Lincoln National to create fourth-largest life insurer with Jefferson-Pilot buy.Life insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. and annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. provider Lincoln Lincoln, city and district, England Lincoln, city (1991 pop. 79,980) and district, Lincolnshire, E England, in the Parts of Kesteven, on the Witham River. National Corp. said it plans to acquire Jefferson-Pilot Corp. in a purchase valued at $7.5 billion to form the fourth-largest life insurer in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The merged company will operate under the brand name Lincoln Financial Group. Financing of the transaction would be structured through the issuance of $5.7 billion of Lincoln common stock and $1.8 billion in cash. Supported by a distribution network that would rank among the industry's largest, the combined entity would have significant scale and reach in life insurance, annuities and investment products, with combined revenue of about $9.5 billion and assets of $155 billion, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Lincoln's chairman and chief executive officer, Jon JON Jonah JON Jesus of Nazareth JON Job Order Number JON Johnston Island, US, Outlying Islands (Airport Code) Boscia. "This is truly a convergence of strategic intent," Boscia told investors during an Oct. 10 conference call held to announce the agreement. "From Lincoln's perspective, our primary strategic goals have been to enhance our scale and product mix, increase operating efficiency and improve earnings stability. We also have been thinking of ways to build our exposure to the retirement-income segment, which is becoming increasingly attractive as baby boomers See generation X. mature both from an individual and employer-sponsored market perspective." Lincoln, Jefferson-Pilot Earnings Breakdown Income from operations, July 1, 2004 to June 30, 2005 Lincoln Investment Management 4% Life 35% Retirement 55% Lincoln U.K. 6% Total: $778 Million Jefferson Pilot Retirement 14% Communications 10% Benefit Partners 18% Life 58% Combined Communications 4% Benefit Partners 7% Retirement 38% Life 45% Lincoln U.K. 4% Investment Management 2% Note: Table made from pie chart. Source: Lincoln Financial, Jefferson Pilot Financial |
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