Lincoln National is in advanced talks to offload roughly $5 billion in life reserves to Talcott Resolution, freeing capital for annuity growth.
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Lincoln National (LNC) is in advanced talks to offload roughly $5 billion in life insurance reserves to Talcott Resolution, a deal that would free up capital and support the company's push into fixed-indexed annuities, according to a report.
The transaction would transfer a block of Lincoln's legacy life policies to Talcott, a Hartford-based runoff specialist. Reinsuring the reserves would reduce the capital Lincoln must hold against those policies, giving the company more room to write new annuity business.
Lincoln has been working to shrink its exposure to older life insurance blocks that tie up capital with lower returns. The company's shift toward fixed-indexed annuities, which generate more predictable fee income, has been a central part of its strategy since the 2023 interest-rate shock that forced it to cut costs and sell assets.
Talcott Resolution, a unit of Sixth Street, has built a business around acquiring blocks of life and annuity reserves from carriers looking to shed capital-intensive legacy books. A deal of this size would be among the larger life reinsurance transactions in recent years.
Lincoln declined to comment. Talcott did not immediately respond to a request for comment{
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