OLDWICK, NJ – (AFTERNOON PRAYER) – –AM best They are on the Financial Strength (FSR) of A + (Superior) and Long Term Publisher Credit Rates (Long Term ICR) of “aa-” of Lincoln National Life Insurance Company and its subsidiaries, Lincoln Life & Annuity, certified New York Company (Syracuse, NY) and Lincoln Life Insurance Company in Boston (LLAC) (Dover, NH). These companies are the principal life / health insurance subsidiaries of Lincoln National Corporation (LNC) (headquartered in Radnor, PA). [NYSE: LNC] and collectively known as Lincoln Insurance Insurance Group (Lincoln).
In addition, AM Best has tested the FSR of A (Excellent) and the Long-Term ICR of “a +” of Lincoln’s affiliate, First Penn-Pacific Life Insurance Company (FPP). At the same time, AM Best has tested the Long-Term ICR of “a-” and all Long-Term and Short-Term Journal Credit Levels (Long-Term IR; Short-Term IR) of LNC. The outlook for these Credit Levels (ratings) is stable. All companies are resident in Fort Wayne, IN, unless otherwise stated. (See below for a detailed list of the Long-Term and Short-Term IRs).
Lincoln’s rating reflects its balance sheet strength, which AM Best evaluates as strong, as well as its strong job performance, favorable business image and strong enterprise risk management. Lincoln maintains key market positions in its core product lines, and is well diversified by product type, source of employment and distribution channels. Although production risk has declined somewhat over time, the company remains highly sensitive to the macroeconomic environment. The company has consistently reported key favorable trends, although employment has suffered from high claims experience associated with pandemics and lower interest rates. The impact on employment as a result of an unfavorable death affected the Life Assurance and Group Protection sectors. Despite these headlines, the company posted steady earnings for all sectors except their group business in 2020. Earnings of headers from increased spread mortality, GAAP adoption updates and partially flat rates set by strong equity markets and reversal of other asset revenues. AM Best’s opinion of Lincoln’s capital quality is a bit low due to the use of outdoor catchers and resellers for its XXX and AXXX stores. Recently, capital growth has been limited by shares to the property company, used for stock shares and buy-back programs, although the stock purchase program was maintained for much of 2020. Quantities are bare financial and operating within guidelines for the ratings with strong interest coverage, and LNC maintains adequate balancing liquidity at the level of the holding company, with additional financial flexibility from a recent untapped fallow capital facility. drew.
FPP’s rating reflects its balance sheet strength, which AM Best evaluates as strong, as well as its decent job performance, limited business image due to its runoff status, and very strong ERM. The rankings also reflect the financial strength of its parent body and its integration into the management work of Lincoln and ERM.
The following Long Term IRs were validated with a stable prognosis:
Lincoln National Corporation—
– “a-” on $ 300 million 4.20% higher trust notes, payable 2022
– “a-” for $ 500 million 4.00% higher trust notes, payable 2023
– “a-” on $ 300 million 3.35% higher trust notes, payable 2025
– “a-” on $ 400 million 3.625% higher trust notes, payable 2026
– “a-” on $ 500 million 3.8% higher trust notes, payable 2028
– “a-” on $ 500 million 3.05% higher trust notes, payable 2030
– “a-” on $ 500 million 3.40% higher trust notes, payable 2031
– “a-” on $ 500 million 6.15% higher trust notes, payable 2036 ($ 243 million unpaid)
– “a-” for $ 375 million 6.30% higher trust notes, payable 2037
– “a-” on $ 500 million 7.00% higher trust notes, payable 2040
– “a-” for $ 450 million 4.35% higher trust notes, payable 2048
– “a-” on $ 300 million 4.375% premium trust notes, payable 2050
– “bbb” on $ 800 million 7.00% of young underground capital securities, payable 2066 ($ 722 million payable)
– “bbb” on $ 500 million 6.05% of young underground capital securities, payable 2067 ($ 491 million payable)
The following Short Term SIs were confirmed:
Lincoln National Corporation—
– AMB-1 on commercial paper
The following long-term identified IRs on securities available under universal shelf listing are confirmed by a stable forecast:
Lincoln National Corporation—
– “a-” on old unsecured debts
– “bbb +” on arrears
– “bbb” on youth subordinate debt
– “bbb” on your favorite stock
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