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Lincoln National's New Solution to Aid Small Businesses

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Lincoln National Corporation LNC recently rolled out a Multi-Manager solution. This innovative solution, which is part of the Lincoln Director program, is intended to cater to diverse needs of the company’s small business clients.

Primarily banking on Lincoln Variable Investment Product (LVIP) funds, the Multi-Manager funds will offer plan sponsors access to over 80 LVIP funds and hence, provide sound investment options to its wide base of small business clients. Apart from this, Lincoln Investment Advisors Corp. (LIAC) will act as the investment advisor offering unbiased decisions in selection of fund managers. These managers, in turn, willhelp the company’s financial experts in giving advices to their clients for creation of sound investment portfolios from the LVIP fund list.

Moreover, YourPath Multi-Manager collective investment trust (CIT) portfolios provided by the Multi-Manager funds offer retirement plan participants with a more personalized target-date investment. Such initiatives provide financial flexibility that help in easing financial woes of employees and provide retirement plan solutions for retirees.

However, shares of this Zack Rank #4 (Sell) company have lost 25.8% in a year compared with the industry’s decline of 13%.

Nevertheless, Lincoln National has undertaken consistent efforts to boost retirement business. It has been committed to providing a comprehensive financial planning for the retirees. Notably, the company utilizes its retirement, insurance and wealth protection expertise to serve financial goals of more than 17 million customers. It has also collaborated with PlanSource this May with intentions of technological upgradations. This deal, in turn, will boost the company’s Group Benefits business.

The company also enhanced the Lincoln Level Advantage,which is its indexed variable annuity solution, this May in a bid to make its annuity business more strong. These initiatives are intended to protect investors from the prevailing market uncertainties induced by the COVID-19 pandemic. Lincoln National has also adopted several measures for overcoming business challenges. It is taking additional steps to protect and further improve capital position including decelerating sales of high risk products to reduce capital consumption, suspending share buybacks for the second quarter and possibly beyond that, and selectively trimming more positions in the investment portfolio. The company also successfully managed expenses to offset headwinds by reducing costs by $100 million in 2020.

Furthermore, we believe the company’s efforts to bolster business lines are likely to drive revenues in the days ahead. In first-quarter 2020, adjusted operating revenues improved 3% year over year, primarily attributable to strong performance at its Annuities, Retirement Plan Services and Life Insurance segments.

Stocks to Consider

Some better-ranked stocks in the insurance space include American Equity Investment Life Holding Company AEL, EverQuote, Inc. EVER and Palomar Holdings, Inc. PLMR, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

American Equity Investment, EverQuote and Palomar have a trailing four-quarter positive earnings surprise of 63.04%, 86.7% and 10.9%, respectively.

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Lincoln National Corporation (LNC) : Free Stock Analysis Report
 
American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report
 
EverQuote, Inc. (EVER) : Free Stock Analysis Report
 
Palomar Holdings, Inc. (PLMR) : Free Stock Analysis Report
 
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