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Lincoln National's (LNC) Solution to Boost Clients' Returns

·3 min read

Lincoln National Corporation LNC recently introduced a variable annuity solution named Lincoln Investor Advantage Pro. The solution integrated with Lincoln Defined Outcome Funds offers a platform equipped with over 125 funds, which will be of great use to financial professionals in devising suitable portfolios per clients’ needs.

Following the COVID-19 pandemic induced market volatilities, there are clear indications of gradual economic recovery. However, a steady demand for financial products to safeguard retirement assets against market losses remains. The new solution introduced by Lincoln Financial intends to bank on the prevailing scenario with the customized levels of tax-deferred protection offered by it.

Lincoln Investor Advantage Pro enables investors to adjust protection levels either to tap maximum growth opportunity amid a well-performing market or to provide a buffer against market losses. This is expected to lead to enhanced investment outcomes for customers. Their investment decisions will be influenced positively as customers are free to choose or exit funds, which are priced on a regular basis.

Moreover, the solution comes at an opportune time as an aging U.S. population reinforces the dire need for investment products that provide bundled covers of retirement income, life and healthcare. It is worth mentioning, variable annuities have been gaining popularity as a means to address retirement needs, attributable to several factors such as lifetime periodic payments, tax-deferred income growth and several guaranteed benefits often linked with these products.

Notably, the recent addition is likely to bolster the annuity portfolio of Lincoln National through which it has been offering a suite of variable and fixed annuities as well as indexed fixed and variable annuities. The insurer has several variable annuities in place including Lincoln Investor Advantage, Lincoln Level Advantage indexed variable annuity and Lincoln ChoicePlus. The Lincoln Investor Advantage Advisory Choice offers a lifetime income stream and even includes an option for beneficiary protection.

The Annuity business of Lincoln National performed well during the first quarter of 2021, courtesy of increased account values stemming from robust equity market performance and favorable returns from the company’s alternative investment portfolio. Variable annuity sales received an impetus in the quarter driven by higher variable annuity sales without guaranteed living benefits.

Recently, another insurer Prudential Financial PRU launched an indexed variable annuity product FlexGuard Income in a bid to accelerate retirement income growth and offer protection to their assets in case of any market downturn.

Zacks Rank & Price Performance

Shares of this Zacks Rank #3 (Hold) life insurer have surged 59.7% in a year compared with the industry’s growth of 20.2%.

Zacks Investment Research
Zacks Investment Research

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Stocks to Consider

Some better-ranked stocks in the insurance space include Manulife Financial Corporation MFC and Alleghany Corporation Y, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Manulife and Alleghany have a trailing four-quarter earnings surprise of 13.01% and 128.63%, on average, respectively.

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Lincoln National Corporation (LNC) : Free Stock Analysis Report

Prudential Financial, Inc. (PRU) : Free Stock Analysis Report

Manulife Financial Corp (MFC) : Free Stock Analysis Report

Alleghany Corporation (Y) : Free Stock Analysis Report

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Zacks Investment Research