Lincoln National Life Insurance Financial Strength Confirmed at Aa3 By Moody Investors Service

Business Wire, Oct 13, 2000

Business Editors

PHILADELPHIA--(BUSINESS WIRE)--Oct. 13, 2000

Lincoln National Corporation (NYSE:LNC), the parent company of the Lincoln Financial Group of companies, today announced that Moody Investors Service has confirmed the financial strength rating of Lincoln National Life Insurance Company.

"We are very pleased that Moody's has concluded its review of our ratings, some of which had been under review for possible downgrade. The claims paying rating of Lincoln Life is the most important rating we have since it pertains to the majority of our customers. Having that rating affirmed under stable outlook is extremely important and very reassuring. This decision recognizes the significant progress that Lincoln has made in the year 2000. We have worked very hard to deliver strong earnings and significant growth in our life insurance and annuities operations," said Jon Boscia, president and chief executive officer of Lincoln Financial Group. "Although we are naturally disappointed by the downgrade of LNC's debt rating from A2 to A3 , we understand Moody's concerns. Fortunately, this negative relates primarily to the UK block of business which is now closed," Boscia noted.

Moody's noted that Lincoln's management is more focused on expense reduction, improved sales growth and profitability. In addition, Moody's acknowledged that risk management initiatives and controls implemented within the life and health reinsurance operation, as well as exiting from some of the more volatile businesses should help to improve the risk profile of this sector.

Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. With headquarters in Philadelphia, Lincoln Financial Group has consolidated assets of over $103 billion and annual consolidated revenues of $6.8 billion. Through its wealth accumulation and protection businesses, the company provides annuities, life insurance, 401(k) plans, life-health reinsurance, mutual funds, institutional investment management and financial planning and advisory services.