Attached files
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| 8-K - LINCOLN NATIONAL CORPORATION FORM 8-K - LINCOLN NATIONAL CORP | lincoln8k.htm |
Exhibit
99.1
NEWS RELEASE
Lincoln
National Corporation Enters into $550 Million 10-Year Letter of Credit
Facility
PHILADELPHIA,
January 7, 2010 — Lincoln National Corp. (NYSE:LNC) today announced that it and
certain of its subsidiaries have entered into a $550 million, 10-year letter of
credit transaction with Credit Suisse AG to support regulatory capital
requirements for its life insurance business. The transaction is
expected to provide approximately $400 million of initial statutory capital
relief as of December 31, 2009 to Lincoln’s primary insurance subsidiary, The
Lincoln National Life Insurance Company. The estimated annual GAAP
expense is $10 million, after-tax.
“We are
pleased to have executed on a comprehensive term life reserve transaction of
this size and duration,” said Fred Crawford, executive vice president and chief
financial officer. “This transaction represents a significant step
forward on executing our long-term capital management plan
supporting the life business and one of several actions taken in 2009 to
fortify our overall capital position heading into 2010.”
About
Lincoln Financial Group
Lincoln
Financial Group is the marketing name for Lincoln National Corporation
(NYSE:LNC) and its affiliates. With headquarters in the Philadelphia region, the
companies of Lincoln Financial Group had assets under management of $137 billion
as of September 30, 2009. Through its affiliated companies, Lincoln Financial
Group offers: annuities; life, group life and disability insurance; 401(k) and
403(b) plans; and comprehensive financial planning and advisory services. For
more information, including a copy of our most recent SEC reports containing our
balance sheets, please visit www.LincolnFinancial.com.
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Contacts:
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Jim
Sjoreen
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Laurel
O’Brien
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484
583-1420
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484
583-1735
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Investor
Relations
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Media
Relations
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investorrelations@LFG.com
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mediarelations@LFG.com
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Forward
Looking Statements — Cautionary Language
Certain
statements made in this release are "forward-looking statements."
Forward-looking statements involve risks and uncertainties that may cause actual
results to differ materially from the results contained in the forward-looking
statements. Risks and uncertainties that may cause actual results to vary
materially, some of which are described within the forward-looking statements
include, among others, deterioration in general economic or business conditions;
continued credit market illiquidity; lowering of one or more of Lincoln's debt
ratings issued by nationally recognized statistical rating organizations;
lowering of one or more of the insurer financial strength ratings of Lincoln's
insurance subsidiaries; legislative and regulatory changes and proceedings;
changes in interest rates; sudden or prolonged declines in the equity markets;
and deviation in actual experience regarding future persistency, mortality,
morbidity, interest rates or equity market returns from Lincoln's assumptions
used in pricing its products, in establishing related insurance reserves, and in
the amortization of intangibles that may result in an increase in reserves and a
decrease in net income. The risks included here are not exhaustive. Lincoln's
quarterly report on Form 10-Q for the quarter ended September 30, 2009, annual
report on Form 10-K, current reports on Form 8-K and other documents filed with
the SEC include additional factors which could impact Lincoln's business and
financial performance.