Lincoln Financial reports $161M third-quarter loss

Lincoln Financial reported a net loss for the third quarter of 2019 of $161 million, compared to net income in the third quarter of 2018 of $490 million.

Third quarter adjusted loss from operations was $46 million, compared to adjusted income from operations of $510 million in the third quarter of 2018.

The current quarter’s adjusted operating results included net unfavorable notable items of approximately $403 million related to the company’s annual review of DAC (deferred acquisition costs) and reserve assumptions, and approximately $94 million from underperformance in the alternative investment portfolio, largely driven by a write-down of a large private equity investment. The prior-year quarter included net unfavorable items of approximately $2 million, primarily related to the company’s annual review of DAC and reserve assumptions.