RADNOR, PA — Lincoln Financial (NYSE: LNC) has completed a $6.3 billion reinsurance transaction with Talcott Financial Group, transferring risk associated with a substantial portion of its guaranteed universal life insurance business as the company moves to reduce capital exposure and strengthen its balance sheet.
The transaction, completed earlier in October, includes approximately $5.8 billion in statutory reserves tied to existing guaranteed universal life policies, which will be reinsured by a Talcott subsidiary.
The transferred reserves represent approximately 37% of Lincoln’s remaining in-force guaranteed universal life portfolio, reducing its exposure to a legacy insurance business that requires significant capital support.
Combined with a separate reinsurance agreement completed with Fortitude Re in 2023, approximately 60% of Lincoln’s total guaranteed universal life block is now reinsured.
The transactions allow Lincoln to transfer insurance risk associated with existing policies while reducing the amount of capital tied to long-duration life insurance obligations.
Guaranteed universal life insurance provides coverage with specified guarantees, creating long-term financial obligations for insurers. Reinsurance allows companies to transfer some of those risks to other insurers while retaining certain policy administration responsibilities.
Lincoln will continue administering the policies covered by the Talcott transaction, maintaining its operational role even as the associated insurance risk is reinsured.
The agreement advances Lincoln’s efforts to reduce exposure to legacy insurance liabilities and reposition its balance sheet around its remaining businesses.
Headquartered in Radnor, Lincoln Financial operates across four principal segments: annuities, life insurance, group protection and retirement plan services.
The company reported approximately $366 billion in account balances, net of reinsurance, as of June 30, 2026, and served approximately 17 million customers as of December 31, 2025.
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