Lincoln Installs New Leadership at Life Unit
June 22, 2017 by Warren S. Hersch
Lincoln Financial Group has turned to a company veteran to lead its life insurance unit.
Randal J. Freitag, the company’s CFO since 2011, assumes the helm of Lincoln’s life insurance business, providing strategic oversight at the senior management committee level. Mike Burns, head of the life unit, will continue to manage its day-to-day operations, including new business, financial management, underwriting and product development. He will report to Freitag, who will also continue as CFO.
Click HERE to view the original story at Life Annuity Specialist.
“A key driver of the decision to appoint Randy to this role is strengthening our leadership and talent,” says a company spokesperson. “Lincoln’s primary market differentiator is our employees. Broadening and strengthening our leaders through new and additional responsibilities is essential to the long-term success of our company.”
Industry observers will be keeping close watch on Freitag’s performance — not least in respect to his ability to reverse the company’s dip in insurance sales. In 2016, insurance premiums totaled nearly $2.58 billion, an 8% decline from the $2.83 billion recorded in 2015, according to a 2016 financial statement from the company. Last year’s intake surpassed, however, 2014’s premiums of nearly $2.37 billion.
Lincoln is betting in part on an expanding product portfolio and new content to boost life insurance sales. In May, Lincoln began offer more favorable underwriting policy ratings for individuals who, diagnosed with hepatitis C, have been successfully treated for the condition, resulting in cheaper coverage.
In some cases, Lincoln will also expand life insurance coverage eligibility to untreated individuals, a release from the company states. The outgrowth of a partnership with Munich Re, the new offering encompasses both term and permanent policies with face amounts up to $20 million, depending on age and rating class, according to the company.
In April, the company also unveiled an educational video series for consumers and their advisors that is designed to “encourage a constructive initial conversation between an advisor and their client” about the value of life insurance. To get the word out about the videos, Lincoln is leveraging multiple social media channels. Subsequent videos in the series will “go more in depth” about the products, according to James Christie, assistant VP of Competitive Services at Lincoln Financial.
Freitag’s appointment follows other recent executive changes at the Radnor, Pa.-based carrier. Last month, Lincoln tapped Tim Seifert, a 30-year annuity and retirement industry veteran, to head annuity sales. Seifert steps into the position at a pivotal time for sales of variable annuity products, for which the carrier anticipates growing consumer demand.
In 2016, Lincoln Financial reported $13.3 billion in revenue, down from nearly $13.6 billion in 2015. Net income (diluted) totaled $5 million last year, up from $4.5 million in 2015.
Under the leadership of CEO Dennis Glass, Lincoln currently ranks among the top half (in 207th position, down from 205th last year) in the 2017 Fortune 500 list.
