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Is Lincoln Financial's New CIO Appointment Reshaping the Capital Allocation Story for LNC?

Simply Wall St · 10/03/2025 19:10
  • Lincoln Financial has appointed John Morriss as Executive Vice President and Chief Investment Officer, placing him in charge of investment strategies across more than US$300 billion in assets under management, with the announcement effective October 13, 2025.
  • Morriss's extensive investment leadership experience and previous familiarity with Lincoln's operations suggest a potential for meaningful influence over the company's future investment direction.
  • We’ll now assess how the appointment of a seasoned CIO may shape Lincoln’s investment narrative and capital allocation outlook.

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Lincoln National Investment Narrative Recap

For shareholders in Lincoln National, the core belief centers on the company's ability to reallocate capital efficiently, modernize its offerings and technology, and manage risks associated with legacy variable annuity products. The appointment of an experienced CIO like John Morriss is a positive step for long-term investment strategy and asset allocation, but it is unlikely to materially impact imminent risks, such as capital strain from market shocks affecting those same legacy annuities.

Lincoln’s recent launch of the Lincoln Partners Group Royalty Fund stands out in this context; it showcases a focus on private markets, expanding investment avenues that could support diversification of returns, a relevant development as the company aims to reduce reliance on more volatile products and strengthen capital efficiency in the portfolio. Yet, even with these innovations, the key question for the near term remains whether Lincoln can truly buffer against earnings volatility tied to legacy liabilities.

However, it’s important for investors to be alert as exposure to older annuity guarantees could...

Read the full narrative on Lincoln National (it's free!)

Lincoln National's outlook anticipates $21.0 billion in revenue and $1.6 billion in earnings by 2028. This implies a 5.2% annual revenue growth rate and a $0.6 billion earnings increase from current earnings of $1.0 billion.

Uncover how Lincoln National's forecasts yield a $42.75 fair value, a 6% upside to its current price.

Exploring Other Perspectives

LNC Community Fair Values as at Oct 2025
LNC Community Fair Values as at Oct 2025

Simply Wall St Community members have published fair value estimates for Lincoln National ranging from US$28.99 to US$108.51, offering three distinct perspectives. While analysts see capital allocation and modernization as notable catalysts, the range of opinions invites you to consider multiple scenarios for Lincoln’s future performance.

Explore 3 other fair value estimates on Lincoln National - why the stock might be worth 28% less than the current price!

Build Your Own Lincoln National Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.