A.M. Best Affirms Lincoln National Life Following Announcement of Planned Acquisition.OLDWICK, N.J.--(BUSINESS WIRE)--July 28, 1997--Effective immediately, A.M. Best Co. has affirmed the "A+" (Superior) rating of Lincoln National Life Insurance Co., Fort Wayne Fort Wayne, city (1990 pop. 173,072), seat of Allen co., NE Ind., where the St. Joseph and St. Marys rivers join to form the Maumee River; inc. 1840. It is the second largest city in the state, a major railroad and shipping point, a wholesale and distribution hub, , Ind. This action follows today's announcement by Lincoln National Corp. that it will acquire the individual life and annuity business of CIGNA CIGNA CG (Connecticut General Life Insurance Company) INA (Insurance Company of North America) Corp. for about $1.4 billion in cash. A.M. Best expects the funding for the transaction to be provided by proceeds generated by Lincoln National Corp.'s sale of its property/casualty operations. Both transactions are subject to regulatory approvals. Under terms of the transaction, which will be accomplished through an indemnity reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. agreement, Lincoln National will acquire approximately $37 billion of individual life insurance in force, as well as CIGNA Financial Advisors--a career agency system of about 600 representatives. A.M. Best views the transaction favorably, as it provides Lincoln National Life with needed scale within its life insurance operations, the opportunity to considerably improve unit costs in this segment, as well as the expanded product portfolio, clientele base and distribution capacity of the combined entity. A.M. Best believes that through this transaction Lincoln National Corp. has greatly enhanced its focus on and its ability to service the estate and financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against markets. Additionally, A.M. Best has affirmed the "A+" (Superior) ratings of Lincoln Life & Annuity Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Syracuse, and First-Penn Pacific Life Insurance Co., Fort Wayne, Ind. and the "A" (Excellent) ratings of Lincoln National Assurance Co. and Lincoln National Health & Casualty Insurance Co., all of Fort Wayne, Ind. The ratings of CIGNA's life insurance subsidiaries, Connecticut General Life Insurance Co., Life Insurance Company of North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , and INA Ina (ē`nä), city (1990 pop. 60,062), Nagano prefecture, central Honshu, Japan, on the Tenryu River. It is an agricultural and industrial center with a famous agricultural school. Life Insurance Company of New York--all rated "A+" (Superior)--are unaffected by this transaction. A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source. CONTACT: Jeffrey Dunsavage (908) 439-2200, ext. 5618 dunsavj@ambest.com |
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