things to We to in and morning. X our morning, call. good and everyone Ellen, you, dialing I’m going discuss appreciate listening this everyone. Thank
First, we’ll with and the touch quarter, then financial portfolio. through the on we’ll go up I’ll our around results then investment for finish capital details
common first to adjusted stockholders of So we or let’s operating income million night, start available diluted reported with the quarter financial $X.XX per results. Last $XXX share.
it to as There call these relates are X to results. out items
The below $X.XX alternative that target first investments $XX were is million per or share.
share. million Annuities favorable a had item Second, per $X.XX of our business $XX tax or
first reported Additionally, diluted framework a $XXX $X.XX new the of loss per under or quarter being net to we the common accounting million shareholders this with available share. of LDTI,
net item AOCI. the the adjusted change related valuations. between MRB flows and and that through Offsetting was risk difference loss the market main a in operating favorable instrument is income hedge benefits this The
drivers. to LDTI, due discussed, As with the GAAP volatility expect we’ve of net partly adoption to increase income noneconomic we
to segment turning results. the Now
which the Protection. with Group start Let’s was highlight,
quarter, This driven our due to strategic quarter. by results in improvement business. in was significant prior compared $XX of This $XX operating a million in million Group improved disability income primarily loss reported investments Protection the to year
to declined. the as to heard you’ve turns on has addition, In similar from endemic, what peers, pandemic earnings the our impact
our XX Life Group for have points continued disability an of ratio of XX.X%, XX a by ago, a from year disability and XX.X%, driven improvement loss an in provided was the increased and earlier, from which, we for as return-to-work claims ratio points year over overall points result COVID as as was from The solid expense up loss basis ratio noted The recoveries lower The improvement to claims ago decline. is our primarily claimants. translating is is outcomes strategic profitability. a of year investments ago, XXX I to strong business
to in outcomes a margin value a continue the of will the and year negative claimants. investments X.X% generate these strategic marketplace employers experience margin up both from X.X% result operating customer the for was The and quarter, for a These ago. improve
X% sensitivity are results Group reaching and continue a critical our to and be sustaining to grow of to will in couple path our of to Profitable margin profile diversify and against signs specifically Lincoln’s earnings’ execute look progress, volatility. these decrease upside business to years we continue objectives, our see market strategic to clear while Importantly, and over the next we the we capital target. as growth as long-term help
The lower another turn decline with Lower year in and operating were quarter. values to to $XXX headwinds. income XXXX. reported also $XXX in income account decrease capital prepayment the let’s driven expenses solid markets of Annuities Now higher Annuities. due by the was primarily million the to compared in quarter delivered prior million
intended, in capital hedge continue LINBAR earnings. protecting as it’s to And see program’s and working in repositioned while distributable the the excess Lastly, program our of as result. early a maximizing value is tenure, present capital we
business. we upside to continued see ahead, our Annuities Looking
various Our gives to grow in us diverse with portfolio opportunity capital market efficiency environments. product
blocks Our and capital significant cash generate flow and high-quality hedge explicitly earnings the to program our is from in-force continue power the now company. for capital prioritizing
Retirement million markets income $XX of and $XX turn to Retirement due fee was Let’s in on to lower the prior income, to largely higher income Services. lower impact decline year now compared Plan of quarter. million expenses. equity the operating The prepayment reported
ago. these higher offsetting basis spreads, base Somewhat a XX to year which points were by relative expanded headwinds
the in spread won’t see given digits. expansion the the we expect changes environment, full full year though low be to linear, year, for and rate expect volatile We spread single expansion
which lower income higher expenses, positive should expect despite continues importantly, the business and to help solid business to net back, XXXX, which results, Stepping long underlying to prepayment flows, continue the over through continue and we grow Retirement deliver term. the
a business to operating Insurance. an of earnings million quarter. million Lastly, $XX $XXX a $XX pre-COVID reported year loss was $XXX that let’s in of discuss Life prior year. of Life income compared million generated This the to million operating
it’s so And things. I X think worth walking through
do better First, drivers these decline? of which about what will to next the the are over few second, the years? we then how headwinds think get And
reduced So business follows: but first, last a headwind. and fourth, units, as historically stepping annual to that some through reset reinsurance year, incremental rate $XXX environment major last is the that. become blocks And business a have the of is been life XXXX’s and we’ve the earnings; reinsurance the the $XX run executive other million quarters increase was headwinds to this to similar few annual which in we’ve mostly which $XX $XX few pointed benefits income last to GAAP universal third, business emerged to had million which minimis; have over are assumption by this years earnings million; de then reflection over some nonrecurring, has that in, involving of to a are a the we earnings back, managing few second, seen transaction years, year’s million $XX past million environment expenses impact we’re prepaid costs, rate over
which rate. So to equate to these each the things the half better is in due of from X pre-COVID of get next should few total, half X decline items, largely the over years. Most roughly run the other
so in return a Also contributor annualized. be And our this we given under First, meaningful long-duration can portfolio X% this over the of we time. returned the nature just target a the Life Alt swing annual XX% and a quarter, reserves, quarter-to-quarter. segment, to large
Second, of X Life has on $XX the a approximately negative trailing over COVID impact earnings million. quarters had
a million of discussed, main the Life which the earnings. headwinds impact earnings. a we’ve time negative deferred revenue to XXXX Amortization but endemic, slowly third, seeing Life mortality This relative is currently LDTI turns a the issue. more expected declining driver still million timing of on under elevated is $XXX to is as We’re $XXX year on occurring LDTI, now. mortality has to And is full GAAP pre-COVID some for pandemic negative periods headwind impact as
the of and in deferred And will forward, each this future, a going to continue so headwind. will amortization revenue grow year become less
transaction by roughly while free to week, the million last is earnings $XXX Life to announced cash expected Lastly, $XXX GAAP be annually. dilutive to accretive we flow to million
so of these persist, begin And to portion headwinds year. while a next normalize most will will
confident our profitable today the growth and the about putting to time. on books we feel Importantly, segment generate we business in ability this over are
million continued now ratio sequential comes and the $XXX normal week. increase to impact and environment of flow efficiency. at seasonality an increase of of the management We turmoil on capital remain typical reinsurance capital. in this the with first Let’s transaction before $XXX cash we turn a despite quarter the assuming RBC discussed quarter block free RBC to approximately track actions and is The to ended last credit XXX%. to result in market estimated deliver the year, million markets We
a the reminder, grow by cash $XXX by ongoing a is free close million over year. flow expected As at to XX deal and points increase about RBC
market Despite turbulence, credit solid investments. credit to reported Moving we results.
the is portfolio we of in seventh XX% investment currently our supplement a provided, net see experienced grade, migrations. and you’ll As positive that consecutive rating we quarter
proactive positioning reflects testing credit construction, stress and disciplined management. conservative Our regular portfolio risk
and Now banking turning real to exposure. our commercial estate
banks invested represent regional X% Our across high-quality important just total and trust banks, and bank are systemically diversified global holdings banks. of assets custody and
make loans. X about now would Let’s mortgage here, And I points. commercial talk
have extremely an portfolio, total high-quality we representing of the invested XX% CML assets. First,
on ongoing XXXX underwriting current monitoring stabilized properties high disciplined no since XXX% and CML rate no with focused low is credit with and and coverage processes service fixed modifications. loans Our We strategy senior to losses loan-to-value virtually loan debt maintained rigorous ratios.
and only XX% of and ratio debt X.Xx, no comprised of or currently or direct loan CMX CMX have we equity is X.X% mortgages. exposure. loan-to-value XX% portfolio the approximately CML and The service mortgages, average coverage CMX below XX% Our of mortgages was estate real was transitional
office we portfolio points XXXX, absolute XX% on down basis. years number have exposure, talk Since and from that that’s Second, the XXX both from a perspective office represents let’s exposure. from bit a about our proactively CML and is X an for Office ago. portfolio, away of us mix basis and shifted
ago. positioned conservatively mentioned I Our broader metrics office portfolio similar portfolio as also the is with CML a moment
what more we is total However, our office have portfolio. of total near-term important XXXX XXXX, our loan only in or our is maturities. million and remaining million In of office mortgages $XX even X% from maturities and of only portfolio X% commercial $XXX
it’s nearly well, near-term being maturities on buildings. loans of with that performing loans are noting office with those medical Additionally, half extremely worth high-demand
we commercial and third in about important want other point market. loans, that is particular, The last make I understand office it’s to where to and in mortgage the participate
the middle diversified broadly in been emphasis our have has footprint all and market. a we to capability While markets, lend historically across the
in tend from apartments from with perspective, resulted around a our being a mix to $XX average CML and exposure diversified And highly greater loan office we allocation million. office portfolio industrial So within a this will lower-than-average size portfolio. or our have properties a to perspective,
So the takeaways key to on summarize X CMLs.
have negligible we high-quality CMX exposure or First, below. a with to portfolio
a is strategy office market third, Second, points percentage and near-term industrial we limited higher resulting XXX have reduced basis lending, exposure apartment focused and our very have maturities. middle on our properties. And by proactively of primarily in
listings do filings generally agreements in highlighting not as economic investment is point have statement the in last on and as include our it’s made our well. our Lincoln and I for Lastly, exposure, week, assets to the CML reiterate our portfolio this withheld worth where for a funds as those reinsurance statutory true well on we call both more portfolio asset the
closing, me X let reiterate In points.
encouraged are do headwinds we First, work from an business. to know we quarter earnings addressing have we that in the Life more perspective, our with by the
quality, capital transaction portfolio position investment quarter our results progress improving profile, And week’s progress make cash forward. this step another on We our to time exposure high announcement taking market With areas of and is continue that, free and being now everyone your and to appreciate we me manageable. more the turn showing the the signs questions. to let long-term than of Al. today, third, look forward call to recent are to with concern listen we our very taking our Second, flow and last back
