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 (VA) hedging program and implementation of an enhanced reversion to the mean approach to deferred acquisition cost amortization. LNC is a publicly traded insurance holding company. Its main operating company is Lincoln National Life Insurance Co. (LNL), a
