Lincoln National Corporation 10-K (2022-02-17)

For the fiscal year ended December 31, 2021

 

 

 

OVERVIEW

 

Lincoln National Corporation (“LNC,” which also may be referred to as “Lincoln,” “we,” “our” or “us”) is a holding company, which operates multiple insurance and retirement businesses through subsidiary companies.

 

subsidiary : connected with something but less important than it / (of a business company) owned or controlled by another company

 

 

 

Through our business segments, we sell a wide range of wealth protection, accumulation, retirement income and group protection products and solutions. LNC was organized under the laws of the state of Indiana in 1968.

 

accumulation : the process of gradually increasing or getting more and more of something over a period of time / an amount of something that has gradually increased over a period of time

 

 

 

We currently maintain our principal executive offices in Radnor, Pennsylvania. “Lincoln Financial Group” is the marketing name for LNC and its subsidiary companies. As of December 31, 2021, LNC had consolidated assets of $387.3 billion and consolidated stockholders’ equity of $20.3 billion.

 

consolidate : consolidate (something) to make a position of power or success stronger so that it is more likely to continue

 

 

 

We provide products and services and report results through four segments as follows

 

 

 

Business Segments

 

Annuities

Retirement Plan Services

Life Insurance

Group Protection

 

 

 

We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments.

 

 

 

The results of Lincoln Financial Network (“LFN”) and Lincoln Financial Distributors (“LFD”), our retail and wholesale distributors, respectively, are included in the segments for which they distribute products. LFD distributes our individual products and services, retirement plans and corporate-owned universal life insurance and variable universal life insurance (“COLI”) and bank-owned universal life insurance and variable universal life insurance (“BOLI”) products and services.

 

universal : done by or involving all the people in the world or in a particular group / true or right at all times and in all places

 

 

 

The distribution occurs primarily through consultants, brokers, planners, agents, financial advisers, third-party administrators (“TPAs”) and other intermediaries. Group Protection distributes its products and services primarily through employee benefit brokers, TPAs and other employee benefit firms.

 

occur : to happen / to exist or be found somewhere

 

intermediary : intermediary (between A and B) a person or an organization that helps other people or organizations to make an agreement by being a means of communication between them

 

 

 

As of December 31, 2021, LFD had approximately 530 internal and external wholesalers (including sales and relationship managers). As of December 31, 2021, LFN offered LNC and non-proprietary products and advisory services through a national network of approximately 11,600 active producers who placed business with us within the last 24 months.

 

proprietary : (of goods) made and sold by a particular company and protected by a registered trademark / relating to an owner or to the fact of owning something

 

 

 

Financial information in the tables that follow is presented in accordance with United States of America generally accepted accounting principles (“GAAP”), unless otherwise indicated. We provide revenues, income (loss) from operations and assets attributable to each of our business segments and Other Operations in Note 21.

 

attributable : attributable to somebody/something probably caused by the thing mentioned

 

 

 

Acquisitions and Dispositions

 

On May 1, 2018, we completed the acquisition from Liberty Mutual Insurance Company of 100% of the capital stock of Liberty Life Assurance Company of Boston (“Liberty Life”), an operator of a group benefits business (the “Liberty Group Business”) and an individual life and individual and group annuity business (the “Liberty Life Business”).

 

annuity : a fixed amount of money paid to somebody each year, usually for the rest of their life / a type of insurance that pays a fixed amount of money to somebody each year

 

 

 

In connection with the acquisition, Liberty Life sold the Liberty Life Business on May 1, 2018, by entering into reinsurance agreements and related ancillary documents with Protective Life Insurance Company and its wholly-owned subsidiary, Protective Life and Annuity Insurance Company (together with Protective Life Insurance Company, “Protective”), providing for the reinsurance and administration of the Liberty Life Business.

 

ancillary : ancillary (to something) providing necessary support to the main work or activities of an organization / in addition to something else but not as important

 

 

 

Liberty Life’s excess capital of $1.8 billion was paid to Liberty Mutual Insurance Company through an extraordinary dividend at the acquisition date. We paid $1.5 billion of cash to Liberty Mutual Insurance Company to acquire the Liberty Group Business.

 

 

 

Effective September 1, 2019, Liberty Life’s name was changed to Lincoln Life Assurance Company of Boston (“LLACB”). Effective October 1, 2021, LLACB was merged into The Lincoln National Life Insurance Company (“LNL”).

 

 

 

(the rest omitted)