Lincoln Financial Group recorded a first quarter net income of $283 million recently, up from a net loss of $579 million in the year-earlier period, driven mostly by positive net inflows and sales.

Income from operations figured at $276 million, from $163 million last year, reflecting growth in average variable account values from improved equity markets, the favorable unlocking of deferred acquisition costs in its annuity unit and unfavorable mortality in the individual and group life businesses.

Consolidated deposits were at $4.7 billion due to $1.3 billion in positive net flows, while total account balances went up 27 per cent to $146 billion.

"Our results in the quarter reflect our ability to drive growth in our businesses with quality products and strong distribution along with the benefits of continued improvement in the capital markets," said Dennis R Glass, Lincoln's president and chief executive officer.

Glass noted that while the mortality experience was elevated in the quarter in both its group and individual life units, mortality is still expected to return to normal levels sooner than later in both instances.

"We are encouraged by improving signs in the economy and our franchise remains well positioned to take advantage of the strong demand for insurance products and the increasing need for advice," he added.

Lincoln Financial is headquartered in Philadelphia and has $146 billion in assets under management as of 31 March 2010.

The results complement findings from a separate survey by Edward Jones recently, as reported in another article by Family Wealth Report, revealing that more Americans are preparing for retirement and are optimistic about recovery prospects.