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April 24, 2006 at 05:27 AM
BY JIM CONNOLLY
When Jon Boscia, chairman and CEO of Lincoln Financial Group, and Dennis Glass, its chief operating officer, rang the closing bell April 3 at the New York Stock Exchange, they were celebrating the $7.5 billion merger of Lincoln and Jefferson-Pilot Corp. That ceremony was just the beginning of what will be a year of integration, they say.
The company has a combined market cap of $16.2 billion as of March 1, 2006, combined revenue of $9.7 billion and combined 2005 income from operations of $1.42 billion.
By the first quarter of 2007, it will have finished integrating products and distribution channels, according to Glass. Distribution channels will remain largely the same, and there will be some cross-selling of products, he continues.
The melding of product offerings includes Lincoln Financial’s variable and fixed annuities, universal life and variable universal life products, term insurance, mutual funds and 529 plans, and Jefferson-Pilot’s annuity and life products, including equity index annuities and UL and VUL products, many with secondary guarantees.
Approximately 55%-60% of sales in JP’s individual products segment over the last three years were attributable to products with secondary guarantee benefits, and 75% of sales within its annuities and investment products segment over the last two years were attributable to EIAs, according to JP’s 2006 10K filing.
Through Lincoln Financial Distributors, the company, based in Philadelphia, reaches wirehouses-regional firms, independent financial planner firms, financial institutions, managing general agents and corporate specialty markets, Lincoln’s 2006 10K indicates.
JP’s distribution channels include independent general agents, national marketing organizations, agency building general agents, a district agency network, broker-dealers, banks and strategic alliances, according to the company’s financial filings.
During 2006, scheduled product introductions will continue, because that is necessary to compete, Glass says.
