Lincoln Financial Group (LNC) has reported 32.86 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $190 million, or $0.82 a share in the quarter, compared with $283 million, or $1.14 a share for the same period last year.
Revenue during the quarter went up marginally by 2.59 percent to $3,254 million from $3,172 million in the previous year period. Net premium earned for the quarter declined 13.21 percent or $112 million to $736 million.
Total expenses move up
Operating income for the quarter was $204 million, compared with $351 million in the previous year period. Net investment income was at $1,244 million for the quarter, up 3.67 percent or $44 million from year-ago period. Meanwhile, income from fees and commission for the quarter increased by 20.52 percent or $229 million to $1,345 million. The company has booked a loss on investments of $25 million in the quarter compared with a loss of $16 million for the previous year period.
"Another quarter of strong earnings capped a solid year as we generated record operating EPS, a 9% increase in book value per share, and a 12% ROE," said Dennis R. Glass, president and chief executive officer of Lincoln Financial Group. "We continue to be confident in our ability to grow EPS through organic growth, expense management, and capital deployment while an improved outlook for the U.S. economy provides an incremental tailwind."
Assets outpace liabilities growth
Total assets increased 3.85 percent or $9,690 million to $261,627 million on Dec. 31, 2016. On the other hand, total liabilities were at $247,149 million as on Dec. 31, 2016, up 3.70 percent or $8,829 million from year-ago. Return on assets stood at 0.12 percent in the quarter, down 0.02 from 0.14 percent in the last year period. At the same time, return on equity was at 1.31 percent in the quarter, down 0.77 from 2.08 percent in the last year period.
Investments move up marginally
Investments stood at $106,721 million as on Dec. 31, 2016, up 4.42 percent or $4,513 million from year-ago. Meanwhile, yield on investments went down 1 basis points to 1.17 percent in the quarter. Net premiums and other receivables increased 14.36 percent or $54 million over the year to $430 million on Dec. 31, 2016. Meanwhile, reinsurance recoverables moved down 6.37 percent or $358 million over the year to $5,265 million on Dec. 31, 2016.
Liability for future policy benefits, unpaid claims and claims adjustment expense was at $21,576 million as on Dec. 31, 2016, up 4.19 percent or $868 million from year-ago.
Total debt was at $5,345 million as on Dec. 31, 2016, down 3.75 percent or $208 million from year-ago. Shareholders equity stood at $14,478 million as on Dec. 31, 2016, up 6.32 percent or $861 million from year-ago. As a result, debt to equity ratio went down 4 basis points to 0.37 percent in the quarter from 0.41 percent in the last year period.
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