UPDATE 2-Lincoln National posts qtrly profit - News

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UPDATE 2-Lincoln National posts qtrly profit

By: AFX | 28 Oct 2009 | 06:09 PM ET

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NEW YORK, Oct 28 (Reuters) - Lincoln National Corp, a large U.S. life insurer, on Wednesday recorded a quarterly profit after posting losses in the past three quarters, helped by a gain from the divestiture of a unit. Third-quarter net income rose to $153 million, or 44 cents a share, compared with $148.4 million, or 58 cents a share, in the year-ago quarter when there were fewer shares outstanding. The gain from the company's sale of a UK unit helped offset realized investment losses and a loss related to its business in variable annuities, a popular retirement product. On an operating basis, Lincoln's quarterly profit was $275.5 million, or 84 cents a share, in the quarter compared with $297.8 million, or $1.16 a share a year ago. Analysts on average expected the insurer to earn about 76 cents a share, according to Thomson Reuters I/B/E/S. Philadelphia-based Lincoln had been hurt in recent quarters by investment losses and a surge in costs for stock market-linked annuities. But the fortunes of Lincoln and the sector have started to improve in recent months as investment values and stock markets began to rise. Lincoln, along with Hartford Financial, received a cash injection from the U.S. Treasury earlier this year, helping to shore up capital drained away by recent losses. In the latest quarter, Lincoln recorded a $55 million after-tax gain on the sale of Lincoln National (UK) plc, offsetting realized investment losses of $42 million. The insurer also had a loss of $151 million from its variable annuity hedging program, which it said was in line with expectations. Lincoln's shares fell about 5.5 percent to $22.25 in the regular session, and climbed about 6.5 percent in trading after the bell to $23.70. (Reporting by Elinor Comlay and Lilla Zuill, editing by Matthew Lewis) Keywords: LINCOLNNATIONAL/ (elinor.comlay@thomsonreuters.com; + 1 646 223 6116) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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