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Transaction marks continued progress on efforts to de-risk and strengthen the company's balance sheet
RADNOR, Pa.--(BUSINESS WIRE)--
Lincoln Financial (NYSE: LNC) announced that it has closed its previously announced reinsurance transaction with Talcott Financial Group (“Talcott”), with an effective date of October 1, 2026.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.Lincoln will continue to administer the reinsured policies.
About Lincoln Financial
Lincoln Financial helps people confidently plan for their vision of a successful financial future. As of December 31, 2025, approximately 17 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection, and retirement plan services. As of June 30, 2026, the company had $366 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, PA., Lincoln Financial is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.
Reinsurance is when insurance companies buy insurance for themselves to protect against very big losses. It’s like a car owner getting extra coverage from another company so that if there's a serious accident, the financial hit isn’t all on one company. This helps insurance companies stay stable and able to pay out when disasters happen.
statutory reservesfinancial
Amounts that insurance companies and some financial firms are legally required to set aside to cover future policyholder claims or other obligations; regulators dictate how these reserves are calculated and reported. Think of it as a mandated emergency fund or safety cushion whose size and adequacy affect a company’s reported capital, solvency ratings, and the reliability of its ability to pay claims—information investors use to assess financial strength and risk.
guaranteed universal lifefinancial
Guaranteed universal life is a type of permanent life insurance that promises a set death benefit as long as the policyholder pays fixed premiums, with little or no expectation of cash-value growth. Think of it like locking in a long-term safety net: it provides predictable coverage without the investment upsides of other policies. Investors watch these products because they create steady premium income and long-term payout obligations for insurers, affecting reserve needs and profitability.
