Very strong business position. Strong, albeit volatile, earnings. Strong fixed coverage at 12.8x, with appropriate levels of financial leverage for the rating. Very strong level of capitalization at operating companies. Exposure to volatile equity markets. Overall expense levels. The counterparty credit rating on Lincoln National Corp. (NYSE:LNC) is based on the company's strong diversified cash flows from its well-positioned businesses, strong and improving operating performance, and very strong capitalization at both the operating companies and the holding company. Offsetting these strengths are the challenges to increase revenue and earnings in the highly competitive high-net-worth individual life and annuity market and earnings volatility from variable product equity market exposure. Earnings volatility is somewhat mitigated through the implementation of a variable annuity
