NU Online News Service, Aug. 7, 2003, 5:23 p.m. EDT – Lincoln National Corp., Philadelphia, is reporting $143 million in net income for the second quarter on $1.2 billion in revenue, up from $49 million in net income on $1.2 billion in revenue for the second quarter of 2002.
Gross deposits into fixed annuities fell to $356 million, from $430 million, and gross deposits into variable annuities fell to $1 billion, from $1.2 billion.
Deposits into fixed portions of variable contracts amounted to 42% of variable annuity deposits, up from 35% in the second quarter of 2002.
The average spread on fixed accounts, or the difference between the average rate Lincoln paid fixed account holders and the average rate the company earned on its own investments, increased to 2.2 percentage points, from 2.18 percentage points.
Lincoln’s own net investment income yield fell to 6.49%, from 7.11%, but the company made up for the decrease by lowering the crediting rate paid to annuity holders to 4.29%, from 4.92%.
At the life unit, sales of variable universal life fell to $14 million, from $42 million, but sales of universal life increased to $143 million, from $99 million.