This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

A.M. Best Affirms Ratings Of Lincoln National Corporation And Its Key Subsidiaries

A.M. Best Co. has affirmed the financial strength rating (FSR) of A+ (Superior) and issuer credit ratings (ICR) of “aa-” of the key life/health subsidiaries of Lincoln National Corporation (Lincoln) (headquartered in Radnor, PA) [NYSE: LNC], consisting of The Lincoln National Life Insurance Company and its wholly owned subsidiary, Lincoln Life & Annuity Company of New York (New York, NY) (together known as LNL). Concurrently, A.M. Best has affirmed the ICR of “a-” as well as the existing debt ratings of Lincoln.

Additionally, A.M. Best has downgraded the FSR to A (Excellent) from A+ (Superior) and ICR to “a+” from “aa-” of Lincoln’s stand-alone subsidiary, First Penn-Pacific Life Insurance Company. The rating downgrades reflect the company’s limited new business profile while incorporating its continued relevance to Lincoln and LNL. The outlook for all ratings is stable. All companies are domiciled in Fort Wayne, IN, unless otherwise specified. (See link below for a detailed listing of the companies and ratings.)

The ratings of LNL primarily reflect its leadership position across various lines of business, diverse distribution channels, improved investment performance and solid level of risk-adjusted capital. A.M. Best notes LNL’s proactive efforts in managing both its universal life with secondary guarantees (ULSG) and variable annuity living benefit liabilities. A.M. Best believes that enterprise risk management is a core strength for Lincoln that is further evidenced by active interest rate management across its product lines and investment portfolio. Overall, A.M. Best believes LNL’s capital level adequately supports its current balance sheet risks under most stress scenarios.

Operating earnings have benefitted from improved underwriting, lower but solid investment returns and a significant decline in credit impairments. In addition, operating results have been supported by an increase in separate accounts during 2012, driven by positive net flows from both the individual variable annuity and group retirement businesses, along with generally favorable performance of the U.S. equity markets. LNL has successfully enacted a pivot strategy to adjust to changing market dynamics and has relied on its strong and diversified distribution platform to record favorable sales results throughout the period. Additionally, the company has continued to implement price and benefit changes to its products to maintain competitiveness while reducing overall risk.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs