Lincoln Financial Group Announces Flow Reinsurance Transaction With Talcott Resolution
September 23 2021 - 08:00AM
Business Wire
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.
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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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