UPDATE 1-Lincoln National sees lower income, no capital raise

(Updates with share price, CEO comment)

NEW YORK, Oct 10 (Reuters) - Lincoln National Corp (LNC.N), one of the largest U.S. life insurers, cut its dividend on Friday and said it had no plans to raise capital, even as it estimated lower preliminary earnings for the third-quarter.

The news eased investor concerns about the company's financial strength and Lincoln's shares were up 11 percent in morning trading the New York Stock Exchange. The stock had lost one-half of its value this week.

The insurer estimated its excess capital position to be $500 million at the end of the third-quarter and said it had access to over $4 billion in liquidity to satisfy its obligations.

Investors have worried that Lincoln, along with other insurance companies, would follow the steps of Hartford Financial Services Group (HIG.N) and MetLife Inc (MET.N), which earlier this week raised $4.5 billion of fresh capital.

The company also cut its quarterly dividend in half to 21 cents per share, saving $50 million each quarter.

"We believe our third quarter excess capital position and the action we are taking to reduce the dividend serve to defend our strong capital base and improve our overall financial flexibility," said Dennis Glass, president and chief executive, in a statement.

Philadelphia-based Lincoln forecast third-quarter earnings in the range of $120 million to $180 million, or 50 cents to 70 cents per diluted share, down from $329.6 million, or $1.21 a share, reported in the year-earlier quarter.

The company also forecast operating income, which analysts use to measure performance, between $280 million and $320 million, or $1.10 or $1.25 per diluted share, down from $352.9 million, or $1.29 a share, reported a year earlier.

The insurer estimated net realized losses on investments and derivatives of between $140 million and $160 million, while gross realized investment losses and impairments were about $400 million.

Lincoln shares were up $1.99 at $20.30 on Friday on the New York Stock Exchange.

In the last 12 months, Lincoln National shares have fallen 71 percent. (Reporting by Juan Lagorio, editing by Brad Dorfman)