Lincoln Financial has completed a $6.3bn reinsurance transaction with Talcott Financial Group.
Under the terms of the agreement, Talcott will reinsure an approximately $5.8bn run-off block of universal life with secondary guarantee policies, along with approximately $500m of funding agreement liabilities. Lincoln Financial will continue to administer and service the reinsured policies.
“We are excited to leverage our comprehensive suite of risk solutions offerings to expand our partnership with Lincoln Financial,” said Imran Siddiqui, Chief Executive Officer of Talcott.
“This transaction reflects our expanding scale, commitment to executing our growth strategy, and bolsters our role as a trusted partner for clients across the insurance industry.”
This is the second reinsurance agreement between Talcott and Lincoln Financial, following a variable annuity flow reinsurance transaction announced in 2021. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.
RBC Capital Markets and TD Securities served as financial advisors, and Conyers Dill & Pearman and Debevoise & Plimpton served as legal counsel for this transaction.
