(Adds comment from Transamerica, starting in fourth
paragraph.)
DOW JONES NEWSWIRES
A federal district court judge in Iowa has affirmed a $13.1
million patent-infringement award to Lincoln National Corp. (LNC)
regarding a computerized method of administering variable
annuities.
A jury in February decided in favor of Lincoln National in its
lawsuit against fellow insurer Transamerica, owned by Aegon NV
(AEG).
Variable annuities have been a key worry for life insurers as
they guarantee minimum returns. But the stock-market rout, which
ended in March for now, raised concerns about annuity sellers'
ability to cover promised payments.
A Transamerica spokeswoman said the company is in the process of
appealing the verdict.
"Transamerica's position is unchanged since the verdict in
February, and we continue to believe that the patent is invalid,"
the spokeswoman said. "Even if the patent is found to be valid,
Transamerica is confident that its computer system does not
infringe the patent."
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com