The Radnor company's shares closed at $7.31, down $4.85, on the New York Stock Exchange. Two months ago, the stock traded at more than $50.

Since then, Lincoln, which employs 1,200 in the Philadelphia region, and competitors Hartford Financial Services Group Inc. and MetLife Inc. have scrambled to strengthen their financial positions by raising money from investors or by cutting expenditures.

Lincoln and three other life insurers applied last week to convert into bank holding companies to become eligible to sell preferred shares to the U.S. Department of the Treasury under the Emergency Economic Stabilization Act.

It is not known yet if that money will come through.

At a meeting with investors, bankers and analysts yesterday, Dennis Glass, Lincoln's chief executive officer, expressed confidence in the future of the company and the industry.

"The fundamental business model of the insurance industry remains completely intact. The products that we sold before the crisis were important to consumers then," Glass said, "and they will be important products after the financial crisis."

In the meantime, Lincoln faces an uphill battle. The company said it expected a fourth-quarter accounting charge of $200 million to $300 million tied to October's stock market losses.

Lincoln's key products are retirement contracts called variable annuities, which are designed to provide tax-deferred savings and monthly income for as long as the customer lives.

Some of Lincoln's customers pay a premium for a guaranteed payment from their annuity. If investments remained down for a long time, it could be costly for Lincoln to keep up with those payments.

Fortunately, Lincoln does not have to make the bulk of those payments for many years, giving its investments a chance to rebound.

The shorter-term concern for Lincoln and other life insurers is the effect of investment losses on capital.

"We are concerned that the losses these firms are taking on the investment portfolios backing their insurance liabilities may wipe out the relatively small portion of equity supporting their assets," Morningstar Inc. analyst Alan Rambaldini wrote Tuesday.

The worst-case scenario would be for state insurance regulators to decide they had to step in because of those losses to ensure that life insurers made good on policies.

Lincoln said it had a strong capital position and no plans to sell additional common stock to boost that position.