Lincoln National Corporation (LNC): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of Lincoln National Corporation, and honestly, figuring out how they actually make money is key. After two decades analyzing firms like this, I can tell you their engine runs on a dual track: selling protection and income products while expertly managing a massive investment portfolio. Look at the figures: with $18.35 billion in Trailing Twelve Months revenue ending September 2025 and an Estimated Risk-Based Capital (RBC) ratio well over 420%, they are certainly well-capitalized. But the real story is how they structure those key partnerships, manage mortality risk with reinsurers, and shift sales toward capital-efficient products like RILA annuities. Dive into the canvas below to see the precise architecture behind this financial giant's strategy.

Lincoln National Corporation (LNC) - Canvas Business Model: Key Partnerships

You're mapping out the core relationships Lincoln National Corporation (LNC) relies on to execute its strategy as of late 2025. These aren't just vendors; they are capital providers, risk managers, and distribution multipliers. Honestly, the depth of these alliances is what really moves the needle on their balance sheet and market reach.

Strategic Equity and Asset Management Alliances

The partnership with Bain Capital is a cornerstone, providing both direct capital and enhanced asset management capabilities. This deal closed in the second half of 2025, giving Lincoln National Corporation a significant cash injection and access to private asset classes.

• Bain Capital invested $825 million for a 9.9% common equity stake in Lincoln National Corporation.
• The equity was sold at $44.00 per share, a 25% premium to the April 8, 2025, 30-day average.
• A 10-year, non-exclusive investment management relationship is in place, with Bain Capital managing assets across private credit, structured assets, mortgage loans, and private equity.
• The capital is earmarked to accelerate progress toward a target leverage ratio of 25%.

The collaboration with Partners Group focuses on expanding investment solutions for clients. They are launching an evergreen fund targeting private markets royalties, set to be available in late 2025.

• The fund, the Lincoln Partners Group Royalty Fund, offers exposure to a diversified, cross-sector royalty portfolio.
• Partners Group employs a relative value strategy across sectors like pharmaceuticals, entertainment, energy transition, sports, and brands.
• This move is designed to give individual investors access to strategies historically limited to institutional or high-net-worth investors.

Risk Management and Capital Optimization

Managing risk, especially mortality and longevity exposure, is critical for any insurer. Lincoln National Corporation actively uses reinsurance to optimize its capital structure and reduce volatility. They are also building internal capacity.

The focus is on optimizing the mix of internal and external reinsurance while retaining a greater portion of spread-based earnings. This strategy aims for more predictable and resilient cash flows. For context on risk performance, the Life Insurance segment reported a life loss ratio of 67.2% for the second quarter of 2025, an improvement from 75.6% in the second quarter of 2024. Furthermore, the company cited progress in launching a Bermuda-based reinsurance subsidiary as part of its capital deployment plans.

Distribution and Servicing Networks

Distribution relies heavily on external networks for retail products, while internal/partnered entities handle the administrative backbone of the Retirement Plan Services segment.

Independent broker-dealers are the primary channel for retail life and annuity products, with Lincoln Financial Distributors, Inc. acting as the wholesale distribution affiliate. An affiliate, Lincoln Investment, showed strong standing in the independent broker-dealer space as of mid-2025.

For the Retirement Plan Services business, third-party administrators (TPAs) are key for servicing and recordkeeping, especially for Pooled Employer Plans, where TPAs are explicitly noted as non-affiliates. Lincoln Retirement Services Company, LLC handles many administrative and recordkeeping functions under the Lincoln Alliance® program.

Here's a quick look at the scale and standing of these operational partners based on late 2025 data:

The Retirement Plan Services segment is still navigating stable value outflows, but Q3 2025 saw operating income of $46 million, up 5% year-over-year, driven by spread expansion. Total deposits for that quarter hit $5.0 billion, with first-year sales up almost 50% year-over-year to $2.4 billion. Finance: review the Q4 2025 TPA service level agreement compliance rates by next Tuesday.

Lincoln National Corporation (LNC) - Canvas Business Model: Key Activities

You're looking at the core actions Lincoln National Corporation (LNC) is taking to drive profitability and manage risk as of late 2025. These activities show a clear pivot toward capital-efficient products and disciplined asset management.

Investment portfolio management centers on maintaining a high-quality asset base to support policyholder obligations. The General Account remains defensively positioned, leveraging a multi-manager platform for research and asset sourcing. A key metric here is the quality of the fixed income holdings.

This high-grade positioning is designed to seek stable returns while preserving capital for policyholders.

Product mix diversification involves actively shifting sales toward products that require less capital to hold, primarily in the Annuities segment. The focus is clearly on spread-based products over flow reinsurance arrangements. Annuities sales hit $4.5 billion in the third quarter of 2025, marking a 32% increase year-over-year. Honestly, the shift is working.

• Spread-based products (RILA, Fixed) accounted for more than 60% of total Annuity sales in Q3 2025.
• RILA sales in Q2 2025 reached $1.5 billion.
• Lifetime RILA sales have surpassed $29 billion across the product's history.
• The business line including RILAs and variable annuities represents at least a third of total sales.

Strategic capital allocation is being executed following a major capital event. The partnership with Bain Capital closed on June 5, 2025, involving an $825 million strategic growth investment where Bain acquired a 9.9% stake by purchasing approximately 18.8 million shares at $44.00 per share. This capital provides flexibility to pursue strategic goals.

• Capital deployment is planned over the next 18 months.
• The transaction provides flexibility to accelerate progress toward the 25% leverage ratio target.
• The company targets 45-60% free cash flow conversion by 2026.

Underwriting and risk management shows tangible results in the Life Insurance block. Pricing and managing insurance risk is a core activity, and the numbers reflect improved experience. The Group Protection segment margin also saw movement.

The Life Insurance operating income improved by $40 million compared to the prior-year quarter. That's defintely a win for the underwriting team.

Operational efficiency efforts are aimed at optimizing the operating model, which includes expense control. Management expected 100 basis points of margin improvement in 2025 from strategic efforts across the business. Lower net G&A expenses were specifically cited as a driver for the Life Insurance segment's improved operating income in Q3 2025. Finance: draft 13-week cash view by Friday.

Lincoln National Corporation (LNC) - Canvas Business Model: Key Resources

You're looking at the core assets Lincoln National Corporation (LNC) relies on to execute its business strategy as of late 2025. These aren't just line items; they are the engines and foundations of the entire operation.

Financial Capital

The balance sheet strength is paramount for an insurer, and Lincoln National Corporation maintains a very solid buffer. The estimated Risk-Based Capital (RBC) ratio ended Q3 2025 well above the 420% level, indicating a strong excess capital position above their target buffer. This level of capital allows for strategic deployment and weathering of unexpected shocks.

• Estimated RBC Ratio (Q3 2025): Above 420%
• Statutory Capital (Q3 2025): $10.4B

Investment Portfolio

The investment portfolio is a massive, diversified asset base that generates critical Net Investment Income to support underwriting liabilities. The scale of this asset base is reflected in the income it produces. Here's a look at the income generated and the asset allocation breakdown we see in the filings.

Here's the quick math on investment income for the recent quarters:

What this estimate hides is the precise mix of assets, but the known components show a broad spread:

• Annuities Account Balances (Net of Reinsurance): $174 billion (Q3 2025)
• Asset Class Exposure (Partial): 2% Energy, 3% Alts, 4% Banking

Account Balances

The total assets under management or administration are a direct measure of client trust and scale in the core insurance and retirement businesses. You can see the significant asset base managed by Lincoln National Corporation.

The figure reported at the end of the first quarter of 2025 shows the sheer volume of client assets being managed across the enterprise.

• End-of-Period Account Balances (Net of Reinsurance): $312 billion (As of March 31, 2025)
• Total Deposits (Q3 2025): $5.0 billion

Human Capital

The expertise of the workforce drives product development, underwriting, and distribution. While the company has been streamlining its structure, the core team remains a vital resource.

The workforce size as of the end of 2024, which you are tracking for 2025 planning, is noted below. If onboarding takes 14+ days, churn risk rises.

• Workforce Size: Approximately 9,783 employees (As of December 31, 2024)
• Revenue Per Employee (2024): $1,883,471

Proprietary Distribution

Control over how products reach the customer is a significant competitive advantage, ensuring alignment between product design and sales execution. Lincoln National Corporation maintains its own dedicated distribution arms.

These networks are the primary channels for moving the company's products to market.

• Key Distribution Subsidiaries: Lincoln Financial Distributors
• Key Advisory Network: Lincoln Financial Advisors

Finance: draft 13-week cash view by Friday.

Lincoln National Corporation (LNC) - Canvas Business Model: Value Propositions

Long-term financial security: Providing protection and income solutions for retirement and life events.

• Quarterly cash dividend affirmed at $0.45 per share as of August 14.
• Record annuities account balances reached $174 billion, net of reinsurance, as of Q3 2025.
• Lifetime RILA sales have surpassed $29 billion.
• Estimated RBC ratio was more than 420% at the end of Q2 2025.
• As of December 31, 2024, approximately 17 million customers trusted Lincoln National Corporation solutions.

Diversified product suite: A single source for annuities, life insurance, group benefits, and retirement plans.

Lincoln National Corporation reports operating income across its four core segments as of Q3 2025:

Total revenue for the trailing twelve months was $18.456 billion.

Capital-efficient products: Offering products like RILA and fixed annuities with lower capital strain.

• Lincoln Level Advantage 2SM index-linked annuity named 2025 Most Innovative Product, Annuities by SRP Americas.
• Spread-based products comprised more than 60% of total Annuities sales in Q3 2025.
• The company stated a strategy shift to keep more fixed annuity business on its own books, which requires capital.

Consultative guidance: Support for financial professionals to meet complex client needs.

The company's Annuities segment generated Q3 2025 sales of $4.5 billion, an increase of 32% year over year. Life Insurance total sales were $298 million, more than doubling compared to the prior-year quarter.

Integrated workplace solutions: Comprehensive group protection and retirement plan services for employers.

• Group Protection Loss Ratio for Q3 2025 was 68.3%.
• Retirement Plan Services reported net inflows of $0.8 billion in Q3 2025.
• Total deposits for Retirement Plan Services in Q3 2025 were $5.0 billion, up 20% over the prior-year quarter.

Lincoln National Corporation (LNC) - Canvas Business Model: Customer Relationships

You're managing relationships across millions of customers and thousands of institutional plans, so the scale of engagement matters. Lincoln National Corporation, operating as Lincoln Financial, serves a vast base, which requires a tiered approach to service delivery.

Dedicated financial professional support: High-touch service is channeled through a network of financial professionals. For instance, among clients age 55+, a strong 83% report discussing an investment strategy for retirement savings with their financial professional. This indicates a high level of engagement on core planning topics. However, the depth of discussion on specific risks shows room for growth; only 21% of respondents working with a financial professional say they have discussed long-term care planning with them as of October 2025. This highlights a key area where the consultative model is being directed for deeper client penetration.

Digital self-service: While specific active user counts for the Lincoln Finance app aren't public, the overall scale suggests significant digital interaction is necessary. The company supports approximately 17 million customers as of December 31, 2024, across its core businesses. The sheer volume of policyholders and plan participants necessitates robust online portals for routine tasks and account management.

Relationship management: Engagement with large employers and institutional plan sponsors is reflected in the performance of the Retirement Plan Services (RPS) segment. Total deposits for RPS increased by 8% year-over-year in the first quarter of 2025, and this growth accelerated to a 10% increase in total deposits in the second quarter of 2025. Operating earnings for RPS were $37 million in the second quarter of 2025. End-of-period account balances for the company overall reached $347 billion as of September 30, 2025, up from $312 billion on March 31, 2025.

Long-term policyholder service: Managing policies over decades is central to the life insurance and annuity businesses. The company's scale is evident in its balance sheet metrics, which reflect long-term obligations and assets under management. The company's focus on improving service and product value is reflected in segment results, such as Life Insurance achieving positive operating earnings of $32 million in the second quarter of 2025, a $67 million increase from the prior-year quarter.

Proactive communication: Management actively communicates performance and market context to stakeholders, which filters down to client-facing guidance. For example, Group Protection delivered a record quarter for earnings, with operating earnings of $173 million in Q2 2025, up 33% year-over-year, and the margin increased by 250 basis points to 12.5%. Annuities sales were $4.0 billion in Q2 2025, showing continued product relevance even amid market conditions. The firm's Consumer Sentiment Tracker, surveyed in October 2025, showed 82% of respondents were concerned about paying for long-term care services, providing a data point for proactive advisor outreach.

Here are the key scale and performance metrics related to customer-facing operations as of mid-to-late 2025:

The distribution network is clearly being pushed toward more direct engagement, as evidenced by the focus on financial professional discussions.

• Only 14% have talked about long-term care insurance with their professional.
• Only 7% have discussed elder care planning with their professional.
• Annuity sales increased 33% year-over-year in Q1 2025, reaching $3.8 billion.

Finance: draft 13-week cash view by Friday.

Lincoln National Corporation (LNC) - Canvas Business Model: Channels

You're looking at how Lincoln National Corporation (LNC) gets its products-annuities, life insurance, group protection, and retirement plans-into the hands of its approximately 17 million customers as of December 31, 2024. The channel strategy relies on a mix of captive, independent, and digital avenues.

Financial Professionals

This group is central to retail sales for life insurance and annuities. While the exact count of affiliated financial professionals isn't public, their activity drives significant top-line results. For instance, in the second quarter of 2025 (Q2 2025), Annuities segment sales grew by 5% year-over-year, reaching $4.0 billion. By the third quarter of 2025 (Q3 2025), Annuities sales had surged even further to $4.5 billion. Life Insurance sales also saw momentum, increasing 15% year-over-year in Q2 2025, totaling $121 million. Furthermore, research conducted in October 2025 indicated that 82% of Americans are concerned about long-term care costs, presenting a clear opportunity for these professionals to engage clients.

Independent Broker-Dealers

This external network is key for broad product distribution across the retail lines. The company emphasizes building a distribution footprint that sits closer to the financial professional for sharper insights and efficiency. The results show broad-based momentum, with total sales increasing 15% year-over-year in Q2 2025.

Direct-to-Employer

This channel targets the Group Protection and Retirement Plan Services segments. The Group Protection business delivered record earnings in Q2 2025, with operating earnings up 33% year-over-year to $173 million. Premiums for Group Protection were 7% higher year-over-year in Q2 2025. For Retirement Plan Services, total deposits for Q2 2025 were $3.6 billion, a 10% increase from the prior-year period.

Digital Platforms

The corporate website serves as the primary digital touchpoint for customers and advisors seeking information and access. Earnings materials, including the Statistical Supplement, are made available on the Investor Relations web page at www.lincolnfinancial.com/investor. Webcasts for conference calls are broadcast live at www.lincolnfinancial.com/webcast.

Third-Party Distribution

This involves various brokers and consultants, particularly for institutional sales, though specific financial metrics tied directly to this channel are not explicitly detailed in the latest reports. The overall strategy involves diversifying across market segments, including growing local markets within Group Protection. The firm, as of 2025, employs approximately 9,783 people across its operations.

Here's a snapshot of the financial performance tied to the products distributed through these channels in mid-2025:

The company is also executing a long-term partnership with Bain Capital, which involves managing at least $20 billion in assets over six years, which will certainly impact third-party asset management and distribution relationships.

Lincoln National Corporation (LNC) - Canvas Business Model: Customer Segments

You're looking at the client base for Lincoln National Corporation (LNC) as of late 2025, and the numbers show a focus on both individual wealth accumulation and employer-sponsored benefits.

As of December 31, 2024, approximately 17 million customers trusted Lincoln National Corporation (LNC) across its core businesses, with end-of-period account balances reaching $331 billion as of June 30, 2025. The TTM revenue ending September 30, 2025, was approximately $18.35 billion.

Here is a breakdown of the key customer groups and associated financial metrics from the latest available reports:

Key Customer Segments and Financial Indicators (Late 2025 Data)

The Annuities segment, which serves many pre-retirees and mass affluent individuals, saw sales surge by 32% year-over-year in Q3 2025. Spread-based products comprised more than 60% of the total Annuity sales mix in that quarter.

For the employer-focused segments, Retirement Plan Services reported net inflows of $0.8 billion in Q3 2025. The Group Protection business, which serves employers with disability and life coverage, delivered operating income of $173 million in Q2 2025, with a margin of 12.5% in that same period. The disability loss ratio for Group Protection improved to 64.2% in Q2 2025.

The Life Insurance segment, serving individuals including those utilizing executive benefits, showed significant improvement, achieving operating income of $54 million in Q3 2025, driven by favorable mortality. Sales in this segment more than doubled year-over-year in Q3 2025.

Based on FY 2024 data published in early 2025, Lincoln National Corporation (LNC) held specific market positions relevant to these segments:

• Annuities: Ranked #3 in Variable Annuity sales.
• Retirement Plan Services: Ranked #7 in the 401(k) market based on sales.
• Group Protection: Ranked #3 in Long-term Disability and #2 in Short-term Disability.
• Life Insurance: Ranked #2 in Hybrid (Life Long-Term Care) sales.

The overall holding company available liquidity was $461 million as of September 30, 2025.

Finance: draft 13-week cash view by Friday.

Lincoln National Corporation (LNC) - Canvas Business Model: Cost Structure

You're looking at the cost side of Lincoln National Corporation's (LNC) business, which, as you know, is dominated by what they owe policyholders and managing the massive reserves needed to back those promises. Honestly, for an insurer, the claims and benefits line is the one that keeps the actuaries up at night.

Policyholder Benefits and Claims

This is defintely the largest cost component, representing the money paid out for life insurance claims, annuity benefits, and group protection losses. While the direct total cost isn't explicitly broken out in the latest filings for the full year 2025, we can track the underlying health through loss ratios and segment profitability.

• Life Insurance loss ratio improved to 65.3% in Q3 2025, down from 71.8% in Q3 2024.
• Group Protection disability loss ratio was 64.2% for the second quarter of 2025.
• Life Insurance segment posted operating income of $54 million in the third quarter of 2025.
• The Group Protection segment achieved an operating margin of 12.5% in Q2 2025.

The company is actively managing this by focusing on risk-sharing products and improving mortality experience. Still, the Group Protection disability loss ratio climbing to 76.7% signals persistent volatility you need to watch.

Interest Expense

Costs tied to debt and capital financing show up here. You mentioned a specific fixed-income offering, but I can only provide the verified interest expense figures from their latest reports. Interest expense has been trending down, which is a good sign for debt management.

Here's the quick math on interest costs as of late 2025:

This sequential decrease in interest expense, as noted in a May 2025 filing, reflects lower outstanding debt and better rates on floating-rate debt.

Operating Expenses

These are your General and Administrative (G&A) costs-salaries, technology spend, and keeping the lights on across the enterprise. Lincoln National Corporation has been focused on driving cost efficiency, which is showing up in the numbers.

• Total operating expenses for the twelve months ending September 30, 2025, were $15.599B.
• Total operating expenses for the full year 2024 were $14.084B.
• Net G&A expenses declined 8% year-over-year as of the May 2025 filing, reflecting 2024 expense actions.

The overall operating margin for the trailing twelve months ending November 2025 was 8.55%, showing management is running the day-to-day business more efficiently than in prior years.

Commissions and Distribution Fees

These are the payments made to the financial professionals and external channels that sell Lincoln National Corporation's products. Direct, consolidated figures for these fees as a total cost are often embedded within broader expense lines, but we know the structure involves significant distribution networks.

• Distribution is a key cost driver for Annuities, where spread-based products comprised more than 60% of Q3 2025 sales.
• Producers selling life and annuity products must comply with AML training requirements set by Lincoln National Corporation.

Hedging Costs

Managing market risk, especially on legacy variable annuity guarantees, requires significant hedging activity, which results in costs or gains/losses on the derivative instruments used. These are often volatile and reported as adjustments to net income rather than standard operating expenses.

For the three months ended June 30, 2025, the changes in the fair value of the related hedge instruments, inclusive of income allocated to support the hedging cost, totaled $(595) million. Also, the Q3 2025 results were partially offset by a decline in the value of related hedge instruments amid higher equity markets.

To give you a clearer picture of the scale of costs relative to revenue, here is a snapshot of key financial metrics as of late 2025:

Finance: draft 13-week cash view by Friday.

Lincoln National Corporation (LNC) - Canvas Business Model: Revenue Streams

You're looking at how Lincoln National Corporation brings in its money as of late 2025. It's a mix of traditional insurance operations and investment earnings, which is typical for a major player in this space.

The core of the business is definitely the premiums collected. For the third quarter of 2025, the revenue from Insurance Premiums, covering Life and Group Protection, landed at approximately $1.64 billion. That's a key metric to watch.

Then there's the money made from managing the float-that is, the premiums collected but not yet paid out as claims. Net Investment Income for Q3 2025 was about $1.54 billion. Honestly, this component is crucial because it shows how effectively Lincoln National Corporation is investing those policyholder funds.

Also contributing significantly is Fee Income, which comes from managing annuities and retirement plan assets. For the same quarter, this stream brought in roughly $1.38 billion. It's a steady flow, reflecting the assets under management.

Here's a quick look at those primary Q3 2025 revenue components:

The overall picture for the last twelve months ending September 30, 2025, shows substantial top-line activity. The Total Trailing Twelve Months (TTM) Revenue for Lincoln National Corporation was approximately $18.35 billion. That's a big number, showing the scale of their operations over the full year.

You've also got to look at sales momentum, especially in the retirement space. The Annuity Sales showed strong movement, surging 32% year-over-year to hit $4.5 billion in Q3 2025. That growth is defintely a positive signal for future fee and spread income.

The sources of this revenue can be broken down further by segment activity:

• Insurance Premiums from Group Protection grew 5% year over year in Q3 2025.
• Total annuity sales reached $4.5 billion in the quarter.
• Spread-based annuity products comprised more than 60% of total annuity sales.
• First-year sales in Retirement Plan Services were up almost 50% year-over-year, reaching $2.4 billion.

Finance: draft 13-week cash view by Friday.