Moody’s turns Lincoln view to negative

Moody’s Investors Service said it revised its outlook for Lincoln National Corp. to negative from stable and affirmed its Baa1 senior unsecured rating.

The negative outlook reflects the pressure on Lincoln's capital following the (after-tax) $2.1 billion charge from its annual review of actuarial reserve assumptions, Moody’s said.

“The charge is primarily related to policyholder lapse assumptions for secondary guarantee universal life (SGUL) reflecting emerging experience and additional external industry data. Lincoln estimates the statutory capital impact from the assumption change to be $550 million representing a 22 percentage-point decline in the risk-based capital ratio,” the agency said in a press release.

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