SOURCE: Wall Street Equity Research

Wall Street Equity Research

August 25, 2010 08:51 ET

Professional Research on Prudential Financial and Lincoln National -- Life Insurance Stocks Under Scrutiny

JOHANNESBURG, SOUTH AFRICA--(Marketwire - August 25, 2010) - allows shareholders to gain full understanding of the economic and market forces influencing the life insurance industry, and offers free research on industry players Prudential Financial Inc. (NYSE: PRU) and Lincoln National Corp. (NYSE: LNC). Register today at to receive free research reports on these companies.

The Financial- Life Insurance sector is under scrutiny of late due to its questionable use of retained asset accounts. These accounts, which place death beneficiary pay-outs into an interest earning account instead of a lump sum payout, are currently being investigated by New York Attorney General Andrew Cuomo. Insurers claim that these accounts give their consumers time to determine how to use their pay-out and that the money is readily available should the beneficiary choose to withdraw. However, many regulators believe that the procedure hurts consumers who could get a higher return by placing the money into a different account. They also argue that the retained asset accounts are not FDIC insured and inadequately insured by state guarantee funds. If Cuomo decides to put an end to the questionable RAA's the sector could suffer a huge loss in investment capital. is a specialized website where investors can have complete access to free reports on life insurance industry; traders looking for analyst opinions on Prudential Financial Inc., Lincoln National Corp. and other players in the industry are welcomed to sign up for a free one year membership at

This all comes at a time when many companies in the life insurance industry are already facing adversity. With recent downturns in US equity markets, many companies within the sector are seeing declines in profitability. Some companies have seen their individual annuity sales negatively affected by changes to their product offerings, namely reductions in living benefits.

Life Insurance firm Prudential Financial Inc. reported strong earnings this quarter with revenue growing 38.7% to $8.7 billion, whereas Lincoln National Corp. recorded a 40% surge in operating profit on the back of higher life insurance sales. Shareholders and investors can sign up today at or to download the full reports on Prudential Financial Inc. and Lincoln National Corp.

One major hope for the sector lies in the emerging markets of China and India. With only 7% of Chinese health-care costs covered by private health care businesses last year, many foreign insurers are seeking out ways to tap into the approximately CNY 650 billion that Chinese consumers paid out-of-pocket for health care. In India, legislation proposed on July 27th, is being considered to raise the cap on foreign ownership of insurance companies from 26%. This could prove to be a boon for this sector's players poised to enter the Indian market and offset some of the projected short to mid-term strain put on the Indian insurance sector by price regulation of their popular unit-linked insurance products. Visit us at to understand the catalysts and forces driving or affecting life insurance stocks.

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