Transaction will reinsure up to $1.5 billion in sales

Lincoln Financial Group (NYSE: LNC) today announced it has entered into an agreement with Talcott Resolution Life Insurance Company to reinsure up to $1.5 billion in sales of Lincoln’s flagship variable annuity living benefit rider. The transaction covers business issued from April 1, 2021, through June 30, 2022.

“Recent industry transactions reflect an active reinsurance market with attractive pricing, and we are extremely pleased to announce this flow reinsurance agreement on the heels of the life block transaction that we announced last week,” said Dennis R. Glass, president and CEO of Lincoln Financial Group. “This transaction is another example of how we employ creative solutions, such as block and flow deals across our businesses, to maximize value for our shareholders.”

“We are excited to enter into this relationship with Talcott and will continue to explore opportunities to build on this partnership,” said Ellen Cooper, executive vice president, Chief Investment Officer, Head of Enterprise Risk and Annuity Solutions of Lincoln Financial Group. “This transaction is in line with our strategy to continue to grow the variable annuity business while maintaining a good mix of sales with and without long-term guarantees. The terms of the reinsurance transaction match our rigorous new business pricing while enhancing the return on the business retained.”

Under the terms of the reinsurance agreement, Lincoln Financial will retain account administration and recordkeeping of the annuity policies. Lincoln Financial will cede $1.5 billion of living benefit riders but retain 100% of the base contract cash flows. The transaction will have no impact on Lincoln Financial’s relationship with, or commitments to, its distribution partners and policyholders. Additionally, Lincoln Financial remains focused on the continued growth of its variable annuity business, with plans to introduce new products and further expand distribution to achieve successful long-term growth.

The transaction is dated September 17, 2021 and is structured as a coinsurance treaty with a comfort trust to mitigate counterparty credit risk.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $324 billion in end-of-period account values as of June 30, 2021. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, we earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index, and rank among Forbes’ Best Large Employers and Best Employers for Women, and Newsweek’s Most Responsible Companies. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.

Al Copersino (203) 257-4493 Investor Relations InvestorRelations@LFG.com

Sarah Boxler (215) 495-8439 Media Relations Sarah.Boxler@LFG.com

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