Business Analysis of Lincoln National

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Lincoln National

LINCOLN NATIONAL

Business Overview

Lincoln National Corporation, through its subsidiaries, engages in the multiple insurance and retirement businesses in the United States. It operates through four segments: Annuities, Retirement Plan Services, Life Insurance, and Group Protection. The company sells a range of wealth protection, accumulation, and retirement income products and solutions. The company's products include fixed and indexed annuities, variable annuities, universal life insurance (UL), variable universal life insurance (VUL), linked-benefit UL, term life insurance, indexed universal life insurance, and employer-sponsored retirement plans and services, as well as group life, disability, and dental products. It also provides various plan investment vehicles, including individual and group variable annuities, group fixed annuities, and mutual fund-based programs; single and survivorship versions of UL and VUL, including corporate-owned UL and VUL, and bank-owned UL and VUL insurance products; and group non-medical insurance products, principally term life, universal life, disability, dental, vision, accident, and critical illness insurance to the employer market place through various forms of contributory and non-contributory plans. The company distributes its products through consultants, brokers, planners, agents, financial advisors, third-party administrators, and other intermediaries. Lincoln National Corporation was founded in 1904 and is headquartered in Radnor, Pennsylvania.

Lincoln National

Lincoln National


R&P Rank: 210
Sector: Insurance
Industry:Life Insurance
H.Q Location:Pennsylvania
Website: www.lfg.com
Company Address:
150 N RADNOR CHESTER RD, RADNOR PA 19087
Ph:484-583-1400

Business Analysis of Lincoln National

The Insurance Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Lincoln National compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Lincoln National to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Lincoln National with an interactive chart.

  1. Revenue Growth: Lincoln National reported a revenue growth of -1.8% year-on-year during 2016. Life Insurance Industry grew at -1.7% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Lincoln National spent 86.5% of its total revenues on COGS. Life Insurance industry average (COGS share of revenue) in the same period was 71.2%
  3. R&D share of Revenues: Lincoln National R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: Lincoln National SG&A share of Revenues details are not available because either company does not share the data or we do not have it
  5. Inventory share of Revenues: Lincoln National Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Lincoln National invested 37.5% of its total revenues on Accounts Payable (A/P) Life Insurance industry average Accounts Payable investment in the same period was 22.3%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Lincoln National invested 42.7% of its total revenues on Accounts Receivable (A/R). Life Insurance industry average Accounts Receivable investment in the same period was 38.1%
  8. PP&E share of Revenues: Lincoln National PP&E share of Revenues details are not available because either company does not share the data or we do not have it
  9. Intangibles share of Revenues: As a percentage of revenue, Lincoln National invested 17.1% of its total revenues on Intangibles. Life Insurance industry average Intangibles investment in the same period was 7.6%
  10. Net Margins: Lincoln National Net Margins in the year 2016 were 8.9%. Life Insurance industry average Net Margins in the same period were 4.3%

Sector and Industry Association of Lincoln National

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Lincoln National is associated with Financials Sector Group, Insurance Sector, and Life Insurance Industry.

Insurance sector is comprised of the following industries: Life Insurance; Property & Casualty Insurance; Surety & Title Insurance; Insurance Brokerage; Diversified Insurance. The definitions for each of the industries is as follows:

  • Life Insurance industry includes companies engaged principally in life insurance.
  • Property & Casualty Insurance industry includes companies engaged principally in accident, fire, automotive, marine, malpractice and other classes of non-life insurance.
  • Surety & Title Insurance industry includes companies providing title & surety insurance.
  • Insurance Brokerage industry includes insurance brokers and agencies.
  • Diversified Insurance industry includes companies with life, health, property & casualty, and reinsurance interests, none of which predominates.

Industry Ranking of Lincoln National

With $13.3 billion revenues, Lincoln National ranked number 3 of all the companies in the US Life Insurance industry. There were a total of 14 public companies in the US Life Insurance industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Life Insurance industry by revenues during 2016 were:

  1. MetLife ($63.5 billion)
  2. Prudential Financial ($58.8 billion)
  3. Lincoln National ($13.3 billion)
  4. Reinsurance Group Of America ($11.5 billion)
  5. Voya Financial ($10.8 billion)
  6. Genworth Financial ($8.4 billion)
  7. Torchmark ($3.9 billion)
  8. American National Insurance ($3.2 billion)
  9. American Equity Investment Life ($2.2 billion)
  10. Primerica ($1.5 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Lincoln Nationaland its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of lincoln-national

MetLife (MET) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

MetLife Inc with $63 billion revenues in the year 2016 was the number 1 Life Insurance company. Read this report to know the top competitors of MetLife and identify growth and cost optimization opportunities of MetLife

Prudential Financial (PRU) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Prudential Financial Inc with $59 billion revenues in the year 2016 was the number 2 Life Insurance company. Read this report to know the top competitors of Prudential Financial and identify growth and cost optimization opportunities of Prudential Financial

Reinsurance Group Of America (RGA) Business Analysis – Analyze Historical Performance,...

Reinsurance Group Of America Inc with $12 billion revenues in the year 2016 was the number 4 Life Insurance company. Read this report to know the top competitors of Reinsurance Group Of America and identify growth and cost optimization opportunities of Reinsurance Group Of America

Voya Financial (VOYA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Voya Financial, Inc. with $11 billion revenues in the year 2016 was the number 5 Life Insurance company. Read this report to know the top competitors of Voya Financial and identify growth and cost optimization opportunities of Voya Financial

Genworth Financial (GNW) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Genworth Financial Inc with $8 billion revenues in the year 2016 was the number 6 Life Insurance company. Read this report to know the top competitors of Genworth Financial and identify growth and cost optimization opportunities of Genworth Financial

Torchmark (TMK) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Torchmark Corp with $4 billion revenues in the year 2016 was the number 7 Life Insurance company. Read this report to know the top competitors of Torchmark and identify growth and cost optimization opportunities of Torchmark

Revenues Analysis

Lincoln National (LNC) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Lincoln National Corp (LNC) from 2012 to 2016. Lincoln National generated a total of $13.3 billion revenues during 2016. Lincoln National reported a revenue growth of -1.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Lincoln National (LNC) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Lincoln National Corp (LNC) from 2002 to 2016. Lincoln National generated a total of $13.3 billion revenues during 2016. Lincoln National reported a revenue growth of -1.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Lincoln National (LNC) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Lincoln National Corp (LNC) revenue growth with Life Insurance industry growth during the last five years from 2012 to 2016. Lincoln National reported a revenue growth of -1.8% year-over-year during 2016. The Life Insurance industry growth was -1.7% year-over-year during 2016. Lincoln National growth was slower than the industry during 2016.

Profit Analysis

Lincoln National (LNC) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Lincoln National Corp (LNC) from 2012 to 2016. Lincoln National reported a total net income of $1.2 billion during 2016. Lincoln National generated a total of $13.3 billion revenues during 2016. Lincoln National net profit margin was 8.9% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.