Lincoln National Corporation Below Estimates, J.P. Morgan Reports

Lincoln National Corporation LNC reported 3Q10 operating EPS of $0.63, “below our $0.88 estimate and consensus of $0.87,” J.P. Morgan reports. Results were held back by several unusual items, adjusting for which we estimate earnings would have been $0.83, still below expectations. “Management also alluded to $10 million of unfavorable individual life mortality ($0.03 per share),” J.P. Morgan writes. “However, we are not adjusting for this as individual life claims have been higher than expected in two of the past three quarters and pricing adequacy in LNC's UL block remains one of our long-term concerns.” J.P. Morgan has reaffirmed its Neutral rating.