UPDATE: Judge Backs $13 Million Patent Decision Against Transamerica

(Adds comment from Transamerica, starting in fourth paragraph.)

 
   DOW JONES NEWSWIRES 
 

A federal district court judge in Iowa has affirmed a $13.1 million patent-infringement award to Lincoln National Corp. (LNC) regarding a computerized method of administering variable annuities.

A jury in February decided in favor of Lincoln National in its lawsuit against fellow insurer Transamerica, owned by Aegon NV (AEG).

Variable annuities have been a key worry for life insurers as they guarantee minimum returns. But the stock-market rout, which ended in March for now, raised concerns about annuity sellers' ability to cover promised payments.

A Transamerica spokeswoman said the company is in the process of appealing the verdict.

"Transamerica's position is unchanged since the verdict in February, and we continue to believe that the patent is invalid," the spokeswoman said. "Even if the patent is found to be valid, Transamerica is confident that its computer system does not infringe the patent."

-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136; [e-mail]