LNC

Lincoln National Corporation has maintained strong preferred dividend coverage despite recent earnings volatility and challenging interest rate conditions. LNC.PR.D preferred shares offer a current yield of 8.73% but trades above par, with a likely call by December 2027 limiting price appreciation. Preferred stock coverage is robust, with net income covering preferred dividends by 26.3x and common equity covering preferred equity by 10.5x.

Lincoln National Corp. issued high-coupon preferred shares after a severe 2022 net loss and capital strain. LNC's financials and capital ratios have improved markedly, with net income rebounding and Fitch affirming investment grade ratings. Management has begun retiring expensive preferreds via tender offers, signaling intent to call LNC.PR.D at the December 2027 call date.

Lincoln National (LNC) remains a 'Buy' with a $55/share price target, reflecting 11–19% annual upside and potential for over 40% total return. LNC's capital restoration, improved RBC ratio above 420%, and robust liquidity over $900M signal a shift from repair to optimization. At ~5x P/E and 0.45x price-to-book (ex-AOCI), LNC trades at a significant discount to peers, with normalized earnings supporting a $70–$75/share fair value.

Life insurers like RGA, LNC and VOYA are seeing growth opportunities from aging demographics, retirement-income needs, protection gaps and continued product innovation.

RGA, LNC and TRV are poised to benefit from the Fed's first rate hike since 2023 as higher yields support insurers' investment income.

LNC is shifting from capital rebuilding to flexibility, with stronger liquidity, lower leverage and new room to pursue growth and returns.

LNC's 25% three-month gain reflects stronger annuity sales, improving Life Insurance results and capital strength, but market risks remain.

Aviva, Reinsurance, Primerica, Voya and Lincoln National have been highlighted in this Industry Outlook article.

Redesigning and repricing of products and services amid a low-rate environment are likely to help Zacks Life Insurance industry players like AVVIY, RGA, PRI, VOYA and LNC. These companies are investing heavily in digitization.

LNC is restarting share buybacks after nearly four years, backed by stronger capital, lower risk and about $714 million left in its program.