Menu

Reinsurance News

Lincoln Financial in flow reinsurance deal with Talcott Resolution

27th September 2021 - Author: Matt Sheehan

Lincoln Financial Group has entered into an agreement with Talcott Resolution Life Insurance Company to reinsure up to $1.5 billion in sales of Lincoln’s variable annuity living benefit rider.

LincolnThe transaction covers business issued from April 1, 2021, through June 30, 2022, and will see Lincoln Financial retain account administration and recordkeeping of the annuity policies.

Under the terms of the deal, Lincoln Financial will cede $1.5 billion of living benefit riders but retain 100% of the base contract cash flows.

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

“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.

RMS

“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.”

Ellen Cooper, Executive Vice President, Chief Investment Officer, Head of Enterprise Risk and Annuity Solutions of Lincoln Financial Group, also commented: “We are excited to enter into this relationship with Talcott and will continue to explore opportunities to build on this partnership.”

“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.”

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
UNDP launches new Insurance and Risk Finance Facility

The United Nations Development Programme (UNDP) has announced an initiative aimed at strengthening the protection of vulnerable communities from socio-economic,...

Close