Lincoln Financial has closed its previously announced $6.3 billion reinsurance transaction with Talcott Financial Group, effective October 1, 2026.
Lincoln explained that the $6.3 billion total transaction includes the reinsurance by a Talcott subsidiary of approximately $5.8 billion of in-force guaranteed universal life (GUL) statutory reserves, representing approximately 37% of Lincoln’s remaining in-force GUL block.
Combined with Lincoln’s 2023 reinsurance transaction with Fortitude Re, approximately 60% of Lincoln’s total GUL block is now reinsured, which further reduces Lincoln’s exposure to a legacy, capital-intensive block of business.
According to Lincoln, it will continue to administer the reinsured policies.
When the news was first announced, Ellen Cooper, chairman, president, and CEO of Lincoln, said the transaction would build on this year’s progress by further reshaping its liability mix and enhancing free cash flow.
Cooper continued, “Further reducing our exposure to a legacy, capital-intensive block marks another deliberate step in our multi-year strategy to fortify Lincoln’s balance sheet, strengthen our financial flexibility and create long-term value for our shareholders.”
