Are Lincoln Financial’s (LNC) Annuity Updates a Sign of Broader Strategy Shifts in Retirement Solutions?

• Earlier this month, Lincoln Financial announced enhancements to its fixed indexed annuities, introducing a 1 Year Cap Lock account linked to the S&P 500 and a 1 Year Participation account for added growth potential and diversification.
• This product update highlights Lincoln's ongoing efforts to innovate within the retirement solutions space, aiming to address greater demand for choice and flexibility among investors.
• Next, we'll explore how Lincoln Financial's expanded fixed indexed annuity options could shape its long-term transformation and revenue outlook.

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Lincoln National Investment Narrative Recap

To be a shareholder in Lincoln National, you need confidence in the company’s ability to balance innovation in retirement products with disciplined risk management amid structural revenue and margin pressures. The latest fixed indexed annuity enhancements point to Lincoln’s continued push for a more capital-efficient business model, but do not materially shift the short-term focus, which remains on execution in core operating segments and mitigating capital strain from legacy variable annuity liabilities, the company’s most pressing risk at present.

One earlier announcement that stands out in light of this product update is the launch of the LVIP American Funds Vanguard Active Passive Growth Fund within Lincoln’s variable annuities, aiming to expand growth and diversification options for policyholders. Both moves underscore Lincoln’s effort to broaden its product suite, supporting the ongoing catalyst of transitioning toward a less capital-intensive, more diversified mix to capture demand in the retirement planning market.

By contrast, investors should be mindful of Lincoln’s persistent exposure to legacy variable annuities with high guaranteed minimum benefits, especially if...

Read the full narrative on Lincoln National (it's free!)

Lincoln National's outlook calls for $21.0 billion in revenue and $1.6 billion in earnings by 2028. This is based on an assumed 5.2% annual revenue growth rate and a $0.6 billion increase in earnings from the current $1.0 billion.

Uncover how Lincoln National's forecasts yield a $41.27 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members value Lincoln National shares between US$28.99 and US$106.16 based on three distinct forecasts. With the company’s ongoing capital shift toward spread-based annuities, these differences show how key risks and growth assumptions truly shape performance outlooks.

Explore 3 other fair value estimates on Lincoln National - why the stock might be worth over 2x more than the current price!

Build Your Own Lincoln National Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lincoln National research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Lincoln National research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lincoln National's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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