778
Other assets			17,367			15,960
Separate account assets			175,667			167,965
Total assets		$	377,052		$	365,948

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future contract benefits		$	40,641		$	40,814
Other contract holder funds			109,297			105,405
Short-term debt			300			-
Long-term debt			6,323			6,682
Reinsurance related embedded derivatives			304			392
Funds withheld reinsurance liabilities			2,078			1,946
Payables for collateral on investments			8,379			6,222
Other liabilities			12,893			13,823
Separate account liabilities			175,667			167,965
Total liabilities			355,882			343,249

Contingencies and Commitments (See Note 11)

Stockholders’ Equity
Preferred stock – 10,000,000 shares authorized			-			-
Common stock – 800,000,000 shares authorized; 186,089,222 and 192,329,691 shares
issued and outstanding as of September 30, 2021, and December 31, 2020, respectively			4,956			5,082
Retained earnings			9,365			8,686
Accumulated other comprehensive income (loss)			6,849			8,931
Total stockholders’ equity			21,170			22,699
Total liabilities and stockholders’ equity		$	377,052		$	365,948

‎

See accompanying Notes to Consolidated Financial Statements

Table of Contents

LINCOLN NATIONAL CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions, except per share data)

LINCOLN NATIONAL CORP [LNC] Filings
10-Q	[2021-11-04]
10-Q	[2021-08-05]
10-Q	[2021-05-06]
10-K	[2021-02-18]
10-Q	[2020-11-05]
10-Q	[2020-08-06]
10-Q	[2020-05-07]
10-K	[2020-02-20]
10-Q	[2019-10-31]
10-Q	[2019-08-01]
10-Q	[2019-05-02]
10-K	[2019-02-20]
10-Q	[2018-11-02]
10-Q	[2018-08-02]
10-Q	[2018-05-03]
10-K	[2018-02-22]
10-Q	[2017-11-02]
10-Q	[2017-08-03]
10-Q	[2017-05-04]
10-K	[2017-02-23]
10-Q	[2016-11-03]
10-Q	[2016-08-04]
10-Q	[2016-05-05]
10-K	[2016-02-25]
10-Q	[2015-10-29]
10-Q	[2015-07-30]
10-Q	[2015-04-30]
10-K	[2015-02-26]
10-Q	[2014-10-30]
10-Q	[2014-07-31]
10-Q	[2014-05-01]
10-K	[2014-02-25]
10-Q	[2013-11-01]
10-Q	[2013-08-01]
10-Q	[2013-05-02]
10-K	[2013-03-01]
10-Q	[2012-11-07]
10-Q	[2012-08-02]
10-Q	[2012-05-03]
10-K	[2012-02-23]