LINCOLN NATIONAL LIFE INSURANCE CO /IN/ FILES (8-K) Disclosing Non-Reliance on Previous Financials, Audits or Interim Review
Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review.
As previously disclosed,
"Company") entered into a reinsurance agreement with
Insurance Company
"Resolution Life") that was effective as of
liabilities under a block of in-force executive benefit and universal life
insurance policies. The transaction was structured as coinsurance for the
general account reserves and modified coinsurance for the separate account
reserves. For the coinsurance portion of the transaction, the Company
transferred both the insurance reserves and a portfolio of assets to
Life
As a result of the transaction, the Company recorded a deferred gain on the
invested assets transferred pursuant to the transaction, recognizable over the
projected life of the reinsured policies. The Company has determined that the
realized gain should have been recognized at the time of the transfer of the
assets and will correct the accounting treatment for the
transaction to reflect a one-time gain related to the transfer of assets rather
than a deferred gain. The accounting for the Company's other reinsurance
transactions is not affected by the correction of the accounting for the
reported capital generated from the transaction.
As a result, on
discussion with our senior leadership and independent registered public
accounting firm,
consolidated financial statements as of and for the annual periods ended
Statements") included in the associated Form 10-K filings and Form 10-Q filings
with the
upon solely as a result of the above-described accounting treatment with respect
to timing for the recognition of investment gains related to the reinsurance
transaction with
The restatement of the Prior Financial Statements will not impact the Company's
distributable earnings, free cash flow, statutory filings or year-end risk-based
capital ratio.
The Company intends to promptly file restated financial statements for the
fiscal years ended
financial information on Form 10-K/A. The restated financial information
presented in the Form 10-K/A will also include the correction of other
immaterial items.
The Board of Directors has discussed the matters described in this Form 8-K with
its independent registered accounting firm, EY.
Forward-Looking Statements - Cautionary Language
Certain statements made in this filing are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A
forward-looking statement is a statement that is not a historical fact and,
without limitation, includes any statement that may predict, forecast, indicate
or imply future results, performance or achievements. Forward-looking statements
may contain words like: "anticipate," "believe," "estimate," "expect,"
"project," "shall," "will" and other words or phrases with similar meaning in
connection with a discussion of future operating or financial performance. In
particular, these include statements relating to future actions, performance or
financial results, including without limitation, statements regarding the
Company's expectations regarding the impact of the restatement on the Company's
Prior Financial Statements; the scope of the restatement; and the belief that
the restatement will not affect the Company's previously reported capital
generated from the transaction, distributable earnings, free cash flow,
statutory filings or year-end risk-based capital ratio. The Company claims the
protection afforded by the safe harbor for forward-looking statements provided
by the PSLRA.
--------------------------------------------------------------------------------
Forward-looking statements are subject to risks and uncertainties. Actual
results could differ materially from those expressed in or implied by such
forward-looking statements due to a variety of factors, including: risks related
to the timely and correct completion and filing of the restated financial
statements and the risk that additional information may become known prior to
the expected filing with the
herein or that other subsequent events may occur that would require the Company
to make additional adjustments to its financial statements or delay the filing
of the restated financial statements.
Our most recent Annual Report on Form 10-K, as well as other reports that we
file with the
actions, businesses and financial performance and results. Moreover, we operate
in a rapidly changing and competitive environment. New risk factors emerge from
time to time, and it is not possible for management to predict all such risk
factors or to assess the effect of all risk factors on our businesses or the
extent to which any factor, or combination of factors, may cause actual results
to differ materially from those contained in any forward-looking statements.
Given these risks and uncertainties, investors should not place undue reliance
on forward-looking statements as a prediction of actual results. In addition,
the Company disclaims any obligation to update any forward-looking statements to
reflect events or circumstances that occur after the date of this report.
--------------------------------------------------------------------------------
LINCOLN NATIONAL CORP FILES (8-K) Disclosing Results of Operations and Financial Condition, Non-Reliance on Previous Financials, Audits or Interim Review, Regulation FD Disclosure
MIDWEST HOLDING INC. – 10-K – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News