Lincoln National Corporation';s Board of Directors Authorizes $1.5 Billion Repurchase Authorization

Rhea-AI Summary

Lincoln Financial Group (NYSE: LNC) announced an increase in its securities repurchase authorization to $1.5 billion. This allows for ongoing share repurchases and debt reduction, aligning with previously discussed reinsurance plans. The repurchase program has no expiration and will depend on key capital ratios and free cash flow. Share repurchases may occur through open market purchases or private transactions, and the program could be modified or halted at any time. This move aims to enhance shareholder value and financial flexibility.

Positive

• Increased repurchase authorization to $1.5 billion enhances shareholder value.
• Program allows share repurchases and debt paydown, indicating confidence in financial health.

Negative

• No specific timeline provided for share repurchases, introducing uncertainty.
• Potential financial strain if significant debt repayment occurs concurrently with buybacks.

RADNOR, Pa.--(BUSINESS WIRE)-- Lincoln Financial Group (NYSE: LNC) today announced that the board of directors of Lincoln National Corporation has authorized an increase to the company’s securities repurchase authorization, bringing the total aggregate authorization to $1.5 billion.

This authorization provides additional capacity to execute our previously communicated plans for incremental and ongoing share repurchases as well as debt paydown, which management discussed on the call related to the reinsurance transaction with Resolution Life held on September 17, 2021 and on the company’s third quarter earnings call held on Thursday, November 4, 2021.

The repurchase authorization does not have an expiration date. The amount and timing of share repurchases depends on key capital ratios, rating agency expectations, the generation of free cash flow and an evaluation of the costs and benefits associated with alternative uses of capital. Our stock repurchases may be effected from time to time through open market purchases or in privately negotiated transactions and may be made pursuant to an accelerated share repurchase agreement or plans designed to comply with Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended. The purchase program may be suspended, modified or terminated at any time.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $322 billion in end-of-period account values as of September 30, 2021. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, we earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index, and rank among Newsweek’s Most Responsible Companies. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.

Forward-Looking Statements – Cautionary Language

Certain statements made in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, performance or financial results, including our plans to repurchase shares and debt, and the timing thereof. Our most recent Annual Report on Form 10-K, as well as other reports that we file with the SEC, include risk factors that could affect our future actions, businesses and financial performance and results. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors or to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we disclaim any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211112005697/en/

Al Copersino

(203) 257-4493

Investor Relations

InvestorRelations@LFG.com



Holly Fair

(484) 583-1632

Media Relations

Holly.Fair@LFG.com

Source: Lincoln Financial Group

FAQ

What is the new share repurchase authorization amount for LNC?

Lincoln Financial Group has authorized an increase to the share repurchase amount, totaling $1.5 billion.

How will the repurchase program affect LNC's stock price?

The repurchase program is expected to enhance shareholder value, which may positively influence LNC's stock price over time.

Is there an expiration for LNC's share repurchase program?

No, the repurchase authorization does not have an expiration date.

What factors will influence LNC's decision on share buybacks?

The timing of share repurchases will depend on capital ratios, free cash flow generation, and costs associated with alternative uses of capital.