Lincoln Reports Higher 4th Quarter Net Income

All major Lincoln units turned a net profit in the latest quarter, but some reported decreases in revenue and earnings as a result of the soft economy.

• The annuity unit generated $54 million in net income on $468 million in revenue, down from $86 million in net income on $522 million in revenue. Variable annuity assets fell to $35 billion at the end of 2001, from $39 billion a year earlier, but only $25 million in cash flowed out of the contracts. Meanwhile, fixed annuity assets held steady at $17 billion, and $656 million in cash flowed in to the contracts.
• The life unit generated $52 million in net income on $465 million in revenue, down from $71 million in net income on $480 million in revenue. The life unit recorded an unusual million gain connected with the Sept. 11, 2001, attacks. Lincoln set aside $51 million in reserves before taxes in the third quarter of 2001 to cover Sept. 11 death claims, but it reduced the Sept. 11 reserves by $13 million and put that amount back in the income column.
• The investment management unit generated $4 million in net income on $107 million in revenue, down from $9 million in net income on $120 million in revenue.
• Lincoln UK generated $23 million in net income on $63 million in revenue, compared with $16 million on $104 million in revenue.