The drive to control variable annuity business risk continues.

Lincoln National Corp., Radnor, Pa., says it is revising the VA living benefit guarantees it sells.

Lincoln is imposing new investment restrictions on new accounts and also on in-force accounts holding about two-thirds of Lincoln in-force VA account value, the company says.

Lincoln also is increasing the prices of withdrawal riders, and it is making “other modifications to reduce risk and lower the cost of hedging,” Lincoln says.

Lincoln announced the changes in its first-quarter earnings release.

The company is reporting a $579 million net loss for the quarter on $2.2 billion in revenue, compared with $289 million in net income on $2.6 billion in revenue for the first quarter of 2008.

Last week, Hartford Financial Services Group Inc., Hartford, announced that it was making major changes to U.S. and international VA programs in response to concerns about the effects of investment market volatility.