v3.25.4
Segment Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
We provide products and services and report results through our Annuities, Life Insurance, Group Protection and Retirement Plan Services business segments. We also have Other Operations, which includes the financial results for operations that are not directly related to the business segments. The accounting policies of the business segments and Other Operations are the same as those described in Note 1. Our business segments and Other Operations reflect the manner by which our CODM views and manages the business. Our CODM is the President. The following is a brief description of these segments and Other Operations.

The Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering variable annuities (including RILA) and fixed annuities (including indexed).

The Life Insurance segment focuses on the creation and protection of wealth for its clients by providing life insurance products, including term insurance, both single (including UL, corporate-owned UL and bank-owned UL) and survivorship versions of IUL and VUL products, linked-benefit products (which are UL and VUL with riders providing for long-term care costs), and critical illness and long-term care riders, which can be attached to IUL or VUL policies. We have in-force blocks of UL and VUL products with lifetime secondary guarantees, but we no longer offer new sales of UL and VUL products with lifetime guarantees.

The Group Protection segment offers group non-medical insurance products and services, including short- and long-term disability, statutory disability and paid family medical leave administration and absence management services, term life, dental, vision and accident, critical illness and hospital indemnity benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans.

The Retirement Plan Services segment provides employer-sponsored defined benefit and individual retirement accounts, as well as individual and group variable annuities, group fixed annuities and mutual-fund based programs in the retirement plan marketplace.

Other Operations includes the financial results for operations that are not directly related to our business segments and primarily consists of: investments related to our excess capital; corporate investments; interest expense associated with debt; expenses associated with corporate strategic initiatives; expenses associated with benefit plans; the results of certain disability income business; and our run-off Institutional Pension business in the form of group annuity contracts.

Income (loss) from operations is the internal measure used by our CODM that explains the results of our ongoing operations in a manner that allows for a better understanding of the underlying trends by excluding items that are not necessarily indicative of current operating fundamentals or future performance, and, in most instances, decisions regarding these adjustments do not necessarily relate to the operations of the individual business segments. Income (loss) from operations is used by our CODM to evaluate financial performance, to assess the budgeting and forecasting process and to determine future resource allocation.
Income (loss) from operations is GAAP net income (loss) excluding the following items, as applicable:

•Items related to annuity product features, which include changes in MRBs, income allocated to support the cost of hedging or future benefits, and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products (collectively, “net annuity product features”);
•Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of VUL hedging, changes in reserves resulting from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our IUL contracts and the associated index options we hold to hedge them (collectively, “net life insurance product features”);
•Credit loss-related adjustments on fixed maturity AFS securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”);
•Changes in the fair value of equity securities and certain other investments, the impact of certain derivatives, and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment gains (losses)”);
•Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans”);
•GLB rider fees ceded to LNBAR;
•Income (loss) from the initial adoption of new accounting standards, accounting policy changes and new regulations, including changes in tax law;
•Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
•Losses from the impairment of intangible assets and gains (losses) on other non-financial assets;
•Income (loss) from discontinued operations;
•Other items, which include the following: certain legal and regulatory accruals; severance expense related to initiatives that realign the workforce; transaction, integration and other costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business, and certain other corporate initiatives; mark-to-market adjustment related to the LNC stock component of deferred compensation plans (“deferred compensation mark-to-market adjustment”); gains (losses) on modification or early extinguishment of debt; and impacts from settlement or curtailment of defined benefit obligations; and
•Income tax benefit (expense) related to the above pre-tax items, including the effect of tax adjustments such as changes to deferred tax valuation allowances.

We use our prevailing corporate federal income tax rate of 21% and an estimated state income tax rate, where applicable, net of the impacts related to dividends-received deduction and foreign tax credits and any other permanent differences for events recognized differently in the consolidated financial statements and federal income tax returns.

We do not report total assets by segment because this is not a metric used by the CODM to allocate resources or evaluate segment performance.
The tables below reconcile our internal measure of performance to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss) (in millions):

 
For the Year Ended December 31, 2025
AnnuitiesLife Insurance
Group Protection (1)
Retirement Plan ServicesOther OperationsTotal
Operating Revenues (2)
$4,568 $4,916 $4,745 $1,337 $185 $15,751 
Operating Expenses (3)
Benefits and policyholder liability
remeasurement103 2,603 2,635 – 11 5,352 
Interest credited1,801 903 2 692 80 3,478 
Commissions1,291 326 501 115 5 2,238 
General and administrative expenses532 535 915 342 172 2,496 
Interest and debt expense– – – – 146 146 
Other (4)
(156)330 136 16 3 329 
Total operating expenses3,571 4,697 4,189 1,165 417 14,039 
Total federal income tax expense (benefit)130 19 117 22 (49)239 
Total income (loss) from operations867 200 439 150 (183)1,473 
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (5)
1,175 
Net life insurance product features, pre-tax(80)
Credit loss-related adjustments, pre-tax(134)
Investment gains (losses), pre-tax(36)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (6)
(452)
GLB rider fees ceded to LNBAR, pre-tax(941)
Gains (losses) on other non-financial
assets, pre-tax (7)
(14)
Other items, pre-tax (8)(9)(10)(11)
(154)
Income tax benefit (expense) related to
the above pre-tax items128 
Total net income (loss)$965 

(1)    Reflects the day one impact of the third quarter 2025 reinsurance transaction. For more information, see Note 7.
(2)    See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).
(3)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.
(4)    Other operating expenses include: Annuities: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs and amortization of deferred loss on business sold through reinsurance.
Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; amortization of deferred loss on business sold through reinsurance; expenses associated with reserve financing and LOCs and other intangible amortization.
Group Protection: DAC capitalization and amortization; taxes, licenses and fees; other intangible amortization; amortization of deferred loss on business sold through reinsurance and expenses associated with LOCs.
Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs.
Other Operations: Taxes, licenses and fees; DAC capitalization and amortization and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.
(5)    Includes changes in MRBs of $218 million; income allocated to support the cost of hedging or future benefits of $687 million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $270 million.
(6)    Includes primarily changes in the fair value of embedded derivatives related to affiliate reinsurance transactions.
(7)    Represents impairment of long-lived assets.
(8)    Includes certain legal accruals of $(9) million and regulatory accruals of $2 million.
(9)    Includes severance expense related to initiatives to realign the workforce of $(25) million.
(10)    Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives consisting of $(54) million of transaction costs related to restructuring certain captive reinsurance subsidiaries, $(25) million related to the sale of the wealth management business and $(22) million related to Life Insurance segment persistency optimization.
(11)    Includes deferred compensation mark-to-market adjustment of $(21) million.

For the Year Ended December 31, 2024
AnnuitiesLife Insurance
Group Protection (1)
Retirement Plan ServicesOther OperationsTotal
Operating Revenues (2)
$4,549 $4,988 $1,088 $1,304 $149 $12,078 
Operating Expenses (3)
Benefits and policyholder liability
remeasurement143 2,732 (785)– 6 2,096 
Interest credited1,538 909 6 675 32 3,160 
Commissions1,115 442 415 104 – 2,076 
General and administrative expenses495 554 870 340 182 2,441 
Interest and debt expense– – – – 185 185 
Other (4)
156 194 153 16 3 522 
Total operating expenses3,447 4,831 659 1,135 408 10,480 
Total federal income tax expense (benefit)172 13 90 20 (49)246 
Total income (loss) from operations930 144 339 149 (210)1,352 
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (5)
2,085 
Net life insurance product features, pre-tax(237)
Credit loss-related adjustments, pre-tax(152)
Investment gains (losses), pre-tax(311)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (6)
203 
GLB rider fees ceded to LNBAR, pre-tax(933)
Gains (losses) on other non-financial
 assets, pre-tax (7)
481 
Other items, pre-tax (8)(9)(10)(11)
(144)
Income tax benefit (expense) related to
the above pre-tax items(214)
Total net income (loss)$2,130 

(1)    Reflects the day one impact of the second quarter 2024 reinsurance transaction. For more information, see Note 7.
(2)    See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).
(3)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.
(4)    Other operating expenses include: Annuities: DAC and VOBA capitalization and amortization; broker-dealer expenses before the sale of the wealth management business in the second quarter of 2024; taxes, licenses and fees; expenses associated with reserve financing and LOCs and amortization of deferred loss on business sold through reinsurance.
Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs; amortization of deferred loss on business sold through reinsurance and other intangible amortization.
Group Protection: Taxes, licenses and fees; DAC capitalization and amortization; other intangible amortization; expenses associated with LOCs and amortization of deferred loss on business sold through reinsurance.
Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs.
Other Operations: Taxes, licenses and fees and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.
(5)    Includes changes in MRBs of $929 million; income allocated to support the cost of hedging or future benefits of $676 million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $480 million.
(6)    Includes primarily changes in the fair value of embedded derivatives related to affiliate reinsurance transactions.
(7)    Relates to the sale of the wealth management business.
(8)    Includes certain legal accruals of $(18) million and regulatory accruals of $(12) million related to estimated state guaranty fund assessments net of estimated state premium tax recoveries associated with the Bankers Life Insurance Company and Colorado Bankers Life Insurance Company insolvencies (see “State Guaranty Fund Assessments” in Note 17 for more information).
(9)    Includes severance expense related to initiatives to realign the workforce of $(74) million.
(10)    Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $(29) million primarily related to the sale of the wealth management business.
(11)    Includes deferred compensation mark-to-market adjustment of $(11) million.

For the Year Ended December 31, 2023
AnnuitiesLife InsuranceGroup ProtectionRetirement Plan ServicesOther OperationsTotal
Operating Revenues (1)
$2,625 $6,362 $5,560 $1,290 $(778)$15,059 
Operating Expenses (2)
Benefits and policyholder liability
remeasurement (3)
(1,506)4,103 3,732 – (871)5,458 
Interest credited1,254 1,242 5 665 36 3,202 
Commissions972 577 446 87 – 2,082 
General and administrative expenses469 610 846 341 193 2,459 
Interest and debt expense– – – – 190 190 
Other (4)
517 18 155 17 4 711 
Total operating expenses1,706 6,550 5,184 1,110 (448)14,102 
Total federal income tax expense (benefit)79 (62)79 25 (76)45 
Total income (loss) from operations840 (126)297 155 (254)912 
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (5)
1,640 
Net life insurance product features, pre-tax187 
Credit loss-related adjustments, pre-tax(74)
Investment gains (losses), pre-tax(4,080)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax(22)
GLB rider fees ceded to LNBAR, pre-tax(923)
Other items, pre-tax (6)(7)(8)(9)
(163)
Income tax benefit (expense) related to
the above pre-tax items735 
Total net income (loss)$(1,788)

(1)    See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).
(2)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.
(3)    Annuities and Other Operations: Reflects the fourth quarter 2023 reinsurance transaction ceding of in-force life-contingent payout fixed annuities and institutional pension business that had no income (loss) from operations impact. See Note 7 for more information on the transaction.
(4)    Other operating expenses include:
Annuities: Broker-dealer expenses; DAC and VOBA capitalization and amortization; taxes, licenses and fees and expenses associated with reserve financing and LOCs.
Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs and other intangible amortization.
Group Protection: Taxes, licenses and fees; DAC capitalization and amortization; other intangible amortization and expenses associated with LOCs.
Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs.
Other Operations: Taxes, licenses and fees and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.
(5)    Includes changes in MRBs of $1,129 million; income allocated to support the cost of hedging or future benefits of $746 million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $(235) million.
(6)    Includes certain legal accruals of $(120) million primarily attributable to a fourth quarter 2023 accrual related to the settlement of cost of insurance litigation.
(7)    Includes severance expense related to initiatives to realign the workforce of $(7) million.
(8)    Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives consisting of $(30) million related to the fourth quarter 2023 reinsurance transaction and $(4) million related to the sale of the wealth management business.
(9)    Includes deferred compensation mark-to-market adjustment of $(2) million.

The tables below reconcile our total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss) (in millions):

For the Year Ended December 31, 2025
AnnuitiesLife Insurance
Group Protection (1)
Retirement Plan ServicesOther OperationsTotal
Operating revenues$4,568 $4,916 $4,745 $1,337 $185 $15,751 
Revenue adjustments from annuity and life
insurance product features955 (101)– – – 854 
Credit loss-related adjustments(26)(17)(3)(18)(70)(134)
Investment gains (losses)(3)73 – (4)(102)(36)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans(231)(120)(77)– (24)(452)
GLB rider fees ceded to LNBAR(940)– – (1)– (941)
Gains (losses) on other non-financial assets– – – – (14)(14)
Total revenues$4,323 $4,751 $4,665 $1,314 $(25)$15,028 

(1)    Reflects the day one impact of the third quarter 2025 reinsurance transaction. For more information, see Note 7.
For the Year Ended December 31, 2024
AnnuitiesLife Insurance
Group Protection (1)
Retirement Plan ServicesOther OperationsTotal
Operating revenues$4,549 $4,988 $1,088 $1,304 $149 $12,078 
Revenue adjustments from annuity and life
insurance product features1,175 (253)– – – 922 
Credit loss-related adjustments(71)(10)(4)(32)(35)(152)
Investment gains (losses)(13)9 (8)(70)(229)(311)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans104 87 (10)– 22 203 
GLB rider fees ceded to LNBAR(932)– – (1)– (933)
Gains (losses) on other non-financial assets– – – – 481 481 
Total revenues$4,812 $4,821 $1,066 $1,201 $388 $12,288 

(1)    Reflects the day one impact of the second quarter 2024 reinsurance transaction. For more information, see Note 7.

For the Year Ended December 31, 2023
Annuities (1)
Life InsuranceGroup ProtectionRetirement Plan Services
Other Operations (1)
Total
Operating revenues$2,625 $6,362 $5,560 $1,290 $(778)$15,059 
Revenue adjustments from annuity and life
insurance product features509 (411)– 1 – 99 
Credit loss-related adjustments(14)(49)(4)(1)(6)(74)
Investment gains (losses)(78)(3,867)(6)(35)(94)(4,080)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans(76)55 – – (1)(22)
GLB rider fees ceded to LNBAR(922)– – (1)– (923)
Total revenues (1)
$2,044 $2,090 $5,550 $1,254 $(879)$10,059 

(1)    Includes ceded insurance premiums primarily related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7.

Other business segment and Other Operations information (in millions) was as follows:

For the Years Ended December 31,
202520242023
Net Investment Income
Annuities$2,048 $1,820 $1,744 
Life Insurance2,062 1,870 2,533 
Group Protection361 337 336 
Retirement Plan Services1,012 986 999 
Other Operations142 94 121 
Total net investment income$5,625 $5,107 $5,733