Insurance Company Financial Strength Ratings

The Lincoln National Life Insurance Company has been assigned a strong financial strength rating by a major credit rating agency, reflecting its excellent ability to meet ongoing insurance obligations, according to a company announcement released on April 18, 2026.

The rating, issued by A.M. Best, affirms Lincoln National Life’s A+ (Superior) rating with a stable outlook, placing it among the top-tier insurers in the United States for financial stability and claims-paying ability. The agency cited the company’s robust capitalization, consistent underwriting discipline, and diversified product portfolio across life, annuity, and group insurance lines as key drivers of the rating.

Lincoln National Life, a subsidiary of Lincoln National Corporation (LNC), reported total adjusted capital of $18.2 billion as of December 31, 2025, representing a 4.3% increase year-over-year. The company’s risk-based capital ratio stood at 420%, well above the 200% threshold considered strong by industry regulators and significantly exceeding the 300% benchmark for “excellent” ratings under A.M. Best’s framework.

The rating agency also highlighted the company’s prudent investment strategy, with over 70% of its general account assets allocated to investment-grade fixed-income securities, and its disciplined approach to derivatives use for hedging interest rate and equity market exposure. Lincoln National Life reported net income of $1.1 billion in 2025, driven by strong performance in its retirement services and life insurance segments, which together contributed over 65% of operating earnings.

“This rating reaffirms our commitment to financial strength and long-term policyholder security,” said Susan Ciccone, Chief Financial Officer of Lincoln National Life Insurance Company, in a statement accompanying the announcement. “Our focus on sustainable growth, risk management, and capital efficiency continues to position us to fulfill our obligations to policyholders, even in volatile economic environments.”

The A+ rating from A.M. Best is significant in the insurance industry, as it influences policyholder confidence, reinsurance terms, and the company’s ability to compete in markets requiring high financial strength credentials, such as bank-owned life insurance (BOLI) and corporate-owned life insurance (COLI) placements. Independent insurance advisors and institutional buyers often use A.M. Best ratings as a primary screening tool when evaluating insurers for large-scale risk transfer.

Lincoln National Life’s rating remains unchanged from the previous assessment in 2024, despite macroeconomic headwinds including fluctuating interest rates, inflationary pressures on claims costs, and heightened regulatory scrutiny of insurers’ liquidity practices following recent market stress events. The company’s ability to maintain its rating through this period underscores the resilience of its balance sheet and risk management framework.

Industry analysts note that Lincoln National Life’s performance contrasts with several peers who have faced rating pressures due to aggressive growth strategies, elevated exposure to alternative investments, or insufficient reserve strengthening in long-tail liability lines. The company’s conservative approach to asset allocation and its focus on traditional insurance products have been cited as differentiating factors in maintaining top-tier ratings.

Looking ahead, Lincoln National Life expects to continue prioritizing capital preservation and disciplined underwriting in 2026, with planned initiatives to enhance digital distribution channels and expand its voluntary benefits offerings in the group market. The company has not announced any major acquisitions, divestitures, or changes to its capital return policy, maintaining its current dividend payout ratio of approximately 35% of adjusted net income.

The A.M. Best rating affirmation is based on a comprehensive review of Lincoln National Life’s financial statements, regulatory filings, and confidential meetings with senior management conducted during the first quarter of 2026. The rating reflects the agency’s expectation that the company will maintain its strong financial profile through the next 12 to 18 months under a range of plausible economic scenarios.