Lincoln National (NYSE:LNC)
Historical Stock Chart

From Jun 2019 to Jun 2024

Months after turning to the U.S. Treasury for help raising capital, Lincoln National Corp.'s (LNC) chief executive said he now believes the economy is finally on the mend.

"We have not declared victory on capital markets or the economy, but I see reason for optimism," said Dennis R. Glass, president and chief executive of the Philadelphia insurer and investment manager, at a Barclays Capital investor conference that was webcast.

Investment losses and variable annuity costs both rose for the insurer over the last year as the economy weakened, pushing Lincoln National to net losses in the last three quarters and making it difficult to raise capital to cover losses.

In the second quarter, Lincoln National applied to the U.S. Treasury's Troubled Asset Relief Program for a $950 million investment, and also issued $690 million of common stock and $500 million of debt, which gave Lincoln a "cushion" to "weather any storm," Glass said.

In August, Lincoln sold its asset management business Delaware Management Holdings Inc. to Macquarie Group, an Australian investment banker, for $428 million.

Shares of Lincoln National were up 6% recently to $27.00 on a day when most insurance stocks rose sharply.

-By Lavonne Kuykendall, Dow Jones Newswires; (312) 750 4141; lavonne.kuykendall@dowjones.com