Analyst Study on Lincoln National Corp. and Prudential Financial Inc. - Life Insurance Sector in a Tough Spot

{"s" : "lnc,pru","k" : "a00,a50,b00,b60,c10,g00,h00,l10,p20,t10,v00","o" : "","j" : ""} Press Release Source: Wall Street Equity Research On Wednesday December 29, 2010, 7:57 am

JOHANNESBURG, SOUTH AFRICA--(Marketwire - 12/29/10) - www.wallstreetequityresearch.com brings investors market knowledge on the aspects moving the life insurance stocks, and offers complete analytical research on companies like Lincoln National Corp. (NYSE:LNC - News) and Prudential Financial Inc. (NYSE:PRU - News). Register with www.wallstreetequityresearch.com today to gain full access to our complimentary research on these life insurance stocks.

Both new regulatory concerns as well as low interest rates are poised to take their toll on the Life insurance industry which includes players like Lincoln National Corp. and Prudential Financial Inc. The Dodd-Frank Reform and Consumer Protection Act could prove to be a major regulatory factor as many companies within the sector such as Prudential Financial will fall beneath its blanket. The sector's biggest concern, however, is the environment of low interest rates. Investors can access free research on Prudential Financial Inc. and Lincoln National Corp. now by signing up at http://wallstreetequityresearch.com/December292010PrudentialFinancialInc.(PRU)291210.php or http://wallstreetequityresearch.com/December292010LincolnNationalCorp.(LNC)291210.php.

www.wallstreetequityresearch.com is a specialized website where investors can have specific access to complimentary reports on life insurance industry; traders looking for analysis on Lincoln National Corp., Prudential Financial Inc. and other players in the industry are welcomed to sign up for free at http://www.wallstreetequityresearch.com/.

Putting strains on profitability, low rates could force many companies to streamline their operations by trimming workforce, guarantees, and product offerings. In response to the low rates, the industry has been motivated to increase its holdings in corporate bonds, pushing the total corporate debt over $2 trillion. Also, companies are beginning to cancel their long-term care insurance programs because the aging population of baby boomers combined with longer life spans due to increased care options could potentially be an enormous drag on assets during the coming decades. Visit us at http://www.wallstreetequityresearch.com/ to understand the catalysts and forces driving or affecting companies in the life insurance industry.

High levels of uncertainty have caused Life Insurers to look everywhere for profits. While the industry is mired in uncertainty, acquisitions will likely be inhibited. However, some companies are working to expand their operations in Asian markets, especially Korea and Japan. China has proven to be a difficult market for the sector despite its 15% yearly growth. All foreign companies are essentially required to have local partners meaning this market with extremely low insurance penetration is actually struggling to show profits.

About Wall Street Equity Research:
Wall Street Equity Research looks to bring simplicity and highly sophisticated research to an ever-changing investing environment. Wall Street Equity Research has been partnering with a number of North American and Emerging Economies analysts to bring you the best of both continents in terms of market analysis and analytical opinions.

View the original article here

A.M. Best Affirms Ratings of Safety National Group and Its Members

{"s" : "dfg","k" : "a00,a50,b00,b60,c10,g00,h00,l10,p20,t10,v00","o" : "","j" : ""} Press Release Source: A.M. Best Co. On Monday December 13, 2010, 3:30 pm EST

OLDWICK, N.J.--(BUSINESS WIRE)-- A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and issuer credit ratings of “a” of Safety National Group, whose members include Safety National Casualty Corporation (SNCC) (St. Louis, MO) and its reinsured affiliate, Safety First Insurance Company (SFIC) (Chicago, IL). The outlook for all ratings is stable.

The affirmations reflect the group’s strong operating performance, solid capitalization achieved in part through explicit capital support from its parent, Delphi Financial Group, Inc. (Delphi Financial) [NYSE: DFG], and its established market presence within the excess workers’ compensation market.

Partially offsetting these positive rating factors are areas of ongoing, yet declining, adverse loss release development occurring on prior accident years and the impact of investment market fluctuations, which has hampered the group’s ability to internally generate capital. Despite these concerns, the outlook recognizes the group’s historically solid profitability levels, which outperform its peer composite, and A.M. Best’s expectation that SNCC should generate surplus growth through strong earnings over the near term.

The positive rating attributes reflect SNCC’s disciplined underwriting standards, service-oriented business approach and experienced management team. Furthermore, Delphi Financial is fully committed to supporting SNCC’s operations, while maintaining a moderate level of financial leverage with solid interest coverage ratios and historically excellent earnings produced by its insurance subsidiaries. The ratings also acknowledge the inherent synergies between Delphi Financial’s insurance entities, which include the sharing of management expertise, client bases, products, distribution and expenses.

The principal methodology used in determining these ratings is Best’s Credit Rating Methodology -- Global Life and Non-Life Insurance Edition, which provides a comprehensive explanation of A.M. Best’s rating process and highlights the different rating criteria employed. Additional key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “Understanding BCAR for Property/Casualty Insurers”; “Rating Members of Insurance Groups”; “A.M. Best’s Ratings & the Treatment of Debt”; “Natural Catastrophe Stress Test Methodology”; and “The Treatment of Terrorism Risk in the Rating Evaluation.” Methodologies can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2010 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

View the original article here

[$$] Powerful Breakout for Lincoln National

View the original article here