Life Insurers Shares Slip, Analyst Expects Good 3Q

DES MOINES, Iowa (AP) — Shares of insurance companies fell Tuesday an average of about 2 percent as the broader markets were mixed in afternoon trading.

Lincoln National Corp. was down about $1.20, or 4.4 percent, while others fell around 2 percent.

Credit Suisse Analyst Thomas Gallagher raised the price target on Lincoln National to $31 from $25 and increased his earnings estimates. He said the company is discounted because it has received federal money from the government's TARP program, but it otherwise has taken adequate action to shore up its capital. He maintained an "Outperform" rating.

Gallagher released a mostly positive report on the insurance sector saying he expects third-quarter earnings to be strong for most life insurers.

He upgraded StanCorp Financial Group Inc. to "Outperform" from "Neutral" and set a new target price of $49 from $38, saying the company is the cheapest in the sector versus 2010 net income and it has demonstrated the quality of its investment portfolio and solid operating earnings.

Shares declined 1 cent to $39.87.