Lincoln National (LNC) Adds Features to Variable Annuity Suite
Lincoln National Corporation LNC added two crediting strategies in a bid to enhance its top-selling registered indexed-linked annuity, Lincoln Level Advantage. The annuity solution was unveiled in May 2018 and since then, can be termed as the most successful product launch of LNC with $13 billion-plus lifetime sales.
The new strategies, Dual Performance Trigger and Dual15 Plus, enable LNC’s plan clients to boost account value, regardless of the market performance. The tools are a means to not deprive investors of potential investment opportunities amid periods of market downturns, which in turn, might lead to enhanced investment outcomes for customers.
The Dual Performance Trigger comes with a one-year term, which provides investors the scope to reinvest or reallocate each year. Meanwhile, Dual15 Plus provides a term period of six years.
Such product advancements reflect Lincoln National’s sincere efforts to impart increased flexibility in addressing unique investment goals of clients and render greater strength to a comprehensive financial plan. The latest announcement can also be termed as a way to bolster the annuity portfolio of LNC through which it distributes variable annuities, fixed annuities and indexed variable annuities to its clients.
Lincoln National seems to have undertaken quite a time opportune move with its decision to upgrade its annuity offerings suite. Time and again, the United States has dealt with potential market downturns, whether it was during the COVID pandemic or the inflation surge witnessed last year. Therefore, the need to shield assets from periods of market uncertainties has remained an utmost priority for U.S. investors in recent years.
According to LNC’s recent data, 85% of U.S. adults stated their inclination to invest money in a solution that offers protection amid periods of market volatility. Also, an aging U.S. population demands the dire need for advanced investment products, which can assure a happy retirement life. Needless to say, variable annuities, to which Lincoln Level Advantage belongs, stay in popular demand owing to factors such as lifetime periodic payments, tax-deferred income growth and several guaranteed benefits.
Lincoln National remains quite active in constant product introductions and enhancement of the existing ones across its annuity business. Its total annuity sales have registered 6.3% year-over-year growth in the first half of 2023.
Shares of Lincoln National have gained 24.3% in the past three months compared with the industry’s 6.2% growth. LNC currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the insurance space are Arch Capital Group Ltd. ACGL, Primerica, Inc. PRI and Everest Group, Ltd. EG. Arch Capital sports a Zacks Rank #1 (Strong Buy), and Primerica and Everest Group carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arch Capital’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 26.83%. The consensus estimate for ACGL’s 2023 earnings suggests an improvement of 38.2%, while the same for revenues indicates growth of 30.6% from the respective year-ago reported figures.
The consensus mark for ACGL’s 2023 earnings has moved 2.3% north in the past seven days. Shares of Arch Capital have gained 5.9% in the past three months.
Primerica’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 6.46%. The Zacks Consensus Estimate for PRI’s 2023 earnings indicates a 35.9% rise, while the same for revenues suggests an improvement of 3.4% from the respective prior-year reported figures.
The consensus mark for PRI’s 2023 earnings has moved 1.6% north in the past 30 days. Shares of Primerica have gained 13.8% in the past three months.
Everest Group’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 17.36%. The Zacks Consensus Estimate for EG’s 2023 earnings indicates an 72.8% surge, while the same for revenues suggests an improvement of 18% from the respective prior-year reported figures.
The consensus mark for EG’s 2023 earnings has moved up 1.5% in the past seven days. Shares of Everest Group have declined 3.7% in the past three months.
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