Lincoln National Stock And 2 Insurers Tied to Higher US Interest Rates

With Fed Chair Kevin Warsh warning that policymakers still “have work to do” and markets quickly pricing in a higher chance of another rate hike, the gap between winners and losers from tighter money is back in focus. This article looks at three U.S. life insurers and annuity providers that are closely tied to this rate story, and explains how the same news can create opportunity or risk for your portfolio.

The stocks covered below are a small sample of this rate sensitive corner of the market, and the full screen surfaced 16 more U.S. life insurers and annuity providers with equally compelling stories that are not discussed here. To identify and analyze the companies that best fit your own approach, head straight to the U.S. Life Insurers & Annuity Providers Benefiting from Higher Interest Rates screener.

Lincoln National (LNC)

Overview: Lincoln National is a U.S. insurer focused on life insurance, annuities and workplace benefits, helping individuals and employers manage income protection and retirement planning. Its large fixed income investment portfolio means changes in interest rates can be especially important for the returns it earns on the premiums it invests.

Operations: Lincoln National generates the bulk of its roughly US$19.4b in annual revenue from Group Protection (US$6.2b), Life Insurance (US$6.0b) and Annuities (US$5.7b), with all reported revenue coming from the United States.

Market Cap: US$8.3b

Lincoln National provides exposure to interest rate dynamics through a business that is tightly linked to life insurance and annuities, where investment spreads on its fixed income portfolio are a key driver of results. Analysts highlight value support from a low P/E and high reported return on equity, while recent reinsurance deals and preferred share buybacks are described as efforts to free up capital and focus on higher margin products. At the same time, there are forecasts for declining earnings over the next few years, and the dividend is not covered by free cash flow, which may limit how much capital Lincoln can return. This mix of rate sensitivity, capital actions and earnings uncertainty may make the stock one for investors to examine in more detail.

Lincoln National’s low P/E and high reported return on equity could be masking a very different earnings path ahead. Before you decide how that trade off fits your portfolio, review the 3 key rewards and 3 important warning signs (1 is major!)

CNO Financial Group (CNO)

Overview: CNO Financial Group focuses on selling health insurance, individual life insurance and annuities to middle income pre retirees and retirees in the United States, so it sits squarely in the part of the market where higher interest rates can matter for what it earns on invested reserves. Its products, sold under the Bankers Life, Washington National and Colonial Penn brands, are designed to cover healthcare gaps and provide retirement income, which can create relatively steady demand even when markets are volatile.

Operations: CNO Financial Group generates all of its roughly US$4.6b in revenue in the United States, led by Health insurance at about US$2.0b, Life at about US$1.1b and Annuities at about US$683 million, with the rest from various unallocated investment and fee income items.

Market Cap: US$5.1b

CNO Financial Group provides a focused way to tap the higher rate theme, since it invests annuity and life reserves in bonds where wider spreads can support earnings. Recent results highlight that opportunity, with operating EPS up sharply, guidance raised and 16 straight quarters of sales growth in key lines such as annuities and Medicare supplement. At the same time, the company is carrying a premium P/E to many insurers, has seen revenue pressure forecast ahead and relies fully on external funding, with debt not well covered by operating cash flow. As a result, higher rates can cut both ways if credit conditions tighten. Combined with a recent one off loss and earnings volatility, CNO appears to be a business where the headline rate story is only part of what investors need to understand.

CNO’s accelerating operating EPS and long sales streak may be telling only half the story. Get the full context on growth, valuation and credit sensitivity in the 2 key rewards and 2 important warning signs (1 is major!)

Brookfield Wealth Solutions (BNT)

Overview: Brookfield Wealth Solutions is a retirement and insurance group that focuses on annuities and life insurance, using long term contracts with individuals and institutions to support a large investment portfolio that can be sensitive to changes in interest rates. Alongside these core retirement services, it also runs a property and casualty business that offers specialist commercial cover such as casualty, liability and workers compensation policies.

Operations: Brookfield Wealth Solutions generates most of its roughly US$13.0b in segment revenue from Annuities at about US$9.4b and P&C at about US$2.6b, with smaller contributions from Corporate & Other and segment adjustments.

Market Cap: US$14.8b

Brookfield Wealth Solutions brings together long duration annuity and life contracts with a sizeable investment portfolio, so higher reinvestment yields under a hawkish Fed quickly become important for investor analysis. However, the situation is not straightforward, with net profit margin at 1.1% and a swing to a year to date loss in 2026 even as revenue has grown and earnings over five years have risen strongly. The stock also trades on a very high P/E, which leaves less room for disappointment if funding costs climb or margins remain under pressure. Investors who want interest rate exposure with added complexity may find that Brookfield warrants closer attention before drawing firm conclusions.

Brookfield Wealth Solutions’ high P/E and slim margins hint at a story that investors may be reading only halfway. See how the full analysis report for Brookfield Wealth Solutions could reframe the risk reward trade off before the next chapter becomes clearer.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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