NU Online News Service, Aug. 1, 3:15 p.m. – Lincoln National Corp., Fort Wayne, Ind., is reporting $59 million in net income for the second quarter on $1.1 billion in revenue, down from $142 million in net income on $1.6 billion in revenue for the second quarter of 2001.
Net income for the latest quarter includes $52 million in investment losses and a $14 million increase in reserves for business sold through reinsurance arrangements, Lincoln says.
Lincoln sells retirement services, insurance and investment management services.
The retirement unit generated $48 million in operating income for the latest quarter, down from $91 million for the comparable quarter in 2001, but retirement annuity deposits increased 20%, to $1.6 billion, and clients put in $223 million more cash than they took out. During the second quarter of 2001, clients withdrew $196 million more than they put in.
Operating income at the life insurance unit increased 10%, to $74 million, in part because of strong sales of universal life, term life and whole life insurance.
The investment management unit increased its operating income to $6.6 million, from $3.7 million.