Resolution Life US Holdings has announced the signing of a $9.4 billion reinsurance transaction between its insurance subsidiary, Security Life of Denver Insurance Company (SLD) and The Lincoln National Life Insurance Company, a subsidiary of Lincoln National Corporation.
The deal consists primarily of bank and corporate owned life insurance business alongside a smaller component of universal life business.
Under the agreement, Lincoln will cede $9.4 billion in reserves and retain administration of the policies.
The transaction with SLD is effective as of October 1, 2021 and is not subject to any closing conditions or regulatory approval requirements.
“Executing this transaction with Lincoln shows the strength of Resolution Life’s reinsurance offering in the US,” said Matthew Grove, Resolution Life US and SLD Chief Executive Officer.
“We are pleased to announce this transaction, which we expect to be highly accretive to EPS, expand ROE and maintain our overall high-quality business mix,” said Dennis R. Glass, president and CEO of Lincoln Financial Group.
“We will continue to pursue opportunities to build additional shareholder value above our core strategy that is the basis for our long-term 8-10% growth expectations.”
“It is a great example of our holistic approach to managing diversified insurance risks at scale, and it will contribute meaningfully to the momentum of our US business after the completion of our acquisition of Security Life of Denver earlier this year.”
Warren Balakrishnan, Resolution Life US and SLD Head of Corporate Development & Strategy, added, “Resolution Life is focused on creating long-term partnerships with our clients to meet their strategic and financial objectives, while always prioritizing security and stability for policyholders.
“Our bespoke solution- led model enabled us to work collaboratively with Lincoln, deliver enhanced value, and meet Lincoln’s counterparty risk management objectives. We look forward to working closely with Lincoln.”