Steven Wevodau - Life Insurance

PHILADELPHIA, Feb. 5 /PRNewswire-FirstCall/ — Lincoln Financial Group (NYSE: LNC - News) today announced that Will Fuller has been named President and CEO of Lincoln Financial Distributors (LFD), the wholesale distribution arm of Lincoln Financial, effective February 13, 2009. As President of LFD, Fuller will be responsible for partnering with financial intermediaries to provide essential solutions and advice to clients to help them secure their financial futures. He will also work closely with Lincoln Financial’s Insurance Solutions, Retirement Solutions, and Delaware Investments divisions to grow sales across Lincoln’s industry-leading products, and will sit on the company’s Senior Management Committee.

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“With Will’s extensive distribution experience and proven leadership abilities, I am confident that Lincoln Financial Distributors will continue to lead the industry in market share gains,” said Dennis R. Glass, President and CEO, Lincoln Financial Group. “In addition, Will has a deep appreciation for how our unique structure and talented professionals differentiate LFD from our peers that will help drive the organization forward.”

Fuller comes to Lincoln Financial from Merrill Lynch & Co., Inc. At Merrill Lynch, Fuller headed product distribution for the Global Wealth Management group. In addition to leading the distribution organization, Fuller was a key contributor to Merrill Lynch’s growth strategy, with a special focus on innovation in Merrill Lynch’s product offerings, processes, and the client experience. Fuller spent most of his career at Merrill Lynch, serving in various distribution capacities over a dozen years. He holds a BA in business from The Citadel in Charleston, SC. He sits on the boards of Merrill Lynch Global Selects, an offshore fee-based investment advisory company, and the Trenton Boys and Girls Club of America.

Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC - News) and its affiliates. With headquarters in the Philadelphia region, the companies of Lincoln Financial Group had assets under management of $200 billion as of September 30, 2008. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life and disability insurance; 401(k) and 403(b) plans; savings plans; mutual funds; managed accounts; institutional investments; and comprehensive financial planning and advisory services. Affiliates also include: Delaware Investments, the marketing name for Delaware Management Holdings, Inc. and its subsidiaries; and Lincoln UK. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit www.LincolnFinancial.com.

67 WALL STREET, New York–January 14, 2009 - The Wall Street Transcript has just published its Insurance issue, a report offering a timely review of the sector to serious investors and industry executives. This 36-page feature contains a roundtable forum and industry commentary through in-depth interviews with top management from 3 firms and 2 analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics include: Impact of the credit crisis, Poor equity markets, Variable annuity business outlook, Disability insurance, Increase in claims, Exposure to subprime and derivatives, Default risk, Raising capital, Hoarding cash resources, Cutting expenses, Mergers and acquisition activity , Market volatility, Management quality, Regulatory outlook, Access to TARP funds, Treasury loan to AIG, Credit ratings, Trader’s market and pair trades, Investor interest, Stock picks, Stocks to avoid.

Contents: Roundtable Forum - Life Insurance: Randy Binner, Friedman, Billings, Ramsey Group, Inc.; John Nadel, Sterne Agee & Leach, Inc.; Property-Casualty/Reinsurance: Michael G. Paisan, Stifel Nicolaus & Company, Inc.; Outlook for Property & Casualty Insurance: J. Paul Newsome, Sandler O’Neill + Partners, LP. CEO Interviews (average 2,500 words): Top management from 3 sector firms examine the outlook for their firm and sector. Firms interviewed include: American Financial Group, Inc., Employers Holdings, Inc., Greenlight Capital Re, Ltd. Companies include: AIG (AIG); Prudential Financial (PRU); MetLife (MET); Assurant (AIZ); Aflac (AFL); Reinsurance Group of America (RGA); Hartford Financial (HIG); Principal Financial (PFG); Unum (UNM); Genworth (GNW); Lincoln National (LNC); StanCorp (SFG); Allianz (AZ).

In the following brief excerpt from the 36-page report, the roundtable discusses the outlook for the sector and for investors.

TWST: John, as you look back at 2008, what has been the driving force in the life insurance business? Has it really been the financial crisis?

Mr. Nadel: Yes, I think that’s exactly right. The forces have really been twofold in the life insurance sector in my view. They’ve been credit and the poor performance of the equity markets. So every company has had its piece of credit whether it came in the early stages in the form of the subprime residential mortgage-backed securities or if it’s come more recently through the broad decline in valuations across every asset class, from corporates to commercial mortgage-backed securities and the ongoing pressure on residential mortgage-backed securities and other asset-backeds. Every company has had exposure there. And then you’ve got your variable annuity companies, which have had the double-whammy. The impact of credit on their general account investment portfolios and then the impact of the down equity markets both on the earnings off of their variable annuity businesses plus the incremental capital that they need to continue to put up against the variable annuity businesses as the guarantees go further and further in the money.

TWST: Randy, same question, how would you characterize what went on and what drove things for 2008?

Mr. Binner: John certainly laid it out very well. We had identified credit as a huge issue just over a year ago and have worked on it a lot this year by trying to identify who had exposure to what risky assets and, more important, what we thought the losses would be, and as you said, there were definitely stages of it. I’d say that we all understood that it was a levered credit play in a lot of ways with the average leverage of 7 times invested assets to equity. I believe what you saw was that we all handicapped the credit exposures for what the economy supported and then we got past this point maybe a few days after the GSE bailouts in September, when things got a lot worse from a credit and stock market perspective. After that, some of the more levered credit plays became un-investable because the generally higher leverage no longer made the group relatively well insulated, but relatively more exposed. I believe from that point in time we’ve been one of the worst performing verticals in the overall market.

In addition to credit, the deposit-based products and variable annuity guarantees have obviously been the things that pop up when the S&P moves below 900. That is a particular problem for Hartford (HIG) and Lincoln (LNC), but also for MetLife (MET) and Prudential Financial (PRU) to a lesser extent. But, at the end of the day, it all comes back to credit because while the variable annuity exposure may decrease earnings or hit your capital base, you still need that capital base relative to the inevitable credit losses.

Finally, I’d add, the recession exposure of disability insurance products was another area where investors have been cautious and are going to continue to be cautious.

TWST: Where does the disability work into this, Randy?

Mr. Binner: In the last recession, Unum (UNM) most notably, which is the largest disability provider in the US and the UK, saw higher losses coming out of the last recession due to higher claim incidents, but, more objectively, they had more severe or longer claims as they struggled to get people back to work. So, the general idea that incidence of claims will go up in periods where consumer confidence is waning and unemployment is rising is well established. Claims have a tendency to go up due to natural ramifications of a bad economic environment, mental issues, substance abuse, soft tissue problems or possibly fraud. MetLife saw a bit of a crack on that in their benefit ratio last quarter, but we really haven’t seen it from other insurers yet.

TWST: What names are you pointing people to, Randy?

Mr. Binner: Aflac is our top pick. It’s a very solid, protection-focused company. You get a very reliable EPS stream that is not market sensitive, and from a credit perspective they do relatively well. I think I said before that no insurance company is perfect but their more risky exposure is concentrated exposure to bank and financial debt from Europe and Japan. Clearly, there have been issues there but at least you know what names you can monitor and track. Also, 70% of their operations are in Japan, which is giving you a benefit on earnings from the strong yen versus the dollar. And you know, sales are going to be tough for them, but I think that’s priced into the stock. Also, their earnings base is intact and finally, longer term, the idea of selling cancer insurance and supplemental health policies, is a strong secular growth story both in the US and Japan.

Then you move to relative calls like MET and PRU, that we have already covered. Companies like Principal, which is a great franchise and a great company, good management team - they have too much credit exposure relative to their excess capital base in order for me to get comfortable recommending the stock. They may be able to out earn the credit losses, but we continue to caution people on a story like that.

TWST: John, what names are at the top of your list?

Mr. Nadel: I agree on a couple of those with Randy. My top pick is Assurant (AIZ). It’s a specialty insurance company as well. It’s got four or five niche-oriented businesses, and no equity sensitivity in their earnings stream either. They’ve benefited in one of their businesses from the housing crisis. It doesn’t seem like anybody in the insurance business should benefit from a crisis, but their specialty property business has tripled in size in about three years owing to higher mortgage delinquencies and default rates. That’s a company that is well managed. They are really good capital allocators and are extremely cheap on a valuation basis and even on a relative basis to everything. That’s a name that we would highlight as one of our top picks. As Randy indicated when he was talking about Aflac, I don’t agree on the Aflac call, but I would characterize Assurant similar in that it’s a stock that can be long for the long term.

I like MET and PRU a lot. There are not going to be smooth stories here I don’t think, not unless credit improves dramatically, but I do suspect that investors today in those names are going to be well rewarded long term as they come out the other side of however long this lasts. They will come out bigger, stronger with more market share, more opportunity for expense efficiencies and better margins coming out the other side.

The last one that we would highlight is a bit of a specialty company as well and that is Reinsurance Group of America (RGA). It’s a pure play life reinsurance company. It’s not quite as cheap as it was maybe a month or two ago when they raised some equity, but their equity raise was much more about a proactive opportunity to take advantage of some new business opportunities here as a bunch of the primary life insurers are looking for opportunities and ways to relieve capital strain, unlock capital. RGA is one of those companies that by essentially being a partner with the life companies and reinsuring some of their businesses, they can provide that capital relief to the primary companies and also benefit for themselves long term. RGA is a company that we think has significant value, it’s still a buy-rated stock, but it’s performed really well here on a relative basis over the course of the past couple of months. I’d look for an opportunity in the mid-$30s as a great entry point.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 36-page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online

The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.

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PHILADELPHIA, Jan. 13 /PRNewswire/ — Lincoln Financial Network (LFN), the retail sales and financial planning division of Lincoln Financial Group, announced today that Kristine Stewart, CFP®, ChFC, has joined Level Four Advisory Services, LLC, and Lincoln Financial Securities as a financial advisor and registered representative, respectively in the Crestview, Fla., office. She will provide retirement, estate and business succession planning and related insurance and investment services.

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“Kristine brings with her a wealth of knowledge and professional expertise that will undoubtedly enable us to continue to provide our clients with the highest quality service. We look forward to her contributions to the continued success of both organizations,” said Level Four Group President and Founding Partner Jake Tomes.

Previously, Stewart worked at H&R Block Financial Advisors, Inc., in Melbourne, Fla.

“We are thrilled that Kristine has chosen to partner with our organizations. She represents precisely the type of high quality financial services professional that is the cornerstone of the aggressive growth model for both Lincoln Financial Network and Level Four Group,” said Chris Flint, head of recruiting for Lincoln Financial Network.

Level Four Advisory Services, an SEC registered investment adviser, has penetrated traditional financial services communities by establishing retail operations in select markets across the country. These offices are strategically placed to compete with traditional wirehouse and bank advisors in an independent environment.

About Lincoln Financial Network

Lincoln Financial Network is the marketing name for the retail sales and financial planning affiliates of Lincoln Financial Group and includes Lincoln Financial Securities Corp. and Lincoln Financial Advisors Corp., both members of FINRA and SIPC. Consisting of more than 7,000 independent representatives, career agents, and full-service financial planners throughout the United States, Lincoln Financial Network professionals can offer planning and advisory services, retirement services, life products, annuities, investments, and trust services to affluent individuals, business owners, and families.

About Lincoln Financial Securities Corporation

An affiliate of Lincoln Financial Group, Lincoln Financial Securities Corporation (LFS) has served investors for more than 30 years. LFS professionals provide effective, long-term financial solutions to individuals and small businesses, offering a wide array of securities, variable insurance products, and advisory services. Additional information about Lincoln Financial Securities Corporation, a member of FINRA and SIPC, can be found at www.lfsecurities.com.

About Lincoln Financial Group

Lincoln Financial Group, headquartered in Philadelphia, is the marketing name for Lincoln National Corporation (NYSE: LNC - News) and its affiliates. Through its affiliated companies, Lincoln Financial Group offers: annuities; life, group life and disability insurance; 401(k) and 403(b) plans; savings plans; mutual funds; managed accounts; institutional investments; and comprehensive financial planning and advisory services. Affiliates also include: Delaware Investments, the marketing name for Delaware Management Holdings, Inc. and its subsidiaries; and Lincoln UK. For more information, including a copy of our most recent SEC reports containing our balance sheets, please visit www.lincolnfinancial.com.