The Company is a holding company, which operates multiple insurance and investment management businesses as well as broadcasting and sports programming business through subsidiary companies.
BATS data provided in real-time. NYSE, NASDAQ and AMEX data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates and Analyst Ratings provided by Zacks.
SEC Filings and Insider Transactions provided by Edgar Online.
Powered and implemented by Interactive Data Managed Solutions. Terms & Conditions
RSS Headlines
Fool UK
Recs
At $17 LNC is way overvalued and not something I want to hold. Unrealized losses are really piling up on LNC's fixed book, standing at $5 billion on available for sale fixed securities as of 9/30/08, up from $3 billion on 6/30, and just over $1 billion at the beginning of the year. Expect that to continue increasing in the coming quarters.
Profits from variable annuities are heavily dependent on equity levels which have been reduced dramatically. Guarantees are now substantially in the money, and breakdowns in LNC's hedges have been exposed. If equity markets do not recover, LNC could lose a lot of money on this business. Its last earnings report came before the markets really tanked.
The company currently estimates its RBC ratio to be 400%, which is considered very strong, but if these unrealized losses become realized, that will be eroded very quickly, endangering LNC's ratings, and ability to write new business.
If LNC is able to get through this relatively unscathed, money could be made here, but at this price it is simply too risky. If you buy this, expect 4th quarter results to be horrific and the dividend to be eliminated in the next year. This company should have raised capital when it was trading at $60. It may now be too late. I believe there is a substantial possibility of shareholders being wiped out.
You are a fool. LNC has cash per share of $18 and book value per share of $37. Furthermore, the vast majority of revenues come fron non Variable Annuity businesses.
Well I hope that calling me a fool is only a reference to the site, and not an insult. First of all, "cash" in the insurance business is not at all the same as cash in other industries. Virtually all of that "cash" is required capital necessary to support the business and maintain ratings and is not available for distribution to shareholders. Secondly, as I pointed out, their non-variable business is also being badly damaged by increasing losses in their fixed portfolio. It's not the new business that they're bringing in here that's the concern, but the business already on their books. Finally, book value doesn't have a whole lot to do with market value of a business, especially now. AIG has a book value, despite worthless equity.