What happened

Shares of insurance company Lincoln National (LNC 2.94%) are down 32.5% as of 12:59 p.m. ET in response to what can only be considered a disastrous third-quarter report. Yet none of last quarter's massive loss reflects the organization's actual, long-term operating viability.

So what

For the three-month stretch ending in September, Lincoln National turned $4.6 billion worth of revenue into a loss of nearly $2.6 billion, or a loss of $15.17 per share. After adjusting for the impact of a goodwill impairment charge, the loss was pared back to only $1.7 billion, or $10.23 per share.

Those adjusted figures, however, still don't tell the entire story. The insurer's quarterly results also reflect "unfavorable notable items" totaling $2 billion worth of charges -- an adverse impact of $11.62 -- linked to a yearly review of its deferred acquisition costs and subsequent changes to its reserve assumptions. Stripping out all of its unusual charges puts the company back into the black for the quarter in question.

Simultaneously, Lincoln's board of directors declared a dividend of $0.45 per share, payable in early February to investors holding the stock as of Jan. 10, 2023. That planned payout is in line with the company's four most recent quarterly dividend payments.

Now what

The depth of today's sell-off makes sense, given the sheer size of the loss. However, the market is arguably overreacting to the quarterly report. The majority of Q3's charges are one-offs that don't reflect the current condition of the insurer. While Lincoln is suffering a revenue headwind this year that's being exacerbated by new economic weakness, analysts believe sales and operating earnings growth will be rekindled next year.

Indeed, the stock is currently priced at roughly 3 times next year's expected earnings, with the steep sell-off pumping up the still-reliable dividend yield to more than 3.4%.

There's still risk here, to be sure -- perhaps more than some investors typically expect from an insurance stock. From a risk-versus-reward perspective, though, today's tumble to new 52-week lows is a compelling entry point for investors willing to take on a little extra risk.