NU Online News Service, Jan. 30, 10:03 a.m. – Lincoln National Corp., Fort Wayne, Ind., says it will be spending more than $49 million to realign its term life operations and change some of its accounting assumptions.
The company will spend at least $15 million to have First Penn-Pacific Life Insurance Company, a subsidiary in Schaumburg, Ill., focus exclusively on term life insurance. Operations connected with universal life insurance and other products will move to a Lincoln life insurance office in Hartford.
The realignment will cost a total of 115 jobs.
In related news, Lincoln says it will take a $34.5 million charge for the fourth quarter of 2002 to reflect the effects of the stock-market slump on calculations of deferred acquisition costs, the present value of in-force business, and guaranteed minimum death-benefit obligations.
Lincoln is lowering the expected return of stock investments to 9% and adjusting assumptions about variable annuity persistency levels and amortization periods.