Lincoln Reports Lower 1st Quarter Net Income

NU Online News Service, April 30, 2003, 11:58 a.m. EDT – Lincoln National Corp., Philadelphia, is reporting $42 million in net income for the first quarter on $1.1 billion in revenue, compared with $86 million in net income on $1.1 billion in revenue for the first quarter of 2002.

Strong sales of fixed life insurance and annuity products helped push life insurance net income up to $49 million, from $44 million, but net income at the retirement unit fell to $6.9 million, from $47 million, because of investment losses, the company says.

Lincoln says it had to write down some notes and other fixed-income securities issued by airlines during the quarter. But Lincoln notes that gains in the stock market since March 31 have erased most first-quarter losses related to reductions in fee income and increases in reserves for annuity death-benefit guarantees.