The Retirement Income Reporter recently reported on annuity provider Lincoln National receiving $300 million in regulatory tax relief from the state of Indiana. The Indiana Department of Insurance is allowing the life insurance company to use a certain accounting practice with deferred tax assets that will free up capital. The division that sells fixed annuities and variable annuities, Lincoln Financial Distributors, has had to lay off over 10% of its workforce over the past few months.
Lincoln’s Chief Financial Officer stresses that no material money was injected into the annuity or life insurance reserves. Their risk-based-capital is over the 250% needed for life insurers to avoid regulatory attention.