Lincoln National Corporation
From Wikipedia, the free encyclopedia
Lincoln National Corporation (NYSE: LNC) is a holding company, which operates multiple insurance and investment management businesses through subsidiary companies. LNC was organized under the laws of the state of Indiana in 1968, and maintains its principal executive offices in Philadelphia, Pennsylvania. Lincoln Financial Group is the marketing name for LNC and its subsidiary companies.[1]
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[edit] Operations
LNC divides operations into five business segments: 1) Lincoln Retirement, 2) Life Insurance, 3) Investment Management, 4) Lincoln UK, and 5) Lincoln Financial Media. The principal Lincoln subsidiaries are
- Lincoln Financial Advisors and Sagemark Consulting
- Lincoln Financial Distributors
- Lincoln National Life Insurance Company
- Lincoln Life & Annuity Company of New York
- Lincoln UK|Lincoln National (UK) PLC (Lincoln UK)
- Delaware Investments|Delaware Management Holdings Inc. (Delaware Investments)
- First Penn-Pacific Life Insurance Company
- Lincoln Financial Media
In addition, LNC is the naming rights sponsor of Lincoln Financial Field in Philadelphia, home field of the Philadelphia Eagles of the National Football League.
At December 31, 2004, LNC had consolidated assets of $116.2 billion and consolidated shareholders’ equity of $6.2 billion.
[edit] History
Lincoln traces its origin to June 12, 1905, in Fort Wayne, Indiana, as the Lincoln National Life Insurance Company. Perry Randall, a Fort Wayne attorney and entrepreneur, suggested the name "Lincoln," arguing that the name of Abraham Lincoln would powerfully convey a spirit of integrity. In August, 1905 Robert Todd Lincoln provided a photograph of his father for company stationery and advertising.
In 1928, LNC president Arthur Hall hired Dr. Louis A. Warren, a Lincoln scholar, and in 1929, LNC acquired one of the largest collections of books about Abraham Lincoln in the United States. The Lincoln Museum in Fort Wayne was the second largest Lincoln museum in the country. The Abraham Lincoln Presidential Library and Museum in Springfield, Illinois is now the world's largest museum dedicated to the life and times of Abraham Lincoln. The Fort Wayne Lincoln Museum is scheduled for permanent closure June 30, 2008.
Ian Rolland started with Lincoln in 1956, and became president of Lincoln National Life in 1977. When he retired in 1998, new president Jon A. Boscia moved LNC to Philadelphia and started using the Lincoln Financial Group name for marketing. Lincoln National Life, the largest subsidiary, and the Lincoln Museum remained in Fort Wayne.
Many of the jewels of Lincoln National Corporation have been shed in recent years. Lincoln Reinsurance was the first US reinsurance company; it was sold to Swiss Re in 2001. K&K Insurance Specialties was the first to insure events like NASCAR races; it was sold to AON in 1993. Safeco bought American States, a property/casualty insurance business because Lincoln was primarily in life/health. However, LNC even sold a block of disability income business to MetLife in 1999, as it narrowed its focus.
Following the acquisition of Jefferson-Pilot Corporation in March 2006, Lincoln Financial acquired group life, disability, and dental insurance divisions. Jefferson-Pilot Corporation was a Fortune 500 company based in Greensboro, North Carolina founded in 1968 from the merger of Jefferson Standard Insurance (founded 1907) and Pilot Life Insurance (founded 1903). The two companies' association actually dated to 1945, when Jefferson Standard bought majority control of Pilot Life.
Lincoln Financial also acquired Jefferson-Pilot's television and radio operations, which were renamed Lincoln Financial Media. The group owns 18 radio stations in Charlotte, Miami, San Diego, Denver, and Atlanta. It also owns WBTV, the CBS affiliate in Charlotte; WCSC-TV, the CBS affiliate in Charleston, South Carolina and WWBT, the NBC affiliate in Richmond, Virginia. In June 2007, the company publicly announced it would explore a sale of this division, and hired Merrill Lynch to assess its strategic options. It was announced on November 12 that Raycom Media will purchase the three TV stations [2].
Lincoln Financial Sports produces television coverage of football and basketball games for the Atlantic Coast Conference and Southeastern Conference. That division was also sold to Raycom Media, who merged it into Raycom Sports at the beginning of 2008.
Though billed as a merger of equals, the merged company carries the LNC name, operates from the LNC offices, with current LNC stockholders holding 61% of the stock, and current LNC directors controlling the new board.
Lincoln Financial Group is the grand sponsor of the National Forensic League and its National Speech and Debate Tournament.
[edit] Insurance patent
Lincoln National is the owner of U.S. Patent 7,089,201, “Method and apparatus for providing retirement income benefits”. This patent covers methods for administering variable annuities. Lincoln's commercial products that are covered by this patent include their i4LIFE Advantage and 4LaterSM Advantage annuities.[1]
In September of 2006, Lincoln filed a patent infringement lawsuit against Transamerica Life Insurance Company for allegedly infringing the patent. [2] The lawsuit is pending.
[edit] Not Lincoln Financial Corporation
Lincoln Financial Group should not be confused with Lincoln Financial Corporation, a one-bank holding company that owned Lincoln National Bank and Trust in Fort Wayne and built Lincoln Tower, a magnificent Art Deco structure that was Indiana's only skyscraper until 1969. Lincoln Financial Corporation was acquired by Norwest (now Wells Fargo) in 1993. While there were many loose ties between Lincoln Financial Corporation and Lincoln National Corporation, they remained separate businesses.
[edit] References
- ^ Lincoln National Corp 2006 10k SEC filing
- ^ David G. Luettgen, “Foley Sponsors Conference on Business Method Patents for the Financial Services Industry”, Sept. 12, 2006
[edit] External links
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