Lincoln National Reports Lower Net Income

July 24, 2001 at 08:00 PM

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NU Online News Service, July 24, 11:55 a.m. – Lincoln National Corp., Philadelphia, is reporting $142 million in net income for the second quarter on $1.6 billion in revenue, down from $164 million in net income on $1.7 billion for the second quarter of 2000.

Operating income, which excludes the effects of a $3.9 million restructuring charge, an $11 million charge for an accounting change, and $11 million in losses recorded on investments sold during the quarter, fell 3%, to $173 million.

Although Lincoln recorded some investment losses, the company is pleased that it performed as well as it did during a tough quarter, according to Jon Boscia, the chairman.

"Our efforts to improve overall net flows in both our annuities and investment management businesses are yielding results," Boscia said in a statement.

Strong sales of fixed annuities helped increase operating income from annuities 8%, to $91 million, and total annuity deposits 7%, to $1.4 billion.

Life insurance sales were also strong. Life operating income rose 8%, to $67 million. Premiums for the sale of new policies increased 8%, to $154 million.

Meanwhile, Lincoln says the debate over the recently enacted changes in federal estate tax rates caused no noticeable damage in the second quarter. Despite the uncertainty over the estate tax laws, "we had a 31% increase in survivorship sales over second quarter 2000," Boscia said.

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