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Lincoln National's Units Receive Rating Action from A.M Best
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The key Life and Health Insurance subsidiaries of Lincoln National Corporation (LNC - Free Report) , popularly referred as Lincoln Financial Group (“LFG”), recently received rating action from A.M Best. The rating giant reiterated the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (ICR) of “aa-” for The Lincoln National Life Insurance Company (“LNL”) and its wholly owned subsidiary, Lincoln Life & Annuity Company of New York (“LLANY”).
Concurrently, A.M Best affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” for First Penn-Pacific Life Insurance Company (“FPP”), a wholly owned subsidiary of Lincoln National.
The rating giant also reiterated the Long-Term ICR of “a-” and all existing Long- and Short-Term ICRs of Lincoln National along with retaining stable outlook.
In addition to these rating affirmations, A.M Best has assigned a Long-Term Issue Ratings of “a-” to the $400 million 3.625% senior unsecured notes, due 2026, recently issued by Lincoln National. The rating giant also assigned a stable outlook to the issuance of these notes.
These positive ratings clearly evidence Lincoln National’s leading position of in the insurance market. Year to date, the shares of Lincoln National have gained 33.66%, which is significantly higher than the Zacks categorized Life Insurance industry’s increase of 2.44%.
YTD PRICE CHART
This stock price appreciation reflects shareholders’ confidence on the stock and can be attributed to LFG’s strong position as individual life and annuity products dealer. Consistently strong statutory & GAAP operating performance and robust enterprise risk management practices supported the company to position itself well amid intense completion in the insurance industry.
The rating giant also noted that LFG’s financial and operating leverage ratios, which depict the company’s capital structure, debt dependence, cash position, are properly aligned with the pre-set parameters and are well within the guidelines for the current ratings.
However, the parent company is severely exposed to equity market volatility and low interest rates. The main challenge for the company is its secondary guarantee universal life insurance business, variable annuities with guaranteed benefits and fixed annuities with high minimum guaranteed crediting rates. Though LFG possesses strong risk-adjusted capital, it is basically supported by the utilization of captives and external reinsurance for its redundant reserves. This makes A.M. Best skeptical about the quality of capital.
Zacks Rank and Stocks to Consider
Lincoln National presently carries Zacks Rank #3 (Hold).
Some better-ranked stocks from the insurance industry that warrant a look include Alleghany Corporation , First American Financial Corporation (FAF - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alleghany Corporation deals in Property & Casualty reinsurance and insurance businesses in the U.S. and internationally. The company recorded positive surprises in three of the last four quarters with an average beat of 20.52%.
First American Financial is a leading provider of title insurance and settlement services to the real estate and mortgage industries in the U.S. The company beat estimates in all the trailing four quarters with an average beat of 14.32%
Arch Capital offers property, casualty, and mortgage insurance and reinsurance products worldwide. It posted positive surprises in all of the last four quarters with an average beat of 9.27%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Lincoln National's Units Receive Rating Action from A.M Best
The key Life and Health Insurance subsidiaries of Lincoln National Corporation (LNC - Free Report) , popularly referred as Lincoln Financial Group (“LFG”), recently received rating action from A.M Best. The rating giant reiterated the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (ICR) of “aa-” for The Lincoln National Life Insurance Company (“LNL”) and its wholly owned subsidiary, Lincoln Life & Annuity Company of New York (“LLANY”).
Concurrently, A.M Best affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” for First Penn-Pacific Life Insurance Company (“FPP”), a wholly owned subsidiary of Lincoln National.
The rating giant also reiterated the Long-Term ICR of “a-” and all existing Long- and Short-Term ICRs of Lincoln National along with retaining stable outlook.
In addition to these rating affirmations, A.M Best has assigned a Long-Term Issue Ratings of “a-” to the $400 million 3.625% senior unsecured notes, due 2026, recently issued by Lincoln National. The rating giant also assigned a stable outlook to the issuance of these notes.
These positive ratings clearly evidence Lincoln National’s leading position of in the insurance market. Year to date, the shares of Lincoln National have gained 33.66%, which is significantly higher than the Zacks categorized Life Insurance industry’s increase of 2.44%.
YTD PRICE CHART
This stock price appreciation reflects shareholders’ confidence on the stock and can be attributed to LFG’s strong position as individual life and annuity products dealer. Consistently strong statutory & GAAP operating performance and robust enterprise risk management practices supported the company to position itself well amid intense completion in the insurance industry.
The rating giant also noted that LFG’s financial and operating leverage ratios, which depict the company’s capital structure, debt dependence, cash position, are properly aligned with the pre-set parameters and are well within the guidelines for the current ratings.
However, the parent company is severely exposed to equity market volatility and low interest rates. The main challenge for the company is its secondary guarantee universal life insurance business, variable annuities with guaranteed benefits and fixed annuities with high minimum guaranteed crediting rates. Though LFG possesses strong risk-adjusted capital, it is basically supported by the utilization of captives and external reinsurance for its redundant reserves. This makes A.M. Best skeptical about the quality of capital.
Zacks Rank and Stocks to Consider
Lincoln National presently carries Zacks Rank #3 (Hold).
Some better-ranked stocks from the insurance industry that warrant a look include Alleghany Corporation , First American Financial Corporation (FAF - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alleghany Corporation deals in Property & Casualty reinsurance and insurance businesses in the U.S. and internationally. The company recorded positive surprises in three of the last four quarters with an average beat of 20.52%.
First American Financial is a leading provider of title insurance and settlement services to the real estate and mortgage industries in the U.S. The company beat estimates in all the trailing four quarters with an average beat of 14.32%
Arch Capital offers property, casualty, and mortgage insurance and reinsurance products worldwide. It posted positive surprises in all of the last four quarters with an average beat of 9.27%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>