Lincoln National Corp.'s proposed $7.5 billion acquisition of Jefferson-Pilot Corp. is a combination driven by a tough environment for growing earnings -- low interest rates and higher capital requirements -- and the trend doesn't bode well for the life insurance sector, according to an equity analyst.
"We believe these companies combined out of weakness as growth has been stalled and the macro environment continues to weigh down their fundamentals," said John Nadel, a life insurance analyst with Fox-Pitt, Kelton.
ANALYSTS SAY LINCOLN/JEFFERSON-PILOT MERGER POINTS TO HARD TIMES FOR LIFE INSURERS
Source: Insurance News Net
ANALYSTS SAY LINCOLN/JEFFERSON-PILOT MERGER POINTS TO HARD TIMES FOR LIFE INSURERS
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