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Indiana
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1-6028
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35-1140070
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(State
or other jurisdiction
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(Commission
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(IRS
Employer
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of
incorporation)
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File
Number)
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Identification
No.)
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[
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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[
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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[
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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[
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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·
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Continued
deterioration in general economic and business conditions, both domestic
and foreign, that may affect foreign exchange rates, premium levels,
claims experience, the level of pension benefit costs and funding and
investment results;
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·
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Continued
economic declines and credit market illiquidity could cause us to realize
additional impairments on investments and certain intangible assets
including a valuation allowance against deferred tax assets, which may
reduce future earnings and/or affect our financial condition and ability
to raise additional capital or refinance existing debt as it
matures;
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·
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Uncertainty
about the effectiveness of the U.S. Treasury’s Troubled Asset Relief
Program Capital Purchase Program and our ability to participate in the
program;
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·
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Legislative,
regulatory or tax changes, both domestic and foreign, that affect the cost
of, or demand for, LNC’s products, the required amount of reserves and/or
surplus, or otherwise affect our ability to conduct business, including
changes to statutory reserves and/or risk-based capital (“RBC”)
requirements related to secondary guarantees under universal life and
variable annuity products such as Actuarial Guideline VACARVM (“VACARVM”);
restrictions on revenue sharing and 12b-1 payments; and the potential for
U.S. Federal tax reform;
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·
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The
initiation of legal or regulatory proceedings against LNC or its
subsidiaries, and the outcome of any legal or regulatory proceedings, such
as: adverse actions related to present or past business
practices common in businesses in which LNC and its subsidiaries compete;
adverse decisions in significant actions including, but not limited to,
actions brought by federal and state authorities and extra-contractual and
class action damage cases; new decisions that result in changes in law;
and unexpected trial court rulings;
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·
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Changes
in interest rates causing a reduction of investment income, the margins of
LNC’s fixed annuity and life insurance businesses and demand for LNC’s
products;
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·
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A
decline in the equity markets causing a reduction in the sales of LNC’s
products, a reduction of asset-based fees that LNC charges on various
investment and insurance products, an acceleration of
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| amortization of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”) and deferred front-end sales loads (“DFEL”) and an increase in liabilities related to guaranteed benefit features of LNC’s variable annuity products; |
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·
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Ineffectiveness
of LNC’s various hedging strategies used to offset the impact of changes
in the value of liabilities due to changes in the level and volatility of
the equity markets and interest
rates;
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·
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A
deviation in actual experience regarding future persistency, mortality,
morbidity, interest rates or equity market returns from LNC’s assumptions
used in pricing its products, in establishing related insurance reserves
and in the amortization of intangibles that may result in an increase in
reserves and a decrease in net income, including as a result of
stranger-originated life insurance
business;
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·
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Changes
in GAAP that may result in unanticipated changes to LNC’s net income,
including the impact of Statements of Financial Accounting Standards
(“SFAS”) No. 157, “Fair Value Measurements” (“SFAS 157”) and SFAS No. 159,
“The Fair Value Option for Financial Assets and Financial
Liabilities”;
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·
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Lowering
of one or more of LNC’s debt ratings issued by nationally recognized
statistical rating organizations and the adverse impact such action may
have on LNC’s ability to raise capital and on its liquidity and financial
condition;
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·
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Lowering
of one or more of the insurer financial strength ratings of LNC’s
insurance subsidiaries and the adverse impact such action may have on the
premium writings, policy retention and profitability of its insurance
subsidiaries;
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·
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Significant
credit, accounting, fraud or corporate governance issues that may
adversely affect the value of certain investments in the portfolios of
LNC’s companies requiring that LNC realize losses on such
investments;
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·
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The
impact of acquisitions and divestitures, restructurings, product
withdrawals and other unusual items, including LNC’s ability to integrate
acquisitions and to obtain the anticipated results and synergies from
acquisitions, including LNC’s ability to successfully integrate
Jefferson-Pilot Corporation businesses acquired on April 3, 2006, to
achieve the expected synergies from the merger or to achieve such
synergies within our expected
timeframe;
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·
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The
adequacy and collectibility of reinsurance that LNC has
purchased;
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Acts
of terrorism, war or other man-made and natural catastrophes that may
adversely affect LNC’s businesses and the cost and availability of
reinsurance;
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Competitive
conditions, including pricing pressures, new product offerings and the
emergence of new competitors, that may affect the level of premiums and
fees that LNC can charge for its
products;
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·
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The
unknown impact on LNC’s business resulting from changes in the
demographics of LNC’s client base, as aging baby-boomers move from the
asset-accumulation stage to the asset-distribution stage of life;
and
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·
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Loss
of key management, portfolio managers in the Investment Management
segment, financial planners or
wholesalers.
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Exhibit No.
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Description
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99.1
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LINCOLN
NATIONAL CORPORATION
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By
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/s/Frederick J. Crawford
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Name:
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Frederick
J. Crawford
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Title:
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Executive
Vice President and
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Chief
Financial Officer
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Exhibit No.
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Description
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99.1
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