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Lincoln National (LNC) Takes Restructuring Initiatives

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Lincoln National Corporation (LNC - Free Report) recently announced that it is aligning its Retirement Plan Services and Group Benefits business lines to create a broader Workplace Solutions organization, which will be led by Jamie Ohl.

While the Retirement segment provides employers with retirement plan products and services, primarily in the defined contribution retirement plan marketplace, the Group Protection segment offers group non-medical insurance products including term life, disability, dental, vision, and accident and critical illness benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans. Aligning these two service lines is expected to boost innovation, thus positioning Lincoln National in a better place to solidify  its portfolio and stabilize the customer experience.

This business rejig is expected to boost the company’s capabilities and serve its clients, plan participants and policyholders in a better way.

The company has been streamlining its businesses to exit the non-core and less profitable operations (including asset management, media businesses and those in the U.K.). These strategic initiatives helped the company evolve as a much stronger entity over the years.

Also, the life insurance portfolio remains well diversified and in turn, lowered the risk profile of the company. Diversified life insurance sales and latest product enhancements are likely to position the company’s Life Insurance business well for growth.

Shares of this currently Zacks Rank #5 (Strong Sell) life insurer have lost 8.3% in a year compared with the industry’s decline of 9.1%.

Stocks to Consider

Some better-ranked stocks in the insurance space are Sun Life Financial Inc. SLF, Primerica, Inc. PRI and Reinsurance Group of America, Incorporated RGA.

While Sun Life sports a Zacks Rank #1 (Strong Buy), Primerica and Reinsurance Group of America carry a Zacks Rank #2 (Buy), presently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sun Life, Primerica and Reinsurance Group of America have a trailing four-quarter earnings surprise of 14.8%, 10.04% and 64.8%, on average, respectively.


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