Lincoln Financial Hit With Investor Lawsuits in State Court
January 9, 2025 by Allison Bell
Two investors have sued Lincoln Financial in a state court in Pennsylvania over the company’s announcement in November 2022 that it would have to add $2.2 billion to life insurance reserves.
The Radnor, Pennsylvania-based company also announced a $634 million reduction in life insurance unit goodwill. The resulting $2.6 billion net loss for the third quarter of 2022 caused the price of the company’s stock to fall 33%, to $34.83, the day after the announcement.
Wink’s Moore on the Market: You cannot make this stuff up.
“In November 2022, Lincoln said that its assumptions about some of its variable universal life policies were out of date because the POLICYHOLDERS WERE KEEPING THEI POLICES LONGER THAN EXPECTED.”
This is life insurance, folks. While I realize that lapse assumptions are taken into consideration when pricing these products, the intent of the policyholder is usually that the insurance company will pay a death claim.
Anyhow, here’s the 411 on a lawsuit that some stockholders are bringing against Lincoln.
Thanks for the intel, Allison Bell at ThinkAdvisor. -sjm
