Fitch Ratings Affirms Lincoln National Corp.'s IDR at 'A+'; Outlook Stable.

CHICAGO -- Fitch has affirmed the ratings of Lincoln National Corporation (NYSE: LNC) and its insurance operating subsidiaries, with the exception of the insurer financial strength (IFS) rating of Jefferson Pilot Financial Insurance Company (JPFIC), which is being withdrawn due to the intra-company merger of JPFIC into Lincoln National Life Insurance Company. The Rating Outlook is Stable.

LNC's ratings are supported by the company's longstanding strong competitive position in the life insurance and annuity market, robust and diverse distribution network, excellent financial flexibility, experienced management team and solid operating performance. These positives are tempered somewhat by challenges LNC faces with respect to strong competition in the life insurance and asset accumulation sectors, particularly in the affluent market segment that LNC has targeted, the degree to which the company's earnings continue to be leveraged to the equity markets, and ongoing integration activities related to the company's acquisition of Jefferson Pilot, which closed in April 2006. In addition, the rating considers the heightened level of regulatory pressures on participants in the insurance industry.

LNC, headquartered in Philadelphia, markets a broad range of insurance and asset accumulation products and financial advisory services primarily to the affluent market segment. On Sept. 30, 2007, the company reported consolidated assets of $192.2 billion, common equity of $12.0 billion, and $518 billion of individual life insurance in-force. For the first nine months of 2007, LNC reported consolidated net income of $1.1 billion.

Fitch affirms the following ratings with a Stable Outlook:

Lincoln National Corporation

--Issuer Default Rating (IDR) at 'A+';

--Short-term IDR at 'F1';

--6.500% senior notes due Mar. 15, 2008 at 'A';

--Floating rate senior notes due April 6, 2009 at 'A';

--Floating rate senior notes due April 20, 2010 at 'A';

--6.200% senior notes due Dec. 15, 2011 at 'A';

--5.650% senior notes due Aug. 27, 2012 at 'A';

--4.750% senior notes due Jan. 27, 2014, at 'A';

--4.750% senior notes due Feb. 15, 2014 at 'A';

--7.000% senior notes due Mar. 15, 2018 at 'A';

--6.150% senior notes due April 7, 2036 at 'A';

--6.300% senior notes due Oct. 9, 2037 at 'A';

--6.750% junior subordinated debentures due April 20, 2066 at 'A-';

--7.000% junior subordinated debentures due May 17, 2066 at 'A-';

--6.05% junior subordinated debentures due April 20, 2067 at 'A-';

--Monthly extendible notes (EXLS) due Feb. 17, 2011, at 'A';

--EXLS at 'F1';

--Commercial paper at 'F1'.

Jefferson-Pilot Life Funding Trust I

--Floating-rate notes due June 2, 2008, at 'AA'.

Lincoln National Capital VI

--Trust preferred securities at 'A-'.

In addition, Fitch affirms the following subsidiaries' IFS ratings at 'AA' with a Stable Outlook:

--Lincoln National Life Insurance Company;

--Lincoln Life & Annuity Company of New York;

--First Penn-Pacific Life Insurance Company.

Fitch withdraws the following IFS rating, as explained above:

Jefferson Pilot Financial Insurance Company

--IFS at 'AA'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.