We no longer consider First Penn to be strategically important to Lincoln National Corp. primarily because it has ceased writing new business as of 2011. As a result, we affirmed our ratings on Lincoln National Corp. and its core subsidiaries and lowered our ratings on First Penn. We believe that Lincoln National Corp. and its core U.S. insurance operating companies have established a very strong competitive position within its target markets and have demonstrated strength in enterprise risk management. On Nov. 11, 2011, Standard&Poor's Rating Services affirmed our 'A-/A-2' counterparty credit rating on Lincoln National Corp. and our 'AA-' long-term counterparty credit and financial strength ratings on its core subsidiaries, Lincoln National Life Insurance Co. and Lincoln Life
